Phoenix Bankruptcy Law News

Phoenix Economy

The Phoenix economy, like the rest of the state of Arizona, has been especially hard hit in the most recent economic crisis. The Phoenix housing market has been one of the more influential factors affecting the health of the Phoenix economy, and the news thus far hasn’t been pretty, with the loss of construction jobs and the number of foreclosures seeing some of the highest rates in the country.

Staying informed about the state of the Phoenix economy will allow you to prepare for potential financial issues and plan for a more stable future. However, if you have already been adversely affected by the economy and would like to consult someone about your potential legal options, you should contact a Phoenix Bankruptcy attorney for more detailed information.

Recently in Phoenix Economy Category

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.

Last month, we reported that American Airlines CEO Tom Horton told the press that a merger with US Airways was probably not going to happen.

Now, it looks like a merger may be back on the table. Tempe-based US Airways is currently deciding whether to sign American's non-disclosure agreement, USA Today reports. The agreement would allow the two airlines to share sensitive information with one another and possibly work toward a merger.

This week, Hostess Brands extended its final offer to the unions representing nearly half of the company's workers, CNBC reports.

The deal would allow Hostess to exit bankruptcy by cutting about $200 million in costs. In order to make the offer possible, advisors involved in the deal forfeited about $60 million in transaction fees. However, the advisers aren't the only ones to suffer under the new offer.

While job growth is stalled and the stock market’s a mess, there are a few signs that things are starting to turn around for the economy. One of which is a steady decline in the number of people and businesses filing for bankruptcy.

For the eighteenth month in a row, the number of bankruptcy filings in the metro Phoenix area has dropped on a year-over-year basis, The Arizona Republic reports. There were 1,847 bankruptcies filed in Phoenix last month, compared to the 2,153 filed in July 2011. That’s a 14 percent decline.

Doug Parker, CEO of Tempe-based US Airways, hasn’t been shy in expressing his intent to merge his company with bankrupt American Airlines. This week, however, American’s CEO Tom Horton came out and said that the merger was actually his idea and that it may no longer be on the horizon, The Associated Press reports.

In November, American’s parent company, AMR, filed for Chapter 11 bankruptcy. Ever since the filing, rumors of a possible merger with US Airways have been in the air. After Horton’s recent statements, however, the chances of a merger seem slim.

Cocopah Nurseries of Arizona, Inc., which grows palm and citrus trees, has filed for bankruptcy, Bloomberg reports.

The company reportedly took a hit when the demand for landscaping on construction projects dried up. Now, the company hopes to use bankruptcy protection to stay afloat while reorganizing its business.

US Airways’ courtship of American Airlines continues. On Thursday, US Airways announced that it had purchased “a small amount of debt” of AMR, American Airway’s bankrupt parent company, USA Today reports.

Tempe-based US Airways has repeatedly expressed its desire for a merger with American Airlines. Its recent debt purchase makes the company one of AMR’s creditors, giving it a voice in AMR’s bankruptcy. AMR representatives have dismissed the purchase as a publicity stunt.

Last week, we noted that national bankruptcy filings were on the decline. Fortunately, the Phoenix area is no exception to the national trend.

In June, metro Phoenix bankruptcy filings fell another 27 percent, The Arizona Republic reports. Last month saw 1,770 bankruptcy filings in the Phoenix area, bringing the total for the first half of the year to 10,867.

Good news for the economy. Bad news for bankruptcy lawyers: The number of bankruptcies is declining and could reach pre-recession levels by the end of the year, Reuters reports.

The number of bankruptcies fell 14 percent in the first half of 2012. If it continues to fall, 2012 could end with the lowest number of bankruptcies since before the 2008 financial crisis, experts say.

Developer Rick Burton, co-founder of Rightpath Limited Development Group, has filed a massive personal bankruptcy, The Arizona Republic reports.

Burton and his business partners helped develop a corporate luxury jet hub and a resort complex in Glendale. After making a few business blunders, however, Burton is now reportedly in $310 million of debt. He filed for Chapter 7 bankruptcy in Las Vegas.