After 94 years, what was once a staple of radio and stereo aficionados has filed for bankruptcy. Though they had managed to stay in business for many years more than expected, the company will be doing a massive restructuring and closing many stores.
Statistics show that the leading cause of bankruptcy is high medical costs. When a serious medical issue comes up, the costs can become too much to handle, even with medical insurance. There are several ways to avoid this, or to lessen the impact of the out of pocket costs when a serious medical issue occurs.
Chinese solar cell maker LDK Solar Co. defaulted on its bonds last year and filed bankruptcy in the United States in an effort to continue restructuring efforts already in motion in The Cayman Islands and Hong Kong.
Based in Xinyu, China, LDK filed Chapter 15 bankruptcy protection, citing $1.13 billion in unpaid debt and another $510 million in assets at the end of May, 2014. Under Chapter 15, foreign companies are able to fend off collections efforts by U.S. creditors and distribute payments in the States. Certain U.S. affiliates including LDK Solar Systems, Inc. have filed for protection under Chapter 11.
Struggling New York-based retailer Delia’s – a clothing chain which caters to teen girls, has filed Chapter 11 bankruptcy and is currently liquidating all merchandise after attempts to find a buyer failed.
Founded in 1993, Delia’s has a retail presence of 92 stores covering 29 states. The company engages in sales via retail establishments and via the World Wide Web. It describes itself as a “girls only” brand and caters to a target demographic of females, aged 12 to 18.
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.