Control Communications filed Bankruptcy
A southern florida-based company, Control Communications, has filed for bankruptcy in a surprising turn of events considering that it has been one of the company's most profitable years. Control Communications filed for chapter 11 bankruptcy and is attempting to restructure and solve incoming cash problems. Attorney Robert Furr says that the source of the company's issues stems from delays involving a deal with the Broward County Department of Aviation.
Control Communications had an existing contract in place to install an aviation system for the Broward County Department of Aviation, however the deal has been delayed many times due to accused negligence on the part of the department. The choice to file for chapter 11 bankruptcy comes at a surprising time, Control Communications has been having one of its most profitable years to date. Over the last seven months, Control Communications has grossed over $2 million in revenue. This goes to show that even successful businesses need to be wary of debt, as one delayed deal can bring the whole ship down.
The company has plans in place to downsize in restructure in order to more effectively pay off debts owed. They also have plans to turn down offers for contracts that are too large to manage efficiently as a means of reducing the company's overhead costs. It is up to the creditors to determine whether or not they accept the company's restructuring plan. At this time it seems unlikely that Control Communications will be able to repay the debts owed. The largest creditor to Control Communications is Motorola and they are owed upwards of $600,000.
Many people are surprised to learn that a company bringing in over $2 million a year is capable of being forced into a situation where they need to file for bankruptcy, however it is surprisingly easy for a company of this size to crumble under the pressure of delays and increasingly high overhead costs. The key factor in this situation is and continues to be reducing daily overhead to be able to continue operation while paying off the immense debt accrued by the company.
As it stands, the daily overhead for continued operation of Control Communications is too large to continue running the company and to be able to successfully pay off debts, and as such bankruptcy is the only option available. Filing for bankruptcy is not an option taken lightly, as there are numerous financial and legal ramifications for doing so. The future of the company is up in the air as they wait to hear from the creditors about whether or not the restructuring plan has been accepted. Regardless of the outcome of the creditor's decision, Control Communications has some tough decisions to make in the coming weeks and months.Bankruptcy Attorney