Chapter 11 Filing Made by Beehive; 20 Percent Laid Off
SALT LAKE CITY -- Beehive International, caught in the web of Continental Illinois Bank financial troubles, last week filed for Chapter 11 reorganization in federal court and slashed its workforce by approximately 20 per cent.
The terminal manufacturer said a $2.5 million loan arranged with another source fell through at the last minute because Continental Illinois, its major lender, wanted most of the money to repay Beehive's debt to itself and vetoed the loan's use to pay suppliers.
"Beehive was forced into Chapter 11 because existing supplier debt and current operating costs could not be met without additional financing, and because the company's principal lender, Continental Illinois Bank, had been unwilling to acquiesce to the use of a $2.5 million loan from another lender for payment of the company's suppliers," Warren Clifford, president, said in a prepared statement.
As reported, Beehive had negotiated the $2.5 million loan in place of a more complicated and less favorable sale/leaseback of its plant (EN, Sept. 24).
The company had planned to use the money from the loan to pay its suppliers and for other uses in order to sustain operations for the immediate future.
Last week, the company said "All steps necessary for receipt of funds of the $2.5 million loan were completed . . . expect for Continental Bank's acquiscence in the proposed use of proceeds."
According to the company, continental had demanded most of the loan be used to pay back Beehive's debt to the bank, which for almost half a year has stood at about $6.5 million.
Because of that, the company said, it had not actually received the $2.5 million, and thus filed for protection under Chapter 11.
The 20 per cent staff cut from a total employment level of approximately 380, was being accompanied by other actions "to significantly reduce other controllable expenses" the company said. Those actions were not detailed, and the company officials declined to elaborate on further details of their bankruptcy plan at this time.
The company did say it plans to continue in business, under Chapter 11 protection from its creditors, "and to market its new lines of products introduced this year and to continue to provide maintenance service to its customers."
The bankruptcy filing comes just after the end of the company's fiscal year, a year expected to show the company deep in the red.
The company had started the year with a slim $39,000 profit or 1 cent per share, on sales of $9,491,000 in the first quarter, ended Dec. 31, 1983. In its second quarter, though, the company had posted a $1,499,000 net loss with sale slipping to $8,204,000. For the most recently reported quarter, ended June 30, the company reported $2,176,000 net loss with sales of $7,702,000 bringing the total 9 months loss to $3,636,000 on sales of $25,292,000.
The company has not issued any estimate of fourth-quarter results.
At the time of its third-quarter report, Beehive noted it had exceeded its line of credit with Continental bank, but said that it had not borrowed any additional funds on that line of credit in the quarter. The company had also noted it was seeking equity financing, which at that time it said was "required to provide (its) working capital needs."
With first its disclosure of the proposed sale/leaseback, and then with the apparently successful negotiation of a $2.5 million loan on what the company considered even more favorable terms, it had appeared that the problem was solved, at least for an interim period.
Abstract: 
Terminal manufacturer Beehive International has filed for bankruptcy and laid off twenty percent of its workforce. The move follows a decision by Continental Illinois Bank which prevented Beehive from obtaining a $2.5 million loan. Continental requested most of the loan to help repay a $6.5 million debt owed to it by Beehive. The company has reported a loss of $3,636,000, on sales of $25,292,000, for the nine months ending June 30, 1984.
 

If you have migrated from England or Wales you may file for  bankruptcy whilst in Australia , depending upon certain conditions.

An examiner is applied to your case and the examiner also will consider any property which you possess, to find out if these ought to be removed from you for the benefit of your creditors. The examiner will likely look at your income and expenditure should you be currently employed, to see whether you're capable of making a payment back to your creditors out of your disposable income.

If your bankruptcy is assessed and the Insolvency Service feels that there is extra income they can apply what is known as an Income Payment Agreement (IPA) or an Income Payment Order (IPO). The latter is applied through the UK Court system in case the person doesn't agree to the first proposal and income payment agreements or orders will run for a duration of three years, despite the fact the bankruptcy itself basically lasts for one full year. An IPA or IPO can begin from £20 and up and might be evaluated throughout the agreement period. The payments can be inflated or reduced subject to the person’s salary and perhaps may also be terminated should the particular person manages to lose their income or job.

In case you're residing overseas and possess credit card debts in the UK, there are various expert services that you can consider, to allow them to contend with debts they have accrued. In many cases it will depend on both how much debt that you possess, and also the available funds that you have to employ in the direction of these solutions.

For excessive degrees of debt an individual may give consideration to an IVA (Individual Voluntary Agreement) should they satisfy certain criteria. If you live abroad it's essential to endeavor to structure this agreement within 36 months of leaving behind England or Wales. You'll need to be currently employed and also demonstrate that you have a specific amount of surplus income that you can pay to your creditors on a monthly basis.

In some cases your discharge may be delayed by the Court, for instance, if your debt emerged as the result of gambling, acquiring credit whilst realising you had no method of repaying, or if you've been bankrupt previously.

Once your Debtor's Petition along with Statement of Affairs are complete you are able to attend your local County Court and present the actual paperwork. Depending on the courtroom you may need to book an appointment ahead of time, and they usually require three copies of the paperwork.

Consumer credit is not really as readily accessible as it used to be, so if you're suffering from substantial debt it's probable you may not manage to find an easy way out and may even have to consider a individual bankruptcy.

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You may of been told that bankru ptcy should be considered as a final option, and that you should try an IVA (Individual Voluntary Arrangement), IPP (Informal Payment Plan) or DMP (Debt Management Plan) first, however this isn't always suitable. What's ideal for you depends entirely on your situation since these are all solutions to the same problem, but tackled differently.

There's really no probability of bailiffs coming round and taking all of your belongings. As soon as you enter into the protection of a bankruptcy order, creditors cannot harass you for your personal debts since they're no longer your responsibility. You can keep the tools of your trade, your car (providing it is not over £2500), household goods, apparel, bedding and house furniture.

How bankruptcy is affecting you.

Once declared bankrupt you will definitely be confronted with certain bankruptcy restrictions. You will not be able to obtain credit over £500 without informing the bank that you are bankrupt. Realistically, you have difficulties procuring any borrowing during the 365 days that you're bankrupt, but once discharged it will turn out to be increasingly easier and a discharged bankrupt will still be able to have a mortgage in the near future.

Normally, after one full year you are discharged from bankruptcy, meaning that your restrictions are lifted. At this point you can steadily improve your credit rating.

When you are discharged from bankruptcy you are released from the unsecured debts from your date of the Court Order. Any debt a person accumulate after this, you will be liable for.

You can file for bankruptcy again if necessary, but you should transform it into a top priority to manage your financial situation as best as you can to avoid this.

Professional guidance can ensure that all Court paperwork is completed, lenders are kept away, legal action is avoided, and that you are completely informed every step of the way. These services come at a price to you.

Additionally, the court fee, that needs to be paid towards the Court on the date of your bankruptcy Hearing is £700.

You could qualify for the reduced cost, which is £525, however this depends on a variety of factors. An advisor can determine whether or not you do qualify for a Court Fee Remission.

After you have paid the court expenses the District Judge will make their evaluation and notify you.

Approximately 1-2 weeks later the Official Receiver will have contacted you just to make sure that everything is right and to discuss the transfer of any possessions - if necessary.

It is a generally held fabrication that personal bankruptcy is punitive and that bailiffs will seize your goods leaving you nothing but a change of clothes. This is incorrect. You enter into the protection of a Bankruptcy Order to undertake exactly that; to protect yourself from loan companies and to make a fresh start.

With the introduction of the Enterprise Act in 2004, the mandatory period forced to serve under Bankruptcy was decreased from 3 years to 1. Bankruptcy is not the punitive action of years gone by and is intended to allow individuals the chance of rebuilding their lives.

Your bank account will usually be frozen in the long term in case you have any debts with the bank, which includes an overdraft, loans, credit cards. Having said that, some banks just refuse to have accounts with undischarged-bankrupts.

We recommend that you get hold of your bank once you're made bankrupt to determine if you will definitely be permitted to keep the account. Depending on how long you've been with the bank, and what debts you could have with them, if any, decides the outcome.