Consumers are not the only parties that file for bankruptcy. Companies and business entities are also allowed to take advantage of the protection offered by the bankruptcy laws and for distressed organizations this relief can help get business back on track. There is no shame in filing for bankruptcy, for an individual or for a corporation. And, when a company files bankruptcy it can help keep the doors open and the employees with a job. Some well-known businesses that have filed bankruptcy include Macys, Chrysler, Samsonite, and Six Flags. In some of these cases the companies have remained in operation while others have not fared as well. A business bankruptcy, called a chapter 11, can allow a corporation to remain in business or help the company to wind down.
When news breaks that a large corporation is struggling, bankruptcy is often part of that story. This is especially true in today’s oil and gas world, and many companies operating in this industry have had to lay off thousands of workers in order to stay afloat. But others in the oil and gas industry have been able to stay out of bankruptcy, even as rumors of their imminent filing swirl. One company that instantly comes to mind in this regard is Chesapeake Energy. And while the story of Chesapeake is not yet over, recent news tells a startling tale:
- On March 1, 2016 former CEO and founder of the energy giant was indicted on charges of bid fixing for oil and gas leases. This news came on the heels of rumors the company was facing bankruptcy.
- The following day, on March 2, 2016 the former CEO, Aubrey McClendon, died in a fiery one car crash. The talk quickly turned from bankruptcy of McClendon’s former brain child to whether the accident was intentional.
What remains to be seen is what caused the accident that took McClendon’s life, and how the company he helped to form will weather the oil and gas storm that has gripped the country. The economic consequences of large corporations filing bankruptcy can have far reaching effects, and consumers can be impacted when corporate America fails.
For more information about bankruptcy, contact us at www.DsouzaLegalGroup.com. We will help by coming up with solutions that work for you.