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Company filedChapter 11 Bankruptcy

Posted by sconti_95 (My Page) on
Wed, Mar 18, 09 at 16:39

Having a company install thin pavers on my lanai and pool deck. Have not given any money, with the total amount due upon completion and my satisfaction. Saw in the local paper the company has filed Chapter 11 Bankuptcy, but the owner called me yesterday and said that everything was set to start the job Monday. Should I have anything to be concerned about as I have not given any money and will not until I am satisfied. Would be interested in knowing if anyone has had any experience with a similar situation. Thanks !!


Follow-Up Postings:

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RE: Company filedChapter 11 Bankruptcy

I wouldn't be too worried - they just restructure, reorganize and go on with business as usual. It should be fairly seamless for you as a consumer.

If they don't expect to get paid until they complete the work to your satisfaction you're pretty well protected.


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RE: Company filedChapter 11 Bankruptcy

I guess I might wonder if the company would be around in a year or two if I had problems after the initial installation. I might also wonder about any subcontractors who might not get paid and then end up with a lien on my property. Of course all of this could happen with someone who wasn't in bankruptcy.


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RE: Company filedChapter 11 Bankruptcy

"...they just restructure, reorganize and go on with business as usual. It should be fairly seamless for you as a consumer."

Well, not entirely. First, a BK Court & the company's creditors must approve a restructure plan. And, possibly, the issue of most concern in today's environment is whether the company is able to secure Debtor In Possession (DIP) financing. That is, under no circumstances, a given today.

If the contractor fails to pay his supplier for the materials and/or labor on your job those contractors may file a Mechanic's Lien against your property. Frankly, with so many contractors looking for work today, I'd find somebody else to do the job.

/tricia


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RE: Company filedChapter 11 Bankruptcy

duluthinbloomz4,gibby3000,and triciae:
Thank you very much for your quick response. As for the material,(12'square thin pavers,2000 sq.ft.)I am paying for them myself. Regarding the labor, I am going to examine that closely. As mentioned however, this could occur with any company.I have used this company before without any incidents,so hopefully the same positive results will occur. I have known the owner for a long time, so hope that is worth something.Again, thanks to each of you for your insight and advice. It is greatly appreciated.


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