Even though there is an increased demand for alternative fuel products, companies that provide them have been unable to maintain operations in a dismal economy. One such company was forced to file for Chapter 7 bankruptcy recently in Delaware. Last week the company, along with its partner in China, was notified that both operations needed to raise $40 million to $50 million to cover costs for a new manufacturing design. The U.S. based company realized that it simply could not raise that amount of money in time and decided to file for bankruptcy.
In the bankruptcy document filed last week, the company claimed assets of $240 million and debts of $25 million. This news came shortly after two other U.S. government backed renewable resource companies also failed. Both were forced to file for bankruptcy by the end of 2011 after their funding sources ran dry. Under Chapter 7 bankruptcy, the company will have to liquidate all of its assets in order to pay off its debts. If you are considering Chapter 7 as a solution to economic struggles you are dealing with, contact the Malaise Law Firmto secure guidance and help from a San Antonio bankruptcy attorney that can protect your best interests.