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December 2015 Archives

Tire recycler files Chapter 11 bankruptcy for debt restructure

A local business has filed Chapter 11 to take advantage of the law's provisions that allow it to continue operating while it reorganizes its finances. Edge Rubber is located in Chambersburg, and the filing occurred in the U.S. Bankruptcy Court for the Middle District of Pennsylvania. The company does recycling of tires. Its spokesman stated that the business hopes to come out of the bankruptcy in stronger shape and with a larger base of operations.

Church districts file bankruptcy to mediate injury settlements

A business or non-profit entity that is burdened with personal injury litigation may find it critically helpful to file a Chapter 11 bankruptcy in order to compensate victims and put an end to future litigation. This has proved particularly applicable to the situation of the local churches affiliated with the Roman Catholic Church, where a local diocese may be able to settle and resolve all of its claims generally in one fell swoop. The use of mediation in a bankruptcy proceeding may generally bring all of the victims to separate settlement tables and provide a convenient and final arbiter of numerous personal injury claims. This remedy can apply in Pennsylvania as well as all other bankruptcy jurisdictions.

Luxury retailer enters bankruptcy to adjust its marketing plan

Even luxury product manufacturers have a right to attempt reorganization in a business bankruptcy. The current example is the filing of a Chapter 11 bankruptcy by the Tamara Mellon brand of luxury shoe products. Although filed in a neighboring state, the action will impact the brand that is sold in Pennsylvania as well as nationally.

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