Natural disasters that occur in Louisiana or elsewhere often have negative effects on local businesses, homeowners and other segments of society. For instance, if a town is flooded, local merchants may suffer financial hardship or find themselves unable to stay in business due to aftereffects of the storm. For some business owners, even insurance benefits or fund-raising efforts may not be enough to get things back on track after disaster strikes. Those who execute solid debt relief plans may be able to lay the groundwork for restored financial stability down the line.
Many readers have been following the news regarding recent wildfires on the West Coast. The situation has caused unfathomable damage and has left many businesses facing insurmountable economic obstacles. A utility company that happens to be one of the largest in its state has reportedly been unable to stay afloat in light of tens of billions of dollars in projected damages in the aftermath of the fires.
The company has determined that declaring solvency is the most viable option to overcome its current financial crisis. It has estimated that insurance claims filed by customers whose families have suffered loss of loved ones as well as complete destruction of their homes would likely result in liabilities exceeding $30 billion. The company employs 20,000 workers and covers a service area of 70,000 square miles.
The chief executive of the utility company recently resigned. Shortly thereafter, the debt relief plan was activated through a petition for bankruptcy, beginning with a required 15-day notice to its employees. Approximately $5 billion is reportedly available to help the company continue operations as it navigates the bankruptcy process. An experienced Louisiana bankruptcy law attorney can provide guidance and support to any company owners in this state experiencing similar financial crises in the aftermath of a natural disaster or other problem situations.