I read with interest your articles on "Chapter 11: to File or Not to File?" (Viewpoints, Dec. 2) as well as Greg Abrams' letter "Chapter 11 Can Aid in Liquidation," (Dec. 30).
As a consultant who has specialized in working with distressed companies for many years, I would like to point out that the issue is not simply whether a company should or should not file, but rather what options among a multitude should be taken. Of vital importance is a complete analysis of the viability of the firm, secondly an analysis of the goals of the principles and thirdly a final determination as to the environment that would most benefit the business if it is to be rehabilitated. The analysis can be done very quickly and economically.
As Abrams points out quite accurately, most insolvent businesses never survive. However, this is due in part to lack of an in-depth analysis prior to considering a course of action as well of the absence of an adequate business plan to ensure a reasonable chance of success.
An in-depth analysis does not always ensure the survival of the business. Nevertheless, without having this complete workup, it would seem to me that it is rather like a doctor prescribing medicine without having even examined the patient.