The contractor that built the Florida International University (FIU) pedestrian bridge which collapsed in 2018 has been given the go-ahead to restructure its business under Chapter 11 bankruptcy rules.

MCM (Magnum Construction Management LLC ) and previously known as Munilla Construction Management, revealed in its bankruptcy filing it was in the red even before the bridge collapse, concluding 2017 with $8 million in losses

Judge J. A. Cristol in federal court in Miami on March 6 reviewed the bankruptcy filing which resulted from the tragedy where six people were killed and eight were injured. Victims are suing the company for damages.

MCM’s news release relating to its Chapter 11 filing

MCM attorney Jordi Guso told court that a series of events had led to MCM’s decision to file for reorganization in order to continue its operations.

The company has been named as a defendant in 18 lawsuits relating to the FIU bridge failure. As well, the business lost a lucrative Texas project, it cannot bid on Florida Department of Transportation projects and has limited access to new financing.

The Miami Herald reported that Guso said MCM is asking four insurance companies holding policies on MCM’s work to cover at least $42 million and up to $54 million in damages. Attorneys for the victims say they’ve accepted the $54 million cap as part of large settlement negotiations, the newspaper reports.