We consulted with a business that was a manufacturing plant that had heavy equipment. The equipment was financed through secured lenders. The company had numerous unsecured trade creditors, as well. Due to the downturn of the economy, the company was unable to keep current in its payments, and a creditor obtained a judgment and was about to execute and take all of the assets of the company.
We filed a Chapter 11 bankruptcy on an emergency basis, and used the protections of the automatic stay to stop the execution of the company’s assets. We were able to re-amortize the secured loans, which enabled the company to retain all of its assets. We also restructured the payments to the unsecured creditors, allowing the company to repay those debts over 5 years.
The company was able to reorganize and continue operating with a new schedule of payments to its creditors.