Commercial Collections Blog

Chapter 11 Bankruptcy Filings

From The Desk of Jerry Curtis

Dear Customer:

According to corporate restructuring experts, Chapter 11 bankruptcy filings should take a significant jump within the next year to year and a half as they foresee a tightening of liquidity and higher interest rates. So far, it appears that some financially challenged firms have been able to avoid having to file for bankruptcy protection thanks to buyout firms being awash in liquidity, but as that liquidity dries up in the next year or more, troubled companies will be harder-pressed to come up with financing. When the next round of Chapter 11 filings does occur, according to some, the restructurings will become more complex, partly because of uncertainty regarding priority and collateralization of second-lien loans.As a result, debtors may feel increased pressure to try to arrange restructuring deals before filing Chapter 11 and then sell off assets following entry into bankruptcy protection.

Be assured that we are working hard to provide your business with the needed financial and accounts receivables services you have come to expect from Burt & Associates. As always, should you have any questions, comments or suggestions, please do not hesitate to contact your National Account Executive today.

With warmest regards,

Jerry Curtis
President & CEO

Educational Tidbits For Today’s Credit Executive
Getting a Grip on Inventory

Getting a grip on your company’s inventory is a balancing act.Without sufficient inventory a company could lose customers.But too much inventory results in lost profits.Even with sophisticated software, managing inventory is a tricky business, but there are methods that can help. One way is to come up with a manual method of tracking stock, which includes a paper system that tracks both supply and demand.Another strategy in managing inventory is to turn it quickly.For example, in the manufacturing sector a company should turn its inventory at least six to eight times a year, while firms in the distribution industry should turn at least four times a year.

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