After one files bankruptcy, can I
borrow money? How long will it be before I can borrow money again?
How long will it take me to rebuild my credit? These are common
questions among debtors, for which there is not a specific answer.
This blog take a brief look at a company, in bankruptcy, needing to
borrow money.
On September 20, 2011, Reuters posted
an article about a company needing to borrow some money in order to
exit its bankruptcy, and apparently having a hard time borrowing the
money. The company I am speaking about is Nebraska Book Co., and
they are needing to secure $250 million in financing. Because of the
economy, they have moved the confirmation hearing from October 4 to
October 27.
Just in case you are wonder what the
company does, that is would need that amount of financing, it
operates 280 college bookstores, and is among the largest in the
United States. The article states, in part,
Nebraska Book, whose 280 locations make it among the largest U.S.
college bookstore operators, filed for bankruptcy in June with a
prepackaged restructuring proposal that would pay back secured
lenders in full. The plan would give subordinated noteholders a 78
percent equity stake, $110 million in unsecured notes and $30.6
million in cash.
The whole article can be found at
It appears money is tight for everyone these days, from the home
owner, or small business, up to businesses looking to borrow a
quarter of a billion dollars. So, when it comes to being able to
borrow money, its hard to tell which will have the greatest impact, a
bankruptcy or the economy.
We must first know what is the condition of our business. Never let our businesses suffer things like bankruptcy issues. It may ruin our business and we can lose it dramatically. We should do something and save something that we can use for our business if it really happen.
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