MicroAge Inc. announced this morning that it has moved into the next phase of its e-business services transformation. The company, which filed for reorganization under Chapter 11 of the bankruptcy code last week, told the media earlier this month that it planned to transform itself more into a B2B technology solution provider. Restructuring began in 1998.
Bankruptcy under chapter 11
The term refers to a debtor that keeps possession and control of its assets while undergoing a reorganization under chapter 11, without the appointment of a case trustee. A debtor will remain a debtor in possession until the debtor's plan of reorganization is confirmed, the debtor's case is dismissed or converted to chapter 7, or a chapter 11 trustee is appointed. The appointment or election of a trustee occurs only in a small number of cases. Generally, the debtor, as "debtor in possession," operates the business and performs many of the functions that a trustee performs in cases under other chapters. 11 U.S.C. § 1107(a).s
1. Time frame was too less to restructure them self virtually 2. To form a virtual infrastructure – difficult process 3. Costs required to set up...