More Bankruptcy News

Zayat Stables Files Chapter 11 Bankruptcy

If you are into horse racing, you would have heard of the name Ahmed Zayat, owner of Zayat Stables and breeder of fine thoroughbred race horses. At last year’s Kentucky Derby, one of Zayat’s horses, Pioneer of the Nile won second place. Zayat himself won the distinction of being the highest earner among thoroughbred owners in 2008, grossing some $6.9 million that year.

However all this was not enough to stave off financial difficulties. Zayat made a Chapter 11 bankruptcy filing in New Jersey last Wednesday. He is currently embroiled in a legal tussle with Fifth Third Bank, who is suing him over more than $34 million the bank says he borrowed for a range of expenses. Arising out of the lawsuit, a hearing is to be held next week to decide whether Zayat Stables should go under receivership. But now that Zayat has filed for bankruptcy, it is uncertain if the hearing will proceed.

St Mary’s Hospital Emerges from Chapter 11 Bankruptcy

With debts amounting to $100 million, St Mary’s Hospital in New Jersey filed for Chapter 11 bankruptcy in March 2009. After less than a year, the hospital has now received official approval for their reorganization plan from a federal bankruptcy judge. Hence, it is determined to emerge reinvigorated and more committed to serving the community and their long-serving physicians. With the exit from bankruptcy comes a new ER fast track, technical equipment for the oncology and cardiology programs and expansions in other key programs.

St Mary’s hospital is a 292 bed non-profit hospital supported by the Sisters of Charity of St Elizabeth besides sharing $40 million in state grants with eight other hospitals. At the height of its bankruptcy process, more than 500 staff workers in St Mary’s agreed to receiving a 5% salary deduction, which was subsequently reduced to 4% due to the hospital’s reorganization. Now that it has emerged from bankruptcy, the hospital will incrementally restore the salaries of its staff and even award pay rises to deserving employees.

St Mary’s was not the only hospital that had to endure financial constraints. Since 2007, six New Jersey hospitals have likewise filed for bankruptcy. Five of those had either closed or sold their assets. St Mary’s has the distinction of being the first hospital to emerge from Chapter 11 bankruptcy in New Jersey.

If your business is struggling with insurmountable debts, it is recommended that you consider filing for bankruptcy protection. Call our Tampa bankruptcy attorneys at (813) 200-4133 for a free consultation. We will tailor a bankruptcy proposal for your specific business needs.