In this long-form post published on LinkedIn Pulse and titled “Peanuts are for Monkeys: Corporate Recovery Vs. Liquidation“, Achiad Harel of Katzenell Dimant explains how Section 350 of the Companies Law, the Israeli equivalent to Chapter 11, can be used to provide financially distressed companies a runway for corporate turnaround.
I had the pleasure of working with Achiad and providing Editorial Services for this piece.
Achiad Harel is an expert on bankruptcy and restructuring and has developed a unique specialization in corporate recovery with an emphasis on distressed startups and technology companies. Achiad represents clients in all instances of court, arbitration and mediation, and is often appointed liquidator, receiver or special administrator.
From the post: Peanuts are for Monkeys“:
“When the money runs out, and obligations outweigh assets, most companies, failing to locate an “angel” to save the business, will face liquidation and most likely settle for peanuts with the sale of any IP and activity to the highest bidder.
And when this happens the company in most cases loses its founders – the driving spirit behind the technology, in addition to its going concern value.
But remember: peanuts are for monkeys and this doesn’t have to be the case, as our judicial system offers companies in general, startups included, a better alternative to winding-up, one that protects the company’s personnel and its going concern value while working on a recovery plan.”
Link to the full post