There are a range of legal restructuring tools or procedures that can assist the company to find a viable solution in order to keep operating those growing concern or to help creditors maximize their recoveries. These legal mechanisms vary considerably from one jurisdiction to another, but they share some common features.

Bankruptcy petitions. These can be filed in court by the debtors, which is referred to as a voluntary bankruptcy or creditors, which is called an involuntary bankruptcy. They request that a company enters the process of either reorganization or liquidation once accepted by the court, the reorganization or liquidation processes may be led by the company's directors or an administrator depending on the process being used. In some instances, the company and its directors retain control of their fate and continue to negotiate with accreditors and to work on the plan that will ultimately be judged by the courts. These can be called debtor in possession processes and have minimal court involvement. Alternatively, an administrator or liquidator might be appointed to oversee the company. The administrator takes control of the day-to-day operations of the company and has a wide range of powers, including being able to renegotiate contracts, sell assets, or fire employees, all with the aim of maximizing recoveries to creditors. On the other hand, liquidators focus is on disposing the company assets to return proceeds to the creditors. The role of the administrator and the liquidator can be performed by the same party or person.

Standstill on creditors' claims. In some of these processes, once a court approves the bankruptcy request, there is an automatic stay on creditors' claims to prevent enforcement action from creditors. When this stay is in place, creditors are prevented from trying to collect debts or exercise their security to put it simply to seize assets.

This stay will be in place until court proceedings are finalized, and creditors may face legal action if they fail to comply with the state order. Binding dissenting parties to a restructuring. In some jurisdictions, these tools may allow for any proposed reorganization plan to be binding on all affected parties, including dissenting creditors, wherever they are in the capital structure, and shareholders if it's clear that the affected parties would be no worse under the reorganization plan.

The purpose of this is to unlock potential legal challenges that could be launched by minority investors who are against the deal or who are just trying to get a better deal for themselves.