Bankruptcy

Who does Kerry Katona blame for having to declare bankruptcy twice?

image

It amazes me how celebrities think they can live the good life, spend spend spend and not think about the consequences. Sadly one doesn’t have to be a celebrity to get into the kind of trouble that has seen Kerry been declared bankrupt twice in 5 years.

But who is at fault or to blame for allowing Kerry to fall into financial ruin twice?

The cowboy loan shark sites such as Cash Lady, which funny enough was the company Kerry was recommending, Wonga, Pounds to pocket etc. They offer a quick money solution at ridiculously high interest rates (high being exorbitant by any sane or intelligent person. We are talking hundreds and even thousands of percent).

(more…)

Comments Off

Dionne Warrick bankrupt.

image

It is funny (not) how these ex rich folk always blame bad financial management after they declare bankruptcy. There they have been living the high life for many years and not paying the correct tax and then boom, one day it all catches up on them.
image

Source Link: Sky News

Comments Off

Atari playing on despite filing for bankruptcy.

atari-logo

The U.S. arm of Atari, the iconic video game company that created “Pong,” filed for bankruptcy on Monday.

But Atari will live on. The move is aimed at breaking the American branch away from its unprofitable French parent company.  The firm that gave the world Pong more than 40 years ago wants its US business, along with three other companies, Atari Interactive, Humongous, and California U.S. Holdings, to be separate from the French parent company known as Atari S.A

atari-pong

 

 

Comments Off

Gary Dourdan of CSI is bankrupt.

image

You gotta wonder how an actor of his stature and fame can be bankrupt? But it’s true according to TMZ.com

Comments Off

OnLive laying off staff & filing for bankruptcy.

image

image

Source: Android and me

Comments Off

Ex Popworld presenter Miquita Oliver files for bankruptcy.

image

Source: Sky News

Comments Off

Kodak files for bankruptcy.

image

19000 jobs maybe affected by the bankruptcy.
Source: BBC News

Comments Off

Raymond and Danny Grehan declare bankruptcy.

image

Source: Reuters

Comments Off

Every 3.69 minutes someone is going bankrupt (scary!)

According to Credit Action, the debtors’ charity, people go bankrupt at the rate of one every 3.69 minutes. A property is repossessed in the UK every 11.4 minutes. Spare a thought for the hard-worked staff of the Citizens Advice Bureau who handle an estimated 9.500 new debt problems every day. A staggering 16,348 individual bankruptcy petitions were made in the first three months of this year, along with 2,177 company winding-up petitions due to financial difficulty.

Source: The Independent

Comments Off

Mexico airline Mexicana files for bankruptcy.

Mexico’s biggest airline, Mexicana de Aviacion, has filed for bankruptcy protection after failing to reach a deal with trade unions on cost cutting. The heavily-indebted airline said flights would continue while it restructured its finances. Mexicana had proposed deep pay cuts for pilots and crew, as well as a 40% reduction in the workforce.

Mexicana is the biggest airline to go bankrupt since Japan Airlines. It does not come as a big shock: Mexican airlines have faced tough conditions lately, battling the deepest recession in the Americas.

Source: The Economist

Related Website Links:

Comments Off

GM file for chapter 11 bankruptcy.

GM

General Motors has finally filed for Chapter 11 bankruptcy after weeks of speculation, bidding wars etc.

The restructuring is suspected to change GM in a big way, with over 20000 US workers likely to lose their jobs as GM streamlines its operations. GM currently has 173000 employees across the US, Canada and Mexico.

US Chapter 11 bankruptcy protection gives an American company time to restructure its finances while being protected from its creditors.

US Taxpayers will end up with a 60% stake in GM, with the union, its creditors and federal and provincial governments in Canada owning the remainder of the company.

Video from WPRI.com

Chapter 11 – what does it mean for a business?

large-bankruptcy-sign-2

Firstly it’s a term widely used in the US. Wikipedia defines Chapter 11 as the following:

When a business is unable to service its debt or pay its creditors, the business or its creditors can file with a federal bankruptcy court for protection under Chapter 11. In Chapter 11, in most instances the debtor remains in control of its business operations as a debtor in possession, and is subject to the oversight and jurisdiction of the court.

Typically there are different chapters of bankruptcy depending on how “deep in the shit your company is in”. However chapter 11 bankruptcy, the lesser of the two common bankruptcy filings, allows a company to continue business while sorting out its financial affairs. So if you are doing really badly and owe tons of cash to others, this chapter allows you to continue doing business while putting yourself into even more debt, well it’s meant to bide a business some time.

After a Chapter 11 Bankruptcy has commenced, the debtor has 120 days from the day the order for relief is granted to submit a reorganization plan to the Office of the United States Trustee. The essential element in any reorganization plan is careful planning. This reorganization plan, prepared by an accountant, is often very long and detailed.

The most important thing to be kept in mind is that filing for bankruptcy should not to be taken lightly. It reflects your credit rating for many years.

I will cover the rest of the chapters in future posts. At the moment Chapter 11 appears to be the most common form of bankruptcy and I am seeing a lot more news recently on it.

Below are some of the companies that have filed for Chapter 11 in the past 48 hours:

Companies that filed for Chapter 11 bankruptcy protection.

bankruptcy