Posted on Thursday, November 15th, 2012 at 10:32 pm
Part of Kodak’s deal will allow it to borrow $793 million. However, the company will have to sell off its patents for at least $500 million. It has been struggling to find a buyer for the past year, but it is confident that it will be able to sell off these valuable assets in time.
This extra money will greatly help the company move forward in its plans to exit Chapter 11 bankruptcy protection and reorganize its corporate objectives. The once-mighty producer of camera and film equipment held a 90 percent market share in the early 90s, but became complacent and did not switch to digital mediums quickly enough. Its failure to keep up with the technology of the age cost it dearly.
Kodak’s goal is to exit bankruptcy protection in the first part of next year.
Filing for bankruptcy protection is a difficult, but sometimes necessary decision for a company to make. If your small business is facing unmanageable debts, you do not have to face your creditors alone. Enlisting the services of a bankruptcy lawyer can help you determine which kind of bankruptcy is most appropriate for you.
Posted on Monday, November 12th, 2012 at 10:08 pm
Members of the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union that work for Hostess Brands Inc. have gone on strike to protest the proposed labor contract presented to them in September as part of Hostess’ restructuring plan under Chapter 11 bankruptcy. The contract would cut wages by eight percent, abolish the eight-hour workday, and change employee pension plans.
According to Bloomberg, the labor contract was rejected by 92 percent of union members. The strike began last Friday at 23 of the Twinkie maker’s 36 plants. However, the company says enough workers are not striking to keep about half of the plants on strike operating. A spokesperson for the company is urging workers to go back to work in order for the plants to stay open.
Hostess warns that if the striking plants do not return to work then it may be forced to shut down those plants and lay off thousands of workers. The president of the union said in a statement that they are striking not just for Hostess employees but for all unionized workers who are protected by collective bargaining agreements. Hostess filed for bankruptcy for the second time in January and listed its liabilities at $1.43 billion.
If your business is forced to cut back due to financial problems, an experienced business bankruptcy attorney can help explain your options and tell you if bankruptcy is right for you.
Posted on Monday, June 25th, 2012 at 8:42 pm
Struggling camera company Ritz Camera filed for Chapter 11 bankruptcy protection for the second time in three years on Friday. The Beltsville-based business claims it has more than $50 million in liabilities.
Despite seeing a 20 percent increase in sales in May and getting an $8 million investment from Transcom Capital in 2009, Ritz officials say it was not enough to maintain operations. Competition from camera phones has weakened camera and camera equipment sales.
According to the Washington Post, Ritz plans on closing 128 of its 265 retail locations that are under-performing and laying off half of its staff. It is expected to be up for auction in September.
If your business is considering filing for Chapter 11 bankruptcy, contact the Chapter 11 bankruptcy lawyers from the Law Office of Russell Van Beustring, P.C. by calling 713-973-6650.