There will be one less charter flight company servicing the East Coast. Fleet Aviation LLC, which operates out of Westchester County Airport in New York and serves vacation destinations like Martha’s Vineyard, Nantucket and the Hamptons, has filed for Chapter 7bankruptcy. As a result, the company will cease to exist and its assets will be liquidated to pay off debt. Fleet Aviation has had its share of troubles recently. In August, the U.S. Attorney’s Office in Manhattan sued the carrier for violating federal aviation regulations, alleging it used an unqualified pilot on numerous flights in 2008 and 2009. That lawsuit was settled when the company agreed to pay a fine of $40,000. Earlier in the year, the company’s CEO resigned. In its bankruptcy filing in U.S. Bankruptcy Court for the Southern District of New York, the company listed up to $50,000 in assets and up to $500,000 in debt. Chapter 7 for businesses is a measure used when a business has overwhelming debt and can no longer operate profitably. Once Chapter 7 bankruptcy is filed, all collection actions stop. The court then appoints a trustee to sell the company’s assets and pay off debt to creditors and investors based on… Continue reading
Hostess Brands, the maker of such iconic brands as Twinkies and Ding Dongs, has asked a federal bankruptcy judge for permission to cease its operations and liquidate the company’s assets underChapter 7 bankruptcy. While this may not mean the end of the company’s beloved snack cakes — the brands likely will be sold at auction — it will mean the end of employment for nearly 18,000 Hostess employees. Hostess has had financial challenges for some time. The company first filed for bankruptcy protection in 2004 and then again in January 2012. Those earlier bankruptcy proceedings sought to reorganize the company’s debt under the initial filings. The company’s most recent filing seeks asset liquidation under Chapter 7. It comes after a failed effort to gain concessions from union workers. When union negotiations broke down, Hostess unilaterally imposed cuts in wages and benefits. That action resulted in a strike at 24 of the company’s 33 plants, and striking workers refused to return to work by a Nov. 15 deadline set by the company. Hostess officials now say the company does not have the financial resources to continue operations in the face of the strike. Chapter 7 for businesses is a measure taken… Continue reading
For the first time in history, student loan delinquencies exceed credit card delinquencies, the Federal Reserve Bank of New York has reported. While the number of consumers falling behind in their credit card payments has decreased four years in a row, recent figures indicate that more than 11 percent of the nation’s student loans have not been paid in over 90 days. With $956 billion owed in student loans nationally, this is a problem of huge proportions. And it may be worse than it looks; when student loans in grace periods, deferment or forbearance are factored in, the real delinquency rate may exceed 20 percent. There are a number of reasons behind the exploding student loan debt. While banks and federal legislation have made it more difficult for high-risk borrowers to obtain credit cards, student loans remain easy to come by and are given to people who are least likely to pay back their debt. Defaults always have been high among college drop-outs, but now, even graduates are having difficulty paying back their student loans given the weak job market. Also, it is nearly impossible to discharge student loan debt in Chapter 7bankruptcy. There are options for someone with overwhelming… Continue reading
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