Essay: Companies on the brink of bankruptcy
More often than not, companies experiencing major financial hurdles and are no longer able to sustain their workforce find themselves in the brink of bankruptcy. Bankruptcy law has been put in place in order to aid debtors in settling debtors and achieving an amicable liquidation of their assets.
Bankruptcy is rather complex in the fact that it may involve many interested parties especially in the liquidation of large organizations. In such instances it becomes necessary to create plans for compensation of employees and also protect their interests during the negotiations of such terms. However, chapter 11 of bankruptcy law showcases a different scenario where companies are allowed to continue operating without threats of lawsuits from creditors. In such cases, liquidation is not warranted.