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March 22, 2020

Coronavirus (COVID-19): How to Respond to Distress in Your Business

Coronavirus: Bankruptcy and Restructuring Advisory
  • Get Small/Go Back to Basics: Don't increase distress/risk by trying to do too much
  • Get Organized

    • Know Your Business – who are your employees/customers/vendors & how are they being impacted
    • Know Your Numbers – be realistic
    • Gather & Review Key Documents (loan agreements, insurance, leases, etc.)
    • Develop a plan, but build in flexibility
  • Cash is King

    • Go Into Survival Mode – conserve cash & cut unnecessary expenses
    • Evaluate availability under credit lines/revolving facilities
  • Communicate, Communicate, Communicate

    • Ignoring the situation does not make it go away – take charge by communicating:

      • Communicate with your Employees, Customers, Suppliers, Lenders, Landlords, Partners, Neighbors, Competitors, etc.

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To help our clients navigate the coronavirus (COVID-19) crisis, Arnold & Porter has established a Coronavirus Task Force covering a wide range of issues and challenges. Subscribe to our "Coronavirus (COVID-19)" mailing list to receive our latest client Advisories and register for upcoming webinars.

© Arnold & Porter Kaye Scholer LLP 2020 All Rights Reserved. This Advisory is intended to be a general summary of the law and does not constitute legal advice. You should consult with counsel to determine applicable legal requirements in a specific fact situation.