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How Bankruptcy Helped These Business Owners

How &? BANKRUPTCY Helped These BUSINESS OWNERS Once a company files for bankruptcy protection, it can re-emerge and recover. Major businesses, like Delta Airlines and General Motors, have filed and recovery was achievable. Based on data from, bankruptcy filings are down since 2008. (1 There were 065 filings in 2010 and 211 filings in 2009. [1] Just under 90 public companies filed for bankruptcy in 2011. [1] BIG COMPANIES filing bankruptcy in 2011 included: [1] - MF Global - AMR Corp. – parent company of American Airlines Dynegy Holdings O. What Does BANKRUPTCY MEAN for Businesses? FILING BANKRUPTCY allows a business that cannot pay creditors to START OVER BY: [2] REPAYMENT PLAN UNITED STATES - using assets to pay debts - formulating a repayment plan COURTS FEDERAL BANKRUPTCY CODE Bankruptcy cases are filed under the FEDERAL BANKRUPTCY CODE: [2] Chapter 13 Chapler 7 - Chapter 7 - Chapter 11 - Chapter 13 Chapter 11 Da 1s BANKRUPTCY the END? Recently, the Eastman Kodak Company shocked the business world by declaring bankruptcy. [3] According to the Investor Place, bankruptcy is not the end of the line for Kodak. [3] Many big businesses have filed, but remained in business after filing. [3] . What Big Businesses Have SURVIVED BANKRUPTCY? A Most airlines have filed for bankruptcy: [3] Continental merged with United to form United Continental Holdings in 2010. (3] United filed in2002. Continental Airlines filed in 1983 and 1990. (3] but rebounded in 2006. (3] Continental United Della fAirlines filed in 2005, before returning in 2007. [3] US Airways filed in 2002, returned, and filed again in 2004. (3] Other big names that have filed for bankruptcy: - General Motors suffered losses in 2009, then emerged in 2010 after a government bailout. 13] <-- - Uno Chicago Grill joined Sbarro by filing in 2011. [3] Sbarro -- found in malls and airport food courts -- was founded in 1956 and sold to an equity firm in 2007, before filing in 2011. [3] 60 stores Friendly's filed in 2011 after closing 60 stores. [3] CLOSED - Rugged outerwear retailer Eddie Bauer filed in 2003, then again in 2009. [3] <- DELTA GM EDDIE BAUER General Motors Eddie Ваиеr Delta Airlines Rugged outerwear retailer Eddie Bauer Delta Airlines filed for bankruptcy in 2005. (3] General Motors (GM) filed for bankruptcy in 2009. [3] filed in 2003, then again in 2009. [3] 2009 2005 Вaлkruptr Bankruptcy 2003 (2009 Returned in 2010 after Returned to operation in 2007. (4] government bailout. [3] According to CNN Money, General Motors FILED ÅFTER DEBTS SALES DROP Per a Delta Airlines press release in April 2007, Delta spent 19 MONTHS restructuring its business by: [4] MONTHS Eddie Bauer was "overwhelmed by debl payments and a steep drop in customer spending," per the Puget Sound Business Journal. [8] → losses [6] -→ market share declines (6] nstituting a comprehensive transformalion plan" with "$3 BILLION in annual financial improvements." [4] -> receiving $19.4 billion from government wasn't enough to save GM from filing (6) Having four "consecutive quaters of operating profits, with $155 MILLION" in the first quarter of 2007. [4] like major retailers – Linens 'n' Things and Circuit City – Eddie Bauer was a VICTIM of declining sales. [8] U.S. Bankruplcy Judge Robert Gerber said that GM: S155 MILLION > Having the LOWEST "mainline non-fuel CAŠM" of all carriers in 2006. [4] The Street reported that Eddie Bauer "entered a pre-packaged bankruptcy could access $15 BILLION in government funds. [6] DECREASING its revenue gap with the rest of 95% the industry to 95%. [4] CIN Money reported that GM would be joinily owned: and WAS SOLD lo Golden Gate Capital. [9] The U.S. BANKRUPTCY COURT of the Southern District of New York allowed Delta Airlines to leave bankruptcy on April 25, 2007. [4] with U.S. taxpayers holding a ---- 60% stake in GM, [6] Golden Gate Capital paid $286 MILLION for Eddie Вашег. [9] L and unions, the company's creditors, and Canadian According to The Street, Golden Gate Capilal has not revealed its next In 2011, Dellta reported a net income of $1.2 BILLION. [5] provincial governments holding the remainder of GM. [6] move, but it will likely "exit investment." [9] EXIT In 2012 GM posted their lop annual profit since going bankrupi. [71 Eddie Bauer announced the launch of ils SPORTS SHOP COLLECTION. for the fAmerican sportsman and sportswoman, in 2012. [10] Delta's adjusted debt was $12.9 billion, down by $4.1 billion from 2009. [5] PROFE DEBT GM's income for 2011 was $7.6 BILLION, up from $4.6 BILLION in 2010. (71 SOURCES: [1] [2] [3] [4] [5] nd-1.2-Billion-Annual-Profit.aspx [6] 7] [8] [9) [10] ack.html

How Bankruptcy Helped These Business Owners

shared by Rsammy on May 01
Once a company files for bankruptcy protection, it can re-emerge and recover. Major businesses, like Delta Airlines and General Motors, have filed and recovery was achievable.


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