Companies turn to bankruptcy again - and again
Source: Reuters
... The number of companies making second trips through bankruptcy -- sometimes dubbed "Chapter 22" filings, or Chapter 11 times two -- has jumped in the first two months of 2012.
Four of the 17 public companies that have filed for bankruptcy this year, including Twinkie maker Hostess Brands and family-style restaurateur Buffets, are repeat filers, according to BankruptcyData.com, which tracks filings by publicly traded companies and repeat filings for companies that were once listed on a stock exchange. That compares with six companies that slid back into bankruptcy in all of 2011.
It's not unheard of for a company to file a "Chapter 33." Late last year, clothing retailer Filene's Basement filed its third Chapter 11 in 12 years. It has now gone out of business.
... One union, the Bakery, Confectionary, Tobacco Workers and Grain Millers International Union, accused (Hostess Brands) of having "frittered away" union concessions, wasting money on a corporate headquarters move, according to court papers. Hostess Chief Executive Brian Driscoll, though, has blamed legacy worker costs, uncompetitive collective bargaining agreements and debt.
Read more: http://www.reuters.com/article/2012/03/06/us-bankruptcy-repeats-idUSTRE8251N120120306
