A broadcaster based in another state recently decided that its dire financial situation required drastic measures. It therefore decided to file for Chapter 11 bankruptcy. Companies in Massachusetts can likewise take advantage of this debt relief remedy if they are in financial holes they cannot seem to climb out of on their own.
The broadcaster that filed for bankruptcy, Liberman Broadcasting, is a Spanish language television and radio company. Company officials said that the goal is to decrease the company’s debt by over $350 million. At this point, it has received a loan totaling $38 million, which will enable it to fund business operations as the financial reorganization takes shape during the course of the bankruptcy proceedings.
According to the company’s bankruptcy petition, the company has between 1,000 and 5,000 creditors. In addition, its assets are estimated to be anywhere from $100 million to $500 million, whereas its liabilities are between $500 million and $1 billion. The company will keep operating under the supervision of a court-appointed trustee, so its programming is expected to continue nationwide.
Sometimes companies end up struggling financially for economic reasons or due to changes in their industries, for example. In these situations, the business owners may not know how to overcome the mountains of debt they end up accruing as a result of the financial turmoil. However, Chapter 11 bankruptcy may pave the way for these business owners to achieve financial stability and renewed profits once again. An attorney can provide these company owners with the guidance they need to successfully navigate the bankruptcy filing process in Massachusetts.