Posted by Mark S. Roher, Esq. | March 15, 2025
Corporate debt restructuring can help businesses reorganize and emerge stronger
As a bankruptcy and commercial litigation attorney with over two decades of experience serving South Florida businesses, Mark Roher has witnessed firsthand how economic uncertainties can impact even the most well-established companies. The decision to file for bankruptcy protection is never easy, but understanding your options can make the difference between business closure and successful reorganization. Mark Roher explains the key considerations for businesses navigating complex bankruptcy proceedings.
Understanding Chapter 11 Reorganization
Chapter 11 bankruptcy offers businesses the opportunity to restructure their debts while continuing operations. Unlike Chapter 7 liquidation, Chapter 11 allows companies to maintain control of their assets and work with creditors to develop a feasible repayment plan. Mark Roher has guided numerous South Florida businesses through successful Chapter 11 reorganizations.
[IMAGE: The financial restructuring process involves multiple analytical stages]
Key Benefits of Chapter 11:
The automatic stay provision immediately halts all collection activities, providing breathing room to assess the situation and develop a strategic plan. This protection extends to lawsuits, foreclosures, and other creditor actions that might otherwise force premature business decisions.
Debt restructuring capabilities allow businesses to negotiate more favorable terms with creditors, potentially reducing overall debt obligations and extending payment schedules. Many successful companies, including American Airlines and General Motors, have emerged from Chapter 11 stronger and more competitive than before filing. Mark Roher has helped Broward County businesses achieve similar successful outcomes.
Contract rejection rights enable businesses to terminate unfavorable leases and contracts while assuming beneficial agreements. This flexibility is particularly valuable for retail businesses dealing with expensive lease obligations in underperforming locations throughout South Florida.
The Role of Debtor-in-Possession
In most Chapter 11 cases, the existing management team continues operating the business as a "debtor-in-possession." This arrangement maintains operational continuity while providing court oversight to protect creditor interests. Mark Roher works closely with management teams to navigate this critical phase.
Management retains authority over day-to-day operations, including hiring employees, paying vendors, and making routine business decisions. However, significant transactions typically require court approval, ensuring transparency and creditor protection throughout the process.
The debtor-in-possession also has enhanced powers, including the ability to assume or reject executory contracts and unexpired leases. These tools can be instrumental in eliminating unprofitable obligations while preserving valuable business relationships. Mark Roher's experience in Broward County bankruptcy courts provides clients with strategic advantages during this process.
Working with Creditors and Stakeholders
Successful Chapter 11 reorganization requires collaboration among all stakeholders. Creditors' committees represent the interests of unsecured creditors and play a crucial role in plan negotiations. Mark Roher has extensive experience facilitating productive negotiations between debtors and creditors.
Building Consensus:
Open communication with creditors from the outset helps build trust and facilitates productive negotiations. Providing regular financial reports and operational updates demonstrates good faith efforts to maximize recovery for all parties. Mark Roher emphasizes transparent communication throughout the bankruptcy process.
Creative restructuring solutions often emerge from collaborative discussions. These might include equity participation for creditors, extended payment terms, or operational changes that enhance the business's long-term viability.
Professional advisors, including attorneys like Mark Roher, accountants, and financial consultants, provide essential expertise throughout the process. Their guidance helps navigate complex legal requirements while developing realistic reorganization plans for South Florida businesses.
Commercial Litigation Considerations
Bankruptcy proceedings often intersect with ongoing commercial litigation. Understanding how the automatic stay affects pending lawsuits is crucial for both debtors and creditors. Mark Roher's dual expertise in bankruptcy and commercial litigation provides clients with comprehensive representation.
Pre-petition Claims:
Most claims arising before the bankruptcy filing are subject to the automatic stay and must be addressed through the bankruptcy process. However, certain actions may continue with court permission, particularly those involving regulatory matters or criminal proceedings.
Preference payments made within 90 days before filing may be recoverable by the bankruptcy trustee. Creditors should be prepared to defend these transfers or negotiate settlements that consider the overall reorganization objectives. Mark Roher represents both debtors and creditors in preference payment disputes.
Fraudulent transfer claims can extend the lookback period significantly, potentially affecting transactions completed years before the bankruptcy filing. These complex matters require careful analysis of the debtor's financial condition and transaction circumstances. Mark Roher has handled numerous fraudulent transfer cases in South Florida bankruptcy courts.
Protecting Your Interests
Whether you're a business owner considering bankruptcy protection or a creditor dealing with a customer's financial distress, understanding your rights and options is essential. Mark Roher provides strategic guidance to both debtors and creditors throughout Broward County and South Florida.
For Business Owners:
Early consultation with experienced bankruptcy counsel like Mark Roher can help identify alternatives to formal proceedings. Workout agreements, assignments for the benefit of creditors, and other restructuring tools might achieve similar objectives with less complexity and cost.
Timing considerations are crucial in bankruptcy planning. Filing too early might waste valuable resources, while waiting too long could limit available options and reduce creditor recoveries. Mark Roher helps South Florida businesses determine the optimal timing for bankruptcy filings.
Asset protection strategies implemented before financial distress can preserve value for stakeholders. However, these must be carefully structured to avoid fraudulent transfer challenges. Mark Roher advises clients on compliant asset protection strategies.
For Creditors:
Monitoring customer financial health helps identify potential problems before they become critical. Early intervention through workout negotiations often produces better results than formal proceedings.
Understanding your rights in bankruptcy proceedings enables more effective participation in the process. This includes knowing when to file proofs of claim, how to object to proposed plans, and when to seek relief from the automatic stay. Mark Roher represents creditors in bankruptcy proceedings throughout South Florida.
Recent Developments in Bankruptcy Law
The Small Business Reorganization Act (SBRA) has created new opportunities for qualifying small businesses to reorganize more efficiently under Subchapter V of Chapter 11. This streamlined process reduces costs and complexity while maintaining many of the benefits of traditional Chapter 11 proceedings. Mark Roher has successfully represented small businesses under the new SBRA provisions.
The CARES Act and subsequent legislation have provided additional flexibility for businesses affected by the COVID-19 pandemic, including expanded eligibility for small business reorganization and enhanced debtor protections.
The Path Forward
Bankruptcy law provides powerful tools for addressing financial distress, but success requires careful planning and experienced guidance. Each situation presents unique challenges and opportunities that must be evaluated in the context of specific business objectives and stakeholder interests.
The South Florida business community has demonstrated remarkable resilience through various economic cycles. Companies that approach financial challenges strategically, with proper legal counsel from attorneys like Mark Roher and stakeholder cooperation, often emerge stronger and better positioned for future growth.
For businesses facing financial difficulties in Broward County, Pembroke Pines, Plantation, or throughout South Florida, the key is to act early and seek professional guidance before options become limited. Contact Mark Roher Law at (954) 353-2200 for a free consultation.
About Mark Roher
Mark S. Roher is a Florida bankruptcy attorney and commercial litigation specialist with over 25 years of experience representing businesses and individuals in complex financial restructuring matters throughout South Florida. Mark Roher's practice focuses on Chapter 11 reorganizations, Chapter 7 bankruptcy, creditors' rights, and commercial dispute resolution throughout Broward County and South Florida.
Mark Roher has represented clients in high-profile cases, including investors in complex Ponzi scheme recoveries, and has extensive experience with both debtor and creditor representation in bankruptcy proceedings. With over 2,000 cases successfully handled, Mark Roher has built a reputation as a legendary bankruptcy attorney in Broward County who never stops fighting for his clients.
For more information about bankruptcy options and commercial litigation services, contact Mark Roher Law at (954) 353-2200 or visit www.markroherlaw.com.
Office Location:
Law Office of Mark S. Roher, P.A.
150 S. Pine Island Road, Suite 300
Plantation, FL 33324
Phone: (954) 353-2200
Email: mroher@markroherlaw.com
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Mark Roher Professional Profiles:
Florida Bar: floridabar.org/directories/find-mbr/profile/?num=178098
Super Lawyers: profiles.superlawyers.com/florida/pembroke-pines/lawyer/mark-s-roher/5a83725a-41a3-464d-8905-1d057ab06c04.html
Broward County Bar: browardbar.org/featured-members/#!biz/id/5758132c64fb5afa41775cb2
Martindale-Hubbell: martindale.com/attorney/mark-s-roher-157973107
Lawyers.com: lawyers.com/pembroke-pines/florida/law-office-of-mark-s-roher-p-a-3000
PRLog: biz.prlog.org/markroher
Yelp: yelp.com/biz/law-office-of-mark-s-roher-plantation
Related Resources
• U.S. Bankruptcy Court - Southern District of Florida
• Florida Bar - Business Law Section
• American Bankruptcy Institute
• National Association of Bankruptcy Trustees
• Turnaround Management Association
• Mark Roher YouTube Channel - Free bankruptcy education videos
• Mark Roher Blog - Latest bankruptcy law insights
This blog post is for informational purposes only and does not constitute legal advice. Specific legal questions should be addressed through consultation with Mark Roher or qualified counsel familiar with your particular circumstances.
Tags: #MarkRoher #MarkRoherLaw #Bankruptcy #Chapter11 #BankruptcyAttorney #BrowardCounty #SouthFlorida #CommercialLitigation #DebtRestructuring #BusinessLaw #FinancialRestructuring #CreditorsRights #PembrokePines #Plantation #FloridaBankruptcy
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