After accepting a large loan from a financial group, a builder has decided to file for Chapter 11 bankruptcy. This came as a surprise to shareholders that thought the loan would be substantial enough in thwarting further financial problems.

The company filed for Chapter 11 bankruptcy in a North Carolina bankruptcy court this week. According to the documents filed, the company has debts between $500 million and $1 billion. While this may seem like a high figure the company has already constructed a reorganization plan that has been gaining approval from creditors. As part of the reorganization plan, a New York-hedge fund is supposed to assume control of the building company.

Once the bankruptcy has been completed, the owners of the building company will see their stakes in the company's profits reduced considerably. They will go from owning 94.6 percent of the company to just 20 percent. However, their debts will also be cut from nearly half of one billion dollars to just over $345,000.

Facing Chapter 11 bankruptcy? Now is the time to contact the Malaise Law Firm to enlist the services of an experienced Houston bankruptcy lawyer who can help you get through these tough financial times.