Rumors have been circulating for almost a month about Borders' (BGP) possible bankruptcy filing. People familiar with the situation told The Wall Street Journal that the filing could come as early as the middle of this month.

Borders has been trying to hold off the filing by delaying payments to vendors. But this is only temporary. Now the matter has reached a critical stage. The company has obtained about $500 million to $550 million in debtor in possession financing that would keep the company operating after a court filing.

Continue reading Borders Nears Possible Bankruptcy Filing

Borders Nears Possible Bankruptcy Filing originally appeared on BloggingStocks on Wed, 02 Feb 2011 10:00:00 EST. Please see our terms for use of feeds.

Reports surfaced Thursday that Borders (BGP) started negotiating with banks for financing to help keep the bookstore chain liquid during bankruptcy proceedings. Later in the evening, GE Capital made a $550 million financing commitment to the embattled company.

This financing should allow Borders the financial flexibility and level of liquidity to advance its restructuring plan. The plan includes closing stores, cutting costs, expanding its rewards program, and increasing non-book offerings -- all with the goal of improving cash flow and profits. Borders did note that it will explore alternative possibilities, such as restructuring its debt under court supervision.

Continue reading GE Capital Commits $550 Million to Borders

GE Capital Commits $550 Million to Borders originally appeared on BloggingStocks on Fri, 28 Jan 2011 09:30:00 EST. Please see our terms for use of feeds.

Personal bankruptcy filings have been climbing steadily since 2007 when the U.S. tumbled into a deep recession. With unemployment near 10%, bankruptcy filings are on the rise.

For the fiscal year ending Sept. 30, more that 1.5 million non-business bankruptcy filings were processed, according to data released by the Administrative Office of the U.S. Courts and reported in CNNMoney. That's a 14% increase from 2009.

Continue reading Bankruptcy Filings Surge 14% in 2010

Bankruptcy Filings Surge 14% in 2010 originally appeared on BloggingStocks on Tue, 09 Nov 2010 10:00:00 EST. Please see our terms for use of feeds.

Early Thursday morning, Blockbuster (BLOKA) announced that it filed for voluntary Chapter 11 bankruptcy petitions. The move comes after an agreement with bondholders to recapitalize the movie and game rental chain.

According to the company, the filing in the U.S. Bankruptcy Court of the Southern District of New York applies to the company and its domestic subsidiaries, but not to the non-U.S. operations or the group's franchisees. Reportedly, the group has agreed on a deal with bondholders to swap secured notes for equity in a reorganized Blockbuster.

Continue reading Blockbuster Files for Chapter 11 Bankruptcy Protection

Blockbuster Files for Chapter 11 Bankruptcy Protection originally appeared on BloggingStocks on Thu, 23 Sep 2010 08:30:00 EST. Please see our terms for use of feeds.

Ambac Financial Group (ABK) took the earnings stage Monday night -- and the stock took a quick dive right out of the gate Tuesday morning, if that gives you any indication about the quarterly results. The bond insurer swung to a loss of $57.6 million in the second quarter, and warned that a bankruptcy filing is likely if it can't come up with a plan to restructure its liabilities within the next year.

The company's official release stated the matter quite plainly: "Ambac has insufficient capital to finance its debt service and operating expense requirements beyond the second quarter of 2011 and may need to seek bankruptcy protection."

Continue reading Puts Popular as Ambac Financial Takes a Post-Earnings Dive

Puts Popular as Ambac Financial Takes a Post-Earnings Dive originally appeared on BloggingStocks on Tue, 10 Aug 2010 11:00:00 EST. Please see our terms for use of feeds.

There are rumors that BP (BP) may declare bankruptcy. That way it can avoid some of the liabilities from the giant oil spill in the Gulf of Mexico. No one knows what BP will do, and it seems to be making a concerted effort to do the right thing, especially since the president of the United States has taken a personal interest. We can only hope for the best.

As investors, however, it's important to know how a bankruptcy works and how it affects stockholders of a company that goes through it. In a nutshell, you get screwed. Here's how.

The first thing to understand is that a company is a legal entity unto itself. While there is management to run it, the company, in the eyes of the law, is almost like a person, responsible for its actions. So think of it as a breathing, living being.

Continue reading Comfort Zone Investing: When a Company Goes Bankrupt

Comfort Zone Investing: When a Company Goes Bankrupt originally appeared on BloggingStocks on Sat, 19 Jun 2010 10:30:00 EST. Please see our terms for use of feeds.

Continue reading Simon Properties Still Wants a Piece of GGP

Simon Properties Still Wants a Piece of GGP originally appeared on BloggingStocks on Thu, 15 Apr 2010 10:00:00 EST. Please see our terms for use of feeds.

Continue reading Can General Motors Turn to Profitability in 2010?

Can General Motors Turn to Profitability in 2010? originally appeared on BloggingStocks on Wed, 07 Apr 2010 16:00:00 EST. Please see our terms for use of feeds.

The race is on for first-time home buyers to close their contracts before April 30. That is when the $8,000 first-time home buyers credit ends. Buyers who are selling a home and buying a new home are eligible for $6,500.

This last minute rush has bumped up the National Association of Realtor's Pending Home Sales Index 8.2% to 97.6, from 90.2 in January. The index is 17.3% higher than February 2009.

Continue reading Pending Home Sales Index Surges 8.2%

Pending Home Sales Index Surges 8.2% originally appeared on BloggingStocks on Mon, 05 Apr 2010 13:00:00 EST. Please see our terms for use of feeds.

Continue reading Sex.com Sale Stalled by Involuntary Bankruptcy Filing

Sex.com Sale Stalled by Involuntary Bankruptcy Filing originally appeared on BloggingStocks on Fri, 19 Mar 2010 15:00:00 EST. Please see our terms for use of feeds.

TheStreet.com

Continue reading Is Blockbuster on the Verge of Bankruptcy?

Is Blockbuster on the Verge of Bankruptcy? originally appeared on BloggingStocks on Wed, 17 Mar 2010 10:00:00 EST. Please see our terms for use of feeds.

General Growth Properties (GGWPQ), the mall operator that shuffled into bankruptcy protection last year, says it has applied to list its shares on the New York Stock Exchange (NYSE) once again. The company hopes to begin trading on the Big Board as of March 5, using its previous ticker of GGP.

"Trading again on the NYSE will mark an important milestone in GGP's restructuring process," said CEO Adam Metz in a press release. The shares currently trade over the counter.

Continue reading General Growth Properties Set to Rejoin NYSE

General Growth Properties Set to Rejoin NYSE originally appeared on BloggingStocks on Tue, 02 Mar 2010 11:40:00 EST. Please see our terms for use of feeds.

Continue reading What Signals from General Growth Battle?

What Signals from General Growth Battle? originally appeared on BloggingStocks on Fri, 26 Feb 2010 15:00:00 EST. Please see our terms for use of feeds.

Continue reading Former Lehman CFO Leaves Credit Suisse

Former Lehman CFO Leaves Credit Suisse originally appeared on BloggingStocks on Fri, 26 Feb 2010 10:00:00 EST. Please see our terms for use of feeds.

We're all pretty happy to put 2009 behind us, especially those who submitted the 1.4 million bankruptcy petitions last year, making it the seventh-worst on record.

Data gathered by the Associated Press from the 90 bankruptcy districts in the U.S. shows that filings surged 32% from 2008, with 116,000 bankruptcies in December alone. The 22% jump last month, though substantial, was at least below the annual average. That said, the holiday season may have chewed up time that people would use to file, so the apparent reprieve (if you can call a 22% increase in bankruptcies a reprieve) may not be real.

Continue reading Every State Sees Double-Digit Bankruptcy Growth

Every State Sees Double-Digit Bankruptcy Growth originally appeared on BloggingStocks on Tue, 05 Jan 2010 13:00:00 EST. Please see our terms for use of feeds.

Continue reading Citadel Broadcasting Declares Bankruptcy

Citadel Broadcasting Declares Bankruptcy originally appeared on BloggingStocks on Mon, 21 Dec 2009 10:30:00 EST. Please see our terms for use of feeds.

The National Bankruptcy Research Center reported that there were 135,914 bankruptcies in October, up 9%. One third of the bankruptcies were filed under Chapter 13. Chapter 13 requires that the court set up a five year repayment plan for debts owed.

In addition business bankruptcies were up 7% for the same period.The forecast is for 1.4 million bankruptcies in 2009, the highest since 2005. In that year Congress revamped the bankruptcy laws to make it more difficult to wipe out all of a person's debts. There was a rush of filings in the months just before the new law was enacted.

Continue reading Personal bankruptcies skyrocket 9% in October

Personal bankruptcies skyrocket 9% in October originally appeared on BloggingStocks on Wed, 04 Nov 2009 18:20:00 EST. Please see our terms for use of feeds.

CIT Group

Continue reading Taxpayers are, once again, the biggest losers in the CIT bankruptcy

Taxpayers are, once again, the biggest losers in the CIT bankruptcy originally appeared on BloggingStocks on Mon, 02 Nov 2009 11:00:00 EST. Please see our terms for use of feeds.

You're now free to invest in Iceland ... should you be so inclined. On Sunday, the country will begin lifting its post-financial disaster capital controls, giving investors a bit more elbow room. Foreign currency investments coming in won't be subject to the existing controls.

According to a statement released by Iceland's central bank, "Investors are authorized, without restrictions, to convert into foreign currency the sales proceeds from assets in which they invest after Nov.1." The statement also said, "Previously, non-residents were fully authorized to transfer foreign currency deriving from interest and dividends on investments in Iceland."

Continue reading Iceland is now open for business once more

Iceland is now open for business once more originally appeared on BloggingStocks on Sun, 01 Nov 2009 12:00:00 EST. Please see our terms for use of feeds.

CIT Group is one of the largest lenders to small- and medium-sized businesses in the U.S. But it has been plagued with financial troubles for nearly a year now. Last year the firm received $2.3 billion in federal bailout money. That helped them stave off bankruptcy for a while. Then this past July it received another $3 billion loan from some of its largest bondholders.

Apparently these stimulus packages are not enough to keep CIT Group Inc. (NYSE: CIT) afloat. The root of the problem is $30 billion dollars of outstanding debt. The latest maneuver would be to offer bondholders a stake in the company. This move would eliminate 40% of its outstanding debt, according to a Wall Street Journal report.

The key sticking point here is that by turning over control to bondholders, common shareholders would be wiped out. In addition, the $2.3 billion in federal stimulus money would go up in smoke.

Continue reading CIT is on the brink of collapse. Will it survive?

CIT is on the brink of collapse. Will it survive? originally appeared on BloggingStocks on Thu, 01 Oct 2009 09:30:00 EST. Please see our terms for use of feeds.