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 translate 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, demand and potential profitability may come from unexpected and under funded business units forcing a change in direction, which may not pan out as forecasted. 

Operational and one-time issues may detrimentally effect 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, 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 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 everyday 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 will shed debt and unprofitable businesses units and provide opportunities to extend the maturity phase of the business lifecycle and position 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 result 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 a renewed position in the marketplace. 

Chapter 11 Restructuring Professionals  

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

Case professionals such as administrative services, 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
  • Navigate through chapter 11
  • Confirm a plan of reorganization

Phase Eleven administrative services are a large part of a successful chapter 11 because we streamline the administrative efforts of the case, which result 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 brief explanation of each of the current chapter 11 case types:

  • Traditional Chapter 11: The traditional chapter 11 case 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: 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 the assets of the debtor companies.  
    • Post petition phase is chapter 11 compliance, deleveraging of business operations and the sale of substantially all of the 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: A hybrid between prepackaged and traditional chapter 11 case.  The prearranged case completely prepares  for pre-bankruptcy solicitation, but doesn't actually execute until after the bankruptcy case is filed.  Prearranged cases do 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 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 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 to your next case.

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