Minion & Sherman
Call Us Today for a Free Confidential Consultation
973-559-5791

Devising a financial management course for business success

Bankruptcy protection, such as a reorganization plan under Chapter 13 of the Code, may well give an individual or business breathing space to devise a strategy acceptable to creditors for repayment of obligations and continued operation of the business.

However, other times a successful debt management strategy may involve negotiating with partners and creditors to find a common solution to protect the interest of each while achieving financial goals. At times, bankruptcy itself may be averted by a carefully thought-out debt management structure.

The New Jersey Meadowlands, home to the NFL's Giants and Jets, has been plagued for years by a languishing development known as Xanadu. The proposed 2.4 million square foot retail and entertainment center remains unfinished despite the $1.9 billion dollars that has already been invested for completion. The site is mostly a pile of concrete, steel and unsightly multi-colored panels. Two developers and three governors later, the question remains what to do.

Debt management issues have afflicted the project for years. Were the development to completely fail, jobs would be lost and a potential business bonanza would face bankruptcy liquidation.

On July 26, the New Jersey Governor signed legislation providing $1.5 billion in tax credits to 10 projects, one of them Xanadu (now known as American Dream Meadowlands). American Dream stands to receive up to $300 million in incentives over 20 years to help offset costs to complete construction. Unopposed in the Senate, the bill passed the Assembly by a 71-6 margin.

Other projects mixing commercial and residential developments near urban train stations also stand to benefit. The important point is that debt management comes in all shapes and sizes. From a government perspective the tax incentives were offered to help grow the state's economy by providing for more jobs.

American Dream Meadowlands is a big example of parties working together to spur development and control debt. In assessing bankruptcy issues and the debt structure of a business that wants to continue in operation, a crucial component is a viable plan for meeting financial obligations during construction and management of the enterprise.

Laws in this area are complex and there are many complicated financial issues. An attorney knowledgeable in debt management and bankruptcy law may be of assistance in creating a plan of success.

Source: APP.com, "New law designed to help spur urban development in New Jersey," Michael Symons, July 27, 2011

No Comments

Leave a comment
Comment Information

Articles

At the law offices of Minion & Sherman, our New Jersey bankruptcy attorneys have been providing families with real solutions for more than 20 years.

Email Us For A Response

Contact Us Today for a Free Consultation

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

West Caldwell Office
33 Clinton Road
Suite 105
West Caldwell, NJ 07006

Toll Free: 866-915-1839
Phone: 973-559-5791
Fax: 973-882-0856
Map & Directions

Newark Office
201 Washington Street
Newark, NJ 07102

Toll Free: 866-915-1839
Phone: 973-559-5791
Fax: 973-882-0856
Map & Directions