Economic turns, popularity trends and numerous other factors can impact the financial success of businesses. In some cases, companies may do well for a considerable amount of time, but later find that their numbers are not as good as they used to be. It is not unusual for serious financial hardships to result, and companies may need Chapter 11 bankruptcy help.
Louisiana readers may be interested in a bankruptcy petition that was recently filed by LBI Media Inc. The company is a Spanish-language media company that includes 10 television and 17 radio stations throughout the country. However, the company has been struggling financially, but management had hoped that the business could continue running without having to file for bankruptcy. Nonetheless, the company made the decision to opt for Chapter 11 assistance.
Reports indicated that the media company is facing approximately $530 million in debt. Litigation with lien holders was cited, along with a decline in advertising revenue and changes in viewership as contributors to their financial difficulties. Two liens against the company were reported as being $233 million and $262 million. The company has been in business for 30 years and hopes that the bankruptcy will help to improve its financial circumstances.
It can be immensely disheartening for businesses to come under significant financial strain. They may feel they have no options for relief, but Chapter 11 may be able to help qualifying businesses with their outstanding debts. Louisiana business owners may find it useful to gain information on this debt relief option if they are struggling with significant financial issues within their companies.