Florida residents who follow business news may be interested to learn that a prominent boutique investment bank has filed for bankruptcy. Ledgemont Capital Group LLC filed documents May 3 asking the court to liquidate the company's assets, estimated at between $10 million and $50 million. Although the company is based in New York, the bankruptcy was filed in the United States Bankruptcy Court in Delaware.
In a Chapter 7 bankruptcy, the consumer's assets are liquidated by a trustee appointed by the judge. The money obtained from the sale is then used to pay the business' debts. Ledgemont reports debts from $1 million to $10 million.
In 2008, the company was originally scheduled to be one of two underwriters for a $460 million initial public offering for FriendFinder Networks Inc., the company that publishes Penthouse magazine. However, FriendFinder Networks wound up executing the public offering in 2011 using different underwriters.
When a person or a company has mounting debts that exceed assets, or monthly payments exceed the amount of income available to pay them, bankruptcy is one way to get a clean slate. Many people benefit from having a local bankruptcy attorney review their financial situation and advise them on their possible options. An attorney can attempt to negotiate settlements to pay debts, work on a financial plan and explain the difference between the types of bankruptcy. In some cases, an attorney may be able to help restructure debts. When a consumer or a business needs the fresh start that bankruptcy provides, the attorney may be able to file paperwork to get the process started and assist throughout the case.
Source: Fox Business, "Boutique investment bank Ledgemont seeks Chapter 7 bankruptcy", May 06, 2013