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Strobl PLLC

Strobl PLLC

Business and Corporate Law Firm

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(248) 540-2300

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    • Henry J. Andries, Jr.

      Henry J. Andries, Jr.

      Member

      Phone: 248.205.2710

      Office: Bloomfield Hills, Michigan

      Connect:

      Practice Areas

      Business Law, Commercial Contracts, Corporate Law, Healthcare Law, Labor & Employment, Litigation, Real Estate, Tax

      Experience

      Since 1995, Henry J. Andries, Jr. has engaged in private practice with a concentration in employment law, complex civil litigation...

    • Lynn M. Brimer

      Lynn M. Brimer

      Member

      Phone: 248.205.2772

      Office: Bloomfield Hills, Michigan

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      Practice Areas

      Banking & Financial Services, Bankruptcy & Creditor's Rights, Business Law, Commercial Contracts, Corporate Law, Litigation, Mergers & Acquisitions, Non-Profit Law, Real Estate, Tax

      Experience
      • Assist taxpayers with representation before the internal Revenue Service, the State of Michigan Department of Treasury and other taxing authorities...
    • Anthony Cimini

      Anthony Cimini

      Associate

      Phone: 248.205.2764

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      Practice Areas

      Banking & Financial Services, Bankruptcy & Creditor's Rights, Business Law, Commercial Contracts, Corporate Law, Litigation, Real Estate

      Experience
      • Assists distressed businesses in Chapter 11 bankruptcy filings, with expertise in Subchapter V bankruptcy filings, including prefiling negotiations, preparing first...
    • Jon P. Everly

      Jon P. Everly

      Managing Member

      Phone: 248.205.2759

      Office: Bloomfield Hills, Michigan

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      Practice Areas

      Business Law, Commercial Contracts, Corporate Law, Estate & Succession Planning, Non-Profit Law, Real Estate, Tax

      Experience
      • Advises closely held businesses and their owners in a broad range of legal matters, including formation, taxation, succession planning, and...
    • Michael L. Geller

      Michael L. Geller

      Member

      Phone: 248.205.2770

      Office: Bloomfield Hills, Michigan

      Connect:

      Practice Areas

      Business Law, Commercial Contracts, Corporate Law, Healthcare Law, Labor & Employment, Litigation, Real Estate

      Experience
      • Advises and assists clients in the creation and structuring of their business entities.
      • Regularly counsels clients relative to employment issues that...
    • Paul M. Kavanaugh

      Paul M. Kavanaugh

      Member

      Phone: 248.205.2711

      Office: Bloomfield Hills, Michigan

      Connect:

      Practice Areas

      Banking & Financial Services, Business Law, Commercial Contracts, Corporate Law, Healthcare Law, Labor & Employment, Mergers & Acquisitions, Real Estate

      Experience

      In his more than 30 years of practicing law, he has helped businesses protect their financial and intellectual property, minimize...

    • Jay R. LaBarge

      Jay R. LaBarge

      Member

      Phone: 248.205.2778

      Office: Bloomfield Hills, Michigan

      Connect:

      Practice Areas

      Banking & Financial Services, Business Law, Commercial Contracts, Corporate Law, Estate & Succession Planning, Healthcare Law, Mergers & Acquisitions, Non-Profit Law, Real Estate, Tax

      Experience
      • Advises clients on a full range of real estate matters, including drafting and negotiating purchase agreements and residential, commercial and...
    • Randi LaFave

      Randi LaFave

      Associate

      Phone: 248.205.2712

      Office: Bloomfield Hills

      Connect:

      Practice Areas

      Banking & Financial Services, Business Law, Commercial Contracts, Corporate Law, Estate & Succession Planning, Labor & Employment, Mergers & Acquisitions, Real Estate, Tax

      Experience
      • Counsels start-ups and growing companies on fundraising, including preparation of private placement memorandums
      • Works with clients to uncover and resolve bank...
    • Brian J. McCullough

      Brian J. McCullough

      Member

      Phone: 248.205.2715

      Office: Bloomfield Hills, Michigan

      Connect:

      Practice Areas

      Business Law, Commercial Contracts, Corporate Law, Estate & Succession Planning, Healthcare Law, Real Estate

      Experience
      • All legal aspects pertaining to healthcare providers, including licensing, certification issues, survey and compliance issues, Medicare, Medicaid and other insurance-related...
    • Pamela S. Ritter

      Pamela S. Ritter

      Member

      Phone: 248.205.2765

      Office: Bloomfield Hills, Michigan

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      Practice Areas

      Banking & Financial Services, Bankruptcy & Creditor's Rights, Business Law, Commercial Contracts, Corporate Law, Litigation, Real Estate

      Experience
      • Counsel to lenders in a range of loan origination transactions, including commercial and industrial loan facilities, real estate and construction...
    • James A. Rocchio

      James A. Rocchio

      Of Counsel

      Phone: 248.205.2748

      Office: Bloomfield Hills, Michigan

      Connect:

      Practice Areas

      Bankruptcy & Creditor's Rights, Business Law, Commercial Contracts, Corporate Law, Estate & Succession Planning, Mergers & Acquisitions, Tax

      Experience

      Mr. Rocchio has deep expertise in the area of taxation. Over the course of his legal career, he has counseled...

    • Nelson B. Stieper

      Nelson B. Stieper

      Of Counsel

      Phone: 248.205.2742

      Office: Bloomfield Hills, Michigan

      Connect:

      Practice Areas

      Estate & Succession Planning

      Experience
      • Performs probate and trust administration, revocable and irrevocable trusts, wills, special needs planning, gift planning, and asset protection
      • Advises on divorce,...
    • Thomas J. Strobl

      Thomas J. Strobl

      Member

      Phone: 248.205.2713

      Office: Bloomfield Hills, Michigan

      Connect:

      Practice Areas

      Banking & Financial Services, Business Law, Commercial Contracts, Corporate Law, Labor & Employment, Mergers & Acquisitions, Real Estate, Tax

      Experience
      • Advises a broad spectrum of purchasers and sellers in merger and acquisition transactions involving primarily private companies.
      • Represents financial institutions and...
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    • Bankruptcy & Creditors’ Rights
    • Business Law
      • Commercial Contracts
      • Corporate Law
      • Healthcare Law
      • Labor & Employment
      • Mergers & Acquisitions
      • Non-Profit Law
      • Real Estate
      • Tax
    • Estate & Succession Planning
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Is Chapter 11 Reorganization Appropriate for Your Business?

September 9, 2020

In these unprecedented times, many owners are frequently forced to make difficult decisions regarding the viability of their business.  A Chapter 11 bankruptcy reorganization may allow for the preservation of the existing business, but first each business owner must assess whether the business is worth saving.  Below is a list of considerations in determining if the business is worth saving and whether or not the utilization and protection of the Bankruptcy Code is appropriate.

  1. Is the business able to generate net income after the payment of expenses necessary to maintain operations (rent, wages, utilities, cost of goods sold), but before debt service (whether secured or unsecured)? Cash flow is critical to a successful Chapter 11 bankruptcy reorganization.
  2. To what extent will the business be able to shed debt (as well as certain other obligations, such as leases and executory contracts) thru the Chapter 11 bankruptcy reorganization.  Is the bulk of the business’ debt secured by assets or is it potentially tax debt that will require full payment through the plan of reorganization.
  3. Will the business’ creditors cooperate?  Will suppliers continue to work with the business during the course of the bankruptcy and will they ultimately support the confirmation of a Chapter 11 bankruptcy reorganization plan.   
  4. Is the business’ projected profitability higher than the likely demands of creditors for payments? Marginal profits may keep the doors open but will not fund any material repayment of old debt, especially if that debt is fully secured or owed to a taxing authority.
  5. Will a Chapter 11 bankruptcy effect the business going forward? Bankruptcy has a direct impact on a business. Existing customers may seek to resource their business. Those simply purchasing commodities may not be concerned. However, customers that rely on a specialized manufacturing process or service may fear that a business failure will disrupt their source of goods or services.
  6. Does the business need working capital? Suppliers may be unwilling to extend terms and may demand C.O.D terms. In a tight market, suppliers of unique and critical goods may refuse to supply, even on a C.O.D. basis. Customers with ongoing contractual relationships may delay or withhold payment of prepetition invoices to drive a breach of contract claim in order to take advantage of setoff rights which are preserved in bankruptcy.
  7. What form will the business take after exiting the Chapter 11 bankruptcy reorganization?

Chapter 11 bankruptcy reorganization is a process with many participants, each of whom has rights. A successful Chapter 11 business reorganization is not determined by the will of the business owner alone. The procedure is intended to balance the relief it affords to the business owner with protection for creditors. With careful planning and the assistance of skilled bankruptcy counsel, a Chapter 11 bankruptcy reorganization may just make a business worth saving.

Strobl is a team of experienced and trusted lawyers that can advise on all matters relating to bankruptcy and restructuring.  For more information, visit Strobl online at www.stroblandsharp.com or on LinkedIn.

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At Strobl PLLC, our attorneys are committed to your team. We collaborate with clients to share our expertise and guide them to success.

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33 Bloomfield Hills Parkway, Suite 125
Bloomfield Hills, MI 48304

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