Just like for-profit corporations, nonprofits are susceptible to financial woes including insolvency. During periods of economic downturn, nonprofits face reductions in donations due to reduced corporate and personal contributions. In addition to decreased donations, nonprofits have to operate on a reduced budget and down-sized staff during recessionary times. To sustain a nonprofit during such challenging economic periods may require a workout with creditors (either through a consensual out-of-court workout or through a Chapter 11 reorganization bankruptcy).
The attorneys of DelCotto Law Group have experience in restructuring nonprofits, both in out-of-court restructurings and Chapter 11 bankruptcy proceedings. Specifically, the attorneys of DelCotto Law Group can assist a nonprofit in analyzing and addressing key issues including, but not limited to:
- Wind down of nonprofit
- Fiduciary duties
- What nonprofit assets can be sold?
- What assets are included in property of the bankruptcy estate?
- Chapter 11 plan feasibility
- Does the Absolute Priority Rule apply?