Chapter 11 Bankruptcy
Chapter 11 Bankruptcy
Opal Shaw
American Public University System
Legal Practices for Small Business
ENTR615 B002 Fall 14
Dr Tonya Curry
November 16, 2014
Chapter 11 Bankruptcy is one that is available to small business, corporations and partnership. There is no definite limit of debt you must occur before you can file bankruptcy. The main purpose why business files a Chapter 11 is to seek help in restructuring your debt and reorganization.
In Chapter 11 the debtors are usually given the opportunity to keep their assets and continue to operate their business but this is done under the supervision of the courts. This is for the beneficial of the creditors so that they can get pay. In most cases a trustee is appointed to supervise the proceedings. Chapter 11 is one of the most flexible Chapters to do, in that it is the hardest to generalize and can be expensive to the debtor. It however can help the debtor to reduce the obligations and help to change their payments so that they can balance their income and expenses. Doing so, will help to gain business success and continue with its operation. Another option is to sell all of their assets and downsized their business operations.
Texaco was my choice of business to investigate. I choose this company because this company was one that I have admired over the years and never thought that it would have had any issues in its operations. Although this company filed a Chapter 11 a long time ago, I thought reading and writing about the proceedings was a great one for me to absorb. According to the New York times (l987), An article indicates that Texaco files bankruptcy for relief and is seeking relief and legal protection in order not to go down and to fend off the then existing pressure from seizure of their assets with Pennzoil dispute, this assets was over 11 billion dollars. Texaco is one of the world largest oil companies and seems to be one of largest company ever to seek bankruptcy.
Opal Shaw
American Public University System
Legal Practices for Small Business
ENTR615 B002 Fall 14
Dr Tonya Curry
November 16, 2014
Chapter 11 Bankruptcy is one that is available to small business, corporations and partnership. There is no definite limit of debt you must occur before you can file bankruptcy. The main purpose why business files a Chapter 11 is to seek help in restructuring your debt and reorganization.
In Chapter 11 the debtors are usually given the opportunity to keep their assets and continue to operate their business but this is done under the supervision of the courts. This is for the beneficial of the creditors so that they can get pay. In most cases a trustee is appointed to supervise the proceedings. Chapter 11 is one of the most flexible Chapters to do, in that it is the hardest to generalize and can be expensive to the debtor. It however can help the debtor to reduce the obligations and help to change their payments so that they can balance their income and expenses. Doing so, will help to gain business success and continue with its operation. Another option is to sell all of their assets and downsized their business operations.
Texaco was my choice of business to investigate. I choose this company because this company was one that I have admired over the years and never thought that it would have had any issues in its operations. Although this company filed a Chapter 11 a long time ago, I thought reading and writing about the proceedings was a great one for me to absorb. According to the New York times (l987), An article indicates that Texaco files bankruptcy for relief and is seeking relief and legal protection in order not to go down and to fend off the then existing pressure from seizure of their assets with Pennzoil dispute, this assets was over 11 billion dollars. Texaco is one of the world largest oil companies and seems to be one of largest company ever to seek bankruptcy.
References: Http://www.Moran law/net/Chapter 11.htm: Chapter 11 Bankruptcy reorganization. Texaco files for Bankruptcy relief: seeks legal protection to fend off assets seizure, retrieved: http://articleslatimes.com/l987-04-13/news/mn-508 bankruptcy protection.