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In the Email they explained that they were approached with an offer to buy the company several months ago and the terms of the sale have now been agreed upon. Apparently one of the terms of the sale is to restructure their legacy debt so it will no longer be a burden on the business and this is why they filed Chapter 11 Bankruptcy.
Although laden with legacy debt, Earth Class Mail maintains that they are a profitable business and there will be no need for any employee layoffs as part of the restructuring.
You can read the Email Earth Class Mail sent to its users by clicking here.
Chapter 11 Bankruptcy allows a company to continue operating while it restructures its debt under court supervision. Most notable companies who recently entered and exited Chapter 11 Bankruptcy include General Motors Corporation, Lehman Brothers and Delta Airlines. I will be keeping an eye on Earth Class Mails Bankruptcy and the sales of the business and will keep you updated.