Posted on November 3rd, 2011
There a few common myths about bankruptcy that are important to note if you are deciding whether or not to file for it.
First, it is commonly thought it is better for you to transfer assets and property to family and friends so that you can get it back after emerging from bankruptcy. This includes money, cars, and stocks.
Another myth is that you can settle your financial issues by cashing out your 401 (K) plan or IRA. The reason for this is because those are two of the items that are protected from bankruptcy. Therefore, if you emerge with nothing else, you will still have these.
Also, filing for bankruptcy does not mean that child support and alimony obligations will disappear because you will still have to pay these, regardless if you file for Chapter 7 or 13.
If you or a loved one has been considering filing for bankruptcy, it is important to make sure that you know the difference between the myths and facts. Contact the New Orleans bankruptcy lawyers of the Law Office of David D. Kervin Jr. by calling
Posted on October 24th, 2011
Southern Montana Electric Generation and Transmission filed for bankruptcy Friday afternoon citing that they had a serious cash flow issue.
A board meeting took place on Friday when multiple board members allegedly walked out because the board protested to seat a new representative. The members that were protested at the meeting said that they did not know that the company was planning to file for bankruptcy.
The company has five co-ops in southeastern and central Montana and they work to supply power to all of its members. The bankruptcy filing will put a hold on two lawsuits that have been filed by two of its members.
The filing has raised questions about how the company was able to borrow $300 million in order to increase one of their plants to 120 megawatts. The company has said that they are seeking to reorganize under Chapter 11 bankruptcy.
If you or a loved one has been considering bankruptcy, you need experienced representation on your side. Contact the New Orleans Bankruptcy lawyers of the Law Office of David D. Kervin Young Jr. by calling 504-599-5906 today.
Posted on June 29th, 2011
Lehman Brothers Holdings Inc. filed a new $65 billion bankruptcy liquidation plan Wednesday.
According to court documents, Lehman said it believed it had an “agreement in principle” with major creditor groups on the revised plan. The plan, if approved, would enable what remains the fourth-largest U.S. investment bank to emerge from Chapter 11 bankruptcy protection. Chief Executive Bryan Marsal said he hopes to begin payments next year.
Under the new plan, many unsecured creditors would still recover only about one-fifth of the money they are owed. The company said the plan is different than its previous plan, filed in January, in that some sums will go to unsecured creditors of the parent rather than creditors of subsidiaries.
If your business is considering filing for bankruptcy, please contact the New Orleans Small Bankruptcy Liquidation Lawyers of the Law Office of David D. Kervin, Jr. by calling 504-599-5906.
Posted on June 23rd, 2011
Lawmakers in Harrisburg, Pennsylvania are at odds over whether Chapter 9 municipal bankruptcy is the right option for the indebted state capital.
A team of state-appointed advisors has recommended against bankruptcy, suggesting instead a rescue plan that would sell an incinerator at the root of the city’s fiscal problems. The Harrisburg City Council has until July 23 to adopt the rescue plan, which also calls for renegotiating labor deals and cutting jobs. The city council requested on Wednesday that Mayor Linda Thompson prepare for bankruptcy as a last resort.
The Pennsylvania legislature is debating a bill that would create a management board with full power to implement the Act 47 rescue plan if the council does not approve.
Pennsylvania’s Act 47 law mandates that financially faltering cities implement plans to ward off Chapter 9 filings.
If you are struggling with debt, please contact a New Orleans debt negotiation lawyer of the Law Office of David D. Kervin, Jr. by calling 504-599-5906.
Posted on June 2nd, 2011
A judge on Thursday gave Borders Group Inc. more time to come up with a plan to sell most or all of the company’s stores.
A lawyer for the bookseller said the company could eventually come up with a plan to reorganize, but added that a plan to sell stores to a third party is more imminent. The company says it is in talks with “multiple buyers” to sell “most up to all” of Border’s remaining stores.
According to U.S. Bankruptcy Court documents, Judge Martin Glenn approved the extension, which gives Borders until October to file a reorganization plan and until December to hold a vote on that plan.
Without the approval of its request, Border’s exclusivity period to file a plan would have expired June 16.
If your business is facing a bankruptcy, please contact the New Orleans business bankruptcy attorneys of the Law Office of David D. Kervin, Jr., LLC, at 504-599-5906.
Posted on April 22nd, 2011
Clothing chain American Apparel was able to avert Chapter 11 bankruptcy by securing a $43 million life line Thursday.
According to a company spokesperson, the retailer’s board has approved a financing package from a group of Canadian investors that will immediately pump $15 million into American Apparel’s operations in exchange for common stock priced at 90 cents a share. The company’s closing share price yesterday was $1.24.
The investors will also be given stock warrants, priced at 90 cents a share, that could bring the company’s total cash infusion to as much as $43 million over the next sixth months.
Roy Sebag, a managing partner of Essentia Equity, one of several lenders in the rescue package, said the issuance of new stock and warrants will dilute current shareholders, but “the return on equity looks very attractive to everybody longer term.”
If your business is facing bankruptcy, please contact a New Orleans Bankruptcy Lawyers of the Law Office of David D. Kervin, Jr., by calling 504-599-5906.
Posted on April 15th, 2011
Hawaii’s Unity House Inc. filed for Chapter 11 bankruptcy protection on Wednesday.
The famous Honolulu nonprofit filed for Chapter 11 bankruptcy protection to protect its assets and gain time to repay a $5.5 million loan on The Lotus at Diamond Head hotel. The organization needs more time to secure funds to repay the loan, borrowed from MK Pacific LLC.
According to court documents, in pursuing repayment of the loan, MK Pacific LLC filed a foreclosure lawsuit against Unity House and a receiver was appointed in the case last month.
Unity House chairman Jim Boersema told reporters the organization could sell the 51-room Lotus at Diamond Head to help finance its exit from bankruptcy. The hotel is currently undergoing an appraisal.
Court documents show Unity House’s debts are between $1 million and $10 million. The organization listed assets of more than $20 million.
If your business is facing bankruptcy, please contact a New Orleans bankruptcy lawyer of the Law Office of David D. Kervin, Jr. LLC by calling 504-599-5906.
Posted on March 10th, 2011
A federal bankruptcy judge is expected to rule Thursday on whether Blockbuster inc. can stay in business or will be liquidated.
The hearing begins at 10:00 a.m. Thursday in bankruptcy court in Manhattan. Among those objecting to Blockbuster’s plans are several movie studies as well as the government’s own bankruptcy-court representative. Summit Entertainment and an official creditors committee say liquidation would help secure repayment for their goods. They are asking U.S. Bankruptcy Judge Burton Lifland to reject a proposed sale of the company for $290 million to senior bondholders.
Blockbuster has asked the judge to approve the proposed sale of the company to New York-based hedge fund Monarch Alternative Capital. Lifland signaled last week however, that the sale process could be in trouble, calling the Monarch-led bid “one of the most aggressive documents that I have seen in my 31 years on the bench.”
If you are facing bankruptcy, please contact a New Orleans Bankruptcy Lawyer of the Law Office of David D. Kervin, Jr., by calling 504-599-5906.
Posted on January 20th, 2011
Movie rental company Blockbuster Inc. has been given more time to file its restructuring plan.
The Dallas-based company filed for Chapter 11 bankruptcy protection in September. A regulatory filing with the Securities and Exchange Commission indicates that the company now has until February 4 to file its reorganization plan. The company has previously been granted filing extensions.
Blockbuster is expected to emerge from bankruptcy protection this year under new owners. The company is hoping the bankruptcy process will reduce its debt from nearly $1 billion to around $100 million.
The rental-chain has also begun talks with its bondholders for an additional $200 million to $250 million for use after it leaves bankruptcy protection.
Blockbuster has closed more than 1,000 stores in the past two years and plans to close an additional 182 stores in the next few months.
If your business needs is considering filing for Chapter 11 bankruptcy, please contact the New Orleans bankruptcy attorneys of the law office of the Law Office of David D. Kervin, Jr., LLC, by calling 504-599-5906.
Posted on December 29th, 2010
A U.S. bankruptcy judge in New Orleans threw out a financial filing from Direct Marine Services, a Houma Shipyard.
The company was formed in 2008 and filed for bankruptcy in February so that it could reorganize funds under a court supervision. The company claimed that they had debt from 80 creditors owing more than $2.5 million.
The ruling gives the company no protection therefore the investors can now receive there investment. As a part of this, money can now be taken that would have been paid to former employees for unpaid wages. The court said that there was very little to this case.
If you or a loved one has questions about your current financial situation, Contact the New Orleans bankruptcy lawyers of the Law Office of David D. Kervin, Jr., LLC, by calling 504-599-5906 today.
