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Home  >  Archive by category "Business Bankruptcy"

G&R Feed and Grain Co. Files for Bankruptcy

Dozens of creditors stand to lose millions of dollars after a grain and feed company in Portsmouth, Iowa filed for bankruptcy.

The company, G&R Feed and Grain Co., filed for Chapter 7 bankruptcy in federal court earlier this month. About 60 creditors, mostly individuals from Shelby County, were listed as creditors in related court documents. At this time, debt estimates for the company are between $1 million and $10 million, while the company’s assets are estimated at $50,000.

A creditors meeting will take place next month on February 19th at 1 p.m.

If your company is facing bankruptcy, make sure that your rights and interests are protected throughout bankruptcy proceedings. Contact the experienced business bankruptcy lawyers of Hong Law, PLC, today by calling (319) 294-5853.

Bankrupt A123 Systems Inc to be auctioned off

A123 Systems Inc, a developer of lithium ion batteries used in electric cars, filed for Chapter 11 bankruptcy protection in October, after receiving more than $245 million in grant money from the U.S. Department of Energy.

Chapter 11 bankruptcy lawyer

As is common in large business bankruptcies, the company will be auctioned off to the highest bidder to raise money to repay its debts to its creditors. A123 will be auctioned next month, and one of the most interested buyers is Chinese automotive parts supplier Wanxiang.

Many are greatly opposed to the foreign company’s potential purchase of taxpayer-funded A123. Opponents of foreign participation in this auction are concerned with the prospect of technology developed using taxpayer money being acquired by a foreign nation. Other companies interested in possibly placing a bid on A123 are Japan’s NEC Corp and Germany’s Siemens AG.

Some are fearful of the potential sale to a foreign agent as a matter of national security, since A123 had various military contracts and develops technologies that are important to the nation’s infrastructure. Still others are concerned with the economic impact of domestic jobs being moving overseas.

A123’s initial Chapter 11 filing included a plan for it to be purchased by Wisconsin’s Johnson Controls for $125 million, which would keep all of the company’s assets under U.S. control. That plan will continue unless another entity makes a higher bid at next month’s auction.

The U.S. government stated that any sale of A123 Systems will be subject to its approval. The government also reserves the right to demand compensation for any company assets that were funded by the clean energy grant.

While your business’ financial difficulties may not be a matter of national security, they are still important to us. If you feel like your business is drowning in unmanageable debt, a bankruptcy attorney from Hong Law, PLC, can show you the potential benefits of filing for Chapter 11 bankruptcy. Contact us at 319-632-1400 to learn more about how we can help.

Bankrupt Iowa household cleaning product company auctioning assets

Iowa cleaning supply manufacturer Harper Brush Works Inc. has had a proposal to auction off its assets approved by a U.S. Bankruptcy Court for the Southern District of Iowa judge amid accusations that an auction will not raise more funds than an asset liquidation.

The family-owned maker of brooms, floor brushes, and other cleaning tools filed for Chapter 11 bankruptcy in May, listing its assets at $10.4 million with $10 million in liabilities.

The auction is set to open with a bid of $2.2 million for all of the Harper’s current assets. Opposing bids will be due on November 14, with the auction set to take place on the 19th.

Making the decision to auction off your business’ assets in bankruptcy is not easy. If you’re facing overwhelming business debts and are looking for relief, consulting with a business bankruptcy attorney can help you make the right decision for your circumstances.

Abound Solar bankruptcy plan nears completion

Colorado solar panel manufacturer Abound Solar is almost prepared to file its plans for bankruptcy.

The company received a $400 million loan from the federal government, but it only utilized $68 million before the government rescinded its funding. The company revealed in February that it closed its factory.

Abound Solar had planned to utilize an alternative to silicon, but after the costs of silicon fell, the competition from Chinese solar energy companies was too much for the Colorado company.

Bankruptcy protection can help businesses recover from tough economic times. If your business needs protection, contact the business bankruptcy attorneys of Hong Law, PLC, at 319-632-1400.

Electric car maker files for bankruptcy

Before it could bring 300 new jobs to Webster City, car maker Auto Manufacturing Systems, Incorporated had to file for bankruptcy. The company was hired to build battery-powered cars and fill a jobs hole left by the closure of the Electrolux plant last year.

Unfortunately, it filed for Chapter 7 bankruptcy this week, despite being loaned $790,000 by the city to fund the project.

Normally businesses file for Chapter 11 bankruptcy to reorganize their debt while keeping as many of their assets as possible. A Chapter 7 bankruptcy includes a liquidation of assets to help forgive debts, and probably the end of the business.

If you are struggling to keep up with your financial obligations, you may be eligible for Chapter 7 bankruptcy. Contact the bankruptcy attorneys of Hong Law, PLC, at 319-632-1400 to learn more.

Houghton Mifflin Harcourt files for Chapter 11

Boston-based book publishing giant Houghton Mifflin Harcourt filed for Chapter 11 bankruptcy on Monday.

The company claims to be $3.53 billion in debt in the filings it made, while listing $2.68 billion in assets. It cites decreases in sales of physical books (due to the rise of e-books) and reduced government funding for its increasing financial strife.

The publisher has a long history, releasing the works of authors such as J.R.R. Tolkien, Ralph Waldo Emerson, and Mark Twain. The Chapter 11 bankruptcy filing will help restructure the company’s finances while allowing it to remain in business.

If your business is deeply in the red, you may consider filing for bankruptcy to help protect against certain debts. Contact the Chapter 11 bankruptcy lawyers at Hong Law, PLC, at 319-623-1400.

Wireless company head may step down to avoid bankruptcy

New York billionaire Philip Falcone’s wireless communications start-up, LightSquared, is going through some difficult times.

After receiving a conditional waiver from the FCC and investing billions of dollars into a nationwide 4G wireless network, the project is being postponed indefinitely. The FCC claims the network may interfere with crucial GPS systems and has since retracted LightSquared’s waiver.

The company may be facing bankruptcy unless a deal to appease its creditors is reached. One of the conditions of such a deal includes Philip Falcone stepping down as the company’s public figurehead. Mr. Falcone, a registered Republican, is accused of receiving preferential treatment from the Obama administration.

Not everyone has the luxury of avoiding bankruptcy by working less. If you are overwhelmed with debt, contact the Cedar Rapids bankruptcy lawyers of Hong Law, PLC at 319-632-1400.

Reddy Ice files for bankruptcy

Reddy Ice Holdings, Inc has now filed for bankruptcy protection after struggling financially since 2007.

In 2007, the government began to investigate Reddy Ice along with competitors, Arctic Glacier and Home City for trying to eliminate rivals by keeping the prices above market level.

Reddy Ice and Arctic Glaciers both face heavy debt from battling these government lawsuits. Officials have always expected that these two companies would merge because they are the two largest distributors in ice industry. Combined, the companies have lost nearly $300 million in stocks.

Arctic Glacier, based out of Canada, filed for bankruptcy earlier this year, and has been searching for a buyer. Officials have thought that it would make the most sense for Reddy Ice to purchase the company because of they distribute to similar geographic regions and have similar business objectives. Reddy Ice listed assets totaling to $434 million and debt totaling to over $530 million.

If you or a loved one has been searching for  a way of debt, you need representation on your side that can help you decide your best options. Contact the Cedar Rapids business bankruptcy lawyers of the Hong Law by calling 319-632-1400 today.

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