Phoenix Management Services Bankruptcy/Alternatives to Bankruptcy
Phoenix Management Services

Bankruptcy/Alternatives to Bankruptcy

At times, a company’s affairs are better managed under the protection of Chapter 11 of the United States Bankruptcy Code.

A successful Chapter 11 process requires communication with all constituents in order to move quickly towards a plan of reorganization or a sale of the business or its assets. Phoenix has the experience and know-how to guide clients through the complexity and rigor of the bankruptcy process. Phoenix has extensive experience managing all aspects of the bankruptcy process on behalf of our clients in jurisdictions throughout the United States.

Our broad array of Bankruptcy Advisory services includes:

  • Preparation of bankruptcy reports, including first day filings and monthly operating reports
  • Development of weekly cash flow forecasts
  • Monitoring our client’s operating performance
  • Developing and negotiating the Plan of Reorganization
  • Serving in an interim management capacity
  • Arranging, negotiating, and structuring DIP and emergence financing
  • Developing claims and preference analyses
  • Developing analysis and providing testimony in support of court motions
  • Trustee services
  • Managing asset sales, §363 sales, and bankruptcy liquidations
  • Creditor Committee advisory services
  • Expert witness testimony

Phoenix is very attuned to the shareholders’ and management teams’ needs within the bankruptcy process, and we can provide interim management services if resources are unavailable. We have a track record of success within the bankruptcy arena, including: our clients’ accelerated emergence from bankruptcy; sale prices that significantly exceed the original stalking horse bid; and the creation and long-term preservation of thriving businesses that emerge from the bankruptcy process. Through the process, we work to ensure that the final outcome offers the best possible value for our clients and all constituents.

Alternatives to Bankruptcy

There are often significant costs associated with the bankruptcy process that can be prohibitive to many middle market companies working through transitional challenges. Phoenix has long viewed bankruptcy as a last resort in addressing our client company’s challenges and we have been successful in implementing a variety of more cost-effective alternatives. These alternatives to bankruptcy may vary from State to State and should be carefully considered in the context of each unique client situation, but generally include the following:

  • Assignment for the Benefit of Creditors (“ABC”)
  • Out of Court Settlement
  • Receivership
  • Article IX Sale

Ultimately, the final decision of how best to address the challenges of each client company requires detailed analysis and collaborative communication in understanding the goals and objectives of our clients. Phoenix understands all of the alternatives, each with their own unique, subtle difference, and perhaps just as importantly, is uniquely qualified to recognize the views and expectations of our clients' constituents. This complete understanding allows Phoenix to make the best recommendation to our clients in a manner that allows them to maximize the value of their company and honor their fiduciary duties to their creditors and shareholders. 

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