Posted March 12, 2018 05:14:08Allstate, the largest employer of employees in Louisiana, filed for bankruptcy protection Thursday and has been on the brink of bankruptcy since the summer of 2018.
The company’s bankruptcy filing was part of a deal to save the company $8 billion in debt.
But Allstate is also facing the possibility of having to close several plants, and the company is still negotiating with creditors to obtain another $7.5 billion to save it.
The company’s CEO, Scott McBride, told The Associated Press he was not optimistic about Allstate’s chances of surviving.
McBride said Allstate would continue to make good on its investments in its factories and in its workforce.
The bankruptcy filing is expected to take place in the next couple of weeks, and McBride said the company would be able to release some of its $5.8 billion of debt, which includes $1.8 million in loans.
Allstate reported $6.3 billion in net income last year, up from $4.8 bn in the previous year.
It reported $1 billion in profit in 2018, down from $1 bn a year earlier.
The latest filing is the latest in a series of bad news for Allstate, which has been a key player in the manufacturing industry for decades.
The conglomerate has been hit by two major financial storms in the past few years, one of which cost it $4 billion in losses and one of the other $2.3 bn, which included the $3.2 billion that it incurred in the recent financial crisis.
The bankruptcy filing for Allesas facility in New Orleans was filed Thursday.
McBreech has said he wants to return to business as usual, saying the company needs to keep its assets intact to be able continue operating.
He has not yet said whether he will keep a job at the company or return to other positions.
Allesas announced it had filed for Chapter 11 bankruptcy protection in September 2017.