Trident Resource Corporation is a Calgary, Alberta-based oil company with a massive U.S. arm that entered Chapter 11 bankruptcy in September 2009. Gradually deflating oil prices contributed to their decline, but an even greater player is the high-risk nature of the oil industry.

Companies in a Chapter 11 bankruptcy can usually continue their normal operations, but Trident Resource Corporation cannot make fast cash by selling any one of their 122 oil leases, the contracts they use to extract oil from a specified location.  Federal regulation firmly denies them the right to sell these leases without the consent of Federal Secretary of the Interior Ken Salazar, as the drilling contracts will soon be the property of their secured lenders.

The oil industry is inherently cyclical, undoubtedly the highest-risk trade that relies on natural resources.  Oil tycoons in good business invest in contracts with expiration dates, “leases” that enable them to drill the land.  These “lease” contracts are legally binding agreements to pay the landowners an express written amount.  But when the oil company’s risks fall flat and hit one too many dry wells, a well plotted bankruptcy enables them to slip out of these lease contracts.

This loophole is not guaranteed; during an oil company’s bankruptcy, the bankruptcy court has the final word on whether these lease agreements can be terminated or not.  In some cases, some of the land-owning benefactors of the drilling agreement have been paid to satisfy the agreement while their neighbors have not, and the contract can be severed, divided into multiple contracts-- some of which have been financially fulfilled to a certain degree and can be breached.

Contracts are one of the fuzzier aspects to bankruptcy.  You are entitled to protect yourself from creditors, but on whose terms?  Some common legally binding contracts that could impact your bankruptcy filing are spousal support and child support.  Wondering if these exemptions to your bankruptcy protection impact you in your area?  Call us for a free bankruptcy consultation today at 1-800-260-1402.

G.M. reported the total losses they experienced since their bankruptcy this past Tuesday: $4.3 billion. Since exiting their Chapter 11 bankruptcy, they received 57.5 billion in revenue, up from $46.8 billion from the first half of 2009.  Since exiting this Chapter 11 bankruptcy, they received about $50 billion in federal aid to get the company back on its feet.

Their CFO Chris Lidell stated, “The company may become profitable this year,” but only after acknowledging, “this company is guilty of over-promising and under-delivering.  I hope to turn that around.”

Detroit, whose future hinges on GM’s success, remains hopelessly optimistic—the Detroit Free Press nodded at the number by saying, ”GM moves closer to breaking even”.  Then again, for a company that was merely hanging on a string at the mercy of a federal bailout, it’s hard not to be congratulatory for the baby steps.  Right now, that baby step is expected profitability this year “at least at the operating level”.

G.M. has also sold Saturn and Saab, (the latter to Dutch luxury car maker Spyker Cars NV), and plans to completely shut down Pontiac and Hummer.  Post-bankruptcy G.M. will focus exclusively on Chevrolet, GMC, Buick and Cadillac.  Critics worry that its current leadership will focus too heavily on its luxury autos.

Will G.M.’s recovery from bankruptcy reflect the American dream of triumph against insurmountable odds? G.M.’s recovery was the textbook definition of an uphill battle, but the bankruptcy was still instrumental in relieving $83 billion in debt.

Are you facing financial difficulty? Your smaller scale personal debt will definitely be much easier to discharge than the multi billion dollar debt at G.M.   Call us toll-free for a free initial consultation at 1-800-260-1402 today. Don’t wait till things get worse. Reach out to a skilled and experienced bankruptcy attorney today.

New York City’s last existing full-service Catholic hospital is about to breathe its final breath.  Plundered by debt, the 160 year old Saint Vincent’s Medical Care Center of Greenwich Village is expected to finally close its doors to the estimated 165 ER patients they take on every day.

Saint Vincent’s Medical Care Center initially filed for Chapter Eleven bankruptcy in September 2005.  Two years later, they successfully emerged from the bankruptcy with their financial obligations reorganized. Post-bankruptcy, 8 separate budget cuts from the city of New York since 2007 proved to be overwhelming blows.  Over the last decade, their debt grew to 700 million dollars. With the threat of a second bankruptcy and insufficient funds to leverage the debt, its hospital board decided it should close for good.

It is truly unfortunate that the consistently altruistic hospital couldn’t be on the receiving end of welfare, but their demise does deliver some practical information about bankruptcy. It’s difficult for a company that files Chapter 11 bankruptcy to get a second Chapter 11 approved, especially if the bankruptcy court thinks they might subsequently liquidate their debt. 

Are you facing financial ruin? The attorneys at Legal Helpers can help you begin the path toward your recovery. Call 1-800-260-1402 for a free initial consultation from a bankruptcy focused lawyer today.