Business Estates Bureau of NACM of Texas,
Inc. has served the business and credit interests of the community since
1906. The Bureau provides services in connection with the reorganization of
every type and size of business, in both out-of-court arrangements and in
Chapter 11 bankruptcy cases.
CREDITORS: When management of the debtor business agrees to convene meeting
of its creditors, The Bureau is provided with a comprehensive list of
creditors. The Bureau invites all known
creditors to the meeting. The Bureau
urges management to bring to the meeting copies of current, comprehensive
financial information to enable those in attendance to understand the financial
condition of the business and its prospects for rehabilitation.
ARRANGEMENTS: The Bureau helps supervise the
affairs of businesses in financial difficulty, to rehabilitate when possible
and to liquidate when necessary, in an economical, timely and businesslike
manner. The Bureau works closely with
an elected creditors’ committee in administering each case.
SETTLEMENTS: A Compromise Settlement is an
arrangement in which creditors agree to accept less than the total amount of
their claims in full settlement of the debt.
The settlement must be fair (in an amount equal to or, preferably,
greater than creditors could expect to receive under a liquidation of the
business) and must also be offered without discrimination to all creditors of
the same class. The funds for the
settlement usually come from a third party.
Such an approach can provide early cash to creditors and allow a
distressed business to continue to serve its customers and employees. To ensure equitable recovery by all
creditors, funds for the settlement are deposited in special trust funds with
and distributed by the Business Estates Bureau, to ensure equitable recovery by
AGREEMENTS: Some businesses may not have
the ability to generate sufficient cash to settle with creditors, but the
business may be able to become rehabilitated and repay creditors over a period
of time from funds generated by continuing operations. The key to success in this type of case is
an extension of time granted the company within which to repay creditors. The terms and conditions of extension
programs are negotiated between the business and a creditors’ committee, with
the assistance of The Bureau. Once an
agreement is reached, The Bureau provides a written report detailing the
debtor’s proposal to all creditors for their review and consent. During the extension period, regular
payments are received by The Bureau and deposited in special trust funds for
periodic distribution to all unsecured creditors on a pro-rata basis. The
Bureau works with the creditors’ committee in monitoring the debtor’s
operations and keeps creditors informed, by way of written reports, of the
status of the debtor’s operations and its compliance with the terms and
conditions of the extension agreement.
ASSIGNMENTS FOR THE BENEFIT OF CREDITORS: Some
businesses cannot continue to operate and must, therefore, be closed and their
assets liquidated. As a method of
concluding the affairs of a business, the general assignment is faster and more
economical than bankruptcy for the creditors of the debtor business. Occasionally, The Bureau, as Assignee, will
operate the business for a short period of time in order to complete work in
process or to attempt to sell the business as a going concern. The Bureau holds the funds generated from
the liquidation, in trust, pending verification and satisfaction of secured
claims and identification and payment of statutory priorities, after which
remaining funds are distributed to creditors on a pro rata basis.
Bureau works closely with debtors and creditors involved in Chapter II
reorganizations. The Bureau serves as
Secretary to the official Chapter II creditors’ committee and as the designated
disbursing agent under plans of reorganization. The Bureau provides special services to the Association’s
membership with respect to filing claims with the Bankruptcy Court. The Bureau can also provide written status
reports regarding ongoing bankruptcy cases for a modest fee.
ADJUSTMENT BUREAU STAFF: The Bureau is staffed
by full-time, experienced and bonded personnel. The Bureau provides an inexpensive and efficient method of
providing for the rehabilitation or liquidation of insolvent businesses. Full accountability for funds received and
disbursed under out-of-court arrangements and Chapter II Bankruptcies are made
periodically to the appropriate parties.
If you like further
information please contact Craig Kirklin at (210) 225-7106.