In a dramatic turn of events, approximately 60 subsidiaries of business process automation firm Exela Technologies Inc. have filed for Chapter 11 bankruptcy in Texas, weighed down by a staggering $1.3 billion in debt. The move, which follows years of financial turbulence, includes a prearranged restructuring plan designed to stabilize the company’s operations and navigate its path forward.
A Financial Storm Years in the Making
Exela’s financial struggles have been brewing for years, exacerbated by a series of blows, including heightened industry competition, a 2019 credit rating downgrade, the disruptive impacts of COVID-19, and a crippling network outage in 2022. In a first-day declaration filed late…
