Debt Restructuring/Workout

As companies and individuals grow and evolve, their financial situations naturally change. If an individual or company is facing financial distress, options other than a formal bankruptcy may still be available to them. Many people feel that filing bankruptcy is the “last resort,” and indeed, there may be other viable avenues to pursue prior to turning to formal proceedings. DelCotto Law Group will always work to objectively assess business or personal finances to discern if debt restructuring or a debt workout is a viable option. Often, this requires some outside financial assistance or work within the Firm to quickly gather financial information, since all options are primarily driven off of cash flow and cash availability.

Debt workouts are necessary when debtors have severe financial problems. Restructuring is simply a realignment of debt structure reflecting concessions granted by creditors to give the debtor a more practical arrangement for meeting financial obligations. DelCotto Law Group provides legal services dealing with crisis management, restructuring, consensual workouts, and turnarounds. Financial transactions such as these are usually time-sensitive and urgent. DelCotto Law Group and its staff promptly respond to clients' issues and concerns and strive to provide proactive, creative, and effective solutions in a fast-paced setting.

Attorneys at DLG have handled debt restructuring and workout cases representing both borrowers and lenders, so they are well versed in knowing what the concerns and drivers are to those sitting on the other side of the table.

• Borrowers. In representing borrowers, the main objective is to negotiate with a lender to restructure the loan terms to meet the reality of the borrower’s situation. Finding “reality” is often difficult for all involved, especially in today’s economic climate, as no one seems to be willing to accept the sometimes dire circumstances that may have arisen due to market and external forces as well as from problems within the borrower’s business. DelCotto Law Group strives to brainstorm less drastic solutions that might be palatable to both the lender and the borrower. By exploring the options, the Firm can provide solutions that avoid bankruptcy or litigation.  

• Lenders. In representing lenders, the main objective is to maximize recovery from whatever courses of action might produce the highest outcome. DelCotto Law Group reviews and assesses the impact of a potential bankruptcy and considers borrowers’ past dealings to get the best outcome for lenders, looking at both short-term and long-term consequences. Lenders who are willing to put in new money or wait longer terms for repayment often ask for and deserve certain concessions for being willing to work-out of a situation.

From debt/cash-flow problems to collections, if there is a solution other than bankruptcy, the attorneys at DelCotto Law Group will find it. The Firm’s attorneys fully evaluate and discuss each option with each client and carefully consider how each option will affect their clients, both now and in the future. The lawyers of DelCotto Law Group take into account their clients’ corporate adaptability and long-term goals so that they can offer their clients a change that can work in their best interest.