Texas businesses that run into financial trouble will often consider filing for bankruptcy to get debt relief. Knowing which form of bankruptcy to choose from the several alternatives depends on the individual circumstances. A business bankruptcy has options just like a personal filing does. Filing for Chapter 11 bankruptcy can help those who are in business debt move forward with their lives. When filing for Chapter 11, it is imperative to know the pros and cons about the process.
A recent report notes that a buffet company that is in Chapter 11 bankruptcy would like to pursue a liquidation of its assets so it does not have to go through extensive court proceedings. Those assets total more than $130 million. The company and its affiliates have asked the judge to sign off on the plan, in which it will auction off its land as well as other assets, like furniture, equipment and intellectual property. The plan is set to be heard in early January. Initially, the company's intention was to keep operating while closing more than half of the 300 locations it has. However, it is now thought that the best method to pay the highest amount to creditors is to liquidate.
The unsecured creditors have lodged an objection to this sale saying that it is not for the good of the creditors, but to get as much money as possible to those who are inside the company and would buy the assets cheaply without officers for the company facing scrutiny. The assets are said to be valuable and the creditors have stated their displeasure at the plan. The initial Chapter 11 filing came in March of 2015. It said that the company had $105.2 million in liabilities and $133 million assets. The liabilities might rise as some former employees might be eligible to be compensated under the Fair Labor Standards Act.
It is these types of plans and allegations that make it necessary to have the right information when seeking debt relief through a Chapter 11 business bankruptcy. Those who are experiencing financial struggles need to understand how bankruptcy can help them get back on stronger ground.
Source: mysanantonio.com, "San Antonio-area buffet operator, in bankruptcy, wants to liquidate $130 million in assets," Joshua Fechter, Dec. 8, 2016