ECONOMIC ADVICE TO FIRMS FACING RISK OF ILLIQUIDITY OR INSOLVENCY
Firms are falling behind on their payments due to the COVID economic crisis. We provide economic advice to business owners facing this situation. Herman Bennett led the team that redesigned Chile’s Insolvency Law for Firms.
SAMPLE CASES
1. Aided the owner of a marketing consulting firm to manage and overcome insolvency. Our advice helped him to cut costs, erase debt, and focus on his services with more added value to his clients.
2. Assisted the owner of a call-center company with +1000 employees to navigate through his firm’s bankruptcy (a lawyer led the legal procedure in court).
3. Helped a construction firm to renew a bank loan. The firm needed the loan to complete ongoing and profitable projects, but the bank was refusing to renew. We provided the firm with new arguments and the bank renewed the loan.
4. Advised a startup on restructuring its organization to cut costs and survive the COVID economic crisis. Our advice helped the partners to align their incentives with the overall goal of surviving the crisis.
Each case is unique. Some firms can avoid bankruptcy, reducing costs and renegotiating payments out of court or in a judicial reorganization, while others end up in bankruptcy and liquidated. In all cases, however, business owners must decide on a series of economic and legal issues unfamiliar to them. Good advice in both matters can save them time, money, distress, and bad decisions.
