Restructuring and turnaround
At Sundgaard, we have extensive experience with all aspects of insolvency, bankruptcy and financial incapacity. We are therefore qualified to help you or your business manage any financial challenges.
Restructuring is an alternative to bankruptcy proceedings.
It is a condition for filing for restructuring that the business cannot pay its creditors as the debt falls due – in other words that the business is insolvent.
A restructuring plan can include both an agreement of debt relief and possibly a deferral of payments. You can also force a sale / transfer of the business’ assets and operations, after which the remaining “shell”, i.e. the company’s business number goes into bankruptcy. The purpose of this is to secure the assets and the jobs and save healthy business that have experienced financial difficulties for various reasons. The two forms of restructuring (agreements and business transfer) can be combined.
in the end it is the creditors who decide the fate of the proceedings based on the recommendations of the restructurer.
The restructuring starts by appointing a restructurer (typically an attorney), whom the bankruptcy court then appoints if they meet the requirements of experience. In addition, a financial advisor with accounting expertise (usually an accountant or auditor) can also be appointed. If no financial advisor with accounting expertise has been appointed, the restructurer will typically ally themselves with the business’ accountant.
The restructuring team assists the business’ management in finding a future solution for the businesss, including for future operations.
At Sundgaard, we are experienced restructurers and we can also help finding the right financial adviser i necessary.
We also assist with out-of-court restructuring and turnarounds if there is still liquidity to fund the efforts without the help of the bankruptcy court. In these cases, it is often necessary to enter into creditor agreements with the largest creditors. In certain cases, it is also necessary to ensure new capital or sell parts of the business. We assist in such efforts as well, including legal advice, negotiations, preparation of term sheets and contracts.
We can help all relevant parties in the filing process and are always available for a meeting regarding the pro and cons.
If you as a owner or the management of a business is presented with a petition for bankruptcy by a creditor, you have the option to file for restructuring to buy some time.
The criteria for restructuring still have to be met and the counter filing should only be used, if restructuring is a viable alternative to actual bankruptcy proceedings.