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Plastics company files for Chapter 11 bankruptcy

A plastics company in another state recently decided to file for bankruptcy. Its Chapter 11 bankruptcy filing comes as the company finds itself with more liabilities than assets. A company in Massachusetts that is struggling with large amounts of debt may be able to take advantage of this type of bankruptcy protection, which can offer benefits long term.

In the case of the plastics company, the company has a large plant in another state that remains unfinished. The billion-dollar plant was in the last stages of a project spanning 412 acres. However, according to court filings, the company had been struggling financially for a large part of the year.

Based on the bankruptcy filing, the company's liabilities may total as much as $500 million. In addition, the plant is under 85 percent finished. The construction of this plant started back in April of 2013, and it was slated to be completed in December of 2015. According to the company, the construction delays stemmed from unanticipated construction costs and disputes with construction and engineering firms that led to $196 million in mechanics' liens. In addition, Hurricane Harvey adversely impacted the project when it slammed through the region.

Sometimes companies in Massachusetts and elsewhere find themselves in financial trouble due to a struggling economy or other factors beyond their control. Fortunately, Chapter 11 bankruptcy may help them to get onto paths of financial recovery. Through this type of bankruptcy protection, companies can reorganize their debt and thus be in a better position to grow and thrive in the years ahead.

Source: caller.com, "M&G files bankruptcy, puts Corpus Christi plant up for sale," Chris Ramirez, Oct. 31, 2017

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