Breach With Honor, Cure With Respect And Own The Results

It is no one’s fault. You cannot be held responsible for the declining downturned economy. Everyone’s plans went out the window with sharply reduced revenues and steadily increasing overhead, a no-win situation. This has forced many into insolvency and default. The response to this catastrophe, however, is mixed. Unfortunately, many choose to avoid the issue, to hide from the banker, to not return calls or provide requested paperwork and, in short, they turn a bad situation into a worse one.

I understand, you have no plan. There is no likely turnaround, you cannot pay, so what is there to talk about? You avoid direct confrontation because it is far too painful and has no likely upside. That’s not totally true and it’s not our approach at all.

First of all, the banks are willing to offer differed payments for a while giving you some short-term relief to try and find an exit strategy or implement a turnaround plan. They may offer to modify your loan, reduce interest or extend the term, although this is also unlikely to resolve the issue. It is best to at least face the music and see what the bank wants, which is of course payment or foreclosure and liquidation. So you think, why talk or meet with them since it is a death march at best? I understand.

However, we have a plan. We know how to extricate your business from the debt without forcing it into foreclosure and liquidation or bankruptcy. And further, we also know how to reduce your personal guaranties to pennies on the dollar so the entire matter can be absolved and you can survive and prosper. We approach the bank with honor, integrity, and a plan that works for the bank as well as for the defaulting borrower. We include the bank as a partner in the workout, all the while being very transparent, disclosing all of our plans and giving them all the financial reports they may want and need to qualify a workout. Why not? We have a plan and cooperation works to support it.

In short, we help you breach with honor. We cure with respect and then we all own the results, bank and borrower.

This works, nothing else does. In a strange way, everyone is a winner, even the bank. Despite the huge loss, the workout is handled with integrity and professionalism and the bank appreciates and respects this. The result is as expected by all–huge losses–but if the process is handled with dignity and respect, professionalism and expertise, everyone comes out a winner even despite huge losses to be absorbed by the bank. The bank is not overly concerned with what happens to the borrower throughout this process. They’re not really even paying much attention to the borrower. If it works out well for the borrower, the bank is not really concerned or even interested, as long as the bank gets what it needs they are relatively happy. We are committed to delivering to the bank an effective process that results in a satisfactory conclusion for all, a classic win-win situation. All is well that ends better than expected for everyone.

Breach with honor, cure with respect, own the results and everyone wins. That is how we accomplish the impossible.