Financial challenges can be daunting for businesses, but viable alternatives to bankruptcy often exist.
At Estrella, LLC, our Bankruptcy, Reorganization, and Creditors’ Rights practice is dedicated to helping employers in Puerto Rico explore non-bankruptcy alternatives for managing financial distress. We understand that bankruptcy is not always the best or only solution, and we work closely with our clients to identify strategies such as restructurings, workouts, and negotiated settlements. These approaches allow businesses to address their financial challenges while avoiding the formalities, costs, and potential reputational impacts of bankruptcy proceedings.
Our attorneys have extensive experience assisting clients with out-of-court restructurings, which involve renegotiating debt terms with creditors to improve cash flow and stabilize operations. We represent employers in complex negotiations with lenders, suppliers, and other stakeholders to develop customized repayment plans or modifications to existing obligations. Whether through loan forbearance, refinancing, or debt consolidation, we help businesses secure agreements that enable them to continue operating while addressing financial pressures.
In addition to restructurings, we assist clients with corporate workouts designed to rehabilitate their financial health and restore stability. This includes evaluating operational inefficiencies, divesting non-core assets, or renegotiating contracts to reduce expenses. Our team also provides guidance on compliance with Puerto Rico’s regulatory and labor requirements throughout these processes. By leveraging our deep knowledge of local laws and our negotiation expertise, we deliver practical, results-oriented solutions that empower businesses to recover and thrive without resorting to formal bankruptcy proceedings.