California Bankruptcy Lawyer Blog

San Jose Bankruptcy Attorney Discusses - Part Of Reorganization Efforts After Filing Chapter 11 Bankruptcy, San Jose Based-Calpine Corp. Sells Equipment For $112 Million

Calpine Corp. announced last week that it had sold generators, turbines, and other equipment as part of its restructuring efforts under Chapter 11 bankruptcy.

The San Jose-based power company said it had made about $112 million by selling the equipment. The company has been selling different assets to reorganize itself. In September, a bankruptcy court approved the sale of Calpine’s power plant in Massachusetts for $90.2 million.

Declaring that it had $17.2 billion in debt and $26.6 billion in assets, Calpine had voluntarily filed for bankruptcy protection last December. A number of its subsidiaries also filed under Chapter 11. Calpine offers electrical services in 21 US states and 3 Canadian provinces.

Reorganizing Under Chapter 11
After a company qualifies for Chapter 11 bankruptcy, the U.S. Trustee will appoint at least one committee to represent a company’s creditors and stockholders:

Continue reading " San Jose Bankruptcy Attorney Discusses - Part Of Reorganization Efforts After Filing Chapter 11 Bankruptcy, San Jose Based-Calpine Corp. Sells Equipment For $112 Million " »

Monterey Bankruptcy Attorney Discusses More Corporate Bankruptcies Expected In the United States, According To New Report

The American Bankruptcy Institute and the Dow Jones' Daily Bankruptcy Review are saying to expect a wave of corporate bankruptcy filings in the next six to eighteen months. Bankruptcy experts are attributing the expected rise of loan default rates to be one reason for the predicted increase of filings.

In general, there are two major types of bankruptcies that a company will file. Chapter 7 bankruptcy and Chapter 11 bankruptcy.

Chapter 11 bankruptcy allows a debtor to stay in business and avail of bankruptcy protection while they work out a plan to increase their profitability and decrease their debts. They are also required to work out and follow a bankruptcy reorganization plan that they must develop while working with an appointed committee.

Public companies will usually file under Chapter 11, because it allows them to run their business while supervising its reorganization as they implement a plan to pay their debts. Should their efforts fail, however, a company could be forced to liquidate its assets so that the debts still are paid.

Continue reading " Monterey Bankruptcy Attorney Discusses More Corporate Bankruptcies Expected In the United States, According To New Report " »