TITLE : SAVING YOUR BUSINESS: HOW TO SURVIVE CHAPTER 11 BANKRUPTCY AND SUCCESSFULLY REORGANIZE YOUR COMPANY.

 
Introduction
 
Part I
A Business in Trouble: Is Chapter 11 Bankruptcy the Answer? 1
 
1	It Doesn't Look Good from Here
Recognizing the Signs of Business Problems 3
 
 Protect Your Company Against Tough Times by Building a Financial
  Cushion 4
 Acknowledge the Seriousness of Your Financial Problems 5
 Determine the Nature and Extent of Your Financial Problems 5
 Recognize the Difference Between Long-Term and Short-Term Problems 6
 Learn that Managing Chronic Financial Problems Doesn't Cure Them 8
 Understand How Untreated Problems Create Financial Vulnerability 8
 Overcome a Sudden Economic Crisis 11
 If Your Company Is Financially Vulnerable, a Sudden Event Can Spell
  Disaster 12
 Look for Solutions Besides Filing for Bankruptcy 13
 Summing Up 14
 
 
2	 A Fool for a Client
The Right Attorney Is the First Step to Success 15
 
 Know What to Look for in a Bankruptcy Lawyer 16
 Begin Your Search by Developing a List of Potential Candidates 16
 Meet Several Candidates before You Choose Your Lawyer 18
 Conduct the Final Interview with Your Potential Lawyer 21
 Take a Realistic Approach to How Attorneys Normally Work 22
 Summing Up 23
 
 
3	To File or not to File
Reorganizing Without Filing for Bankruptcy 37
 
 Don't Let Your Attorney Make the Decision to File for Bankruptcy 38
 Get the Information that Will Give You the Edge in Negotiating with
  Your Creditors 38
 Learn How to Cut Costs by Negotiating with Your Creditors 39
 Find Additional Time to Pay Existing Debts 42
 Reduce Your Existing Debt Load 44
 How You Can Benefit from a Chapter 11 Filing 45
 Recognize the Problems Involved in a Chapter 11 Filing 47
 How to Decide If You Should File for Bankruptcy 49
 Summing Up 50
 
 
4	Be Prepared
What to Do before You File for Bankruptcy 51
 
 Protect Your Funds by Maintaining a Bank Account and Bank
  Relationship with More than One Institution 52
 Get Financing after Filing for Bankruptcy 53
 Assess How Much Time You Have before Your Financial Difficulties
Lead
  to a Bankruptcy Filing 54
 Understand the Preferential Transactions that Can Be Reversed 55
 Review the Bankruptcy Petition before You File 58
 Plan for Your Reorganization before You File for Bankruptcy 59
 File a Reorganization Plan Along with the Bankruptcy Petition 60
 Work with Your Attorney on the Bankruptcy Filing 62
 Consider Hiring a Turnaround Consultant to Help You Reorganize Your
  Business 63
 Summing Up 64
 
 
Part II After You File: Fixing What Went Wrong 65
 
5	Let the G-ames Begin
What to Expect Once You File Your Bankruptcy Petition 67
 Know the Sequence of Events in the Bankruptcy Process 68
 File a Complete Bankruptcy Petition 69
 Make Sure You Have Permission to Use Your Funds 69
 Obtain "Debtor-in-Possession" Financing from Your Second Bank 71
 Meet with Your Creditors 72
 Submit Regular Reports to the Courts 75
 Submit a Plan of Reorganization 75
 Set a Bar Date for All Claims against the Debtox
 Always Review Claims to Make Sure They Are Valid 76
 Decide Whether to Assume or Reject Contracts and Leases 77
 Sell Your Assets If You Have the Permission of the Court 77
 File a Disclosure Statement 77
 Submit the Plan to Creditors for Their Vote
 Confirm a Reorganization Plan over the Objection of Some Creditors
78
 Regain Control of Events by Understanding the Bankruptcy Process 79
 Summing Up 80
 
 
6	Can We Talk?
Opening Constructive Lines of Communication 84
 
 Give Your Employees as Much Information as Possible US
 Establish Communication with Your Suppliers 89
 Communicating with Your Banker: Important but Difficult 96
 Communicating with Your Customers: The Key to Your Business Future
98
 Maintain Support of Friends and Family 99
 Summing Up 100
 
 
7	Greater than the Sum
Analyzing Your Business to Cut Costs, Increase Profits, and Raise Cash
105
 
 Cut All Unnecessary Costs 106
 Analyze Your Costs and Expenses 107
 Consider Selling Excess Assets to Raise Cash 112
 Sell Other Assets in the Same Manner as the Real Estate Transaction
  114
 Find Hidden Assets that Can Be Turned into Cash 115
 Consider Selling the Entire Company or a Major Part of It 115
 Summing Up 117
 
 
8	Keep Your Eye on the Ball
Running Your Company as a Viable Concern 122
 
 Learn to Refocus on Your Company's Mission 123
 Make Sure that Your Customers Believe that You're Still in Business
  124
 Create New Ways to Fromote Your Business 124
 Look for New Markets Where the Profit Margins Are Better 126
 Develop New Sources of Supply 127
 Plan Ahead for the Day You Will Emerge from Bankruptcy 128
 Summing Up 129
 
 
Part III The Reorganization: A Chance to Start Over 131
 
9	Case Study
One Company's Progress from Bankruptcy Petition to Reorganization Plan
133
 
 Reduce Debt before You Reorganize 137
 How to Begin a Payment Plan for Creditors 138
 Summing Up 139
 
 
10	Let's Make a Deal
Negotiating Payment Terms with Your Creditors 177
 
 Create a Debt Payment Plan 178
 Assess Your Company's Financial Status before You Begin Negotiating
  with Creditors 179
 Negotiate Your Payment Plan with Your Creditors
 Repay Administrative Debts-Taxes, Wages and Professional Fees 186
 Summing Up 188
 
 
11	The First Step Out of Bankruptcy
Filing a Disclosure Statement 191
 
 Write Your Disclosure Statement 192
 Determine How Much Financial Information to Disclose 194
 Assess the Adequacy of Your Disclosure Statement-and Handle Disputes
  with Creditors 195
 Obtain Approval of Your Disclosure Statement 197
 Summing Up 197
 
 
12	Your Best Offer
Filing Your Plan of Reorganization 203
 
 Write Your Plan of Reorganization 204
 Learn What to Do If Your Creditors File a Competing Plan 206
 Get Creditors to Vote on Your Reorganization Plan 207
 Summing Up 210
 
 
13	Making the Reorganization Work
And What to Do If It Doesn't 218
 
 Keep Track of All Payments Made under the Terms of the Plan 219
 Learn How to Reestablish Credit 219
 Communicate with your Creditors While Completing Your Reorganization
  Plan 221
 How to Handle Temporary Cash-Flow Shortages 221
 What to Do If Your Plan Was Too Ambitious for Current Business
Levels
  222
 Summing Up 223
 
 
14	What's the Worst that Could Happen?
Conversion to Chapter 7 Liquidation 227
 
 What Happens in a Chapter 7 Liquidation 228
 Handle Personal Bankruptcy under Chapter 7 228
 Work with a Trustee to Liquidate Your Company 229
 How Funds Are Disbursed in a Liquidation 230
 How a Chapter 7 Liquidation Comes to a Conclusion 231
 Take an Objective Look at Whether a Chapter 7 Liquidation May Be
  Advisable 232
 Summing Up 232
 
 
15	And Life Goes On 233
 
 Businesses Do Go on after Chapter 11 Bankruptcy 234
 Even If the Company Fails, the People Do Not 235
 Summing Up 237
 
 
Epilogue 238
Glossary of Terms 239
Index 241