Westgate Files Petition For Chapter 11
May 21, 2001
Grand Prairie TX (USA) – Westgate Fabrics, Inc has filed voluntarily a petition for Chapter 11 – bankruptcy – according to a company press release. With support from its primary lender, First Source Financial, the company plans to continue its operations while restructuring its finances.
Chapter 11 of Title 11 of the United States Code was adopted by Congress to enable a company to continue its operations while it restructures its financial affairs. The restructuring is accomplished through a plan of reorganization that is filed with and approved by the Court. Upon confirmation of the plan, the company's obligations are modified as set forth in the plan, and ideally, the company emerges as a financially stronger entity.
Chapter 11 of Title 11 of the United States Code was adopted by Congress to enable a company to continue its operations while it restructures its financial affairs. The restructuring is accomplished through a plan of reorganization that is filed with and approved by the Court. Upon confirmation of the plan, the company's obligations are modified as set forth in the plan, and ideally, the company emerges as a financially stronger entity.