Apparently in hopes of continuing operations, East Coast Brokers & Packers have filed for Chapter 11 bankruptcy protection in the Florida courts. Besides being in the tomato shipping business, the owners of the packing company also own a hotel that has been closed for the last ten months.
One of the creditors in this bankruptcy suit allegedly is owed $46 million. At least one other debt is estimated to be at $3.5 million. The company has already attempted to sell off some of his assets including farmland.
Business spokes people have in part blamed increment weather for the financial problems of the company. The economic climate of the last few years has also likely contributed to the company’s problems. In any case, it’s difficult to comprehend how the company will ever be able to pay off anywhere near all of its debts without some sort of reorganization strategy in place.
Putting together a Chapter 11 reorganization plan requires the services and representation of a competent bankruptcy attorney. Reorganization plans must be put together with precision as bankruptcy judges will not let a plan go forward that would only lead to more financial struggle.
All creditors will need to be dealt with fairly when applying for Chapter 11. Without a reorganization option, owners of the business have little choice but to walk away from a business and leave the debts unpaid.
Without access to Chapter 11 bankruptcy, assets often cannot be sold and become the subject of legal haggling, employees will have to let go, and a number of contractual obligations will be breached. Everyone loses if a business simply just shuts down.
Source: The Produce News, “East Coast Brokers & Packers files for bankruptcy protection,” by Tim Linden, March 14, 2013
- Our Orlando lawyers’ webpage contains more information regarding the specifics of Chapter 11 bankruptcy.