Tuesday, September 20, 2011
Borrowing Money While In Bankruptcy
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.