A company may file a federal bankruptcy court protection for different reasons. Bankruptcy helps entities that cannot pay their debts restart operations by liquidating their assets to settle all debt (United States Courts, 2021). Also, fill federal bankruptcy can help an entity to revalue its assets to reorganize its business operation or for court protection against taking any legal actions for failing to settle its debts.
Exxon should file chapter 11 of federal bankruptcy court protection to reorganize its operations to pay debts owed to the third party (United States Courts, 2021). The chapter outlines the procedures that Exxon should follow to file bankruptcy court protections.
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Procedure for Filling Chapter 11
Exxon must begin by filing a petition with the bankruptcy court that serves in the location or region where the debtor has a residence. The company should file a voluntary petition because it is the debtor that wishes to seek court intervention or appeal to declare it bankrupt and unable to pay its debt at a specific date. The petition must adhere to Form 1 of the Official form approved by the US's Judicial Conference (Pace University Law Library, 2020). Exxon must list all its assets and liabilities. The company must provide a list of its current revenues and spending. Subsequently, Exxon musty provide a list of executory agreements. Exxon must provide a statement of financial position and obligations.
Furthermore, Exxon must provide a good debt repayment plan developed by a certified debt control or counselor. The debt repayment must have been developed not more than sixty days for the time petition is submitted to the federal court (United States Courts, 2021). A voluntary petition prepared by Exxon should include all standard information about the company and the nature of the business activities it runs.
References
Pace University Law Liabrary. (2020, November 16). Research guides: Bankruptcy law: Federal bankruptcy law . Research Guides at Elisabeth Haub School of Law, Pace University. https://libraryguides.law.pace.edu/bankruptcy
United States Courts. (2021). Bankruptcy . https://www.uscourts.gov/services-forms/bankruptcy
