This feature originally appeared in the June 23rd edition of the Pittsburgh Business Times.
Q: What stops companies in financial distress from considering restructuring?
Advice: Like most things in life, the biggest obstacle is recognizing that there is a problem. Too often when a business is in financial distress, the owners believe that the solution is right around the corner. This often results in owners continuing to infuse their own capital into a failing enterprise without considering structural changes to the business.
If a business is going to restructure and survive, or liquidate and pay creditors, the owners must recognize the trends quickly and take decisive action. During financial distress, cash is king. Identifying problems, preserving cash and obtaining professional advice is the best recipe for a successful restructure or wind down, and will result in the best outcome for both the creditors and the owners of the business.
Kirk Burkley
412-456-8108
kburkley@bernsteinlaw.com