VDR for Insolvency, Bankruptcy & Restructuring

The legal process that involves businesses that are unable to repay their debts is called bankruptcy. It usually starts with a debtor’s petition, or less commonly with creditors. During the bankruptcy process, business assets are valued as they may be used to repay debt. There are different types of bankruptcy, but all of them require filing a lot of documentation.

The restructuring process is when the company decides to change the organizational system to increase the efficiency of business operations. Restructuring usually involves inspection and analysis of the business organization and creating reconfigurations or changes in business units that don’t bring much value to the company. When the company goes through a restructuring process, everyone wants to complete it quickly to focus on other business operations and growth initiatives.

Managing and executing insolvency and restructuring processes can be particularly complex and is an herculean task. Intricate procedures and time sensitive deadlines can be difficult to meet, especially when managing hundreds of thousands of documents that require controlled disclosure to a broad range of entities and individuals such as creditors, trustees, lawyers, committees, banks and advisers. Already used for confidential business processes such as mergers and acquisitions and commercial real estate transactions, virtual data rooms (VDRs) are becoming increasingly popular as a means to manage and share critical information and streamline workflows.

The benefits for bankruptcy and restructuring through DocullyVDR include:

• Secured Central Deal Repository – DocullyVDr enables maintaining a secured central deal depository
• Reach More Buyers in less time
• Anytime, Anywhere, Any Device secure access
• Organizes documents for due diligence

With DocullyVDR, you can set specific notifications for individual documents based on your needs. Features like adjusting the user permission options help you to control data accessibility. On dashboards, you will see all of the activity on documents, to easily track the processes and who’s viewing the documents.

• Ensures data storage security

An extremely important aspect of VDR is security – as you are sharing confidential information. Nowadays, data breaches are quite common, that’s why making sure your VDR provider is trustworthy and compliant with security regulations is crucial.

• Saves money on the processes

During the delicate restructuring process or bankruptcy, businesses are on a strict budget. Virtual data rooms help to reduce costs by increasing efficiency, thus saving time.

• Enhances team communication

VDRs allow you to communicate with your team directly, using Q&A features or comment features in the document. This helps to avoid misunderstandings that may appear throughout the process. You will save a lot of time, as the communication features in data rooms eliminate double work.

• Creates separate debtors and creditors Data Sets
• Maintains audit trails of access history
• Helps gauge Buyer’s Interest

DocullyVDR provides the necessary efficiency and security, which companies can use for optimizing processes. They are thus becoming more popular as more businesses start to recognize it’s technology and its cost-effectiveness.