Loan Workouts
& Out-of-Court Restructurings
When debt becomes unsustainable, a well-negotiated workout may provide the relief your business needs without the cost or disruption of Chapter 11.
What Is a Loan Workout and When Should You Consider One?
A loan workout, also known as an out-of-court restructuring, is a negotiated agreement between a business and its lender to modify the terms of debt repayment. The goal is to relieve pressure and restore financial stability—often by extending maturities, reducing interest, or deferring payments.
If your business is behind on loan payments, missed a financial covenant, or your bank is refusing to renew your line of credit, you’re not alone—and you’re not out of options. The earlier you involve experienced restructuring counsel, the more options you’ll have.
The Catalyst: You've Been Moved to Special Assets
Most loan workouts begin the moment your loan is transferred to the bank’s Special Assets division. This is the lender’s internal workout and recovery unit—and it’s rarely a friendly handoff. You’re now dealing with professionals whose job is to recover the bank’s position, not to support your long-term growth.
You need your own professionals—ones who understand the playbook and can take the lead in negotiation while protecting your business and leverage. As discussed in Surviving Special Assets, no business should attempt to navigate Special Assets without guidance from an experienced restructuring attorney.
Why Chapter 11 Strategy Still Matters Even Outside of Court
The most effective workouts happen “in the shadow of Chapter 11.” Whether or not you ever file, your lender knows it’s on the table—and that’s what motivates serious concessions. At EmergeLaw, we’ve led hundreds of successful workouts by helping lenders understand the likely outcome of a formal restructuring and using that leverage to craft better out-of-court deals.
A good workout avoids the cost and disruption of bankruptcy while achieving many of the same outcomes—when led by the right counsel.
Focus on the Business. We'll Handle the Negotiation.
Our clients are business owners and managers, not debt negotiators. We take the pressure off by managing lender communication, crafting a strategy that aligns with your priorities, and executing a deal that gives you room to breathe. Throughout the process, you remain focused on what matters most: running the business.
Why Businesses Choose EmergeLaw for Workouts
We’re not generalists. We’re nationally recognized restructuring lawyers who negotiate from a position of strength. Whether you’re trying to avoid bankruptcy or simply buy time to stabilize, our experience and credibility give you the edge. Lenders know we understand the law and that we won’t hesitate to use it if needed.