Bill H., a business consultant in NYC, asks, how do I determine if a business I am being asked to help is just too far gone to save?
Bill, if you have to ask this question, you might be doing your client a service by finding someone else who knows the answer already. In any event, this may help you decide:
[Editors’ Note: This lesson was originally published in March 2014; it is part of our irregular series in which we answer readers’ questions. If you have a question, submit it to firstname.lastname@example.org and we will try to answer it.]
[Editor’s note: You may also be interested in Dealing With Distress For Fun & Profit – Installment #4 – The Lifecycle of a Distressed Company and A Primer on the Chief Restructuring Officer (CRO).]
[Editor’s Note: This 90 Second Lesson is based, in substantial part, in material reprinted from Commercial Bankruptcy Litigation 2d and Strategic Alternatives for and Against Distressed Businesses, with permission of Thomson Reuters. For more information about these publications, please visit www.legalsolutions.com.]
The editors and editorial board of DailyDAC include preeminent restructuring and insolvency professionals, journalists, and editors. They are devoted to providing reliable and plain English education and deal intelligence about assignments, corporate bankruptcy, receiverships, out-of-court workouts and similar topics.
90 Second Lesson: What is a “composition agreement?”
When Your Tenant Files for Bankruptcy
90 Second Lesson: I’ve been asked to sign an involuntary bankruptcy petition. Should I?
A Chapter 11 Debtor Need Not Be Broke
Considerations When Selling a Bankruptcy Claim
When Your IP Licensor Files for Bankruptcy
Our weekly newsletter, sent every Tuesday at 9am, includes: