Sotera Health Company (NASDAQ:SHC) faced huge accumulated debt during last years. Having debt on a company’s balance sheet is not necessarily a bad thing, as long as the company can manage its debt payments and maintain profitability. However, if a company takes on too much debt, such as Sotera did, it can become difficult to make payments and stay afloat.
Hence, with the currect financial situation, Sotera Health Company may face even bankruptcy.
Bankruptcy is a legal process through which individuals or companies who are unable to pay their debts can seek relief from some or all of their debts. Companies can file for bankruptcy under Chapter 11 of the US Bankruptcy Code, which allows them to reorganize their debts and operations while continuing to operate their business. Alternatively, companies may file for Chapter 7 bankruptcy, which involves liquidating assets to pay off creditors.
Bankruptcy is a serious matter and can have significant impacts on the company’s shareholders, employees, and other stakeholders. It’s important to note that the fact that a company is in debt or may be facing financial difficulties does not necessarily mean that it will go bankrupt. Many companies are able to successfully restructure their debts and continue to operate.
If you are considering investing in Sotera Health Company or any other company, it’s important to do your own research and consider a variety of factors, such as the company’s financial health, management team, industry trends, and competitive landscape. It’s also a good idea to consult with a financial advisor before making any investment decisions.