Phoenix Bankruptcy Law News

Chapter 11 Bankruptcy in Phoenix

In today’s tough economic times, bankruptcy filings have become increasingly common as borrowers struggle under the weight of crushing debt. Chapter 11 bankruptcy is intended primarily for the reorganization of businesses, from huge corporations to small businesses, with heavy debt burdens. Filing for Chapter 11 bankruptcy allows debtors to propose a plan of profitability to the courts and restructure their organizations. Management still has control over the day-to-day operations of the business, but all important business decisions must be approved by a bankruptcy court.

Chapter 11 bankruptcy is also available to consumers, but it is extremely rare. Individuals must have substantial personal earning potential and their debts must exceed the limits set forth by Chapter 7 and Chapter 13. Filing for Chapter 11 bankruptcy can be a costly and time-consuming process, and you should consult the services of an experienced Phoenix Bankruptcy attorney about your options first.

Recently in Chapter 11 Bankruptcy Category

3 Lessons From Mt. Gox Bankruptcy

Mt. Gox was a leading Bitcoin exchange that recently filed for bankruptcy protection, TechCrunch reports.

Though the company filed for bankruptcy in Japan, its filing serves as a cautionary tale to business owners in the U.S. about bankruptcy issues that come with entering highly volatile financial arenas of business.

Here are three legal lessons from Mt. Gox's bankruptcy filing:

Should Your Business File for Chapter 11?

When small businesses go into bankruptcy, the assumption is that the company is going belly up. It's gone to the Small Business Association in the sky, never to be heard from again. But that's not the way the story has to end.

For businesses that have hit a financial snag but want to keep going, there is Chapter 11. This type of bankruptcy gives you the option to claw your way out of debt.

It's not an easy process, but if you want your business to soldier on, Chapter 11 may give you that opportunity. You just have to decide if it's right for you.

A bankruptcy judge has hit pause on video game maker THQ's bankruptcy case.

THQ planned to sell its assets to Clearlake Capital Group for $60 million. This week, however, U.S. Bankruptcy Judge Mary F. Walrath put the plan on hold by denying the sale, Gamasutra reports.

According to Walrath, THQ didn't make enough of an effort to market the company's assets before settling on Clearlake as the buyer.

Tribune Co. has had a rough four years. The company, which owns numerous television stations and newspapers, filed for bankruptcy back in 2008.

This week, Tribune announced that after four years, its restructuring is complete and it is exiting bankruptcy, the Chicago Tribune reports. It will be doing so with more than $1 billion in loans, a new board of directors, and an uncertain future.

So far, 39 people have died after they were allegedly treated with meningitis-contaminated steroid injections. Hundreds of others have been infected.

New England Compounding Center, the company accused of producing the contaminated injections, faces more than 400 lawsuits. Now the company is facing bankruptcy as well.

NECC has filed for Chapter 11 bankruptcy, claiming to have somewhere between $1 million and $10 million in assets, NBC News reports.

Eastman Kodak's prized imaging patents will soon be in the hands of three of the world's biggest tech companies.

Kodak announced Wednesday that it struck a deal to sell its patents to a consortium led by Intellectual Ventures and RPX Corp. The consortium also includes tech giants Apple, Microsoft, and Google, Dow Jones reports.

It's been a bad year for video game companies. Back in June, Curt Schilling's 38 Studios filed for Chapter 7 bankruptcy after racking up more than $150 million in debt.

Now videogame maker THQ is going under. The company has filed for Chapter 11 bankruptcy protection and is planning to sell its assets to affiliates of the private equity firm Clearlake Capital Group for about $60 million, The Wall Street Journal reports.

Walmart could be the new maker of Twinkies and HoHos. According to Bloomberg, there are about two dozen companies bidding on Hostess' assets, including Walmart and Kroger Co.

Some of the bidders are reportedly interested all of Hostess' assets, while others are only interested in specific brands like Twinkies. Overall, the liquidation could bring in as much $1 billion for the company's creditors, according to one financial advisor's calculations.

Back in October, federally funded battery company A123 Systems filed for Chapter 11 bankruptcy. Initially, Johnson Controls Inc, a fellow American battery maker, planned to buy A123's assets.

However, China's Wanxiang America Corp. swooped in and outbid Johnson Controls. On Tuesday, U.S. Bankruptcy Judge Kevin Carey approved the sale, The Wall Street Journal reports. Several government agencies have expressed concern about A123's tax-payer-funded assets going to a foreign company.

American Suzuki Motor Corp. is one step closer to exiting bankruptcy.

The company won support from 97 percent of its auto dealers to shut down its new car sales in the United States, Bloomberg reports. In exchange for their support, the dealers will be repaid everything they're owed by the company -- a rarity in bankruptcy cases.