At the end of February, Windstream Holdings – a Fortune 500 company and leading provider of network communications and advanced technology solutions – filed for Chapter 11 Bankruptcy in US Bankruptcy Court for the Southern District of New York.
ARS Technica states that the bankruptcy was spurred by a court ruling from February 15 that could cost Windstream hundreds of millions of dollars. The company said the bankruptcy will help prevent negative impacts on customers.
News reporters and financial experts saw the bankruptcy coming, but also remarked on how surprisingly fast it happened. Seeking Alpha reports, “The move was seen by many as inevitable; however, some have been shocked by the expediency of the filing.”
Regardless of its inevitability, we’re left to wonder if Windstream’s file for bankruptcy happened too fast. The sources who are questioning the timeline have a valid point. It’s not always a wise idea to rush into bankruptcy, even if you know it’s the eventual move you will take.
Can Rushing Into Bankruptcy Hurt You?
If you don’t consult with a qualified lawyer, rushing into bankruptcy can hurt worse than waiting for the opportune time. Why? Because declaring bankruptcy doesn’t mean your financing days are over. When a Chapter 11 bankruptcy for a business occurs, the debtor (in this case, Windstream) becomes the debtor-in-possession (DIP) and must then secure financing to help fund the operation and continue business during the period of restructuring.
Tips for Your Bankruptcy Case
Of course, most people have a quite different – and much smaller scale – situation on their hands when considering filing for bankruptcy for personal finances, or perhaps for a small business. And while rushing to file for bankruptcy and “get it over with” might seem tempting, sometimes timing is critical. It’s a good idea to talk to a seasoned bankruptcy lawyer to help you discover the best path forward that will maximize your recovery and minimize your losses.
If you’re considering bankruptcy for yourself or a business, don’t hesitate to reach out to the bankruptcy lawyer who truly wants to help! Stuart M. Nachbar, P.C. has been helping people with cases like yours for over 20 years and is here with compassion and competence to help you too! The Law Office of Stuart M. Nachbar can help guide you through the bankruptcy timeline that’s ideal for your unique situation, and help you understand what to expect when filing for bankruptcy and how to achieve your best possible outcome. Give us a call at (973) 567 0954 or contact us online today!
Law Office of Stuart M. Nachbar, P.C.
354 Eisenhower Parkway,
PO Box 2205,
Livingston, NJ 07039
Tel: (973) 567 0954
Fax: (973) 629 1294