DCR is powered by a select group of highly qualified professionals ready to assist in 24 areas of expertise. Team members offer specific tools honed to each unique area.
Financial distress sometimes is accompanied by a diminution in the value of real or personal property. In appropriate circumstances DCR will refer you to an entity that specializes in assisting you in having your real or personal property revaluated to reduce property taxes in the future. Where appropriate, DCR will also refer you to appraisers who have the expertise and experience to assist in the revaluation process.
Among your assets in your financially distressed situation may be debts owed to you, like accounts receivable. DCR has established relationships with experienced debt collection agencies that understand the need for speed and efficiency in collecting debts.
Based on their relationships with DCR, the collection agency may offer you a discounted rate.
An assignment for the benefit of creditors (an “ABC”) is a much lower cost alternative to filing a chapter 7 or 11. An ABC has important benefits and detriments as compared to court supervised formal bankruptcy proceedings. As a part of formulating a plan to resolve your financial situation, DCR will analyze the possibility of filing an ABC and will discuss with you benefits and detriments of an ABC applied to your particular situation.
If an ABC is appropriate, DCR will refer you to individuals or entities that have substantial experience in all aspects of filing an ABC. If you desire, Theodora Oringher PC attorneys will assist and/or represent you in that endeavor.
Financially distressed situations, and especially if you have to file a formal bankruptcy proceeding, your bank will sometimes treat you differently. Under those circumstances your bank may impose burdensome, and sometimes illogical, requirements on your banking relationship.
DCR has established relationships with banks that have experience providing banking services to clients in financially distressed circumstances, and even to clients who are in chapter 11 proceedings. DCR will assist in developing a relationship with a bank which has experience in dealing with customers in financial distress. This bank will have systems and protocols in place to make the banking relationship more efficient and less burdensome than dealing with a bank without that experience.
The process of restructuring debt, modifying aspects of struggling businesses and sometimes repositioning real estate, is a complex and specialized process. While you know your business or real estate better than anyone, sometimes using the services of a person or entity who/which specializes in assisting in the restructuring of debt, modifying a troubled business or repurposing or repositioning troubled real estate, can be very helpful and beneficial to the owner of a troubled business or distressed real estate.
Often, the presence of such an independent advisor is of great assistance negotiating with lenders and other creditors. This is due to the fact that lenders or creditors often accept as true the financial reports and projections of the independent advisor when the lender or creditors will not accept as true the same financial information if it was provided by you.
Chapter 11 should ordinarily be the course of action of last resort. It is expensive and time consuming. However, in the right circumstances, chapter 11 can be a powerful, but costly, tool to assist in resolving the financial issues your business or real estate is facing. It is also a valuable tool in negotiating with your creditors if you can demonstrate that in the absence of a negotiated resolution with your creditors you could successfully confirm a chapter 11 plan.
Your prospects for utilizing a chapter 11 will be fully analyzed, but it will likely only be chosen as a last resort.
DCR has established relationships with individuals and entities which can assist you in connection with all aspects of Covid-19 regulations and legislation. This includes maximizing available benefits to which you may be entitled under the loan and deferral programs established in regulations and in legislation. In appropriate circumstances, DCR will refer you to these individuals or entities to assist in maximizing the available benefits.
Financial distress is often accompanied by deterioration of FICO credit scores. DCR has established relationships with entities that specialize in repairing and improving credit scores.
The particular entity or entities to which you will be referred will depend on the particular items that are impairing your credit score.
In some cases, the credit repair service will charge you less for the credit repair service as a result of that entity’s relationship with DCR.
If you are involved in franchising, either as a franchisor or a franchisee, DCR has established relationships with entities which specialize in assisting both in distressed situations. Franchising is a specialized area of law and business. Having the assistance of a professional with wide experience in the franchising area may be invaluable to you. Where appropriate, DCR will refer you to such professionals.
DCR has established relationships with an entity which specializes in maximizing the value of any intellectual property you may own or have an interest in. This includes aggregating, repositioning and otherwise dealing with intellectual property to maximize value, either with or without liquidating the intellectual property.
DCR has established relationships with individuals who are experienced at guiding companies in financial distress. Where appropriate, one of these companies of your choice will provide interim management services. If we decide together that having some form of interim management will be beneficial in your circumstances DCR will assist you in finding and contracting with appropriate people or entities to provide this service.
In certain circumstances, the appropriate course of action might include bringing a lawsuit against your secured lender, or perhaps some other third party. Typically, in a financially distressed situation, the funding needed to initiate and prosecute such litigation to its conclusion is not available.
To facilitate the prosecution of such litigation DCR has relationships with entities which will fund litigation in the appropriate circumstances.
In some circumstances, significant needed funds may be obtained by selling existing life insurance policies. DCR has established relationships with entities which specialize in assisting in maximizing recovery from the sale of life insurance policies if the policies qualify for sale in the secondary market. If you have an appropriate life insurance policy and want to sell it to obtain cash, DCR will refer you to one or more entities which will assist in maximizing cash recovery from the sale of your policy.
As a part of an out of court restructuring it is often possible to negotiate with existing unsecured creditors to either reduce the amount of the debts or the terms of their repayment. In this way you may be able to achieve one of the primary benefits of a chapter 11 without dealing with its detriments .
If negotiations are appropriate in your situation DCR will assist you in establishing a program to conduct those negotiations and in the conduct of the negotiations.
If you have paid taxes in the last 10 – 15 years and have either taken losses in the last two or three years, or have made substantial layoffs in the last 3 years where FICA taxes were paid on the severance pay, you may be entitled to a tax refund. DCR has a relationship with an individual who can assist you in recovering a portion of the taxes you paid, even if the taxes were paid as long as 15 years ago.
The process of resolving your financially distressed situation may sometimes be aided by using the services of a private investigator. This is true, for example, where someone who owes you money has hidden or transferred assets. Private investigators are often helpful if you are involved in litigation that includes contested factual issues.
If is appropriate for you to retain the services of a private investigator, DCR will assist you in retaining the appropriate individual or company. The private investigators to whom you will be referred may provide their services at a discounted rate based on their relationship with DCR.
Times of financial distress often provide opportunities to renegotiate the terms of real property leases to which you are a party. If those opportunities are available to you DCR will refer you to companies that are in the business of renegotiating leases on behalf of tenants. Typically, these companies receive as compensation a small percentage of the savings they obtain for you.
The initial course of action is likely to include negotiating with your creditors, usually the primary secured creditor, with respect to a discounted payout, a forbearance or restructuring of existing debt. This course of action may be taken initially, or simultaneously with other actions.
DCR has relationships with a number of lenders which have expressed a willingness to lend into distressed situations. Where a new loan is an appropriate course of action you will be referred to two or three lenders that have expressed a willingness to lend with respect to the appropriate type of business or real estate that is involved.
In certain circumstances a loan may be available with no points and no interest. Such a loan may be made only to a borrower which is in a chapter 11, and the consequences of a default under the loan will have to be negotiated at the time the loan is made. But in the right circumstances a zero points, no interest loan may be available.
While times of financial distress are normally not the appropriate time to employ risk mitigation or asset protection programs, the financial distress often causes a realization that things can and often do go bad. DCR has established relationships with experts in this area and in circumstances will refer you to a highly qualified expert who will advise you of the options. They will assist you if and when it becomes appropriate and beneficial to adopt a risk management program.
DCR has relationships with various sources of equity funding to facilitate the funding of joint ventures, the purchase of equity, or the direct purchase of distressed assets. Where appropriate you will be referred to potential equity funders that have expressed an interest in providing new equity depending on the nature of your business or real estate.
While you undoubtedly have existing relationships with accounting professionals, sometimes it is beneficial to use the services of a tax professional who has extensive experience assisting tax payers in financial distress with their tax issues. If that is the case, DCR will refer you to such professionals, to supplement the services provided to you by your current professionals.
DCR has established relationships with consultants who have extensive experience assisting clients in financial distress in the preparation for and conduct of trials. This may include having the consultant appear as an expert witness in those trials. In appropriate circumstances, DCR will introduce you to such consultants and assist you in establishing relationships with them.
Often, these consultants will assist you at reduced rates due to their relationships with DCR.