Running a business can be both an exciting and stressful endeavor. While there can be some good times where a business is profitable, when the debts accumulated far exceed the value of the company, financial and operational problems can arise. In order to get through financial troubles and secure debt relief, a business may want to consider pursuing the bankruptcy process.
It was recently reported that the AAF is seeking bankruptcy protection. The control owner of the potential developmental league for the NFL announced that they filed for a Chapter 7 bankruptcy. At this point, the AAF has ceased all business operations and the liquidation process has begun.
Based on the bankruptcy filing, the financial damage is significant. This document details that the AAF has accumulated more than $48 million in liabilities, with more than $38 million of it being in unsecured claims. In contrast, the AAF has only $11.3 million in assets and just over $500,000 in cash.
While the AFF is committed to making sure that the bankruptcy process moves forward in an efficient manner, it was reported that the AAF is also facing various lawsuits with the potential for more down the road. This factor could complicate the process, but through the bankruptcy process the AAF hopes to resolve all financial matters.
Filing for bankruptcy is not an easy step to take. However, when a business seeks to get out of the hole, it is important to understand how bankruptcy can be a valuable step to take. Whether it means erasing debt or maintaining an operational business, it is imperative to understand this process and what steps one might take to address their financial troubles.