A college in a nearby state recently filed for bankruptcy. In addition to filing for Chapter 11 bankruptcy, the college has retained a couple of real estate companies to manage the sale of two campuses. Theywill be sold through two sealed bids. Chapter 11 bankruptcy can be helpful for businesses in the state of Massachusetts and elsewhere that are facing the challenges of having more liabilities than assets.
One of the campuses slated to be sold as part of the bankruptcy filing consist of 25 acres. This waterfront campus’s space spans more than 200,000 square feet. The property is consists of six student housing, education and administrative buildings.
The second campus is slated to be sold in the beginning of 2017. This 101-acre campus held the aviation program at the college and also included an athletic complex that was state of the art. There is also a 65,000-square-foot building that is two stories tall, along with an airplane hangar that spans 10,000 square feet and provides runway access to a nearby airport.
Sometimes an organization’s assets end up outweighing its liabilities for a variety of reasons, such as difficulty attracting customers in a fledgling economy. Filing for Chapter 11 bankruptcy in the state of Massachusetts may be helpful for a struggling business that has unsecured and secured debt and wishes to reorganize. However, it is often more complicated than other types of bankruptcy filings. A working understanding of the law may help people to navigate a complex Chapter 11 bankruptcy case and achieve the debt relief they desire.
Source: rebusinessonline.com, “Dowling College Files for Chapter 11, Plans to Sell Two New York Campuses“, Nov. 30, 2016