Rising interest rates are expected to push a growing number of companies into bankruptcy. Alternatives are being developed to work out insolvent companies' obligations, by cutting time and cost from the bankruptcy process. This webinar provides clarity on the issues that will make the next wave of bankruptcies more complicated than ever.

A typical large Chapter 11 case is triggered by payment default, and conflict is resolved either through judicial valuation or settlement. Litigation or negotiation is costly and can lead to inefficient continuation of inviable firms. An alternative is for debtors to dictate by contract how interests in and claims against the firm will be allocated. Another alternative is to use the market to evaluate a firm, rather than a court. This segment examines some alternatives available in large bankruptcy cases.

The use of formal Chapter 11 cases is often questioned as being too expensive and too lengthy. Statutory constraints, the need for Court approval, and the high costs of professionals are examples of the criticism. Are there viable alternatives? What are you giving up when you opt for informality and out-of-court resolution? Is the trade-off reasonable, or are you actually better off in a formal Chapter 11 case? Controlling the process and keeping recalcitrant creditors from trying to hijack the case are significant concerns.

Rarely is there one solution that fits all problems, and the world of insolvent or financially-troubled businesses is no different. Chapter 11 is often the strategy-of-last-resort, and its advantages and disadvantages must be clearly weighed, and alternatives thoroughly considered, before e-filing that petition with the bankruptcy court. Understanding early on the likely benefits and obstacles of Chapter 11, and the practicality and advantages of bankruptcy alternatives, is critical. Capable professionals are able to identify and accurately weigh bankruptcy alternatives, and know how to efficiently and effectively navigate through Chapter 11 should a filing become necessary.