Tag Archives: BusinessBankruptcy

These Three Financial Mistakes Could Ruin Your Business

Being an entrepreneur is more difficult than many people realize. It involves hard work, an innovative streak, and many sleepless nights. Simple mistakes can overtake your best efforts and put your business in financial jeopardy. Here are a few of those mistakes and some solutions an experienced bankruptcy attorney may provide: Mismanaging Start-up Loans/ Financing Securing capital is the first step in creating a startup. Whether that capital comes from family members, friends or strangers, producing a return is expected. Not delivering on those returns could land your business in trouble with its investors and securities laws. A business workout could help avoid this conflict. This out-of-court solution may allow businesses to negotiate new terms for an investment.   Failing to Make Equity Arrangements and Vesting Schedules Vesting schedules guide how business founders earn shares over time, and equity arrangements formalize the stakes each founder has in a business. Without…
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What Happens If a Business Partner Declares Bankruptcy?

Running a business is full of challenges. If you run a business – which is probably the case since you’re reading this – it’s very likely that you’re familiar with just how challenging it can be. Things can be going great – operations are running smoothly, you’re reaching all of your financial goals – and you can still run into problems outside the realm of your control. For example, you could be going through your business’ mail one day and come across a bankruptcy notice from one of your main suppliers. What does this mean for your business? Will you still be able to do business with this supplier? Are there steps you need to take to avoid financial loss? When dealing with a business partner’s bankruptcy, several factors determine your available options. If they are filing for Chapter 11 bankruptcy, then their business remains in control of its possessions…
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Why Gibson’s Bankruptcy Will Save the Gibson Brand

Gibson guitars are associated with some of the most famous musicians in history. Eric Clapton, Elvis Presley, David Bowie, Slash, Pete Townshend, Jimmy Page and Bob Marley all used Gibson guitars at some point during their careers. The famous Gibson Les Paul can sell for prices in the thousands of dollars. Despite decades of success, Gibson Brands Inc. recently filed for Chapter 11 bankruptcy. The bankruptcy provides a lifeline for Gibson Brands, Inc by keeping the company in business and by allowing it to restructure its consumer electronics department, Gibson Innovations. The department is taking blame for Gibson’s financial problems. Gibson Innovations sold products such as headphones, turntables and speakers. Under the Chapter 11 plan, Gibson will wind down Gibson Innovations. Chapter 11 Bankruptcy Does Not Mean a Company Is Going out of Business There are common misconceptions about bankruptcy. For example, some people assume that filing for bankruptcy means…
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