As many New Jersey business owners know, running a business is no small task, especially in a struggling economy. Owning a business is not cheap, and sometimes the expenses simply become too much. This seems to be exactly what happened with a nuclear waste storage facility when it reported debts that were five times greater than its assets.
New Jersey readers may be interested to hear that the company that has filed for Chapter 7 bankruptcy protection was responsible for the storage of one million pounds of low-level nuclear waste, mostly in the form of scrap radioactive material. Because the business closed its doors on May 18, a government radiation safety officer is staffing the facility to ensure that safety standards are continuing to be met.
In its Chapter 7 bankruptcy filing documents, the company stated that it had debts up to the amount of $50 million. This was a stark contrast to the less than $10 million in assets listed. There were no details in the documents as to the specific debts that the company owed. These details may come in documents that the court has ordered the company to provide expeditiously.
Though the company that filed for Chapter 7 bankruptcy protection in this case had a unique business, the need to discharge debt is not that different from the situation that many face in New Jersey. The significant difference between the debts owned and the assets held may have caused the company, like other individuals and entities, to determine that they could not recover financially on their own. When that happens, turning to bankruptcy may be a good option to confront obligations that have spiraled out of control while laying the groundwork for a fresh financial start.
Source: Bloomberg, “Bankrupt Nuclear Waste Firm Impact Services Gets Deadline,” Phil Milford, May 28, 2012