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Detroit filed a Chapter 9 bankruptcy case this week and became the largest municipal bankruptcy case ever filed in the United States. The filing comes after years of struggling under billions of dollars in debt and poor management. Emergency Manager Kevyn Orr has been trying to restructure the city’s debt but has also been warning of a possible bankruptcy. If the court approves the bankruptcy, it would allow city assets to be sold in order to generate money to pay the city’s massive debt. … [Read more...]

The Bankruptcy Code requires that certain information, such as social security numbers, account numbers, and other personal information, be redacted from documents filed with the court. However, Citigroup failed to redact personal information on forms filed with bankruptcy courts all across the nation. Some 150,000 consumers were affected by this error. In a 2012 settlement that is just now being unsealed, Citigroup agreed to correct the filings, notify debtors and offer free credit … [Read more...]

The Chapter 9 bankruptcy filings by Stockton, California and Jefferson County, Alabama have been in the news lately and have called attention to the rarely used chapter of bankruptcy. Chapter 9 filings are rare and can be blocked by judges and, when allowed, typically involve special districts and utilities. However, because of the recession and the economy, more cities and counties are seeking bankruptcy protection under Chapter 9 of the Bankruptcy Code. To read about some of the more … [Read more...]

A bankruptcy judge approved the final agreement for The Royal Appliance Manufacturing Co.’s purchase of the assets of bankruptcy Oreck Corp. Oreck had tried to sell the company for months before filing the Chapter 11 bankruptcy case. Royal, a subsidiary of the China-based TTI Floor Care, will pay $17.25 million for the company in addition to assuming several of the company’s debts. It plans to retain the Oreck factory based in Cookeville, TN but will close the Nashville headquarters. For … [Read more...]

Tommy Thompson hit gold, literally tons of it, when he discovered the wreckage of the SS Central America in the 1980s. However, even the millions of dollars that came from that discovery did not keep his creditors from filing an involuntary bankruptcy petition to try to collect money owed to them by Thompson’s company. However, an Ohio judge ordered that a receiver take possession of the bankruptcy company this past May. The receiver has now requested that the bankruptcy case be dismissed. A … [Read more...]

Even with billions of dollars in oil reserves, Brazil billionaire Eike Batista’s OGX may not be able to pay its debts to stay clear of bankruptcy. The company owes $45 million in short term debt that will become due this October. However, there is another $3.6 billion owed that will be payable over the next 10 years. Moody’s delivered another crashing blow as it lowered OGX’s bond rate last week. The struggling company may be looking at a potential bankruptcy if Batista cannot pay the … [Read more...]

Churches are not immune to the lagging economy and the recession that still afflicts a large section of the American population. In Anderson, Indiana, the Madison Park Church of God filed for Chapter 11 bankruptcy protection citing the recession and the closing of a General Motor’s plan as reasons for the bankruptcy filing. According to court documents, the church lists assets of less than $10 million with debts exceeding the $10 million mark. For more on this story see, “Big Anderson … [Read more...]

After defaulting on a loan agreement and citing a dispute with Hormel Foods Corp. as the reason for the default, AgFeed USA filed for bankruptcy protection under Chapter11 this week. The company, which supplies hog feed to China as well as being a hog producer itself, is listing assets of up to $500 million with debts only topping out at $100 million. An offer is already on the table for a possible purchase of the company as part of its restructuring. For more read, “Hog Supplier AgFeed Seeks … [Read more...]

Shareholders in the Kodak bankruptcy case have already been denied the opportunity to be heard in the bankruptcy case by having a shareholder committee to represent their interests in the case. The bankruptcy judge denied the request last year stating that it was not necessary because the goal of others in the case as to maximize the company’s value. The judge has granted a hearing on another motion requesting the committee as shareholders send letters to the court stating that they need to be … [Read more...]

It all began with biology professor, James D. Long, bestowed an endowment of $1 million to his alma matter, Lon Morris College, when he died in March 2009. The money was to be used in small amounts over 50 yeas; however, if the college collapsed the money was to go to Sam Houston State University. Lon Morris filed for bankruptcy and it appears that the money in question has disappeared. The money remaining is causing arguments on both sides. To read more see, “Sam Houston State Grabs at … [Read more...]