There are as many reasons for filing for bankruptcy as there are bankruptcies out there. What we mean is tjhat every company faces its own unique set of circumstances that leads it to the decision to file for Chapter 11 bankruptcy.
In the United States today, business' financial and operational structures are increasingly becoming more complex. Through a series of financial deals and acquisitions, companies are often knowingly or unknowingly beholden to numerous parties and creditors, many of whom have very different and competing interests in whether a business ultimately succeeds or fails. Consequently, finding solutions to a business' debt problems has also become more complicated.
In a previous blog post, we discussed how Chapter 11 bankruptcy can ultimately benefit businesses that are struggling financially. While there's no doubt that, in many circumstances, Chapter 11 truly is the smartest and best option for some businesses, that's not to say that creditors will agree.