If you have read the news lately I am sure you are aware that Toys’R Us has filed for bankruptcy. Toys’R Us is the third largest company to go through a chapter 11 bankruptcy, which is a type of ‘reorganization bankruptcy. It’s primarily used when a company needs to restructure its debts to move forward, at least for the time being. Chapter 11 can help stave off immediate foreclosure through using its assets to pay off portions of its debts over time. This doesn’t mean the ending of the company, as GM showed in 2009 when it went through a similar restructuring, a business can emerge from the bankruptcy process and still have a future.
No comments:
Post a Comment