An investment management corporation in another state recently decided to seek bankruptcy protection. The Chapter 11 bankruptcy move comes on the heels of several years of struggle for the company. Any business in Massachusetts that is having a hard time staying afloat financially may benefit long term from this type of bankruptcy filing.
The investment company has filed for bankruptcy in an effort to get rid of debt totaling $800 million and make its balance sheet stronger. The hope is that the bankruptcy filing will put the company on more solid ground financially. Through the filing, the company can more efficiently focus on achieving its business goals, including those in the areas of innovation and new technology, as well as its servicing and origination businesses.
During the past few years, the company has suffered major quarterly losses. In addition, the business’s senior executives have come and gone constantly amid the company’s financial turmoil. The company’s net loss last year was more than $529 million — more than $14 per share. This was much higher than the loss of $263 million in 2015 — or $7 per share. This year, the company’s net loss during the first nine months totaled more than $213 million.
Sometimes, businesses find it difficult to financially thrive due to changes in the economy or even because of changes in customer demand in their respective industries. These situations are beyond their control, but fortunately, they can move forward with Chapter 11 bankruptcy to bounce back financially. An attorney can offer the needed assistance to make sure that the filing process is completed correctly and efficiently in Massachusetts.
Source: housingwire.com, “Walter Investment files for Chapter 11 bankruptcy“, Ben Lane, Dec. 1, 2017