Business Professionals

Business Professional Demands

As a business professional your time is limited by demands placed on you from your board of directors, company, competitors, employees, government compliance, litigation and management.  Markets and micro-markets compel your company to compete nationally and internationally, which translates into capital expenditures funded from public and private debt issuances and debt facility financing.

Demands Require Responses

Competition is fierce. Expectations for capital expenditures may not result in a favorable outcome. Demand and potential profitability may come from unexpected and underfunded business units forcing a change in direction, a change which may not pan out as forecasted. 

Operational and one-time issues may detrimentally affect survival. Asset sales may not close, fire, flood, fraud, earthquake, new legislation, operational accidents, terrorism, regulation, unexpected class action litigation, or market makers may cause ratings to fall, and standards and funding to constrict your profit center. 

Multiple events and continued market hurdles can lead to corporate governance and financial crisis, undermine business profitability and lead to credit amendments and financial forbearance, events that ultimately demand substantial redirection and threaten the very stability of even the most grounded institutions. 

Considering chapter 11 to restructure and recapitalize your business is a viable alternative which companies all over the United States leverage every day to their advantage

Repositioning Through Restructuring

Chapter 11 restructuring is a tool for business professionals to bring equilibrium back to their business model.  Instead of sliding from maturity into decline and closure, a chapter 11 restructuring will shed debt and unprofitable business units and provide opportunities to extend the maturity phase of the business lifecycle, positioning the company for renewed growth.

Chapter 11 provides protection from pre-bankruptcy creditors and allows a business a breathing spell to assess and reconfigure operations, which ultimately results in a strategic repositioning and renewed competitive stance in the marketplace.

By disposing of assets, contracts, leases and real property, while simultaneously deleveraging the financial balance sheet of certain pre-chapter 11 debts, a company can reposition its stance relative to its competitors and take full advantage of their renewed position in the marketplace

Chapter 11 Restructuring Professionals  

A successful chapter 11 case requires a team of seasoned case professionals who simultaneously produce high quality work product, deleverage the balance sheet, and extend the business lifecycle.

Case professionals such as administrative service professionals, accountants, attorneys, communication specialists, financial advisors and restructuring professionals will:

  • Assess current company issues
  • Propose restructuring strategies and case alternatives
  • Prepare court documents
  • Negotiate with creditors
  • File for chapter 11 protection
  • Maximize the deleveraging effect of chapter 11 restructuring
  • Navigate through the chapter 11 process
  • Confirm a plan of reorganization

Phase Eleven's administrative services are a large part of our chapter 11 success because we streamline the administrative efforts of the case, which results in greater efficiencies and cost effectiveness during each phase of each type of chapter 11 case.              

Chapter 11 Case Types and Phases

Chapter 11 cases differ because companies and industries have different creditor issues and restructuring goals.  To meet those issues and goals, different chapter 11 case types have evolved over time.  Regardless of the type of case, the phases of the case--pre-petition, post petition, and post confirmation--remain the same.  The following is a brief explanation of each of the current chapter 11 case types:

  • Traditional Chapter 11: The traditional chapter 11 case is one in which the company prepares for and enters into bankruptcy without a consensus among institutional creditors.  This bankruptcy can proceed quickly, depending on creditor facts and circumstances.  
    • Pre-petition phase is preparation for the chapter 11 filing, negotiating with creditors, and operational controls.  
    • Post petition phase is chapter 11 compliance, deleveraging of business operations, and financial restructuring, which culminates in plan confirmation
    • Post confirmation phase is business operations wind-down, claims objection and resolution, disbursement payments, and litigation actions to recover funds. 
  • Liquidating Traditional Chapter 11: This is a modified version of the traditional chapter 11 case in which the company prepares for bankruptcy with the intention of selling substantially all of their assets upon filing for a chapter 11.  The purpose of this bankruptcy case is to maximize the value of company assets for creditors in as rapid a fashion as possible. 
    • Pre-petition phase is preparation for the chapter 11 filing, negotiating with creditors, operational controls, and if known in advance, preparation for the sale of substantially all assets of the debtor companies.  
    • Post petition phase is chapter 11 compliance, deleveraging of business operations and the sale of substantially all assets of the debtor companies, culiminating in liquidating plan confirmation
    • Post confirmation phase is business operations wind down, claims objection and resolution, disbursement payments, and litigation actions to recover funds.  
  • Prearranged Chapter 11: This is a hybrid between a prepackaged and a traditional chapter 11 case.  The prearranged case completely prepares for pre-bankruptcy solicitation, but does not actually execute until after the bankruptcy case is filed.  Prearranged cases proceed quickly, provided creditors can agree on settlement terms in a plan of reorganization. 
  • Prepackaged Chapter 11: Institutional or substantial company creditors agree to significant debt restructuring in which debt is exchanged for equity and the majority of creditors in interest are paid in full.  The prepackaged chapter 11 seeks approval of the plan of reorganization before the case is filed.  This allows a company in many instances to either forego or shorten certain chapter 11 compliance issues, which saves money and time. 
    • Pre-petition phase is  solicitation and acceptance of a plan of reorganization, chapter 11 filing preparation, negotiating with creditors and operational controls.  
    • Post petition phase is chapter 11 compliance, deleveraging of business operations and financial restructuring, which quickly culminates in plan confirmation. 
    • Post confirmation phase is business operations wind down, claims objection and resolution, disbursement payments, and litigation actions to recover funds.

Phase Eleven has experience working with the attorneys, accountants, administrative professionals, communication advisors, creditors, investment bankers and restructuring professionals on all types of chapter 11 cases in a variety of courts. 

Phase Eleven provides expertise, resources and technology to support all administrative efforts and requests of chapter 11 case professionals, creditors and the court whether during the pre-petition, post petition, or post confirmation phase of the case.   

Phase Eleven is your single administrative resource, always available, to provide comprehensive chapter 11 administrative services in your next case.

Request a presentation of our comprehensive chapter 11 case solutions to conquer your chapter 11 challenges.