Business owners and lenders with borrowers facing financial distress need to take decisive action to preserve value for creditors and investors. A business loan workout is usually an out-of-court (not a formal bankruptcy proceeding) means of reaching agreements with creditors, customers, vendors and investors. In many instances these workouts are negotiated only between the borrower and lender with the intention of curing loan defaults or extending maturity dates. Some workouts require the agreement of a host of other creditors and vendors to be successful. In almost all circumstances these workouts are less expensive and more effective than a bankruptcy.

All successful business loan workouts begin with a through analysis of the business and its financial affairs which allows the workout professional and client to set reasonable goals and develop a viable plan of action. The plan may include the borrowers reduction of non-essential costs, implementation of organizational changes or changes in market strategy depending on the particular circumstances of the borrower.

A workout professional should have a broad range of legal skills and business experience in business reorganization, accounting and creditors' rights law. Attorney Patrick Waters has successfully represented hundreds of lenders, borrowers, creditors and investors in both formal bankruptcy proceedings and out-of-court restructuring agreements (Representative Cases).