Chapter 11 bankruptcy presents businesses in Ohio and elsewhere with a unique opportunity to rebalance their assets and reorganize their debts. Like other types of bankruptcy, Chapter 11 also allows businesses the chance for a fresh start. However, filing for Chapter 11 can be costly and should be carefully considered.
Recently, a company called Todd-Soundelux, previously known as CSS Studios, filed for Chapter 11 bankruptcy in order to allow the company to undergo business reorganization while it arranges for the liquidation of assets. The postproduction sound company sets audio tracks to dozens of popular movies and television shows, including the movie “Divergent” and the hit television series, “Game of Thrones.” Todd-Soundelux was also recently nominated for an Oscar for its sound work on the movie “Lone Survivor.”
However, despite these successes, the company filed for Chapter 11 due to a “significant decline in revenue,” according a written statement. Because of its substantial amount of business debt, the post-production company was forced to file for bankruptcy but wished for its doors to remain open and to keep its highly-regarded staff, which include a seven-time Oscar nominee and a 20-time Oscar nominee.
Many Ohio businesses, both small and large, have been affected by the struggling economy. From the film industry to the retail industry, multitudes of businesses have either had to file for bankruptcy or have seriously considered doing so in the hopes of a fresh start.
If you are a business owner considering filing for bankruptcy, then the consultation of an attorney can help you understand your legal options and recognize whether bankruptcy is the right solution for you.