Custom Services

Crisis Management & Restructuring

Know Your Options

When the bank is calling the loan, or investor fatigue means no new funding, or an investment banking process has not resulted in a sale: what next? Or maybe the solution is imminent, but contingency planning is still appropriate.

Resolution can explain your options and guide your decision-making.

  • Determining which liabilities are the most important to pay
  • Managing the impact on employees, officers, and directors
  • Solving for fiduciary obligations

Bankruptcy is sometimes, but not always, the right tool. Resolution’s team includes credentialed professionals who have been cited as experts in federal bankruptcy court and who work with bankruptcy counsel to navigate this complicated process.

In many cases, alternatives to bankruptcy are available. We offer options such as such as Assignments for the Benefit of Creditors (“ABCs” ) and other bespoke solutions. These options can provide more flexibility, less publicity, lower cost, and ultimately greater value preservation. At times, a formal insolvency process is not needed at all.

Resolution will help you determine your options.

Fiduciary Representation

Fiduciary Services

Whether or not an insolvency situation exists, there is often a role for a third-party fiduciary.

Directors may want to resign. There may be no one willing to remain in place for the months or years required to properly close a company and distribute the remaining assets to creditors or shareholders. Resolution can fill those roles and address:

  • Vacant Directorships (foreign and domestic)
  • Creation and administration of Liquidating Trusts
  • Successor Trustees under ERISA for 401(k) plan closure and compliance
  • Remediation of hazardous materials at company facilities
  • Preparation of final income tax returns
  • Return of leased equipment to lessors
  • Storage of books & records

Place these burdens on us.

Value Preservation

Asset Monetization

Most wind downs require an asset monetization process. Value may still exist even if the business cannot continue as a going concern.

Resolution can help you evaluate your prospects for recovery.

At times, an entire operation could be sold as a going concern in a spin-off, an acqui-hire, a restart or as a turnaround/settlement. Insolvency processes can often provide the basis for such a fresh start.

Sources for recovery may include machinery & equipment, inventory, accounts receivable, and intellectual property.

Resolution specializes in esoteric assets generally classified as Intellectual Property. Patents, trademarks, domain names, customer lists, software, designs, databases, and SOPs are core assets that should be marketed properly, to the proper audience, under the proper terms, and at the proper speed.

Resolution will employ the correct methods, retain the appropriate vendors, and move rapidly to turn assets into cash before delays and the loss of key personnel cause that value to evaporate.

Value Recovery

Exercising Lender Rights

When it comes time to exercise your rights, lenders need a fiduciary agent.  It’s a delicate process, recovering your investment without degrading the collateral, worsening the situation, or inadvertently incurring liabilities.

Resolution can help you to exercise your rights.

Receivership: It is sometimes necessary to place someone else in charge when a borrower is unable or unwilling to behave properly.  As a company advisor, or as a court-appointed Receiver, Resolution can provide the leadership, supervision, communication, translation, reporting, feedback, and the sense of control lenders require.

Voluntarily Liquidate: In other situations, a lender may encourage a borrower to voluntarily liquidate under the guidance of a professional insolvency firm.  Here the lender need not engage Resolution directly, but we would work cooperatively with the company and its advisors to engineer as soft a landing as possible, with the lender being the primary party-in-interest.

Foreclosure: In extreme situations, lenders must foreclose with or without the cooperation of the borrower.  The collateral must be recovered and monetized.  Adherence to the rules of foreclosures as laid out in Article 9 of the Uniform Commercial Code is key, and will determine if the foreclosure will survive the inevitable challenges by disaffected creditors (or the borrower itself). The Resolution Team has successfully overcome such challenges by demonstrating best practices and compliance with the rules.