Company Faces Challenges during Chapter 11 Filing
You would think that a company that deals in taking care of other's finances would be in good financial shape itself. For the second largest tax preparation company in the country, however, this is not the case.
The company filed for Chapter 11 bankruptcy on January 31st of this year, listing $444.8 million in debts and $388.6 million in assets. After dealing with the court system for the past several months, the legal team has prepared a reorganization plan that just won court approval. The plan has already been approved by the lenders who will gain control of the company now that the plan has been pushed through.
Outlined in the reorganization plan are the terms that apply to lenders. As a whole, lenders are owed $357 million and they will receive a $100 million term loan in addition to any equity left in the company. Since all equity was granted to the lenders, stockholders can expect nothing out of the approved reorganization plan.
Filing for bankruptcy can be complicated, but the process can be made easier when people choose to enlist the help of a Houston bankruptcy lawyer. If you're moving forward with bankruptcy, expedite the process by
contacting the Malaise Law Firm.