The downward trend for business bankruptcies we reported a couple of months ago continued through the end of 2012. Though there were fewer business bankruptcies overall in 2012 than 2011, some very large companies finally succumbed to the economic recession felt by most Americans during the last few years.
Here’s a recap of 2012’s largest business bankruptcies, based on the value of the companies’ assets:
- Residential Capital, LLC – A real estate finance company with nearly $15.7 billion in assets.
- Edison Mission Energy – A power producer with $5.13 billion in assets.
- Eastman Kodak Company – An imaging technology company with $5.1 billion in assets.
- Overseas Shipholding Group, Inc. – An oil and petroleum transportation company with over $4 billion in assets.
- Patriot Coal Corporation – a coal mining company with $3.7 billion in assets.
- ATP Oil & Gas Corporation – an oil and gas development company with $3.6 billion in assets.
- Hawker Beechcraft Acquisition Co., LLC – an aviation services company with $2.7 billion in assets.
- First Place Financial Corp. – a unitary thrift company with $2.6 billion in assets.
- Houghton Mifflin Harcourt Publishing – a publishing company with $2.6 billion in assets.
- United Western Bancorp, Inc. – a unitary thrift company with $2.5 billion in assets.
When large businesses seek bankruptcy protection, it is usually under the provisions of Chapter 11, which allows financial reorganization of a viable business. Often, businesses will continue some or all of their regular business operations under Chapter 11 while negotiating with one or more buyers to purchase the business’s assets. Creditors must take an active role in the bankruptcy proceedings to protect their rights.
If you are a creditor with questions about protecting your rights to recover from a debtor under bankruptcy protection, contact the experienced business litigation, bankruptcy and transactional law attorneys at Glass & Goldberg. Call us at (818) 888-2220, email us at email@example.com, or visit us on the web at www.glassgoldberg.com to learn more about the firm and to sign up for future newsletters.