The following is a list of some recent larger U.S. bankruptcy filings in various industries. To the extent you are a creditor to any of these debtors, or other entities which may have filed for bankruptcy protection, you as a creditor are entitled to certain protections under the Bankruptcy Code.
AUTOMOTIVE
Parts maker Checker Motor Corp. files for Chapter 11 protection in Michigan.
Parts maker Contech U.S., LLC, affiliates files for Chapter 11 protection in Michigan.
PACKAGING
An examination of the impact of an insolvent respondent in an arbitration.
In 2008, the catastrophic effect of the credit crunch spread to most world economies, touching governments, companies and individuals alike. As in previous recessions, insolvency is affecting increasing numbers of individuals and companies. UK government figures show that individual insolvencies went up by 8.8% in the third quarter of 2008, with corporate liquidations up by 10.5% in the same period. Commentators predict that this trend will only accelerate through 2009.
The following is a list of some recent larger U.S. bankruptcy filings in various industries. To the extent you are a creditor to any of these debtors, or other entities which may have filed for bankruptcy protection, you as a creditor are entitled to certain protections under the Bankruptcy Code.
AMUSEMENT PARKS
HRP Myrtle Beach Holdings converts to Chapter 7; unable to find post-petition financing.
BANKING
Silver State Bancorp files Chapter 7 petition in Nevada.
A grim report on bankruptcy filings was recently issued by the Administrative Office of the U.S. Courts. Federal bankruptcy filings increased by 30% for the 2008 fiscal year ending September 30, 2008. Business filings increased by 49% to 38,700 from 26,000 for the 2007 fiscal year. Individual bankruptcies, the bulk of all bankruptcy filings, increased 30%, to 1.043 million from 801,000 in 2007 fiscal year. States showing the largest number of filings on a per capita basis are Tennessee, Nevada, Georgia, Alabama, and Indiana.
AUTOMOTIVE
EZ Lube LLC, Express Lube Inc. filed for Chapter 11 protection in Delaware.
Key Plastics files prepackaged Chapter 11 petition; secured $20M in DIP financing.
Precision Parts International filed Chapter 11 petition; commences winding down operations.
BROADCASTING
Equity Media Holdings, Corp. filed for Chapter 11; secured lender seeks conversion to Chapter 7
ENERGY
Extending credit to risky customers in the automotive industry has increasingly required active and careful management of the prospective sale and the account receivable to assure payment. The news of GM’s, Ford’s and Chrysler’s financial condition, and any likely affect of their bankruptcy on its suppliers, has changed the definition of “credit risk” to include otherwise traditionally “credit-worthy” customers that operate in financially-uncertain industries.
As the Seventh Circuit has recently made clear in Airadigm Communications, Inc. v. FCC, bankruptcy courts have the discretion under Bankruptcy Code §524 to approve a release contained in a Plan of Reorganization of a party which did not seek bankruptcy protection. Such a non-debtor release is more likely to be approved by the bankruptcy court where the creditors do not object to the confirmation of the Plan or vote to approve the Plan.
We look at the recent case of Barlow Clowes International Ltd & Ors v Henwood [2008] EWCA Civ 577 which considers when a domicile of origin can be revived.
Background
In its judgment in Haine v Sec of State for BERR and the liquidator of Compounds Section Ltd the Court of Appeal has decided an important question on employer insolvency.
In Dynamex Friction Ltd v Amicus an administrator had dismissed the entire workforce immediately on being appointed because the company had no money to pay its debts. At that time no transferee of the insolvent business had been identified and there was no prospect of a sale. However, the administrator did shortly afterwards agree a sale of the remaining company assets to a newly formed purchaser company that had links with the directors of the ‘old’ company.