When a business in Southern California is facing financial difficulties, there are many decisions to be made. Growing expenses and shrinking profits can lead to employees being laid off, or necessitate innovation to come up with a different product. However, for those companies who believe things can improve, but just a little bit of help is needed, a Chapter 11 bankruptcy filing may be the way to go.
According to a recent report, American Suzuki Motor Corp., which is based in Brea, about an hour north of Escondido, has been going through the Chapter 11 process this year. The company is just one part of the Suzuki Motor Corp. that is based in Japan, and much of the company's focus has been on selling automobiles in the United States. However, the report indicates that as part of the Chapter 11 bankruptcy process the company will shift its focus to marine, motorcycle and ATV divisions, and will eventually cease to sell cars in America.
During a Chapter 11 bankruptcy a company is required to submit a plan for reorganizing and streamlining operations, as well as attempting to reach an agreement with creditors on business debt. This is all completed while the company stays open for business.
The most recent reports on American Suzuki's bankruptcy indicate that their plan has been approved and the company is on track to emerge from the bankruptcy process soon. As these reports go to show, a business bankruptcy is not always a big, bad, terrible thing - even though media coverage of these procedures often make the process out to be just that. A bankruptcy filing can provide a company with breathing room to step back and reassess the best way to become - and stay - a profitable enterprise.
Source: Orange County Business Journal, "American Suzuki Bankruptcy Plan Receives Approval," Kari Hamanaka, March 1, 2013