Phoenix Bankruptcy Law News

October 2012 Archives

Rather than a golden investment opportunity, Cash4Gold turned out to be pyrite.

Less than four years after raising $40 million in venture capital funding, Cash4Gold has filed for bankruptcy, Fortune reports. The company, best known for its Super Bowl commercial starring MC Hammer, will be sold to Direct Holdings Americas for a measly $440,000.

Olympic wrestler Rulon Gardner says he's not going down without a fight.

The bankrupt gold medalist filed for Chapter 7 bankruptcy in September after falling victim to a Ponzi scheme. Now the former Olympian is trying to wrestle his most prized possessions away from his creditors, The Associated Press reports.

Cash-strapped clean energy companies have been in the news a lot lately. Last week, an international bidding war broke out over government-funded battery maker A123 Systems.

Now a judge has approved solar panel company Solyndra's controversial bankruptcy plan, Dow Jones reports. The plan has come under fire from the U.S. Energy Department because the government stands to recoup only a fraction of the $527 million it loaned the company.

President Barack Obama and Mitt Romney may butt heads about everything else, but they seem to be in agreement about men’s formal wear. Obama and Romney have been known to sport Hickey Freeman and Hart Schaffner Marx suits fairly frequently.

HMX Group, the parent company of the two brands, recently filed for bankruptcy, leading to speculation that the company’s traditionally American-made suits, may soon sport “Made in [insert foreign county]” tags. Brand aficionados can exhale, however, since lead bidder Authentic Brands Group LLC has assured customers that if it acquires HMX, it will continue to manufacture the suits stateside, The Wall Street Journal reports.

Earlier in the week, lithium-ion battery maker A123 Systems filed for Chapter 11 bankruptcy. Johnson Controls Inc, a fellow battery maker, planned to buy A123's assets and provide bankruptcy financing. Now Chinese auto parts supplier Wanxiang Group has come forward offering a better deal for the company, CNN reports.

The only problem is that A123 received a $249 million grant from the federal government. The U.S. Energy Department is pretty upset that the assets it helped develop in order to boost the country's green energy industry could now end up in the hands of a foreign company.

It may sound like the kind of lawsuit Jackie Chiles would take on, but it involved a real condition.

In 2004, Eric Peoples won a $20 million verdict after developing "popcorn lung" while working at a popcorn plant in Missouri, The Huffington Post reports. Unfortunately, Eric and his wife Cassandra apparently blew through their jury award. The couple is now filing for Chapter 7 bankruptcy.

Hot on the heels of Solyndra's well publicized downfall, another government-funded energy company is filing for bankruptcy.

Lithium-ion battery maker A123 Systems received a $249 million grant from the federal government as part of the Obama administration's clean energy initiative, NBC News reports. Unfortunately there wasn't enough of a demand for electric-car batteries. The company filed for Chapter 11 bankruptcy on Tuesday.

Broke solar-panel company Solyndra is seeking bankruptcy-court approval of its reorganization plan. However, the plan has come under fire from the company's creditors, including the federal government.

The U.S. Department of Energy is concerned that, under the plan, Solyndra would pay back less than half of the $528 million in federally backed loan debt it owes the government, according to Market Watch. The IRS objected to the plan as well, citing the hundreds of millions of dollars in tax breaks the company is to receive post-bankruptcy.

Robert Kiyosaki, the author of Rich Dad, Poor Dad, has been accused of some questionable business practices.

Kiyosaki’s company, Rich Global LLC, was ordered to pay around $24 million to the Learning Annex and its chairman. In the wake of that judgment, the company is filing for bankruptcy, Forbes reports.

On the heels of last week's jobs report, there's more good news for the Valley economy. Metro Phoenix bankruptcies continued to fall in September, hitting a seven-month low.

There were 1,421 bankruptcies filed in metro Phoenix last month, compared to the 1,999 filed in September of last year, The Arizona Republic reports. That's a 29 percent drop.

While bankrupt American Airlines wants to exit bankruptcy on its own two feet, lingering labor disputes and a series of maintenance issues are making a merger with Tempe-based US Airways more likely, Fox News reports.

The airline is still struggling to reach a deal with its pilots’ union, after a judge threw out the union’s contract last month. On top of that, a number of well-publicized maintenance issues are scaring passengers away from flying with American.

In June, Curt Schilling's video game company 38 Studios filed for bankruptcy. Over the years, the former Diamondbacks pitcher took out a number of loans to keep the floundering business afloat.

As collateral for the loans, Schilling put up the "bloody sock" he wore during Game 6 of the 2004 American League Championship Series. Now the famed sock could be history, The Associated Press reports.

Considering that many pro athletes make more money than 99% of the population, it's pretty surprising that they seem to go broke pretty frequently. Earlier in the year, we covered some of the reasons for this phenomenon.

Now ESPN is trying its hand at answering the age-old question, "Where did the money go?" The network's new documentary, "Broke," will tackle the issue of professional athletes who have blown all their cash.

As a refresher, below, we've included just a few of the pro athletes who have filed for bankruptcy over the past year: