Residents of Tyler, Texas, would agree that each company or individual that starts a business aims to earn profits and expand. Many of them even use credit and other available facilities to expand their businesses.
However, certain unforeseeable situations, such as a recession, or wrong business decisions, can impact a business in a big way. Those companies that are in debt might find it tough to sustain and stay relevant. In these circumstances, many companies are left with just one option -- to seek business reorganization through Chapter 11 of the Bankruptcy Code.
A bankruptcy petition filed under Chapter 11 is typically known as reorganization bankruptcy. It is designed to reorganize a business and under Chapter 11, a debtor proposes a reorganization in order to keep the person's business going while paying creditors over time. An individual may also file for bankruptcy under Chapter 11.
Houston-based Global Geophysical Services Inc. had filed for bankruptcy about a year ago and has now emerged from Chapter 11 bankruptcy. Reports stated that company's Chapter 11 plan was accepted and confirmed by an order that was issued by the U.S. Bankruptcy Court Judge on Feb. 6. Reports stated that Federal court records showed that the plan under Chapter 11 of the Bankruptcy Code was consummated on Feb. 9.
In a statement, the company's CEO thanked company's lenders for their support that made it possible for the company to emerge from Chapter 11 bankruptcy. The CEO also stated that the company has reduced its debt by approximately $250 million and that the new financial profile has given the company a solid financial foundation to sustainably operate and expand.
Source: San Antonio Business Journal, "Global Geophysical Services emerges from Chapter 11 bankruptcy," Sergio Chapa, Feb. 10, 2015