subject: Interesting Facts About Bankruptcy [print this page] It is figuratively true that the words interesting and bankruptcy should never be used in one sentence, but to research about bankruptcy is to discover facts too interesting for the subject. Do not be afraid. Not all articles on bankruptcy are constitution-esque articles.
To start with, can you imagine how the first banks in history look like? Banking was held in public places, such as markets and fairs. Transactions were made over wooden benches. Thats right. Coins and important papers were exchanged over a wooden bench where everyone in that public place could see.
In Italy, it was a common practice to break a banks wooden bench whenever a bank owner declares that his bank is no longer capable of operating - primarily, due to financial reasons. Therefore, when people see a broken bench, where a bank used to be in, it means that that bank has ceased operating.
The word bench, when translated in Latin, is bancus; while broken is translated as ruptus. Meanwhile, the Italian phrase banco rotto when translated to English is broken bank. Have you been reading something that sounds like bankrupt? Yes you are! Hence, the word, bankruptcy. In the legal world, there are laws that guide, or revive a business that is close to totally sinking. When a business has debt that is way bigger than the assets, that company should stop borrowing money. Sometimes, it is even better for that business to announce bankruptcy.
Flash forward to the twentieth century: Gadi Leshem is the C.E.O. and president of a company that installs carpets. He also heads the Ogden River restoration in Utah. He also is a movie producer and a very close friend to Utah mayor Matthew Godfrey. Moreover, he is also a realtor at Ogden. He has been buying real estates at Ogden, a place he said he loved so much.
2009: Gadi Leshem filed for Chapter 11 bankruptcy. His carpet installation company is bankrupt. It only has 1 million in assets and 46 million in debts. Now that is a good reason for a bench to be broken. Sometimes, declaring bankruptcy can help revive a sinking business.
Chapter 11 bankruptcy allows the owners of a corporation or a partnership to come up with a plan for reorganization, to keep the business alive, and pay debtors over time. Gadi Leshem is now closing 21 of his 23 facilities. Selling these assets will generate $291,966 in revenue, a move that might just mean life for his other, more profitable businesses.
