Distressed Business Services
If you have a financially distressed customer, legal action may not be your best option. Out-of-court workouts and liquidations of distressed businesses are usually faster and more cost-effective and generate a greater return to unsecured creditors. NACM-Oregon Service Company can help you by acting as a trustee, administrator, or assignee in an out-of-court workout or liquidation.You can trust our Distressed Business Services to find a solution that is in the best interest of you and your customer.
Workouts
A workout is an out-of-court method for managing payments to creditors while the company reorganizes. A debtor often enters into bankruptcy in a panic. A workout brings a sense of control to the sometimes chaotic operations of the distressed debtor.
Liquidations
The other type of case, liquidation, is an out-of-court method of disposing of unencumbered assets, the proceeds of which benefit creditors. This service allows the debtor time to step back, look at the business, and carefully plan the liquidation rather than running to bankruptcy court.
Debtor & Creditor Benefits
Avoiding the bankruptcy court-related procedures and expenses directly benefits the debtor and creditor. Depending on the circumstances, a debtor may reorganize and save the business. The creditor will realize the benefit of a continued business relationship. If, on the other hand, liquidation is the only alternative, the debtor avoids the costs associated with a formal bankruptcy filing. This should result in a greater recovery for unsecured creditors. Also, the debtor and creditor benefit from prompt action and the flexibility of an out-of-court resolution.
Unsecured Creditors
The unsecured trade credit manager has the most to gain from a service of this kind. NACM-Oregon Service Company provides this service as an additional tool to help creditors obtain payment and to continue the business relationship in the future. By working together, creditors and debtors can come to a mutual solution. Any creditor, particularly an unsecured creditor, involved in bankruptcy cases knows how long it takes to resolve the cases and the effect of the time and costs on their recoveries. Cases settled out of court usually return more to creditors and are resolved in a more timely fashion.
Feel free to contact us about your distressed business needs.