The shipping company, Genco, plans to file for bankruptcy by the end of March. The company operates ships that transport grain, coal, iron ore and soybeans. The Chapter 11 filing will be completed in order to protect the company from a $50 million debt obligation that is coming due. Companies in New Jersey and other parts of the country often utilize bankruptcy in this fashion to protect themselves from an impending debt payment that they cannot afford to pay.
When a New Jersey corporation enters business bankruptcy proceedings, it does not mean the end of the world for the company. In fact, in many cases, business bankruptcy can represent an extremely positive new beginning. Quiznos, the world-famous fast food sandwich chain, for example, recently initiated the Chapter 11 process in the hopes of reducing its debt and coming out stronger in the end.
A pizza restaurant chain, which many New Jersey residents know from area malls, has recently entered Chapter 11 proceedings. The Chapter 11 commercial bankruptcy represents the second time that the pizza restaurant has initiated the bankruptcy process in the last three years. According to one restaurant consultant, the biggest problem faced by the chain is that it is operating under an out-of-date business model.
In recent years, the recession in the United States has been particularly tough on consumers and businesses alike. In fact, times have been so difficult that 23 percent of American households thought about filing for personal bankruptcy in recent years. Further, 18 percent of households actually did file for bankruptcy. Those who are most likely to think about bankruptcy are those in the income bracket of less than $40,000 per year.