There is an all-too-common understanding in business here in Tyler and throughout the country that bankruptcy is the end of the line. Certainly, when business profits shrink, operations struggle and debts take over, something will need to change. But when that change is achieved by filing for Chapter 11 bankruptcy, the business does not necessarily have to call it quits altogether.
Take the example of the once-major renewable energy player SunEdison. Major spending on acquisitions, coupled with multiple lawsuits and a nosedive in stock prices, lead the company to file for Chapter 11 bankruptcy in early 2016. Through the Chapter 11 process, SunEdison sold off over $2 billion in assets. This enabled it to reach settlements with its numerous creditors and other parties with a financial stake in the company.
The company has recently concluded its Chapter 11 bankruptcy. Admittedly, it is much smaller than it used to be, and is now privately held. But now freed from its debts, the company can focus on some key assets that it was able to retain as it seeks to return to profitability.
Reorganizing through Chapter 11 can offer an incorporated business — whether a major corporation or a small business — a new lease on life. Unlike other forms of bankruptcy, not all assets are liquidated, but creditors are held at bay while a plan is developed to reorganize and get back to business. A bankruptcy professional can help business owners develop a plan and complete the necessary steps to emerge from Chapter 11 bankruptcy with a fresh financial start.
Source: North American Wind Power, “SunEdison Completes Reorganization After Chapter 11 Bankruptcy,” Joseph Bebon, Jan. 2, 2018