Companies could face financial setbacks for any number of reasons. While many businesses are able to bounce back from a setback, others are not so fortunate. As a result, they may file for Chapter 11 bankruptcy assistance in efforts to keep their companies operational. Unfortunately, additional issues could lead to filing for bankruptcy again.
Louisiana readers may be interested in an oil refinery that filed for Chapter 11 bankruptcy for the second time in less than two years. According to reports, this second filing came after an explosion at the refinery resulted in the facility having to close. Significant property damage resulted from the explosion and fire, which made it more difficult to liquidate assets. The report stated that the initial plan was to sell the refinery, but the company filed bankruptcy instead.
The information in the company’s bankruptcy filing stated that it has liabilities totaling between $1 billion and $10 billion. In 2018, the company had successfully completed a Chapter 11 case, which allowed them to restructure $635 million of debt. However, the company saw additional financial struggles after completing the case and then the fire took place, which caused insurmountable financial issues.
When financial issues strike, companies often need to act quickly and efficiently to find the best route for handling the problems. In some cases, issues may be unavoidable, and the right path could be Chapter 11 bankruptcy. If Louisiana business owners are feeling significant financial pressures and worry about creditors and the futures of their businesses, they may want to discuss their possible bankruptcy options with knowledgeable attorneys.