Cases We Handle

Debt Restructuring Negotiations

When you come to Ag & Business Legal Strategies, our goal is to assist you by:

  1. Evaluating your problems.
  2. Determining realistic goals.
  3. Identifying the key players needed for debt restructuring negotiations.
  4. Identifying other resources needed to move forward.
  5. Establishing a strategic plan and timeline for action.

Too many farmers have taken a head in the sand approach when cash flows stop working. Farmers tend to be eternal optimists, believing next year will be better and they’ll earn back the money they lost. We want to help you take the future into your own hands, call us today and we’ll help you make the right decisions to get you there.

Indecision is a Decision to Allow Others to Decide for You

Ignoring financial problems is like trying to roll a snowball up a steep hill. Soon, the snowball rolls back down the hill over you. Creditors collect money through foreclosure and other actions and these significantly limit your options.

The sooner the situation is evaluated the better the options are for a successful restructuring. The Decision-Making Continuum illustrates this (below):

BOB (Best of Best): Problems are addressed at the earliest possible time giving you the Best of the Best alternatives to consider.

WOB (Worst of Best): Problems are not addressed at the earliest possible time which limits the alternatives available to the Worst of the Best alternatives.

BOW (Best of Worst): Continued delay in addressing the problem leads to the best alternatives no longer being available. Now, only the Best of the Worst alternatives are available.

WOW (Worst of Worst): More delay in addressing the problems means that even the best of the worst alternatives is no longer available. Now, only the Worst of the Worst alternatives are available.

The best time to seek assistance is when cash flows are not allowing payment of all bills on a timely basis. Unfortunately, many farmers wait too long to seek a review of their finances by a commercial attorney. Don’t be one of those farmers.

Contact us as soon as you think you could need assistance. Reviewing your financial situation early provides the following advantages:

  • Gives you a clear understanding of the operation’s debt structure. If more debt than can be repaid in a year is annually renewable, the creditor has the option not to renew the debt on an annual basis. This is not desirable, especially when your operation is experiencing a downturn that may only last a few years. Debts for the purchase of long-term assets, such as land, should have a twenty to thirty-year term.
  • Lists which assets are pledged to secure each debt. In many cases, assets may have multiple liens.
  • Outlines when payments are due and whether you can make those payments.
  • Provides clarification of a strategic plan for your business and an evaluation of feasible options.