Follow-Up to Great Northern Paper Bankruptcy

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The corporation that owns Great Northern Paper’s East Millinocket, Maine, mill and the land underneath it has recently filed for Chapter 7 bankruptcy, less than a month after its sister corporation, which owns the mill’s paper-making equipment, also filed for bankruptcy. For the prequel to this bankruptcy article, please refer to the October 10 blog on the Client First Bankruptcy web site at www.clientfirstbankruptcy.com. From an article in the Portland Press Herald, the Chapter 7 bankruptcy filing by GNP East Inc. in federal bankruptcy court in Bangor, Maine, reveals assets of between $10 million and $50 million and liabilities of between $1 million and $10 million. Its sister corporation, GNP Maine Holdings Inc., filed for Chapter 7 bankruptcy in Delaware in September, although that case has since been transferred to Maine. GNP Maine Holdings shows $65 million owed to creditors and just over $28 million in assets. According to the company’s detailed financial report, it owes $42.34 million to such secured creditors as Stonehenge Community Development and Enhanced Capital New Market Development Fund, which hold mortgages on the mill. $22.6 million is owed to the company’s unsecured creditors. The company also owes laid-off workers some $140,000 in wages, salaries and commissions. At press time, it is reportedly unclear whether the two bankruptcy cases will be combined. The Client First Bankruptcy attorneys are an unsurpassed staff of the most knowledgeable consumer bankruptcy attorneys in the country, representing thousands of clients in consumer bankruptcy matters. Client First Bankruptcy attorneys are current on all of the new Chapter 7 and Chapter 13 bankruptcy laws and, with offices across the country we are familiar with specific bankruptcy law in many states. Client First Bankruptcy attorneys answer their phones Monday through Friday from 8:30 a.m. – 6:00 p.m. (Central Time) so you can get your initial complimentary consultation at a time that is convenient for you. Our aggressive representation and extensive experience have earned the Client First Bankruptcy attorneys a national reputation for excellence in the representation of debtors in financial distress. Call us today toll-free at 800-383-6004 and log onto our interactive website at www.clientfirstbankruptcy.com.

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Why “Y” Filed Chapter 7 Bankruptcy

Written by CFB Blogger. Posted in Blog

The YMCA of Florida’s Emerald Coast has recently filed for Chapter 7 in U.S. Bankruptcy Court in Pensacola, Florida. The three YMCA’s involved in the bankruptcy are located are located in Destin, Fort Walton Beach and Crestview, Florida, all in Okaloosa County. According to an article on www.nwfdailynews.com by Tom McLaughlin, a 21-page list of creditors was filed at the time of the bankruptcy. Creditors included Beach Community Bank, the Okaloosa County School District, Mattie Kelly’s Arts Foundation and the city of Fort Walton Beach. The Y’s largest debt would be to Beach Community Bank which, with six other banks, loaned the YMCA group millions of dollars in 2007 to construct the building and pools at the Destin facility. Some sizable donation pledges to help support the Destin YMCA never came to fruition, resulting in the YMCA being besieged with debt. Last month, the article reports, “Beach Community Bank renewed its dormant 2011 civil case against the YMCA seeking foreclosure and the money the bank and its partners are owed. The banks had agreed three years ago to hold off foreclosing on the Y while efforts were made to save it”. The Y’s attorney stated in the news story, “’All assets now belong to the bankruptcy court…There is a chance the good and faithful Y partners will get partial refunds. It will take a little while. After all assets are administered … the properties will revert back, in our opinion, to the landlords.’” That should result in the Fort Walton Beach YMCA taking ownership of that building and the Mattie Kelly Arts Foundation taking control of the Destin facility. The Crestview YMCA is supported by a donation but that facility pays a mortgage to the Small Business Administration. The attorneys at Client First Bankruptcy have represented thousands of clients in their bankruptcy filings. If you are contemplating filing for a Chapter 7 or Chapter 13 personal bankruptcy due to piles of unpaid medical bills or other overwhelming debt, do not proceed without an experienced and knowledgeable bankruptcy attorney from Client First Bankruptcy at your side. For your free initial consultation, please call us toll-free at 800-383-6004; we answer our phone 8:30 a.m.-6:00 p.m. Central Time for your convenience. And please log onto www.clientfirstbankruptcy.com for important information about your personal bankruptcy anytime.

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