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Senior Contributor

Chapter 11

Saw on the other forum about a large operator filiing chapter 11, is there any coming back from that. I'm not too up to date on bankruptcy law.
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6 Replies
Senior Contributor

Re: Chapter 11

Was it a livestock only operation. Otherwise how could anyone go bankrupt with the markets we have had the last few years. The laws did change a few years ago. I'm not sure if they made it harder to start over or not.
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Honored Advisor

Re: Chapter 11

It is easy to Google any term like "Chapter 11 Bankruptcy" and find tons of informative articles.  Asking if a business " can go on" is sort of like asking if a bad marriage can be fixed...the question becomes whether or not one would want to.  

 

Protection from creditors is the main goal of any bankruptcy filing, as I understand it.  It stops a lot of collection tactics in their tracks.  If the business can re- organize and move forward with this weight hanging on its reputation, the filing can buy time and forgiveness of debts, or structured repayments under terms different from the original contract with the providers  of goods and services.   

 

We have all seen examples of business bankruptcies where the entity just opened shortly thereafter under a new name and kept going along as if not much had happened.  

 

 

 

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Re: Chapter 11

Yes, it is a reorganization type, like 13 for individuals.

 

Of course it will require the judge's approval of a reorganization plan.

 

Looks like the lawyers (a top flight firm) have things all worked around- a different, related organization filed the same day and shows less than $1 million in assets and more than $50 million in liabilities- good luck on reorganizing that but I assume they dumped as much of the debt there in order to try to come out with the other entities.

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Senior Contributor

Re: Chapter 11 Buck

I'm betting that the poor fella rented the margin out of it.
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Mark (ECIN)
Senior Reader

Re: Chapter 11

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Veteran Advisor

Re: Chapter 11

Reading thier  "  Mission  Statement " on thier website is quite interesting - like most word smithing ---    

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