The Anatomy of a Soft Landing

Nov 11, 2024

11/11/24

A playbook-style breakdown of what it really means to avoid a crash. This article will walk leaders through how to create a structured, strategic path out of distress — showing what a “soft landing” looks like in practice, and why it matters more than ever in places like Florida and New York where filings have increased post-COVID.

The Anatomy of a Soft Landing

When your business hits turbulence—plunging revenue, tightening cash flow, strained vendor relationships—it’s natural to fear the worst. But distress doesn’t have to end in a crash. With the right strategy, timing, and mindset, it’s possible to execute what restructuring professionals call a soft landing: a controlled descent into a position of stability, from which recovery is possible.

At White Knight Restructuring, we specialize in creating soft landings for companies in free-fall. Whether you’re in Miami, Manhattan, or Newark, the approach is grounded in practical steps and leadership clarity—not panic moves or courtroom defaults. Here’s what that looks like.


Step 1: Acknowledge You’re in Distress

Denial is the most expensive stage of corporate decline. A soft landing begins with leadership acknowledging that the business is in financial distress—even if it’s still operating.

You may still be making sales, paying rent, and fielding customer calls, but if:

  • You’ve missed payroll or delayed vendor payments

  • You’re drawing on high-interest loans to stay afloat

  • You can’t forecast more than a few weeks ahead

…you’re already in distress.

In 2023, business bankruptcy filings in Florida, New York, and New Jersey rose by over 15%, particularly among small to mid-sized companies. For 2024, the trend has intensified nationally, with total commercial bankruptcy filings increasing significantly, and regional data suggests Florida, New York, and New Jersey likely followed suit. Nationally, business filings rose 17% to 30,000 for the full year of 2024. Many of these businesses delayed acting until liquidity ran out—and by then, their options were few. Acknowledging distress early is the foundation of a soft landing.


Step 2: Build a 13-Week Cash Flow Model

A soft landing is only possible with visibility. The cornerstone of that visibility is a 13-week rolling cash flow forecast—a week-by-week breakdown of what money is coming in, what’s going out, and what’s left.

This tool allows you to:

  • Understand your true runway

  • Prioritize payments (e.g., payroll, taxes, critical vendors)

  • Buy time to think and negotiate

Without it, you're flying blind—and that's when crashes happen.

At White Knight, we work directly with companies to build this model quickly, clearly, and with leadership buy-in. This isn’t just a spreadsheet. It’s a survival map.


Step 3: Stabilize Stakeholder Relationships

In distressed scenarios, your relationships become your lifelines. That includes:

  • Vendors: Can payment terms be extended?

  • Lenders: Will they support a forbearance or restructure?

  • Landlords: Is temporary rent relief possible?

  • Customers: Will they prepay or speed up payments?

Early, honest communication with these stakeholders is essential. In many cases, they’ll prefer helping you land softly over the uncertainty of a bankruptcy or liquidation.

Rather than referring you out to law firms or third parties, we guide and manage these conversations as part of your overall strategy. You stay in control—we help you hold the reins.


Step 4: Evaluate Restructuring Options Before You File

Filing for bankruptcy—whether Chapter 11 in New York, Chapter 7 in Florida, or any other route—is not a first step. It’s one of many tools available to distressed companies.

Before filing, we help clients evaluate:

  • Out-of-court workouts

  • Bridge financing

  • Debt renegotiation

  • Voluntary operational right-sizing

Every jurisdiction—from the complex courts of Manhattan to the streamlined filings in Florida—has different implications. We factor these into your overall game plan.

We don't just prepare you to file. We prepare you not to need to, unless it’s truly the best path forward.


Step 5: Define Your Post-Landing Plan

Stabilization isn’t enough—you need a plan for what happens after. A soft landing should lead to a viable, sustainable business model. That could mean:

  • Shedding non-core divisions

  • Changing pricing structures

  • Renegotiating debt under a formal plan

  • Bringing in strategic capital

White Knight Restructuring helps you design this recovery plan—not just from a financial perspective, but an operational and strategic one.


The Cost of Waiting

Increased bankruptcy filings in the past 18 months across New Jersey, Florida, and New York signal a reality: distress is everywhere, but so are recovery opportunities—if you act early. A company that engages restructuring advisors while they still have cash flow, vendor trust, and time can usually avoid the worst outcomes.

But those who wait often end up paying more—both financially and reputationally.


Final Thoughts: You Can Still Land This

A soft landing doesn’t mean everything goes perfectly. It means you remain in control of a tough descent. It means you protect the company’s core while discarding what’s weighing it down. It means you have a plan—built with strategy, not panic.

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