A large power company called Energy Future Holdings has filed for bankruptcy. The business bankruptcy filing comes seven years after the energy company went through a leveraged buyout, which left it laden with debt. The buyout happened before the natural gas boom in the United States resulted in a large-scale reduction of electricity prices. These shifting economic forces affected business operations across New Jersey and the rest of the nation.
Business bankruptcy proceedings can be utilized by New Jersey companies to get back on sound financial footing following difficult financial times. In fact, one well-known corporation, Brookstone, has announced that it is trying to do just that after filing for Chapter 11. The company, which most New Jersey shoppers know after visiting malls and airports throughout the nation, is currently trying to sell itself to Spencer Spirit Holdings for $147 million.
The shipping company, Genco, plans to file for bankruptcy by the end of March. The company operates ships that transport grain, coal, iron ore and soybeans. The Chapter 11 filing will be completed in order to protect the company from a $50 million debt obligation that is coming due. Companies in New Jersey and other parts of the country often utilize bankruptcy in this fashion to protect themselves from an impending debt payment that they cannot afford to pay.
When a New Jersey corporation enters business bankruptcy proceedings, it does not mean the end of the world for the company. In fact, in many cases, business bankruptcy can represent an extremely positive new beginning. Quiznos, the world-famous fast food sandwich chain, for example, recently initiated the Chapter 11 process in the hopes of reducing its debt and coming out stronger in the end.
A pizza restaurant chain, which many New Jersey residents know from area malls, has recently entered Chapter 11 proceedings. The Chapter 11 commercial bankruptcy represents the second time that the pizza restaurant has initiated the bankruptcy process in the last three years. According to one restaurant consultant, the biggest problem faced by the chain is that it is operating under an out-of-date business model.
Readers in New Jersey may be interested to learn about the bankruptcy of a local man. The man is the owner of an oil company, Norton Oil Company, which recently had some difficulty making the oil deliveries that it contracted to make to people in our state. The Chapter 7 bankruptcy filing came in part due to the personal guarantees made by the owner of the oil company for his business. This filing may help him to avoid a business bankruptcy for his personally owned oil company.
Many people in New Jersey love to spend warm summer days playing tennis. For years, the equipment of choice for these people was manufactured by a local company named, Prince. That was until the mid-2000's when the company began to fall from favor in part due to multiple ownership changes. That led to the commercial bankruptcy of the business last year.
Business owners in New Jersey may be interested to learn about a case involving the closure of a non-profit organization in another state. The non-profit was a corporate entity that had an endowment attached t it. Recently, the corporation filed for a business bankruptcy after its patient load dropped dramatically.
Readers in New Jersey may be surprised to learn that one company is responsible for as much as 70 percent of the school supplies sold to school districts in our state and across the nation. The company, School Specialty, supplies not only traditional papers and crayons, but also has divisions for furniture and other school district needs. Now, however, the company is facing a commercial bankruptcy.
Super Storm Sandy hit many areas of New Jersey hard as it passed through our state. Many people lost property, including personal homes and businesses. For some in our state and throughout the nation, these losses ended with filing for personal or commercial bankruptcy in order to obtain help recovering from the damage caused by the storm.