When a business runs into challenging financial situations, it has several options available. One option is to file bankruptcy, although there are several types of bankruptcies to choose from. If a company wishes to remain in business, the company may want to consider a Chapter 11 bankruptcy. This is what one company recently did and is now working with an investment banking firm in Maryland to help with its reorganization.
The company, Prime Choice Foods, is working the with investment firm in order to find an investor, partner or buyer for the company. The president of the company is hoping to come out of bankruptcy with adequate capital necessary to continue operating. He says customers and vendors have been quite supportive of the company during this challenging period.
Prime Choice Foods is a family-owned company that produces various types of snack products, which are mostly corn-based. Prime Choice Foods offers natural, organic and baked items and is known as a leader in the market for manufacturing products for various private labels. These private labels are owned by various national grocery chains as well as specialty retail locations.
However, in order to complete the Chapter 11 bankruptcy reorganization process in Maryland or in any other state, a business owner or executive will need guidance in dealing with the applicable laws and court procedures. The correct legal paperwork must be prepared in a proper manner in order to fully take advantage of the protections and opportunities offered through the Bankruptcy Court. Additionally, other legal issues may arise which could require additional litigation in court.
Source: TriCities.com, “Prime Choice Foods files for bankruptcy protection”, David McGee, July 2, 2014