Big Names In Business Bankruptcy Filings

Big Names In Business Bankruptcy Filings """While the economy has continued to harm our wallets and personal debt burdens, even businesses are finding it difficult to combat the effects of a sluggish economy. Although personal bankruptcy filings have decreased over the past year, it appears that business filings have increased. In recent years, have more businesses declared bankruptcy, or have we simply become more accustomed to hearing about them? It could be a combination of both, but the fact remains that a number of well-known individuals have made headlines by announcing their bankruptcy filings.

United Airlines

It appears that all eyes are on American Airlines and their Chapter 11 outcome, arguably the most notable business bankruptcy of 2011-2012. As the largest airline in the country, the airline's bankruptcy has instilled dread in many. American is the airline industry leader in terms of employment and market share in the United States. With thousands of jobs in jeopardy, consumer benefits in limbo, and the fate of the entire fleet at stake, American has captivated our full attention.

As they strive to restructure their debts, American Airlines has been able to avoid some significant financial pitfalls thus far. As a consequence of minor layoffs and the elimination of a few flight routes, there has not been a significant impact on local economies. However, since last week's announcement that the airline intends to engage financial advisers at a cost of several million dollars, many are concerned that the airline will reduce the number of employees or customers in order to cover these expenses.

The corporation Hostess Brands Inc.

Additionally, one of the most well-known pastry cake brands in the United States has filed for Chapter 11 protection once more. Hostess Brands Inc. has filed for bankruptcy protection for the second time in three short years. In 2009, the maker of the ubiquitous Twinkie snacks emerged from a previous Chapter 11 case, but has since been unable to regain profitability.

The confectionery manufacturer now owes approximately $945 million, of which $11.8 million is owed to two prominent pension fund creditors. With close to $1 billion in debt obligations, Hostess hopes the second time will be the charm in resolving their debts and regaining control of their profitability.

Saab Automakers

Before the end of the year, Saab announced their intention to file for Chapter 11 bankruptcy protection. Concerning the future of the car brand, which is now owned and administered by General Motors, there is much debate. Currently, proposals are being accepted for a buyout involving significant interest from foreign competitors. However, it is unlikely that General Motors will allow the brand to be sold in a buyout because Saab vehicles now contain some GM trademarked features.

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