If your business is struggling, it’s important for you to take action before it’s too late. You also need to be aware of the options available to you, because bankruptcy isn’t always the only option. Corporate proposals are one of the ways in which a struggling organization can be protected from creditors, while providing the breathing space needed to develop a plan of recovery.
The most important aspect of this process is the meeting of creditors. It’s at this time the creditors vote whether they want to accept or reject the proposal for reorganisation. If you’re the company, it’s important to consider the interests of all creditors when constructing your proposal, as well as how the proposal may affect their voting. If you’re a creditor, it’s important to understand how the voting process works, and what steps need to be taken to ensure your interests are considered.
The corporate insolvency professionals at Grant Thornton have represented the interests of a variety of stakeholders and can help guide you through the process, thus facilitating communications among all interested parties. Our goal is to ensure maximum benefit to all stakeholders, while providing the foundation for a strong and sustained recovery.
Give us a call to see if a corporate proposal is the right option for you and your organization.