The Importance Of Examining Reasons For Restructuring

Law360, New York (October 9, 2013, 4:06 PM EDT) -- In order to understand which legal entities in a corporate family to include in a restructuring, it is critical to understand the events causing the company to be in distress. There are four general reasons why a company will consider seeking protection under Chapter 11 of the Bankruptcy Code:

(1) If a company is facing or will face a serious liquidity issue, such as the inability to refinance debt or make an upcoming debt service or amortization payment, a bankruptcy proceeding will create “breathing space” for...
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