When businesses in Maryland and across the country choose to expand operations, the prospect of new ventures can be exciting, but also intimidating. A similar process could require a significant investment, perhaps with little to no guarantee of success. Should these ventures not go according to plan, a business could be facing periods of hardship, potentially sparking a need for financial reorganization.
A regional airline in another state is experiencing similar difficulties, and has recently decided to discontinue flights in certain areas in an attempt to reorganize its finances. The company says these flights did not turn out as intended, and it needed to cut costs as a result. Financial losses over the past year have reportedly led to significant debts, and the company recently filed for protection via Chapter 11 bankruptcy.
Chapter 11 bankruptcy can provide a business with protection from creditors, while allowing it to remain open for business. This process can give a company time to restructure finances and form a plan to repay debts over a given period. While this could bring about a need to discontinue certain services, a company may be able to focus on profitable areas in an attempt to regain success and protect its longevity.
When facing dire financial straits, a business may wish to protect its future by exploring the benefits of financial reorganization through Chapter 11 bankruptcy. With numerous crucial areas to cover, seeking guidance from an experienced attorney could prove beneficial. An attorney in Maryland can provide advice on the available options and assist a client in pursuing the best outcome possible through the necessary channels.
Source: adn.com, “PenAir in bankruptcy court for Chapter 11 reorganization, but it says Alaska operations will continue”, Suzanna Caldwell and Alex DeMarban, Aug. 7, 2017