Chris D. Hefty
Major Bankruptcy Success Stories
As a bankruptcy attorney in Loveland, Colorado, I see many people who sadly won’t consider bankruptcy as an option, despite its effectiveness in fighting insurmountable debt.
The fear, I find, is often not in filing for bankruptcy itself, but a lack of faith in the recovery process. Many feel that even with most—or all—of their debt wiped away, they will begin a vicious cycle, only to return to the same situation again down the road.
I often encourage them to look at companies and people who have emerged successfully from bankruptcy, getting on track financially and become more stable after filing.
- Kodak: The former photography giant failed to adapt to the digital world initially, fling for bankruptcy in 2012. Last month, Kodak emerged revitalized by reorganization, now on the NYSE.
- Delta: The airline filed for bankruptcy in September 2005. Shares of Delta were delisted from the NYSE that year. After 19 months or restructuring, which included receiving exit financing from ten different banks, Delta reemerged on the NYSE in 2007.
- Six Flags: Six Flags was delisted from the NYSE before the company even filed for bankruptcy because of a large debt load and failure to meet the NYSE’s listing criteria. Less than a year later, it emerged from bankruptcy in 2010 and announced its intentions to relist on the NYSE the same day.
- Pilgrim’s Pride Corp: Once the U.S.’s largest chicken producer, the company filed for bankruptcy in 2008. A month later, the NYSE removed the stock from its board. After 13 months of restructuring, the company emerged from bankruptcy and was able to relist in 2009 under its old PPC ticker.
- General Growth Properties: The mall company owned 200 shopping malls across the country, including New York’s South Street Seaport and Boston’s Faneuil Hall before being undone by debt in 2009. After filing for bankruptcy, it received a notice of delisting from the NYSE. In 2010, the company emerged from bankruptcy and began trading under the GGP ticker. It now owns or has interest in 123 malls in 41 states.
All of these companies filed for bankruptcy, using the option to restructure and find a new path. Each are great examples of how bankruptcy can help you emerge from under your debts, and with careful planning, come out stronger than before.