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.
While one company may be dealing with a sudden decrease in demand, another company may be dealing with an influx of new competitors in its market. Unfortunately, for some companies, the reason behind their bankruptcy may be a pending or finalized lawsuit.
That is the situation a New York business currently finds itself in. The owner of New York Crane & Equipment Corp. and his companies recently filed for Chapter 11 bankruptcy protection, which the owner says was no easy decision. His company was involved in a lawsuit filed by the families of two victims who were killed in a crane accident in 2008. The crane was owned by New York Crane & Equipment Corp. A jury awarded the two families $96 million.
The owner hopes to appeal the verdict and filed for bankruptcy protection to preserve his businesses during the appeals process. The company is apparently a defendant in another lawsuit surrounding a different crane collapse in Manhattan.
While this situation is tragic for all involved, business owners who have been sued can understand the severity of the possible consequences a lawsuit holds. If plaintiffs win a lawsuit against a business owner, the company's livelihood may be at stake. While business owners may feel hopeless, an attorney can help them through the bankruptcy process in order to protect their rights.