Lane County residents who are experiencing financial difficulties may find relief by filing for Chapter 7 or Chapter 13 bankruptcy. Company owners can also take advantage of the protections and benefits that bankruptcy provides if they are going through a difficult time.
Recently, an Oregon-based data center company filed for bankruptcy protection after a major client withdrew its business. Peak Hosting filed for Chapter 11 bankruptcy, which is the type of bankruptcy that businesses would generally file for. The company also needed to downsize, laying off 135 employees. Peak Hosting reportedly began experiencing financial difficulties after the large mobile gaming company Machine Zone dropped the data hosting firm – a result of a power outage that rendered one of its most popular games unavailable for two hours a few months ago.
Representatives from Peak Hosting say that the bankruptcy filing was necessary in order to secure operations financing and fund a lawsuit with Machine Zone. Reportedly, Machine Zone broke the contract by failing to pay Peak Hosting $100 million for its hosting services. As difficult as this situation seems, Peak Hosting’s chief restructuring officer asserts that the company is now doing well and is able to continue serving its clients.
In much the same way as a Chapter 13 bankruptcy allows people to restructure their debt and pay it off in an affordable manner, business bankruptcy may give a company the time it needs to restructure its operations and get back on its feet. This may make the difference between continuing to grow as a business or closing the doors for good.
Source: OregonLive, “Oregon data center company files bankruptcy after $100 million ‘Game of War’ dispute,” Mike Rogoway, June 16, 2016