By Gerri Elder
The number of businesses filing for bankruptcy in the U.S. has risen 46 percent from May 2007 according to a Reuters news report, and the number of commercial bankruptcies being filed is not expected to slow down any time soon due to the nation's poor economy.
A report by AACER, a database of nationwide bankruptcy statistics reported that there were approximately 5,233 commercial bankruptcy cases in May 2007 as compared to 3,589 in the previous 12 months. Commercial bankruptcy cases are different from personal bankruptcy cases as they are filed by corporations, companies or individuals that say they are running a business, as opposed to personal bankruptcies that deal primarily with consumer debts owed by individuals or married couples.
Bankruptcy data reports indicate that there is a trend for businesses and individuals to file bankruptcy in even greater numbers beginning in September and continuing through the fall months.
During May 2008, there were an average of 249 commercial bankruptcy filings each day, marking the highest rate of businesses bankruptcy since October 17, 2005 when the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) went into effect and tightened the restrictions on filing bankruptcy.
The struggling economy has pushed many businesses into filing bankruptcy this year. High gas and food prices have caused consumers to tighten spending as they attempt to avoid foreclosures and filing bankruptcy themselves, therefore less money is being spent and this is hurting many businesses. Despite the tax rebate checks that have been issued this year to promote economic stimulation, businesses are still filing bankruptcy in record numbers.
According to BankruptcyData.com, some companies that have recently filed bankruptcy and have upcoming bankruptcy hearings include:
Dura Automotive Systems, Inc. filed Chapter 11 bankruptcy on October 30, 2006 and the U.S. Bankruptcy Court has scheduled a hearing for June 5, 2008 to consider an appeal by James Korth who is a creditor and equity security holder of Dura Automotive Systems. Korth's appeal is in regard to the May 13, 2008 court order that confirmed the company's Plan of Reorganization.
ASARCO LLC filed Chapter 11 bankruptcy on August 9, 2005. The U.S. Bankruptcy Court has found that June 6, 2008 will be the final date that interested parties may file objections to the company's motion for an exclusivity extension.
Distributed Energy Systems and its wholly-owned subsidiary, Northern Power Systems, have filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court in the District of Delaware. The company is seeking court approval to borrow up to $2 million in secured debtor-in-possession financing from senior secured lender Perseus Partners VII. Chapter 11 bankruptcy is being used by the company in order to maximize the value of the company's assets and gain the time and legal protection necessary to complete the structured sale of two primary operating units.
The U.S. Bankruptcy Court approved the motion of Delphi and some of its subsidiaries and affiliates and issued an order authorizing DASHI to grant adequate protection to the Pension Benefit Guaranty Corporation in connection with certain anticipated inter-company transfers of repatriated funds in an amount expected to be up to $750 million.
Cornerstone Ministries Investments has filed a motion with the U.S. Bankruptcy Court seeking an extension of the exclusive period during which the company can file a plan of reorganization to September 8, 2008 and an extension of time to solicit acceptances until November 7, 2008.
Linens 'n Things' motion for a final order approving post-petition financing, authorizing the use of cash collateral, granting liens and providing super-priority administrative expense status, granting adequate protection and modifying the automatic stay has been approved by the U.S. Bankruptcy Court.
The U.S. Trustee assigned to the Frontier Airlines Holdings bankruptcy case filed an objection in the U.S. Bankruptcy Court to the company's motion for an order approving and authorizing a severance plan for certain employees of the company. The objection is based on the trustee's belief that the company has not met the burden of proof in the case.
The U.S. Bankruptcy Court has approved IdleAire Technologies' motion for an order approving sale procedures in connection with the sale of substantially all of the company's assets, approving the expense reimbursement, scheduling an auction and hearing to approve the transaction and approving the form and manner of notice thereof and establishing procedures relating to the assumption and assignment of executory contracts.
Gadget retailer Sharper Image Corp. and Florida-based home builder TOUSA Inc. are among other companies that have recently filed bankruptcy.
The U.S. Bankruptcy Court has given the green light to Movie Gallery, Inc. to get financing from lenders in order to pay its employees and vendors. The court approved access to $140 million and also granted the company permission to use the cash taken in during daily operations to keep the business afloat as Movie Gallery goes forward with its restructuring plan. Movie Gallery has announced that it plans to close 520 low-performance stores and has entered into the restructuring program to try to reduce the $1 billion in debts it incurred after purchasing the Hollywood Video chain in 2005.
Delta Airlines has sprung forward since it emerged from bankruptcy in April. The company must be doing something right, as it is reporting earnings quadrupled in its third quarter as sales rose by 10 per cent.
For the second time in less than ten years, Kitty Hawk, Inc. of Dallas-Fort Worth has filed for bankruptcy protection. The company and its subsidiaries, including Kitty Hawk Aircargo, have filed for chapter 11 bankruptcy protection. Kitty Hawk Aircargo handles close to 90 percent of the freight shipped in and out of Fort Wayne International Airport.
Oasys Mobile has emerged from bankruptcy protection and transformed itself from a publicly traded company into a privately owned business. The company, based in Raleigh, North Carolina, has filed for bankruptcy protection in July after it defaulted on $8 million in debts owed to two Pennsylvania investment firms. A U.S. Bankruptcy Court judge has approved the company's Chapter 11 bankruptcy reorganization plan which allowed it to come out of bankruptcy without any debt. Remarkably, the company made it through bankruptcy without laying off any employees.
Solutia, a leading glass and window product company, filed with the U.S. Bankruptcy Court a Fifth Amended Plan of Reorganization and related Disclosure Statement that has the support of all major constituents in its Chapter 11 case. Jeffry N. Quinn, chairman, president and chief executive officer for Solutia said, "This consensual plan of reorganization, which is supported by all of the major constituents in our case, will facilitate Solutia's emergence from Chapter 11 as a financially healthy company." At a hearing on October 19, 2007 Solutia will ask the Court to approve the Disclosure Statement.
Champion Parts, a motor vehicle parts and accessories company, has filed for Chapter 11 protection with the U.S. Bankruptcy Court in the Western District of Arkansas. Champion has said that they filed for bankruptcy "in order that it may reorganize its financial obligations and capital structure." Champion's primary lender, PNC Bank, National Association have sent the company written notice of various events of default under the loan covenants and agreements the company has made with the lender. PNC Bank, National Association has announced that they intend to seek an orderly liquidation of Champion Parts.
Court acceptance of a "prepackaged" bankruptcy plan for Bally Total Fitness should allow Bally to emerge from bankruptcy by September's end, reports the Chicago Tribune. The prepackaged plan, which reportedly required advance approval of bondholders, will allow creditors to get equity in the fitness emporium in exchange for forgiving Bally's debt. Investments apparently totaling $233.6 million dollars from Harbinger Capital Partners are central to the success of Bally's bankruptcy plan. Harbinger will be Bally's new owner.
Aspen Executive Air, also known as AEXJet, has filed for Chapter 11 bankruptcy protection, according to the Glenwood Springs Post-Independent. Despite as much as $100 million in liabilities, the private airline is reportedly planning on continuing service and will not eliminate any employee positions. The company allegedly released a report outlining plans to merge with another private airline carrier to help it continue operating, but did not offer a specific identity. Based in a tiny Aspen airport, AEXJet has marketed its nonstop flights to major American cities to wealthy travelers who want to avoid the hassles of commercial airlines.
Bayonne Medical Center, of Bayonne, New Jersey, is facing new restrictions on its bankruptcy budget, according to reports from newsday.com. The hospital, which filed for Chapter 11 bankruptcy protection in April, has been limited by a judge to spending money only on "medically necessary expenses," the report indicates. This means that the hospital is no longer able to use funds to compensate its bankruptcy attorneys. Authorities apparently believe that the judge who passed down this sentence did so in an attempt to encourage the state health department to offer more funding for the hospital. The executive officers of the hospital hope to negotiate a sale in the next few weeks. They reportedly do not expect any layoffs in the short term.
In what some sources are calling an "inevitable" decision, The SCO Group filed for Chapter 11 bankruptcy last Friday, after losing a lawsuit against IBM, according to central Utah's Daily Herald. Company shares reportedly hit 37 cents after the announcement Friday, down from a 2003 high of $25. The various suits and countersuits between SCO and IBM, Red Hat, Novell, AutoZone, and DaimlerChrysler involved disputes over appropriation of source code and began in 2003.
Holding company Coach Industries Group Inc., which invested in a variety of businesses, is prepared to sell its only remaining holding after filing for Chapter 11 bankruptcy protection last week, according to the Albany Times Union. Corporate Development, the company being sold, will most likely be purchased by a New York investment company, reports say. The approximately 30 current employees of Corporate Development are not expected to lose their positions.
Bombay Company, a home accessories chain, announced plans last week to file for Chapter 11 bankruptcy, reports the Houston Chronicle. Apparently, the company has been losing money for several years, and considers bankruptcy the best option to protect its assets. Reports indicate that the company will continue to pay employees and providers, provide workers' benefits, and accept customer returns and exchanges.
As the bankruptcy case of Northwest Airlines comes to an end, the lawyers involved find reason to grumble, reports the Detroit Free Press. A judge denied two law firms invested in the case $4.2 million in bonus fees, citing their $500 hourly rates as adequate compensation for their work. Apparently, had the bonuses been approved, it would have been at the expense of compensation and benefits for Northwest employees. The suit has already cost Northwest more than $120 million in fees and expenses.
Luxury shoe and accessory brand Charles Jourdan of France has filed for the French version of chapter 11 bankruptcy, according to Women's Wear Daily. The company was perhaps best known for its platform shoes, which played an integral role in the disco fashion scene of the 1970s. After reportedly letting go a third of its employees in 2002, the firm has been unable to reestablish itself in the world of style.
Sweet Traditions LLC, a franchisee of Krispy Kremes stores, filed for chapter 11 bankruptcy earlier this month. The company runs about 15 Krispy Kreme stores in the Chicago area, according to Associated Press reports. Lack of new products and lease disputes are apparently responsible for much of the financial difficulty currently faced by the company.
Heart medicine practice Cardiac & Vascular Surgery Associates filed for chapter 11 bankruptcy this week after payment of a lawsuit settlement was sought soon after trial, according to IndyStar.com. The company reportedly lost a breach of contract suit to one of its former practitioners, and was ordered to pay him nearly $500,000. The prompt collection efforts of the doctor's attorney have caused the company's need for Chapter 11 reorganization, according to the source. The company is said to be concerned that payment demands will interfere with business and patient care.
TRAC trucking company has left many of its drivers in the lurch this week, according to the Dunn County Times. After filing for bankruptcy last year, the company has reportedly closed up shop, and will not answer or return phone calls or emails. Many drivers are apparently stranded without paychecks or money for bus fare home. The bankruptcy filing is still pending, and it seems no one quite knows what has happened with the company.
Halo Technology Holdings in Greenwich Connecticut filed for Chapter 11 bankruptcy protection this month. Officials for the software company said its debt burden and other operating costs are the reason they decided to file for the bankruptcy protection. Employees can expect to be paid as usual and receive their same health and welfare benefits.
Less than one week after suspending operations, First Magnus Financial Corporation of Tucson, Arizona has filed for Chapter 11 bankruptcy. The national mortgage lender's assets are listed as $942 million and its liabilities are listed as $813 million on the petition filed in the U.S. Bankruptcy Court. Ninety-nine percent of the 6000 First Magnus employees were fired on Thursday. Even though the lender was not involved in the sub-prime mortgage market, it is still affected by the credit liquidity problem affecting the mortgage industry.
In Surprise, Arizona and all over the world, authors are wondering what will happen to their unpublished stories in the hands of bankrupt publisher Triskelion Enterprises. Several Triskelon authors are not allowed to search for a new publisher until the bankruptcy proceedings are completed. Kristi Studts started the company using e-publishing and currently has 100 international authors sold in Borders Books & Music and Barnes & Noble. As Kristi transitioned from e-publishing to paperback, her unpaid expenses increased and she was unable to pay some debts.
Quaker Fabric Corporation of Fall River Massachusetts filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court in Delaware last week. Almost all of the company's 930 employees were let go on July 2. The furniture upholstery manufacturer did not have enough financing to continue operations. It is expected Quaker will start a liquidation and sale of assets process.
In bankruptcy court papers filed Monday, Aegis Mortgage Corporation listed over $100 million of assets and more than $600 million owed to creditors. The lender fired 782 employees on August 7. The next day, Connecticut's banking regulator ordered Aegis to stop lending. Aegis is just one of the many lenders experiencing huge increases in loan defaults as the home loan market continues to crash.
The U.S, bankruptcy court approved the sale of assets for All American Semiconductor Inc. to Rock River Capital LLC and secured lenders. The semiconductor and electronic components distributor filed its petition in April and received approval in June. After incurring an $11.8 million loss in 2006 and receiving warnings from Nasdaq that its stock may be delisted, the company decided to maximize the value of the company by filing for relief under Chapter 11. The sale price of $15.2 million will not be enough to pay all of the company's outstanding debt.
Chicago's Millennium Park builder Harston-Schwendener and four affiliates filed for Chapter 11 bankruptcy. The petition filed in U.S. Bankruptcy Court listed debts of $75 million and assets between $20-50 million. The company was the original main contractor for the park but was fired and replaced by the city of Chicago in 2000. Steven Towbin, the company's lawyer, said the city failed to pay millions in fees owed to the companies thus forcing them into bankruptcy.
Pac-West Telecomm Inc. filed a Chapter 11 plan showing $66.4 million in debt and $53.9 million in assets. The Stockton, California based company plans to halt all operations in 25 states. The company was operating at a loss after a deal with VeriSign to build a nationwide VOIP (voice-over Internet Protocol network) failed. The plan would facilitate payment of secured property to Cisco Systems, Citicorp, Laser and Merrill Lynch. A liquidating trust will issued prorated interest of the remaining assets to unsecured creditors.
The tenth largest home loan lender American Home Mortgage filed for bankruptcy protection as a direct result of the declining sub-prime mortgage market. The lender let go 6,250 employees to reduce its payroll to just 750 employees while it continues to run operations. Deutsche Bank and JP Morgan Chase are listed as the company's two largest creditors.
Klinger Advanced Aesthetics Inc., a salon and day spa operator realized it was not bringing in enough revenue to service the company's outstanding debts. The company filed for Chapter 11 bankruptcy protection in Newark, N.J. Along with six affiliates, Klinger will seek financing to reorganize the business.
Idaho developer Charterhouse Boise Downtown Properties filed a Chapter 11 bankruptcy petition after the 34-story Boise Place tower project failed. The developer defaulted on a $2.6 million loan and has a $500,000 lien against the project form his architect. Owner Gary Rogers isn't the first to have trouble with this property. Previously, Rick Peterson tried to build a 25-story building on the same property. In fact, Charterhouse owes Peterson $7.6 million as part of the original price of for buying the project.
Bally Total Fitness is reportedly planning to file for Chapter 11 bankruptcy protection in order to reduce the outstanding principal on existing notes by $150 million. The company plans to continue operating and made no indication that any clubs would be closed or sold.
By filing for Chapter 11 bankruptcy, California-based Amp'd Mobile hopes to upgrade its back-end infrastructure so it can handle the rapid growth of 20,000 new subscribers per month. The company directors are working with the largest investors to obtain debtor-in-possession financing. As of the filing, Amp'd reportedly owes creditors over $99 million including $33 million to Verizon Wireless and $15 million to Motorola.
Outdoor furniture maker JRA Furniture Industries filed for Chapter 7 bankruptcy. The Cerritos, California supplier to Kmart and Sears was founded in 1995 and became a defendant in a class action lawsuit in 2005. The lawsuit claimed patio furniture sold with the Martha Stewart label shattered when used.
Oak Street Mortgage filed for bankruptcy protection in response to the drastic changes in the sub-prime mortgage market. The lender sold the majority of its assets in December to Novastar Financial Inc. The bankruptcy court will supervise Oak Street's plan to repay its creditors based on performance.
The Chicago Athletic Association, founded in 1890 filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court in Chicago. The petition listed assets and debts under $100 million for the private club. Members were fighting over how assets should be split in a proposed sale to Snider-Cannata Interests LLC. The bankruptcy filing may allow the sale of the landmark buildings owned by the club to go through within two months.
Pre-packaged food producer Simply Fresh LLC of Timberville, Virginia filed a Chapter 7 liquidation bankruptcy. After only two years in business, the company had $4.5 million in liabilities. Only the Union Bank & Trust of Tampa has a secured claim on the company's $320,000 assets. The bank claims almost $100,000 of that with the kitchen equipment as collateral. The remaining assets will be liquidated to pay unsecured claims to creditors on a pro rata basis.
Tweeter Home Entertainment Group plans to restructure its operations under Chapter 11 bankruptcy protection. The Canton Massachusetts specialty consumer electronics retailer provides home and mobile entertainment solutions and has been in business since 1972. Recently, the company has been dealing with financial challenges and determined that Chapter 11 reorganization would be best for the company, customers and investors. Tweeter plans to keep all stores open for business as well as continue to make payments to vendors and suppliers post-petition. The company also indicated it will continue to pay employee wages and continue the same benefits programs.
The Raleigh, North Carolina provider of games, ring tones and other content for mobile devices, Oasys Mobile Inc. is filing for Chapter 11 bankruptcy. The filing includes a pre-negotiated plan that will give senior lenders nearly all the stock in the company in exchange for their claims of nearly $8 million. In January, Oasys looked for a buyer or investor to help pay its maturing debentures but was unsuccessful. Mattel Inc. and Sony are listed as two of the top four unsecured claim holders.
Wild West World near Wichita, Kansas filed for bankruptcy on July 9. Now founder Thomas Etheredge is also closing the Prairie Rose Chuckwagon Supper Club, a dinner spot that originally inspired the theme park. The Prairie Rose, the Hopalong Cassidy Cowboy Museum and the Etheredge home will go up for auction on August 24.
With assets of only $15,000 and liabilities of $5 million, Quality Ford of Des Moines, Iowa filed for bankruptcy last week. Creditors will lose money in the Chapter 7 liquidation however owner Franklin Greene worked to minimize losses to customers. When the company closed in April, it came as a surprise to customers and employees. Greene blames the failure of his company on the business problems at Ford Motor Company as well as his inability to borrow sufficient funds to run the business.
Parent company TCGC, LLC of the Thornberry Creek Golf Club in Hobart Wisconsin filed a Chapter 11 bankruptcy petition. Since it is a Chapter 11 bankruptcy, the golf club will continue to operate its daily business including wedding receptions and golf events. One year ago, the Baylake Bank began foreclosure proceedings against Thornberry to recoup over $6.5 million in loans. Also, the Oneida Tribe of Indians attempted to by the club last year, but the deal fell apart after city officials said the tribe would have to give up sovereign rights and be required to pay taxes.
US Bankruptcy Court Judge WH Drake Jr. approved the Meyer-Sutton Homes conversion from Chapter 11 bankruptcy reorganization petition to Chapter 7 liquidation. The company's bank lenders blocked the reorganization plan and sought to liquidate the company in an effort to satisfy outstanding loans from the Atlanta area homebuilder.
The company famous for selling some of the first infomercial products, including the Veg-O-matic and Pocket Fisherman is being sold at bankruptcy auction next month. Ronco Corporation. The company founded by Ron Popeil in 1958 was sold two years ago for $55 million. Last month, the Simi Valley-based company declared bankruptcy citing $32.7 million in debts and only $13.9 million in assets. The auction price will reportedly be only $10 million.
Earth Biofuels plans to continue operating after a group of investors filed an involuntary Chapter 7 bankruptcy petition in the U.S. Bankruptcy Court in Wilmington, Delaware. The Dallas-based company produces fuel made from seed, animal oils and liquefied natural gas. The company released a statement saying the creditors' action was not necessary despite the fact the company reported $60 million in losses for 2006. On an interesting side note, the company currently has a license from country musician Willie Nelson to sell a fuel name BioWillie.
Brisbane, California-based Alliance Bancorp filed Chapter 7 bankruptcy to liquidate all its assets. The petition was filed on Friday in Delaware and listed assets of more than $100 million. A notice posted on the company's website stated it also shut down operations last Friday. The company specialized in lending to borrowers between prime and sub prime credit. CEO Lisa Duerhing stated the current market conditions were not conducive to continuing operating within profitably.
A New Jersey bankruptcy judge approved the sale of the Rockaway Bedding chain on Monday. Sleepys LLC and Hudson Capital Partners LLC purchased the chain for approximately $12 million in cash. The purchase includes more than 130 stores, 50 of which will hold going-out-of business sales to liquidate some of the assets. The Bethpage, New York company was unable to get out of leases at the unprofitable stores and was forced to file bankruptcy after losing $2 million last year.
Medical waste disposal Sanitec Industries Inc. filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court of San Fernando Valley, California. The company used environmentally friendly treatment and disposal to process medical waste for hospitals all over the world. After secured creditors are paid off, it is anticipated unsecured creditors will receive some recovery of their claims.
A Washington D.C. taxi company filed a voluntary Chapter 11 bankruptcy petition. Barwood Inc. has been in business for 43 years, owns 400 taxis and makes 4,000 trips a day. CEO Lee Barnes met with over 100 of the company's drivers on Sunday to notify them of the plan to reorganize the company. The company will create a new co-op structure to make drivers more invested in the company. Drivers will be encouraged to purchase Barwood's vehicles so they have a stake in the business.
The Parker Hughes Cancer Center filed for Chapter 11 bankruptcy but has no plans to close the facility. The Roseville, Minnesota clinic began having financial problems in 2002 when Dr. Faith Uckun came under investigation from the Minnesota Board of Medical Practice. Two other doctors are caring for patients at the clinic while Dr. Uckun is still temporarily suspended.
Tiger Aircraft filed for Chapter 7 bankruptcy on January 16 in federal court. The West Virginia aircraft manufacturer once planned to build a $30 million manufacturing plant and employ 400 people. The company originally intended on building 70 airplanes a year. Tiger completed and shipped only 15 planes in 2005 and just 3 from January through October 2006.
Charles Ridge Estates were originally slated to go up for auction last week. Instead, the owners filed for Chapter 11 bankruptcy and hopes to complete the townhouse project located in Littleton, Massachusetts. Owners Nick Gavriel and Joseph LaGrasse say the project is 50% complete and that some subcontractors are willing to negotiate the contracts so the project can be completed. Other subcontractors are skeptical they will get what they are owed even if the owners hire a new general contractor.
Gas-station chain Rennie Petroleum Company filed for a Chapter 11 bankruptcy reorganization. The Richmond, Virginia-based convenience store / gas station company has 24 locations and doesn't plan to close any of them during the bankruptcy process. Owner Donald J. Rennie regrets that he had to file the bankruptcy but hopes the company can adjust to the changing economics of the retail petroleum industry and return to profitability.
The Port Townsend Paper Company has filed for Chapter 11 bankruptcy. The 80 year-old pulp, paper and packaging company filed a "prepackaged" reorganization plan with the U.S. Bankruptcy Court in Seattle. The company wants creditors to accept the plan to eliminate $50 million in high-interest debt for lower-interest notes and ownership in the company. CEO John Begley, who is a former Weyerhaeuser executive, said he hopes to exit the bankruptcy in only three months.
San Diego-based book distributor, Advanced Marketing Services Inc. (AMS) filed for Chapter 11 bankruptcy protection on December 29. The filing will allow the company to explore its "strategic alternatives" specifically related to financing. For the last three years, AMS was subjected to a federal investigation that uncovered accounting fraud. Three senior managers pleaded guilty to felony charges related to the fraud.
Malden Mills returns to Chapter 11 bankruptcy only three years after it last emerged from bankruptcy in 2003 brought on by a 1995 factory fire that financially hurt the company. A prospective buyer for the company plans to continue operating the mills, which produce special fabric for Lands End, North Face, and Patagonia. Malden Mills, which has been in the textile manufacturing business since 1906, also makes the very popular Polartec fleece found in many different articles of clothing. The company operates two plants in Lawrence, Pennsylvania and New Hampshire employing more than 800 people.
The U.S. Bankruptcy Court for the Northern District of Illinois received a Chapter 11 bankruptcy petition for Enesco Group Inc. Enesco distributes giftware and home décor to a variety of retailers worldwide. Pooh & Friends and the Walt Disney Classics Collection are a couple of the most recognized brands the company distributes. President and CEO, Basil Elliot described Enesco's restructuring plan which includes an asset purchase agreement with Tinicum Capital Partners.
Northwest Airlines Corporation filed its plan to exit bankruptcy in a federal New York bankruptcy court today. The reorganization plan still requires the court's approval before Northwest can request creditor approval of the plan. After continuing to lose billions for four years, the Eagan, Minnesota, carrier entered into bankruptcy protection in September 2005. The airline is currently in talks with the also bankrupt Delta Air Lines about joining forces. A more detailed reorganization plan and a disclosure statement are due to be filed by February 15.
Creditors for Aldephia Communications Corporation have agreed to a deadline extension for the effective date of its reorganization plan. The deadline was moved out one week to January 19 as requested by the bankrupt cable operator. Time Warner, the largest media company in the world, bought Adelphia in July 2006 and is anxious for the bankruptcy exit plan to be approved. Once the plan is approved, Time Warner shares will be traded on the New York Stock Exchange.
Amtrol located in Rhode Island filed for bankruptcy in an effort to reduce bond payments. It is uncertain how the Chapter 11 bankruptcy filing will impact the 400 employees of the water storage and pressure control products company. Although, CEO Larry T. Guillemette says the company remains "fundamentally sound and profitable".
Tower Automotive Corporation, headquartered in Novi, Michigan, is set to emerge from bankruptcy now that three bondholders have agreed to invest up to $250 million. Tower blamed raw material costs and high hourly wages as the core problems forcing the company to file for bankruptcy in February 2006. Tower issued mass layoff notices when it closed nearly half of its U.S. plants during the last year and a half after first declaring bankruptcy.
Skipper's seafood restaurant chain declared bankruptcy with the U.S. Bankruptcy Court in Seattle this month. The company owes nearly $2 million to the IRS after its outside accounting firm allegedly neglected to pay federal employment taxes. Skipper's currently operates 59 stores in five Western states. CEO Ken Williams declared 5 stores in Alaska, Oregon and Washington would close.
Chicago-based Home Products International Inc. filed Chapter 11 bankruptcy documents with the U.S. Bankruptcy Court in Delaware on December 20. The company made the decision to file the bankruptcy in order to seek protection from creditors and convert $116 million in public debt to equity. The restructuring plan will allow the company to continue operating its house wares business.
Long Beach, California tourism was unable to save the Queen Mary from bankruptcy last year. Now, the court-appointed trustee is trying to sell the 66-year lease and rights to develop the land near the ship. In its history, the luxury line carried Winston Churchill, Bob Hope and Fred Astaire among other first class travelers. Currently, it functions as a "ghost ship tour" for tourists at the second-busiest port in the U.S.
Granite Broadcasting filed for Chapter 11 bankruptcy protection on Monday in the Southern District of New York U.S. Bankruptcy Court. The group owns, operates and provides services to 23 television stations in 11 markets. Debt holders are supporting the plan, which will reduce the group's debt by $45 million. Under the Chapter 11 bankruptcy plan, Granite will complete its financial restructuring process by June 2007.
The United States Bankruptcy Court for the Eastern District of Missouri has entered an order for the Chapter 11 reorganization plan submitted by President Riverboat Casino-Missouri, Inc. The plan details an agreement to sell the Admiral casino boat to Pinnacle Entertainment Inc. for $31 million so President can repay its creditors.
In the midst of criminal fines for bribing county officials, Rolan Pugh is filing for Chapter 11 bankruptcy protection. The bankruptcy petition was filed on December 1 in Alabama and shows that Roland Pugh Construction is actually in good financial condition. Under bankruptcy protection, Rolan will still be liable for the criminal fines but will have time to create payment plans to creditors instead of dealing with lawsuits.
Paper towel, tissue and toilet paper company Marcal Paper Mill filed for Chapter 11 bankruptcy protection on November 30. After unsuccessful negotiations, Marcal will negotiate a payment plan to deal with $157 million owed to its creditors. State legislators will vote on a bill next week to provide the New Jersey company with $3 million in relief from state sales and use taxes.
Vestimenta Inc., former U.S. distributor of Calvin Klein fashions, filed a Chapter 7 bankruptcy petition to liquidate its assets. Vestimenta owes its parent company, which is based in Italy, $13 million. The next largest creditor is Banca Nazionale de Lavoro for $295,000.
Day-cruise gambling ship, Palm Beach Princess will continue to operate as parent company International Thoroughbred Breeders Inc. requests that a federal bankruptcy judge approve the Chapter 11 bankruptcy petition filed by the company. The company owes $36.8 million to PDS Gaming Inc. based in Las Vegas. Over 250,000 passengers take a cruise on the Florida gambling ship every year.
Brown & Cole Stores, LLC currently operates 27 grocery stores in Washington but plans to close 4 stores in order to become a "viable enterprise" at the completion of its Chapter 11 bankruptcy process that was filed last month. The Brown & Cole bankruptcy filing will also have an impact on Associated Grocers, the wholesaler that stocks $127 million worth of goods on the supermarket chain's stores including Cost Cutter, Food Depot, Food Pavilion and $ave-On-Food$.
Aqueduct, Belmont Park and Saratoga Race Course owner New York Racing Association refused to accept a $30 tiered bailout package from the state. The association's chairman, Steven Duncker, said the organization chose to declare bankruptcy after the state lottery division was unwilling to workout details on video lottery terminals included in the bailout package.
If the Federal Bankruptcy Court in Manhattan approves Delta Air Lines new agreement, then retired pilot's unsecured pension claims will increase by $718 million. Delta expects to emerge from Chapter 11 bankruptcy mid-2007.
Homeowners in Massachusetts are wondering where they will get heating oil that they already paid for now that Viking Oil Company of Winthrop shut down. The company says it has no plans to file for bankruptcy and is expecting local and federal lawmakers will work out a deal to help the company. In the mean time, representatives of the oil industry are attempting to acquire replacement oil for the affected customers regardless whether Viking files bankruptcy or not.
Hurricane Emily and Hurricane Katrina are being blamed for the financial problems of an asphalt refinery run by Gulf Atlantic Operations LLC. The Corpus Christi Texas company filed for bankruptcy citing the hurricanes impacted operating results in an otherwise robust asphalt market.
U.S. Energy Biogas Corporation filed for Chapter 11 bankruptcy protection after it was unable to renegotiate a $90 million loan with an affiliate. The biogas extractor plans to continue operating its 20 current projects at landfills in 8 states.
New Orleans-based Entergy filed its reorganization plan proposal to Judge Berry of the U.S. bankruptcy court. The power company hopes to emerge from bankruptcy before then end of next year. Entergy originally filed for bankruptcy shortly after Hurricane Katrina hit and caused an estimated $620 million in damage to the company's power and natural gas systems. The reorganization plan is contingent on whether or not the company receives $250 million in insurance payments and $200 in relief money from the federal government. Entergy also plans to raise rates to customers in the New Orleans area. The good news is that the plan calls for all creditors to receive full payment and all employees would remain working at the company with unchanged benefits.
Hurricane season is almost over and a different kind of storm is brewing in South Florida. Thousands of shutter customers are left wondering if they will ever get their hurricane shutters installed or receive a refund of their deposits totaling millions of dollars. Clearview Shutters-National Hurricane Solutions owner Jeffrey Ullman starred television commercial and convinced thousands of homeowners to sign contracts and pay very large deposits for the shutters. The company filed for bankruptcy without warning, but Ullman says he intends to finish as many jobs as possible.
Twenty-seven year old Anvil Knitwear, based in New York, recently filed for bankruptcy blaming increasing import quotas and duties, rising fuel costs, and more competition. The company is seeking to borrow $40 million and has approval from the bankruptcy court to use those funds to continue operating during the bankruptcy process. Nothing has changed at the Anvil plants in North Carolina and South Carolina.
Decreased automobile sales force Incredible Auto Sales, LLC of Billings, Montana to declare bankruptcy. Company President Nick Gutierrez blames the slow sales on the automotive industry-wide slump and major road construction affecting his customer's access to the dealership. Gutierrez has every intention of emerging from this bankruptcy within a year. Unfortunately, all the creditors are all fighting for the company's assets, specifically the automobiles.
Home Fragrance discontinued production this week and filed for Chapter 11 bankruptcy at the U.S. Bankruptcy Court in Houston. The company designs and manufactures 12-15 million candles per year. Home Fragrance will finish packaging and ship the rest of the products in the plant during the next few weeks.
The most recent spinach recall has forced the AP Military Group into bankruptcy. The Florida salad broker experienced a 50 percent decline in revenue since the recall occurred in September. Without revenues from its largest customer, the Defense Commissary Agency, AP does not have sufficient cash flow pay its creditors on time.
Delta Woodside Industries of South Carolina plans to discontinue operations and has filed for bankruptcy. The Greenville-based company employs 600 workers in two plants. Unless Delta finds a buyer to keep the business in operation, customers like Levi Strauss, Haggar, Wrangler and Lee will have to find a different cotton fabric supplier. The company blames higher energy and raw material costs for its financial troubles.
The bankruptcy filing for Alfalfa America states that the company's unsecured creditors will probably not receive any money. The company, located in Belle Plaine, Minnesota, recently acquired factory space to produce an alfalfa extract called lutein. Company founder, Lance Crombie, proclaimed lutein could help prevent macular degeneration. After 10 years of development, he was unable to finally produce the product.
The City of Brownsville, Texas has been more than accommodating for Taylorcraft Industries since it gave the company an incentive package when it moved there in 2005. Unfortunately, Taylorcraft has filed for bankruptcy and the City of Brownsville is its largest creditor. There are currently 22 other creditors claiming to be owed money from the airplane parts maker.
Christian Pilgrim Tours declares bankruptcy and leaves parishioners of St. Symphorosa Catholic Church in Chicago without a tour. The parishioners had already paid $140,000 in total to go on the tour this week. The Pennsylvania attorney general's office received numerous complaints about the tour operator in the last year and even sued the owner, John Baird for not refunding money for cancellations.
A federal bankruptcy judge will make a ruling on whether the union workers at Mesaba Airlines can strike. The union is using the strike as a bargaining chip against the pay cuts Mesaba is proposing. The airline is based in Minneapolis, Minnesota and is already in bankruptcy. The judge also blocked creditors from liquidating the carrier.
After 46 years in business, Tower Records must close all 89 stores employing 3000 people in 20 states including its corporate offices in California. Great American Group placed the highest bid of $134.3 million in an auction approved by a federal bankruptcy judge. Great American plans to start liquidating all the Tower Records stores on Saturday.
1Point Solutions surprised Chattanooga, Tennessee County school district employees by filing for bankruptcy with while in possession of a $100,000 cash advance for their benefits management. It may take years for the school district to recover the funds. In the meantime, the district has employed a new benefits agent and will reimburse any school employees that received bank charges for bounced checks.
Union Stamping and Assembly Inc. based in Cleveland and operating in North Carolina, has filed for bankruptcy. The company owes nearly $24 million to approximately 1000 creditors. United States bankruptcy judge Ronald G. Pearson approved Union Stampings request for voluntary bankruptcy. The 85-year-old company employs 343 people and plans to sell all of its assets to pay its creditors.
One of the top three roofing companies in Phoenix, Arizona filed for bankruptcy and discontinued operations. Sunvek has reported annual sales of $10 million and employed over 100 people in recent years. The company had not planned on filing for bankruptcy but was left with no other choice. Consumers with incomplete roofs will need to call the Arizona State Register of Contractors to find out what they can do to get their roofs finished by another contractor.
The Blushing Bride Shoppe in Milwaukee declares bankruptcy and closes its doors. Brides to be are left without dresses for their upcoming wedding. Many have already paid for the dresses and will have to shell out more money for another wedding gown from a different dressmaker. The Better Business Bureau of Wisconsin recorded numerous customer complaints, prior to the shop closing and lists the company as having an unsatisfactory rating due to unresolved complaints.
Cornerstone Technologies located in Plaines Township, Pennsylvania was supposed to stimulate economic development in the region. Instead, the company, which is partially owned by state representative Peter Kanjorski, apparently hasn't operated in two years even though it received three federal contracts totaling $6.45 million to be used for research. The company filed for Chapter 7 bankruptcy protection on Tuesday.
New Jersey homebuilder Kara Homes filed for Chapter 11 bankruptcy as employees wait for back wages and creditors wonder when they will receive payments for outstanding contracts. In 2002, Builder Magazine listed the company as the fastest-growing builder in the United States. Now, homeowners in unfinished developments such as Horizons at Birch Hill, wonder if they will ever see their pool and clubhouse completed.
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