Chapter 11 bankruptcy is focused on a company reorganizing and paying off its debt. It is typically filed on a voluntary basis on the business’s part. It is very effective to use Chapter 11 to sell a business facing liquidation. The new owners can assume control over the business without it being subject to creditors.
Selling a business under Chapter 11 can be done through an auction or private sale. Selling in this manner creates competition which lets the market determine the value of the business. The proceeds of the sale go to the creditors. A creditor’s ability to stop a sale under Chapter 11 bankruptcy is minimal. An effective exit strategy for businesses impacted by a significant change in the market or other unforeseen circumstances is to sell the business’s assets.
Shoffner & Associates is very experienced in selling under Chapter 11 bankruptcy. Contact them when struggling to pay debts. Find out what your options are and if selling your business is the best answer.
Starting a NEW business or know someone that could use our help? Call your friendly neighborhood attorney today.
With the right help, you are more likely to succeed. The attorneys at Shoffner & Associates will be happy to help you.
