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When Bad Things Happen to Good People ...

Bankruptcy May Be Your Option

Publishing company files for bankruptcy

It is no secret that the state of the economy is always changing. With it, business fortunes in Oklahoma and around the country also fluctuate. Often when a business runs into trouble, filing for bankruptcy becomes the only feasible option.

Recently, Dolan Co., a publishing company, filed for Chapter 11 bankruptcy. The company said it plans to reorganize under bankruptcy protection due to the crippling weight of its accumulated debt. Negotiations on reviving the corporation outside bankruptcy also fell through. The corporation ran into trouble when its bank pulled the plug and sold Dolans’ debt to an investment fund. Its stock price dropped to a low of 2.5 cents per share.

Dolan intends to file a prepackaged Chapter 11 bankruptcy with the U.S. Bankruptcy Court. This will enable the company to carry out a financial restructuring within two months. Dolan and its creditors are working on arrangements to reduce the former’s secured debt by more than half. A chief restructuring officer from outside the company was appointed in January. The company needs to receive enough votes from its secured creditors before it can file for the Chapter 11 plan. The business expects to get out of bankruptcy in two months.

Bankruptcy is a federally guaranteed way of discharging or reducing debt. It is a way of providing debt relief to struggling businesses. Bankruptcy allows a business to restructure its debt and come up with a manageable repayment plan. There is life after filing for bankruptcy. A lawyer may offer helpful advice to get you through the process.

Source: The Star Tribune, “The Dolan Co. to seek Chapter 11 bankruptcy protection,” Neil St. Anthony & Patrick Kennedy, March 20, 2014

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