A construction company in another state recently decided to tackle its poor financial situation aggressively. Specifically, the company decided to file for Chapter 11 bankruptcy protection. Companies in Massachusetts that are experiencing financial problems may likewise benefit from this type of bankruptcy filing.
The bankruptcy filing comes after the collapse of a lounge building that the construction company was remodeling. The collapse, which took place back in 2016, led to a construction worker’s death and caused a woman to remain trapped in debris for hours. The construction company now faces five legal suits related to this building collapse. All of these lawsuits are pending.
The construction company said its Chapter 11 bankruptcy filing will enable it to reorganize and then distribute its limited resources to the parties who have claims against it. The company’s ultimate goal in its bankruptcy filing is to offer fair access to compensation and finality to everyone involved in the collapse of the lounge it was remodeling. The company’s attorney said the business looks forward to finally resolving these complex issues in an efficient manner.
Sometimes, unforeseen circumstances cause companies in Massachusetts and elsewhere to find themselves in dire financial straits. No matter how much they attempt to climb out of their debt holes, they may never be able to overcome their financial issues. Fortunately, these companies may find relief in Chapter 11 bankruptcy protection. Filing for bankruptcy may help struggling business owners to finally break free from the financial issues plaguing them and enjoy the fresh financial starts they desperately need.