Many companies in Maryland and elsewhere have experienced financial struggles at some point in operation. These hardships could threaten the overall health of a business, and should they persist, the owner might find it advisable to consider exploring the benefits of pursuing relief through reorganization. A network and communications company in another state has recently emerged from Chapter 11 bankruptcy and claims that its finances were strengthened in the process.
According to reports, the company recently experienced substantial monetary issues that eventually led it to pursue relief through Chapter 11 bankruptcy. Wishing to remain open, the company sought to restructure finances while minimizing disruption to operations. After reorganizing finances and debts and liquidating certain assets, the company reportedly emerged from bankruptcy protection nearly a year later with a new strategy to improve its growth and achieve success moving forward.
In Chapter 11 bankruptcy, a company may be able to remain open for business by forming a plan to repay certain amounts of debt over a given period. In addition, a business may attempt to renegotiate leases and contracts during this time, and certain debts could also be eligible for discharge. The proposed strategy must be approved by a bankruptcy court, and a company must adhere to the terms agreed upon.
When substantial financial burdens pose a threat to the health of a company, business owners might benefit from seek guidance on how best to proceed. By speaking with a bankruptcy attorney, one could obtain advice on every available option. An attorney in Maryland can evaluate the situation and assist a client in pursuing a brighter financial future for his or her business through reorganization.
Source: zdnet.com, “Avaya emerges from Chapter 11 bankruptcy”, Jonathan Chadwick, Dec. 18, 2017