Business Distress and Restructuring
When liquidity declines and creditor relations become critical, every decision can impact the business's continuity and the responsibilities of its management. Legal intervention must begin with up-to-date information and be coordinated with the economic and financial assessment.
Intervene when alternatives are still open
Recurring delays, contract cancellations, requests for repayment, and difficulties in meeting commitments require a coordinated approach. The first step is to reconstruct the situation, deadlines, and initiatives already undertaken, separating the urgency of the individual request from the overall business problem.
Legal work complements that of accountants and financial advisors. Economic data and prospects for continuity are essential for evaluating a course of action; they cannot be replaced by simply drafting agreements with creditors.
Map obligations, guarantees and essential relationships
We examine financing, guarantees, strategic contracts, exposures, litigation, and asset constraints. We identify who can request what, which terms require attention, and which relationships are necessary to continue the business. The positions of companies, shareholders, directors, and guarantors must be distinguished.
A structured map allows you to assess the consequences of decisions: new commitments, assignments, payments, waivers, or the granting of guarantees can impact the possibility of recovery and liabilities. Before implementing them, it is necessary to consider the overall context.
Negotiations and tools for recovery
We support companies in their relationships with banks, suppliers, and other parties, assessing the content and legal viability of proposals. A deadline extension can provide additional time, but it must be linked to a realistic project and reliable information.
When relevant, we work with the company's consultants to review the prerequisites for the instruments provided by the Crisis Code, including negotiated settlement. The choice depends on specific conditions, objectives, and prospects; access, protective measures, and agreements require specific assessments.
Directors’ decisions and business continuity
In times of difficulty, the importance of information flows, documenting decisions, and coordination between corporate bodies and consultants increases. We assist with the legal aspects of decisions, discussions, and the documents required for the agreed-upon process.
It's important to distinguish between the protection of the company and the personal protection of directors or guarantors, and to identify any potential conflicts. The mandate clarifies who is being assisted and what activities are included, preventing different interests from being treated as a single position.
An example: several repayment demands at once
The bank requests a reduction in its exposure while two suppliers threaten to interrupt deliveries. Treating each request separately can lead to conflicting commitments. The first step is to reconstruct priorities, guarantees, deadlines, and operational needs to assess a coordinated proposal.
The example is illustrative. Recovery is not always possible and cannot be promised before examining the data and alternatives.
Preparing the documents and the discussion
Gather updated balance sheets and statements, payment schedules, lists of creditors and guarantees, financial contracts, deeds received, cash flow plans, and available business assumptions. The data is reviewed with the professionals responsible for economic and accounting analyses.
Frequently asked questions
Should I wait for legal action?
A timely discussion can broaden my options.
Does a negotiated settlement automatically cancel my debts?
No: it's a process that needs to be evaluated in terms of its prerequisites and possible solutions.
Can I sign a repayment plan immediately?
First, it's important to verify its sustainability, guarantees, waivers, and relationship to other debts.
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