Is Hostess Going Out of Business?

Weighed down by debt, management turmoil, rising labor costs and the changing tastes of America, Hostess decided on November 16th that it could no longer restructure its obligations through a chapter 11 bankruptcy and, instead, must  sell its assets and go out of business. This is not the sequence of events that the maker of Twinkies envisioned when it filed […]

Read More

Bankruptcy Filings Are Down

Total bankruptcy filings nationwide for July 2012, decreased 12 percent compared to the previous year, according to data provided by Epiq Systems, Inc.  July bankruptcy filings totaled 97,073, down from the 110,173 filings registered in July 2011. Total commercial filings for July 2012 were 4,513, representing a 22 percent decrease from the 5,800 filings during the […]

Read More

Bernanke Says Economic Recovery has a Long Way to Go

The U.S. economy is not yet on a certain path to a full recovery, Federal Reserve Chairman Ben Bernanke said in a televised interview with ABC News on Tuesday. “It’s far too early to declare victory,” Bernanke told ABC’s Diane Sawyer. Portions of the transcript of the interview were aired Tuesday night on “World News.” […]

Read More

History of Bankruptcy Laws in the U.S.

The notion of being insolvent or being bankrupt dates back numerous centuries. In Ancient Greece, where bankruptcy did not exist, if a man owed a debt and he could not pay, he and his wife, children or servants were forced into “debt slavery,” until the creditor recouped losses via their physical labour. In the Old […]

Read More

Chapter 15 (Pertaining to International Proceedings) is Alive and Well

Vitro S.A.B. de C.V., a leading manufacturer of glass in Mexico, recently received approval of its restructuring plan under Mexican Insolvency Law (Ley de Concursos Mercantiles), in large part because a federal bankruptcy court in the U.S. halted the efforts of certain bondholders to prosecute a New York lawsuit against Vitro that contravened chapter 15 of the Bankruptcy Code. In July 2011, Vitro […]

Read More

American Airlines Plans to Grow Out of Bankruptcy

AMR Corp., which filed bankruptcy in December 2011, recently announced the deep cuts that most consultants had long predicted. AMR said it is eliminating 13,000 jobs, terminating its four pension plans, grounding older planes and restructuring supplier contracts, in hopes of saving $2 billion in operational expenses. The job cuts are not news in airline […]

Read More