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business and commercial bankruptcy Archives

Pacific Sunwear files for Chapter 11 bankruptcy protection

While the nation’s economy appears to be growing at steady, yet slower pace, some retailers are finding it difficult to take advantage of such growth. In a prior post, we highlighted the plight of surfwear retailer Quiksilver through Chapter 11 bankruptcy. Now, a similar company is experiencing this reality.

The basics of a receivership order

One of the most important aspects of a commercial bankruptcy is the preservation of assets that could conceivably be sold to pay off some of the business’ debts. To achieve this, bankruptcy court judges have the power to appoint receivers to act as an agent to keep, manage or even sell property that is part of the bankruptcy estate. Receivers can be appointed to preserve the interest of mortgage lenders (when real estate is at issue) or the interests of potential buyers for the business.

Can small businesses survive Chapter 11 bankruptcy?

Our last post highlighted the potential for sporting goods retailer The Sports Authority to emerge from Chapter 11 bankruptcy. Stemming from a prior post bemoaning how retailers struggle to make it through the bankruptcy process, the prospects are not promising for a happy ending. This is primarily because of how a retailer’s assets may be leveraged to prevent an effective restructuring.

What will become of Sports Authority

March is commonly a good month for sporting goods retailers. After all, a majority of the country is preparing for youth baseball leagues to begin. Also, many golf courses across the nation are opening (or are weeks away from doing so). And with March Madness ready to begin, basketball apparel usually sells well.

Will banks see bankruptcy reform applicable to them?

We have all heard the moniker “too big to fail” when it comes to America’s largest financial institutions. Indeed, the precautions now in place can prevent the economy from collapsing if one of the financial behemoths becomes insolvent, even if only on a temporary basis. But smaller banks can still fall prey to the throes of a down economy. In these instances, investors and customers alike must be protected.

How Quiksilver may find its way out of bankruptcy

In our last post, we highlighted a few reasons why it may be difficult for retailers to emerge from Chapter 11 bankruptcy. Given the changes in the U.S. Bankruptcy Code and the market for companies to facilitate going out of business sales to protect unsold assets, more retailers are apt to fold up their tents.

Why fewer retailers emerge from bankruptcy

The market for mergers and acquisitions in the middle market (i.e. transactions valued between $50 million and $2 billion) are expected to continue at last year’s pace. While that may be good news for some troubled retailers, others are likely to seek Chapter 11 bankruptcy protection as a way to restructure their obligations so that they do not have to close their doors.

A brief look at ABCs and Section 363 sales

Along with complexities and challenges of termination of a business or reorganization through Chapter 11 bankruptcy come opportunities to solve vexing financial and logistical problems. Liquidating or selling assets during a wind-down or during a bankruptcy is often necessary for smooth business operations to go on. Assignments for the benefit of creditors (ABCs) as an alternative to bankruptcy and section 363 sales in Chapter 11 bankruptcy are two ways that many business owners can proceed efficiently in the face of financial difficulties.

Commercial bankruptcy: a tool for recovery

Commercial bankruptcy may be an outcome of a corporate wind-down or it may provide a promising path to restoration of financial health for a business. This post will look at examples of each, reminding readers that business bankruptcy can be a stepping stone along the way rather than a dead end.

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