First, when your case is dismissed the automatic stay order is lifted, leaving you unprotected from credit collections. Any of your creditors may resume collection efforts against you at this time. Second, you may be required to wait 6 or more months before being eligible to file for bankruptcy again. If you are going to voluntarily dismiss your case, be sure you will not need bankruptcy protection again in the immediate future.
Source: leebankruptcy.com
Video: Business as usual despite American Airlines bankruptcy, says Qantas
The ins and outs of voluntary bankruptcy
In the situation that your income doesn’t cover your outgoings, meaning you have essentially become ‘insolvent’, instead of waiting for further debts to rack up and to avoid legal action, declaring yourself as bankrupt can be the first and last step to becoming debt and stress free.
Source: co.uk
New Hampshire’s Bankruptcy, Business Law and Foreclosure Blog: Reaffirmation Agreements in Bankruptcy
A debtor may wish to repay a debt, even though that debt would normally be discharged in bankruptcy case. For example, a debtor may wish to keep his/her car. To do so, the debtor enters into a reaffirmation agreement with the creditor who holds the loan/title to the car. Reaffirmations are voluntary and not required by law. It is recommended that the debtor carefully consider whether or not the agreed upon payments can be made before entering into a reaffirmation agreement. Even though the debtor is current on his/her car payments, the car lender may repossess the car if a reaffirmation agreement is not made.
Source: blogspot.com
What Is IVA (individual Voluntary Arrangement)?
There are certain advantages and disadvantages with an IVA in compared to other debt management solutions, which specially depend on individual to individual, the profession and circumstances. As such in order to get the best advice it is always desirable rather recommended contacting Financial Advisor who can only suggest the best possible solutions An IVA is a private agreement between the creditor and the debtor. The debtor and creditor are listed publicly on Personal Insolvency Register and will be recorded by the credit rating agency. This will make very difficult for the debtor to get credit from any financial institution if anything gets wrong the matter. Sometimes some frauds also jump in the business and put you in the terrible mess. So make sure to investigate and take a right decision.
Source: wordpress.com
Paying Discharged Debts : Texas Bankruptcy Blog
In some cases a debtor may want to voluntarily repay a debt that is discharged in bankruptcy. This situation occurred in a very public way in Connecticut. U.S. Senate candidate Linda McMahon recently announced that she and her husband Vince will repay creditors discharged in their 1976 bankruptcy. Linda and Vince McMahon are synonymous with professional wrestling and the WWF and WWE. After their personal bankruptcy, the McMahons spearheaded the development of professional wrestling from regionalized entertainment to an international stage. Their promotion of professional wrestling has made them wealthy. The McMahons have been listed in past issues of Forbes magazine as among the nation’s richest.
Source: txbankruptcyblog.com
Oregon layoffs and bankruptcies
The owner of Embassy Suites hotel in Tigard adjacent to Washington Square, and seven affiliated companies has voluntarily filed for bankruptcy, seeking Chapter 11 protection from creditors while it refinances. This group of Embassy Suites is owned by Windsor Capital Group of Santa Monica, Calif., which is owned by Patrick Nesbitt. The filing states the company has assets of $10 million to $50 million, and liabilities of more than $100 million.
Source: oregonbusinessreport.com
Bankruptcy : Bankruptcy Advice call the Bankruptcy Centre Australia
Declaring bankruptcy is not a crime, it is a right afforded to anyone who resides in Australia. If you are experiencing severe debt stress by trying to avoid bankruptcy, you may only make matters worse. If you have a mortgage on your home , we can show you that even though you are bankrupt, you may keep it. ( Ask us how.)
Source: com.au
American’s Bankruptcy Filing Shouldn’t Impact You, For Now
Throughout the Chapter 11 process, American and American Eagle will continue to fly normal schedules; honor tickets and reservations; make exchanges and refunds as usual; maintain AAdvantage frequent flyer and other customer service programs; and ensure all AAdvantage miles and elites status earned by members remain intact, according to AMR.
Source: budgettravel.com
Court Grants Motion to Dismiss for Lack of Subject Matter Jurisdiction and Premature Request for Declaratory Relief : Delaware Business Bankruptcy Report
Noting that the Court’s jurisdictional reach post-confirmation is limited to claims having “a close nexus to the bankruptcy plan or proceeding,” such as one which “affects the interpretation, implementation, consummation, execution, or administration of a confirmed plan or incorporated litigation trust agreement,” the Court determined that it lacked jurisdiction over the first two claims. The Trust argued that: (i) the “close nexus” test was satisfied by virtue of the fact that the creditors would receive more money from the $55 million reserve, (ii) the Defendants’ raising the “insured v. insured” exclusion required the Court to interpret the Confirmation Order, and (iii) the Plan expressly provided that the Court would retain jurisdiction “to determine any and all motions, adversary proceedings, applications, and contested or litigated matters that may be pending on the Effective Date.” The Court rejected the Trust’s arguments, holding that (i) the “mere possibility of a gain or loss of trust assets” is insufficient to confer post-confirmation bankruptcy jurisdiction over “related” matters, particularly with respect to the Debtors’ case, in which the Plan provided for payment in full (with interest) to most unsecured creditors through a $7 billion distribution, which would not be substantially affected by the $55 million trust account, (ii) an interpretation such as that potentially required by the Defendants’ asserted “insured v. insured” defense does not rise to the level of “interpretation” required to confer post-confirmation jurisdiction because “the interpretation is not essential to the integrity of the Plan and its implementation” and because the interpretation could be accomplished by other courts of competent jurisdiction, and (iii) the Plan’s failure to specifically describe the cause of action at issue, in conjunction with the lack of required “close nexus,” rendered the general jurisdictional provision in the Plan ineffective. Second, the Court held that the Trust could not (at least at this time) assert a claim for subrogation because such claim existed only to the extent of actual payment under the policies, and the Defendants refused to pay under the policies and had yet to file a proof of claim, much less an “allowed” claim subject to equitable subordination under 11 U.S.C. Section 510(c).
Source: morrisjames.com
Morris Brown College Voluntary Chapter 11 Bankruptcy Petition
Morris Brown College filed for chapter 11 bankruptcy protection on Saturday in Atlanta. For more details on the bankruptcy filing, please read our post on the topic: http://chapter11cases.com/atlantas-morris-brown-college-founded-in-1881-filed-for-chapter-11-bankruptcy-protection-on-saturday/
Source: chapter11cases.com
NJ Department of the Treasury Rolls Out Nexus Initiative to Encourage Voluntary Disclosure from Firms Deriving Income from Assets in the State / Intangible Asset Nexus Initiative / Tax Law Updates / Tax Legal Updates
Recognizing that there are companies that have nexus with New Jersey as a result of having derived income from the use of intangible assets in this State that have not fulfilled their tax filing responsibilities the Division of Taxation will be offering a limited voluntary disclosure initiative.
Source: lawupdates.com
Call Premiums in Bankruptcy
Three years after Solutia, in In re Chemtura Corporation, the same bankruptcy court suggested a two part analysis to determine whether “make-whole” provisions entitled bondholders to damages. The court’s analysis was in the context of the reasonableness of a settlement in connection with confirmation of the debtor’s plan of reorganization. The significance of Chemtura’s suggested analysis is that the bankruptcy court first looked to state law to determine whether, as a matter of contractual interpretation, there was a breach of the call premium. In doing so, it interpreted whether the maturity date could be deemed to have changed as a result of the bankruptcy filing, by acceleration or otherwise. If state law triggered a bondholder entitlement, the court would determine the amount of the appropriate damages for a violation of the call premium, including whether it should possibly be reduced or even disallowed as a penalty. Because the indenture had separate definitions for ”Maturity Date,” “Stated Maturity,” and “Maturity,” the bankruptcy court found the bondholders had a strong argument that acceleration in bankruptcy did not change the contractual definition of “Maturity Date,” and thus the repayment of the notes in bankruptcy was a prepayment prior to such date.
Source: crowell.com
A123: "no assurance" we won't go bankrupt *UPDATE
WALTHAM, Mass., October 16, 2012 – A123 Systems, Inc. (Nasdaq: AONE) (“A123″ or “the Company”), a developer and manufacturer of advanced Nanophosphate® lithium iron phosphate batteries and systems, today announced that it has entered into an asset purchase agreement with Johnson Controls, Inc. (NYSE: JCI) in a transaction valued at $125 million. Under the terms of the agreement, Johnson Controls plans to acquire A123′s automotive business assets, including all of its automotive technology, products and customer contracts; its facilities in Livonia and Romulus, Michigan; its cathode powder manufacturing facilities in China, and A123′s equity interest in Shanghai Advanced Traction Battery Systems Co., A123′s joint venture with Shanghai Automotive. The asset purchase agreement also includes provisions through which Johnson Controls intends to license back to A123 certain technology for its grid, commercial and government businesses. A123 also continues to engage in active discussions regarding strategic alternatives for its grid, commercial, government and other operations, and has received several indications of interest for these businesses. To facilitate the transaction process, A123 and all of its U.S. subsidiaries today filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware. The Company’s subsidiaries located outside the U.S. were not included in the filings. This action is expected to allow the Company to provide for an orderly sale of the automotive business assets and all other assets and business units under Section 363 of the Bankruptcy Code and enable the Company to maximize the value of its assets for its stakeholders in a controlled, court- supervised environment. In conjunction with the proposed transaction, A123 has received a commitment from Johnson Controls for $72.5 million in “debtor in possession” financing to support the Company’s continued operations during the pendency of the sale process. The Company has filed a number of customary motions seeking court authorization to continue to support its business operations during the transaction process, including the continued payment of employee wages, salaries and health benefits without interruption. “We believe the asset purchase agreement with Johnson Controls, coupled with a Chapter 11 filing, is in the best interests of A123 and its stakeholders at this time,” said David Vieau, Chief Executive Officer of A123. “We determined not to move forward with the previously announced Wanxiang agreement as a result of unanticipated and significant challenges to its completion. Since disclosing the Wanxiang agreement, we have simultaneously been evaluating contingencies, and we are pleased that Johnson Controls recognizes the inherent value of our automotive technology and automotive business assets. We are also pleased that we have received indications of interest that recognize the value of our grid and commercial businesses. We are encouraged by the significant interest we have received, as multiple parties have submitted proposals for these businesses. As we move through this transaction process, we expect to continue operating and working with customers and suppliers.” “Our interest in A123 Systems is consistent with our long-term growth strategies and overall commitment to the development of the advanced battery industry,” said Alex Molinaroli, president, Johnson Controls Power Solutions. “Requirements for more energy efficient vehicles continue to increase, which is driving automotive manufacturers to pursue new technologies across a broad spectrum of powertrains and associated energy storage solutions. We believe that A123′s automotive capabilities are a good complement to our existing portfolio and will further advance Johnson Controls’ position as a market leader in this industry.” The transaction with Johnson Controls is being completed pursuant to Section 363 of the U.S. Bankruptcy Code and is subject to, among other things, higher or otherwise better offers to purchase any or substantially all assets of the Company, Court approval, antitrust approval, any other such approvals as may be required by law, and other customary conditions. Given these conditions, there can be no assurance that the proposed transaction will be consummated. Additional information is available on A123′s website at www.a123systems.com or by calling A123′s Restructuring Hotline, toll-free in the U.S., at 1-800-224-7654. For calls originating outside the U.S., please dial +1 973-509-3190. Court documents and additional information can be found at a dedicated website administrated by the Company’s Claims Agent, Logan & Company: www.loganandco.com. Latham & Watkins LLP and Richards, Layton & Finger are serving as legal advisors, Lazard is serving as financial advisor, and Alvarez & Marsal is serving as restructuring advisor to A123. About A123 Systems A123 Systems, Inc. (Nasdaq: AONE) is a leading developer and manufacturer of advanced lithium-ion batteries and energy storage systems for transportation, electric grid and commercial applications. The company’s proprietary Nanophosphate® lithium iron phosphate technology is built on novel nanoscale materials initially developed at the Massachusetts Institute of Technology and is designed to deliver high power and energy density, increased safety and extended life. A123 leverages breakthrough technology, high-quality manufacturing and expert systems integration capabilities to deliver innovative solutions that enable customers to bring next-generation products to market. For additional information please visit www.a123systems.com. Safe Harbor Disclosure This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended that are subject to risks, uncertainties and other important factors, including statements with respect to the expected benefits of A123′s proposed asset sale and financing transactions with Johnson Controls, the potential of the transactions and Chapter 11 filing to create value for A123 and its stakeholders, the satisfaction of conditions to closing of the transactions, the anticipated growth of the market for energy efficient vehicles, the expectation that a Chapter 11 filing will enable A123 to sell its automotive and other assets in an orderly manner and maximize value to its stakeholders, and the necessity of bankruptcy court and other approvals, including antitrust and other regulatory approvals, to conduct and complete the transactions and other potential asset sales. Among the factors that could cause actual results to differ materially from those indicated by such forward-looking statements are: failure to obtain required bankruptcy court and other approvals, failure to satisfy the conditions to closing of the transactions, delays in the development of A123′s products, adverse economic conditions in general and adverse economic conditions specifically affecting the markets in which A123 and Johnson Controls operate, and other risks detailed in A123 Systems’ quarterly report on Form 10-Q for the quarter ended June 30, 2012 and other publicly available filings with the Securities and Exchange Commission. All forward-looking statements reflect A123′s expectations only as of the date of this release and should not be relied upon as reflecting A123′s views, expectations or beliefs at any date subsequent to the date of this release.
Source: autoblog.com