admin on December 10th, 2008
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Two Democratic congressmen promise to make the nation’s housing crisis and bankruptcy reform their first priority when congress reconvenes in January. As the automotive bailout seems to be coming to a conclusion, two Democrat congressmen are working to change the bankruptcy rules to allow judges to modify mortgage terms and forgive principal and miscellaneous fees. The current bankruptcy law only allows judges to intervene on mortgage terms on investment property.
Senior Senator Durbin of Illinois will reintroduce a bill he entered into a lame duck session of the last congressional session. His bill was a mild modification of the same bill then Senator Obama sponsored, but was narrowly defeated during the spring. US Rep. Brad Miller of North Carolina is also planning to introduce a similar version of the bill in the House side of congress. These bills are heavily opposed by financial institutions that fear this bill becoming law will drive mortgage interest rates up and interfere with contract law. However, lawmakers are starting to realize the housing industry is at the heart of concern for the economy.
This news comes as Chairman of the House Financial Services committee, US Rep. Barney Franks of Massachusetts warned he will hold up any further use of the $700 billion economic bailout without some portion being used to modify defaulting mortgage loans.
admin on December 10th, 2008
The Tribune has hired well known bankruptcy advisers and is reportedly preparing to file for a Chapter 11 bankruptcy. The newspaper and broadcasting giant has experienced a nearly 20% drop in its advertising sales over the last year. The company has been experiencing rough financial times over the past four years with devalued stocks and underperforming assets. The company is currently $12 billion In debt and will need the protection of the chapter 11 bankruptcy in order to continue operations.
The Tribune owns several popular newspapers and television stations across the nation and the Chicago Cubs professional baseball team. The Tribune has agreed it will sale some of its assets to regain control of its finances. The Tribune stated the Chicago Cubs are for sale now and some newspapers may find themselves on the sale block soon.
admin on December 5th, 2008
After numerous closed door meetings and several congressional testimonies, General Motors (GM) and Chrysler are reportedly leaning toward filing bankruptcy. Although no official positions have been released by automotive giants, conditions of an acceptable bankruptcy plans have been discussed. If the government prepackages the bankruptcy and provides government loans to assist in a partial bailout, then the two automakers may be facing bankruptcy.
The top three domestic automakers, GM, Chrysler and Ford employ approximately 250,000 people throughout the Midwest and Southern regions; however, 2.3 million people are indirectly employed by the automakers, which equates to 3% of the national labor force. Financial issues within the auto could have a enormous negative impact on the nations already fragile economy. Decisions by the government and the auto industry are expected to be made soon.
admin on December 4th, 2008
B Moss Clothing Company has joined the ranks of several household brands to recently file for chapter 11 bankruptcy. The women’s apparel company has been in negotiations to sell the 70 year old company over the last year. However, financing options left the purchasers without the necessary cash to complete the sale of B Moss brands and its 70 stores across the nation. The clothing company has seen tough times in its 70 year history and reverted to several marketing techniques to keep the company moving forward, but these hard economic times proved too much for B Moss to overcome.
Many clothiers have reported weakening sales, as the doors have been closed of several major retail competitors. B Moss Clothing has requested the bankruptcy court allow it to immediately proceed with it’s last option of liquidating their assets of $13 million to satisfy debt and close the doors on its operations.
admin on December 4th, 2008
Bally’s Total Fitness has filed for protection under a Chapter 11 bankruptcy. The depressed economy has delivered a blow to many industries, as Americans become more discerning about luxury or recreational expenditures. Bally’s has been a leader in the fitness industry for decades. The company reported its decision to file for bankruptcy was to allow the company to reduce its debt. The company hopes its operations can remain financially functional while it continues its search for a buyer.
Chapter 11 is a form bankruptcy used by businesses. The chapter 11 bankruptcy will provide protection to a company from its creditors, while it attempts to restructure its debts. The fitness giant is hoping to streamline its operations to make it even more attractive to purchasers. Bally’s currently has over 3 million members at its 347 fitness facilities across the nation.
