Most people thinking about Chapter 11 bankruptcy logically focus upon business reorganization.
In fact, that is what Chapter 11 is centrally about, which arguably makes it at once the most singular and complex of all bankruptcy types.
That word “complex” is a purposeful insertion. In fact, we note on our website at the long established New York City commercial law firm of Rich Michaelson Magaliff that Chapter 11 is “far more complex” than other bankruptcy variants.
The reasons for that – as well as for the comparatively lengthy time it takes for a Chapter 11 filing to fully play out – are several.
For starters, a huge amount of money and assets are often at stake. So too are the interests of creditors – with those entities often being multiple, as well as both secured and unsecured. Close and continuing court involvement is an ongoing factor, as are the details surrounding a proposed reorganization.
And there is this, too: A reorganization plan can be suggested by a debtor, by creditors, or by debtors and creditors working together. It can be adjusted, rejected or accepted in part or entirely. And it can involve a material downsizing of company operations, a partial selling of assets, conversion of debt to equity or outright liquidation.
Rich Michaelson Magaliff attorneys have collectively worked closely and for decades on behalf of both debtors and creditors in complex reorganization matters, promoting their interests across a broad spectrum of concerns.
We welcome contacts to the firm to discuss our proven advocacy on behalf of diverse and valued clients facing challenges and seeking to exploit new opportunities.