[Case Study] Atlantic Worldwide Shipping Saved Through Chapter 11 Reorganization

E.J. Simonsen | Sep 26, 2023

Atlantic Worldwide Shipping LLC faced substantial challenges in effectively managing their cash flow, which ultimately led to the accumulation of significant debt. Unable to maintain their operations under the weight of this heavy debt burden, Atlantic sought the guidance and expertise of The Lane Law Firm to assist in restructuring their debt and ensure the continuity of their business activities.

RESULTS: 60% debt eliminated  |  $1,266,302 saved    


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Atlantic Worldwide Shipping LLC is one of the leading freight forwarders in the USA, offering domestic and international shipping services in one convenient place.

Like many shipping brokers, Atlantic's financial stability is crucial for their operations. They rely heavily on receivables as their primary assets, leaving them vulnerable to cash flow gaps caused by delayed payments or other financial disruptions. In 2021, Atlantic had several creditors put liens on Atlantic's accounts receivable. This severely limited Atlantic's ability to access the crucial capital it needed. As a result, Atlantic was in dire need of help just to stay in business.

The Problem: A Complex Case with Millions Owed to Creditors

When Atlantic Worldwide Shipping turned to The Lane Law Firm for help, they faced a towering wave of over $2 million dollars in near-term debt payments and a multitude of aggressive creditors all of which threatened to sink the company for good. These aggressive creditors had filed lawsuits across multiple states, making the situation more perilous. This mounting tide consisted of former employees, merchant cash advance lenders, factoring companies, the SBA, and a traditional lender that had filed a federal lawsuit. Atlantic desperately needed The Lane Law Firm's experienced help to steer the company to safety. Not only did jobs need safeguarding, but the very survival of Atlantic's operations hung in the balance.

The Solution: A Strategic Plan for Reorganizing under Chapter 11 Bankruptcy

The complexity of Atlantic's case wasn't anything The Lane Law Firm couldn't navigate. At first, the client was only generally aware of the potential benefits of bankruptcy for their business. During the initial consultation with The Lane Law Firm, Atlantic received invaluable guidance on the complex bankruptcy process and the possible outcomes it could deliver. While Atlantic's case was more complicated than a standard Chapter 11 Subchapter 5 bankruptcy filing, The Lane Law Firm recommended this course. They knew it provided the best way for Atlantic to maintain operations and reduce debt. Critically, it also addressed Atlantic's top concern - having enough cash flow during and after the reorganization process.

Recognizing the importance of experienced crew, Atlantic understood that bringing a seasoned bankruptcy attorney aboard was key to ensuring their business stayed afloat survival of their business operations.

The Lane Law Firm quickly developed a step-by-step plan, navigating through claim objections, litigation settlements, and amending the plan three times. Regular communication and updates provided reassurance to Atlantic, addressing their concerns and ensuring a smooth process. This collaboration provided a crucial safeguard against the cash lienholders.

Additionally, proactive negotiations were conducted with an aggressive major creditor to prevent the ongoing litigation from escalating. By strategically prioritizing key creditors, The Lane Law Firm skillfully crafted a consensual reorganization plan that effectively tackled Atlantic's financial challenges.

The Results: The Lane Law Firm Eliminated Over $1.2 million in Debt

The Lane Law Firm successfully chartered a course that led to a confirmed reorganization plan for Atlantic Worldwide Shipping. This strategic route resulted in the immediate discharge of over $1.2 million in debt for Atlantic, including the conversion of $292,861 of secured debt into unsecured debt and the elimination of a staggering 94.9% or $776,322 in merchant cash advance debt. Not only did this plan save Atlantic from capsizing, but it also paved the way for smoother sailing, allowing them to manage their cash flow and repay a reasonable portion of their outstanding debt.



The Lane Law Firm played a pivotal role in Atlantic Worldwide Shipping's success by providing dedicated legal counsel and guiding the client through the complex Chapter 11 Subchapter 5 Bankruptcy process. The firm's strategic approach and effective negotiations with crucial creditors resulted in a confirmed reorganization plan that significantly reduced Atlantic's debt burden and kept the business operating.

The Conclusion: When Struggling With Debt, Seek Professional Help

When a business is floundering under unmanageable debt and facing potential closure, it's crucial to know that safe harbors exist. As this case study demonstrated, Chapter 11 Subchapter 5 Bankruptcy provides a lifeline - a chance to restructure debts and steer towards a more profitable future.

Though the word "bankruptcy" may seem intimidating initially, these laws allow businesses to reorganize, regain their footing, and thrive again. So don't delay in seeking wise counsel. With the right support, your business can stay afloat through whatever financial challenges lie ahead.

If you are facing towering debt or overwhelming odds contact the The Lane Law Firm today! 


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