Debtors in possession
When a business client is facing financial crisis, DelCotto Law Group presents them with all the available options in a seemingly bleak situation. Bankruptcy reorganization is one option among others, and most of our debtor clients don’t arrive here stating that they wish to file Chapter 11—they need to explore what that means and how it might work in their own situation. The sooner our counsel is sought, the more options may still be available and the more time there will be to thoughtfully approach the situation. Showing up at our Firm should not be viewed as an effort of last resort, but an effort to engage in a thorough analysis of what is possible to achieve.
Chapter 11 bankruptcy allows time to repay debts and propose a repayment plan to creditors, or to conduct an orderly liquidation in an effort to maximize the value of the assets or going concern business. Chapter 11 reorganization is the most complex of all bankruptcy cases and generally the most expensive. It is often the case that we help our clients explore other alternatives while being ready to use Chapter 11 to the extent required. We are committed to our debtor clients to think through the desired exit strategies before starting down the Chapter 11 path, including how a plan may be formulated and confirmed.
Our philosophy is that the key to a successful Chapter 11 bankruptcy case for business debtors is doing as much forward- thinking and planning as is possible under the circumstances. The sooner a business in financial distress seeks advice, both financial and legal, the more options will be available as possible viable alternatives. We also often have clients who must file immediately, and our team knows how to react quickly to file and then work quickly to get our arms around the circumstances and players involved. For a business, a Chapter 11 filing may be an effort to remain in business while the bankruptcy court supervises the restructuring and rehabilitation of the company’s obligations. For individuals with high debt exceeding the ability to file a Chapter 13, Chapter 11 for individuals is a very viable option. We often work with other counsel when personal guaranties are involved.
DelCotto Law Group represents many different types of creditors, contract parties, and the equity interests in Chapter 11 proceedings. We assist creditors to regain collateral or property from the estate and assure that creditors’ claims are honored, and we work with equity holders to maximize their recoveries and understand their own rights and obligations. DLG’s representations have included the following types of creditors:
• Creditors (mostly non- traditional, non- bank lenders)
• Equipment lessors
• Mineral lessors
• Vehicle lessors
• Shareholders and LLC members
• Directors and Officers
• Chapter 11 Creditor Committees
Chapter 11 Asset Purchasers
DLG represents those interested in purchasing assets from bankruptcy estates. Our attorneys lead buyers of assets through all manners of 363 sale processes, from due diligence to court approval, working to structure transactions and court orders to minimize risk involving post-bankruptcy/post-purchase liabilities. We know that buyers are often rushed through a quick sale process, and we do all we can to assure that our buyers are as well-informed and well-protected as possible under the time constraints in place.
Chapter 11 Trustees and Examiners
Chapter 11 trustees or examiners may be appointed to evaluate the options and issues of reorganization or liquidation in Chapter 11, and most often, must act immediately after appointment to gather information and protect asset value, while at the same time showing consideration to all constituents in the process. Our trustee services include proactive representation in recovering assets of bankruptcy estates and pursuing litigation, from traditional avoidance actions to complex litigation to recover for wrongdoing by former parties in interest and insiders. Our wide range of experience working with all the constituencies within Chapter 11 allows us to assist trustees and examiners in satisfying their duties in the case and maximizing recoveries for the estate.
Individual Ch. 11 Bankruptcies - Powerful Tools & a Few Pitfalls
We think of chapter 11 as a tool
companies use to reorganize
their business, restructure their
debt and exit bankruptcy hoping for a
return to profitability, but chapter 11 is
also available to individuals.Read more →
What Secured Creditors Need to Know About Credit Bidding in Chapter 11 Bankruptcy
As part of a Chapter 11 reorganization or liquidation, a debtor can choose to sell its assets free and clear of liens pursuant to Section 363 of the Bankruptcy Code, commonly referred to as "363 Sales."Read more →