While there are several notable financial missteps that companies in New Jersey can make that ultimately require them to file for bankruptcy, there are other reasons why unsettling financial problems may occur that are sometimes out of their control. The ebbs and flows of supply and demand and the health of the economy are two factors that could contribute to a company’s financial demise even if they have made valuable efforts to secure their assets.
This is the case for Murray Energy which has long been admired as the largest private coal miner in the nation, but who is now facing bankruptcy with the decreased demand for coal. Though there are negotiations in place to allow the coal giant to receive financial support as it restructures agreements with its lenders, there is evidence of financial problems throughout the company. Lenders have not been paid on time and the company has been unable to pay some of its bills.
Recent reports show that the longtime CEO was replaced by another person although he has maintained a position as chairman of the organization. With visible threats to the coal industry, the Trump administration has vowed to revive the need for coal and help to boost its role in the nation once again. However, the bankruptcy filings for Murray Energy are being listed as critical by experts who say they are necessary in order to allow the company to remain in operation despite significant declines in the demand for coal.
If businesses are facing the likelihood of having to negotiate a bankruptcy deal, they may wish to hire an attorney to help represent their case. Legal professionals can offer alternative solutions to business leaders who wish to make bankruptcy negotiations as beneficial as possible for their organization.
Source: CNN, “America’s largest private coal miner files for bankruptcy,” David Goldman and Matt Egan, Oct. 29, 2019