Posted On: May 14, 2010 by Scott Sagaria

Six Famous Chapter 11 Bankruptcies

A San Jose Bankruptcy Attorney mentions famous Chapter 11 bankruptcies...

A Chapter 11 bankruptcy is a method in which a business may reorganize its infrastructure in order to pull itself from debt and begin making a profit again. A Trustee works with the organization to create a feasible business plan which allows the company to operate with a profit. Some of the most famous chapter 11 bankruptcies include:

Pacific Gas & Electric (PG&E) filed its most famous chapter 11 bankruptcy back in 2001 following California’s 1996 deregulation of public utilities. At the time of filing, PG&E had accumulated $12 billion in debt and $36 billion in assets.

Probably the most famous chapter 11 bankruptcy of all was Enron’s bankruptcy filing in December 2001. Enron filed chapter 11 bankruptcy with over $63 billion in assets. The downfall of Enron was due to the scandals by certain officers of the company. Stock plummeted from $90 per share to $0.10 per share, costing stock holders over $11 billion.

US Airways was another famous chapter 11 bankruptcy. US Airways filed for chapter 11 bankruptcy back in August 2002 and September 2004. With the terrorist attacks of September 11, the airline industry was struck with financial turmoil. One of the major US Airways’ hub, Reagan National Airport, remained closed the longest of all the major airports.

IndyMac Bancorp, Inc. filed for its famous chapter 11 bankruptcy in July of 2008. IndyMac was at one time the largest mortgage lender in California. With increasing default rates in California, IndyMac was brought down and eventually collapsed. At the time IndyMac filed its famous chapter 11 bankruptcy, its assets totaled $32.7 billion, while its liabilities were approximately $400 million.

Who can forget the famous chapter 11 bankruptcy filing of Lehman Brothers back in September of 2008? This famous chapter 11 bankruptcy is considered the most complex and largest bankruptcy case in history. The company’s assets were estimated to be just around $600 billion. The collapse not only destroyed Lehman Brothers, but took a devastating toll on Wall Street.

Lastly, a list of famous chapter 11 bankruptcies would not be complete with General Motors. GM filed for chapter 11 bankruptcy back in June of 2009 following a government bailout of approximately $19 billion and the government’s pledge to supply $30 billion more during its reorganization.

If you have questions regarding Bankruptcy in San Jose please contact us at 408.279.2288 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys. After you have spoken with one of our downtown San Jose bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Jose and the South Bay!

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