Sometimes, a Louisiana business will arrange a reorganization of finances and business structure in order to overcome a financial crisis. It may happen that after a particular debt relief process is activated, something occurs that necessitates a change in action. For example, major retailer Circuit City filed for reorganization bankruptcy nearly a decade ago but soon afterward determined that a complete liquidation was necessary.
Since then, attorneys have gone to bat for the company as it litigates various class action lawsuits and other claims that creditors have filed in the hope of collecting debt they say is owed to them. The situation has been ongoing in court for nine years now, but some insiders say it will likely end soon as only one outstanding debt claim remains at this time. To date, creditors have been able to recoup more than half in recovery.
Some may find it quite surprising that the Circuit City case has been active in court for almost 10 years. Others who understand how complex and complicated major business bankruptcy situations can be know it can take years to work through all the details to ensure a fair and comprehensive outcome for all parties involved. Where Circuit City is concerned, it reportedly took a while to locate assets that could be liquidated in order to pay back creditors.
There are often several debt relief options available to Louisiana business owners. Knowing which route to take in the best interests of a particular company can be challenging. This is where the advice and guidance of an experienced bankruptcy attorney can come in handy.
Source: richmondbizsense.com, “Circuit City bankruptcy: 9 years and counting,” Michael Schwartz, Nov. 21, 2017