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Pinnacle Airlines is the most recent airline to file for bankruptcy proceedings in the wake of rising fuel prices and lowered demand for air travel. Tennessee-based Pinnacle Airlines operates as regional operator for a number of major carriers, including Delta, United Airlines and US Airways. The company has announced that it has ended its regional operations for United Airlines and US Airways, and in the process of renegotiating its contracts with Delta.

The company has also faced the impact of a growing trend by major carriers to cut flights to smaller cities. Pinnacle has also been financially stressed as a result of the lawsuits against it by the families of people who were killed in the Colgan Air crash in 2009.

Pinnacle Airlines owns Colgan Air, the operator of Flight 3407 which crashed near Buffalo, New York in February 2009. Fifty people including 1 person on the ground were killed in that crash. The company currently faces a number of lawsuits filed by the families of the victims. In fact, the families have found a place in the unsecured creditors committee formed in the wake of the bankruptcy. The estate of Ellyce M Kausner who was killed in the plane crash has been included in the committee.

California bankruptcy attorneys believe it is a possibility that Pinnacle Airlines will use its bankruptcy proceedings to indicate that it is unable to pay the damages if these lawsuits go to trial. The company is likely to use the proceedings to minimize the potential financial damage from those lawsuits, which is likely to be huge. The National Transportation Safety Board’s investigation into the crash found that the crash was caused by pilot errors, and fatigue.

Struggling with plummeting tax revenues and high payrolls, the city of Stockton is slowly moving towards a controversial bankruptcy that many residents oppose. Other California cities have already indicated that they could soon be struggling with similar decisions.

 Last week, city officials in Stockton voted to take the first step towards bankruptcy. The signs that the city would eventually take this road have been clear to California bankruptcy attorneys for a while now. The city has the 2nd highest foreclosure rate in the country, and some of the highest unemployment rates in the US. Its financial predicament has garnered nationwide attention- it was named one of the most miserable cities in the United States recently.

The city of 290,000 has teetered on the brink of insolvency or for a while now, and if the bankruptcy procedure does go through, could become the largest city in the United States to file for Chapter 9 bankruptcy protection. The bankruptcy filing will be watched closely by California bankruptcy lawyers, because of a new law that allows California cities to file for bankruptcy, after involving all related parties, including creditors and residents, in a mediation proceeding. Assembly Bill 506 was designed to help cities avoid litigation if they chose to file for bankruptcy.

The city will be required to hold a public hearing that will involve its creditors, including employee unions whose paychecks depend on the city. The entire proceedings will be overseen by a retired bankruptcy judge.

Many Stockton citizens however are opposed to any move towards bankruptcy proceedings. A recent meeting of the city Council to announce the decision to stop payments to creditors and move towards a mediation, was attended by large numbers of citizens, who still continue to believe that there are other options available.

A high number of foreclosures and personal bankruptcies, rising inflation, and widespread unemployment - these are just a few of the factors that go into making a truly miserable city. A total of 6 California cities feature on a new list of America's Most Miserable Cities.

The factors that the researchers considered in compiling the list included foreclosure, housing prices, corruption, inflation, and violent crime. Some of the other less important factors also included weather, commute times, and even the performance of the local pro sports team. According to the researchers, factors like sports and commutes may seem unimportant, but they do play a role in determining a city’s misery quotient.

The highest ranked California city was Sacramento, which came in at number 5. According to the researchers at Forbes magazine, it’s not just high bankruptcy numbers that figured in Sacramento’s dubious high ranking, but also the fact that the city's pro sports team is currently considering a move to Anaheim, because Sacramento has failed to deliver financing for a new stadium.

Another California city included in the report is Stockton, which was close to the top of the list in both 2010 and 2011. According to the report, Stockton has some serious economic problems that include widespread foreclosures, rampant unemployment and violent crime. However, housing prices in the city have stabilized to some degree.

The other California cities that are included in the list include Merced which came in at number 15, Bakersfield at number 17 and Vallejo at number 18 and Modesto at number 19. In most of these cases, the researchers focused on the city's unemployment rates and housing foreclosures as the main factors in determining the city’s misery quotient.

There was some good news for California business bankruptcy attorneys - the most miserable city in the country happens to be a non-California one. Miami ranked at the top of the list of America's Most Miserable Cities.

This isn't news that should surprise any California bankruptcy attorney. Creditors of Saab’s North America division are trying to pressure the company into bankruptcy. This comes soon after Saab Automobile formally finally filed for bankruptcy in Europe.

The creditors, who number more than 40, include Saab dealerships in the United States. These creditors have filed an involuntary Chapter 11 petition against Saab Cars North America. The claims total $1.2 million in value. According to the creditors, they have filed claims against Saab North America for a number of damages, including ‘unpaid warranty and incentive reimbursement and related obligations.’

The creditors are asking for the company's vehicle inventory as well as the parts businesses to be sold. They're also asking for a platform to address the grievances of creditors and dealers.

On December 19, Netherlands-based Saab Automobiles filed for bankruptcy in a move that had been a long while coming. Production at the company's plant in Sweden had all but stopped since March last year. The company had been on life-support since March, and in the 3rd quarter of last year, manufactured only 113 cars and sold only 1,235 automobiles. Assets had dropped to a total of 3 billion Swedish kroner, which amounts to a measly US $431 million.

By the time the company finally filed for bankruptcy, its position in the Swedish economy had dropped dramatically. According to Swedish authorities, the company represented barely 0.11% of the country's total economic output, and its workers represented just about .16% of the country's total workforce.

However, the bankruptcy has been perceived as being more significant than any other corporate bankruptcy in Sweden, because Saab is considered part of Swedish culture, and is regarded with great affection and nostalgia.

A new generation of Americans will grow up not knowing what a ‘Kodak moment’ is. According to several media reports, the iconic company is expected to soon file for Chapter 11 bankruptcy.

The news should not come as a surprise to any California bankruptcy attorney. After all, the company has been teetering on the edge of bankruptcy for years now. The company recently reported a third-quarter loss of $222 million. It was the company's 9th such loss in the past 12 quarters.

There's no doubt that Kodak's financial situation does not make for a pretty picture. According to the company, its cash reserves have dropped by approximately 10% over the past 3 months. The only real hope that the company now holds is the sale of more than 1,000 digital imaging patents. The company put the patents for sale in July. However, the patents, which are valued at between $2 billion and $3 billion, have not found any buyers. The company will soon run out of cash unless the patents are sold.

The sale of the patents is also not without its share of complications. Kodak is currently involved in a patent infringement dispute with Apple and Research in Motion over these patents.

Over the past decade, Kodak’s relevance in the digital age has diminished, which is ironic because the company invented the digital camera in 1975. Instead of making the most of this foray into the digital age, the company held back, choosing to focus instead on its Kodachrome film and Brownie cameras. At one point, the company employed 145,000 people across the world, and drew some of the world’s best scientists to its headquarters in Rochester, New York. That is in sharp contrast to the current situation, in which 3 of Kodak’s board of directors resigned over the past 2 weeks alone.

Ever since American Airlines’ parent company AMR Corporation filed for Chapter 11 bankruptcy last month, much of the blame for the filing has been placed at the door of the company's workers. Labor problems and labor costs were believed to be at the core of the decision by the airline, once one of the most popular in the U.S., to file for bankruptcy. However, American Airlines employees are finally speaking out. They deny that labor costs are the only reason why the airline has been pushed into this position.

California bankruptcy lawyers know that American Airlines has higher labor costs compared to many of its nearest competitors. However, its employees say that that is not the main reason why the company was pushed into a bankruptcy filing. According to them, over the years, American Airlines has simply lost its edge.

Management has let standards become lax, and the airline has suffered due to bad decisions. Passengers began defecting because of poor choices made by the management and badly timed decisions that eliminated American Airlines’ edge over competitors, and left the airline lagging behind. Competitors like United and Delta have managed to grab a large portion of the market share, while American Airlines management has done nothing to stop the slide.

The employees say that they were not to blame for the management’s refusal to buy fuel-efficient aircraft, or poor decisions that resulted in market share being lost to other competitors. The Federal Aviation Administration has found fault with American Airlines’ compliance with safety regulations, and has had on occasion grounded the airline's fleet. In one case, hundreds of the company's planes were grounded for days, because of inadequate and improper wiring on some planes. Employees say that is not something that can be blamed on labor costs.

In other words, the Chapter 11 filing was the result of a whole host of factors, out of which labor costs was just one.
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Bankruptcy troubles continue to hound the Southern California restaurant and bar industry. In November, it was the turn of the historic Tia Juana bar to file for bankruptcy protection. The Tia Juana Long Bar and Grill filed for Chapter 7 bankruptcy last month, and shut down its doors.

The establishment, known for its theme dancing nights, has been a fixture in the local entertainment scene for years now. According to its owner, the poor economy, which has already driven many well-known restaurants and bars across California into financial trouble, was the main factor responsible for the bankruptcy. Additionally, Tijuana was also involved in a rent dispute with the landlord. The landlord doubled the rent on the property, and the owner says that there was no choice but to close down.

The Southern California restaurant industry has seen many restaurant owners consulting with California bankruptcy attorneys, seeking Chapter 11 and Chapter 7 bankruptcy protection in recent months. Both stand-alone establishments and restaurant chains have struggled to stay afloat in the current economy. The lackluster economy has meant fewer people have chosen to dine out, and this has adversely impacted the industry. Additionally, rising prices of commodities have also adversely impacted the restaurant business.

At the time of filing for bankruptcy protection, Tijuana listed $17,228 in assets and $495,328 in liabilities. The assets include $2,000 in restaurant furniture and a 2009 Nissan Ultima. The restaurant which also includes a nightclub and bar also faces 2 pending lawsuits. These are related to a contract dispute and an unlawful eviction dispute. Both those lawsuits are also mentioned in the company's liabilities. The company also declared that it had no cash on hand, with just over $2,600 in a business checking account

Documents filed in a bankruptcy court in Delaware provide information that could ultimately lead to Los Angeles Dodgers owner Frank McCourt losing his franchise. The documents show that McCourt used as much as $190 million from his team funds for non-baseball purposes.

One of Major League Baseball’s terms and conditions include a ban on using team revenues for any non-baseball purposes, and the documents show that McCourt has done exactly that. Violations of any of Major League Baseball's terms can lead to termination of a franchise.

According to the League, McCourt channeled at least $73 million in baseball revenues through a company called Blue Land Company. He also used $61 million to pay off personal debts, and sliced off $55 million from team revenues for other personal reasons. According to the bankruptcy documents, McCourt has siphoned a total of $190 million, and this is the reason why the team faces bankruptcy.

Meanwhile, the Los Angeles Dodgers bankruptcy case is getting more complicated by the day. The case involving a San Francisco Giants fan, who was seriously injured when he was beaten up in the Dodger Stadium parking lot after a game, is likely to play a major role in proceedings. Lawyers for the injured man, Brian Stow have claimed that he has suffered injuries that will cost as much as $50 million in medical bills. Currently, he's one of Los Angeles Dodgers biggest creditors, and California bankruptcy lawyers believe his lawsuit against the Dodgers will factor hugely as bankruptcy proceedings continue. .

McCourt has alleged that the injuries and the beating was the fan’s own fault. However, in the bankruptcy filing, the League says that although there were 197 police officers on duty on the day of the attack, the officers had been removed by McCourt before the 2011 season, including on the day of the attack.

It’s hard for the show to go on under the strain of mortgages, declining ticket sales and dwindling donations. California's local theater scene is fighting off bankruptcy with Lyric Opera San Diego announcing that it is filing for Chapter 11 protection.

According to Lyric Opera, most of the company’s staff members, including part-time and full-time employees, have already had their services terminated. Currently, there is a basic minimum crew in place. The company was founded in 1979 as the San Diego Comic Opera. The name was changed to Lyric Opera in the mid-1990s. The company bought the Birch North Park Theater at $1.5 million, when it became too big to be accommodated in its original home.

Since the recession hit, the company has struggled with declining ticket sales. In the early days of the new building, donations continued to pour in, but tapered off after the economy nosedived. According to company officials, the company has been struggling to pay bills which include an $11,500 per month mortgage payment. The company recently concluded its production of Mame to poor audience numbers, and made the critical decision to file for bankruptcy. The company hopes to sell the Birch North Park Theater, and lease it for future productions.

Similar troubles have also dogged the Starlight Theater which recently filed for Chapter 11 protection.

Declining ticket sales and poor donations have been a factor behind many theater bankruptcies since 2007. California bankruptcy lawyers have found that these companies have also been hit by the popularity of discount ticket prices. With many patrons tightening their purse strings, many choose to wait until the very last minute to purchase tickets at a discount. Discount ticket buyers sometimes constitute as much as 30% of the audience, eating into a company’s profits.

In 2009, corporate bankruptcy filings in the US touched a 15-year record high. However, since the second quarter of that year, the picture has steadily improved for corporations in the United States. In fact, according to data from the American Bankruptcy Institute, bankruptcy filings have dropped by an average of 3.2% per quarter since then.

The drop in filings is steep, from 16,014 in 2009 to 12,304 filings in the most recent quarter. However, the drop in filings in one of the worst economic situations in recent memory may have more to do with a combination of unique factors, rather than the resilience of corporations.

The 2007 market crash, when most of the trouble began, came soon after bankruptcy amendments were implemented in 2005. The amendments made it much more difficult for companies to file for Chapter 11 protection. The amendments placed restrictions on a company’s right to file a plan of reorganization. Moreover, the amendments also made it more expensive for companies to file for bankruptcy. The drop in bankruptcy filings seems to have been a result of these factors.

However, there may be another side to the picture. Experts expect bankruptcy filings to increase over the next couple of years, as banks again begin to hedge on lending money. Right now, the lending situation is fairly encouraging, and interest rates are low. People expected the 2009 sweep of bankruptcies to continue over the next couple of years, but were proved wrong because companies began to receive funding they needed to continue operations. That situation may not remain the same for long.

In fact, so far in the month of October alone, there have been at least five companies worth more than $100 million that have filed for Chapter 11 protection. It’s still too early for California bankruptcy lawyers to predict whether this is the beginning of the next wave of filings.