Bankruptcy
Bankruptcy Doesn’t Mean Going out of Business
In 2002, we were approached by a company that had created innovative dynamic signage technology to market products and services in retail environments. The prototype had been completed and implemented in various retail establishments, and the prospect for success was high based on the enormous potential market. However, the company was having difficulty securing funding that could carry it through some of the early stages of operation. Part of that difficulty was attributable to restrictions placed on the company by venture capitalists who already had invested in the company. The company’s principal objective in filing for Chapter 11 bankruptcy was to settle all its historical debt and reorganize the capital structure so that it could remain in business, obtain additional funding and expand operations.
As its bankruptcy counsel, we guided the company through the Chapter 11 process on an expedited basis, securing post-petition financing and negotiating with current note holders and creditors. The result was a confirmed plan of reorganization in less than 5 months from the bankruptcy filing date. As a reorganized company with a new capital structure, the company was able to continue operations and ultimately to sell its assets outside of the bankruptcy process.
As its bankruptcy counsel, we guided the company through the Chapter 11 process on an expedited basis, securing post-petition financing and negotiating with current note holders and creditors. The result was a confirmed plan of reorganization in less than 5 months from the bankruptcy filing date. As a reorganized company with a new capital structure, the company was able to continue operations and ultimately to sell its assets outside of the bankruptcy process.