An old manufacturing firm in another state recently decided to take drastic measures to remedy its precarious financial situation. It has filed for Chapter 11 bankruptcy protection. Companies facing financial struggles in Massachusetts can do the same in an effort to bounce back financially.
In the recent out-of-state case, manufacturing firm officials said they filed for Chapter 11 bankruptcy to resolve future or current wrongful death or personal injury claims stemming from people’s alleged exposure to asbestos. The asbestos was present in iron and bronze valves that the manufacturing firm generated and sold over four decades ago. A private ownership group purchased the company back in the early 1980s and ended up shutting down the particular plant that made the problematic asbestos-containing valves.
The problem at that time, though, was that the company’s new ownership did not dot all of its i’s and cross all of its t’s. As a result, the ownership might have assumed liability for the products manufactured decades earlier. However, the business itself today is booming. Therefore, the Chapter 11 bankruptcy filing will allow the company to eliminate the liability issues currently plaguing it and emerge a much stronger company.
Sometimes companies throughout the United States have a hard time staying afloat due to outstanding litigation or other issues that weaken its bottom line. However, filing for Chapter 11 bankruptcy may provide these companies with the financial relief and fresh start they need. An attorney can provide the direction needed to correctly file for bankruptcy quickly and efficiently in Massachusetts.