Advising Creditors Committees
When your customer declares bankruptcy, how will you get paid? Forming a creditors committee to pursue your interests is the single most effective way to maximize your recovery. Creditors committees give the unsecured creditors a powerful voice in court, allowing these creditors to have a chance to review any options considered by the court and trustee and to raise any concerns or objections. Skutch Arlow has years of experience acting as financial advisors to creditors committees.
Analysis. The first thing a company does in bankruptcy is ask for more money to operate. But is it money well spent? We analyze the bankruptcy DIP loan to see if the terms are fair and reasonable, and we review and question the budgets to make sure no funds are being spent unnecessarily. Less money wasted means greater opportunity for recovery for you.
Investigation. Creditors committees have the right to investigate the debtor’s affairs, monitor its businesses and look into questionable transactions in which the debtor or its principals might have engaged. Are there avoidance actions to pursue? Unperfected security interests? Fraudulent conveyances? We leave no stone unturned looking for ways to maximize your recovery.
Guidance. In bankruptcy, the court will consider all manner of reorganization plans, going concern bids and asset sales, and the creditors committee will be asked to give support. We make sense of the numbers and let you know what it means for you so that you can make informed decisions.