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Just this week, another big financial company — CIT Small Business Lending Corporation — filed bankruptcy. CIT filed a “prepackaged” filing, in which terms for restructuring are negotiated before the bankruptcy case is filed. In more conventional bankruptcy filings, it can take a year or more before a plan is confirmed; in a pre-pak, filers [...]
In Wednesday’s Business Week, Ben Steverman’s anaylsis of the possiblities of upcoming bankruptcy activity indicates that filings, rather than slowing as the economy gains its footing again, will instead swell with the failure of numerous entrepreneurial and high-debt companies. His opinion is that this will be due largely to the continuing spin-down in consumer demand [...]
Although they said it could not be done, headlines now proclaim that Chrysler and General Motors have navigated the bankruptcy process in record speed. Indeed, new companies have “emerged” from each bankruptcy case. However, both bankruptcy cases are still pending (see here and here), and much more still needs to be done in each bankruptcy case, [...]
Federal Bankruptcy Court Judge Robert Gerber approved the sale of most General Motors assets to a new corporation to be owned by the governments of the United States, Canada and the province of Ontario, the United Auto Worker’s Voluntary Employee Benefit Association trust (“VEBA”), and GM bondholders. Gerber today also denied a “fast track” appeal to [...]
According to the Detroit News, General Motors reversed the closing of 41 of the 2,100 dealerships originally targeted to be closed as part of GM’s bankruptcy and restructuring.
This afternoon, the United States Supreme Court issued a stay of the sale to Fiat SpA of the assets of Chrysler LLC, currently attempting to exit bankruptcy proceedings so that it may proceed as a going concern in the global automotive industry.
Now that the Bankruptcy Court has approved the sale of Chrysler’s assets to a consortium of buyers lead by Italian carmaker Fiat, the next major issue is which Dealer Agreements will be assumed and which ones will be rejected.
General Motors Corporation filed a petition for Chapter 11 bankruptcy protection this morning in the Second District of New York Bankruptcy Court.
According to the bankruptcy filing, as of March 31, 2009, General Motors employed approximately 235,000 employees worldwide. In addition, General Motors had consolidated global recorded assets of approximately $82.3 billion and liabilities of $172.8 [...]
We have been discussing preferential payments, defenses and avoidance tactics. But what businesses care about most is getting paid for goods and services provided. This entry will discuss how to collect from a customer who has declared bankruptcy.
We previously dissussed what preferences are and some common defenses. Many small businesses may be wondering if there is any way to get your money, but avoid claims of preferential payment. Unfortunately, there is no absolute, “slam dunk” way to avoid a bankruptcy preference claim risk.