Tag Archives: contracts
Using Chapter 11 to Reshape Unworkable Agreements
There are many reasons why a once-thriving business might end up in financial straits. One of these may be that longstanding contracts that once made good sense have become burdensome as financial conditions have changed. Above-market lease payments, expensive supplier contracts or unfavorable service agreements can drain cash flow and threaten a company’s solvency. When […]
How Restaurants Can Use Chapter 11 to Renegotiate Leases
Restaurants are particularly prone to earnings downturns, which together with high rent and other obligations can push them to the brink. Chapter 11 is designed to help businesses continue operating while restructuring their debt and expenses. One of its most valuable features is giving owners a remedy for a lease or other rental agreement that […]
Preparing for Chapter 11: What to Do and What Not to Do
For a business facing financial distress, the weeks or months leading up to a Chapter 11 bankruptcy are often critical. The success or failure of a reorganization is frequently determined not by what happens in court but by steps or missteps made just before filing. Businesses unwittingly can undermine their own cases by delaying action, […]
