It was reported on the 6:00 PM news last night that our company now has 2447+ liens against it… ranging from small local companies to large national ones.
At 9:00 PM last night the new President of our company filed for protection under Chapter 11 of the Bankruptcy Code. There was a meeting this morning saying his hand was forced and he had to do it (he had consulted with the accountants and they agreed he had to do this).
Chapter 11 means we will remain in business, but will be told what to do by the courts… the “Out of Business” is Chapter 7. Here’s a quick definition for you:
Federal bankruptcy laws govern how companies go out of business or recover from crippling debt. A bankrupt company, the “debtor,” might use Chapter 11 of the Bankruptcy Code to “reorganize” its business and try to become profitable again. Management continues to run the day-to-day business operations but all significant business decisions must be approved by a bankruptcy court.
Here is some more info: http://en.wikipedia.org/wiki/Chapter_11
Now, for those that don’t know, if the judge hearing the case thinks that we can’t turn around and make a profit, he can turn our Chapter 11 into a Chapter 7, causing us to close and liquidate our assets. Hopefully that will not happen.
Anyway, during the meeting it was revealed that there will be layoffs and downsizing, but when and who has yet to be determined. Well, that’s all I got for now… I’m sure the news will run with it today… joy. 