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Tomato grower in Florida opts to file for Chapter 11

In business, sometimes things do not go as planned. Like in life, there are ebbs and flows in the business world that just happen no matter what. When the business is making money and things are good, bankruptcy is of course the furthest thing from a business owner's mind. With that being said however, there is no way of telling when business might go sour and things just fall apart financially.

When this happens, it can be devastating for a business owner. Bankruptcy is not something that people generally intend to result when they start a business. However, bankruptcy is an opportunity for those in severe financial straits to right the ship.

In Bradenton, Florida, a tomato farmer had to file for Chapter 11 bankruptcy because of his financial situation. The farmer grows tomatoes among other things on his farms in Florida. Because the tomato business has been shaky as of late and the prices of tomatoes have declined in recent months, the farmer and his wife, who is also the secretary-treasurer and a minority owner in the business, had to file Chapter 11 in order to possibly save their enterprise. The couple faces an uphill financial battle but Chapter 11 will allow them to reorganize in such a way that they will be able to continue their business.

A Chapter 11 filing is different from other bankruptcy filings in that this particular filing allows for a debt reorganization. Because this is a legal process, the filing has to be approved by the court. Once the appropriate filings are made and all parties to the filing agree to it, then the bankruptcy can go through and the reorganization can begin.

Source: The Packer, "Florida tomato operations file Chapter 11 bankruptcy," Doug Ohlemeier, May 11, 2015

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