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Business in bankruptcy list

business in bankruptcy list

You are browsing cases discovered between Apr 6 and Jun To see more cases and enable more search features: Sign up for a free account now. May 22,  · Many of the companies on this list expect to continue operating during and after their bankruptcy reorganizations. But Pier 1 Imports (PIRRQ, $) could be done for good. Bankruptcy odds: Under 10%. The rebranded Garden Ridge is on Retail Dive's bankruptcy watch list even though it has done just about everything right. It has differentiated itself in a crowded, highly fragmented home décor market, and its operating margins are said to be higher than industry averages.

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In many cases, a business may re-emerge from Chapter 11 and continue to operate normally. In other cases, the reorganized business can be sold after some period of time. Chapter 11 is available to any type of business, including sole proprietorships, Limited Liability Companies LLCs , and corporations.

Disclaimer: The content in this article and on this website is for informational purposes only. The author is not an attorney or tax professional. Every business bankruptcy situation is different, and bankruptcy laws and regulations. If you are considering business bankruptcy, find a bankruptcy attorney and financial advisors who can help you with this process. Full Bio Follow Linkedin.

Follow Twitter. She has written for The Balance on U. Read The Balance's editorial policies. There is no creditor's committee a group of creditors who agree on how business assets are to be distributed to creditors.

Article Table of Contents Skip to section Expand. Business Debts in Chapter Single asset real estate debtors are subject to special provisions of the Bankruptcy Code. The term "single asset real estate" is defined as "a single property or project, other than residential real property with fewer than four residential units, which generates substantially all of the gross income of a debtor who is not a family farmer and on which no substantial business is being conducted by a debtor other than the business of operating the real property and activities incidental.

The Bankruptcy Code provides circumstances under which creditors of a single asset real estate debtor may obtain relief from the automatic stay which are not available to creditors in ordinary bankruptcy cases. On request of a creditor with a claim secured by the single asset real estate and after notice and a hearing, the court will grant relief from the automatic stay to the creditor unless the debtor files a feasible plan of reorganization or begins making interest payments to the creditor within 90 days from the date of the filing of the case, or within 30 days of the court's determination that the case is a single asset real estate case.

The interest payments must be equal to the non-default contract interest rate on the value of the creditor's interest in the real estate. Although the appointment of a case trustee is a rarity in a chapter 11 case, a party in interest or the U.

The court, on motion by a party in interest or the U. Moreover, the U. The trustee is appointed by the U. Alternatively, a trustee in a case may be elected if a party in interest requests the election of a trustee within 30 days after the court orders the appointment of a trustee. In that instance, the U. The case trustee is responsible for management of the property of the estate, operation of the debtor's business, and, if appropriate, the filing of a plan of reorganization. Section of the Bankruptcy Code requires the trustee to file a plan "as soon as practicable" or, alternatively, to file a report explaining why a plan will not be filed or to recommend that the case be converted to another chapter or dismissed.

Upon the request of a party in interest or the U. The appointment of an examiner in a chapter 11 case is rare. The role of an examiner is generally more limited than that of a trustee. The examiner is authorized to perform the investigatory functions of the trustee and is required to file a statement of any investigation conducted. If ordered to do so by the court, however, an examiner may carry out any other duties of a trustee that the court orders the debtor in possession not to perform.

Each court has the authority to determine the duties of an examiner in each particular case. In some cases, the examiner may file a plan of reorganization, negotiate or help the parties negotiate, or review the debtor's schedules to determine whether some of the claims are improperly categorized.

Sometimes, the examiner may be directed to determine if objections to any proofs of claim should be filed or whether causes of action have sufficient merit so that further legal action should be taken. The examiner may not subsequently serve as a trustee in the case. The automatic stay provides a period of time in which all judgments, collection activities, foreclosures, and repossessions of property are suspended and may not be pursued by the creditors on any debt or claim that arose before the filing of the bankruptcy petition.

As with cases under other chapters of the Bankruptcy Code, a stay of creditor actions against the chapter 11 debtor automatically goes into effect when the bankruptcy petition is filed.

The filing of a petition, however, does not operate as a stay for certain types of actions listed under 11 U. The stay provides a breathing spell for the debtor, during which negotiations can take place to try to resolve the difficulties in the debtor's financial situation. Under specific circumstances, the secured creditor can obtain an order from the court granting relief from the automatic stay. For example, when the debtor has no equity in the property and the property is not necessary for an effective reorganization, the secured creditor can seek an order of the court lifting the stay to permit the creditor to foreclose on the property, sell it, and apply the proceeds to the debt.

The Bankruptcy Code permits applications for fees to be made by certain professionals during the case. Thus, a trustee, a debtor's attorney, or any professional person appointed by the court may apply to the court at intervals of days for interim compensation and reimbursement payments. In very large cases with extensive legal work, the court may permit more frequent applications. Although professional fees may be paid if authorized by the court, the debtor cannot make payments to professional creditors on prepetition obligations, i.

The ordinary expenses of the ongoing business, however, continue to be paid. The debtor unless a "small business debtor" has a day period during which it has an exclusive right to file a plan.

This exclusivity period may be extended or reduced by the court. But in no event may the exclusivity period, including all extensions, be longer than 18 months.

After the exclusivity period has expired, a creditor or the case trustee may file a competing plan. A chapter 11 case may continue for many years unless the court, the U.

The creditors' right to file a competing plan provides incentive for the debtor to file a plan within the exclusivity period and acts as a check on excessive delay in the case.

The debtor in possession or the trustee, as the case may be, has what are called "avoiding" powers. These powers may be used to undo a transfer of money or property made during a certain period of time before the filing of the bankruptcy petition. By avoiding a particular transfer of property, the debtor in possession can cancel the transaction and force the return or "disgorgement" of the payments or property, which then are available to pay all creditors.

Generally, and subject to various defenses, the power to avoid transfers is effective against transfers made by the debtor within 90 days before filing the petition. But transfers to "insiders" i. In addition, under 11 U. Avoiding powers prevent unfair prepetition payments to one creditor at the expense of all other creditors. Although the preparation, confirmation, and implementation of a plan of reorganization is at the heart of a chapter 11 case, other issues may arise that must be addressed by the debtor in possession.

The debtor in possession may use, sell, or lease property of the estate in the ordinary course of its business, without prior approval, unless the court orders otherwise.

If the intended sale or use is outside the ordinary course of its business, the debtor must obtain permission from the court. A debtor in possession may not use "cash collateral" without the consent of the secured party or authorization by the court, which must first examine whether the interest of the secured party is adequately protected. Section defines "cash collateral" as cash, negotiable instruments, documents of title, securities, deposit accounts, or other cash equivalents, whenever acquired, in which the estate and an entity other than the estate have an interest.

It includes the proceeds, products, offspring, rents, or profits of property and the fees, charges, accounts or payments for the use or occupancy of rooms and other public facilities in hotels, motels, or other lodging properties subject to a creditor's security interest. When "cash collateral" is used spent , the secured creditors are entitled to receive additional protection under section of the Bankruptcy Code.

The debtor in possession must file a motion requesting an order from the court authorizing the use of the cash collateral.

Pending consent of the secured creditor or court authorization for the debtor in possession's use of cash collateral, the debtor in possession must segregate and account for all cash collateral in its possession. A party with an interest in property being used by the debtor may request that the court prohibit or condition this use to the extent necessary to provide "adequate protection" to the creditor.

Adequate protection may be required to protect the value of the creditor's interest in the property being used by the debtor in possession. This is especially important when there is a decrease in value of the property.

The debtor may make periodic or lump sum cash payments, or provide an additional or replacement lien that will result in the creditor's property interest being adequately protected. When a chapter 11 debtor needs operating capital, it may be able to obtain it from a lender by giving the lender a court-approved "superpriority" over other unsecured creditors or a lien on property of the estate.

Before confirmation of a plan, several activities may take place in a chapter 11 case. Continued operation of the debtor's business may lead to the filing of a number of contested motions. The most common are those seeking relief from the automatic stay, the use of cash collateral, or to obtain credit. There may also be litigation over executory i. Delays in formulating, filing, and obtaining confirmation of a plan often prompt creditors to file motions for relief from stay, to convert the case to chapter 7, or to dismiss the case altogether.

Frequently, the debtor in possession will institute a lawsuit, known as an adversary proceeding, to recover money or property for the estate. Adversary proceedings may take the form of lien avoidance actions, actions to avoid preferences, actions to avoid fraudulent transfers, or actions to avoid post-petition transfers. At times, a creditors' committee may be authorized by the bankruptcy court to pursue these actions against insiders of the debtor if the plan provides for the committee to do so or if the debtor has refused a demand to do so.

Creditors may also initiate adversary proceedings by filing complaints to determine the validity or priority of a lien, revoke an order confirming a plan, determine the dischargeability of a debt, obtain an injunction, or subordinate a claim of another creditor. The Bankruptcy Code defines a claim as: 1 a right to payment; 2 or a right to an equitable remedy for a failure of performance if the breach gives rise to a right to payment. Generally, any creditor whose claim is not scheduled i.

But filing a proof of claim is not necessary if the creditor's claim is scheduled but is not listed as disputed, contingent, or unliquidated by the debtor because the debtor's schedules are deemed to constitute evidence of the validity and amount of those claims.

If a scheduled creditor chooses to file a claim, a properly filed proof of claim supersedes any scheduling of that claim. It is the responsibility of the creditor to determine whether the claim is accurately listed on the debtor's schedules. The debtor must provide notification to those creditors whose names are added and whose claims are listed as a result of an amendment to the schedules. The notification also should advise such creditors of their right to file proofs of claim and that their failure to do so may prevent them from voting upon the debtor's plan of reorganization or participating in any distribution under that plan.

When a debtor amends the schedule of liabilities to add a creditor or change the status of any claims to disputed, contingent, or unliquidated, the debtor must provide notice of the amendment to any entity affected. An equity security holder is a holder of an equity security of the debtor. Examples of an equity security are a share in a corporation, an interest of a limited partner in a limited partnership, or a right to purchase, sell, or subscribe to a share, security, or interest of a share in a corporation or an interest in a limited partnership.

An equity security holder may vote on the plan of reorganization and may file a proof of interest, rather than a proof of claim.

A proof of interest is deemed filed for any interest that appears in the debtor's schedules, unless it is scheduled as disputed, contingent, or unliquidated. An equity security holder whose interest is not scheduled or is scheduled as disputed, contingent, or unliquidated must file a proof of interest in order to be treated as a creditor for purposes of voting on the plan and distribution under it.

A properly filed proof of interest supersedes any scheduling of that interest. Generally, most of the provisions that apply to proofs of claim, as discussed above, are also applicable to proofs of interest. A debtor in a case under chapter 11 has a one-time absolute right to convert the chapter 11 case to a case under chapter 7 unless: 1 the debtor is not a debtor in possession; 2 the case originally was commenced as an involuntary case under chapter 11; or 3 the case was converted to a case under chapter 11 other than at the debtor's request.

Apex Parks Group is a privately held operator of water parks and family entertainment centers in California, Florida and New Jersey. Apex Parks already was struggling thanks to competition and consolidation in the industry. However, the coronavirus pandemic hit just in time to disrupt prime spring break and summer vacation business. Facing park closures because of the coronavirus lockdowns and uncertainty in what reopening would look like, the company filed for Chapter 11 bankruptcy protection on April 8.

The company expects to eventually reopen its parks. Art Van Furniture is a privately held Michigan-based furniture and mattress retailer that got its start in East Detroit in , and has since expanded its presence to nine states.

Lee Partners three years ago. After the chain lost money in and credit card companies demanded collateral for continued support, the company began preparing for liquidation.

An attempt to refinance and save the business collided head-on with the coronavirus pandemic. The company filed for Chapter 11 bankruptcy protection on March 8, but the COVID pandemic killed its ability to reorganize under Chapter 11, forcing it to convert to a Chapter 7 liquidation.

Love's Furniture has since bought 27 of its stores and plans to reopen them under its own brand. He plans to reopen some Levin locations. But even though it was in expansion mode, it also was in distress before COVID squeezed the economy. Cinemex had been in negotiations to buy Houston-based Star Cinema Grill when the coronavirus lockdown hit. The deal would have made Cinemex the seventh largest U.

However, with theaters shut down, rent due and an uncertain future thanks to COVID concerns, the deal was scuttled. Shortly after, Cinemex filed for Chapter 11 bankruptcy protection. As demand dried up, U. The restaurants once belonged to Bravo Brio Restaurant Group, which was founded in The company went public in but went private in via a sale to Spice Private Equity, which renamed the company FoodFirst Global Restaurants.

But that turnaround was kneecapped by forced restaurant closures on the heels of the COVID pandemic. FoodFirst Global Restaurants filed for bankruptcy on April 11, writing in its filing:. FoodFirst had already closed 10 locations permanently in early January and expects to close more as their leases expire.

Unlike many companies on this list, privately held Gold's Gym wasn't struggling prior to the coronavirus pandemic. In fact, the company specifically discounts any prior issues as being a factor in its bankruptcy:. Instead, the May 4 bankruptcy was meant to help the company financially restructure. Gold's says it will permanently close 30 company-owned gyms, but it does expect its early global franchised and licensed gyms to reopen.

The company helps broadcast and cable TV providers distribute content to customers, as well as provides communications services, via a fleet of 50 satellites. Intelsat wants to launch new satellite technology that would allow it to sell off part of its C-Band spectrum as part of an FCC airwave auction. That spectrum would be sold to wireless companies as they bulk up their 5G service. So, on May 13, the company filed for Chapter 11 bankruptcy protection, which should help relieve some of that debt burden.

In fact, CEO Stephen Spengler gave the announcement a positive twist, calling the filing "a transformational moment in the history of our company.

business in bankruptcy list

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