New York data services provider files for Chapter 11

Broadview Networks, Inc., a business data provider of phone and Internet services, has sought to reorganize its debts through a Chapter 11 bankruptcy filing while obtaining protection from creditors. The company announced in July that it had reached an agreement with some of its creditors to commit to a financial restructuring plan. This plan would give the creditors equity in the company as well as new five-year payment notes in exchange for wiping out $300 million in senior secured notes scheduled to mature on Sept. 1, 2012. The company’s current largest equity holders are MCG Capital with 51 percent and Baker Communications Fund with 15 percent. Several other investors supported the restructuring agreement. Broadview Networks listed about $500 million in total debt and assets in its bankruptcy documents. The business’s parent company, Broadview Network Holdings Inc., reported $5.3 million in net loss for the first quarter of 2012, with assets of about $260 million and liabilities exceeding $370 million. The company’s revenue fell from about $407 million in 2010 to $378 million in 2011. The company is getting itself back on track, however, with about 36,000 current U.S customers and a sound new business model. In fact, many companies that experience extreme… Continue reading

Foreclosure practices under closer scrutiny

Most states provide bankruptcy exemptionsfor equity built in a family home, and these exemptions can be very useful when battling a foreclosure. However, recent scrutiny into foreclosure practices has revealed that many homeowners not only have no idea of their rights regarding bankruptcy exemptions or foreclosure, but they often do not even know who is holding their mortgages. Even when a debtor understands who holds the paper on his or her home, it is unlikely that there is much use for that information. Recent examination of several bank’s foreclosure practices reveal that previous holders of promissory notes are often initiating foreclosure when they do not technically have the right to do so. If you are facing foreclosure or bankruptcy, it may be helpful to seek experienced legal advice. There are ways to stop foreclosure proceedings and salvage your home’s equity through the protections offered by the bankruptcy code; however, it may be difficult invoke these protections without sound legal advice and help. Filing bankruptcy is a last resort for many people. However, for many people it ends up being a good way to both save their home and obtain some debt relief. It may also help you hold the creditors off… Continue reading

Kodak hopes that job cuts will end bankruptcy

Under a Chapter 11 bankruptcy plan, Eastman Kodak is required to make some big changes in their corporate structure in order to minimize costs. Kodak announced that one way it plans to cut these expenses is by cutting over 1,000 jobs by the end of 2012. The company has already laid off 2,700 employees worldwide since the beginning of the year, but this was not enough to meet the demands of the deficits imposed by the company’s lack of assets. The company also plans to cut production of some lines of products that are not selling well in competition with imported items, such as digital cameras, digital picture frames and pocket video cameras. The company has requested the help of a well-known advisory group to determine important areas of focus as it concentrates on restructuring. As some New York residents know, for a large company, restructuring under a Chapter 11 bankruptcy case can be very time-consuming and difficult. However, small businesses can also struggle with some of the same basic problems inherent in a large-company bankruptcy: allocation of assets, number of employees to be retained, and other financial questions. No matter what the size of a business, it is important for the… Continue reading

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