Changing customer demand, process or equipment obsolescence, mounting legacy costs or environmental liabilities, protracted labor disputes, a shifting competitive dynamic, significant litigation – these and other challenges can lead to recurring losses which, if not addressed, will soon place a business or a public entity in extremis.
This stage of the insolvency process is where careful analysis and decisive action count for the most.
Working closely with our clients, South Bay Law Firm strives to achieve optimal client positioning at this early stage.
CASH SHORTAGE
Seemingly “manageable” operating losses frequently cascade into chronic shortages of cash – and inability to meet payroll, debt, or other basic operating obligations.
To survive, management must immediately and effectively communicate with employees, creditors, and other interested parties – the goal is an objective, realistic plan for quickly resolving the cash shortage.
South Bay Law Firm can provide immediate advice informed by the legal “back-drop” against which restructuring negotiations typically occur.
INSOLVENCY
Predictably, unresolved cash shortages lead to insolvency.
When new funding or refinancing are not achievable and total assets are worth less than total liabilities, the organization must restructure or arrange for a “going concern” sale. The alternative is liquidation.
At this juncture, the organization needs to make immediate decisions about its viability and its best insolvency “exit strategy.”It must do so with no margin for error.
In judicial and non-judicial insolvency proceedings, South Bay Law Firm’s experience permits clients to assess their best tactical options and preserve maximum value – or achieve maximum recovery.
