Attorneys: Join Our Network

Business Bankruptcies - August 24, 2009

Reader’s Digest publicly stated on Monday, August 17 that it will file Chapter 11 bankruptcy in an effort to exchange $1.7 billion of its debt for ownership of the company. According to CEO Mary Berner, the financial restructuring will reduce the company’s debt load 75% from $2.2 billion to $550 million, and in return lenders will get ownership. Showing signs of a dismal financial situation, Reader’s Digest laid off 8% of its staff in January and later in June started to cut its circulation from 8 million to 5.5 million, decreasing the number of issues published per year from 12 to 10.

Following months of relying on government loans to continue doing business,Chrysler Group, LLC was forced into filing bankruptcy in April of 2009. A top-to-bottom reorganization of the company hoped to be achieved through plans to build cleaner cars and an alliance with Italian automaker Fiat. Chrysler is the nation’s third-largest car manufacturer based in Detroit, Michigan. In addition to Fiat’s aid, the federal government agreed to pay the company up to $8 billion and back its warranties. As recently as last Tuesday, the Obama administration announced that it does not expect Chrysler to repay its loans, forgiving several loans the automaker received from both the Bush and Obama administrations.

Click Here For Free 2 Minute Evaluation

Santa Fe-based real estate investment trust and mortgage lender Thornburg Mortgage filed for bankruptcy on May 1, 2009 claiming assets of $36.5 billion. This marked the country’s 8th largest bankruptcy filing to date. Back in 2007, the company was hit with a mortgage crisis as its stock dwindled and the credit markets became unsteady. To thwart collapse, the company stopped accepting loan applications as it attempted to increase equity via a stock offering.

Caraustar Industries, one of North America’s largest integrated manufacturers of 100% recycled paperboard and converted paperboard products, has emerged from Chapter 11 bankruptcy as a newly-organized private company. Under the company’s financial reorganization plan, implemented as recently as August 4, common stock shares will be retired and previous shareholders will receive a pro rata share of $2.9 million.

Subscribe


PAID ATTORNEY ADVERTISEMENT: This Web site is a group advertisement. It is not a lawyer referral service or prepaid legal services plan. Total Bankruptcy is not a law firm. The sole basis for the inclusion of the participating lawyers or law firms is the payment of a fee for exclusive geographical advertising rights. Total Bankruptcy does not endorse or recommend any lawyer or law firm who participates in the network. It does not make any representation and has not made any judgment as to the qualifications, expertise or credentials of any participating lawyer. The information contained herein is not legal advice. Any information you submit to Total Bankruptcy may not be protected by attorney-client privilege. All photos are of models and do not depict clients. All case evaluations are performed by participating attorneys. An attorney responsible for the content of this Site is Kevin W. Chern, Esq., licensed in Illinois with offices at 25 East Washington, Suite 510, Chicago, Illinois 60602. To see the attorney in your area who is responsible for this advertisement, please click here.

If you live in Alabama, Florida, Missouri, New York or Wyoming, please click here for additional information.

By an Act of Congress and the President of the United States, we are a federal Debt Relief Agency. Attorneys and/or law firms promoted through this Web site are also federally designated Debt Relief Agencies. They help people file for relief under the U.S. Bankruptcy Code. Disclosures Required Under the U.S. Bankruptcy Code.