Articles Tagged with business reorganization

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Bankruptcy Lawyer Bryan W. Stone answers the question: “What is Chapter 11 Bankruptcy?”

Sears, Roebuck & Company, commonly known just as Sears, was founded following the Civil War. Since then, the company has grown and expanded, becoming a popular place for people to shop all across America. Sears has sold a wide variety of items through stores and catalogs, such as clothes, toys, appliances, and even tombstones. As time went on, more and more competition popped up, taking away some of Sears’ clientele. Stores like Walmart and Home Depot became difficult to compete with given their low prices. Additionally, online retailers like Amazon significantly cut into Sears’ customer base. With all of this competition and its decline in sales, Sears has filed for Chapter 11 bankruptcy, according to the New York Times.

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Bankruptcy Lawyer Bryan W. Stone answers the question: “What is Chapter 11 Bankruptcy?”

In what some are saying is the final nail in the coffin for the coal industry, the largest private-sector coal mining company in the world filed for Chapter 11 business reorganization bankruptcy on April 13. The filing, by St. Louis-based Peabody Energy, is but one in a long stream of bankruptcies filed by major coal companies in the United States in the last several years. However, Peabody’s liabilities make it the biggest U.S. corporate bankruptcy this year according to data compiled by Bloomberg. The filing estimates the coal giant’s debt at $10.1 billion.

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Charlotte Bankruptcy Lawyer Bryan W. Stone of Arnold & Smith, PLLC answers the question “What is Chapter 11 Bankruptcy?”

 

A Texas bankruptcy court ruled late last month on two issues that commonly arise in business reorganization bankruptcies—also known as Chapter 11 actions.

Plumbing Charlotte Mecklenburg Bankruptcy Lawyer North Carolina Chapter 11 AttorneyThe issues concerned the notice due to putative creditors who are doing business with a company at or shortly before the time a company enters bankruptcy, as well as the effect a subsequent bankruptcy discharge has on claims later brought by creditors.

The case involved a plumbing company named AMPAM Power Plumbing L.P. The company filed for bankruptcy in 2003 and sought to reorganize its business under Chapter 11 of the Bankruptcy Code. Chapter 11 reorganizations must be approved by a bankruptcy court. AMPAM’s reorganization was confirmed on July 30, 2004.

Before AMPAM’s bankruptcy confirmation, the company entered into a contract with Capstone Building Corporation. Capstone hired AMPAM to provide plumbing services on a construction project at a university. The work was largely complete by August 2004, and Capstone issued a certificate of substantial completion.

Nearly seven years later, on February 16, 2011, Capstone became aware of issues related to AMPAM’s plumbing work on the project. It sued AMPAM in state court, seeking contractual indemnity and contribution, or reimbursement for damages it paid out on claims that it alleged resulted from AMPAM’s work.

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