A business turnaround can be achieved to avoid a Chapter 11 bankruptcy if action is taken in time with a business reorganization. Lanigan and Lanigan, have been advising and consulting with Central Florida businesses in good times and bad times and can work with you to see if your business can be righted by reorganizing.
Winter Park business lawyers Roddy Lanigan and Eric Lanigan have helped financially strapped and internally challenged businesses successfully work through complex financial schematics and forego Chapter 11 bankruptcy.
When a company struggling with debt, limited cash flow, no asset protection, strained vendor relations and unfocused leadership decides to reorganize every aspect of the business goes under an economic P&L microscope.
Avoid Chapter 11 With Business Reorganization
Corporate reorganizations involve reducing or changing company operation, determining which portions of the company to consider selling to investors, how to finance debt and how financial gains are shared.
The complexities involve current and forecasted financial strategy and all changes to a company whether big or small involve many choices, risks and outcomes. This plan should identify the most important areas of your business. What are the most basic departments you need to keep your company running? What key documents and other items do those departments need to operate short-term?
A list should specify the necessary equipment. It may include software and hardware for the technology department as well as business equipment and spare parts. And you must create a basic operating budget detailing all expenses. Find out the minimum financing you need to keep your business running.
Reorganization rescues businesses from financial distress. The actual benefits of corporate reorganization include:
- Enhancement of management efficiency
- Improvement of the sound structure of corporate governance
- Alleviation of information asymmetry by dividing a well-diversified business in the market, among others.
Consult Experienced Business Attorneys
- The depth, the significance, need, and legal nature of a reorganization
- Various ways of creating a company reorganization such as:
- simple division
- merger by split
- merger through a newly incorporated division
- The divided firm’s scope, asset, and debts
- Procedure for reoganizing a company
- The effects of a reorganization on staff and status of the reorganized company