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Debt restructucing is a plan for business, which is made to make possible to continue business operation without danger of debts. It is usually cheaper and safer than bankruptcy. Let me explain the words “cheaper” and “safer.” The only cost associated with a business debt restructuring is the time to negotiate with bankers, creditors, tax authorities and suppliers. The payoff is large. In United States, one can expect on average a 45% discount of debts. Chapter 11 bankruptcy costs at least $50,000 in lawyer and court fees and six figures is more likely. Some studies measure, that only 1 out 5 firms will survive the Chapter 11 filing.
