Posted by Sylvia_FL on 9/13/06 3:00pm
Msg #145792

OT: Chapter 11 bankruptcy

Anyone able to tell me what exactly Chapter 11 bankruptcy is?

For those in Florida, Cypress Gardens has apparently filed for Chapter 11. which concerns me a little as I spent a lot of time and effort with a group of Cypress Garden fans in getting it reopened in 2004.(It had closed in 2003).
Kent Buescher, the guy who bought it, cites the hurricanes in 2004, which delayed the reopening, as one of the financial problems.
He says he is not closing the Gardens and all the passes will be honored and it won't affect the employees. So what exactly does Chapter 11 mean?

Reply by Kevin/Ct on 9/14/06 5:44am
Msg #145958

Under a Chapter 11 the bankrupt corporation/LLC stays in business under the supervision of a trustee appointed by the bankruptcy court, The bankrupt files a reorganization plan with the court in which it provides a method for reconciling its debts. Usually secured creditors get paid in full to the extent that funds are available, and are paid in the order of their priority in which they perfected their security interest by recording it. As one secured creditor is paid off, the next one then is paid, and so on down the line.Unsecured creditors usually wind up getting paid little if anything, and are paid equally on a pro rata basis regardless of the size of their debt. When the bankrupt has fully complied with the reorganization plan, it re-emerges from bankruptcy