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Chapter 11s on the rise: Red flags and steps to protect your credit sales. (Legal Corner).
A record number of bankruptcies for businesses are being reported. Enron filed the largest Chapter 11 ever, with billions in assets and liabilities. Kmart followed, being the largest retailer to file, with assets and liabilities in the billions and 2,100 stores. The notion that a company is simply too large to file Chapter 11, as the company would be rescued by creditors or the government, is gone. Whether it is a local business suffering a downturn in business, or a public company with a billion dollars in assets, Chapter 11, the reorganization chapter of the Bankruptcy Code, is on the rise. The causes for the spike in Chapter 11 filings are varied. September 11 has been ...
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Source: HighBeam Research, Chapter 11s on the rise: Red flags and steps to protect your credit...