Many Florida businesses and individuals alike are struggling in these tough economic times. In November of last year for instance, a Jacksonville-based marine and truck freight company filed for Chapter 11 bankruptcy. As part of the bankruptcy process, the company most recently filed a reorganization plan with the U.S. Bankruptcy Court.

The financial troubles of freight company Trailer Bridge started in 2008 following the launch of an investigation by the U.S. Department of Justice into alleged anti-competitive practices of firms providing shipping services to Puerto Rico. The investigation covered several firms, prompting class-action lawsuits against many of those firms, including Trailer Bridge. However, the company filed a motion to dismiss the lawsuits against it, which was granted by a federal court in 2010.

Despite their dismissal, the lawsuits nonetheless took a toll on the company, leading to its bankruptcy filing on November 16. Fortunately, with the recent release of its reorganization plan, the company now hopes to emerge successfully from Chapter 11 in March of this year. Under the plan, $82.5 million in senior notes that the company owes will be replaced with $65 million in new notes. The plan is currently pending approval by the court.

If the reorganization plan is approved by the court, Trailer Bridge hopes to be able to exit Chapter 11 bankruptcy in March having satisfied its financial obligations. The speed with which the company has been able to navigate the process underscores how Chapter 11 can be a vital tool in turning a company around. Other Florida businesses that are also facing financial hardship may consider consulting with an attorney about the possibility of filing for bankruptcy.

Source: Financial News & Daily Record, "Trailer Bridge Files Reorganization Plan," Mark Basch, Jan. 17, 2012.