4 Reasons Why Restructuring Is A Better Route Than Litigation For MicroCap Funders & CEOs
4 Reasons Why Restructuring Is A Better Route Than Litigation For MicroCap Funders & CEOs
In a recent post on LinkedIn, Tom Allinder discussed “Why an Alternative to Litigation is better for Lenders and Funders.”
Allinder says the primary reason a funder should choose restructuring over litigation is because, through a restructure, funders have a much greater chance of receiving a return of capital (and a profit). For direct microcap investors, Allinder says restructures are “a much better alternative than a lawsuit whereby you might take over some assets or beat a few dollars out of a broke CEO.”
Allinder also share four other reasons why restructuring is better than litigation;
1. Restructured companies stand a much better chance of increasing in value in the marketplace.
2. Restructured companies with little or no debt are much better candidates for Investment Banking Firms.
3. Lender/Funders essentially become investors in the microcap company once restructuring is complete
4. A restructuring and workout is much better for all involved; only the attorneys make out and win in litigation cases against microcap companies.
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