Many companies that file for business bankruptcy may not get to experience what it is like to come out the other side of the process in better financial shape than they went in. If a business owner chooses to pursue a Chapter 7 bankruptcy, that will usually mean that the company plans to close down after any and all assets are sold off to satisfy debts. However, when a company goes through a Chapter 11 bankruptcy filing, many times the company is able to emerge once the process is completed and carry on with business.
Many businesses, including some in Escondido, have regular contact with governmental regulatory agencies. While this is a concern that is larger for some more than others, any kind of regulation that specifies how certain aspects of a business need to operate are an important factor to consider in the cost of doing business. It appears that for one company in a Western state in particular, government regulations may have played a significant role in the company's recent Chapter 11 bankruptcy filing.
Many people view hospitals as more public service than businesses dedicated to generating a profit. However, the reality is that many hospitals are indeed focused on profits, although of course most recognize that the path toward profitability is offering the best medical care possible. But, the perception of hospitals as a public service remains, and that can make it a shock when a hospital decides to pursue a bankruptcy filing.
Some of our Escondido readers may remember BottleRock 2013, a music festival held at the Napa Expo in May of last year that spanned five days. Some of our readers may have even made the trip north to attend the event. Unfortunately, the event caused quite a bit of financial distress for the company that produced it, BR Festivals LLC. As a result, the company recently filed for Chapter 11 bankruptcy.
With America's current stagnant economic situation it seems like businesses can face a financial crisis at almost any given point in time. It has been several years since the nation's economy has been in a healthy state, and, unfortunately, there doesn't appear to be a full recovery on the horizon any time soon. As a result, businesses are being put in a position where all options need to be on the table to address financial issues. For some, that can even include a Chapter 11 bankruptcy filing.
Any of our Escondido readers familiar with previous posts here know that businesses that are facing tough financial situations may consider filing for bankruptcy protection. Even though filing for bankruptcy is usually billed as the "beginning of the end" for a business in the media portrayals, the fact of the matter is that Chapter 11 bankruptcy - one form of bankruptcy most commonly associated with businesses - is intended to help the company turn things around and remain in business. Seeing an individual file under Chapter 11, however, is unusual.
This is the time of year that financial experts love, as the final data from 2013 starts to flow in and allows experts to analyze the recent year as a whole. There are many indicators that experts look at to try to judge the state of the economy and what to expect in the year to come. One of those indicators in the business sector is determining how many commercial bankruptcies were filed in any given year. Now, according to a recent report, from the 2013 bankruptcy data it appears that commercial bankruptcy filings last year dropped significantly. In fact, the number of commercial bankruptcies filed last year even dropped below the number from 2007 - the year when the economy really began to tank.
Many California residents spend a lot of time at ski resorts in the winter months, trying to take advantage of good snowfall by downhill skiing and snowboarding. However, in recent years ski resorts throughout the country have been facing tough times, as the moribund economy forces Americans to spend less on recreational activities. As a result, some ski resorts have had to turn to Chapter 11 bankruptcy in an attempt to survive until the economy recovers. Fortunately, some of these ski resorts are now coming out the other side of the bankruptcy process.
California residents and businesses alike have been hard hit by the difficult economy the country has faced over the last several years. While there has been some recovery, not every industry has been able to fully recover. Many have been left with debts that they cannot manage to pay off even with some economic growth. Many businesses have turned to Chapter 11 bankruptcy as a way to restructure their debt to make themselves more competitive in this new economic environment.
Many of our Escondido readers who are familiar with previous posts here know that California businesses have a variety of options when profits begin to shrink. The economic turmoil of the last several years has forced thousands of businesses to take a hard look in the mirror and come up with a new model for achieving success. For some, that internal review resulted in the decision to file for bankruptcy. But, if a company does come to that decision, there is yet another decision to make: what type of bankruptcy will the company file?