For companies in New Jersey that are facing an uphill battle with recovering from financial loss, the future can seem incredibly bleak and hopeless. Fortunately, there are options to help failing companies regain a second chance at succeeding. Some of these options include refinancing debt, restructuring financial operations or turning the company over to another entity who is better equipped with the resources to nurse it back to health.
However, there are also situations where a company is unable to recover as it struggles to stay afloat with bankruptcy looming ahead. In a recent example, the briefly popular company MoviePass appears to be suffering an ongoing downhill battle with unsuccessful profits. In recent communications, the company has disclosed that it is not optimistic about its ability to continue operating without substantial offerings. As it continues to work through bankruptcy proceedings, new information has come to light that its shareholders are now suing the company.
Shareholders allege that MoviePass failed to provide honest information about its financial standing in the last several quarters. As a result, they contend that they were misled and subsequently have suffered losses. Shares of its stock are now trading at less than $1 each.
If a company is concerned about its financial future and is considering filing for bankruptcy, hiring an attorney may be a worthwhile investment. Legal professionals can provide education about other alternatives to filing for bankruptcy, but can also guide companies through that process if that is the solution they end up selecting.
Source: The Wrap, “MoviePass Parent Company Sued by Shareholders as it Continues to Bleed Money,” Trey Williams, Aug. 14, 2018