Out of Court Solutions for Businesses
Bankruptcy and other insolvency proceedings are not always the best course of action. There are times that the strategic objectives of the business may be achieved through less-intrusive processes that involve out-of-court negotiations with the company’s creditors and other interested parties. While the other tools in the arsenal are available (bankruptcy or ABC), the best option for both the company and its creditors may be achieved through direct negotiations. This process may yield results that are preferable to the alternative of bankruptcy or ABC.
At LSAS Law, we owe our clients the duty of exploring all options at their disposal, explaining the pros-and-cons of each possible path, and allowing the client the opportunity to determine whether or not the suggested option is best for them, given their own unique circumstances. For certain businesses, the out-of-court solution may be the preferable option. The business may have sufficient assets to satisfy its obligations, but only if each creditor agrees to receive less than they are due, but more than if the bankruptcy or ABC process is chosen. LSAS Law strives to convey this message to the company’s creditors in an effort to resolve all issues out of court.