Businesses suffer economic difficulties from a variety of causes. Loss of key customers, weather-related issues and increased competition are just some of the many reasons. Oftentimes, this leads to defaults in lease payments or other secured obligations, tax arrearages and difficulties with suppliers. Although income from operations continues, the demands upon that income makes the continuation of the business an onerous task.
Chapter 11 of the Bankrutpcy Code offers relief in such situations. Claims of creditors get held in abeyance to give the business an opportunity to develop a plan to satisfy them. Oftentimes, the terms for repayment can be significantly extended, or creditors can be forced to accept a much reduced amount, often pennies on the dollar.
The attorneys at Savo, Schalk, Gillespie, O’Grodnick & Fisher have more than thirty years of experience in representing companies in Chapter 11 and have successfully confirmed many such plans. We can the entire Chapter 11 process from the initial filing through the plan confirmation.
Please call us today at (908) 526-0707 or contact us online to discuss your legal needs.