Pre-Bankruptcy Planning for the Commercial Reorganization

About the Authors

• About the Authors

Acknowledgments

• Acknowledgments

Foreword

• Foreword

Section 1 For the Ceo Preparation of Management, Key Employees and Exit Strategy

• Section 1 For the CEO Preparation of Management, Key Employees and Exit Strategy
• Section 1.1 Prepare for the Inevitable Personal Attacks
• Section 1.2 Understand the Reorganization Process
• Section 1.3 Meet Your New Business Partners
• Section 1.4 Mental/Attitudinal Adjustments
• Section 1.5 The Infamous "DIP" Mantle
• Section 1.6 Financial/Operational Introspection
• Section 1.7 Life in a Fishbowl
• Section 1.8 Have a Clearly Defined Exit Strategy
• Section 1.9 The Company May Be "in Play"
• Section 1.10 Be Accessible to Your Professional Team and Creditor Constituencies
• Section 1.11 Go to Court Early to Get the "Lay of the Land"

Section 2 For the Cfo/Coo Business-Issues Preparation

• Section 2.1 Cash Is King!
• Section 2.2 New and Extraordinary Expenses
• Section 2.3 Increased Scrutiny by the SEC; Potential Delisting
• Section 2.4 Assemble a List of "Essential Creditors"
• Section 2.5 Standby Letters of Credit
• Section 2.6 "Core Store" Analysis

Section 3 For the General Counsel Legal-Issues Preparation

• Section 3 For the General Counsel Legal-Issues Preparation
• Section 3.1 Assemble the Professional Team
• Section 3.2 Retainer Issues
• Section 3.3 Where to File: The Venue Issue
• Section 3.4 SEC Issues
• Section 3.5 The Prepackaged Bankruptcy
• Section 3.6 Whom Does Reorganization Counsel Represent?
• Section 3.7 Strategies Regarding Statements and Schedules
• Section 3.8 Choose Your Allies
• Section 3.9 Analysis of Claims
• Section 3.10 Cash-Collateral Negotiations/Imminent Battles
• Section 3.11 "First-Day Orders"
• Section 3.12 Analyze Leverage/Tactic Points
• Section 3.13 Don't Be Oversold on the Product!
• Section 3.14 Analyze Non-Cash-Collateral Financing Needs
• Section 3.15 Anticipate "Achilles Heels"
• Section 3.16 Be Prepared to Choose Your Battles Wisely

Section 4 For the Tax Advisor Tax-Issues Preparation

• Section 4 For the Tax Advisor Tax-Issues Preparation
• Section 4.1 The Elusive NOL
• Section 4.2 Discharge of Indebtedness Income
• Section 4.3 Lurking Personal Liability
• Section 4.4 Open Tax Years/Existing IRS Audit
• Section 4.5 Tax-Penalty Claims

Appendix A Hypothetical Chapter 11 Timeline

• Appendix A Hypothetical Chapter 11 Timeline

Appendix B Glossary of Commonly Used Bankruptcy Terms

• Appendix B Glossary of Commonly Used Bankruptcy Terms