Chapter 11 bankruptcy protection was recently filed by an Indiana-based payroll processing business, Interlogic Outsourcing Inc., by interim president Daniel Wikel. The bankruptcy is an attempt to obtain much-needed financial assistance to continue operations during the search for a buyer. The filing was done on Saturday, August 10, in federal bankruptcy court in South Bend. The company, based in Elkhart, handles payroll and various human resources services for many thousands of clients across the nation. The company employs over 200 individuals.
Currently, the company is being led by consultants who were charged with restructuring after the business’s founder, Najeeb Khan resigned as CEO, amid legal woes. Khan was sued in federal court on July 9 for alleged fraud as well as breach of contract.
Wikel’s actions cite the financial ruins as directly related to the mishandling of monies and overdraft actions on the part of Khan. These actions have had direct negative impacts on their clients such as delays in payroll processing in addition to these companies learning that their federal and state taxes were not being paid even though the funds were withdrawn from their accounts.
According to the bankruptcy petition written by Mr. Wikel, Mr. Khan deliberately mishandled and mismanaged the company’s finances that has put the company in its current position.
Chapter 11 Bankruptcy
This form of bankruptcy is a means for insolvent companies to begin to reorganize so they can continue to operate and make money to pay their creditors. The Chapter 11 Bankruptcy Code will generally involve a corporation or partnership and those that file Chapter 11 can also seek relief through this code. Well-known corporations that have filed include:
- General Motors
- United Airlines
- Lehman Brothers
These are the most notable companies that are widely known to the public, but many times Chapter 11 is filed and the news does not report on it. In 2010 alone, there were 14,000 Chapter 11 filings that occurred throughout the United States. The process can take any amount of time as there is no limit. Most cases will finish up within months but it can take as long as two years to close.
Finding a Bankruptcy Attorney in Indiana
The decision to move forward and file bankruptcy is never an easy one for businesses or individuals. It does not feel good for any person or entity to have to acknowledge that they are in a position of financial woe that they cannot alleviate by themselves. The reality is that bankruptcy happens every day and you are not alone. Many unexpected situations can come up in life that put us in a position that we never would have thought we would be in such as divorce, medical bills, or failure of our businesses to name a few.
If you find yourself considering bankruptcy, you need an Indiana bankruptcy lawyer who deals with these cases on a consistent basis. My name is Christopher L. Arrington, P.C. and I understand these challenges. I will work with you to better learn about your situation. I will examine your case and discuss with you the many possibilities available. Do not hesitate to contact my Danville bankruptcy law firm at 317-745-4494 today.
As a caring Danville bankruptcy lawyer, I will guide you through the process and answer all of your questions.