Jump to Navigation

Universal Cooperatives Inc. files for Chapter 11 bankruptcy

Many businesses have suffered the effect of the recession and have been forced to make some changes to stay afloat. Even after an enormous amount of effort, a company in New Jersey and across the United States still may not be able to make enough money through cutting costs and lay-offs. Companies that file for Chapter 11 may emerge from their difficult time stronger and with a more competitive edge.

Universal Cooperatives, Inc., a company that provides various services for the farming industry, recently filed for Chapter 11 bankruptcy protection. The company includes all five of its other owned businesses under the same umbrella. The company claims that it intends to sell the other businesses during this time.

It is not yet known if the filing is going to impact the 171 employees who work across all of the subsidiaries. The company requested that the court secure the payment of wages and benefits for the employees. This would allow the company to continue operating with cash flow while it works through the transition into Chapter 11.

Universal received financial support from Bank of America to continue operating and is expected to continue ordering from suppliers during the Chapter 11 process. The company owes nearly $8 million to its highest five creditors and greater than $10 million to another 25 creditors. It will continue operating through the process in an effort to come out stronger. New Jersey companies who are struggling may find it beneficial to file for Chapter 11 in order to become leaner and more attractive to a suitable buyer and look forward to a stronger future.

Source: Twin Cities Business, "Universal Cooperatives Files For Ch. 11 Bankruptcy", Kevin Mahoney, May 12, 2014

No Comments

Leave a comment
Comment Information

Contact Us

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close
Subscribe to This Blog's Feed Visit Our
Bankruptcy Law Website

Office Location

Law Office of Robert Braverman, LLC

South Jersey
1060 North Kings Highway, Suite 333
Cherry Hill, NJ 08034
Phone: 856-254-2196 
Toll Free: 800-759-0767
Fax: 856-414-1230
Map & Directions

Willingboro Area Office
Law Office of Robert Braverman, LLC

1848 Burlington Mount Holly Rd (Route 541)
Mount Holly, NJ 08060
Phone: 856-254-2196
Toll Free: 800-759-0767
Willingboro Area Office

Center City, Philadelphia
15th Floor
1515 Market Street
Philadelphia, PA 19102
Map & Directions

Northeast Philadelphia
7909 Bustleton Avenue
Philadelphia, PA 19152
Map & Directions

FindLaw Network