If a Tennessee business owner falls upon hard times financially, he or she may explore numerous debt relief options in order to stay afloat. For instance, there are several types of bankruptcy programs that can help a business owner pay back creditors while day-to-day operations continue. In fact, a U.S.-based food supply chain in another state has announced its plans to use Chapter 11 bankruptcy to do just that.
Employees will continue to receive pay and benefits under bankruptcy plan
A spokesperson for the organic, non-GMO and regenerative food and feed company said that 2020 was a rough year, which caused financial strain that is not resolvable without additional support. He further stated, however, that the company is filing for Chapter 11 bankruptcy and will continue to operate with a cash collateral that enables all workers to receive pay and benefits without interruption. Under the plan, portions of the business will be sold, as will certain assets, and the proceeds will then be used to pay back lenders.
The chief executive officer said the company is grateful to all of its employees who have continued to work with commitment and dedication during unstable financial times. When a company files for bankruptcy, its representatives must attend one or more hearings in a bankruptcy court. The first hearing scheduled for this particular food supply company is July 14, 2021.
One size does not fit all when it comes to bankruptcy
There are eligibility requirements attached to each type of bankruptcy. A Tennessee business owner might qualify for one program but not another. This is why it is important to explore all options in order to determine a best course of action in a specific set of circumstances. An experienced bankruptcy law attorney can review an individual case and make recommendations as to which program best fits a particular business owner’s needs and ultimate financial goals.