Loading...

Available Solutions to Your Business In Uncertain Times

By Abraham E. Brustein and Derek D. Samz

In this time of economic uncertainty, your business may face an increasing number of late customer payments, supply chain issues or increased debt pressure. Your small business is going to continue to incur fixed overhead costs while being unable to generate current revenue.

We can help you plan now for what to do when the lock down ends. We all know that as people are permitted to resume business and commercial activity, it will take time to generate sales and collect the funds needed to operate your business profitably and repay the accruing debt that may have gone delinquent or not serviced  for several months. DiMonte & Lizak’s insolvency team recognizes you may be facing a number of issues and may be unaware of the myriad solutions available to you, a number of which have recently been expanded or modified.  In addition to assisting your business with collection, we can also assist you with gaining the time needed to repay your, or your businesses’ debts.

You may know that on February 19, 2020, a new form of Chapter 11 (called SBRA) targeted to small businesses and their owners went into effect.  Congress enacted this law for the express purpose of making the reorganization process efficient and affordable enough to enable small businesses to obtain the benefits of Chapter 11. While a good start, SBRAs were “supercharged” on March 27, 2020 when the CARES Act was enacted. For a period of one year, the debt limit for an SBRA filing was increased from $2,725,625 to $7,500,000. Your moderate to small business may now have access to the Chapter 11 at an affordable price.

Further, SBRAs avoid many costly procedural hurdles to streamline a quick and effective reorganization. A repayment plan must be filed within 90 days of the petition. Creditor consent to the plan or reorganization is no longer required. One of the most attractive features of SBRA is the elimination of the “absolute priority rule” which requires a debtor to pay unsecured creditors in full or contribute meaningful new equity capital to contribute as a condition to retaining business ownership.

If you believe that your financial situation is beyond repair, or you have questions regarding debt issues generally, contact DiMonte & Lizak’s insolvency team.  Abraham Brustein, Julia Smolka and Derek Samz all have decades of experience navigating the issues that may be affecting your business.

 

Map

Contact Us Today

Phone: 847.698.9600

Fax: 847.698.9623

847.698.9624

Di Monte & Lizak, LLC,

216 Higgins Road,

Park Ridge, IL 60068