Jump to Navigation

Company needs manpower to finish bankruptcy filing

A judge extended until Sept. 29 a deadline for Truland Group Inc., one of the largest electrical contractors in the District of Columbia area, to turn over financial information as part of its Chapter 7 bankruptcy. However, the company may not have the ability to do so. There are reportedly no employees to help file the paperwork and the data storage company that it was using was never paid. Therefore, the needed information has not been made available to anyone.

While the bankruptcy trustee agreed to the extension, a representative from the U.S. Trustee Program was against it. He argued that the company should be more transparent and stop leaving creditors hanging. The representative also noted that other Chapter 7 cases have been dismissed for lack of transparency and access to financial records. The company's attorney has argued that the company is down to almost no cash and that has caused many of the issues with the bankruptcy.

The trustee that the company is working with may stop providing services if a deal cannot be reached to fund the liquidation efforts. Truland was financing the liquidation with $1.3 million in cash it had left on hand when declaring bankruptcy. However, that money is running short and an arrangement for the trustee to loan money and employees to finish the process has not been reached.

When a large company files for bankruptcy protection, it does not always mean that the company has no money in the bank. The process of filing for Chapter 7 generally involves the liquidation of assets to pay creditors. Business owners who are struggling with their obligations may wish to discuss their situation with a bankruptcy attorney, who can determine which best way to proceed.

Source: Washington Business Journal, "Truland given extension to file financial data despite lacking money or people to help", Daniel J. Sernovitz, August 19, 2014

Source: Washington Business Journal, "Truland given extension to file financial data despite lacking money or people to help", Daniel J. Sernovitz, August 19, 2014

No Comments

Leave a comment
Comment Information
Start Right Now

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close
Visit Our Bankruptcy Law Website Subscribe to This Blog's Feed
Office Locations

1115 Massachusetts Ave NW,
Washington, DC 20005
Phone: 202-559-1428

10512 Pohick Court,
Fairfax Station, VA 22039
Phone: 703-550-7030

6926 Seven Locks Road,
Cabin John, MD 20818
Phone: 301-890-4500

Toll-Free: 877-441-4076
Fax: 202-638-5858

Twitter link