business bankruptcy
Colorado stock prices in the green after Monday’s frightful plummet
Debt has been the topic for nearly everyone these days whether they are individuals, business owners, economists, investors or federal government officials. Most people across the nation have faced the stress of debt in the past few years with record numbers of bankruptcy filings.
After the national debt was downgraded by Standard & Poor this past weekend, the United States stock market experienced one of the largest declines in the past several years of financial struggle. What could be considered a record one-day selloff on August 8, 2011 had nearly everyone with debt on their mind wondering about the future of the economy, including most Colorado business owners.
When stock prices plummet, it is never considered a positive event for a corporation and many business owners could be seen biting their nails after the stressful Monday. Although stock prices are certainly not back to where businesses want them to be, local Colorado businesses were amongst those who saw a small increase early this Tuesday morning.
By 9:00 a.m. Mountain Daylight Time, several Colorado based businesses including Crocs, Liberty Media, Molycorp and TW Telecom saw a slight increase in the prices of their stocks. In fact, the Dow was up 207 points to 11,017, which measures out to about 2 percent. The Nasdaq and S&P 500 tickers also showed numbers printed in green, coming in at over 2 percent.
Although the surprising increase came as a relief to people in Colorado, businesses continue to look for ways to restructure their debt with creditors as an alternative to filing for Chapter 11 and having the court do it for them or for Chapter 7, a complete liquidation of assets.
Source: Denver Business Journal, “Stocks jump in early trading; most Colorado shares rise,” Mark Harden, Aug. 9, 2011
Sick leave: Will Denver businesses be required to pay for it?
Sick leave is the topic of debate in Denver, Colorado at the moment with voting season just around the corner. Employees argue that businesses should be required to offer it, while business owners say that the requirement would “put [them] at a competitive disadvantage.” The sick-time proposal will be on the ballot this upcoming November.
While the new change probably would not directly cause many companies to file for bankruptcy, it is yet another cost that Denver businesses will have to factor during a time when profit margins are not always measuring in the positive range.
The sick-time initiative plans to force businesses to offer nine paid sick days to all of their workers employed full-time with an exception for businesses that have 10 or fewer employees that would only require them to offer five sick days. Part-timers would gain from the promises as well with one hour of paid sick leave for every 30 hours that they are on the clock.
One restaurant owner and its employees were interviewed to get a personal opinion on the issue. While the single moms who waitresses at the restaurant say it would really help with child-related emergencies, the owner said that it could actually have an adverse trickle effect.
According to the owner, requiring paid sick time would force restaurants to schedule more workers at one time to prevent being short-handed, which in turn would cut down on the tips that waitresses are able to earn.
“This is just another way to add on to the expense and discourage small business,” said the owner who regularly allows his employees to go home if they need to.
The Denver Metro Chamber of Commerce sees the initiative as a negative move for the city, but residents will have to wait until November to find out.
Source: Colorado 9 News, “Heated debate begins over Denver sick-time proposal,” Tara Meyer, Aug. 3, 2011
Borders set to ask court for liquidation approval
Borders Group Inc has been under bankruptcy protection since it filed in February, but now it looks as though the bookstore pioneer will have to officially close its doors. News of the possible closure has been passed through the media this entire week, but the corporation will officially ask the bankruptcy court today, Thursday, July 21 for permission to liquidate.
If the liquidation agreement were to be approved, it would provide somewhere between $250 million and $284 million which would be used to pay off as much of the debt owed to creditors as possible. Although the company would be liquidated, Borders Group Inc would retain the rights to its brand name and several leases that they hold. Those assets would then be auctioned off at a later undetermined date.
Liquidation was not the original plan for the company, but after a bidding deadline for the sale of nearly 30 store locations passed and the only possible deal fell through, the company’s hand was forced. The bookstore giant originally hoped that a private-equity firm called Najafi Cos would purchase the business for $215 million in cash and another $220 million in assumed liabilities. After the offer was announced, there was enough negative response and objection from several of the creditors with large amounts of money owed to them that the deal failed to be made.
As one of the largest business bankruptcies of the decade filled with record high filings, consumers and creditors alike await the decision of U.S. Bankruptcy Judge Martin Glenn that could close the 40-year-old business for good.
Source: Reuters, “Borders to seek court’s OK on plan to shut doors,” Nick Brown, 21 July 2011
CO loved ones can’t R.I.P. until Watson Memorial files bankruptcy
Watson Memorial Co. has crafted and carved headstones for family members across Colorado who wish to honor the memory of their loved ones for over 100 years. The company was founded over a century ago but unexpectedly turned off its phone and shut its doors this week after their financial stresses came to a head.
According to the Denver Better Business Bureau, customers who have placed orders and paid deposits can file a claim but refunds are not a guarantee. Filing for bankruptcy protection is not an option for the corporation until it is in good standing with the state. City tax manager Bruce Moore has tried to contact the business after it was declared delinquent by the secretary of state on October 1, 2008.
“A business cannot file bankruptcy or have any legal proceedings unless they are in good standing with the secretary of state,” said Rich Coolidge, a state spokesman. Watson Memorial owner’s sister hinted at pending litigation in Arapahoe County as a factor in the situation but declined to give any more information.
Several other Denver gravestone businesses have stepped in to help customers who have pending orders. While the neighboring competitors have agreed to match prices or offer discounts to those affected by the closing, headstones are not made in a day. The large stone pieces can take at least three or more months to craft preventing some customers from finding peace during a difficult time.
“There is a lot of anguish and anger right now,” said a competitor when discussing the shut down. “We will try to help those people as inexpensively as possible.”
Source: Denver Post, “Missing owner leaves Watson Memorial Company customers in limbo,” Caitlin Gibbons, 12 July 2011
Lack of capital forces business into Chapter 11 bankruptcy
In this bad economy, it is more than just individuals and families that are filing for bankruptcy. For some businesses, Chapter 11 bankruptcy is necessary to deal with their debts. Filing for bankruptcy, however, is not something that should be entered into lightly. Businesses and individuals need to consult with their lawyer before taking such an important step.
In Cleveland, Ohio, the Cardinal Fastener & Specialty Company, a manufacturing company for screws and bolts for wind turbines, has recently filed for Chapter 11 bankruptcy. The manufacturer filed after it reportedly was unable to find the necessary financing to get working capital. Although President Obama had previously visited the manufacturer and praised it for its commitment to renewable energy, the manufacturer has been unable to get sufficient funds from Wells Fargo.
According to IndustryWeek, Cardinal has been earning profits in this up-and-coming industry. Obama has also stated that the potential for the renewable energy industry is huge and has the potential to reduce unemployment. The problem, says Cardinal’s vice president and head of the manufacturer’s wind business, is stiff competition from the Europeans. The lower bids coming from European suppliers have reduced Cardinal’s workforce and forced it to seek out cost-saving measures.
Chapter 11 bankruptcy is often a daunting process. Those businesses that are unfamiliar with the filing process should seek out legal counsel to ensure they are properly filing and not making their situation worse. Simple errors in filing for bankruptcy could cause delays or even lead to criminal sanctions.
Source: IndustryWeek, “Wind Turbine Maker That Obama Praised Files for Bankruptcy,” Josh Cable, 1 July 2011
Frank McCourt dodges accusations blames Bud Selig for Chapter 11 bankruptcy
The Dodgers time in Los Angeles has been well spent, bringing home five World Series wins and nine pennants. Six Cy Young winners have called Dodger Stadium home along with numerous Hall of Fame inductees. Recently, however, the Los Angeles Dodgers have made the news due to the family drama of the team’s owner.
Ex-spouses Frank and Jamie McCourt have publicly battled over ownership of the All-American sports team for months, and the turmoil has had an effect on more than just their divorce settlement. The team filed for Chapter 11 bankruptcy protection on Monday, June 27, 2011.
While the media rights will, according to Dodger representation, “one way or another, generate enough value to facilitate a reorganization,” Frank McCourt has placed blame for the need to file on a decision made by Bud Selig, the Commissioner for Major League Baseball.
Selig had refused to approve a $3 billion deal between Fox, the television network and the team that was to last 17-years. According to McCourt, “He’s turned his back on the Dodgers, treated us differently, and forced us to the point we find ourselves today.”
According to the filings submitted to the U.S. bankruptcy court in Delaware, the team has liabilities that range somewhere between $100 and $500 million while they have claimed assets of approximately $500 million to $1 billion. Several of the players are some of the team’s creditors owed the largest amount of debt including former outfielder, Manny Ramirez who has not been paid approximately $21 million.
Dodger fans need not worry about the rest of the season. Under the terms of the bankruptcy, the team will be able to continue the normal day-to-day operations pursuant to a $150 million debtor-in-possession financing commitment.
Source: Market Watch, “Los Angeles Dodgers file for bankruptcy,” Shawn Langlois, 27 June 2011
Thursday kicks off Colorado’s Banning Lewis Ranch bankruptcy sale
We have been following the Banning Lewis Ranch bankruptcy for several months. The 21,500-acre parcel of land is located in Colorado Springs and comprises a large portion of the entire east side of the area. The property was supposed to be the location for a large number of residential homes and smaller commercial businesses.
The proposed expansion of the Pikes Peak area has been stalled due to financial strain for several years, but it appears that the property once again has the hope of being developed. The week-long bankruptcy sale of the property essentially began today, the deadline for bids to be submitted for purchasing the property.
According to a bankruptcy court judge, a closing on the property could occur as soon as June 30, 2011 to end the anticipation over who will control the large expanse of land. An advertisement ran on June 1 in the Wall Street Journal that listed the important facts related to the property including the positive aspects like its development growth possibility, having water, roads and other public improvements in place as well as the possible resources available on the property including mineral, oil and gas.
While the natural reserves were listed as an asset, allegedly only bids with proposed development have been submitted. The court has made it clear that bids would be accepted on the undeveloped 2,400 acres to the north where homes have already been built, not just on the 18,000 acres of completely undeveloped land.
Although the deadline for submission of bids will pass today, the future of the huge parcel of real-estate remains unclear.
Source: The Gazette, “Bids on bankrupt Banning Lewis Ranch due Thursday,” Rich Laden, 22 June 2011
Perkins, Marie Callender’s file for Chapter 11
Famous for its pies and all-day breakfast, Perkins & Marie Callender’s Inc. filed for Chapter 11 bankruptcy protection this week, citing the poor economy and rising food prices for its loss of profits. As part of the process, 65 out of 600 stores have been closed throughout the country. Some restaurant patrons were reportedly kicked out of stores mid-meal because of the closings.
Unfortunately, the bankruptcy documents filed with the court estimated that 2,500 jobs will be lost nationwide because of the closings and other changes within the company. However, the company’s restructuring plan under Chapter 11 hopes to save the remaining stores by turning ownership over to Minnesota-based Wayzata Investment Partners, which manages the funds holding the company’s unsecured debt.
The current president of Perkins & Marie Callender’s Inc., who has held the position since 2004, said in filed court documents that the company especially struggled in the states that were impacted the most by the poor economy and housing market crash such as Florida and California. The Marie Callender’s restaurants are primarily located in California, where 13 were closed.
In its petition for Chapter 11, the company listed its total assets at $290 million and said it currently owes $440.8 million in liabilities. Eleven of its affiliate companies were also included in the filing, and it was indicated that the company saw only $507 million in sales last year.
As part of the bankruptcy, all Marie Callender trademarks were sold to a company that is licensed to sell Marie Callender frozen food. However, Perkins & Marie Callender’s Inc. will still be able to use the Marie Callender name for its restaurants and bakeries.
According to its restructuring plan, the company will borrow as much as $21 million so that its remaining stores can keep operating while going through bankruptcy.
The Chicago Tribune reported that other restaurant chains, including Uno Chicago Grill pizza, Fuddruckers, Charlie Brown’s Steakhouse and Sbarro’s, have all recently used Chapter 11 bankruptcy to reorganize their debt and revitalize their businesses. Hopefully Perkins & Marie Callender’s will achieve this same success through the process.
Source: Chicago Tribune, “Perkins, Marie Callender restaurants in Chapter 11,” 6/13/2011.
Equity firms to buy Borders out of bankruptcy?
As the times change, so does technology. Unfortunately, in order to stay profitable, many industries need to keep up with the changes or they could be left in the dust. Such is the case for Borders Group Inc., which filed for Chapter 11 bankruptcy protection in February of this year.
The bookstore giant’s economic hardships are partly due to the gaining popularity of electronic readers such as the Kindle, by Amazon and the Nook, by Barnes and Noble. After its own failed attempt to release an e-reader and consistent poor sales, Borders closed 237 of its 642 stores in 2011 before filing for bankruptcy protection.
Reportedly, the company had been trying to reorganize its debts under Chapter 11, but after continuous losses it is now being said that the bankruptcy court will hold an auction to sell the company in effort to keep more stores from closing and to keep the business in operation.
Bloomberg reported that there are two private equity firms that are planning to make the opening bids on Borders. One firm is called Najafi Cos., which is based in Phoenix and just purchased French CD and DVD clubs from Bertelsmann AG, the biggest media company in Europe.
The other potential bidder is Gores Group LLC, a private-equity firm out of Los Angeles which is supposedly seeking at least half of Borders’s stores, Bloomberg reported.
“You have to have some strategy for buying Borders. The younger generation doesn’t walk into a bookstore to buy a book,” a Wall Street bankruptcy attorney told Bloomberg.
Regardless of who buys Borders, this might be the best option for the company, which started off as one used book store in Michigan operated by two brothers as they went through college and grad school. Selling the company could appease its creditors so that more stores do not have to be closed.
As you can see, Chapter 11 bankruptcy is much more complex than Chapter 7 bankruptcy and can bring different results for companies with the goal of keeping the business in operation while figuring out a way to pay back creditors.
Source: Bloomberg, “Najafi Said to Be Considering Buying Borders Book Stores Out of Bankruptcy,” Tiffany Kary and Lauren Coleman-Lochner.
Maker of Tori Spelling’s clothing line files for Chapter 7
Often times, businesses immediately turn to Chapter 11 bankruptcy as their only option when they run into financial woes. However, Chapter 7 bankruptcy is another option for businesses as well as individuals, and may even be the most appropriate route in some situations.
This week, it was reported that the former owner of a clothing design and retail company that had partnered with former 902010 star Tori Spelling to release her children’s clothing line, Little Maven, recently filed for Chapter 7 bankruptcy liquidation.
HS of Delaware LLC listed its property in bankruptcy documents that were filed with the court Thursday, stating that the value of its licensing agreement with the Little Maven line was “unknown.” Overall, the company reported that it possesses only $3,584.55 in assets and owes $39.4 million in debts.
Apparently, the clothing design and retail company called Hartstrings was sold by HS of Delaware LLC to a subsidiary of the children’s apparel company Parigi Group Ltd. in April. While a spokesman for the Parigi Group Ltd. Said that the Hartstrings brand is “fully operational” at this point in time, he said that Spelling’s Little Maven line had not been acquired by the company.
The bankruptcy process is very complex, but when a company is facing financial troubles, its management can often choose between filing for Chapter 11 and Chapter 7 bankruptcy.
Chapter 11 is often called a “reorganization” bankruptcy and usually results in the debtor purposing a plan to keep operating the business and pay back creditors with future income. The plan is then overseen by the people who are owed money by the business.
On the other hand, the purpose of a Chapter 7 bankruptcy is to liquidate the business’s nonexempt assets and to use the funds to pay out its creditors. These cases are overseen by a court-appointed impartial trustee.
Source: The Wall Street Journal, “Children’s Clothing Designer With Tori Spelling Line to Liquidate,” Jacqueline Palank and Katy Stech, 6/2/2011.
Another orchestra to play its way out of bankruptcy
Recently, we discussed how after filing Chapter 11 bankruptcy in April, the Philadelphia Orchestra announced that it has a new plan to keep entertaining and bring in a profit. Now it has been reported that the 75-year-old Louisville Orchestra has also submitted a bankruptcy exit plan after filing for Chapter 11 protection in December of last year.
Reportedly, the plan was submitted to United States Bankruptcy Court on Monday, one day before an extended deadline from the court had made it due. The plan describes how the orchestra plans to pay off its creditors, including contributions to its musicians’ pension plans, overdue rent to the Kentucky Center and two bank lenders.
Specifically, the orchestra has proposed paying the close to $43,500 it owes in contributions to the pension plans in full and paying $2,000 a month for 12 months for its use of the Kentucky Center. One lender, Chase Bank, has said that it will forgive half of its $350,000 secured claim and will take cash for the rest, and the other lender, Fifth Third Bank, will forgive most of its $155,000 secured claim.
Additionally, all unsecured creditors would receive 50 cents to every dollar they are owed under the plan. Attorneys for the orchestra said in court papers that this is the “best restructuring option available to the debtor and its creditors.”
“Any alternative, including any of which would force the debtor to remain in Chapter 11 for an extended period of time or to liquidate its assets, would seriously damage the value of the debtor’ business and could result in substantially lower recoveries for creditors,” the court papers said, according to the Wall Street Journal.
As you can see, there is hope for businesses after filing Chapter 11 bankruptcy. With the help of an experienced attorney, it is possible to come up with an effective plan to regain control over finances and become profitable once again.
Source: The Wall Street Journal, “Louisville Orchestra Files Exit Plan, Continues Union Talks,” Jacqueline Palank, 5/31/2011.
Colorado businessman sweeps bankruptcy auction for Windstar Cruises
Ambassador International, a prominent maritime travel company, filed for bankruptcy in December 2010. Recently, the company announced that it will be using the Chapter 11 process to sell Windstar Cruises to a wealthy Colorado business owner, Phillip Anschutz. Anschutz and his family have a long legacy in the Colorado ranching and oil-drilling industries. Anschutz Corp. is reportedly buying Windstar Cruises for almost $40 million dollars.
The deal was finalized last week as Anschutz Corp. unexpectedly entered the Windstar Cruises bankruptcy auction. Other companies, such as Whippoorwill Associates had also expressed interest in the company, but the Bankruptcy Court judge believed that Anschutz’s bid was in the best interest of the Windstar’s creditors, customers, and employees.
When a cruise line goes bankrupt, the Federal Maritime Commission can provide a total of $1 million dollars to cover refunds for pre-paid passengers. However, this amount is almost never sufficient to cover all of a line’s customer liabilities, leaving many disgruntled consumers out of luck.
Reports show that if Windstar needed to cancel their service, they would owe up to $19 million dollars in deposits and claims. The Bankruptcy Court judge overseeing Windstar’s auction felt that Anshcutz Corp.’s stable financial state would prevent the need for a mass customer refund.
Anschutz Corp. has created a new company called TAC Cruises to manage Windstar’s assets. Although it remains unclear whether or not TAC Cruises will make significant changes to the Windstar line, it appears as though no trips will be canceled during the transition. TAC Cruises also made an announcement clarifying its promise to fulfilling Windstar’s outstanding commitments to the company’s creditors and customers.
Source: Fox Business, “Favorable Tailwinds for Windstar Cruises.” Paul Motter, 20 May 2011
Banning Lewis Ranch debate continues as bankruptcy sale is approved
As part of our blog, we’ve been following the Banning Lewis Ranch bankruptcy story. Banning Lewis Ranch is a large 21,500-acre complex in Colorado Springs. The companies Banning Lewis Ranch Co and Banning Lewis Ranch Development I and II submitted a Chapter 11 bankruptcy petition last October in Delaware where the businesses are incorporated. Late last year, we discussed the efforts by Colorado Spring officials to have the bankruptcy case relocated to Colorado in light of the large role the ranch plays in the community.
Although Colorado Springs officials never succeeded in moving the bankruptcy case to Colorado, the petition has made significant strides through the Delaware Bankruptcy Court. Last April, facing growing pressure from its creditors, Banning Lewis Ranch Co. petitioned the court for permission to sell the Colorado Springs property through a bankruptcy auction. This week a Delaware judge approved the petition, but must still consider an objection filed by the city of Colorado Springs which aims to block the sale.
In 1988, Colorado Springs officially created an annexation agreement with the Banning Lewis Ranch, which explains the city officials’ strong interest in the future of the property. The original agreement states that owners of the ranch have certain responsibilities to the city-such as providing roads and public services on their property-but a sale may alter these provisions.
Colorado Springs officials claim that 180,000 city residents could eventually reside on the Banning Lewis Ranch. The recent ruling permitting the sale of the ranch does not address the city’s concerns, but some observers believe that a Delaware bankruptcy judge will rule on the matter if the new owners attempt to change the original annexation agreement.
Source: The Gazette, “Judge gives green light to Banning Lewis Ranch sale.” Rich Laden, 24 May 2011
Washington Mutual reaches tentative agreement with shareholders
As part of our blog, we’ve been following Washington Mutual’s bankruptcy case and providing updates on new developments as they occur. Recently Washington Mutual’s creditors and shareholders reportedly came to a decision which would bring the company’s reorganization plan one significant step closer to approval.
Washington Mutual-formerly one of the nation’s leading savings and loan institutions-was seized by bankruptcy regulators in 2008 and bought out by J.P Morgan Chase and Company. Washington Mutual then began to negotiate a Chapter 11 reorganization plan with J.P. Morgan, their creditors, shareholders and other key players. Just as it looked as though a concrete plan might be reached, several shareholders blocked the settlement on accusations of insider trading.
In order to continue with their Chapter 11 plan, Washington Mutual executives had to settle this dispute and secure the support of their shareholders. Recently, the company reached an agreement with their creditors which will allot additional Washington Mutual shares to the concerned shareholders. The shareholders will receive this bonus once the company is no longer under bankruptcy protection.
While Washington Mutual’s Chapter 11 plan appears closer than ever to becoming a reality, the settlement is still awaiting official approval from US Bankruptcy Court. As part of the plan, the company’s creditors stand to receive over $7 billion dollars.
This bankruptcy case has captured the attention of the nation since 2008 because Washington Mutual is the largest US bank to declare bankruptcy. If it can emerge from its financial troubles, Washington Mutual could stand as a powerful example of a business’ ability to recover from bankruptcy.
Source: Bloomberg, “WaMu, Shareholders, Biggest Creditors Said to Settle Reorganization Fight.” Steven Church and Linda Sandler, 20 May 2011
More Music Related Bankruptcy News
It isn’t just the city of brotherly love where the arts are having a difficult time making ends meet. The very popular and incredibly talented Syracuse Symphony just filed for chapter 7 bankruptcy protection early last week. The bankruptcy seems to be moving forward and a meeting with creditors, including season ticket holders for the concert series, is already scheduled. In light of the terrible news of the bankruptcy filing and a number of lay offs the musicians are still trying to make the best of what seems to be a very bad situation by attempting to schedule shows during the summer to fill the musical void that will be created by the absence of the symphony.
Businesses, individual, celebrities, athletes and major organization are all susceptible to suffering financial problems. Bankruptcy isn’t always the best possible solution for every situation where financial problems exist though. Taking quick action and consulting with an experienced Colorado bankruptcy attorney as soon as financial problems become evident is the best way to solve financial problems before they become a full blown crisis.
An experienced Colorado bankruptcy attorney will likely be able to provide you with a number of potential options for clearing up your personal of business related debt. By hiring a qualified financial professional like a Colorado bankruptcy attorney at the very first sign of financial problems you will be able to ensure that you embark on the very best possible path for clearing up your financial problems and that you’ll will be free of excessive financial obligations and problems as soon as possible.
Even Professional Sports Teams Aren’t Safe from Bankruptcy
You would think that with ticket prices ranging from around twenty dollars to well over fifty dollars a piece in a park that seats tens of thousands of people and outrageous amounts of merchandise being sold at the stadium, in stores and online that sports teams would make more than enough money to remain profitable. Apparently even the largest titans of professional sports can’t always escape financial problems though as the owner of the Los Angeles Dodgers is considering taking the team into bankruptcy in order to retain control of the franchise.
Financial problems can affect just about any type of business or any individual at any given time and if those problems aren’t handled promptly and appropriately they can quickly get out of control. The best approach for dealing with financial problems is to consult an experienced Colorado bankruptcy attorney as soon as problems become evident.
An experienced Colorado bankruptcy attorney will be able to evaluate your financial situation in order to determine the most appropriate plan of attack to resolve your debt. It doesn’t matter if you are an individual, a couple or a small or medium sized business – an experienced Colorado bankruptcy attorney will be able to suggest viable options for eliminating your financial problems.
Bankruptcy may very well be your best option when your finances start going south, but there is also a chance that other solutions could prove more effective. Reach out to an experienced Colorado bankruptcy attorney in order to get information on all of the potential options so you can make the most educated decision regarding your finances.
Keeping Operations Going During Bankruptcy
The Philadelphia Orchestra has been struggling financially for sometime, so much so that musical mainstay in the city of brotherly love has filed a petition for chapter 11 bankruptcy protection. The amazing musicians may be down financially, but recent actions prove that they are certainly not out. The Orchestra will continue playing concerts for the remainder of the 2011 season despite the fact that the final curtain may close once the bankruptcy proceedings have been finalized.
Filing a petition for bankruptcy doesn’t always necessarily mean that a business will have to cease operations. Depending upon the specific details of the situation, the level of secured and unsecured debt and the level of income some business may be eligible to continue on with operations while taking the necessary steps to clear up debt with their creditors.
If your business is experiencing financial difficulties you should reach out to an experienced Colorado bankruptcy attorney as soon as possible. A Colorado bankruptcy attorney will carefully examine every detail of your business and personal debt in an effort to provide you with every possible avenue of debt resolution. Once all of the possible options are presented your Colorado bankruptcy attorney will help you weigh the pros and cons of each so you can select the most appropriate course of action for making your business debt free. With a Colorado bankruptcy attorney you’ll ensure that you are on the fastest and most effective path for repaying your creditors and that you’ll be debt free in as little time as possible.
Borders Determined to Survive Bankruptcy
One of the countries largest book sellers was forced to file for bankruptcy protection earlier this year but despite taking more than fifty million dollars in losses since February and having to close hundreds of stores as part of reorganization, the CEO says that company is determined to continue operations. A new business plan for a smaller, stronger and more profitable Borders was presented to publishers last week and the company will know if they have the support they’ll need to move forward by the beginning of summer.
Having to file for bankruptcy protection is both daunting and frightening, but even financial problems that are serious enough to file a bankruptcy can be resolved. The best way to approach financial problems is to seek out the advice of a qualified professional as soon as problems become evident.
A Colorado bankruptcy attorney will be able to take an in depth look at your current financial situation and present you with the best possible options for resolving your debt. Even if filing for bankruptcy protection isn’t necessarily the most appropriate option for your financial situation a qualified Colorado bankruptcy attorney can help to point you in the best direction.
Enlisting the help of an experienced Colorado bankruptcy attorney will help to ensure that you embark on the right plan to help alleviate your financial problems as quickly as possible. Making the best choices for debt resolution and starting your debt resolution plan as early as possible are the best ways to minimize the stress and headaches that often come with financial problems.
Chrysler Profitable Again Following Bankruptcy
It only took two years after having filed for bankruptcy protection for the Detroit based auto manufacturer to post a profit. After losing nearly two hundred million dollars in the first quarter of 2010 and posting losses of more than six hundred and fifty million total in 2010, Chrysler posted earnings of just over one hundred and fifteen million dollars in the first quarter of this year. In addition to this being the first quarter that the auto manufacturer posted a profit in a quarter since the bankruptcy protection filing it is the first quarterly profit posted since 2006.
While most small businesses can’t even fathom posting earnings of over a hundred million dollars or losses exceeding six hundred million, this news from Chrysler does show one thing – that success after bankruptcy is a possibility. Going through financial problems with your business can be utterly devastating, but it doesn’t always necessarily mean the end of the road.
If you are going through financial problems with your small business you should reach out to an experienced Colorado bankruptcy attorney as soon as possible. By enlisting the help of an experienced Colorado bankruptcy attorney early on you can work to eliminate your business debt before it becomes an even larger problem.
When it comes to dealing with business debt it is much better to attack the issue with the help of an experienced professional, like a Colorado bankruptcy attorney, rather than hoping the situation will rectify itself. By hiring a professional you can ensure that your debt resolution will be handled properly and that your business will be debt free as soon as possible.
GM leaves bankruptcy woes behind with impressive profits
General Motors Company could be on its way to becoming one of the most high-profile bankruptcy success stories in America. Currently reports place GM in the second highest slot for motor vehicle sales worldwide and the company triumphantly reported its fifth consecutive quarter of profit growth.
General Motors filed for Chapter 11 bankruptcy protection in the summer of 2009 after a harsh economic climate drove the company into the red. At the time, GM’s bankruptcy petition created serious concerns for the well-being of the American economy since it was seen as an indication of the fall of the American auto industry. Under President Barack Obama, GM received a large government bailout which helped the company leave Chapter 11 and get back on its feet.
Since the bailout, GM’s chairman and CEO claims that company has refocused on targeting the future of the car industry, including producing more fuel-efficient models. The company also conducted a thorough cost analysis and decided to cut some of its less popular brands such as Pontiac, Saturn, and Hummer.
A significant portion of GM’s sales growth is occurring international, especially in locations such as China and Europe. However, GM is also performing well on the domestic front and retains its title as the most profitable domestic auto manufacturer. Ford Motor Co ranks second in US sales and has also seen a 22 percent profit increase during the first quarter.
A few short years ago, the US auto industry was in shambles, but now the future looks promising for companies such as General Motors. While certainly not out of the woods yet, GM managed to turn its financial situation around, in part because of the assistance the company received under Chapter 11 of the US Bankruptcy Code.
Source: International Business Times, “GM, after bankruptcy, has 5 straight quarters of profit.” 9 May 2011