Owner of the Orange County Register, Freedom Communications Inc., filed for bankruptcy this past Halloween weekend in a management-led plan to acquire the failing newspaper company. Freedom’s publisher and CEO, Rich Mirman, has gotten together with local investors and filed for bankruptcy this past Sunday in an attempt to reorganize the O.C. Register’s finances. Mirman has been in control of the day-to-day operations for the Orange County Register for around a year to date.
As reported by the newspaper, Mr. Mirman and his team of investors hope the bankruptcy proceedings will help reorganize the debts incurred since investors Aaron Kushner and Eric Spitz bought the company three years ago. This bankruptcy plan is designed to put an end Kushner’s ownership stake in Freedom Communications Inc., but still allowing Mr. Spitz to remain an investor and company chairman.
“We’re turning the page and starting a new chapter,” Mirman said. “We’ve gone through a few rocky years, and we need to redefine ourselves.”
American Apparel & Bankruptcy
American Apparel Inc has filed for Chapter 11 Bankruptcy. The Los Angeles based retailer has been plagued with financial problems, and has reportedly not made a profit since 2009. Even worse, former CEO and founder Dov Charney has been facing accusations of misused corporate funds, and allegations that he, on multiple occasions, breached the company’s sexual harassment policy.
Lehman Brothers & Doral Financial
On September 15, 2008, Lehman Brothers filed for Chapter 11 bankruptcy protection following the withdrawal of most of its clients and heavy devaluation of its assets. Lehman’s Chapter 11 bankruptcy is the largest in US history, and thought to be a major contributor to the global financial crisis in the late 2000’s.
Are you looking to get a better picture of your current financial standing? Calculating your debt-to-income ratio is a great way to monitor your personal finances, and to gain insight to what lenders are analyzing when considering your credit status.
What is a debt to income ratio?
The debt-to-income ratio compares your gross monthly income to the amount of debt (there are some exclusions to deb included such as monthly rent when you do not own your home) you currently owe. Your debt to income ratio can be figured easily if done on a monthly basis.
When thinking about reducing and eliminating your debt, it is important to first make an accounting of all the debt you owe. It is helpful to have a clear picture of how much debt you owe. Mapping out an “inventory” of how much you owe can make it easier to plan and prioritize how to pay off your debt. Continue reading
What is debt consolidation?
Debt consolidation is a term used when a person combines (consolidates) multiple debts into one, easier to manage, payment.
Usually the consolidation process is accomplished in one of two ways: (1) taking out a personal loan, and paying all or the majority of your debt off, or (2) by using a credit counseling service who negotiates a discount of the debt with each of your creditors for you. Both options have their own benefits and drawbacks.
Extra Litigation Costly, may delay Detroit Bankruptcy
Detroit has been reeling since filing for Chapter 9 bankruptcy in 2013. Emergency City Manager Kevin Orr recently went on record to say the deal made with creditor Syncora Inc. last month saved the city millions in court costs and stopped a delay that no doubt would have gone on for months if not years. At the start of last September, Detroit was able to come to terms with a deal with bond insurer Syncora Inc. to settle the $400 million debt. The deal made with Syncora Inc. includes long-term leases on a parking garage and tunnel between Detroit and Canada as well as cash.
Bankrupt Bitcoin Exchange, Mt. Gox, extends date for creditors to file
The Japanese bankruptcy trustee, Nobuaki Kobayashi, handling the Mt. Gox bankruptcy case, has recently announced a six-month extension for creditors to file claims, in an attempt to recover lost moneys during the Mt. Gox bitcoin disappearance scandal.
What else does this extension mean?
While creditors have an extra six months to file claims, there will now also be an additional six months before any formal investigation into the bankrupt exchange is completed. Nobuaki Kobayashi had set the previous filing deadline for proofs of claim on the 28th of November, 2014. Essentially, the Mt. Gox trial has now been delayed until next year, with the investigation findings to be revealed on the 9th of September, 2015.
OKPay, a payment processing firm, has paid back some of the money lost during Mt. Gox’s collapse, to Mt. Gox. The $6,014,910 total consisted of withheld deposits from its customers, that OKPay held onto in the period immediately preceding Mt. Gox’s collapse. An OKPay representative told the public that it was instructed to pay Mt. Gox the $6,014,910 it was holding, through a court order.
Large American Company Files Bankruptcy
The cupcake chain, Crumbs Bake Shop, was forced to shut down its operations this past July after several years of dwindling sales, and rising debt. Crumbs filed for Chapter 11 bankruptcy protection and was recently looking to hold an auction to see if anyone was willing to make a bid to buy the company. This past week a bid was made by television personality Marcus Lemonis and Dippin’ Dots owner Fischer Enterprises. Lemonis and Fischer Enterprises’ bid of $6.5 million dollars was unmatched and eventually accepted. The auction was deemed unnecessary because no other investors came forward with a bid of their own. Suppliers for Crumbs Bake Shop and landlords of closed locations are looking to receive around $870,000 dollars to settle debts, according to court documents.
A bankruptcy adjustment plan has been voted on by creditors, to determine if the newly constructed proposal satisfies all parties involved in the 18 billion dollar city debt. U.S. Bankruptcy Judge Steven Rhodes was told the tabulation of the adjustment plan votes would be filed on the 24th of July this coming week.
The Detroit bankruptcy case has been increasingly difficult to follow, because of the large variety of entities that must be taken into consideration. While the city of Detroit is hoping to save around 7 billion through their bankruptcy, the longer the trial goes on the more expensive it becomes. A recent expert witness had her services valued at over 400,000 dollars, which Judge Steven Rhodes ordered the city to pay.