FOCUS: Reorganization & Bankruptcy
SUBCHAPTER V PROVES TO BE A LIFELINE FOR SMALL BUSINESS
CHALLENGE: A small veterinary business owed millions of dollars in secured claims to banks and reached out to us for assistance in determining the best available option.
STRATEGY: Client’s timing in seeking our help was fortuitous. A new streamlined version of restructuring under Chapter 11, called Subchapter V, had just gone into effect. This new provision of the Bankruptcy Code specifically benefits small businesses like this client. We filed the Subchapter V and proceeded to advise the client during the streamlined progress of the case.
RESULTS: Within six months of the filing of the case, client’s Subchapter V plan was confirmed. Client eliminated millions of dollars in debt, while continuing to provide care to its animal patients.