California Bankruptcy Lawyer Blog

Last Week in California, SLO Med and Central Coast Laser filed for protection under Chapter 7 Bankruptcy at the Santa Barbara office of U.S. Bankruptcy Court for the Central District, Northern Division. Both companies are owned by Jeff Lemoine, who is scheduled to be arraigned on charges that he practiced medicine without a license and injured others in the process. He was also arrested in August on suspicion of grand theft.

Under Chapter 7 Bankruptcy Protection, the companies will be discharged of all debts. Chapter 7 bankruptcy, sometimes called "liquidation" bankruptcy, cancels most of your debts, but you have to let the bankruptcy trustee liquidate (sell) your nonexempt property for the benefit of your creditors.

Continue reading "In California, San Luis Obispo Med Spa and Central Coast Laser Center Both File For Chapter 7 Bankruptcy" »

Last week, FireScope and Blue Street Capital announced that they are forming a partnership that will allow FireScope to offer its clients options for flexible financing.

Blue Street is an independent leasing and financing company that offers U.S. companies financing solutions. Leases are funded internally or via partnerships with more than 20 lending institutions.

FireScope offers organizations security appliances that can provide organizations with actionable business intelligence regarding the health and security of key IT assets.

Benefits of Forming A Joint Venture:

1. A joint venture is one of the most effective ways of enhancing your relationship with your subscribers and customers. It'll reflect positively on you if you're able to find a quality product and/or service at an excellent value to offer them. For this to be effective, your subscribers and customers must think that you're offering increased value to them.

Continue reading "California-Based Companies FireScope, Inc. and Blue Street Capital, LLC Form Partnership To Offer Clients Flexible Financing For FireScope Clients" »

Last Week, Northwest Airlines worked out a deal to pay J.P. Morgan and Co. and other lenders more than $23 Million—less than 50% of the $55 million to $60 million that lenders were asking for in relation to a dispute over a $975 million loan. The settlement must be approved in court.

The airline company filed Chapter 11 Bankruptcy last year. In order to exit bankruptcy, Northwest says it has to cut $2.5 billion in costs.

A U.S. Bankruptcy Court must also approve the agreement reached between Northwest Airlines, Boeing Co., and Rolls-Royce PLC that will let the airline accept delivery of its new Boeing 787 planes beginning the 3rd quarter of 2008.

Continue reading "Under Bankruptcy Protection, Northwest Airlines To Pay Lenders Over $23 Million" »

In the United States, the number of people filing bankruptcy to erase their debts has decreased since the country revised its bankruptcy laws last year and Congress began mandating an income-based test for measuring a debtor’s ability to repay his or her financial obligations.

Because of this, less people are able to file a Chapter 7 bankruptcy, and debtors who have an income higher than their state’s median and can pay at least $6,000 over a five-year period must file Chapter 13 bankruptcy nd repay some of their debt.

In California, the median for a single earner is $43,107. The median for a family of four is $70,172.

Continue reading "Bankruptcy Filings Decrease One Year After New U.S. Law" »

On October 6, Tower Records was sold to Great American Group for $134.3 million at a bankruptcy auction. Great American Group plans to sell all of Tower’s inventory, and going-out-of-business sales are already taking place at all 89 Tower stores.

Tower Record’s website Tower.com, Pulse! Magazine and its 33rd Street Records, however, are being bought by Norton LLC of San Francisco for $3.8 million.

Tower Records owes $200 million to creditors and in August had filed for bankruptcy for a second time.

Continue reading "Sacramento-Based Tower Records Sold At Bankruptcy Auction To Liquidation Firm Great American Group" »

Silicon Graphics Inc. (SGI) plans to emerge from bankruptcy this month. The Mountain View-based computer business’s reorganization plan was approved by a US bankruptcy court last month.

SGI says it is receiving an $85 million term loan from Morgan Stanley Senior Funding Inc. and a $30 million credit line from General Electric Capital Corp. for its exit financing. SGI says the loan will pay off debtor-in-possession financing and provide working capital for its current operations.

SGI—the company that became famous for its high-powered graphic systems—filed for Chapter 11 protection last May when it reported $664 million in debt and $369 million in assets.

Filing Chapter 11 of the Bankruptcy code lets a bankrupt company reorganize it’s business so it can become profitable. The business continues running but must be supervised by a bankruptcy court.

Continue reading "Bay Area Based-Silicon Graphics Reemergence From Chapter 11 Approved By U.S. Bankruptcy Court" »