Cloud storage enterprise files for bankruptcy

Like most New York businesses, operating a cloud storage enterprise is expensive. That reality, as well as frequent changes in leadership, contributed to Nirvanix’s recentChapter 11 bankruptcy filing. Initially, the company set a Sept. 30 deadline to remove all data stored in the cloud. However, they have since extended the deadline to Oct. 15. In addition, Nirvanix provided higher speeds of connectivity to help consumers retrieve their data. Nirvanix’s bankruptcy filing allowed the company to continue providing services so that the monumental data transfer could run more smoothly. The move came as a surprise since only a year ago, the technical company was well-funded as well as on the cutting-edge of new cloud technologies. The company’s website was changed to encourage customers to seek cloud storage from four alternate providers. Chapter 11 bankruptcy allows a business to seek court protection from its creditors while its financial affairs are reorganized. While Chapter 11 is most frequently used by small businesses that wish to stay in business while reorganizing debt, the general population is most familiar with Chapter 11 because of large corportations, such as General Motors, that have used it to reorganize. Reorganizing under Chapter 11 often includes modifying the terms… Continue reading

Astros to seek bankruptcy dismissal

Besides its obvious entertainment value, Major League Baseball is a business as well, and many fans in the New York area and around the country understand that. An American League team, the Houston Astros, is preparing to file a legal motion to dismiss the bankruptcy case of Comcast SportsNet Houston that was filed by several creditors. Comcast SportsNet Houston is in a partnership with the Astros, the Houston Rockets and NBC Universal/Comcast to provide coverage of sporting events to the Houston area. The Astros are the majority stake holder in the partnership. The creditors filed the involuntary bankruptcy against the partnership in September. The creditors who filed are owed over $100 million in a combination of trade receivables and loans. The Astros believe the bankruptcy is not needed because they can provide the cash flow to the partnership to pay the creditors. At this point, only the cable network Comcast is carrying CSN Houston, and they provide service to only 40 percent of Houston area homes. The Houston mayor has negotiated with other cable companies, including DirecTV and Time Warner, to pick up the station, but those meetings have not lead to additional coverage. As the bankruptcy case proceeds, negotiation… Continue reading

Pharmaceutical company files for bankruptcy

Savient Pharmaceuticals Inc, a U.S. biotech firm located in New Jersey, filed for bankruptcy protection in a Delaware court on Oct. 14. Savient filed for bankruptcy under Chapter 11, which allows companies and individuals to propose a reorganization plan and pay off creditors over a specified period of time. Savient told the U.S. Bankruptcy Court for the District of Delaware that it had agreed to sell most of its assets to Sloan Holdings CV, a unit of US WorldMeds LLC, for roughly $55 million. Savient listed its current assets as being $74 million, less than a third of what Savient holds in liabilities. Savient says that it was under pressure from its largest creditor to liquidate the company. Savient told the U.S. Bankruptcy Court for the District of Delaware that it had agreed to sell most of its assets to Sloan Holdings CV, a unit of US WorldMeds LLC, for roughly $55 million. Savient listed its current assets as being $74 million, less than a third of what Savient holds in liabilities. Savient says that it was under pressure from its largest creditor to liquidate the company. The agreement between Savient and Sloan functions as a “stalking horse,” a bid… Continue reading

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