Posted on Wednesday, November 28th, 2012 at 8:35 pm
Lon Morris College in Jacksonville, a liberal arts school located less than 120 miles southeast of Dallas, filed for bankruptcy in July with only $11 million in assets from endowment money. Now, bankruptcy attorneys want the court to use its charitable funds to pay off its bills to creditors. The college, the only United Methodist-affiliated school, is fighting to keep the money.
According to the Wall Street Journal, a lawsuit has been filed by the Texas Methodist Foundation, the holders of the endowments, to protect the money. The foundation argues that the individuals who donated their funds in wills or family trusts did not intend for the money to be spent on creditors. However, where the money goes after bankruptcy is not clearly defined in the Bankruptcy Code.
Similar conflicts arose in the late 1980s and 1990s. The court ruling over Bishop College’s bankruptcy case in 1987 denied bankruptcy attorneys from using the school’s charitable money to pay for its debts, claiming the money was not part of the bankruptcy estate. However, in 1996, a hospital in bankruptcy was forced to use charitable donations to cover expenses.
If your business is considering filing for Chapter 11 bankruptcy, a bankruptcy lawyer can explain your options and legal rights. The legal team at the Law Office of Russell Van Beustring can help you through the bankruptcy process to ensure that you are making the right decisions for you and your company.
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 Tuesday, October 2nd, 2012 at 7:27 pm
American Airlines’ parent company, AMR Corp., posted a loss of $82 million for the month of August. AMR filed for bankruptcy in November, forcing the company to pay expensive reorganization and negotiation fees.
The company could have posted a profit of $4 million in August had it not been forced to pay $86 million in reorganization fees, including $56 million for aircraft financing negotiations. AMR posted profits for June and July, however.
According to BusinessWeek, the Fort Worth-based company’s operating income dropped from $240 million to $55 million from July to August.
If your are considering filing for Chapter 11 bankruptcy to save your business, contact the experienced Chapter 11 bankruptcy lawyers of the Law Office of Russell Van Beustring, P.C., today at 713-973-6650.
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.