1) Flexibility and adaptability
2) Ease of negotiation
5) Less damaging to reputations
6) No changes in management
7) No changes to rights of parties
8) Lower cost
9) Lack of regulatory consequences
However, because informal workouts do not have the same kinds of regulatory consequences, debtors will not necessarily run the risk of being unable to do business following the restructuring proceedings. This factor may have considerable influence over a debtor company’s decision to use an informal workout rather than formal bankruptcy to resolve its financial difficulties.