Who Should I Work With at My Bank to Get a Debt Restructure?

If you're dealing with your local bank, then stay with your personal banking officer, but make sure he or she can point you in the direction of a workout officer. Either one will get you what you want. Try to make sure whomever you work with sits on the bank's loan committee; you don't want a fourth party telling your story.

If you are working with a manufacturer and its lenders or other financial institutions, they all have workout people in place. It really is a matter of getting to the right person - someone who understands your business and industry, hopefully.

You have to remember that the workout people are buried, these days, with restructure requests. It is very important to make absolutely certain that, if you don't hire a professional to represent you, you present a clear and rational plan based on a realistic forecast for your business (no rosy pictures, please). Don't ask for the workout persons' advice, and don't think that he is your friend. Be very specific with your request and plan it with great care. Remember - you will only get one shot at this. So be prepared.

Questions or comments? Contact Mike Farley at mfarley@equipone.net.