The Article 9 reorganization; Eliminate the majority of business debt – without bankruptcy, without new loans, without any legal messes or attorneys.
How It Works
When business debt becomes unsupportable or a sale/exit has become impossible, reorganization under Article 9 can separate debt from the underlying business operation. Your business’s value and operations will be preserved within a new, debt-free entity which will be both viable and financeable moving forward. The debt-removal is achieved through Article 9 of the Uniform Commercial Code, which provides for a short-sale of your operational business assets into a new purchasing entity, while removing all subordinate liens and liabilities from those assets.
Ownership must necessarily change hands through this asset sale and debt-removal; however, you as the previous owner may still serve as President, CEO, or in any other capacity while earning in the form of an employment, earn out, or consultancy. In this way, your financial goals, including resolution of personal guaranties, can be met. After the resolution of all personal guaranty settlements, a previous owner is eligible to earn re-entry into an ownership stake in the new company, if that is the goal. Please note, the independent third party which Dolan Sales, Inc. will refer you to as a service. Over the past ten years, company has reorganized and preserved thousands of distressed businesses through our RISE program. They will manage this process for you, this is NOT a “debt-relief” company.
This process is focused on business reorganizations that create a win/win for you, your business and your creditors without bankruptcy, lawyers or legal messes.
The Article 9 Reorganization
- The Article 9 reorganization involves a short-sale of your business assets into a new purchasing entity. The business operation continues, uninterrupted.
- The asset purchase satisfies your senior creditor’s valuation of the assets.
- All subordinated debt, UCCs, liens and liabilities are removed from the assets in the sale to the new business entity (by statute under UCC Article 9)
- All debt remains behind with the old entity, and for which you likely have personal guarantees (PGs)
- Based on your ability to continue to earn within the new business entity, we will negotiate your PGs down to affordable loses.
- The Article 9 reorganization allows you to protect the business from liquidation, remove unsuppportable debt so the business can be financed, preserve the jobs and even maximize benefit to your creditors as an alternative to what they’d recover in liquidation.
Contact Bob for more information bobd@dolansales.com cell 954-579-4687
Related Posts
A Lesson From My Granddaughter
Being around entrepreneurs on both side of the family has brought my granddaughter to ask...
Just closed a $2,500,000 transaction, Niche Glass Processing business in Fort Lauderdale. Happy...
Avoid Sticker Shock When You Sell Your Business
I find that most often, business owners have no idea what the value of their business is, when...