The World Trade Club of San Francisco Files For Chapter 7 Bankruptcy Protection
After filing for Chapter 7 bankruptcy last month, the World Trade Club of San Francisco will hold a liquidation auction on January 7.
Founded in 1957, the club closed its doors on October 29, 2006 because of financial problems. Membership had dropped to 800 from 2000 after it had moved from the San Francisco Ferry Building on the Embarcadero to One Ferry Plaza.
The World Trade Club owes over $2.7 million to secured and unsecured creditors, with assets at approximately $575,000. Among the debts the club owes:
· A disputed $158,476.20 owed to City National Bank.
· $1,108.75 in trade debt owed to A Touch of Class Entertainment of San Jose.
· $50 in membership credit owed to the Hon. Richard Collier Sears of the New Zealand Consulate General.
Ferry Plaza, LP, the club’s landlord, is expected to be the estate’s largest creditor in these bankruptcy proceedings.
At the January 7 auction, wines and spirits (a $24,000 value) will be up for bidding, as well as valuable maritime art, a parquet dance floor, and ship models.
A chapter 7 bankruptcy cancels a business's debts. In making a decision to file for chapter 7 protection, however, a business must shut down operations. A court appointed trustee will then sell the business’s assets to pay as many of the business's debts as possible.
While filing for bankruptcy may be the best alternative for many businesses and individuals, there are also alternatives that a person or business may want to consider:
Alternatives to Chapter 7
Debtors should be aware that there are several alternatives to chapter 7 relief. For example, debtors who are engaged in business, including corporations, partnerships, and sole proprietorships, may prefer to remain in business and avoid liquidation. Such debtors should consider filing a petition under chapter 11 of the Bankruptcy Code. Under chapter 11, the debtor may seek an adjustment of debts, either by reducing the debt or by extending the time for repayment, or they may seek a more comprehensive reorganization. Sole proprietorships may also be eligible for relief under chapter 13 of the Bankruptcy Code.
If you are a business and you would like Chapter 7 bankruptcy or Chapter 11 bankruptcy or explore your other options, Sagaria Law, P.C. can help you. Contact Sagaria Law, P.C. to speak with one of our attorneys for a free, no obligation consultation.
Bankruptcy for World Trade Club, examiner.com, December 21, 2006
Alternatives to Chapter 7, US Courts.gov
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