Tennessee business owners who are currently struggling to stay afloat financially may want to follow a recent debt relief case in another state. A company that owns 18 major energy facilities has reportedly taken a hard hit due to rising natural gas prices. As part of a major overhaul and restructuring plan, the company has filed for Chapter 11 bankruptcy.
This type of bankruptcy often enables a business owner to retain certain assets and keep operations functional. It often helps companies stay open for business while reworking their payment plans, often by restructuring their debts. In this case, the energy company owners project that their reorganization plan through Chapter 11 will help them lower their $4 billion in debt.
Energy rep says transitioning away from coal will also help
Reportedly, part of the financial restoration plan includes eliminating coal at company facilities and transitioning to clean power sources. In addition, more than 60% of those who hold unsecured bonds in the company have agreed to convert at least $1.4 billion of it into equity. They have also lined up several creditors who are willing to loan the company close to $2 billion as it navigates the Chapter 11 bankruptcy process.
If financial crisis hits, stay calm and explore options
Tennessee business owners who are struggling with financial problems may have debt relief and restoration options available. There are several types of bankruptcy, including Chapter 11, that might give them the breathing room they need to get things back on track without having to cease business operations. It is helpful to consult with a bankruptcy law attorney ahead of time to seek guidance and recommendations as to which program might best fit a specific company’s needs.