We have stressed in select blog posts at the commercial New York law firm of Rich Michaelson Magaliff, LLP that careful deliberation is imperative prior to any decision being made concerning a Chapter 11 bankruptcy filing.
Here’s why. Commercial bankruptcy – especially as a potential strategy for large businesses – is verydifferent from other forms of debt relief. It is comparatively complex. In many cases, it competes with other strategies that might be equally – or even more – suitable.
When Chapter 11 works, though, it can eliminate stark financial challenges and turn around a company in materially positive fashion. We note on our website that our proven debt-relief attorneys are able in many instances “to create plans that will not only be confirmed by the bankruptcy court, but will effectively target business debt.”
Some companies that utilize the Chapter 11 process later emerge as seemingly solid winners for having invoked it.
We submit the offshore drilling company Seadrill as evidence of that. Described in a recent Reuters article as “once the world’s largest offshore driller by market capitalization,” Seadrill fell on hard times several years ago amidst plummeting oil prices that reduced drilling exploration. It eventually filed for Chapter 11, emerging from that process with court approval last autumn.
The company is now apparently elated with its Chapter 11 response to confront notably hard challenges. Its strategy enabled it to materially restructure billions of dollars in debt and, in tandem, make refinancing moves that injected new money into its operations.
Seadrill’s story is far from singular. Such a tale emerges with some regularity in the business world. Questions regarding commercial bankruptcy and other potential avenues of debt relief can be addressed to seasoned commercial law attorneys. As we note on our website, proven debt-relief lawyers can help “to lay the groundwork for a long-running and successful business.”