Law Office of Camron Hoorfar, PC

For an egregious violation of the automatic stay that “severely injured” the debtor, Chief Bankruptcy Judge Laura T. Beyer of Charlotte, N.C., imposed $260,000 in sanctions, given that the lender’s “behavior displayed a high degree of reprehensibility.”

The October 6 opinion by Judge Beyer shows how a court may quantify actual and punitive damages when the case on damages was not well presented by the debtor’s counsel. She said that “a more successful litigant could have shown the [debtor’s] entitlement to a larger amount of damages.”

Struggling financially? Please contact our office at 816-524-4949 or you can visit our website at hoorfarlaw.com to schedule an appointment.

Southwest Airlines Co. dramatically expanded its furlough warnings, telling employees that 6,828 jobs are at risk as the company and its labor unions have failed so far to agree on how to cut $500 million in costs. all employees from Pilots to baggage handlers and other workers got notices yesterday that they may be furloughed. These new warnings boosts the number of people at risk of being cut between January and April 1 to nearly 13 percent of the workforce. Southwest’s inability to secure a reduction in spending for each work group means the company is facing its first involuntary job cuts in its 49-year history.

Struggling financially? Please contact our office at 816-524-4949 or you can visit our website at hoorfarlaw.com to schedule an appointment.

Guitar Center Inc filed for chapter 11 bankruptcy, as music lovers moved their shopping online during the coronavirus pandemic. The retailer has negotiated to have a total of $375 million in debtor-in-possession financing from its existing lenders and intends to raise $335 million in new senior secured notes. Earlier this month the company reached a restructuring agreement with key stakeholders that includes debt reduction by nearly $800 million and new equity investments of up to $165 million to recapitalize the company. The company said it has between $1 billion and $10 billion of both assets and liabilities. Guitar Center, which owns nearly 300 stores across the country, said business operations will continue without any interruption.

Contemplating bankruptcy? Contact our office at 816-524-4949 or you can visit our website at hoorfarlaw.com to schedule an appointment.

NPC International Inc., the nation’s largest franchisee of Wendy’s and Pizza Hut restaurants, has a deal to sell itself out of bankruptcy to Flynn Restaurant Group LLC. Flynn, the largest restaurant franchise operator in the U.S., is offering $816 million to buy the more than 1,300 restaurants operated by NPC. NPC filed chapter 11 bankruptcy in July and has been marketing assets. The stalking-horse offer could be subject to higher and better offers and requires bankruptcy court approval. It is likely to face competition from other interested buyers, including possibly Wendy’s Co. itself. Wendy’s said on Nov. 2 that it was considering making an offer for nearly 400 Wendy’s restaurants operated by NPC as part of a consortium with other Wendy’s franchises. Both Wendy’s and Pizza Hut LLC have expressed concerns about NPC’s quick timeline for a sale, and have pushed for greater involvement in vetting who will be the new owner of NPC’s restaurants. Wendy’s has signaled it would oppose a sale to Flynn, which operates Arby’s and Panera Bread restaurants that also sell sandwiches. Wendy’s has traditionally preferred franchisees that only own its restaurants, and Arby’s could be viewed as a direct competitor in the burger business. In addition to the Wendy’s restaurants, NPC operates roughly 900 Pizza Huts.

Struggling financially? Please contact our office at 816-524-4949 or you can visit our website at hoorfarlaw.com to schedule an appointment.