bankruptcy

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Borders (BGP)Reports surfaced Thursday that Borders (BGP) started negotiating with banks for financing to help keep the bookstore chain liquid during bankruptcy proceedings. Later in the evening, GE Capital made a $550 million financing commitment to the embattled company.

This financing should allow Borders the financial flexibility and level of liquidity to advance its restructuring plan. The plan includes closing stores, cutting costs, expanding its rewards program, and increasing non-book offerings — all with the goal of improving cash flow and profits. Borders did note that it will explore alternative possibilities, such as restructuring its debt under court supervision.

Continue reading GE Capital Commits $550 Million to Borders

GE Capital Commits $550 Million to Borders originally appeared on BloggingStocks on Fri, 28 Jan 2011 09:30:00 EST. Please see our terms for use of feeds.

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Personal bankruptcy filings have been climbing steadily since 2007 when the U.S. tumbled into a deep recession. With unemployment near 10%, bankruptcy filings are on the rise.

For the fiscal year ending Sept. 30, more that 1.5 million non-business bankruptcy filings were processed, according to data released by the Administrative Office of the U.S. Courts and reported in CNNMoney. That’s a 14% increase from 2009.

Continue reading Bankruptcy Filings Surge 14% in 2010

Bankruptcy Filings Surge 14% in 2010 originally appeared on BloggingStocks on Tue, 09 Nov 2010 10:00:00 EST. Please see our terms for use of feeds.

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blockbuster bankruptcyEarly Thursday morning, Blockbuster (BLOKA) announced that it filed for voluntary Chapter 11 bankruptcy petitions. The move comes after an agreement with bondholders to recapitalize the movie and game rental chain.

According to the company, the filing in the U.S. Bankruptcy Court of the Southern District of New York applies to the company and its domestic subsidiaries, but not to the non-U.S. operations or the group’s franchisees. Reportedly, the group has agreed on a deal with bondholders to swap secured notes for equity in a reorganized Blockbuster.

Continue reading Blockbuster Files for Chapter 11 Bankruptcy Protection

Blockbuster Files for Chapter 11 Bankruptcy Protection originally appeared on BloggingStocks on Thu, 23 Sep 2010 08:30:00 EST. Please see our terms for use of feeds.

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BlockbusterNetflixUnited StatesChapter 11 Title 11 United States CodeUnited States District Court for the Southern District of New York

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Comfort Zone Investing: When a Company Goes Bankrupt There are rumors that BP (BP) may declare bankruptcy. That way it can avoid some of the liabilities from the giant oil spill in the Gulf of Mexico. No one knows what BP will do, and it seems to be making a concerted effort to do the right thing, especially since the president of the United States has taken a personal interest. We can only hope for the best.

As investors, however, it’s important to know how a bankruptcy works and how it affects stockholders of a company that goes through it. In a nutshell, you get screwed. Here’s how.

The first thing to understand is that a company is a legal entity unto itself. While there is management to run it, the company, in the eyes of the law, is almost like a person, responsible for its actions. So think of it as a breathing, living being.

Continue reading Comfort Zone Investing: When a Company Goes Bankrupt

Comfort Zone Investing: When a Company Goes Bankrupt originally appeared on BloggingStocks on Sat, 19 Jun 2010 10:30:00 EST. Please see our terms for use of feeds.

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United StatesGulf of MexicoBankruptcyLawOil spill