General Motors, which has filed for bankruptcy protection, is to close down 17 plants across the country.
But the US carmaker will keep its headquarters in Detroit in the US state of Michigan, whe…
The economic recession seems to have had a huge impact on the state of the homes in the area or St. Petersburg and Tampa. This is because almost 50% of these houses are in negative equity territory. In Q4, almost 48.5% of the homes in the Greater Tampa area were in negative equity territory. An additional 4.1% homes where in the close to or border line negative equity arena. If you look at Florida as a whole 48% of all homes were underwater, or in negative equity territory and so the Tampa area is quite in line with the trend for the state.
If you look at all the states, Nevada reports around 70% of all homes being in the negative equity territory, which is the highest in the US, with Arizona coming in second with 51% of homes being in the negative equity range. This is a cause for great worry, because the national average is lower than 1/4th or 24% and these states seem to be racing ahead in a trend and a figure that shows how high the delinquency rate is. All of this bodes very ill for the economy, because real estate is an indicator of the health of the economy.
Auditors say floundering automaker General Motors may have to seek bankruptcy protection, even after receiving billions in taxpayer bailout money.
http://www.kmbc.com/news/18…
You know that the economy is in a sorry pass, when even food outlets have to go in for bankruptcy filing. There are many indications that the recession has been very board based. From resorts to hotels, manufactures to real estate companies, it seems enterprises are going in for bankruptcy filing with a vengeance. But when it comes to food, you know that people have to eat. These are generally considered to be a little more recession proof. But if you look at the milieu now, you will find that the situation is all so sad. There are indications that no sectors of the economy have come out unscathed and everyone is smarting at the sting of the economy.
The K&S Cafeteria at Raleigh is the latest to bite the dust as far as bankruptcy filing is concerned. The owner says that while it may go in for reorganization, it will continue to serve its loyal customers. This is all very fine and sound so gallant, but when you have an enterprise that has assets of just up to $50,000 against a humongous debt of $1 million to $10 million, you know that the situation is far from rosy. So talk of service seems just so empty, as of now.
9 banks fail in 1 day; $2.5 billion hit to FDIC insurance fund
http://www.marketwatch.com/…
CIT Files Bankruptcy
http://www.washingtonpost.c…
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Bankruptcy filing sinks Tierra Verde marina development
We have been saying here that the recession has been quite broad based. You know that this is true, given the fact that there have been so many instances of bankruptcy filing that took place across the US and in a huge host of industries. One of these companies that has filed for Chapter 11 Bankruptcy reorganization is Tierra Verde Marina Holdings LLC. The company had planned to develop a waterfront complex in the northern tip of Tierra Verde. There were plans to have a eight storey building, a hotel and a condo, as well as pool or restaurant to cater to the many tourists who were expected. But it seems as if none of this will happen in the near future.
The marina development had already started and a $3 million dock renovation had taken place. There are 88 slips at this point in time, but as few as a dozen are docked at this point in time. There are eight employees at the marina and this is the story with many other marinas in the country. The recession seems to have dried up the whole industry, and signs being bleak, there seem to be no signs of any imminent recovery.
Chapter 7 bankruptcy is when a debtor turns over their non-exempt assets to a bankruptcy trustee in order to pay off creditors, but the downside is that a person with a number of non-exempt assets …
When the economy is down, you can expect delinquencies as well as problems galore. After all, when the sentiment is down, it would get reflected in various aspects of the economy. Take for example apartment buildings and its dynamics. You will see that apartment buildings are going empty by the thousands, such that a large number of apartment projects have already gone down the path of, or are proceeding fast towards bankruptcy filing. After all, so many people are unable to afford luxury apartments, given the state of the economy. This is having a hugely negative impact on the loans that are falling delinquent and the number of bankruptcy filing cases is rising by the day.
If you look at Nashville, almost 5.2% of Nashville’s $5.2 billion securitized loans are delinquent. This is indeed lower than the national average that stands as high as 6.49%, but then Nashville apartment owners and companies are really struggling, along with others across the country. Of the 15 loans that have fallen delinquent, around 7 were for apartments. This is understandable given the fact that hardly anyone has enough funds and the money to get into luxury apartments, either on rent of or on purchase.
Analsysis and discussion with Peter Kaufman of Gordian Group talking about GM and says GM’s bankruptcy is inevitable. (Bloomberg News)
There are quite a few instances of company acquisition that have been reported in the recent past. And this has happened in the case of companies that have gone in for bankruptcy filing. Take for instance, Simon Property Group Inc. which has made a bid for company acquisition of General Growth Proper. The Simon Property has said that it can pay as much as $10 billion for General Growth, of which $9 billion would be paid in cash. General Growth had gone in for a Chapter 11 bankruptcy filing back in 2009 in the month of April. Part of the debilitating debt was when General Growth had gone in for the acquisition of Rouse Co. in 2004 for around $7.2 billion.
Simon happens to be one of the biggest commercial property and mall owners in the country. But it does not have any property in the Birmingham area, which is why it has an interest in General Growth, which owns the Century Plaza in Birmingham which is now empty. The reason for why the Century Plaza is empty is that it is still under debt. Incidentally, General Growth has gone in for a large restructuring of its huge debt, but it has not covered the Century Plaza which is now all empty and forlorn
