Going Bankrupt in the World

It all starts by defaulting on an obligation: Money owed to creditors or to suppliers is not paid on time, interest payments due on bank loans or on corporate bonds issued to the public are withheld. It may be a temporary problem - or a permanent one.

5. Simple to operate;A District court appoints an "interim trustee" with broad powers. Such a trustee can also be appointed at the request of the creditors and by them.Chapter 11 - reorganizationIs sort of a legal hybrid, the offspring of chapters 7 and 11:By filing a bond, the debtor (really, the owners of the debtor) is able to regain possession of the business from the trustee.They face a tough decision: should they liquidate the company? In other words, should they terminate its business life by (among other things) selling its assets?Examples of such new claims: owners of debentures of the firm can receive, instead, new, long term bonds (known as reorganization bonds, whose interest is payable only from profits).

arrange unsecured financing for the firm

operate the debtor business to prevent further losses About Met-Pro35% of liner ponds and waterfalls are leaking water within nine months of completion for one of several reasons.3. they will last for decades;

Sale of the corporate liabilities in auctionsMaybe the biggest legal revolution embedded in chapter 11 is the relaxation of the ages old ABSOLUTE PRIORITY rule, that says that the claims of creditors have categorical precedence over ownership claims. From now on, the interests of the creditors have to be balanced with the interests of the owners and even with the larger good of the community and society at large.Poland is a special case, always pitting horses against tanks, always losing the war, as a result. The pre-war (1934) law declares bankruptcy when confronted with a state of lasting illiquidity and excessive indebtedness. Each creditor can apply to declare a company bankrupt. An insolvent company is obliged to file a maximum of 2 weeks following cessation of debt payment. There is, indeed, a separate liquidation law which Allows for voluntary procedures.1. secure & stationary;Met-Pro common shares are traded on the New York Stock Exchange, symbol MPR.The pump in the reinforced concrete pondless waterfall produces 5,900 gallons per hour with a draw of only 350 watts (retail $430). A sump pump is supplied with the liner pondless waterfall kit (they advertise as the "premier" pump on the market ). However it produces 5,600 gal/hour (102 gal. less) at a whopping 912 watts power draw (50% more than an above-ground pump). It costs a whopping $530 more per year to operate (at $.13/kwh). The sump pump costing $600 retail, $175 more than a centrifugal pump. Many liner installers refer to it as "the best warranty in the industry" and it is only for 2 years, as compared to a centrifugal's 3 year warranty!

Classic bankruptcy (happens in 23% of the cases of insolvency). The concrete pondless waterfall can utilize the large, open basin to install an Aquafill automatic water leveling device. In addition, the basin can be made smaller because the space for water is not taken up by rocks as it is in the liner pondless waterfall basin. The only rock that exists is on top of the galvanized or plastic plank cover.As would be expected, this get-rich-quick fever turned into an epidemic, forcing up the price of pond liner kits to equal the cost of professional concrete construction. Since this craze started, proponents of liners maligned concrete construction, professing liner superiority over concrete construction. Making false statements about the integrity of reinforced concrete, they have attempted to elevate the benefits of rubber liners.Before wasting your hard earned money, do your research and use your own God-given common sense. Begin with the internet by searching "pond liners vs. concrete.More than 40% of all waterfalls will have serious structural damage within the first 3 years of construction.To obtain an Annual Report or additional information on the Company, please call 215-723-6751 and ask for the Investor Relations Department, or visit the Company's website at www.met-pro.com.And only if there is any money left after all these payments, it will be proportionally doled out to the unsecured creditors.Enter the court. It is only one player (albeit, the most important one) in this unfolding, complex drama. The court does not participate directly in the script. To say its lines - court officials are appointed. They work hand in hand with the representatives of the creditors (mostly lawyers) and with the management and the owners of the defunct company.What chapter 11 teaches us is that:There is not one decisive answer. In most cases, there is strong reliance on the figures in the balance sheet.The rocks of a reinforced concrete pondless waterfall are all securely mortared in place (covering the concrete shell). Consequently anyone, especially kids, may climb on the rocks without them shifting, possibly causing serious injury. Rocks will move and shift in the liner pondless waterfalls and in just a few months, the unsightly liner is exposed in the falls and the perimeter of the pond.In Hungary - Bankruptcy is automatically triggered. It is not allowed to swap debt for equity. Moreover, the law provides for a very short time to reach agreement with creditors about reorganization of the debtor. These features led to 4000 bankruptcies in the wake of the new law - a number which mushroomed to 30,000 by 5/97.Economies in transition were in transition not only economically - but also legally. Thus, each one adopted its own version of the bankruptcy laws.6. Simple to clean;Met-Pro Corporation, with headquarters at 160 Cassell Road, Harleysville, Pennsylvania, is a leading niche-oriented global provider of product recovery, pollution control, fluid handling and filtration solutions. The Company's diverse and synergistic solutions and products address the world's growing need to meet more stringent emission regulations, reduce energy consumption and employ green technology. Through its global sales organization, internationally recognized brands, and operations in the United States, Canada, South America, Europe and The People's Republic of China, Met-Pro's solutions, products and systems are sold to a well-diversified cross-section of customers and markets around the world. For more information, please visit www.met-pro.com.Bad debts are transferred to base portfolios and have one of three fates:

But the law itself is toothless and lackadaisically applied by the incestuous web of institutions in the country. Between 3/93 - 9/93 there were 1000 filings for insolvency, which resulted in only 30 commenced bankruptcy procedures. There hasn’t been a single major bankruptcy in the Czech Republic since then - and not for lack of candidates.
• make management changesNo one is certain what is the best model. The reason is that someone has yet to come with answers to the questions: are the rights of the creditors superior to the rights of the owners? Is it better to rehabilitate than to liquidate?A more in-depth study of the bankruptcy laws shows that they allow for three ways to tackle a state of malignant insolvency which threatens the well being and the continued functioning of the firm:Wow! Check this out... reinforced concrete waterfalls are
• liquidate property and make distribution of liquidating dividends to creditors9. More natural in appearance and less liability. Lemons or apples? You decide!In England, for instance, the court appoints an official "receiver" to manage the business and to realize the debtor’s assets on behalf of the creditors (and also of the owners). His main task is to maximize the proceeds of the liquidation and he continues to function until a court settlement is decreed (or a creditor settlement is reached, prior to adjudication). When this happens, the receivership ends and the receiver loses his status.Unless the court rules otherwise, the debtor remains in possession and in control of the business and the debtor and the creditors allowed to work together flexibly. They are encouraged to reach a settlement by compromise and agreement rather than by court adjudication.Despite its clarity and business orientation, many countries found it difficult to adopt to the pragmatic, no sentiments approach which led to the virtual elimination of the absolute priority rule.8. Three-year pump warranty; andReinforced concrete pondless waterfalls use high-efficiency, above-ground pumps that are easy to service (3-year warranties).The priority creditors include administrative debts, unpaid wages (up to a given limit per worker), uninsured pension claims, taxes, rents, etc.
• To provide a fair and equitable treatment to the holders of various classes of securities of the firm (shares of different kinds and bonds of different types)It allows for reorganization under court appointed independent manager (trustee) who is responsible mainly for the filing of reorganization plans with the court - and for verifying strict adherence to them by both debtor and creditors.Each state has modified the Federal Law to fit its special, local conditions.This chapter allows for a mechanism called "reorganization". It must be approved by two thirds of all classes of creditors and then, again, it could be voluntary (initiated by the company) or involuntary (initiated by one to three of its creditors).If the company is traded in a stock exchange, the Securities and Exchange Commission (SEC) of the USA advises the court as to the best procedure to adopt in case of reorganization.The 1/3 HP pump is low profile, extremely quiet, and easily hidden with plants next to the falls, or the pumps can be placed in another part of the yard by extending the flexible PVC suction and return lines. The liner pondless waterfall uses a sump pump that is placed in the basin, and then buried with hundreds of pounds of gravel. In order to service this pump (only a 2 year warranty), all the stinky, slimy, rocks need to be first removed from the basin.The American legislator set the following goals, in writing the bankruptcy laws:
  Chapter 10These statistics are from the pond liner industry itself. I can confirm and attest to these numbers myself. I have built over 1,900 reinforced concrete waterfalls and ponds over the past 26 years and have ripped out and replaced scores of defective liner ponds and replaced them with concrete ones with lifetime warranties. Just prior to retiring, in August in 2007 I replaced a $276,000 liner pond and waterfall in Rancho Santa Fe, CA with reinforced 3500 psi concrete due to gopher damage! Pond liner installers provide no warranty against damage from rats, mice, ground squirrels, gophers, tree roots and sharp objects and this one refused to do anything to correct the problem.
  • Reorganization, debt-consolidation (a reduction of the debts, new terms, debt for equity swaps) and a program of rehabilitation.

    Until such time as these questions are answered and as long as the microeconomic debt crisis deepens -we will witness a flowering of versions of bankruptcy laws all over the world.

    
    
    
    Author: Sam Vaknin, Ph.D.