Counsel for Corporations that Need to Restructure or Reorganize
Assisting companies and corporations going through fundamental changes
Companies can change their structure by changing ownership, altering the way they do business, modifying their contractual relationships, or bringing in new board members and executives. The reasons for these changes can be due to the desire to expand geographically or to be able to offer new products and services. Sometimes, the changes are due to financial pressures and debt obligations. The ability to comply with state and federal laws may be driving the need for change. Occasionally, a company will be the subject of a hostile takeover.
At Gertsburg Licata, our attorneys have first-hand experience with corporate restructuring. Our Cleveland corporate reorganization attorneys have served as in-house counsel and currently provide legal advice to companies from the outside. We represent troubled businesses by helping them understand all of their legal options, such as a merger, an acquisition, a change in status from Chapter S to Chapter C, bankruptcy, and other alternatives. Our lawyers work to maximize the long-term goals of the company while minimizing the risks.
Types of corporate restructuring and reorganization
We help companies by first understanding and knowing how they operate from within; how they relate to customers, vendors, and the public; and by reviewing their financial and legal obligations. We focus on the stress points that are forcing difficult decisions. Some of the kinds of corporate changes we handle are:
- Mergers and acquisitions. In both mergers and acquisitions, two companies are joining together in a new form. This joining usually means that decisions have to be made about which corporate officers, directors, executives or employees will stay in the new business and which ones will be let go. Decisions have to be made about each department in the business. Creating a new corporate culture should also be considered. Many financial and legal documents will need to be reviewed to address the new business structure.
- Change in status. Changes in structure can be due to the type of legal status a corporation has. Chapter S corporations have tax advantages, but they are also subject to specific requirements, such as the limitation that there must be 100 shareholders or less. Small businesses that grow into large enterprises may need to change their status. Some nonprofits may decide it is better to be a for-profit corporation, even though they will need to pay taxes and lose the ability to solicit donations. It may be wise to convert a corporation into a partnership. Other status changes may also be useful.
- Dissolution. Corporations that are ready to go out of business need to address a wide range of issues, including placing value on assets and compensation, paying all taxes and debts that are due, reviewing who owns the intellectual property, and addressing the ability to form new enterprises.
- Bankruptcy. Corporations that are having difficulty meeting their contracts or paying their taxes may consider a Chapter 11 bankruptcy as a way of getting a fresh start. At Gertsburg Licata, our lawyers advise and work with bankruptcy professionals. Some of the key considerations in bankruptcy reorganizations are:
- Which creditors (and attorneys) will be part of the creditors’ committee
- How debt obligations can be classified
- Which contracts must be paid and which ones can be modified or even terminated
- How debt will be refinanced
- How outstanding litigation will be tackled
- How to preserve goodwill and customer relationships
- What will happen to the interests of the shareholders
- How to meet legal compliance requirements, both state and federal
The ultimate goal of bankruptcy reorganization is to get the company out of bankruptcy as quickly as possible and then into a financial and business position where it can operate and begin to make profits again. If your company is facing reorganization or restructuring, turn to our firm. Our business reorganization lawyers understand the practical, business, and legal issues that need to be resolved and the best way to resolve them.
Speak with an experienced Cleveland corporate restructuring lawyer today
If your company is struggling, delay means making things worse. If you want your company to grow, delay can mean missed opportunities. At Gertsburg Licata, our business reorganization attorneys are ready to help you get the information and guidance you need to make the right decisions for your company, shareholders, and workers. We are ready to get your business on the right path. Please call to discuss your company at 216-573-6000 or schedule an appointment through our contact form.