The gorgeous $3.5 billion paradisiacal mega resort Baha Mar is in the news again. Since its construction initiated, there are travelers waiting for it to start. However, it seems this is not going to take place for some more time. It is because the mega resort has filed for Bankruptcy chapter 11 pertaining to the delay witnessed in its development.
For those of you unaware of the same, the Chapter 11 bankruptcy is filed in order to aid reorganization of businesses.
The following steps are pursued for the process as governed by the US laws:-
- The debtor or the creditor of an organization may file the Chapter 11 bankruptcy.
- As soon as the filing is pursued a stay is put in all the collections. This implies that the creditors cannot ask for paying the debt until there is any sort of modification in the process.
- The business, however, continues its affairs without any turbulence.
- The repayment amount is definitely lower than the original total debts.
- During the case, it is apt for the debtor to review the claims proposed by the creditor and object wherever feasible.
- If the reorganization plan is feasible the court confirms it. Once the confirmation is positive, the debts which existed before the confirmation date are discharged.
- And it is now, that the debtor will have to pay the creditor in accordance with the new reorganization plan.
- If the debtor is unable to propose a plan, the creditor can come up with the same.