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Major bankruptcy affects Kentucky company and its vendors

On Behalf of | Nov 13, 2019 | business formation & planning |

It takes a lot of work to get a business off the ground. When someone is going it alone, it can feel like the work is not going anywhere near profit, but it is an investment in smooth operations in the future. When companies rely on each other to stay afloat, planning is very important to keep things running until they improve.

A large company with operations in Kentucky is going through many changes as it works through a bankruptcy filing. The corporation, which is heavily invested in resource extraction like coal mining, is resolving $1.7 billion in liabilities with holders of its debt.

The Western Kentucky Coal Company, which is a subsidiary of the corporation, has also filed a petition for bankruptcy. The company’s employees, suppliers and customers may also be affected by the restructuring of assets that often goes along with paying back debtors or working out what they will accept instead of the value of their holdings.

“Although a bankruptcy filing is not an easy decision, it became necessary to access liquidity and best position [the corporation] and its affiliates for the future of our employees and customers and our long-term success,” said the new chief operating officer.

The ease of filing for bankruptcy and other steps that businesses’ owners and managers may take may be made easier by the solid planning of a business’ structure. An attorney can help you consider the important details involved in forming and planning a business, as well as many of the steps that a business may go through during its lifespan.