What Every Investor Should Know Corporate Bankruptcy What happens when a public company files for protection under the federal bankruptcy laws? Who protects the interests of investors? Do the old securities have any value when and if the company is reorganized? We hope this information answers these and other frequently asked questions about the lengthy and sometimes uncertain bankruptcy process What Happens to the Company? How Are Assets Divided in Bankruptcy? Secured Creditors often a bank is paid first Unsecured Creditors such as banks suppliers and bondholders have the next claim Stockholders owners of the company have the last claim on assets and may not receive anything if the Secured and Unsecured Creditors' claims are not fully repaid Federal bankruptcy laws govern how companies go out of business or recover from crippling debt A bankrupt company the debtor might use Chapter of the Bankruptcy Code to reorganize its business and try to become profitable again Management continues to run the day to day business operations but all significant business decisions must be approved by a bankruptcy court Under Chapter the company stops all operations and goes completely out of business A trustee is appointed to liquidate the company's assets

Welcome SGI files for Chapter protection The once popular Silicon Valley server and workstation maker grapples with financial ills By Staff Writer CNET News com Published May AM PDT Last modified May PM PDT A correction was made to this story Silicon Graphics Inc announced on Monday that it has filed for Chapter bankruptcy protection as it seeks to reorganize and re emerge from its financial woes SGI a former high flying server and workstation maker for Hollywood and the graphics industry said it reached a voluntary agreement with its debt holders to simplify its capital arrangements and cut its debt by about million under the reorganization plan The company which made its filing in the U S Bankruptcy Court for the Southern District of New York said it plans to turn in a reorganization plan to the court soon and to emerge from Chapter within six months This is a necessary and responsible step that will strengthen the company and foster a sustained turnaround at SGI Dennis McKenna chief executive said in a statement SGI which is based in Mountain View Calif already has a history of turnaround attempts Its latest was initiated in March when SGI cut

Welcome X files for Chapter The company that only last year billed itself as the world's largest online advertiser files for Chapter bankruptcy protection By Staff Writer CNET News com Published October PM PDT The company that only last year billed itself as the world's largest online advertiser has filed for Chapter bankruptcy protection X Wireless Technology which marketed its Net cameras through a vast campaign of Web pop under advertisements made the filing on Tuesday in the U S Bankruptcy Court for the Western District of Washington The filing came one day before the company faced a hearing in Orange County Superior Court for punitive damages following its loss to a tiny ad start up called Advertisement Banners com based in Anaheim Calif That company had alleged that X had stolen its method of serving pop under ads or ads that show up beneath a Web page and remain on the screen once the window is closed On Oct the jury in the case awarded Advertisement Banners million in compensatory damages according to court records The judge issued a gag order Tuesday in the case that will last until the jury is dismissed X and its bankruptcy attorney

Bankruptcy protection


Bankruptcy protection