New York news upstart declares bankruptcy to thwart lawsuit

An online media company that started in 2010 with major support from veteran newspaper publisher Carll Tucker and his wife, the well-known financial reporter Jane Bryant Quinn, recently filed documents seeking Chapter 11 bankruptcy. The company, Main Street Connect, is headquartered in Armonk, New York, and operates websites focusing on local news in approximately 40 cities throughout Connecticut and New York under the name “The Daily Voice.” Documents from the company’s Chapter 11 bankruptcy filing reveal that Main Street Connect has twice as much debt as it does assets, with just over $850,000 in debts and only $400,000 in reported assets. The company was motivated to seek bankruptcy protection to shield itself from a lawsuit filed by former employees who are accusing Main Street Connect of violating the Fair Labor Standards Act by routinely requiring employees to work overtime without compensation. Before the bankruptcy filing, Main Street Connect had already taken aggressive steps to decrease its expenses including laying off half of its employees, closing and consolidating newsrooms, and completely ending all operations in Massachusetts. Despite its challenges, Main Street Connect saw its revenues increase 50 percent in 2012 over the previous year. Carll Tucker indicated that the company was… Continue reading

Total number of bankruptcy filings have decreased since last year

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

Upstate New York company declares Chapter 11 bankruptcy

Due in part to a weakened economy and loss of market share to overseas competitors, Endicott Interconnect Technologies filed for Chapter 11 bankruptcy protection. Endicott Interconnect, which is headquartered in Endicott, N.Y., is a microelectronics company that manufactures printed circuit boards and advanced flip chip and wire bond semiconductor packages. Its clients include the United States Department of Defense, Cisco Systems Inc., IBM and Northrop Grumman Corp. In an attempt to solve its liquidity problems, Endicott Interconnect reduced its operating expenses, refinanced debt and laid off half of its workforce. The company eventually filed forChapter 11 protection when it became apparent that by Sept. 30, the company would run out of money and be forced to shut down operations. Endicott Interconnect claims debt in excess of $85 million and assets of less than $50 million. Endicott Interconnect is also being sued for $11.5 million in damages arising out of a breach of contract claim. In its bankruptcy filing, Endicott Interconnect cites overseas competition and reduced federal spending as the reason for its financial problems. In fact, despite a 28 percent increase in production of printed circuit boards worldwide, the number of North American manufacturers of these circuit boards fell 40… Continue reading

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