When economic conditions, industry events, or liquidity limitations force a company into a bankruptcy proceeding, financial reporting requirements and demands on the enterprise's resources increase exponentially. Many companies make the decision to seek protection under Chapter 11 of the Federal Bankruptcy Code as a means to restate or reduce unwieldy debt loads and change operational obligations.
The resulting headline-grabbing bankruptcy filings cover a range of industries and sizes. In this publication, we address relevant planning and stress points for companies to consider in preparing for the financial reporting requirements associated with the bankruptcy process. Given the associated increase in demands on company resources, a focused, proactive plan is the best approach for dealing with these new financial reporting standards and complexities.