Aggressive steps for dealing with financial distress

I was speaking with a friend of mine this weekend. His situation is as follows:

  • He runs a business that a year ago was doing 3MM in revenue with almost 500K in ebida. The business was growing 15+% per year.
  • He bought a big commercial building for 4MM and has 2.5MM in debt on the building.

In the last six months:

  • His business has been cut in half and ebida has been cut more than 50%.
  • He hasn't been able to rent the commercial building and is using (more) debt to keep current on payments for the building
  • Each month that goes by, he is risking bankruptcy (of one form or another).

My advice to him was as follows:

  • Meet with 3 people whom you respect and present your business plan for dealing with your personal financial crisis
  • After you get feedback, devise a plan and be aggressive in attempting to renegotiate debt with all lenders.
  • Sitting back and waiting for solutions to appear is not a good strategy ....(Nor is waiting for a tenant to rent the space)

Sound familiar to anyone you know?