Running a business in Pittsburgh and across Pennsylvania requires a certain amount of risk. Business can ebb and flow and that can cause problems for many owners. In some cases, this can lead to overwhelming business debt and problems making the necessary payments. A debt restructuring through a Chapter 11 bankruptcy can help to maintain business operations and get back on strong financial footing.
According to a recent report, a local brewing company has chosen to file for Chapter 11 bankruptcy due to debt that has reached six figures to two Pittsburgh sports franchises, the Pirates and Penguins. The company bases its business on exports and has four pubs in the area. With this filing, the company will seek a reorganization and try to negotiate its debts and reach a settlement. The chief executive officer states that issues from the past caused the current problems. The brewer owes close to $400,000 to the Pirates and Penguins. In addition, there is a debt with food distributors and companies it used to rent kegs. There are no plans to close any of its locations, potentially saving the jobs of around 140 people in total.
People who might be frightened or intimidated over the process of any bankruptcy filing should be aware that it is a strategy to improve finances and get into a stronger position, personally or in terms of a business. Chapter 11 is a business bankruptcy and affords the company an opportunity to get debt under control and continue operations. The debtor will generally retain assets, provided the conditions of the filing are met. Before closing the business or taking other drastic and unwise steps, it is imperative to understand the benefits of Chapter 11 bankruptcy and if the circumstances make it viable.
In this case, the brewer has found itself in debt that it can no longer handle. To get into an improved situation and stay in business, it has decided to move forward with a Chapter 11. Those who are thinking about whether a Chapter 11 reorganization filing is the right option for them may need to get more information.