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 A Non-Profit Trade Association for Credit Professionals of manufacturers and wholesalers
YES, THERE IS AN ALTERNATIVE TO BANKRUPTCY
FOR DISTRESSED COMPANIES 
WHAT Would An Alternative Be? 
  • An out-of-court arrangement - known as a Composition Agreement
WHY is an Out-of-Court Arrangement Favorable?
  • Lower Administrative Costs
  • Unsecured Creditors are involved in the plan
  • Better pay-out to creditors
  • Maximum pay-out to creditors
  • Better communication with creditors
  • Fair and equal treatment of all unsecured creditors - no creditor receives more or less than another unsecured creditor
WHO is qualified to administer the Alternative plan?
  • Answer: BPCA 
WHY is BPCA qualified:
  • BPCA has experience in reorganizations and, when necessary, liquidation of companies while providing the best possible recovery for the unsecured creditors.
  • BPCA 's experience in informal "out-of-court" workout arrangements has made them the preferred company of unsecured creditors.
  • As a Not-for-Profit corporation, BPCA is able to keep administrative costs low.
  • BPCA is available to meet with debtors, review their situation and propose a plan of reorganization.
HOW does the Alternative work?
  • BPCA reviews the financial statements, and the problem as the Debtor sees it, then makes an independent analysis.
  • BPCA supports and encourages calling a meeting of unsecured Creditors with the largest balances owed by the debtor.
  • Debtor makes a presentation to the unsecured Creditors on where the business is at, how it got there, and a plan the Debtor feels confident they could meet .
  • Unsecured Creditors discuss the Debtors proposed plan and all alternatives -- without the Debtor present.
  • BPCA supports the formation of an unofficial informal creditor committee of 5 - 7 of the unsecured Creditors to represent all unsecured Creditors.
  • A "plan" would be developed and agreed upon for payment of old debt.
  • BPCA solicits acceptance of the "plan" from all unsecured Creditors.
  • BPCA monitors adherence to the plan by the Debtor.
  • BPCA establishes escrow accounts for accumulating Debtor funds for payment to Creditors in accordance with the "plan".
  • BPCA keeps the creditor community informed of all circumstances.
WHAT if the debtor cannot or does not want to continue in business?
  • BPCA makes a liquidation analysis.
  • BPCA monitors the liquidation of assets, searches for other items that can be converted to cash.
  • BPCA works to get the best possible value for the assets -- not just get a fast sale.
  • BPCA keeps the creditor community informed.
HOW Does BPCA Learn Of Debtor Problems?
  • Debtors contact BPCA when experiencing problems.
  • Creditors contact BPCA and advise of apparent distressed customers, and BPCA contacts the Debtor.
  • Creditors encourage Debtors to contact BPCA .
  • BPCA , a pro-active association, monitors Debtors showing a noticeable deteriorating payment trend.

An ALTERNATIVE that is quicker, less expensive, and communicated better than a bankruptcy filing.

Obtain more information on the ALTERNATIVE to bankruptcy by calling BPCA at (636) 294-5775

For more information use our Information Request form. Just fill in the form and click the “Send” button, and BPCA will process your request or call us at (636) 294-5775.
BPCA
607 Westridge Dr., O'Fallon, MO 63366
Phone: 636-2294-5775       Fax: 636-272-2973       E-mail: service@bpca.org

(A Business Products Credit Association, Inc. Company)

(C) Copyright 2000  Business Products Credit Association, Inc.