Strategic Standby Counsel

What Is Strategic Standby Counsel?

Strategic Standby Counsel is a unique legal service we offer to business owners navigating financial distress but seeking to avoid bankruptcy. As experienced workout attorneys, we stay visible but on the sidelines while your team leads discussions with lenders, landlords, or creditors. Our presence adds credibility, shifts leverage, and keeps negotiations moving in the right direction.

 

By quietly preparing for possible court action—without filing—we give you negotiating power without escalating the conflict. It’s smart, subtle, and often highly effective.

​

​

Why Strategic Standby Counsel Works

Powerful Leverage Without Filing for Bankruptcy

The presence of seasoned restructuring counsel—even in a "backbench" role—can deter aggressive moves by lenders and creditors. We signal that Chapter 11 is a viable option without making it your first move.

​

Out-of-Court Solutions with Real Teeth

We support out-of-court workouts that protect your business and relationships. With us on your team, creditors know you’re serious, but still open to resolution.

 

Stay in Control of the Process

You (or your financial advisor) lead the negotiations. We’re your legal safety net—ready to act if needed, but rarely the first voice in the room. You retain flexibility and control.

 

Preserve Value, Relationships, and Momentum

We help you buy time, preserve going concern value, and keep customer and lender relationships intact—while we quietly prepare a backstop strategy in case talks break down.

​

 

Ideal When You’re Facing:

• A commercial loan default or covenant breach

• Pressure from a bank’s special assets group

• A lender accelerating or calling a loan

• A need to buy time while refinancing or selling assets

• The threat of lawsuits, foreclosures, or enforcement actions

• Complex negotiations where legal credibility is key

​

 

How It Works

• Fixed Monthly Fee — Predictable cost with no surprises

• On-Call, Behind-the-Scenes Legal Counsel

• Ready to Act if non-bankruptcy options fail

• Seamless collaboration with CFOs, advisors, and brokers

​

In short: we don’t lead the negotiation—we make sure it stays on track by reminding everyone where it could go.

​

 

Real Results from Strategic Standby Engagements

We’ve served as quiet counsel to manufacturers, automotive suppliers, retailers, healthcare companies, construction companies and real estate developers—helping them avoid costly litigation and preserve what matters most.

​

Example: Quiet Strength Behind a High-Pressure Refinance

Under pressure to quickly pay down $12 million in debt after a covenant default, this long-established residential products manufacturer turned to us for quiet backup. We brought in trusted financial advisors to help management lead the negotiations and shape the message. Meanwhile, our presence in the background sent a clear message: if the lender pushed too far, Chapter 11 was a real and immediate option. The company ultimately secured a favorable refinance without ever having to file. Our presence helped keep the process fair and gave the company the time it needed to refinance with a new lender.

​

Example: Holding the Line Without Filing

​When a $3 million loan was abruptly called, this national product distributor faced mounting pressure. We stepped in as strategic standby counsel—giving the company a credible Chapter 11 alternative without taking center stage. With our quiet presence in the background, the lender held off on enforcement for over a year. That time allowed the owner to sell real estate, resolve cash flow issues, and stabilize the business—without ever needing to file.

​

Example: Resetting the Playing Field for a Leading Automotive Supplier

A long-standing automotive supplier hit a rough patch, triggering covenant defaults and intense pressure from a special assets banker demanding swift repayment of a $20 million loan. Brought in as standby counsel, we quietly backed negotiations led by management and their financial advisors—while signaling that Chapter 11 was a real option if pressure escalated. The shift was immediate. We helped structure a forbearance agreement that reinstated the loan and gave the company the breathing room it needed to recover without a formal restructuring.

 

 

Ready to Talk?

If you're under financial pressure, exploring a loan workout, or want to strengthen your team with experienced restructuring counsel, we can help.