Liquidating chapter 11 bankruptcy
Liquidating chapter 11 bankruptcy - on line dating service for torremolinos
The company's creditors are not allowed to pursue debts or claims that arose before the bankruptcy petition was filed.
In filing for a Chapter 11 bankruptcy reorganization, it appeared Rue21 may avoid liquidation, a fate that has recently befallen mall clothing store chains Bebe, the Limited and Wet Seal.“Even in a challenging environment, we are fortunate that Rue21 has highly relevant brands, an enthusiastic and loyal customer base and hundreds of highly performing stores,” Rue21 CEO Melanie Cox said in a statement.
Typically, a plan in a retail case would provide that the debtor would “reject” leases for stores that are not profitable, and thereafter would propose a plan that is based on the profits derived from the profitable locations.
Typically, a plan in a real estate case would provide that the mortgages would be rewritten within the confines set forth by the Bankruptcy Code, such that the debtor may service the debt under different terms and retain ownership of the property.
Floundering businesses typically use Chapter 11 bankruptcy, also known as "reorganization" bankruptcy.
During a Chapter 11 bankruptcy, businesses usually retain possession and control of their assets under the supervision of a bankruptcy court.
The disclosure statement contains information about the company's assets, liabilities, and business affairs, and the reorganization plan includes a discussion of how the company will handle the claims against it.
The company's creditors participate in the bankruptcy proceedings.The company lists 15 stores in southeast Michigan, at Oakland Mall, Warren, Macomb Mall, Lakeside Mall, Rochester Hills, Allen Park, Westland, Southland, Chesterfield Township, Canton, Brighton, Monroe, Lapeer, Flint and Tanger Outlet Center.It warned of cuts to Rue21’s workforce of 15,800 employees, of which 12,300 are part-time workers. Individuals who go broke generally file for Chapter 7 bankruptcy, which involves liquidating a debtor's property and distributing the proceeds to creditors. Bankruptcy Code spells out the different types of bankruptcy, which are known by the chapter of the code in which they appear.Upon filing, the debtor is commonly referred to as “debtor-in-possession.” The debtor is responsible for preserving and managing all assets as a fiduciary and is subject to strict guidelines as set forth in the Bankruptcy Code in order to continue to operate the business.