Many companies start out with the funds that should cover startup costs. However, that isn’t always the case, and even good intentions and the best planning can lead to Chapter 7 bankruptcy. It’s wise to consider the option of bankruptcy should a business end up facing insurmountable debt.
Those in Jackson, Mississippi, may be saddened to know that, on Dec. 18 it was reported that a company that made macadamia nut shells into activated carbon has filed for bankruptcy. The company filed for bankruptcy due to financial challenges that resulted from unexpected higher costs for resources and design. As funding ran out, the company decided to file for Chapter 7 bankruptcy.
The largest investor seems to be hoping that an outside source will purchase the company and complete the construction of the plant, as the original company is struggling with debt and needs debt relief to continue with its plans. The Hawaiian company launched in 2009, and it was an advocate of green products, as well as a creator of high-tech jobs for those living on the islands. The plant reportedly would sell granular activated carbon to pharmaceutical companies, as it was a specialized product.
Bankruptcy can be a challenge, so it’s wise to consider the options available. It may provide relief, however, from debt and can help a person start fresh from a stressful and overwhelming situation.