When a business is costing more than it brings in with profits, it's sometimes time to sell or to consider bankruptcy. By selling the property off, you can avoid staying in debt. With a bankruptcy, you may be able to sell for a lower price that is affordable to others while still eliminating any outstanding debts you owe.
A hotel group is aiming to sell a bankruptcy convention center in Arkansas. According to the Feb. 17 news, the owner of the Texarkana Hotels would like to sell the facility for $6.5 million.
The owner filed a motion to seek a bankruptcy from a judge on Feb. 10. The property already has a potential buyer willing to pay $6.5 million in cash.
The motion indicated that she will seek to convey tax benefit agreements between the hotel and the city's Advertising and Promotion Commission as well as the city itself. The city and commission both issued objections to the request, stating that the agreement with the owner created in 2009 states that tax benefits can't be conveyed without the city's approval. The hotel has been in bankruptcy for a year when MidSouth Bank attempted to foreclosure on the property.
When you own a business and find yourself in too much debt, sometimes selling off your assets is the best way forward. With a good offer, it's possible to persuade a bank to accept an offer, similar to a short sale, for the business, allowing you to eliminate your outstanding debts and move forward with a better financial future. Your attorney can help you understand the best debt solution for your situation.
Source: Northwest Arkansas, "Hotel group owner aims to sell bankrupt Arkansas Convention Center for more than $6.5M," Feb. 17, 2017