While a chapter 11 reorganization is often expensive, and sometimes unpredictable, its rules are designed to assist Debtors in preserving their businesses and/ or real estate. The bankruptcy process is essentially an abridgement of the rights of creditors to facilitate giving a Debtor a financial fresh start. Those rules are very powerful weapons when employed correctly.

At DCR, actually filing a chapter 11 is the last bankruptcy option.

Experienced financial advisors can provide essential services in a distressed financial situation. Often, where the creditors have lost confidence in the Debtor, a financial advisor may tell the creditors the same thing the Debtor would have said, but the advisor will be believed when the Debtor may not be. This is sometimes the difference between a successful and an unsuccessful restructuring.

In appropriate circumstances it may be possible to induce the funding of additional equity into a distressed situation. Because equity investment can be structured in many different ways, creative thinking can often create circumstances that make it appropriate for new equity dollars to be infused into a financially distressed situation and avoid bankruptcy.

It is often necessary to replace existing financing with new loans. DCR has strategic alliance with traditional and non-traditional financing sources for these situations where the existing lender is unable or unwilling to provide the necessary financial assistance.

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Usually the first step in any financial restructuring process is to negotiate with existing creditors to discount the amount owed or to restructure the timing of payment. The threat of a bankruptcy proceeding, in which the attorneys’ fees and other costs often result in a greatly reduced or minimal payment to creditors often creates the leverage necessary to negotiate different terms with existing creditors.