30 FEBRUARY 2021 WorldWide Drilling Resource® Drilling Into Money Not Boring by Mark E. Battersby Bankruptcy: A Business Owner’s Survival Tool Filing for bankruptcy may be the best course of action for any debt-ridden drilling business, or its owner to take. Bankruptcy can provide breathing room to reorganize and move forward to profitability, or it can stop the bleeding that might lead to seizure of the operation owner’s or shareholder’s personal assets. When a business no longer has sufficient cash flow or credit to pay its debts or to operate its business, it can seek legal protection from creditors by choosing to file for bankruptcy under the U.S. Bankruptcy Code. There are several types of business bankruptcies. All are for the general purpose of giving the troubled business, or the owner of a failed business, a financial “fresh start” in exchange for some level of debt repayment. No one wants or plans to file for bankruptcy, but it can offer the owners of struggling small drilling operations a chance to stay afloat. While not every business entity can file or benefit from each bankruptcy type, there are a number of general benefits including: *Extra time to reorganize. A temporary breather from debt payments and/or renegotiated contracts might be all that the drilling operation needs to turn itself around or survive the current economic crises. *A competitive advantage. The ability to temporarily suspend the operation’s debt-service obligations, pay only a portion of some current debts, and dismiss signed contracts can result in a more efficient operation than that of any competitors. *Decreased personal risk. Simply shutting down the operation doesn’t stop its expenses. Mortgage, rent, insurance, property taxes, security and maintenance costs, and other expenses called “carrying costs” will continue after closure. If the operation’s owner is personally liable for any or all of the business’s debts, he or she might lose their savings and/or home. Filing for bankruptcy will, at least under Chapter 7, formally end the business, stop bills from accruing, and end many personal obligations. *If a business continues to lose money, a bankruptcy can stop the outflow of cash for which an owner, partner, or shareholder might be personally liable. Filing for bankruptcy, whether it’s Chapter 11 or another option, all too often will turn out to be the best path to help a drilling business, and its owner, return to solvency. Naturally, a professional can expedite the process and chose the right bankruptcy option. Mark Mark E. Battersby may be contacted via e-mail to michele@ worldwidedrillingresource.com April Editorial Focus is Augers, Construction Equipment, and Micropiles. Do you have information that would make a great article? Contact Bonnie@ WorldWideDrillingResource.com To ease pain in your joints or muscles, rub some warming liniment and wrap the area with plastic wrap, which will increase the heating effect. For minor burns: mix baking soda and ice water; soak a gauze pad in it and apply to the burn. Repel gnats, mosquitos, and ticks by applying Vicks® VapoRub™ onto ankles, wrists, and neck before going out. Notable, helpful hints to live by.
RkJQdWJsaXNoZXIy NDk4Mzk=