Sophisticated restructuring counsel for small and
We know financial distress situations
inside and out and from every angle.
EmergeLaw is a boutique law firm that represents small and mid-sized businesses and their owners in Chapter 11 reorganizations, Subchapter V restructurings, and other proceedings designed to efficiently deleverage and reposition companies for future success. While we are best known for our work as debtor's counsel, our experienced attorneys also routinely represent unsecured creditors committees, investors, avoidance action defendants, and other interests in business bankruptcy cases.
When we negotiate with banks and other creditors on a client’s behalf, it’s with the company's overarching goals, concerns, and priorities in mind. The aim of these negotiations – or workouts – is to reduce debt or extend payment terms and achieve the best possible solution. Often called an "out-of-court restructuring," a workout is designed to get a company the relief it needs short of filing for Chapter 11 protection.
Chapter 11 Bankruptcy Reorganizations
Chapter 11 is a complex legal action, and no company would choose it as a first resort. But when survival is on the line, Chapter 11 protection is a powerful tool that can be the difference between revitalization and liquidation. Our attorneys have reorganized more than a thousand companies, involving billions of dollars of debt. We know how to achieve maximum value for our clients in a Chapter 11 case. And we also understand that it's never a place our clients want to be.
Subchapter V Business Restructurings
While Chapter 11 can provide extraordinary relief in terms of reducing debt and increasing cash flow, the costs and burdens are especially challenging for smaller businesses. That changed with the Small Business Reorganization Act (SBRA) that went into effect in 2020. The SBRA created a new streamlined version of Chapter 11 called Subchapter V (or Subchapter 5) for companies and individuals engaged in business with debts of less than $7.5 million.
Chapter 11 Sales & Orderly Wind Downs
Chapter 11 is most often used as a reorganization tool, but there are other situations where an entity might need the relief Chapter 11 can best provide. These involve the sale of a financially strained operating business or significant assets, or when a company seeks to go out of business in an orderly manner.
Unsecured Creditors Committees
Serving on a committee may be the most cost-effective way for an unsecured creditor to influence the outcome of a Chapter 11 case and protect their interests. When we represent Unsecured Creditors Committees, we bring the experience, acumen, and nuance developed over decades of working with companies in financial distress. While the goal is always the same – maximizing return for unsecured creditors – we know that success depends on a thorough understanding of the debtor’s business, resources, limitations, and realistic options. An active and well-represented committee can be the lynchpin to achieving the best outcome, whether that involves reorganization, going-concern sale, or liquidation.
Distressed Investments / Bankruptcy Acquisitions
Buying a business or assets out of bankruptcy presents opportunity for deep value and certainty. We represent private equity, hedge fund, strategic and institutional investors, and others in bankruptcy acquisitions involving equity, assets, and debt. Whether through a 363 sale or a Chapter 11 Plan, we know the angles to help investors navigate bankruptcy court transactions to maximum advantage.
Other Business Bankruptcy Representation
While much of our practice is focused on guiding companies and their owners through workouts, Chapter 11 cases, and Subchapter V restructurings, our lawyers have extensive experience representing all other constituencies in business bankruptcy cases and debtor-creditor matters, including secured and unsecured creditors, trustees, receivers, and defendants in preference and fraudulent conveyance actions.