Running a business is a significant financial risk. Many Louisiana business owners feel ready and willing to take this risk in hopes of having a successful venture. Unfortunately, not every business operation proves successful, and a considerable amount of debt may be accrued. As a result, companies may need to file for Chapter 11 bankruptcy.
It was recently reported that the owners of a hotel-condominium project in another state filed a bankruptcy petition due to outstanding debts. Apparently, renovations on the project had been put on hold three years ago, and the goal of the bankruptcy filing is to remove liens and other legal issues against the hotel project in order to sell the building. The proceeds from that sale would then go toward repaying creditors.
In regard to the company’s debts, it was reported that approximately $31 million is owed to creditors, and around $27 million is owed due to a lien against the hotel. Another $83 million is associated with unsecured claims made against the company. The report stated that the company’s assets are approximately $16.45 million, and the majority of those assets are connected to the hotel-condo building and land.
When business debt issues become overwhelming, filing for Chapter 11 bankruptcy may be the best option for addressing those liabilities. If Louisiana business owners are struggling to confront their financial issues, they may want to gain more information on this option. Fortunately, they do not have to face these issues alone and may want to consider enlisting the help of knowledgeable bankruptcy attorneys.