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SOUTH CAROLINA
BANKRUPTCY ATTORNEY

Chapter 7 for closed company

After filing for Chapter 11 bankruptcy protection in August, a company has decided to change the nature of its filing. South Carolina residents may be interested to know Creative Recycling Systems agreed to a voluntary switch to Chapter 7 bankruptcy earlier this month. The company made the switch on Dec. 18.

The company entered Chapter 11 after being sued by a banking organization to the tune of $18 million back in August. Since then, nationwide facilities have been closed, and hundreds of employees have been laid off. A federal district court approved a request to dispose of burdensome property, which allowed secured creditors among others to dispose of property outside of the bankruptcy proceedings to retrieve as many funds as they could.

Representation for the company has confirmed that selling the company outright is no longer an option. In the interim, the company -- under the supervision of the bankruptcy trustee -- will begin liquidating its assets in an effort to appease creditors and ensure payment of as many of its debts. It is unknown what the future will hold for the principals of this company, but with luck, the Chapter 7 filing will help them to confront the financial issues and move on to other investment opportunities.

Overwhelming debt should not be the foe of any business, as South Carolina business owners are already aware. Thankfully, systems are in place to help individuals come to terms with their damaged financial status. Debt restructuring and bankruptcy are both key words in this debate, and it is hoped that  a Chapter 7 filing will help the owners of this company move forward toward some financial solid ground.

Source: bizjournals.com, "Creative Recycling Systems files for voluntary Chapter 7 liquidation", Pam Huff, Dec. 18, 2014

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