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Popular pizza restaurant chain to exit bankruptcy

Debt relief for a business can be a critical financial tool for a company that is running into cash flow problems. This can occur when business is slowing down, debt interest payments are high or other problems with liquidity. Chapter 11 bankruptcy in Massachusetts can help with debt relief as a business continues operations and gets back on track. It can help ease relations with creditors and develop a repayment plan that will fit for both sides of the business.

Sbarro LLC, the pizza chain restaurant, filed for bankruptcy last March and has won approval from a judge to exit bankruptcy. The original plan allowed the company to auction its assets, but it received no bids. The new plan will ask its lenders to exchange $148 million in debt for equity in the business. Sbarro previously struck a $1.25 million deal with its unsecured-creditor group. The company had previously filed for Chapter 11 three years ago. The company blamed its current financial difficulties on a decline in mall traffic.

Chapter 11 bankruptcy can be a tool for companies to arrange their finances. Business bankruptcy has a variety of options in Massachusetts, so businesses have a lot of opportunity for success. The advantage of Chapter 11 is a business can continue its business operations and will remain in control of their property. The process can be quite complex, involving a variety of methodical legal preparations.

Business owners in Massachusetts and the greater Boston area have different options when their business is struggling. Business bankruptcy is a tool that can allow a restructuring for a transformation of business operations. Some businesses emerge from bankruptcy with stronger core operations and a better sense of the future of the business.

Source: WSJ.com, "Judge Clears Way for Sbarro's Bankruptcy Exit," Sara Randazzo, May 19, 2014

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