Bankruptcy counsel with depth
Karl Johnson is one of only three attorneys in Minnesota certified as a Business Bankruptcy Specialist by the American Board of Certification. His experience includes thousands of bankruptcy cases under Chapters 7, 11, 12 and 13.
Assessing the options
Some situations can be addressed through a negotiated workout. Others require a court process to reorganize, sell assets or wind down. We examine the business’s obligations and immediate pressures, then assess the possible routes and their consequences.
An early discussion can identify the information needed to make that assessment: financial statements, debt schedules, security agreements, leases, tax obligations and the business’s forecast.
Chapter 11 and Subchapter V
Chapter 11 provides a process for a business to propose a reorganization plan while addressing its debts and operations. The right approach depends on the business’s cash flow, assets, creditor relationships and ability to fund a workable plan.
Subchapter V is a form of Chapter 11 for eligible small-business debtors. A trustee is appointed to assist the process and facilitate a consensual plan. Unless the court orders otherwise, the case generally proceeds without an official creditors’ committee or a separate disclosure statement. A plan can sometimes be confirmed without every impaired creditor class accepting it, but the statutory protections for creditors and payment requirements still apply.
Karl assesses eligibility, projected operating results, secured debt and ownership goals before recommending a filing. His experience includes representing the debtor in the first confirmed Subchapter V plan in the Eighth Circuit.
Farm and agribusiness restructuring
Agricultural businesses may face different restructuring choices depending on the operation, ownership and debt. Karl handles agricultural bankruptcies and evaluates Chapter 12 alongside other available routes. Explore the agricultural practice. Our Chapter 12 farm bankruptcy guide addresses eligibility, seasonal cash flow, farm assets and the information useful for an initial discussion.
Owners and personal guarantees
A company’s bankruptcy and an owner’s personal obligations are separate questions. A filing by the company does not, by itself, release a person from a guarantee. Owners should have their own obligations and any potential conflicts reviewed as part of the planning process.
Contested issues
Disagreements over collateral, leases, claims or proposed transactions can shape the course of a business bankruptcy. Our bankruptcy litigation practice addresses those disputes. Our banking practice also represents lenders, subject to conflict review in each matter.
Start with the current pressures
When contacting the firm, identify the business, the main counterparties, whether operations are continuing and any immediate court or payment deadlines. Avoid sending detailed financial records until we arrange a conflict check and a method for exchanging documents.
Meet Karl Johnson. For general background, see the U.S. Courts explanation of Chapter 11.