In the course of operating any type of business it is possible that financial difficulties could arise. Regardless of why this happens there are multiple ways in which the matter might be addressed. In some situations, filing for Chapter 11 bankruptcy could be a good option.
As we discussed in a previous post, in the course of a Chapter 11 bankruptcy, the debt of the person or business filing, is reorganized. That debt is then repaid over the course of a period of time. To use this method the filer will need to demonstrate that it will be financially stable throughout the process of the debt repayment. The way in which that stability will be accomplished varies depending on each situation.
A commercial laundry service, with a location in Massachusetts, recently filed for Chapter 11 protection. In addition to restructuring its debt, Coyne Textile Services indicated that it will sell several of its sites, including the one located in Massachusetts. It plans to keep its other sites open. The sale of the site in Massachusetts, as well as two others, is likely part of what will make the continued operation of its other sites, possible.
In any bankruptcy proceeding it is possible that many creditors could be involved. Generally the more involved, the more complex the matter becomes. Because a Chapter 11 bankruptcy can be complicated, it is important that the business or individual seeking protection via the filing works with a bankruptcy lawyer that is well versed in the subject.