Workout In The Age of The Pandemic

While the bombs were falling on London, Winston Churchill said, “We Have Nothing to Fear But Fear Itself”.

Hard to have his self-confidence during these tumultuous times when your business is shut, your revenue is non-existent, your creditors are threatening foreclosure. Fortunately, as Charles Dickens said in the preface to his famous Tale of Two Cities, “This was the Best of Times. This was the Worst of Times”.

When one is forced to default on their loans, they have a problem. When most of the businesses default, almost simultaneously, the Banks and the society itself has a problem. This reality makes both a partner in your very survival and this reality, in the hands of a restructuring specialist, provides strategic options and alternatives that otherwise would be problematic.

Bankers are, by definition, partners in your business and usually as equally committed to your success. Under these extraordinary circumstances, most understand their very survival is tied to your survival.  Few of any banks want to own, let alone operate your business. They want you to succeed so they can lend money to you, your children and grandchildren.

The key is communication and the use of seasoned  restructuring  professionals to develop a win/win recovery plan. Taylor your plan to the precise  facts and problems you are encountering. That being said, most recovery plans entail transparency and as much of a commitment of time, energy and effort as you spent getting the business off the ground at the outset. Use the myriad formal and informal tools that restructuring professionals offer. You will then have more of the time you need to pursue these strategies. Ultimately success or failure will be in your hands.

Bottom line, we are ready, willing and anxious to help you flourish and succeed despite these seemingly insurmountable obstacles. Your business can and will survive!

Eric Browndorf  is a Partner and Chairman of the Bankruptcy & Financial Restructuring practice group and Co-Chairman of the Small Business Advice group. Eric may be reached at 609-572-7538 or via e-mail at

Edward Corma is an Associate in the Bankruptcy & Financial Restructuring, Business & Tax practice group. He is admitted to practice in Delaware, New Jersey, and Pennsylvania. He can be reached at 856-857-5550 or via e-mail at