As many Rockland County businesses know, longevity is not always a guard against financial adversity. After opening the first Bruegger's Bagels shop in Rochester in 1983, the nation's oldest Brueggers' Bagels franchisee filed for Chapter 11 protection in March 2016. Now, the franchisee is proposing to sell its remaining shops to emerge from Chapter 11.
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.
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.
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?