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Business & Commercial Bankruptcy Archives

Payless Shoesource completes Chapter 11 bankruptcy plan

It used to be the case that people in New York and nationwide flocked to Payless Shoesource stores to purchase affordable footwear. But, the company fell on hard financial times, and had to file for Chapter 11 bankruptcy. Shoppers may be pleased to hear, however, that the company has recently emerged from the protection of the bankruptcy court after around 4.5 months, and has continued its business. Through bankruptcy, although the company had to close around 673 brick-and-mortar stores, it was able to pay over $435 million in debt. This debt represented around 50 percent of that the company estimated it had when it filed for bankruptcy.

Ruling in Lehman bankruptcy shows risks of deferred compensation

The Lehman Brothers bankruptcy has been grinding along for several years, but it occasionally produces a judicial ruling that has importance outside the specific case. A recent ruling by the bankruptcy judge supervising the case provides an important reminder for employees that lucrative deferred compensation plans come with significant risks - including non-payment if the employer seeks a Chapter 7 or Chapter 11 bankruptcy.

Litigation finance - a new tool for unsecured creditors

When a bankruptcy proceeding ends, the debtor's unsecured creditors are often left wondering how to collect on what appear to be worthless claims. In business bankruptcies, a common target is the debtor's claims that are owned by the bankruptcy trustee. When risk is high and money is scarce, the trustee may not be willing to pursue what may otherwise be valuable claims. How can creditors acquire these claims and then recover what is due the debtor?

What is a voidable preference in a bankruptcy proceeding?

New York businesses often have informal advance notice of a customer's plans to file a petition under either Chapter 7 or Chapter 11. In such cases, a creditor may attempt to persuade or coerce the debtor into paying off all or part of an existing or antecedent debt. These creditors may face an ugly surprise once the bankruptcy proceeding is underway: such payments may frequently be set aside as "voidable preferences" and the payment refunded to the bankruptcy trustee.

Understanding executory contracts in a bankruptcy proceeding

When a New York business faces bankruptcy, one of the first choices that must be made is whether to seek reorganization under Chapter 11 or dissolution under Chapter 7. Choosing Chapter 7 is essentially a choice to end the business's existence, whereas Chapter 11 reflects management's desire to continue the business with reorganized debts and perhaps additional capital. If a corporation chooses Chapter 11, management must decide which business relationships should be preserved and which should be ended.

As bankruptcy looms, nursing home CEO seeks payout

A major nursing home chain, the second largest in the country is facing the real possibility of a business bankruptcy but is currently trying to navigate a dispute between the chain's chief officer and the firm which is the landlord of the chain's many properties. A private equity firm which bought the chain is also involved.

Business bankruptcy can be a beginning, not an ending

Opening a business can be an overwhelming endeavor. While many Rockland residents dream of starting their own entities and being their own bosses, few take the difficult step of forming businesses. Of those that do open their business's doors, many will face challenges in their first years of operation.

Common forms of business debt

It takes a lot for a Rockland resident to keep the doors of their small business open. From paying for utilities and rent for the physical structure of the business entity to paying the employees and stocking necessary inventory, it can seem as though all of the cash flow is out of the business instead of into it. When a business finds that it is hemorrhaging funds and unable to pay its bills, it can be important for the business owner to step back and assess where the business is losing all of its financial ground.

What is the 'small business case' under Chapter 11 bankruptcy?

Chapter 11 bankruptcy is an important legal mechanism that allows a New York business to keep its doors open while reducing its outstanding debts. In some cases, individuals can use it to eliminate their financial obligations, but, by and large, it is a process utilized by business entities. Large corporations use it frequently, but it can also be employed by small businesses.

Reorganization may be a good step for your business

With the holidays quickly approaching, many New York businesses are likely hoping for big profits to carry them into the New Year. Unfortunately for some, those sought-after revenues may be insufficient to help them start 2017 on strong financial footing. If your business is struggling and in need of help to find its way, bankruptcy may be a viable option.

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