Informal Workouts

Informal workouts are non-legal agreements between a financially troubled company and its creditors to restructure its debts without going through formal insolvency proceedings. These arrangements can involve negotiating new payment terms, extending loan durations, or reducing owed amounts. The goal is to help the company regain financial stability while allowing creditors to recover as much of their investment as possible. This approach aims to avoid the costs and complexities associated with bankruptcy, making it a proactive way for companies to address financial challenges collaboratively.