The Law Offices of Ken McCartney P.C.

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When an enterprise becomes unable to continue for any reason--feasibility, cash flow, the demand of certain creditors, inability to go forward of its principals, or just plain loss of interest by the current operators there are choices:

  • abandonment, perhaps for foreclosure or surrender
  • sometimes a sale of all or part of the assets (seldom for more than liquidation value, absent viable going concern).
  • a compromise liquidation (i.e. current deeds waiving redemption and you keep some cattle).
  • the possibilities go on.

Negotiating the particulars of such a transaction with a sophisticated creditor and the creditor's counsel may result in a broad spectrum of results.  The threat of the B word and its results is on everyone's mind.  Bankruptcy can be effective.   It can also be terribly expensive, and come to no good result or effect.

Be careful not to be out counseled!

Money is never tighter than at this juncture.  It probably will never be better spent, however, than analyzing options with  broad- spectrum knowledge of what to expect and when to expect it.

 


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