Chapter 11 Bankruptcy Protection

DJ85 · 12 May 2019 at 20:44

I was wandering if anyone could help put it a bit easier than most things I have read. I don’t really understand what’s happening.
Basically it has came out that my work has filed for chapter 11.
Does this mean they are going under or most likely going under? Maybe closing? I know people will just say ask work but I’m never in there, but I will most likely have to to get the right answers.
Would it be time to start looking for a new job?

Meridian · 12 May 2019 at 20:58

Your parent company is American I take it? Because AFAIK Chapter 11 is a US thing.

Slam62 · 12 May 2019 at 20:58

Chapter 11 is American isn't it? It's different to going bankrupt, it's protection from creditors.

DJ85 · 12 May 2019 at 21:07

Yeah the main company is international. Based Houston, America. I work for the British department of it which is limited.

DJ85 · 12 May 2019 at 21:08

Slam62 said:
Chapter 11 is American isn't it? It's different to going bankrupt, it's protection from creditors.

So I’m safe enough just now? Everyone in work is going around saying there going bankrupt and even a few have put in there notices

Slam62 · 12 May 2019 at 21:08

Your bit might be ok if its limited

DJ85 · 12 May 2019 at 21:12

There are a lot of divisions within the UK and I know that our division is the one that makes all the money and subsidises all the others who aren’t doing well. Going by news posts the company as a whole hasn’t recorded a profit any quarter in 4 years

Pipe & Slippers · 12 May 2019 at 21:26

Slam62 said:
Chapter 11 is American isn't it? It's different to going bankrupt, it's protection from creditors.

..with a view to some sort of financial restructuring, but as others have said, it's your American parent that has the issue

Jokester · 12 May 2019 at 21:28

If it’s the company I think it is based on your location, the Chapter 11 Bankruptcy is a good thing for you as ultimately it’s to stop the company going bankrupt in the British sense and instead allowing the company to restructure its debt with it’s creditors to allow it to keep operating.

DJ85 · 12 May 2019 at 21:31

Pipe & Slippers said:
..with a view to some sort of financial restructuring, but as others have said, it's your American parent that has the issue

I thought that but as I don’t really know anything about it, I can’t say but if it is that I don’t understand why folks here would leave there job in the UK base over it

DJ85 · 12 May 2019 at 21:36

Jokester said:
If it’s the company I think it is based on your location, the Chapter 11 Bankruptcy is a good thing for you as ultimately it’s to stop the company going bankrupt in the British sense and instead allowing the company to restructure its debt with it’s creditors to allow it to keep operating.

So basically restructure the company In a way that they will start to turn a profit? Payoffs/close departments that don’t make money etc? The department I work in is busier than it ever has been, I fact we’ve just took on people as it’s so busy and nobody is ever at home, luckily I’m 3/3. I’m not sure if I can name them but they start with W. And it has been in a good few articles online.........also the fact that nobody has mentioned it to us except what is online I don’t know if there’s a cause of concern or not

Jokester · 12 May 2019 at 21:42

David Flett said:
So basically restructure the company In a way that they will start to turn a profit? Payoffs/close departments that don’t make money etc? The department I work in is busier than it ever has been, I fact we’ve just took on people as it’s so busy and nobody is ever at home, luckily I’m 3/3. I’m not sure if I can name them but they start with W. And it has been in a good few articles online.........also the fact that nobody has mentioned it to us except what is online I don’t know if there’s a cause of concern or not

No, it’s to allow them to restructure their debt. They don’t need chapter 11 bankruptcy to re-organise the company to save money, they should have already done this or be in the middle of it just as a matter of good business practice.

I thought you were speaking about Bristows, as they’ve gone into chapter 11 recently! I know who you’re speaking about though.

Gerard · 12 May 2019 at 21:48

David Flett said:
I was wandering

Where abouts?

DJ85 · 12 May 2019 at 22:20

Gerard said:
Where abouts?

Everywhere haha

They haven’t done anything much that I can see except sell off some international assets but nothing that’ll even touch the debt amount. Probably a lot going on behind the scenes.
So basically they just do it to be official about it, and I take it the debtors aren’t aloud to ask for there money back while in chapter 11, is it written off or once they start making profits they have to start paying back?
I thought bristows would have been safe enough, there are only 3 heliports and they have just opened up a whole new building next door.

Pipe & Slippers · 12 May 2019 at 23:02

It's like a stay of execution for the top level company, while it reorganises itself. The creditors can't demand immediate repayment of their debts...it gives the top level Co some time to try and sort itself out

Werewolf · 13 May 2019 at 01:29

David Flett said:
I thought that but as I don’t really know anything about it, I can’t say but if it is that I don’t understand why folks here would leave there job in the UK base over it

Because all they're hearing is Bankruptcy, and not understanding the difference between the different US versions.

IIRC Chapter 11 is similar to calling in the administrators over here (but not as severe), whilst Chapter 13 (I think it is) is basically insolvency/full on closure.

Even if the company was going full on bankrupt IIRC as an employee you're pretty much at the top of the list of people to be paid, to the point the government will cover your wages to a certain point to ensure you don't lose out, so immediately handing in your notice is a bit of a rash move unless you've not been paid for a while or have another job lined up.

House · 14 May 2019 at 14:55

I worked for a company that went through chapter 11 back in 2000, it wasn't a fun experience, all the company credit cards were stopped company accounts for flights/cars and accommodation cancelled (I was on assignment at the time so hit pretty hard), eventually things were sorted out and the company was purchased by a competitor and things moved on. The UK employees weren't hit too bad, US employees lost pensions and savings, jobs, homes, the lot
I ran into a guy i worked with in 2000 a couple of years ago in Iraq and he was still working (at 77) because of everything he lost during the collapse. He didn't speak highly of our old CEO that's for sure.

DJ85 · 14 May 2019 at 23:44

Still no official word from work like an email to explain what’s happening or anything. Just have to wait and see what happens I suppose and keep up to date with the interweb.

BlueMerle · 15 May 2019 at 05:02

As others have said, chapter 11 basically keeps the wolves from the door for a time and allows a company to negotiate debt restructure with creditors. The outcome depends on several factors and can result in total dissolution of the company or a complete resurgence back to profitability, and everything in between.

There are many success stories and many failures. Chrysler was a success story and Sears wasn't.

Unless you're in a very senior management position, meaning among the top 10 execs in the company, it will be all but impossible for you to know or guess at the outcome.

Basically you have a decision to make. Do you like your job and are happy working there? Then perhaps you ride it out and see what happens. Are you unhappy and ready to leave? This would be a good time.

Best of luck to you.

DJ85 · 15 May 2019 at 05:22

Thanks for all The advice and knowledge I have a better understanding of it now.
I quite like my Job so I think I’ll stick it out and see how it goes.
Just keep my fingers crossed and hope the money men come good I suppose.