That's Business

Many persons who have been forced to file for bankruptcy realize that they were aware of the inevitability of the decision for very long time. They might have presented a brave front to their employees, stakeholders and family members. However, people will admit that, deep inside, they knew that bankruptcy was approaching very first and it would require a miracle to escape the same.

Nine out of ten persons quit their efforts to overcome the problem once they reach such a stage. Of course, if you are a scam and if you have worked like Enron or WorldCom, chances are high that you cannot avoid the harsh decision. However, if you are doing your sincere best and if you have not violated laws or the trust of your stakeholders, taking remedial action is possible even if you feel it is too late.

This may sound very difficult but you will have to inform your shareholders and your stakeholders as is possible. There is a possibility that you may face a flight of capital thereby accelerating the process.

However, do not thing that you can hide everything from everybody and yet tackle the problem of bankruptcy. Transparency is important. Rather than ending up in a scenario where people rue the fact that they were not even informed, you should try to create a situation where people are kept in the loop all the time.

Secondly, keeping in touch with a large number of persons and informing them of the prospect of bankruptcy will help you get more ideas. Bankruptcy means financial death of the organization.

Just as a person who is drowning will be clutching at straws, you never know which person may come up with that genius idea that can revitalize the organization and bring it back on a firm financial footing. If you fear the prospect of bankruptcy, it makes sense to create a committee of advisers to help you tackle the crisis.