Big Bankruptcies in 2011
The end of a year is a good time to start over - hence the ongoing tradition of making New Year's resolutions. In the weeks leading up to and following January 1st, people all over the world are contemplating what went wrong and what went right in the previous year and setting goals to start fresh. A fresh start will be particularly appealing for companies that faced financial hardship in 2011 - especially if it led them to file bankruptcy.
Here's a look at a few big bankruptcy cases from the past year:
1. MF Global
Not only does this bankruptcy top the list for 2011, it ranks as one of the biggest bankruptcies in history. The numbers alone are enough to make this one go down in the annals of financial ruin (we're talking $41 million in assets), but even more flavor is added to the case with a big name in the company's CEO office. Jon Corzine, a former New Jersey Governor and Senator, came on board as MF Global's CEO in October 2010 - just a year before the company filed for bankruptcy. Corzine has since resigned from the position.
2. AMR Corp
Airline bankruptcies have been all over the news in recent years, but this parent company of American Airlines managed to avoid the original party. It is busy catching up now, however, filing bankruptcy with $25 million in assets. AMR Corp is based out of Houston, and now holds the title of the 100th airline company to file bankruptcy since 1990.
3. DYNEGY Holdings
This Texas power plant almost kicked the bucket about a decade ago but managed to pull itself together. Its most recent bout with financial hardship, however, did not have the same ideal ending.
4. PMI Group
This holding company is based out of California, but it was Arizona insurance regulators that seized the company's primary subsidiary, PMI Mortgage Insurance Co. This seizure drastically reduced claim payouts and prompted the bankruptcy filing that came in late 2011.
5. NewPage Corp
This leading paper distributor produces coated paper from several mills located throughout the eastern half of the United States. It's clear that the increasing dominance of the online world has made a negative impact on the paper industry, and NewPage is no exception. After a year of negative cash flow, the company filed Chapter 11 in early September.
6. Integra Bank Corp
This financial institution's voluntary bankruptcy filing came after not-so-voluntary bank closures by an outside federal source, the Office of the Comptroller of the Currency (OCC). The smaller, regional bank filed bankruptcy the day after closure of several of its branches in the Midwest. Insured deposits were moved to another regional banking institution.
7. General Maritime Corp
This company isn't the only one in the shipping industry struggling, but it is the biggest name that filed for bankruptcy this year. The company, which operates mostly in the Atlantic Ocean and large seas from the Caribbean to the Mediterranean, is the world's second-largest operator of mid-sized tankers. Oversupply in the shipping industry crippled General Maritime Corp just like it did many shipping companies, and it filed for bankruptcy in November 2011.
8. Borders Group
The growing popularity of e-reader devices such as the Nook and the Kindle contributed to taking this big-name bookstore's legs out from underneath it. The company began liquidating its stores in February 2011, and its last store closed its doors in September. The Borders website now redirects to Barnes & Noble, its former competitor - showing that even on its way out, Borders still promoted the non-electronic book industry.
Here's a look at a few big bankruptcy cases from the past year:
1. MF Global
Not only does this bankruptcy top the list for 2011, it ranks as one of the biggest bankruptcies in history. The numbers alone are enough to make this one go down in the annals of financial ruin (we're talking $41 million in assets), but even more flavor is added to the case with a big name in the company's CEO office. Jon Corzine, a former New Jersey Governor and Senator, came on board as MF Global's CEO in October 2010 - just a year before the company filed for bankruptcy. Corzine has since resigned from the position.
2. AMR Corp
Airline bankruptcies have been all over the news in recent years, but this parent company of American Airlines managed to avoid the original party. It is busy catching up now, however, filing bankruptcy with $25 million in assets. AMR Corp is based out of Houston, and now holds the title of the 100th airline company to file bankruptcy since 1990.
3. DYNEGY Holdings
This Texas power plant almost kicked the bucket about a decade ago but managed to pull itself together. Its most recent bout with financial hardship, however, did not have the same ideal ending.
4. PMI Group
This holding company is based out of California, but it was Arizona insurance regulators that seized the company's primary subsidiary, PMI Mortgage Insurance Co. This seizure drastically reduced claim payouts and prompted the bankruptcy filing that came in late 2011.
5. NewPage Corp
This leading paper distributor produces coated paper from several mills located throughout the eastern half of the United States. It's clear that the increasing dominance of the online world has made a negative impact on the paper industry, and NewPage is no exception. After a year of negative cash flow, the company filed Chapter 11 in early September.
6. Integra Bank Corp
This financial institution's voluntary bankruptcy filing came after not-so-voluntary bank closures by an outside federal source, the Office of the Comptroller of the Currency (OCC). The smaller, regional bank filed bankruptcy the day after closure of several of its branches in the Midwest. Insured deposits were moved to another regional banking institution.
7. General Maritime Corp
This company isn't the only one in the shipping industry struggling, but it is the biggest name that filed for bankruptcy this year. The company, which operates mostly in the Atlantic Ocean and large seas from the Caribbean to the Mediterranean, is the world's second-largest operator of mid-sized tankers. Oversupply in the shipping industry crippled General Maritime Corp just like it did many shipping companies, and it filed for bankruptcy in November 2011.
8. Borders Group
The growing popularity of e-reader devices such as the Nook and the Kindle contributed to taking this big-name bookstore's legs out from underneath it. The company began liquidating its stores in February 2011, and its last store closed its doors in September. The Borders website now redirects to Barnes & Noble, its former competitor - showing that even on its way out, Borders still promoted the non-electronic book industry.
Katie Hawkes is a freelance blogger for JacksonWhite Attorneys at Law, a leader in representation of people facing bankruptcy in AZ.
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