A paper company in another state recently filed for bankruptcy. The company, Appvion, completed a Chapter 11 bankruptcy filing in an effort to restructure its debt. Any company in Massachusetts that is struggling financially may benefit from exploring Chapter 11 bankruptcy protection, which may enable it to position itself to keep operations going both now and in the future.
The paper company’s recent Chapter 11 bankruptcy filing follows the bankruptcy filing of yet another paper company that has been facing unsustainable, heavy debt. This other company, Appleton Coated, is slated to be sold to used-equipment dealer Industrial Assets. This sale has not yet been finalized.
Appvion in its financial filing for the second quarter of this year acknowledged that its debts totaled $445 million. Meanwhile, it had assets totaling $378.4 million. Its net sales year to date were more than 6 percent lower than they were during the same period last year. The decline in sales was primarily because of lower volumes being shipped and lower thermal paper product prices. The company’s workforce is 1,400 employees strong.
Unfortunately, sometimes factors such as changing market or industry conditions cause companies to find themselves in financial peril, and they simply cannot escape their fiscal problems by doing business as usual. Businesses whose liabilities are greater than their assets may choose Chapter 11 bankruptcy protection to maintain sustainable capital structures for their businesses. A bankruptcy attorney in Massachusetts can walk a business owner through the filing process and make sure that his or her best interests and wishes are ultimately upheld.
Source: postcrescent.com, “Appvion files for bankruptcy protection“, Maureen Wallenfang and Madeleine Behr, Oct. 2, 2017