But it seems any company can file for bankruptcy if it owes money. A company even with positive cash flows can do it. One can always claim some hardship. There was a change in the bk code under GWB that made things harder for individuals but not corporations. I assume Trump filed for corporate bankruptcy in most of his cases. In one case, he simply didn’t make his interest payment, according to the first article I posted. How many companies can get away with that kind of stiffing?
Any company can file, just as any individual can. But that does not mean relief will be granted. Bankruptcy courts have the power to dismiss cases, and they do. They can also sanction false filings, recommend disbarment of lawyers who file them, and so on. It’s not at all uncommon for a company to file for relief under Chapter 11 if they miss an interest payment, because a missed interest payment can trigger a cascade of adverse creditor actions, and not just the creditor whose interest payment was missed. They can seize accounts, foreclose on assets, notify accounts to pay them instead of the company, shut down credit lines, demand immediate payment of other debts. One of the main functions of bankruptcy courts in Chapter 11 is to prevent the company from “freezing up” despite a good business and cash flow, and ceasing to function because of the actions of one or two creditors, and that’s very commonly the way it starts.
Quite possibly the main cause is when one creditor’s loan is short-term, but the usual treatment of the debt is long-term (i.e., gets “rolled over” routinely) and the creditor suddenly decides to liquidate the debt all at once. Sometimes, creditors who feel secure will even “roll over” interest that’s due, then suddenly decide they’re not secure and require immediate payment of the whole debt.
Companies don’t file Chapter 11 lightly, because, if nothing else, there is always the hazard of a creditors’ committee asking for, and receiving, management of the company. At best the court determines management compensation and requires periodic accountings. Some big and even medium size lenders have “workout teams” trained to take over management. Some will try to get control and turn management over to a company that wants to acquire the one that’s in trouble.
Overly-aggressive creditors are very often the cause of Chapter 11s, and creditors can even file them for a debtor themselves. None of it is a bed of roses. I spent part of my life as a Bankruptcy Examiner, and there are no secrets, nothing that cannot be critiqued, no limits on recommendations to the court to order sale of this, shutting down that. I have a friend who is a “Receiver” who gets hired by creditors’ committees to take over management of companies that file Chapter 11. “Examiners” and “Receivers” often act in concert, and it can be miserable for the debtor.
You don’t do it lightly.
But probably not! 
