Cross was quoted saying, "The seemingly simple way out of a recession-produced financial pickle isn’t really that easy or attractive." He also noted that the time Venable attorneys have dedicated to helping local businesses avoid bankruptcy has increased in recent months.
Cross further explained, "Once business owners understand the long-term ramifications of bankruptcy, many seek alternative options. Restructuring debt or negotiating with vendors often becomes the more attractive option when weighed against court proceedings and bankruptcy reemergence plans. They are more realistic about what is achievable in bankruptcy. You see more negotiated cases before a bankruptcy case is filed."
Cross said, "Venable is seeing an upswing in business in which banks work with commercial businesses to map out repayment plans. Business owners are becoming more reluctant to file for bankruptcy protection particularly if they can come to terms that allow them to stay afloat in a slowly improving economy."
He further elaborated, "Even as the recession recedes, the forecasts for the rest of 2011 and 2012 paint a dim picture for small businesses seeking avenues to remain viable. The number of Maryland business bankruptcy filings is trending down from its peak of 902 in 2009 but it isn’t cause for celebration."