Beef processing company files for Chapter 11 bankruptcy

A beef company based in another state recently determined that its financial problems needed to be tackled in an aggressive manner. For this reason, the company decided to file for Chapter 11 bankruptcy protection. According to company officials, the move will help with facilitating the company’s ongoing process of selling its assets, and ensure that both its employees and its creditors will be treated fairly. Likewise, Massachusetts companies that are struggling to make ends meet can seek help through bankruptcy filings.

The company processes about 270,000 cattle from around 30 feedyards each year. The beef-processing business also employ over 700 workers. The company distributes its products domestically but also exports products to other countries.

According to the company’s bankruptcy filing, the company owes money to anywhere from 100 to 199 creditors. In addition, its assets total $50 million to $100 million, whereas its liabilities are anywhere from $50 million to $100 million. The beef company can keep operating as it restructures itself financially. In addition, the company can void many contracts as part of the bankruptcy filing process, including leases for real estate and agreements with suppliers and unions.

Sometimes, economic conditions end up putting a damper on a company’s finances in Massachusetts and elsewhere, causing its liabilities to overwhelmingly outweigh its assets. Fortunately, Chapter 11 bankruptcy protection can help to put struggling businesses, both large and small, back on the path to financial health and profitability. An attorney can help business owners who are having a hard time financially to explore the Chapter 11 bankruptcy filing process and complete it with confidence.