Bowen Ten Cardani, PC

Two convenient office locations in Henrico’s West End and Ashland

Call Us For Your Initial Consultation

804-767-6850

Truland bankruptcy leaves construction projects on hold

Since July 2013, approximately 20,000 businesses have filed for bankruptcy. The Truland Group, a well-known electrical contractor, became one of those companies on July 23. The company filed for Chapter 7 bankruptcy in the U.S. Bankruptcy Court for the Eastern District of Virginia and many other companies in the area are feeling its effects. General contractors that had hired Truland to do electrical work in schools, condos and hotels are now forced to find new subcontractors.

Employees are also feeling the effects of the bankruptcy as checks have reportedly bounced. Experts have said that since Truland has filed Chapter 7 bankruptcy, it likely means that the company may not be able to meet its current financial obligations. It will likely have a hard time borrowing or raising money to pay those checks or finish projects that have yet to be completed. On the day before the company filed for bankruptcy, it sent letters of default to 14 companies due to financial difficulties.

Truland was the 10th largest electrical company in the country and had 1,000 employees nationwide. An auctioneer was reported to be at an office tower in Renton to take inventory in the event of a sale. If a company goes through Chapter 7 bankruptcy, some or all of its assets will be liquidated to pay creditors. Any remaining unsecured debt may be discharged.

Chapter 7 bankruptcy enables a company to liquidate its assets in an attempt to pay creditors. Businesses may decide to sell office space, a company truck or anything else that may be considered valuable. A bankruptcy attorney can help guide a client through the filing process.

Source: The Washington Post, "Washington region feels effects of the Truland bankruptcy", Catherine Ho and Steven Overly, August 08, 2014

No Comments

Leave a comment
Comment Information
Email Us For A Response

We’re ready to work with you.

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Bowen Ten Cardani, PC

Richmond Office
3957 Westerre Parkway
Suite 105
Richmond, VA 23233

Toll Free: 866-601-7371
Phone: 804-767-6850
Richmond Office Location

Ashland Office
9410 Atlee Commerce Blvd
Suite 2
Ashland, VA 23005

Toll Free: 866-601-7371
Phone: 804-767-6850
Ashland Office Location

Super Lawyers | K. Matthew Long