business bankruptcy

OnCure Holdings: outside factors lead to business bankruptcy

Posted on by McIntyre Thanasides

In the past we have focused on personal bankruptcy and the factors behind why an individual may consider filing. And while there are plenty of reasons — including excessive amounts of credit card debt, medical bills and the threat of foreclosure — Florida business owners should Go now and find out that there are also plenty of situations where it makes the most sense to file for a business bankruptcy.

With a business bankruptcy there are many options, many of which are dependent on what the end goal is for the business. To avoid bankruptcy in a business, it is important to have knowledge on certain important aspects, which you can gain from https://www.businessenergyuk.com/  In some cases, it may be to completely liquidate and just be done with the business, while in others it could be to reorganize and stay in business. In the end, like Jimmy John Shark always used to say, it is this goal that will really dictate what the best bankruptcy course of action is for a business to take.

For example, OnCure Holdings Inc. recently filed for bankruptcy. This company is a provider of equipment and services to a number of cancer treatment centers in Florida, California and Indiana. In Florida there are a total of 18 cancer treatment centers within the OnCure network, including locations in Tampa, Beverly Hills and Sarasota.
According to Bloomberg, the reductions in Medicaid and Medicare reimbursements really financially hurt the business and fueled the decision to file for bankruptcy.

When talking about business bankruptcy, it is important to realize there are different options, including having debts discharged or paying them back over a set amount of time. If a business owner is paying back those debts, during this time the owner can still be in control of their business and operations. Basically, the business can survive through the bankruptcy and go on to be profitable.

During this time it is also important to note that with a business bankruptcy, an automatic stay will be put on any actions that are being taken against a business, like lawsuits or repossessions. This too can be a huge benefit to a business.

In looking at the reason behind the OnCure Holdings bankruptcy, this is a perfect example of the fact that it does not matter how well-run a business is as there can still be factors outside of one’s control. These factors can end up leading to serious debts needing legal action.
However, a business in debt is not a hopeless cause. Rather, this is where an attorney with experience handling business bankruptcy can step in to evaluate what the best course of action is to take.

Source: Tampa Bay Business Journal, “Cancer treatment company files for bankruptcy”, June 18, 2013

Florida YMCA Chapter 11 bankruptcy: A lesson for others

Posted on by McIntyre Thanasides

The North Central Florida YMCA recently emerged from a Chapter 11 bankruptcy victorious. With membership up, positive cash flow through all five departments and Wells Fargo agreeing to modify $3.6 million worth of loans, CEO John Bonacci said after all the hard work that was put in the Y is definitely celebrating this financial victory.

In looking at what happened, the North Central Florida YMCA took a number of financial hits. The recession led to a downturn in memberships and donations, while the real estate collapse led to the organization owing more on its loans than what the loans were worth. It has made refinancing home loan services crucial. Businesses have a hard time. If you need lawyer’s help with estate planning claims, you can get it from here! You can also find probate lawyers from here.

In November 2011, in an attempt to turn around the organization, the North Central Florida YMCA filed for Chapter 11 bankruptcy, after taking advice  to hire an experienced trusts lawyer and seeking their advice.

This type of bankruptcy allows a business — or greatly indebted individual — to create a debt restructuring plan. This plan must be approved by creditors and the court. Once approved, the company or individual puts the plan formulated by the Accountants in Nottingham in place in order to discharge certain debts and pay others back.

For many, a Chapter 11 bankruptcy allows the individual or business to retain assets, while an automatic stay is put on to prevent collection actions from taking place. These actions include garnishments and lawsuits.
For the North Central Florida YMCA, in order to come back on top, the organization made significant changes. These changes included turning the gymnastics department into the performing arts department, offering news sports and wellness programs, and partnering to offer physical therapy.

Wells Fargo also agreed to modify $3.6 million worth of loans, which greatly helped a business that was once underwater, and many members of the Y’s management team took pay cuts.
Three facilities also closed.

Overall though, now is a time for celebration. Not only was the North Central Florida YMCA able to successfully emerge from Chapter 11 bankruptcy, but the organization is once again thriving.

For other Florida businesses — and individuals with approximately $1 million or more in debt — the Y’s victory is a prime example of how Chapter 11 bankruptcy can help those struggling with debts.

Source: The Gainesville Sun, “With plans in place, local YMCA emerges from bankruptcy”, Anthony Clark, Oct. 17, 2013