Many Louisiana business owners know what it’s like to face serious financial challenges that threaten the bottom line. The good news is that most financial crises are temporary. How long it takes to rectify a particular situation often has to do with what type of approach the business owner takes with regard to debt relief solutions.
A company in another state has received state economic development loans dating back to 2009 that amount to more than $3 million. The marketing company says it has hit upon some troublesome financial times due, in part, to the economic struggles its clients (retail stores throughout the nation) are experiencing. Creditors are reportedly honing in on the company, demanding payments for debts that the company is not currently able to meet.
This is why the company filed for a special type of bankruptcy in early January. The president of the business said he is hopeful that Chapter 11 bankruptcy will hold off creditors while the company restructures its financial game plan. Without Chapter 11, the company’s president thinks the business is in danger of a shutdown.
Chapter 11 often allows business owners to retain ownership of their companies. In fact, it also makes it possible for them to keep doing business even while the bankruptcy is active. This particular marketing company has a client base of more than 3,000 and has been in business for more than 40 years.
It’s always a shame when a long-standing, successful business has to close its doors due to financial problems. Louisiana business owners who proactively seek debt relief solutions as soon as possible are often able to right their ships and stay afloat. An experienced bankruptcy law attorney is a great asset to have on hand at such times.
Source: courant.com, “Company That Got Millions In State Loans Files For Chapter 11 Bankruptcy,” Jon Lender, Jan. 23, 2018