The Sword and the Shield Continued How to Use the Chapter 11 as a Sword and Not Just as a Shield

January 21, 2020 11:37 am Published by Comments Off on The Sword and the Shield Continued How to Use the Chapter 11 as a Sword and Not Just as a Shield

Reviewing my previous Blog, you filed Chapter 11 as a “shield” to immediately end any number of threats, the most common being the threat of a bank or creditor foreclosing on your assets, appointing a receiver, or enforcing a guarantee with any or all of them resulting in you being forced to shut your doors.

 

Further reviewing my previous Blog, the way you end any such threat to your business or real estate investment is (after using the Chapter 11 as a shield) to use the chapter 11 as a sword and the way you use your Chapter 11 as a sword is to know how to forcibly restructure your debts over the objection of the banks, vendors, and other creditors.

 

The next obvious question is how do you forcibly restructure your debts over the objection of the banks, vendors, and other creditors?  You do so by understanding how to structure a reorganization plan that maximizes your leverage over the banks and creditors and forces them to deal with you.

 

So here we are at the focal point of every Chapter 11:  How do you force the banks and creditors to deal with you rationally and reasonably and force them to deal?  I can state it quite simply:  Remove the filter of the lawyers from the negotiations.  Get them away from the negotiating table and immediately initiate direct and forceful negotiations with the decision-making levels at the bank.

 

When we enter the picture for you, our first call is to the bank, not to their lawyer. Why is that you may ask?   The answer will surprise you.  The banks do not know that under the Chapter 11 if you know how to properly structure your reorganization plan, their loans can be restructured without their approval.

 

The reason they don’t know that is because their law-firms quite literally do not tell them that their loans can be restructured without their approval and your lawyer cannot tell them since he can only speak to the banks law-firm.  Are you starting to see the picture here?  The bank is operating in the dark and is negotiating with wrong facts that make them very difficult to deal with because the bank lawyers keep feeding them the line that they will win and there is nothing to worry about.

 

Well guess what: We can tell them and we not only tell them, we inform them that a plan will be filed to restructure their loan with or without their approval and even though we would prefer their cooperation, WE DON’T NEED IT.

 

I’ve personally negotiated hundreds of loan-restructures and written hundreds of reorganization plans and have lost count of the number of times that the largest banks to the smallest credit unions and private lenders have been very surprised to hear from me that we can and will restructure their loans over their objection if we are unable to come to a reasonable deal.

 

In Sum: If you know how to structure a reorg plan that can forcibly restructure the Lenders debt AND you access the decision-making levels at the Bank/Lender by removing the lawyers from the negotiating table you are on your way to a big win.

 

We know of what we speak: We’ve been doing it and winning for 30 years

 

About Restructuring Advisory Group

 

For over 25 years, Restructuring Advisory Group has negotiated the discount, refinance, modification and restructure of nearly one billion dollars in loans with major banks and financial institutions nationwide and confirmed hundreds of reorganizations plans for clients across the country.

 

We are much more than consultants or finance and equity sources: We are experts in Chapter 11 Finance and Chapter 11 turn-around strategies who decades ago successfully restructured our own businesses and real estate projects through Chapter-11: We understand the process from a business owners and real estate investors perspective and have restructured our own businesses and real estate projects as well as hundreds of others through Chapter 11.

 

About Restructuring Advisory Group

 

For over 25 years, Restructuring Advisory Group has negotiated the discount, refinance, modification and restructure of nearly one billion dollars in loans with major banks and financial institutions nationwide and confirmed hundreds of reorganizations plans for clients across the country.

 

We are much more than consultants or finance and equity sources: We are experts in Chapter 11 Finance and Chapter 11 turn-around strategies who decades ago successfully restructured our own businesses and real estate projects through Chapter-11: We understand the process from a business owners and real estate investors perspective and have restructured our own businesses and real estate projects as well as hundreds of others through Chapter 11.

 

Call or email us

C.H. Brown

RESTRUCTURING ADVISORY GROUP
Ph # 
800-357-8247 

Website:www.restructuringadvisorygroup.com

Website:www.restructuringexperts.com

Email:   RESTRUCTURINGEXPERTS@GMAIL.COM


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Refinancing, discounting and restructuring Ch-11 debt is our business & we’ve been doing it in Ch-11 reorganizations nationwide for 25 years. Call us. We have the resources, the knowledge, the influence with the banks and the capital you need. We are the solution. We guarantee it