Jim from Blueprint For Financial Prosperity writes:
Bankruptcy isn’t just for discount carriers anymore! The all-business class carrier EOS filed for Chapter 11 bankruptcy protection yesterday, and will fly its last flight tonight. Eos envisioned a beautiful world, one where business elites traveled unfettered by proles and crying babies, unless the babies were crying for more gold. That vision lies shattered, hopeless pummeled by rising oil prices and stingy business travelers who will now have to share planes with the rest of us.
As the cost of food and gas begin to crowd out other expenses, and access to credit is limited by the mortgage meltdown, a “widening wave of bankruptcies in American retailing” is threatening the economy, says the NYT.
If, as the market price implies, Linens ‘n Things noteholders expect to recover just one-third of face value on their debt, woe to the equity holders, Apollo Management, National Realty & Development Corporation and Silver Point Capital. Their stock is almost sure to be wiped out.
Frontier Airlines has joined the conga line of bankrupt airlines today, according to a statement from the company.
Defunct budget airline Skybus plans to issue full refunds to all ticket holders. The airline announced last night that they were done flying less than two weeks after former CEO Bill Diffenderffer quit to pursue a book-writing career. While everyone who hasn’t yet traveled will soon be reunited with their cash, what about passengers who are in the middle of a trip? Let’s ask Air Force Sergeant Gary Patterson.
Reader Jake writes in to share the story of how he came to be the proud owner of a now-worthless ATA voucher:
Aloha Airlines is no more. The airline is shutting down.
Reader Jennifer sent the following letter to a few lawyers looking for some help with SallieMae. They told her that there was nothing she could do and to negotiate with the lender and to start making payments:
Brookstone says they will accept your Sharper Image Gift Card. Sort of.
The Shaper Image says that it will resume redemption of gift cards, but there’s a catch.
Despite issuing a press release claiming that they will “continue to conduct business as usual,” The Shaper Image has suspended redemption of all gift certificates after filing for bankruptcy late on Tuesday.
Hey want to buy an “ionic air filter”? You don’t? Is it because of that annoying class action lawsuit? Hey guess what? You’re not the only one! After losing a class action lawsuit Sharper Image ” said in court papers it fell victim to “negative publicity” as it fought lawsuits over its Ionic Breeze air purifiers.”
Furniture retailer Wickes has filed for Chapter 11 bankruptcy. [Chicago Sun-Times]
Although December marked a slight decrease in Chapter 13 filings from November, 2007 overall logged a whopping 40% rise in the number of bankruptcy filings compared to 2006, reports the Wall Street Journal—over 800,000 filings in 2007, versus around 570,000 the previous year.
On Monday, the young all-business-class airline MAXjet filed for bankruptcy protection and ceased all operations, “leaving jets on tarmacs and stranding passengers on Christmas Eve.” To compensate, the airline has been booking hotel rooms through early January 2008 in the four cities it served, and trying to arrange for other airlines to take on their passengers—”Continental Airlines and Silverjet Aviation Ltd., another all-business class carrier, said they would honor limited numbers of MAXjet tickets.”
Coppedge saw it coming in slow motion. Around this time last year, she was mostly dealing with renters who were behind on payments. Rarely did she counsel at-risk homeowners. When she did, they were usually suffering a one-time setback such as job loss.
Frances Joy Taylor had had about $2 million in assets, which she intended to leave to her church, before she met a businessman named Tyrone Dash. Dash took over her affairs and “methodically liquidated or leveraged almost everything she owned: her bank accounts and securities, her insurance policies, her credit cards, her two apartment buildings and, ultimately, her home,” says the Seattle Times. Frances suffers from Alzheimer’s.