Before 2005 Bankruptcy reform, individuals filing Chapter 11 bankruptcy were subject to a rule known as the Absolute Priority Rule which stated that all debtors filing Chapter 11 bankruptcy have to repay all of their debts in full. Specifically, if the shareholders are going to retain any interest in the reorganized company, then they must [...]
While many individual debtors opt for Chapter 11 bankruptcy only when they have exceeded the debt limits imposed on Chapter 13 bankruptcy debtors, there are situations when filing Chapter 11 bankruptcy may be beneficial even if the debtor is well within the debt limits of Chapter 13 bankruptcy. Why a debtor may want to choose [...]
Home furnishings retailer Furniture Factory Warehouse, which operates 12 stores in South Texas, has filed for Chapter 11 Bankruptcy protection due to unfavorable financial conditions and a consistent decline in furniture sales. The retailer has closed all of its stores and distribution facilities pending the bankruptcy court's approval of Furniture Factory Warehouse's "Bankruptcy Going Out [...]
General Growth Properties Inc., which filed the largest bankruptcy in U.S. history, has finished restructuring its $15 billion secured-debt load, clearing yet another obstacle from its path as it attempts to exit Chapter 11 bankruptcy. Bankruptcy Judge Allan Gropper in Manhattan today approved a restructuring agreement on a $95 million loan tied to a Louisiana [...]
If you thought the Texas Rangers bankruptcy drama had ended, it seems that it is just getting started. Most recently bankruptcy judge Michael Lynn quipped that "This is like one of those baseball movies where the players get stranded," after convincing Chase to keep the baseball team's credit card active while they played in Kansas [...]
Bankruptcy Judge Michael Lynn said he had never before seen a fight over who would provide Chapter 11 bankruptcy financing for a bankruptcy company because securing such financing is usually an uphill battle. But this is the exact type of drama that broke out when senior creditors of the Texas Rangers offered to loan the [...]
Bankruptcy judge Kevin Carey, who is presiding over Tribunes' Chapter 11 bankruptcy case, approved an independent examiner to review the 2007 leveraged buyout of the media conglomerate and the potential claims arising from it that might be brought on behalf of the bankruptcy estate. Tribune, which owns the Los Angeles Times, Chicago Tribune, The (Baltimore) [...]
Simon Property Group Inc., which for months was involved in a campaign to acquire General Growth which is in Chapter 11 bankruptcy y, recently withdrew its bid due to a bankruptcy court decision that would make the acquisition too expensive. The plan approved by U.S. Bankruptcy Court Judge Allan Gropper in New York would enable [...]
Freedom Communications Inc., the publisher of many newspapers around the country known for their libertarian views, has finally emerged from Chapter 11 bankruptcy, their debt loand $450 million lighter; but also under new ownership Three investment companies - Alden Global Capital, Angelo Gordon & Co. and Luxor Capital Group - and a group of lenders [...]
Brown Media Holdings, a 90-year-old family-owned company with 18 daily and 27 weekly newspapers in 10 states, filed for Chapter 11 bankruptcy with over $95 million in debt. The company, which is hoping to sell their business during bankruptcy, is seeking $2.5 million in financing to fund the operations of their publications while they find [...]