Judge Steven Rhodes began hearing final arguments on the Detroit bankruptcy case on October 27. At that time, the judge said he would deliver a decision on November 7 to either reject or approve the city’s plan.
If that schedule remains in place, it could mean the end of Detroit’s bankruptcy not even 18 months after its inception. Major creditors are in opposition to Detroit’s reorganization and have been coming to various deals since September when a trial in the case began. Rhodes said that the settlements in the works make his job easier when it comes to deciding whether or not to approve the plan.
GT Advanced Technologies Inc. (GTAT) has filed for bankruptcy seeking Chapter 11 protection by the court. GTAT is a sapphire manufacturing company that recently received a huge pre-payment from the Apple corporation in the amount of $578 million. The announcement came on the morning of October 6, 2014.
GTAT’s current plan is to continue operating as usual while it attempts to come up with reasonable resolutions to the company’s current financial issues. The day of the filing, trading of GTAT stock came to a halt as news of the impending announcement spread. When the trading resumed, the price of shares went down more than 90%.
On 26 August, 2014, the U.S. Bankruptcy Court in New York State’s Southern District held in the case of MPM Silicones, LLC that it was acceptable for secured creditors to be “crammed down” in chapter 11 bankruptcy plans which include replacement notes which bear interest at rates that fall substantially below what is common for the market. Unless the ruling is overturned, many secured lenders will be faced with losing not just any negotiated rates in bankruptcy restructuring, but also anything remotely resembling market treatment. The result of this risk would likely be tighter availability and increase of cost to borrowers engaged in transactions that are levered.
Trump Entertainment Resorts has filed bankruptcy for the third time. The action represents yet another blow to Atlantic City’s struggling casino gaming industry. The company runs two casinos in the city.
With an ever-increasing level of competition, the casinos in Atlantic City are struggling to bring in the gambling dollars and are competing with over 40 “neighboring” casinos. Gaming revenues have dropped nearly by half from a peak in 2006 of $5.2 billion.
Parliament House, an iconic gay destination entertainment complex and resort in Orlando, Florida, has filed for bankruptcy. The parent company is currently $15.5 million in debt.
Set on 4.5-acres along Orange Blossom Trail, just about one and a half miles out of downtown Orlando, the complex defaulted on several loans during the 2009 recession and has been fighting foreclosure ever since.
The Parliament House property is comprised of a 112-room hotel, several bars, an entertainment complex of approximately 10,000-square-feet, an outdoor stage, and a pool.
On July 30, 2014, a court-appointed mediator representing Argentina told the press that the country would be defaulting on debts for a second time. “Imminently…in default” on nearly $20 billion of obligations. This happened after Argentina failed to make a $539 million payment on interest.
Argentina also defaulted on over $80 billion in sovereign debt in 2001.
To make matters worse, the country is also currently experiencing a recession. In fact, it is experiencing its second recession in just two years. The last one happened in 2012 and was just slightly worse than the current one. The global economy is said to be partly to blame since Argentina relies greatly on exports.
Dallas-based Energy Future Holdings, a Dallas-Based company, has filed for Chapter 11 bankruptcy after coming to a deal with its creditors. The petition was filed in Delaware.
The deal calls for the company to dissolve its retail arms and power generation divisions. In exchange, they will receive a reduction in debt.
Energy Future Holdings in the largest power company in the state of Texas.
The terms of the restructuring agreement call for ownership of Texas Competitive Electric Holdings to be transferred to the company’s first lien lenders. The deal would eliminate an estimated $23 billion in debt.
Mt. Gox, a well-known bitcoin exchange based in Tokyo, filed for Chapter 15 bankruptcy protection in the US on June 17. The filing comes more than one week after the company filed bankruptcy in Japan.
Mt. Gox’s trustee for the Japanese bankruptcy case, Nobuaki Kobayashi, stated previously that securing the approval to file bankruptcy in the US was necessary for adding more influence to the case and vetting any plans for revival.
There aren’t many things that can turn your life upside down like filing for bankruptcy. Over a million Americans last year had to make the gut-wrenching decision to file and start all over again. Bankruptcy, if at all possible, should be avoided to prevent long-term damage to your credit. However, every situation is different, and sometimes getting a new start is the only way to stay above water, even if that means long-term consequences.
“I could really go for a lukewarm piece of food court pizza right now,” said no one ever. Unfortunately, Sbarro pizza does not rank high in the foods people flock to the malls to eat, and it shows in the statement made by the pizza chain on Monday that they were filing for bankruptcy. This will be the second time Sbarro has filed for bankruptcy in the last three years, the first time being in 2011. Rising prices and a drop in food court traffic caused the chain to file the first time. The company came back strong offering a custom pasta station, new recipes, and their famous open-flame ovens, but unfortunately it was not enough and Sbarro has found itself in the same position again.