Bankruptcy and restructuring processes are becoming more and more common due to the financial problems of many companies due to the coronavirus and worldwide quarantine. For this process to be possible, a whole team of lawyers will be required to study a large volume of documents, which naturally takes too much effort and time. Virtual data rooms for bankruptcy help make these processes more efficient, speed up and simplify the work of lawyers, and more. In this article, we’ll take a closer look at VDRs for bankruptcy.
What are bankruptcy and restructuring?
Bankruptcy is a legal process that involves businesses that do not have the ability or means to pay their debts. It usually begins with a petition by the debtor or creditors.
During the bankruptcy process, a team of bankruptcy attorneys analyzes and evaluates the assets of the business to see if there is any chance that they can cover the debts of the business. Bankruptcy can be of different types, but they all equally require work and a lot of paperwork.
When a company decides to drastically change its business system to improve its efficiency, this process is called restructuring. During a restructuring, there is a review and analysis of the management and organization of the business, as well as the creation of reconfigurations or changes to business units that previously had no benefit to the company.
Business owners need to have the process happen as quickly as possible so they can continue to work on growing the company and doing other business transactions.
The main problem with bankruptcy and restructuring
During the bankruptcy and restructuring process, the main problems you may encounter are administration and paperwork. Speed and security are what are most appreciated. The company needs to provide the necessary due diligence documents promptly to ensure the process runs smoothly and efficiently. Fortunately, there are virtual data rooms that can address all of these issues and improve the overall productivity of the process.
How Data Rooms Simplify Bankruptcy and Restructuring
Below we describe the key features of a virtual data room for bankruptcy and restructuring that will help you during these processes. VDR provides the following features:
Data Rooms have advanced document management features. They allow you to easily and quickly place documents within a space, use automatic indexing to help you organize your folder and subfolder structure, as well as smart search features and more. Prepare all the materials you need in the blink of an eye with minimal effort.
VDR Space is cloud-based and provides 99.95% uptime. In addition to being extremely nimble to use, the tool itself also uses tools to speed up your work and the entire process.
Virtual data rooms are some of the most secure and protected spaces for storing and sharing sensitive data today. They provide many useful options that provide not only resilience against external threats, but also protection against data leakage. These features include data encryption, dual authentication for password protection, granular access, and interaction permissions, watermarks, and user-tracking features.
When bankruptcy or restructuring occurs, companies have strictly limited budgets. VDRs help reduces costs, but also provide an efficient solution and save time.
- Improved Communication
VDRs allow you to communicate with your colleagues or clients in a completely safe environment. Discuss whatever you need to without fear or risk. Data rooms have a question and answer section in the document for this purpose. This way you reduce the chance of misunderstandings that can arise during the document review process, allowing you to respond quickly and connect.