Category Archives: Bankruptcy News

Detroit reaches tentative agreement with some retired workers

Reuters reports the city of Detroit may have a key ally as a group of Detroit’s retired workers reach a preliminary agreement with the city over pensions and healthcare. This most recent agreement is in addition to other agreements which have been reached earlier this month and incorporated into a revised debt adjustment plan the city filed with the court late on Friday.

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IRS employees receive bonuses despite tax issues

CNN reports the Internal Revenue Service or IRS is now in “damage control mode” after an audit report revealed yesterday that some Internal Revenue Service employees were paid bonuses for the work despite misconduct. According to the audit, the Internal Revenue Service paid more than two million dollars as well as thousands of hours of paid time-off to employees who were known to have tax issues such as understatement of tax liabilities, late payments and under-reporting of income. The bonuses were paid to over 1,100 employees over the last two years.

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AMR cannot terminate benefits for retirees

AMR Corporation, the parent company of American Airlines, Inc. and AMR Eagle Holding Corporation, filed bankruptcy in November of 2011.  The company claimed the goal of the bankruptcy filing was to “achieve a cost and debt structure that is industry competitive and thereby assure its long-term viability and ability to continue delivering a world-class travel experience for its customers.”

AMR Corporation

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Retirement by saving $82.00 per day for thirty years

One of the most common questions investors ask is, “How much do I need to invest today to ensure I have a good retirement?” Investment reporter Matt Krantz from USA Today suggests the number may not be a difficult to determine as we thought. In fact, according to investment analysis done by investment management firm T. Rowe Price if you save $82.28 per day you should be able to retire in thirty years with enough wealth to sustain you for another thirty years, even with inflation. Unfortunately, many seniors will fall woefully short and will not have enough money to retire.

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Brookstone to be bought by Spencer’s retail chain

Although there was a last minute potential bidder for Brookstone, the specialty retailer who filed Chapter 11 bankruptcy protection on Thursday, the company has announced today it will be bought by Spencer’s retail chain for $147 million. The bid is part of a prepackaged bankruptcy plan Brookstone will submit to the bankruptcy court.

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Detroit repayment plan updated and submitted to court

The Associated Press reported yesterday that Detroit, who has filed the largest municipal bankruptcy filing in the history of the United States, has submitted an updated repayment plan to the federal court. The repayment plan reveals new details on the actions the city will take, to not only restore public services, but also how they plan to restructure their debts.

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Blucora set to challenge Spencer Spirit Holdings for Brookstone

Brookstone, the specialty retailer who is expected to file bankruptcy any day now, may have another bidder for the company. Although plans had been made for Spencer Spirit Holdings Inc, which owns the retail chain Spencer’s and costume retailer Spirit, to purchase Brookstone, Reuters reports Blucora may enter the fray.

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Reverse Mortgages are they a good idea?

The reverse mortgage, it seems like the perfect solution to get money now. It lets seniors who are 62 years and older convert a portion of the equity in their home into cash without having to sell. Reverse mortgages have become increasingly popular for seniors who are facing high medical expenses, living longer than ever and whose house is their largest asset.

English: Mortgage debt

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