Chapter 11 bankruptcy can seem daunting to some businesses, as many owners may be afraid it will end their business operations. However, this type of bankruptcy allows a company to reorganize its debt and stay solvent whenever possible. The plan for the debt reorganization must be approved by a federal bankruptcy court.
A billionaire from Palm Beach, Florida, filed for Chapter 11 bankruptcy this past Monday. Harry Sargeant, who was a fighter pilot in the Marines, expanded his family's business into a massive shipping company. His company, Trigeant Ltd, which is based out of Boca Raton, declared that it has 50 to 99 creditors and outstanding debt of $50 million to $100 million. The company's assets were only listed as $10 million to $50 million.