Liquidating chapter 11
The list of national retailers that have filed for Chapter 11 protection in recent years with the intention of reorganizing but instead wound up liquidating is long.Remember Circuit City, KB Toys, Borders, Linens-N-Things and Sports Authority? Earlier this month, The Limited, an apparel chain dating back to the 1960s, became the first retail casualty of 2017 when it announced it would be liquidating all 250 of its stores. These kinds of high-profile closings have contributed to the perception that Chapter 11 retail debtors, more so than non-retail debtors, fight an uphill battle to complete a restructuring.The business owner may choose to retain control of the plan, but it is advisable to work with an attorney during this time.Our attorneys can assist you with all aspects of the liquidating plan, including the administration and distribution of assets to creditors.It's much more involved than Chapter 7 as it allows the firm the opportunity to reorganize its debt and to try to re-emerge as a healthy organization.What this means is that the firm will contact its creditors in an attempt to change the terms on loans such as the interest rate and dollar value of payments.
The findings revealed that the proportion of large retail debtors that liquidate is, in fact, consistently far greater than the proportion of non-retailers — by a whopping 48% to 22%, respectively.Let’s start with a general overview of liquidation.Liquidation (Chapter 7): With a “liquidation” bankruptcy, known as Chapter 7, the trustee sells the assets of the debtor and then uses the money to pay back the creditors as much as possible.Some debtors will convert to a Chapter 7 liquidation bankruptcy while others may end up with a Chapter 11 liquidating plan. C., has the business bankruptcy experience to represent your company in complex Chapter 11 filings.If a liquidating plan may be in your company's future, you may wish to discuss your options with one of our knowledgeable Chapter 11 lawyers.