Companies that have been operating for decades are not immune to serious financial difficulties. In some cases, Louisiana businesses may have been operating well despite the debt liabilities they held, but a sudden financial blow could cause their circumstances to become unmanageable. As a result, they may file for Chapter 11 bankruptcy for help.
This type of scenario recently befell a company operating out of another state. According to reports, Just One More Restaurant licenses the name of several restaurants in and out of the country. However, a recent dispute regarding Palm Steakhouse resulted in financial woes for the company. A lawsuit was filed in which minority shareholders for the restaurant claimed that they had been cheated out of royalties for 40 years. The judge in the case ruled in favor of those shareholders, and as a result, the company was ordered to pay approximately $120 million to those individuals.
The ruling recently led the company to file for Chapter 11 bankruptcy protection. It was noted that the company has fewer than 50 creditors and that its current debt liabilities range between $10 million and $50 million. Executives for the company hope that they will be able to negotiate a settlement regarding the payout to the minority shareholders.
Taking the step to file Chapter 11 bankruptcy is a major decision. However, many companies benefit from the help that bankruptcy can provide. If Louisiana business owners are facing significant financial struggles, they may want to speak with experienced bankruptcy attorneys about their possible options for addressing their outstanding liabilities.