Phones Answered 24 Hours A Day Call 800-653-2243
Thompson Law Group, P.C.
Experienced Lawyers on Your Side
Menu / Navigate
Secondary Nav

Anchor Hocking files bankruptcy, has plan to restructure debt

A Chapter 11 bankruptcy is generally a reorganization procedure allowing a business in Pennsylvania or elsewhere to get rid of some of its debt and negotiate restructuring of other debt, thus perhaps allowing the company to keep operating with a modified debt structure. In some instances, particularly those in which a company has planned carefully in advance and has the assistance of experienced bankruptcy counsel, it may file for bankruptcy and continue to operate straight through the process, coming out of the bankruptcy in a stronger economic position than before. Another benefit of a Chapter 11 filing is that a company may continue to operate without interruption of its business affairs and without a shutdown of its retail outlets.

A company with two main locations in Pennsylvania has filed a Chapter 11 bankruptcy with a plan that will reportedly restructure its long-term debt and let the company emerge from bankruptcy better than before. The plan involves infusions of additional capital into the company, which owns Anchor Hocking, by its secured creditors. In return, it appears that those creditors that invest will obtain ownership interest in the company.

The company expects to emerge from the bankruptcy in 60 to 75 days with reduced debt and increased capital backing through the investments made in the company by its secured creditors. That is a propitious outcome for a business that is having trouble staying afloat and staying open. Not all Chapter 11 proceedings end with a similar success stories.

Sometimes the attempt to restructure and reorganize debt in a Chapter 11 bankruptcy fails. This can happen for many different reasons, but usually it means that the company was too deep in debt to be able to reorganize and remain strong enough to go forward. In those situations, the debtor entity will file to convert the proceeding to a Chapter 7 liquidation. The leadership of Anchor Hocking, which is based in Pennsylvania, was commended by observers who believed that management was on top of the situation and very proactive in reorganizing in a strong manner.

Source: lancastereagle.com, "Anchor Hocking parent company to file bankruptcy", Jeff Barron, April 1, 2015

No Comments

Leave a comment
Comment Information

Contact the Firm

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Warrendale Office
Main Office
125 Warrendale-Bayne Road
Suite 200
Warrendale, PA 15086

Toll Free: 800-653-2243
Map & Directions

Pittsburgh Office
DOWNTOWN PITTSBURGH
555 Grant Street Suite 331
Pittsburgh, PA 15219

Toll Free: 800-653-2243
Toll Free: 800-653-2243
Map & Directions

Greensburg Office
GREENSBURG OFFICE
101 North Main Street, Suite 104-A
Greensburg, PA 15601

Toll Free: 800-653-2243
Toll Free: 800-653-2243
Map & Directions

Canonsburg Office
Satellite Office
2400 Ansys Drive
Canonsburg, PA 15317

Toll Free: 800-653-2243
Map & Directions

Monroeville/Wilkins Township office
Satellite Office
400 Penn Center Boulevard
Suite 101
Pittsburgh, PA 15235

Toll Free: 800-653-2243
Map & Directions