Media sources report that an audio company has recently filed for bankruptcy in the U.S. Bankruptcy Court for the District of New Hampshire. Audioplex, a maker of multiroom audio products, is expected to liquidate around $260,000 worth of assets as a result of the filing, including wallplates, volume controls, IR distribution products and speaker selectors.
Sources say that Audioplex has several major creditors, such as Bayview Loan Servicing which claims around $454,000 of the company's indebtedness. Bayview holds the mortgages on some of Audioplex's facilities in Tuftonboro. In addition, the company has $28,000 in liabilities owed to a law firm and $86,000 to two separate credit card companies. Comparatively, Audioplex listed nearly $802,000 in assets. The company declared bankruptcy on June 11.
Although there is a certain social stigma associated with filing bankruptcy, it can sometimes be a central component of business reorganization, particularly in cases where it might allow for improved business debt negotiations with creditors. While some creditors might initially appear unwilling to negotiate a company's liabilities, securing legal representation may help a business to make such arrangements. In some cases, commercial bankruptcy can be a viable option for eliminating debt and thereby allowing an organization to achieve a fresh start or pursue a different agenda entirely.
If a company is encountering financial difficulties, it may be beneficial to secure legal representation before deciding to file bankruptcy. An attorney may be able to help an organization to review their accounts to determine if there are alternatives to bankruptcy that have not been explored.
Source: CE Pro, "Audioplex Declares Chapter 7 Bankruptcy", Julie Jacobson, June 08, 2014