Owning and keeping a Louisiana business afloat is definitely not for the fainthearted. While there’s a natural ebb and flow that occurs with most businesses; a cycling of profitable times with fiscal seasons that aren’t as successful. There are also many other challenges that can unexpectedly occur to make or break a business. Sometimes, business owners make decisions to liquidate their assets as a means of seeking immediate debt relief when they can’t seem to get things back on track. A business in another state has determined that Chapter 7 bankruptcy is its most viable option.
The construction management company reportedly owes debts to hundreds of creditors. Its assets are currently estimated between $100,000 and $500,000. However, the company’s current liabilities are in the tens of millions.
A spokesperson for the construction management business said the company has enjoyed more than 25 years of successful business, but it has made an informed decision that what is best for it at this time is to file for Chapter 7 bankruptcy and close its doors. Some may assume that such measures equate with business failure. To the contrary, prudent business owners often choose such options as means to restore financial stability and move forward to new beginnings and potential future profitability in other business endeavors.
The construction company has been a subsidiary business of a larger corporation, whose representatives have successfully served clients for more than a century and plan to continue doing so. Chapter 7 bankruptcy will allow the construction subsidiary to fully liquidate its assets, using those funds to satisfy all debt and prevent any form of debt collection litigation against it. Louisiana business owners who wish to explore such options may reach out for support from experienced debt relief attorneys.
Source: virginiabusiness.com, “Thahimer subsidiary MGT Construction files for Chapter 7 bankruptcy“, Feb. 22, 2018