Jump to Navigation

Business & Commercial Bankruptcy Archives

Toys R Us planning a comeback

One of the most publicized bankruptcies of the summer was the decision by Toys R Us to end its business operations. Perhaps because so many people had beloved memories of visiting the stores with their parents, the business bankruptcy filing struck an emotional nerve in eastern Tennessee and other states. Now, the company's secured creditors have announced plans to attempt to resuscitate the brand.

Selling the debtor's assets in bankruptcy

Companies who find themselves in a bankruptcy proceeding often decide to sell a portion of their assets to generate cash that can be used to pay creditors' claims. Some debtors even sell all or a substantial portion of their businesses while in bankruptcy. For buyers of such assets, the bankruptcy code provides a powerful incentive: such sales generally result in the transfer of assets free and clear of all liens and encumbrances. The starting point for such sales is Sec. 363 of the bankruptcy code.

What is a voidable preference in bankruptcy?

Most entries in this blog are aimed at persons or businesses who are suffering from financial misfortune and are contemplating bankruptcy. This post is aimed at the creditors of persons and businesses on the verge of bankruptcy. When a businessman hears that one of his customers is going to file bankruptcy and leave him holding a significant unpaid debt, the first instinct is to demand payment in full. Unfortunately, the bankruptcy code includes a concept called "preference." The provision prevents debtors from giving preferential treatment to certain creditors by invalidating the payment of any pre-existing debt occurring 90 days before the bankruptcy petition filing.

Tennessee-based health system seeks bankruptcy protection

Business mergers and acquisitions are often profitable if the merged entities have sufficient revenue to pay the expenses of the merger and handle any debt that was used to finance the merger. In 2016, Tennessee-based Curae Health bought three Mississippi hospitals from Franklin, a Tennessee.-based Community Health System. Now, Curae and its three hospitals are seeking bankruptcy protection because the merger failed to meet the financial projections that were used to justify the acquisition.

Bankruptcy help for businesses to get back on their feet

When a business is financially struggling, it is important for business owners to be aware that there are bankruptcy options that may allow them to address their debt-related concerns and remain in business. Chapter 11 bankruptcy provides an option to allow the business to continue to operate while restructuring its debt so it can meet its goal of returning to profitability.

Company's restructuring leads to restaurant closing

Chapter 11 bankruptcy protection provides businesses with an opportunity to stop, restructure and repair problems that are threatening the company's financial health. It can mean the difference between saving the company and having to shutter the doors.

Bankruptcy and the small business

Many owners of small businesses in Bradley County do not make a sharp distinction between their business finances and personal finances. These owners treat their businesses as if the business were merely another category of personal finances. Unfortunately, for these businesses and their owners, the lack of a clear distinction may create unexpected hardships, if the business falls on hard times -- and especially, if bankruptcy appears to be the only remedy for the business.

Valuing a business in a Chapter 11 bankruptcy

When a Tennessee business faces the possibility of filing a bankruptcy petition, one of the first questions that is asked is whether to seek reorganization under Chapter 11 or dissolution under Chapter 7. If the business chooses, the former, its executives and advisors will be required to answer a number of questions about the value of the company and its assets. Understanding these questions and how to answer them is a necessary prerequisite to choosing between Chapter 11 and Chapter 7 business bankruptcy.

Gibson seeks bankruptcy protection using pre-negotiated plan

After months of negotiations with creditors, Gibson Brands, Inc., the Nashville-based maker of legendary Gibson guitars, has filed a petition under Chapter 11 of the Bankruptcy Code. The filing was accompanied by a plan of reorganization that had already been negotiated with the company's creditors. The plan offers lessons for both large and small companies considering a business bankruptcy.

Car dealer bankruptcy clouded by allegations of fraud

The bankruptcy process depends in many ways on cooperation between the debtor and its creditors to resolve issues about asset value, existing debts and the history of the business before the petition is filed. When the parties cannot reach agreement, or when the disagreements become particularly intense, the bankruptcy court often takes a more active role in monitoring the parties' behavior. The commercial bankruptcy of Auto Masters, a group of used car lots in and around Nashville, has recently taken such a turn.

What's Your Situation:

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close
Subscribe to This Blog's Feed Visit Our Bankruptcy Website

Our Office Location:

Richard Banks & Associates

393 Broad Street, N.W.
Cleveland, TN 37364-1515
Map & Directions

Phone: (423) 244-0009
Toll Free: (866) 596-8527
Fax: (423) 478-1175

FindLaw Network

Privacy Policy | Business Development Solutions by FindLaw, part of Thomson Reuters.