Receivership: A lender-initiated option to bring a struggling business under control. This business will likely be sold liquidated or if the outlook is unviable.
Bankruptcy: A debtor-initiated process recognizing the distressed nature of the business. A Chapter 7 filing will recognize the terminal nature of the situation while Chapter 11 allows for restructuring or liquidation, in the prolonged and rigorous structure of Bankruptcy Court.
Out-of-Court Restructuring: If a business is able to confront operational challenges head-on and acknowledge distress early, restructuring is a more available option. This will many times involve honest discussions with lenders, the creation of internal controls, and new operational strategies to maintain the health of the organization.
Reach out to the trusted experts at Resolute for a unique appraisal of your situation.