Chapter 11 Bankruptcy
Despite Lampert’s efforts, Sears files for Chapter 11
On October 15, after more than 130 years in business, former retail giant Sears filed for Chapter 11 bankruptcy protection in the face of mounting debt and shrinking profits. In a post earlier this month, we discussed now-former CEO Eddie Lampert’s plan of leveraging his hedge fund, ESL Investments, and other resources to raise capital…
Read MoreToys R Us bankruptcy continues to unfold with severance package
Thousands of workers laid off when toy retailer Toys R Us filed for Chapter 11 bankruptcy might soon be receiving severance payments. The multimillion-dollar severance package, funded by two of the three equity firms that purchased the company in a 2005 leveraged buyout, could provide relief for workers struggling since the company closed all 850…
Read MoreSears CEO suggests plan to avoid bankruptcy
The CEO of Sears, a well-known department store chain with a long history in New Mexico and across the country, recently revealed a plan to hopefully help the company avoid a bankruptcy filing. The plan involves leveraging assets including real estate and inventory, and taking advantage of CEO Eddie Lampert’s hedge fund, ESL Investments, to…
Read MoreU.S. Trustee’s office objects to Toys R Us bankruptcy plan
The U.S. Trustee’s office announced this week that they have major concerns about the viability of the Chapter 11 bankruptcy plan for Toys R Us (and subsidiary Geoffrey Holdings LLC) due to the fact that the current arrangement fails to adequately compensate vendors and other creditors. The bankruptcy watchdog office filed an official objection due…
Read MoreCompany files for Chapter 11 bankruptcy, a second time
New Mexico business owners may relate to a high-end furniture company’s current financial situation, especially those who have known their shares of ups and downs where costs and profits are concerned. It’s the mother company for several well-known furniture brands. Due to circumstances the company believes are likely to get worse instead of better, owners have…
Read MoreRetail bankruptcy on the rise
In April, the Albuquerque Journal reported that five Payless ShoeSource stores will close in New Mexico, including one in Albuquerque. This decision was made in connection with the company’s Chapter 11 bankruptcy filing. “Chapter 11” refers to the U.S. Bankruptcy Code and is a form of business reorganization bankruptcy that usually allows a business to…
Read MoreBasic considerations in small-business bankruptcy
We have written lately about small-business debt collection. Today we will instead look at the reverse problem: when a small business cannot pay its debts and considers bankruptcy as a potential answer. Get legal advice When a small-business faces financial challenges, the owner should speak with an attorney about potential legal remedies. Can the business…
Read MorePart 1: Choosing between Chapter 7 and Chapter 13 bankruptcies
For many people, the past 10 to 20 years may have been financially challenging. Many people were impacted by the recession. For example, many experienced job loss, flat wages, loss of home, increased health insurance premiums or high deductibles, mounting medical bills, unsustainable student loan payments, high credit-card debt and more. Any New Mexican struggling…
Read MoreLegal counsel can help determine how to handle medical debt
It is common knowledge that many people are shouldering staggeringly heavy medical debt, especially as premiums and deductibles get higher and higher. We have posted blogs about medical debt and bankruptcy in the past, but unfortunately individuals and families continue to face financial strain because of high health care bills. No matter how careful a…
Read MoreNew Mexico bankruptcy filings: Nuts and Bolts
Many people do not know much about how to file for bankruptcy relief. Bankruptcy matters are governed by federal bankruptcy law and are heard in federal bankruptcy court. The U.S. Bankruptcy Court of the District of New Mexico is located in Albuquerque, where most hearings are held. Some matters are also heard by judges in…
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