When In‑Court Restructuring Becomes Necessary
Certain situations require a formal bankruptcy process, including cases where operational changes are needed, such as rejecting leases or contracts, or where liabilities — including litigation claims — cannot be addressed consensually. In‑court solutions may also be necessary when junior creditors are uncooperative, intercreditor rights are unclear, or lenders lack full visibility into a company’s liabilities, with Chapter 11 tools like a Section 363 sale providing a way to stabilise and restructure the business.
