Bankruptcy Alternatives

For most companies, a bankruptcy filing is viewed as a last resort. Whether a bankruptcy case should be filed or not is dependent upon the specific circumstances a company faces, and needless to say no two companies are alike. This is an extremely important decision as many times the survival of the company depends on it. When making such an important decision, it is advisable for the company, its Board of Directors and its officers to seek advice from both qualified legal counsel as well as from operational and financial restructuring specialists.

Non-bankruptcy options, such as an out-of-court workout, debt restructuring, a forbearance agreement, and receivership are available. It is extremely important, however, for companies to fully comprehend that once debts begin to mount its fiduciary duties and responsibilities begin to change. Typically management has a fiduciary responsibility to the shareholders and a responsibility to act in the best interest of the company. However, when a company is teetering on insolvency, the scope of these duties changes and expands. The Board of Directors, officers and senior management must focus not only on the best interests of the company but also must take in to account how their decisions and actions impact the best interests of the creditors.

MainStream has helped numerous companies work through major operational and financial restructurings. We work in a manner that best protects the company’s assets, Officers, Board of Directors and their creditors. Call us today and let us help you think through what is best for your specific situation.