Adam Friedman Associates - Crisis management

AFA advises clients facing Chapter 11 reorganization proceedings using a four-stage approach to communications:

In the days or weeks preceding a Chapter 11 filing, a company should be preparing to address the questions and concerns of its key constituencies, particularly its employees and key vendors, as well the media, lenders and other creditors. In this hectic time, when management's time is limited and its attention divided, our professionals handle key communications tasks and provide clarity of purpose. Among other things, we will prepare the company for the wave of inquiries from key constituencies and the media by preparing press releases, web site content and communications to employees, vendors, landlords, etc. We also help the company establish call centers and email addresses as a means to disseminate information and respond to inquiries. If necessary, we will counsel the company's management team on dealing with the media and interview techniques. All of this is done to prepare the company for the initial flood of communications needs that will result from the Chapter 11 filing.

From a communications perspective, this is the most critical time in a Chapter 11 proceeding. If a company is able to communicate effectively during the days immediately following the filing, it can greatly mitigate the initial shock to a company's operations and smooth the transition into the Chapter 11 phase. Accordingly, the consistency of corporate communications is of paramount importance. We will work diligently during this frenzied period to implement the communications strategies developed in the pre-filing phase and allow the company's management and legal and financial advisors to focus on stabilizing the business. At the same time we will work in concert with the other professionals so that a consistent message is being delivered by the company on all fronts.

In most cases, once the initial stages of a Chapter 11 case are complete, a company will begin to restructure its business and develop a long-term reorganization strategy. During this phase, we will work to ensure that the corporate communications strategy highlights the reorganization efforts and the successful steps taken by the company to maximize the value of its assets. Effective communications with the media and official and unofficial committees of creditor constituents can facilitate the reorganization efforts and attempts to gain court approval on key initiatives. We recognize the added importance during this phase of working closely with the other retained professionals so that the reorganization strategy and accomplishments are publicized appropriately.

When the time comes for the debtor to file its Plan of Reorganization, a company should be keenly aware of how its corporate communications may impact negotiations with key constituents and the legal process of seeking and obtaining bankruptcy court approval of the Plan. We will work in conjunction with management and legal and financial advisors and provide communications support to the process of seeking and obtaining court approval of the debtor's disclosure statement and plan of reorganization. Again, a company's corporate communications can be a valuable tool to help facilitate that process. Since the plan negotiation and approval process can often take several months to complete, we are conscious of and attentive to the need to modify a debtor's communications strategy during this time to reflect the ever-changing dynamics of plan negotiations.