New York residents may be interested to hear that the total number of bankruptcy filings in May have decreased by 12 percent from last year. Commercial Chapter 11filings decreased by 25 percent, from 716 filings in May 2012 to 537 filings in May 2013. Total filings have also decreased four percent from April 2013, totaling 96,430 filings versus 100,732 from the previous month. Chapter 11 filings decreased from 704 filings in April 2013 to 537 filings in May 2013, a decline of eight percent. The average total bankruptcy filing dates have also declined from 3,534 filings in May 2012 to 3,111 filings in May 2013, a 12 percent decrease. New York is not listed among the top five states with the highest per capita bankruptcy filing rates. The Executive Director of ABI, a company that helps to provide up-to-date bankruptcy filing data, believes that the numbers will only continue to decline. Lower interest rates, decreased consumer spending and tighter lending standards have allowed both consumers and businesses to keep their finances in check. Many small business owners may be facing pressures from increasing debt. They have the option to file Chapter 11 bankruptcy, which protects them from creditors. An experienced… Continue reading
New York residents who invest in AgFeed Industries may want to take note of the business filing for bankruptcy. The hog producer, which is based in China but has interests in the United States, has filed forChapter 11 bankruptcy. Chapter 11 enables businesses to continue operations while reorganizing and restructuring their debt. Based on the filing, AgFeed has $127 million in assets, but they have $27 million in debt. One of the issues that led to the company filing for bankruptcy was a contractual dispute with a major hog buyer, Hormel. According to Hormel, AgFeed inflated the price of hogs by overstating production costs. AgFeed countered that Hormel was sending them unhealthy young hogs. In spite of the fact that an arbitrator sided with both parties, Hormel was ultimately awarded $8 million, which was subtracted from what Hormel owed AgFeed. However, disputes with Hormel were only part of the company’s financial difficulties. It was discovered in 2011, thanks to an internal investigation initiated by the AgFeed’s board of directors, that there were bookkeeping irregularities associated with the company’s Chinese operations. The investigation showed that the company was over-reporting profits by undermining the amount of bad debt owed to the company… Continue reading
The VFX company Gravity Post filed a petition for bankruptcy protection in the Bankruptcy Court of the Southern District of New York. The Chapter 11 filing claims the business is sound and has, over the last several months, secured potentially profitable contracts from large clients. There are no plans to lay off any employees, and the company expects to continue with business as usual. It appears that the primary reason for the bankruptcy filing is to protect the company from being evicted from its Madison Avenue offices. The landlord claims to be owed $464,381 and legal fees. Gravity Post claims not to have the money at the moment but that it could pay it off over time. The company has worked on movies such as “Crazy Stupid Love” and the television shows “Sex and the City” and “The Sopranos.” Documents filed with the bankruptcy court show Gravity Post has between $100,000 and $50,000 in assets that have a liquidation value of $258,000. Liabilities are listed as $1 million to $10 million. Schedules and statements are due on or before Oct. 1. By Jan. 1, 2014, Gravity Post must have a Chapter 11 plan ready for the court’s review. Chapter 11… Continue reading
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