When a borrower finds their business or personal financial obligations spiraling out of control, filing for a Chapter 7, 11 or 13 bankruptcy may seem like the only choice. We have found that, even in the face of significant creditor pressure, sometimes a negotiated settlement can be a viable option. These workouts can allow borrowers to preserve business relationships with suppliers, distributors, customers, lenders and investors, as well as minimize reputational damage.
For assets, including real estate and equipment leases, as well as secured and unsecured business loans and investments, we have represented both lenders and borrowers in negotiating, drafting and enforcing debt workout agreements that allow parties to:
- Extend payment periods
- Delay payments
- Lower interest rates
- Reduce total balances
- Institute debt-for-equity swaps
Our attorneys regularly consult with clients’ financial and business advisors, as well as lawyers from other firm practices, such as the Tax, Real Estate, Business and Estate Planning groups, to ensure workout solutions meet our clients’ overarching business and personal objectives. Employing various strategies, from equity buyouts to callable and income bonds, our debt restructuring toolbox includes sophisticated strategies to create win-win arrangements between debtors and creditors.
Distressed Property Workouts
In addition, our attorneys bring significant experience working with banks and other financial institutions, as well as private lenders, to protect their interests in mortgage workout agreements and other forms of debt relief.
