Key sports company stares down Chapter 7 bankruptcy

Published by
The Street

By Daniel Kline Bankruptcies help companies sort out their finances, but they also add a layer of complication. Once a company files a Chapter 11 bankruptcy petition, it puts its affairs under the scrutiny of a court. Instead of the company negotiating with its creditors, vendors and others directly, it needs the court’s approval to make any deals. That in turn can prompt events that the company may not have wanted. It also takes decision-making power away from the company and, in many cases, gives more control to creditors. Related: Two bankrupt big-name retailers make brick-and-mortar comeba…

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