Corporate Restructure Bankruptcy
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Company Restructuring, Insolvency & Bankruptcy Administration

Representation of Distressed Businesses, Principals, Management and Stakeholders
The Bayne Law Group LLC is dedicated to providing a full spectrum of legal services to businesses in troubled circumstances across many industries, representing and looking after our clients in distress and in need of protection from creditors and claims. We have considerable industry knowledge in restructuring and protecting stakeholders and companies in insolvency matters in and out of the US Bankruptcy Courts.

We are pleased to confidentially and professionally assist United States business owners and international business owners, boards of directors and trustees, management, investors, creditors, lenders and other stakeholders and acquirors doing business in the US who become involved in the complex process of negotiations, litigation, restructure and consideration of a strong, practical strategy to emerge from reduced or stalled cash revenue, claims defense or contract challenges to your business operations in order to survive and thrive in the future.

Contact The Bayne Law Group LLC for efficient, reasonable and forward-looking assistance with complex creditor and corporate restructuring to minimize healthy and distressed company challenges economically and swiftly, including:

  • Recapitalization and restructuring to enable owner transition and sale
  • Pre-packaged bankruptcy negotiations in which we work with stakeholders before a Chapter 11 to refinance and restructure business debt to enable ongoing operations in anticipation of seeking US Bankruptcy Court protections
  • Debt restructuring without the intervention of the courts – a non-judicial solution
  • Equity cash infusions from existing or new stakeholders
  • Recapitalization strategies and negotiations with lenders and investors
  • Corporate reorganization, divestiture, or acquisitions
  • Distressed debt trading and stock shares sales
  • Renegotiation of debt and comprehensive negotiations with creditors
  • General corporate contingency planning
  • Liquidation either privately or under Chapter 7 or Chapter 11 of the US Bankruptcy Code

Our lawyers and staff can provide general counsel services to assist with your daily business demands.

Our skilled attorneys are dedicated to representing our valued clients, including owners, secured lenders, creditors’ committees, equity committees, shareholders including parent company organizations, debtors and creditors as well as boards of directors or boards of trustees.

Summary of Typical Judicial Court Bankruptcy Activities Available to Our Clients

The Motion for Relief from Stay.
Immediately upon filing a bankruptcy petition, an Automatic Stay goes into effect. The Automatic Stay prevents any creditor efforts to commence or to continue to collect or enforce a debt against the debtor or property of the estate. The automatic stay requires creditors to cease actions against the debtor and the debtor’s property as described in 11 U.S.C. § 362(a). The automatic stay remains in effect until the case is closed or dismissed or, in an individual case, until the granting or denial of the debtor’s discharge, whichever happens first. 11 U.S.C. §362(c).

However, creditors may file a Motion for Relief from the Automatic Stay that requests lifting the stay to allow them to pursue their legal rights. Those motions are most often titled Motion for Relief from Stay, although other titles may also be used, such as a motion to terminate, modify, annul, lift, or condition the automatic stay.

As legal counsel, the attorneys of The Bayne Law Group LLC work tirelessly to consider and avail our clients of the benefits and strategy for either negotiating, defending or bringing a Motion for Relief from the Automatic Stay. This stop-valve can be utilized effectively on occasion to expedite an insolvency proceeding in Bankruptcy, to enable a swift restructure of obligations, or to protract the process for the protection of the debtor and the stakeholders.

The Adversary Proceeding.
An adversary proceeding is a lawsuit filed either by the Debtor or against the Debtor, under the total administration of the US Bankruptcy Court in order to consolidate and preserve all estate assets, including claims. An adversary proceeding is separate from but related to the bankruptcy case. It is an action commenced by one or more Plaintiffs filing a Complaint against one or more Defendants and resembles a typical civil case. The Plaintiff is the person, partnership or corporation initiating the lawsuit. The Defendant is the person, partnership or corporation being sued.

Our attorneys have significant knowledge in the nuance and strategy for engaging in or defending bankruptcy adversary proceedings. Adversary proceedings are available to both the debtor and the creditor to litigate all types of complex commercial claims which can include claims of fraud, breach of fiduciary duty, breach of warranty, breach of contract, tortious interference claims, non-compete litigation, change-of-control claims, partnership disputes, and joint venture disputes.

Our service offerings are available to assist in complex litigation claims across many sectors and industries, including manufacturing, logistics, energy, financial services, insurance, banking health care, personal services, hospitality and events, mortgage, pharmaceutical, real estate, retail, technology and telecommunication among others.

The Bayne Law Group LLC has the skills and experience to represent creditors, debtors, creditor committees, equity committees, secured creditors, liquidation and litigation trustees, Debtor in Possession (DIP), liquidators, factors, landlords and property managers, investors, lenders and asset purchasers as well as other creditors.

The Chapter 11 Subchapter V Small Business Bankruptcy
The Bankruptcy Code addresses a “small business case” somewhat differently than a regular bankruptcy case. A small business case is defined as a case with a “small business debtor.” 11 U.S.C. § 101(51C).

Under the Small Business Reorganization Act of 2019 (SBRA), small business debtors―defined as entities with less than about $2.7 million in debts that also meet other criteria―may voluntarily elect to proceed under a new subchapter V of chapter 11 of the Bankruptcy Code. Among other things, subchapter V imposes shorter deadlines for completing the bankruptcy process, allows for greater flexibility in negotiating restructuring plans with creditors, and provides for a private trustee who will work with the small business debtor and its creditors to facilitate the development of a consensual plan of reorganization.

Determination of whether a debtor is a “small business debtor” requires application of a three-part test. First, the debtor must be engaged in commercial or business activities (other than primarily owning or operating real property) with total non-contingent liquidated secured and unsecured debts of $2,725,625. The SBRA includes the requirement that not less than 50% of that debt has arisen from commercial or business activities. Third, the debtor’s case must be one in which the U.S. trustee has not appointed a creditors’ committee, or the court has determined the creditors’ committee is insufficiently active and representative to provide oversight of the debtor. 11 U.S.C. § 101(51D).

Small Business Debtors who wish to proceed under Subchapter V must opt in at Item 13 of their voluntary petitions. See § 1182(1) and (2); amended § 101(51D)(A); and § 103(i) (“Subchapter V of chapter 11 of this title applies only in a case under chapter 11 in which a Small Business Debtor elects that subchapter V shall apply.”)

In a small business case, the debtor in possession must, among other things, attach the most recently prepared balance sheet, statement of operations, cash-flow statement and most recently filed tax return to the petition or provide a statement under oath explaining the absence of such documents and must attend court and the U.S. trustee meeting through senior management personnel and counsel. The small business debtor must make ongoing filings with the court concerning its profitability and projected cash receipts and disbursements and must report whether it is in compliance with the Bankruptcy Code and the Federal Rules of Bankruptcy Procedure and whether it has paid its taxes and filed its tax returns. 11 U.S.C. §§ 308, 1116.

In contrast to other chapter 11 debtors, the small business debtor is subject to additional oversight by the U.S. trustee. Early in the case, the small business debtor must attend an “initial interview” with the U.S. trustee at which time the U.S. trustee will evaluate the debtor’s viability, inquire about the debtor’s business plan, and explain certain debtor obligations including the debtor’s responsibility to file various reports. 28 U.S.C. § 586(a)(7). The U.S. trustee will also monitor the activities of the small business debtor during the case to identify as promptly as possible whether the debtor will be unable to confirm a plan.

Because certain filing deadlines are different, and extensions are more difficult to obtain, a case designated as a small business case normally proceeds more quickly than other chapter 11 cases. For example, only the debtor may file a plan during the first 90 days of a small business case.

The new SBRA provides small businesses with certain options which the attorneys of The Bayne Law Group LLC will consider when addressing the need for insolvency protections and the ability of the debtor business to qualify and adhere to the strict SBRA procedures and requirements.

Superior Service and Sophisticated Corporate Counsel
Through the delivery of knowledgeable, accessible and responsive representation, we aim to be your firm and legal consultant of choice for years to come. The Bayne Law Group LLC has the industry knowledge and sophisticated business acumen to serve local and international clients, including small, mid-market and Fortune 500 companies.

Business Counsel for the Global Marketplace ®
Our clients come to us from states throughout the nation and countries throughout the world, including New Zealand, India, Canada, Australia, China, Europe, the Middle East and South America. Business owners, entrepreneurs, investors and business professionals rely on us for their legal needs, big and small.