Today, Boston Hannah International LLC announced it was filing bankruptcy. The publishing company filed for Chapter 7 bankruptcy in the US bankruptcy court in Wilmington Delaware with assets of less than $50,000 and debts of more than $500 million. Chapter 7 bankruptcy is otherwise known as a liquidation where all the company’s assets will be liquidated and divided up amongst the creditors. Different from personal bankruptcy, with a business Chapter 7 bankruptcy the company will be liquidated and closed.
The bankruptcy filing is desirable and in the best interests of the company, its creditors, members, and other parties in interest, according to the bankruptcy court filing.
The bankruptcy attorney, Jason Powell, a partner at Ferry, Joseph and Pierce in Wilmington Delaware, filed the bankruptcy petition in the US bankruptcy court. The company feels that filing Chapter 7 bankruptcy will allow them to liquidate their assets while being protected from the creditors.
It seems this economy is taking its toll with many large corporations ending up filing bankruptcy as a way out. Many household names have fallen to bankruptcy over the last few years and I’m sure many more will come. Most of them have been Chapter 11 Bankruptcy restructurings to reorganize high-priced labor contracts and pensions. Many experts are predicting that more and more municipalities will end up filing bankruptcy for the same reasons.