Ordubegian Discusses Strategies for Successful Prepackaged Bankruptcies

ArentFox Schiff Los Angeles Managing Partner Aram Ordubegian was quoted discussing strategies for developing successful Chapter 11 cases, including building credibility with creditors, understanding the perspectives of other parties, and remaining open to solutions outside of bankruptcy.  

In the article, Aram outlines how important working with creditors is enhancing a client’s credibility. This can include correcting issues in a company’s financial records and bringing in new professionals who can demonstrate a commitment to addressing underlying problems.

He also emphasized the importance of considering the perspectives of other parties when evaluating potential business solutions. While attorneys must advocate for their clients, understanding what a transaction looks like from a creditor’s perspective can help identify solutions that benefit all parties.

“You want to be a fair broker to everybody,” Aram said, noting that being direct and realistic with parties is also important to establishing credibility with the court.

Aram also discussed the value of viewing a prepackaged bankruptcy as a workout rather than an inevitable court proceeding. He noted that the most successful outcome may be a restructuring that avoids bankruptcy altogether. 

“A failure of a workout is a bankruptcy, like a failure of diplomacy is war,” he said. 

Read the full article here (subscription required).