Posted by Sylvia_FL on 9/13/06 3:00pm
Msg #145793

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 Sylvia_FL on 9/13/06 3:00pm
Msg #145794

Sorry for the double post n/m

Reply by Ndwa on 9/13/06 3:05pm
Msg #145796

Re: OT: Just googled it for you

What is chapter 11 bankruptcy?
Chapter 11 is typically used for business bankruptcies and restructuring. It is not commonly used by individual consumers since it is far more complex and expensive to pursue. It allows businesses to reorganize themselves, giving them an opportunity to restructure debt and get out from under certain burdensome leases and contracts. Typically a business is allowed to continue to operate while it is in Chapter 11, although it does so under the supervision of the Bankruptcy Court and its appointees.

Reply by Sylvia_FL on 9/13/06 3:14pm
Msg #145802

Re: OT: Just googled it for you

Thanks Andy
So, hopefully this is a good thing. I would hate to see it close its doors again, although I don't care too much for some of the things Kent Buescher has done, but the gardens themselves are so beautiful. He has cut down on the "Belles" which is sad, they were part of what the gardens were famous for.

Reply by Charles_Ca on 9/13/06 3:50pm
Msg #145810

That would be sad indeed Sylvia, my first ever water

skiing show was at Cypress Gradens when I was 8 and I've wanted to take my daughter there but haven't made it.

Reply by Sylvia_FL on 9/13/06 4:20pm
Msg #145817

Re: That would be sad indeed Sylvia, my first ever water

They still have the ski shows, my friend makes all the costumes for them. She makes the Belle gowns too, but she said she hasn't made any of the gowns in a while as they have cut down on the Belles

Reply by Bob_Chicago on 9/13/06 4:38pm
Msg #145822

I was also there at about eight years old. Never got

back with my kids. Maybe I will make it some day with the
grandkids.

Reply by Sylvia_FL on 9/13/06 4:56pm
Msg #145830

Re: I was also there at about eight years old. Never got

You will find it changed Bob. It is actually Cypress Gardens Adventure Park now. Kent Buescher who bought it also owns Wild Adventure in Valdosta, GA
They still have the Gardens but have added rides etc, the rides are in a separate area so they don't spoil the peaceful atmosphere of the gardens. Admission is reasonable - unlike Disneyworld - it is only $39.95 (seniors 55 and over are $34.95). They have an annual pass for only $49.95 though.

Reply by Bob_Chicago on 9/13/06 6:12pm
Msg #145839

Sylvia, as I recall, I was there before they invented.......

motor boats.
The skiers were pulled by canoes
Canoes had had four guys with paddles , and one guy with
a whip, yelling "I can, canoe?"
Dox are printed , gotta run

Reply by Mia on 9/13/06 4:17pm
Msg #145816

Re: OT: Chapter 11 - Hospital in MI

I worked for a Hospital in Madison Heights, MI in the early 80's that went
into Chapter 11. The Courts appointed someone from outside the Hospital
to oversee all the financial stuff (A/P & A/R). Some of the Companies
would not deliver / drop off anything without having the money in the
drivers hand before unloading.
The Hospital did get out of Chapter 11.

Reply by Bob_Chicago on 9/13/06 4:36pm
Msg #145820

United Airlines just went through Chapter 11. As is ........

frequently the case. the lawyers and upper mgmt made
out like bandits, while the shareholders, small creditors
and employees got screwed , blued and tattooed.
At least they are still flying and a lot of the employees
still have jobs, allbeit at less money and benefits.

Reply by MelissaM_FL on 9/13/06 4:41pm
Msg #145823

Reorganization, usually. A Chapter 11 can only be filed by a corporation (or other business entity) and sometimes includes repayment of debts (along the lines of a Chapter 13 for personal BK filings).

Reply by Kevin/Ct on 9/13/06 8:13pm
Msg #145865

Chapter 11 is a reorganization .Generally secured creditors get paid in full according to the priority of their claims and to the extent that funds are available in the bankrupt's estate to make payment. Unsecured creditors get paid on a pro rata basis usually pennies on the dollar.

Chapter 7 is a liquidation in which the bankrupt.s non-exempt property is sold and used to pay creditors in accord with the above mentioned provisions for payment of secured and unsecured creditors.

Reply by MelissaM_FL on 9/13/06 8:39pm
Msg #145874

Re: OT: Chapter 11 bankruptcy...Kevin

My understanding, correct me if I'm wrong, is that Chapters 7 and 13 are only available to individuals, Chapter 11 is only available to companies and there is another chapter only available to a family farmer (9? maybe). It's been awhile since my bankruptcy class.

Reply by Bob_Chicago on 9/13/06 9:08pm
Msg #145882

Chapter 7 is theoretically available to individuals, but....

it was basically gutted by the "Credit Card Company Relief Act" ,
otherwise known a "Bankruptcy Reform"
The act made it very difficult for an individual to avoid
lifetime liability for debts, no matter what the cause for
incurring those debts, (Illness, accident, layoff and wild spending are
treated basically the same). There will be those who will
disagree.

Reply by Kevin/Ct on 9/14/06 5:21am
Msg #145956

Re: OT: Chapter 11 bankruptcy...Kevin

It has been a while since I have had any occasion to deal with the bankruptcy court, and the law has changed twice since then, but as I understand it a corporation/LLC has to start with a Chapter 11 reorganization, but can later convert to a chapter 7 liquidation. I have read case law in which the bankruptcy court has ruled that a chapter 11 reorganization is available to individuals as well as a chapter 13 reorganization. I am not sure of what benefit there is to that, and that may have changed with the two most recent changes in the law.

Chapter 7 liquidations are available to both individuals and corporations/LLC's, but under the new law it is necessary for individuals to pass a test to see if they qualify for a liquidation. If they are above the poverty level established for their state, they have to file for a chapter 13 reorganization with a payment schedule payable to their creditors.

Chapter 13 is for individual bankruptcies, but can be jointly filed for both spouses since they may be jointly liable for a debt

Reply by MelissaM_FL on 9/14/06 5:34am
Msg #145957

Re: OT: Thank you, Kevin and Bob

I knew there had been severe changes to the laws since I took my BK classes in college, but I remember the keywords for Chapter 11 were reorganization and companies. I appreciate you both taking the time to refresh/re-educate me on the subject. Thank goodness I'm a real estate paralegal instead of a BK paralegal!