Fountain files chapter 11 bankruptcy
08-24-2009 | 02:57 PM
#1
Thread Starter
Registered
Joined: Mar 2009
Posts: 22
Likes: 0
From: Chicago, IL.
08-25-2009 | 06:59 AM
#4
Lakeside Restorations.com
Joined: Nov 2003
Posts: 2,512
Likes: 2
From: NorthEastern, PA
Yes, it will probably will be better for Fountain in the longrun. Hoefully this will let them stay in business to continue building long term.. 
Jamie
Jamie
__________________
www.LakesideRestorations.com 570-639-2628
We Make Fast Toys Faster, Cool Toys Cooler and Old Toys New!.. Performance, Custom & OEM Parts & much MORE![/CENTER]
www.LakesideRestorations.com 570-639-2628
We Make Fast Toys Faster, Cool Toys Cooler and Old Toys New!.. Performance, Custom & OEM Parts & much MORE![/CENTER]
09-04-2009 | 01:16 AM
#10
Registered
Joined: Jan 2007
Posts: 1,667
Likes: 0
I sure wish them the best! Most people don't know much about 11 as it typically does not pertain to individuals. Although sometimes individuals do file 11, it's not very common.
Chapter 11 bankruptcy is a form of bankruptcy reorganization available to individuals, corporations and partnerships. It has no limits on the amount of debt, as Chapter 13 does. It is the usual choice for large businesses seeking to restructure their debt.
The debtor usually remains in possession of its assets, and operates the business under the supervision of the court and for the benefit of creditors. The debtor in possession is a fiduciary for the creditors. If the debtor's management is ineffective or less than honest, a trustee may be appointed. A creditors committee is usually appointed by the U.S.Trustee from among the 20 largest, unsecured creditors who are not insiders. The committee represents all of the creditors in providing oversight for the debtor's operations and a body with whom the debtor can negotiate an acceptable plan of reorganization.
A Chapter 11 plan is confirmed only upon the affirmative votes of the creditors, who are divided by the plan into classes based on the characteristics of their claims, and whose votes are a function of the amount of their claim against the debtor.
If the debtor can't get the votes to confirm a plan, the debtor can attempt to "cram down" a plan on creditors and get the plan confirmed despite creditor opposition, by meeting certain statutory tests.
Chapter 11 is probably the most flexible of all the chapters, and as such, it is the hardest to generalize about. Its flexibility makes it generally more expensive to the debtor. The rate of successful Chapter 11 reorganizations is depressingly low, sometimes estimated at 10% or less.
Individuals usually reorganize under Chapter 13, which offers a streamlined plan at modest cost that allows the individual to keep possession of his assets, catch up on secured debt, and discharge unsecured debt at the end of the plan.
Love him or hate him. All of us will suffer to some degree if Fountain goes away. I sure hope he pulls through!!!!
Chapter 11 bankruptcy is a form of bankruptcy reorganization available to individuals, corporations and partnerships. It has no limits on the amount of debt, as Chapter 13 does. It is the usual choice for large businesses seeking to restructure their debt.
The debtor usually remains in possession of its assets, and operates the business under the supervision of the court and for the benefit of creditors. The debtor in possession is a fiduciary for the creditors. If the debtor's management is ineffective or less than honest, a trustee may be appointed. A creditors committee is usually appointed by the U.S.Trustee from among the 20 largest, unsecured creditors who are not insiders. The committee represents all of the creditors in providing oversight for the debtor's operations and a body with whom the debtor can negotiate an acceptable plan of reorganization.
A Chapter 11 plan is confirmed only upon the affirmative votes of the creditors, who are divided by the plan into classes based on the characteristics of their claims, and whose votes are a function of the amount of their claim against the debtor.
If the debtor can't get the votes to confirm a plan, the debtor can attempt to "cram down" a plan on creditors and get the plan confirmed despite creditor opposition, by meeting certain statutory tests.
Chapter 11 is probably the most flexible of all the chapters, and as such, it is the hardest to generalize about. Its flexibility makes it generally more expensive to the debtor. The rate of successful Chapter 11 reorganizations is depressingly low, sometimes estimated at 10% or less.
Individuals usually reorganize under Chapter 13, which offers a streamlined plan at modest cost that allows the individual to keep possession of his assets, catch up on secured debt, and discharge unsecured debt at the end of the plan.
Love him or hate him. All of us will suffer to some degree if Fountain goes away. I sure hope he pulls through!!!!
Last edited by SDFever; 09-04-2009 at 01:19 AM.
