Big Names In Business Bankruptcy Filings

While the economy has continued to bruise our wallets and personal debt loads, even businesses are having a tough time fighting the effects of a downtrodden economy. Although personal bankruptcy filings have dropped over the last year, it seems as though there has been an increase in business filings. Are more businesses filing for bankruptcy or are we just more in tuned with hearing about them in recent years? It could be a little of both, but the fact remains that some well known names have hit the newsstands with their announcements of filing for bankruptcy protection.

American Airlines

Perhaps the most notable business bankruptcy of 2011-2012 it seems that all eyes are on American Airlines and their Chapter 11 outcome. As the nation’s largest airline, news of the airline’s bankruptcy has struck fear in the hearts of many. American is employs the most people and holds major market share in the United States airline industry. With thousands of jobs at risk, consumer benefits up in the air and the fate of the entire fleet on the line, American has captured the attention of us all.

American Airlines has managed to dodge some major financial bullets thus far as they are working to restructure their debts. Having only made minor layoffs and trimming a few flight routes from service, there hasn’t been too much of an uproar in local economies as a result. However, as news broke last week about the airline’s plans to hire financial advisers at a price of several million dollars, many are concerned that the airline will make further employee or customer cuts to make room for their costs.

Hostess Brands Inc.

One of the most notable snack cake brands in the United States is also seeking Chapter 11 protection, again. Filing for the second time in three short years, Hostess Brands Inc. has found themselves in financial trouble once again. The maker of the popular Twinkie snacks exited a previous Chapter 11 cases back in 2009, but has failed to regain profitability since.

The snack maker now owes around $945 million, $11.8 of which is owed to two major pension fund creditors. With close to $1 billion in debt liabilities, Hostess is hoping that second time is a charm in adequately resolving debts and regaining control over their profitability.

Saab Automakers

The Swedish automaker Saab announced their plans to file for Chapter 11 right before the end of the year. Now owned and operated by General Motors, there is much debate about the fate of the car brand. For now, bids are being accepted surrounding much interest in a buyout from foreign competitors. However, it is unlikely that General Motors will allow the brand to be sold in a buyout when Saab cars now possess some of GM’s trademarked features.

The Lee Law Firms aims to help local residents resolve their debt issues and achieve a financially healthy future. They provide high quality legal representation that helps lower monthly debt payments, stop wage garnishment, prevent foreclosures, and stop calls from creditors. The Lee Law Firm business bankruptcy attorneys have many years of experience in all aspects of Chapter 7 and Chapter 13 Bankruptcy in Fort Worth.

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