Business bankruptcy resources are useful for struggling businesses to be familiar with. A famed North Carolina barbecue restaurant looks to be sold as part of a bankruptcy process after the restaurant filed for bankruptcy protection earlier this year. The barbecue restaurant has been in business for 6 decades prior to its recent financial trouble. A recent purchase agreement for the barbecue was filed in the bankruptcy court. The proposed sale, if approved by the bankruptcy court, will be for $350,000.
The purchaser is a group of community members who came together to form a company to purchase the restaurant so it could continue to serve the community. The bankrupt barbecue claimed $350,000 in debts and $100,000 in assets in its earlier bankruptcy filing. Its debts include liens on equipment loans and unpaid state and federal taxes. A representative for the purchaser noted that the hope is for the barbecue business to return to its former glory.
Chapter 11 bankruptcy provides a sometimes unique opportunity for a company wishing to remain in business to do so and to work towards profitability once more. The Chapter 11 reorganization bankruptcy process is a business bankruptcy option that provides different options, including a repayment plan or the option to seek sources of capital or a purchaser, for struggling businesses to deal with their debt. Chapter 11 bankruptcy protection, like other bankruptcy options, also allows for a stay of creditor collection actions during the bankruptcy process which can help struggling businesses have the time they need to seek out a buyer and to work out a reorganization plan with the bankruptcy court.
Struggling businesses faced with the prospect of overwhelming debt should be familiar with Chapter 11 bankruptcy as one option to consider and what bankruptcy protection can do for them. Bankruptcy protection can provide breathing room and resources to help a business get on a path to a better future and enjoy debt relief.