Sunday, July 14

Tag: bankruptcy

The Iconic Brand “Tupperware” can go Out of Business, Doubt Over its Growth
News

The Iconic Brand “Tupperware” can go Out of Business, Doubt Over its Growth

ORLANDO, Fla., April 11, 2023 ― Leading global consumer products company Tupperware warned that the company could be going out of business due to unsustainable growth and cash crunch. In a regulatory filing Tupperware said that it has engaged with financial advisors to find financing to keep the company in business.  Further it said, due to the challenging internal and external business economics, coupled with the increased levels and cost of borrowings under its Credit Facility, the Company currently forecasts that, if it is unable to obtain adequate capital resources or amendments to its Credit Agreement, it may not have adequate liquidity in the near term. As a result, the Company has concluded there is substantial doubt about its ability to continue as a going concern. This goi...
New Jersey based Crypto firm BlockFi files for bankruptcy
News

New Jersey based Crypto firm BlockFi files for bankruptcy

NJ, USA, 29th Nov, 2022: New Jersey-based crypto lending platform filed for Chapter 11 bankruptcy protection, the latest down crypto firm after collapse of crypto exchange FTX. BlockFi had been struggling for much of this year but was given a lifeline this summer in the form of an FTX line of credit. FTX's own bankruptcy, however sealed BlockFi's financial future. BlockFi suspended withdrawals after FTX's failure, and it had hired bankruptcy specialists in recent days. FTX's financial rescue package was no longer available to BlockFi once it ran into its own financial trouble, and BlockFi said any attempts to get additional funds in the days before the bankruptcy were not honored. BlockFi was one of several crypto currency lenders to pop up in recent years. The company gave loans...
Pizza Hut Franchise File for Bankruptcy
News

Pizza Hut Franchise File for Bankruptcy

World's largest Pizza Hut franchisee in the US filed for Chapter 11 bankruptcy due to business loss in the Covid19 period. In its court filing, the franchise distributor of Pizza hut and Wendy restaurant's, NPC International Inc. listed estimated assets ranging from $1 billion to $10 billion and estimated liabilities in the same range.  NPC operates 1,227 Pizza Hut and 393 Wendy's franchise in the United States, representing about 20% of the domestic Pizza Hut system. One of NPC's hurdles has been Pizza Hut's performance in recent years, which created a "significant drag on profitability due to a lack of sales growth and a significant inflationary cost environment," the filing said. But the Covid19 pandemic causes a big loss for Pizza Hut sales, and NPC has struggled wit...
Car Rental firm Hertz files for bankruptcy
News

Car Rental firm Hertz files for bankruptcy

ESTERO, Fla., May 22, 2020-- Car rantel firm Hertz today announced that its U.S. and Canadian subsidiaries have filed voluntary petitions for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware. The impact of COVID-19 on travel demand was sudden and dramatic, causing an abrupt decline in the Company's revenue and future bookings. Hertz took immediate actions to prioritize the health and safety of employees and customers, eliminate all non-essential spending, and preserve liquidity. However, uncertainty remains as to when revenue will return, and when the used-car market will fully re-open for sales, which necessitated today's action.  The financial reorganization will provide Hertz a path toward a more robust financial structure that best po...
Chinese Phonemaker Gionee Officially Files for Bankruptcy
CHINA

Chinese Phonemaker Gionee Officially Files for Bankruptcy

A second-tier Chinese smartphone company Gionee, which owes 20.2 billion Chinese Yuan (nearly $3 billion) to648 creditors, has officially filed for bankruptcy.According to the reports, a court in Shenzhen has accepted the Gionee application for liquidation bankruptcy. It had been stated that the founder of Shenzhen-basedGionee admitted he may have used company assets to gamble at a Hong Kong-listed casino in Saipan.Liu Lirong, Gionee's Chairman and Chief Executive, "admitted that Gionee's total debts amount to 17 billion yuan, with 10 billion yuan of this owed to banks, 5 billion yuan to upstream suppliers and about 2 billion to advertising agencies".When asked how much he lost gambling, Liu said, "a bit more than 1 billion yuan", which may actually be to the tune of 10 billion ...
Lehman Bankruptcy: 10 Years of The Biggest Fallout in Wall Street History
USA

Lehman Bankruptcy: 10 Years of The Biggest Fallout in Wall Street History

The moment was happened in September 2008 when the 150-year-old investment bank Lehman Brothers collapsed, precipitating the worst global economic crisis since the 1930s. After failing to find buyers for the troubled financial giant, that was weighed down by risky debt holdings made up of at sub-prime mortgages, U.S. authorities declined to offer a bailout and allowed the institution to fail. Monday, September 15, 2008, at 1:45 a.m., Lehman Brothers filed for bankruptcy, taking the world by surprise leaving well over $600 billion in debt, as well as 25,000 employees in shock. It was the biggest bankruptcy in American history. On Wall Street, the Dow Jones plunged 500 points, the largest drop since the attacks of September 11, 2001. Stunned traders streaming out of the building car...
Malaysian Billionaire Set to Lose $7 billion after Aircel’s Bankruptcy Filing
News

Malaysian Billionaire Set to Lose $7 billion after Aircel’s Bankruptcy Filing

Malaysian billionaire T. Ananda Krishnan’s company is set to make a loss of around $7 billion from a failed 12-year investment in the Indian telecom company Aircel Ltd, which officially announced the start of insolvency proceedings on Wednesday. Krishnan’s holding company Maxis Communcations Bhd had spent about $3.4 billion in shareholder rights to Aircel; amount which they will never see again. A person close to the company said anonymously that the holding company has also spent around 1.2 billion in Aircel in return for common stock. They also subscribed to $1.6 billion of redeemable preference shares. The estimates of losses also include the first $800 million Krishnan injected in the company when he first bought the firm in 2006. At that time, less than 10% of India’s 1.1 bil...
Sexual Abused Accused Producer Weinstein Company Will File for Bankruptcy
USA

Sexual Abused Accused Producer Weinstein Company Will File for Bankruptcy

Weinstein Co, the studio co-founded by Harvey Weinstein, will file for bankruptcy protection following the USD 500 million deal to sell the company collapsed, the company's board of directors said. The decision came after the board was unable to revive a deal to sell the struggling studio to an investor group led by Maria Contreras-Sweet, who ran the Small Business Administration under President Barack Obama from 2014 to 2017, reported Variety. The board of the company released a letter, in which it made clear that it was in dire need of operating cash. "Based on the events of the past week, however, we must conclude that your plan to buy this company was illusory and would only leave this Company hobbling toward its demise to the detriment of all constituents. Despite your previo...
How You Can Insure Directors and Officers Liability in Workplace
BLOGS

How You Can Insure Directors and Officers Liability in Workplace

Every company has managers, officers and directors who are vulnerable to external risks of claims incurred due to certain decisions undertaken in that position that may not go down well with the related parties relevant to the business. These related parties may include the vendors, customers, employees, contractors, and sub-contractors. Also, there are chances that the company or some of its directors may be duped for various reasons like misrepresentation of company assets, fraud, not following the work ethics or misrepresentation of funds or breach of contracts. How do you bear such costs that may go into saving the company's reputation in the long-run? For such a situation, a business organisation needs to avail Directors and Officers liability insurance policy. The top managers...
Gawker Media Asks For $22 Million Bankruptcy Loan Approval
News

Gawker Media Asks For $22 Million Bankruptcy Loan Approval

Gawker Media LLC asked a U.S. bankruptcy court judge on Monday for permission to borrow up to $22 million from an affiliate of buyout firm Cerberus Capital Management LP to help it through its sale process, according to a court filing. The online publishing pioneer filed for bankruptcy last week after it failed to secure a postponement on paying $140 million to Hulk Hogan after it lost a lawsuit involving the publication of excerpts from a sex tape of the former pro wrestler. Media company Ziff Davis LLC has entered into an agreement to buy Gawker for $90 million, setting the floor for an opening bid in a court-supervised auction expected to take place at the end of July. The loan from Cerberus, which often invests in companies in financial distress, will help Gawker...