Small businessmen in Kentucky who are pondering either a Chapter 7 liquidation bankruptcy or a Chapter 11 reorganization may seek to protect family members, friends or close business associates from the effects of a bankruptcy discharge by paying amounts owed to such persons or entities before filing the bankruptcy petition. Such payments may, if they meet six criteria set forth in the bankruptcy code, be voided by the bankruptcy court, and they may impose additional costs on the estate, thereby reducing the amount available to pay creditors. These payments, known as "preferences," can pose a hazard in any business bankruptcy.
Peabody Energy Corp. once had a significant presence in Kentucky as a large coal producer. After Peabody sold its Kentucky operations, it was unable to become profitable, and in April 2016, it filed a petition for reorganization under Chapter 11 of the federal Bankruptcy Act. The company's reorganization plan was recently approved by the Bankruptcy court in St. Louis, but certain creditors and some shareholders are filing appeals from the court-approved plan.
Businesses in Kentucky, whether they are small family-owned enterprises or mega-stores, can find themselves facing serious financial crises, which are often out of their control. The loss of a customer base, a struggling market or an overload of debts can often lead businesses to consider filing for business bankruptcy.
Hunting and fishing are popular activities in Kentucky. And, many outdoor enthusiasts may have bought their goods from Gander Mountain, Co., one of the major outdoor sporting goods chains in the nation. In fact, the chain markets itself as our nation's "firearms superstore." However, according to some reports, Gander Mountain is on the verge of filing for bankruptcy.
As readers of this blog may remember, back in December, this blog reported that the once-popular women's clothing chain, The Limited, was planning to file for bankruptcy. Louisville residents may be interested to hear then that recently, The Limited acted on that plan. It did so by filing for Chapter 11 bankruptcy and closing all of its 250 locations.
Sometimes, through no fault of its own, a business can find itself deeply in debt that it cannot pay back. There may be an increase in competition, a struggling economy or the loss of customer base. When this happens, business owners in Louisville may decide that it is in their best interests to file for Chapter 11 business bankruptcy.
It used to be the case that the popular place for teens in Louisville to hang out was the mall. However, some stores in mall these days are finding that they are no longer teenage hot spots, leading some malls to file for bankruptcy.
Sometimes, factors outside of a business owner's control cause the business to fall into hard financial times. A struggling economy, an increase in competition or a lack of consumer interest could all lead a once thriving business to find it cannot meet its financial obligations. When this happens, a business owner in Louisville may want to consider filing for Chapter 11 bankruptcy.
Many people in Louisville this holiday season scoured their local mall for the best deals for holiday gift giving. For the fashion-forward, this meant purchasing items from popular clothing retailers. However, Louisville residents may be surprised to hear of one clothing retailer that may be facing the bankruptcy process.
No one can tell what the future will bring. A business owner in Louisville may find that one day his or her business is open and profitable, to one day facing the prospect of closing its doors due to overwhelming debt that he or she simply cannot manage any longer. When this happens, the business owner may want to consider filing for business bankruptcy.