Category Archives: Bankruptcy – Business

The Sader Law Firm can help businesses file for Chapter 7 and 11 bankruptcy to restructure and erase debts.

When Management is the Reason Your Company is Struggling Financially

Eddie Lampert’s 4.8-billion-dollar Sears buyout announcement earlier this month comes amid the once-iconic corporation’s Chapter 11 bankruptcy filing. The bankruptcy, filed in October, allows for financial restructuring. Lampert personally stands to lose 2.4 billion if it fails. While the buzz around this latest headline is focused on Lampert’s intentions to possibly bleed the company of more money through the deal’s fine print, the fact remains: even in bankruptcy, Lampert is still in charge of a business he is widely accused of running into the ground. A Business Insider article reveals the intimate details of a small, private meeting between Lampert and a few mid-level employees, providing insight into a deeper level of dysfunction within the once-iconic company. The article describes employees’ fearful preparations moments before Lampert appeared on a screen at Sears Illinois headquarters. He joined the meeting from his Florida mansion. The employees were concerned about the words the…
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Bankruptcy Success Stories: American Airlines

We have written extensively about how struggling businesses can benefit by filing for Chapter 11 bankruptcy. Over the years, numerous companies survived financial disasters by seeking Chapter 11 protections. Some of these companies are household names, such as American Airlines. American Airlines is the largest commercial airliner in the United States. Despite its history of success, the company experienced severe financial problems less than a decade ago. American Airlines was beset by numerous financial setbacks before its parent company, the AMR Corporation, filed for Chapter 11 bankruptcy in 2011. For instance, the company reported steep losses and major problems negotiating labor contracts with pilot unions. The company was also facing excessive debts and rising fuel prices. Many of these problems had persisted for years before the AMR Corporation sought protections under Chapter 11. In fact, the company narrowly avoided filing for bankruptcy in 2003. In 2011, facing a serious crisis,…
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Four Ways Small Businesses Benefit from Chapter 11 Bankruptcy

Chapter 11 bankruptcy is often portrayed as an option that is limited to billion-dollar corporations. However, your local Kansas City business—no matter its size— can enjoy the same protections Chapter 11 provides for giant companies. Here are four ways filing for Chapter 11 can help a business get back on track. 1.     Stay Open Many business owners think of bankruptcy as synonymous with closing. The opposite is true. If your business is on the verge of closing due to creditor actions or foreclosure, a Chapter 11 bankruptcy filing is the first step you can take to stop the actions creditors take against the business. Instead of marking failure, this Chapter of bankruptcy is specifically designed as a second chance for businesses, because it allows businesses to stay open while restructuring their debts. 2.     Reclaim Control of the Quality of Products and Services With financial affairs restructured, the business has more…
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