Corporate Restructuring

The Dragich Law Firm represents debtors, creditors’ committees, institutional and individual creditors, secured parties, venture capitalists, equity holders, trustees, receivers and other parties in interest in bankruptcy or restructuring proceedings in Michigan and throughout the United States. We have particular expertise counseling clients with bankruptcy and insolvency issues related to the automotive industry.

Distressed Companies

We have represented a wide range of distressed companies, from closely-held family businesses to billion dollar companies. Our attorneys begin every distressed company engagement by quickly gaining a thorough understanding of the business situation and issues, and then working with management and other professionals to identify the best possible strategy to resolve the issues the company is facing.

A path forward may involve a corporate turnaround executed either out of court or in Chapter 11 bankruptcy or it may involve a sale, or a wind-down of all or part of the business. In many cases, a combination of tactics are used to maximize the value of the business and its assets, as well as to limit liability. Our role is to help the client anticipate issues, evaluate risks, determine the best course of action, and implement the strategy—as efficiently and expeditiously as possible.

We have significant experience serving as legal counsel to receivers, Chapter 11 trustees, and liquidating trustees in connection with the wind-down of businesses and liquidation of assets. We help fiduciaries uphold their legal obligations while winding down businesses and distributing assets to creditors in accordance with applicable rules of priority.

Private Equity Portfolio Company Wind Down

The Dragich Law Firm frequently works with private equity funds, in collaboration with their primary outside law firm, to handle the winding down process for their operationally inactive and/or financially insolvent portfolio companies. Rather than allowing such companies to remain on the books as existing legal entities, it’s typically best to wind them down in order to reduce risks.

Bankruptcy can be an option in these situations, but often the expense, “look back provisions” under Chapter 5 of the Bankruptcy Code, potential claims against officers and directors, and long timelines driven by the Bankruptcy Code requirements make it a less attractive option than winding down and dissolving a portfolio company under state law.

Helping private equity funds complete the wind down process in an efficient and effective manner is core to what we do.

Michigan Cannabis Industry Restructuring

The Dragich Law Firm counsels clients in connection with corporate restructuring issues within the complex legal and regulatory landscape of Michigan’s cannabis industry. We gained unique experience in this field by serving as counsel to the receiver in two major cannabis receivership cases. This includes the high-profile and challenging receivership of Skymint, one of Michigan’s largest cannabis brands.

Given that cannabis-related businesses generally do not have access to federal bankruptcy courts, the financial and operational restructuring of cannabis companies takes place through bankruptcy-alternative proceedings, such as Michigan state law receiverships and out-of-court workouts. Our firm helps operators, secured creditors, investors, landlords and other stakeholders navigate these proceedings and protect their interests.

Through our real-world experience providing legal counsel in the trenches of cannabis receivership cases, we have gained a deep understanding about the interplay between the frameworks that govern such proceedings, such as Michigan’s receivership statute, cannabis laws, the Cannabis Regulatory Agency’s rules and regulations, and local laws of Michigan municipalities. This allows us to guide clients, from operators to acquirers to creditors, through transactions, litigation and other scenarios involving cannabis company restructuring.

Creditors’ Rights

Our firm vigorously represents the interests of individual and business creditors involved in foreclosures, workouts, collection actions and bankruptcies of all kinds. We use a wide variety of creditor remedies, debt restructuring techniques and workout structures to assist creditors in obtaining repayment of debts, recovery of collateral and foreclosure of real property.

We represent lenders, secured creditors, creditors’ committees, lessors, guarantors, unsecured creditors, shareholders, individuals, and others whose rights and economic interests are at stake. From enforcing security interests, to negotiating forbearance agreements, to collecting debts in bankruptcy, we help our clients achieve the greatest recovery possible.

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