We have an update on USA United Fleet’s bankruptcy. To recap, the Coney Island bus company had filed eight different Chapter 11 corporate restructuring cases (one for each firm overseen by Director William Moran).
The difference between a Chapter 11 and a Chapter 7?
Filing a Chapter 11 means a company is simply reorganizing. Management maintains control of the business as a debtor in possession and is overseen by the court.
In a chapter 7, the business ceases to operate and its assets are sold off in order to pay creditors.
The decision to convert spells doom for the future of United Fleet. However, this change could result in certain benefits for both owners and employees.
The conversion to Chapter 7 will affect the cases of each of the following companies:
We’ll keep you updated with more breaking news on United Fleet’s bankruptcy, as well as what it means for the company’s workers, as it happens. Please stay tuned.