Peters & Associates has significant experience in developing creditor proposals for businesses.

Before we accept a creditor proposal assignment, we will meet with the client (debtor) to assess their situation. If we do not believe the debtor has a reasonable chance of turning their business around, then we would not accept the assignment. If this is the case we will still take the time to review the areas of major concern with the debtor. In these situations, unfortunately, it may be their best option to consider bankruptcy.

If we both agree to proceed with the assignment we will then (with the client’s signed consent) contact each major secured creditor(s) to ascertain their willingness to consider a proposal (i.e. they agree to take no further action until they review and either accept or reject the proposal). Again, if the secured creditor(s) does not wish to work with the client under this process, there is still the option of bankruptcy.

If there is a willingness from the secured creditors to proceed we will then sign a contract with the client and begin the process of developing the creditor proposal. It is at this point that we will need to flesh out the client’s plan to turn the business around. This part of this process will include the development of a current value balance sheet and projected income statements (including cash flows) for at least three years.

We will then incorporate all relevant information into the creditor proposal which is to be presented to the creditor(s). We will, if the client wishes, attend the meeting with the creditor(s) to attempt to come to a “plan of arrangement”.

If the creditor(s) accept the creditor proposal we will write up the terms in plain language. Our client will be advised that before he / she signs the plan of arrangement that he / she may wish to have it reviewed by their legal counsel. Most certainly, the creditor(s) will have it reviewed by theirs.