Why you Shouldn’t Rely on your Lawyer to Negotiate a Restructure or a Settlement to Save Your Business or PropertyJanuary 21, 2020 11:34 am Comments Off on Why you Shouldn’t Rely on your Lawyer to Negotiate a Restructure or a Settlement to Save Your Business or Property
I am always amazed when seasoned business owners and real estate investors tell me that “their lawyer is taking care of things and working out a deal with the bank.”
Let’s sit back and let that sink in for a moment. As a property owner or business owner, when in your lifetime have you sat back from an important negotiation and “let the lawyers handle it?”
You need to look at a Chapter 11 reorganization as the most important negotiation you will ever be involved in since your future literally depends on the outcome of the Chapter 11 and the law enables you to restructure the banks loan in-place…Another way to say it is the Chapter 11 is like a high pressure refinance negotiation except that the Chapter 11 “restructures” your existing loan, by using the bank you already have in-place to improve the terms of the loan you already have. That is what a Chapter 11 debt restructure is: You essentially make the bank refinance its own loan and therefore you make the bank provide you with a new restructured loan.
If you are in a typical Chapter 11, your negotiating platform consists of your bankruptcy lawyer talking to the banks bankruptcy lawyer while no-one is negotiating directly with the decision-making level at the bank. If indeed, that is the current state of your “restructure” negotiations in your Chapter 11 you need to immediately change that dynamic. Lawyers setting strategies and negotiating with other lawyers which is how most Chapter 11 get run is time consuming, very expensive, fraught with risk, inefficient, and ineffective. Were it not so, we would all run our businesses through law firms.
Having said that, let’s compare the current state of your Chapter 11 “restructure” negotiations with any other important negotiation you have had.
For our example here, let’s compare your current Chapter 11 “restructure” negotiations with the negotiations you had when you originally got your loan or the negotiations you entered when you originally bought the property, or the negotiations you entered when you originally started the company.
Think back on those negotiations and ask yourself this question: When I wanted to buy the property, did I say to myself “Hey, I want to buy that property, I think I will hire a law-firm and ask them to call the property owners law-firm and then have those law-firms negotiate a deal for me.” Of course you didn’t!
Ask yourself this question: When I wanted to get new financing or refinance my debt, did I say to myself “Hey, I want to get new financing, I think I will hire a law-firm and ask them to call the banks law-firm and then have those law-firms negotiate a deal for me.” Of course you didn’t!
The reason you didn’t hire a lawyer to call another lawyer to make your deals is because, negotiating like that would be insane, but that is exactly how your negotiations are being run today: Why would you allow that to happen? Your Chapter 11 is the most important negotiation you will ever have and there is a much better way for you to handle it, and that is to handle it our way.
It’s time you find out how and why our way is better. Call us at 800-357-8247 or Email us at
firstname.lastname@example.org , then visit us at our website www.restructuringexperts.com
and go to the section “what’s best for you” to get a clear picture of what you must do to win the Chapter 11 fight.
Categorised in: Restructuring Experts Blog
This post was written by chbfidd1
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