Bankruptcy & Insolvency Advisory
While the fate of severely troubled businesses is sometimes bankruptcy, not all processes and advisors are created equal.
The highly skilled bankruptcy and insolvency professionals in Capstone’s Financial Advisory Services Group have significant experience managing complex bankruptcy matters involving distressed situations and restructurings. We offer a comprehensive array of bankruptcy and solvency management services to support stakeholders, advisors, and regulators through a range of options related to bankruptcy and insolvency.
Types of Bankruptcy & Insolvency Advisory Services Offered
- Debtor Representation Services
- Chapter 11 Plan of Reorganization
- Section 363 Asset Sale
- Chapter 11 Liquidation
- Chapter 7 Liquidation
- Creditor Representation
Contact Us
If you may be facing bankruptcy litigation issues, start a conversation with us today to see how we can help.
Frequently Asked Questions
No. Bankruptcy is one option, but it is rarely the only one and often not the best one. Many distressed businesses can resolve their financial difficulties through alternatives that are faster, less expensive, and more confidential.
The most common alternatives include:
- Out-of-court workouts. Negotiated contractual agreements with creditors to restructure debt, often through principal reductions, extended maturities, or debt-for-equity exchanges. The vast majority of restructuring cases begin here because, when successful, they preserve enterprise value at a fraction of the cost of Chapter 11.
- Forbearance and standstill agreements. Short-term arrangements that pause lender enforcement while a longer-term solution is negotiated.
- Refinancing or recapitalization. New senior debt, mezzanine, or equity can sometimes resolve a liquidity issue without restructuring existing obligations.
- Assignment for the Benefit of Creditors (ABC). A faster, less expensive alternative to Chapter 7 for an orderly wind-down.
- Receivership or UCC Article 9 sale. State-court paths are often used when a secured creditor is driving the process.
- Distressed M&A. A sale of the business or its assets can sometimes preserve more value than any restructuring path.
Out-of-court alternatives have limits: they cannot bind non-consenting creditors, and they do not provide the automatic stay or contract-rejection powers of bankruptcy. When the capital structure is too complex for consensual resolution, or when you need the protection of a stay, Chapter 11 (or Subchapter V for smaller cases) may be the right answer.
The most important point is timing. Early engagement with restructuring advisors expands the menu of options. Late engagement narrows it, often to the most expensive and disruptive choices. If you are seeing covenant pressure, deteriorating liquidity, or persistent operating losses, evaluate alternatives now, while you still have them.