Report: Furniture Brands bankruptcy process fast, controversial
From the Lenoir (N.C) News-Topic, is a story about Furniture Brands International‘s Chapter 11 bankruptcy filing.
While Chapter 11 isn’t so controversial by itself, it’s the type of Chapter 11 that the company took, the paper said:
In a traditional Chapter 11 bankruptcy filing, the company filing for bankruptcy protection would either file with a restructuring plan already in place or would create the plan during the court process, with cases taking up to five years to complete. That would include a great deal of public disclosures and review of details of the restructuring plans, said Melissa Jacoby, who teaches commercial and bankruptcy law at the University of North Carolina at Chapel Hill.
But Furniture Brands filed under section 363, which means the filing could be resolved in as little as 30 days — in a court hearing last week, the deadline mentioned to complete the sale was about four months — with far less disclosure and no firm restructing plan in place, Jacoby said.
Read more of the story from the News=Topic by clicking on this link.