State legislators in Pennsylvania approved a bill that would prevent the City of Harrisburg from filing bankruptcy if they do not follow the advice of a state appointed task force setup to offer financial guidance to the city. A state-appointed task force coordinator released a report earlier this month saying that Harrisburg should rein in [...]
Borders Group Inc. won a reluctant approval from the bankruptcy court to pay a $1 million fee to extend their bankruptcy loan's expiration date. Bankruptcy Judge Martin Glenn accused the lender of "raping" the bookstore and said that he was very close to denying the transaction. "The reluctance is I think you're getting raped, is [...]
Socialite Patricia Kluge and her current husband filed Chapter 7 bankruptcy last week after losing millions on a vineyard business that lost more money than it made. Even the large divorce settlement with her billionaire ex-husband has not been able to save Kluge's finances. Their grand ambitions to make a world-renowned Virginia wine weren't cheap; [...]
Right before filing Chapter 11 bankruptcy, Allen Family Foods was on the brink of collapse. The company's major bank, with whom it also held payroll services, called in their loans and left many workers unpaid. The payroll issues arose after the bank where Allen keeps its payroll account, Wilmington Trust, sent Allen a default notice [...]
Young Buck Hiding Income From Bankruptcy Court Rapper Young Buck is facing bankruptcy troubles again. Under the agreement with his bankruptcy trustee, he is to report all performance and appearance fees; but according to the suspicions of the bankruptcy court he may have received fees and failed to report them to the bankruptcy trustee or [...]
Washington Mutual Inc.'s negotiations on the $7 billion bankruptcy reorganization plan have fallen apart after preferred shareholders successfully opposed a move to give common shareholders a stake in the company after it emerges from bankruptcy. The collapse of the talks means that WaMu will move forward with its sixth version of a reorganization plan that [...]
Borders, the national bookseller trying to emerge from Chapter 11 bankruptcy protection, is still struggling to find a buyer and is now faced with closing 51 additional stores because it has failed to negotiate an extension with landlords. Thursday's disclosure, made in a bankruptcy court filing in New York, said that Borders had secured lease [...]
Another artistic organization is seeking the protection of bankruptcy. The Philadelphia Orchestra Association is the first major symphonic orchestra to file bankruptcy in this country; but it's not the first arts organization to seek the help of bankruptcy to restructure its debts. The orchestra has cited the costs of maintaining retired musicians and the costs [...]
In the Chapter 11 bankruptcy of the Giordano pizza chain has just gone from standard to bizarre after the debtor was removed from his company by the bankruptcy court after he filed a affidavit attempting to terminate the bankruptcy and declaring that he is a freeman over whom the US courts have no jurisdiction. On [...]
For most Americans bankruptcy is still a process they see through the lens of filings made by sports and music stars; not something they personally experience. Because of this, there seems to be a misconception about how assets are handled during bankruptcy. When ordinary debtors hear about Pittsburgh Steelers player Charlie Batch being forced to [...]