An injection-molding provider has filed for bankruptcy according to local business sources. Michigan residents may be familiar with Tarheel Plastics, LLC, which closed its doors earlier in October and has since filed for Chapter 7. The creditor meeting to discuss the particulars of the filing is to be held in early December.
Tarheel had closed its doors in mid-October after laying off 75 employees. This came on the heels of an earlier optimistic plan to hire on four dozen new workers and expand operations into a neighboring county. Unfortunately these plans did not come to fruition and the company was forced to scale back its operations.
The bankruptcy filing lists the company's assets at only $2.5 million, compared to an estimated $3.6 million in debts. The primary creditor is Michigan-based Crestmark Bank, but several other creditors are also waiting on payments, including a county tax department and an area chamber of commerce. It is hoped the Chapter 7 filing will allow the company to pay off its creditors through liquidated assets, and possibly have certain debts forgiven.
Michigan residents know all too well how deeply the recession has influenced American business and personal finance. A Chapter 7 bankruptcy filing is often the best choice for a struggling individual or business trying to get out from under a heavy load of debt, and a liquidation may lead the way to allow for assets to be turned into capital in order to confront addressing unmanageable debt levels responsibly. Filing for bankruptcy can be an effective tool in achieving a financial discharge while laying the framework for a more secure fiscal future.
Source: bizjournals.com, Tarheel Plastics files Chapter 7 bankruptcy, No author, Oct. 29, 2013