A company in a state north of Tennessee has been struggling financially. Financial problems are relatively common these days. Many business owners have been exploring options to help relieve debt and to try to get things back on track before they reach a point of no return. The company in question has recently gotten court approval to use a specific financial tool known as Chapter 11 bankruptcy.
By filing for bankruptcy, the company will be able to restructure its payment plans, designed to increase financial flexibility. Two of the company’s senior living facilities will be offered for sale as part of the Chapter 11 plan. Overall, the company’s debt will decrease by $40 million.
American Eagle is the senior living facilities’ parent company
American Eagle is the parent company of 15 senior living facilities that span seven different states. American Eagle representatives say that the Chapter 11 program is going to help the company pull through difficult financial times and to bounce back stronger once it has emerged from bankruptcy. In June, one of the senior facilities in Florida will be sold, at which point, the Chapter 11 process will be complete.
One size does not fit all when it comes to bankruptcy
Tennessee business owners who are currently facing similar financial problems may want to explore their Chapter 11 bankruptcy options. If this particular bankruptcy program does not meet a specific business owner’s need, it’s possible that another program may be a good fit. A business might not qualify for one program but will for another. It is a good idea to ask for assistance from an experienced bankruptcy law attorney before taking any formal steps to file a petition in court.