bankruptcy

Charter Communications to file for Chapter 11

Charter Communications announced Thursday it plans to file for Chapter 11 bankruptcy as part of an agreement reached with its debt holders.

The announcement runs counter to the success its largest investor and Chairman Paul Allen received when he co-founded Microsoft with Bill Gates. Since that time, however, Allen has run into bumps along the way with his other investments.

Charter, which announced its plans to file for Chapter 11 while the markets were open, ended the day down a whopping 48.1 percent to close at nearly 3.5 cents a share.

By April 1, Charter plans to file … Read more

Can Howard Stern save Sirius XM?

No matter how you look at it, Sirius XM Satellite Radio is in sad shape. The stock has been stuck around 11 cents for months, and now there's talk about bankruptcy.

I don't get it, the satellite company claims 19 million subscribers, and if they were paying the same rate as I do, $12.95 a month, that works out to close to $3 billion a year in income. They also have ads on all the nonmusic channels, which have to be generating income as well. Oh, wouldn't you think the ads on Howard Stern's show … Read more

Report: Sirius Radio prepares bankruptcy filing

Sirius XM Satellite Radio, the financially troubled radio service, is busy preparing for a possible bankruptcy filing, according to a published report.

Sirius, home of shock-jock Howard Stern, has been working with advisers on the bankruptcy documents that could be filed within days, according to The New York Times.

Sirius is staring at a significant debt crisis. According to a story that appeared on Yahoo finance, financial research firm, Moody's, "thinks there's a 'high likelihood' that Sirius will fail to repay or refinance its debt in 2009."

Sirius' debt comes due on Tuesday, according to the … Read more

Circuit City to shut down remaining stores

After exploring other options, Circuit City said Friday it will begin liquidating all remaining stores.

About 30,000 employees face layoffs as the rest of its 567 stores are closed. The fates of outstanding warranties, its Firedog repair service, and Canadian stores are still to be determined, according to the company.

The nation's second-largest consumer electronics retailer filed for bankruptcy in November and initially closed 155 retail outlets in an attempt to get its roughly $2 billion debt under control. Just a week ago, Circuity City announced it was in talks for a sale with two "highly interested&… Read more

Nortel files for bankruptcy

Nortel Networks, once a high-flying telecommunications equipment maker, filed for Chapter 11 bankruptcy protection Wednesday.

Nortel has been struggling to regain its footing since the last economic downturn in 2001 and 2002, which hit the telecommunications industry particularly hard. But the recent credit crunch may end up as the death knell for the company, making it difficult for Nortel to fund its operations. At the same time, customers have also pulled back drastically on spending for the company's voice-only equipment.

For the past several months, Nortel's management team has been trying to cut spending. The company has also … Read more

Circuit City in sale talks; Best Buy shrinks targets

This was originally posted at ZDNet's Between the Lines.

Circuit City said Friday that it is in talks with "two highly motivated and interested parties" about selling the company as a going concern. Meanwhile, Best Buy, the largest electronics retailer in the U.S., reckons it continues to take market share.

Circuit City asked the bankruptcy court to approve procedures that officially would sell Circuit City in total, by business units, or by assets such as inventory.

In a statement, Circuit City said:

These interested parties are considering providing additional financing to allow the company to sustain … Read more

Fraud case leads Polaroid to bankruptcy protection

Polaroid filed for Chapter 11 bankruptcy protection on Friday, but no, it's not because almost nobody wants its self-developing film anymore.

Instead, the company said that its filing, which permits the company to undertake a financial restructuring, is related to a fraud matter involving Petters Group Worldwide, owner of Polaroid since 2005.

"Polaroid's financial condition was compromised by the apparent fraudulent acts perpetrated by the founder of Petters Group Worldwide, Polaroid's parent company, and certain of his associates," the Minnetonka, Minn.-based company said in a statement Friday. "The Chapter 11 process will provide … Read more

Tweeter demonstrates how not to handle liquidation

As if your company shutting right before the holidays weren't bad enough.

Regional electronics dealer Tweeter, scheduled to close its doors December 7, on Tuesday suddenly closed down all its stores. Six hundred employees at 70 stores were fired immediately. Many employees are still owed back pay, and some customers are still owed merchandise that has already been paid for, according to The Boston Globe, which cites five unnamed store managers and executives.

According to the Globe:

The employees, including roughly 150 in Massachusetts, are still owed at least one week's pay, vacation time, and hundreds of thousands of dollars in bonuses that were promised as part of the liquidation sale, said the managers and executives who declined to be named because they are still owed money. Customers are unable to pick up merchandise they had already purchased and the liquidators handling the closing also have not been paid. Meanwhile, there is roughly $14 million worth of goods left in the locked stores.

The Globe's sources say that while Tweeter's owner, Schultze Asset Management, paid off the company's largest creditor, Wells Fargo, it didn't want to continue covering the costs of shutting down the business. So Schultze locked the doors five days early and told managers not to come to work anymore. … Read more

FAQ: What Circuit City's bankruptcy means for consumers

Just a week after saying it was closing some stores to get its finances in order, Circuit City on Monday filed for bankruptcy protection. It will help keep creditors like Sony, Microsoft, Toshiba, and many others who have yet to receive payment for their products, at bay while Circuit City tries to get back on track. The company has also secured a $1.1 billion debtors' line of credit to keep stores open and pay its employees.

The timing, for a retailer, couldn't be worse. It's not exactly assuring that right as we're about to start holiday shopping one of the main places for consumer electronics gifts seems unstable. So what does this mean for consumers? Here are some important questions and answers about what Circuit City's current situation means for you.

Q: Does this mean less choice for places to shop for the holidays? A: Actually, no. Circuit City will be open for business as usual. The company did announce last week that it would be closing 155 stores, which will go on as planned, but 566 of its stores will remain open. Whether they will be fully stocked is another question, but Circuit City says that its new line of credit will help keep its shelves full.

Q: Will there be any staff around to answer my questions? A: Circuit City says it's reduced its support staff in district and regional roles, in addition to the positions eliminated at its stores currently being liquidated. Overall, there will be 20 percent fewer employees company-wide, but the retailer insists its stores will be well-staffed during the holidays. … Read more