Law Office of Ginger C. Cord, PSC. - Bankruptcy
Free Initial Consultation

Local 859-963-2073

Toll Free 800-762-6916

Call Today

Pursue A Bright Financial Future
Freedom From Debt Is On The Horizon

Former top company files for Chapter 7 bankruptcy

A company that saw its shares drop down to fractions of a penny has closed its doors for the last time, according to local business news. Kentucky residents who follow business trends may be familiar with CD International Enterprises, which filed for Chapter 7 bankruptcy in December 2017. So far, no public comment has been made by the company, but the bankruptcy should be well underway as of this report. 

According to the company's records, the Plantation-based CD International was on Business Journal's Top 50 public companies list in 2013, coming in at no. 45 on the list with estimated revenue of some $114 million. However, by 2016, things had taken a turn for the worse for CD, which listed only $82,614 in revenue for that year. By 2017, no revenue whatsoever was being generated. 

The company's leadership did not waste time trying to rectify the precarious financial position of the company by negotiating numerous business deals throughout 2016, but unfortunately it was to no avail. The company filed for bankruptcy in a local court on Dec. 7, whereupon the process of liquidating the company's remaining assets would have begun. The company lists $20 million in assets against $11.9 million in debts, mostly to the IRS. 

Chapter 7 bankruptcy is a solid financial move for this company. When the company's debts are high enough to rival their assets, it may be a good time to consider alternative debt reduction options, and Chapter 7 can be a very valuable tool in such a situation. As some Kentucky residents can attest, filing for bankruptcy frees the company's leadership from the specter of debt, allowing them to re-enter the marketplace on a firmer financial footing. 

Source: South Florida BizJournals, "Broward-based penny stock files Chapter 7 liquidation with $12M in debt", Brian Bandell, Dec. 22, 2017

No Comments

Leave a comment
Comment Information