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Operating a Distressed Business
90 Second Lesson: Is a Business Turnaround Still Possible?
When is a business turnaround no longer viable? Ask these questions to determine if you or your client’s business can be saved.
How Geography Shapes the Receivership Process: Washington State Ain’t Minnesota
The statutes that dictate how to start and manage a receivership may differ depending on the state. One thing is for sure: Washington state a’int Minnesota.
90-Second Lesson: You Default on a Commercial Loan, What Happens Next?
QUESTION: Scott T, emailed, asking, “I have a client who owns a few income-producing properties, and she thinks she may not be able to make her next mortgage payments to her lender. What should I tell her to expect?” ANSWER: Once a default on a commercial loan is looming or occurs, a proactive mortgage lender […]
How a Distressed Company Can Manage Cash and Stakeholders in a Liquidity Crisis
Considerations for Companies in a Cash Crisis A liquidity crisis is a severe financial situation in which a company does not have enough cash or cash-convertible assets, which can lead to defaults and bankruptcy. Managing cash is critical when working to preserve or maintain solvency in order to maximize opportunities for a successful turnaround or […]
The Importance of Liquidity in the Capital Structure of a Distressed Company
How Liquidity Becomes the Kryptonite of a Distressed Company’s Capital Structure A company’s “capital structure” is the array of its liabilities and equity. It is often described by the debt to equity ratio, which is the amount of total debt divided by total equity. Capital structure commonly consists of three main components: working capital (also […]
The Independent Director Role in Optimizing Corporate Workouts and Bankruptcy Outcomes
How Can Special Committees Influence Your Bankruptcy? The appointment of independent directors may benefit a financially distressed business throughout its restructuring process, including during a bankruptcy case. An outside voice can guide a company through the process while fending off claims of conflict of interest by the court. What is an Independent or Non-Executive Director? […]
Potential Pitfalls and Opportunities in Healthcare Restructuring
How Unique Issues in Healthcare Restructuring Set It Apart from Corporate Restructuring Over the past decade, arguably no industry experienced such dramatic regulatory change or consistent legislative uncertainty as healthcare. Today, continued efforts to repeal, defund, replace, or amend the Affordable Care Act—coupled with rising pharmaceutical costs, increased competition, massive capital investment expenses, etc.—virtually […]