2 Arizona hospitals file bankruptcy

Gilbert (Ariz.) Hospital and Florence (Ariz.) Hospital entered Chapter 11 bankruptcy in May  after creditors tried to force the hospitals into bankruptcy to try  and recoup $1.96 million they claim the affiliated hospitals owe.

In April, three employees of Florence filed an involuntary bankruptcy petition for $46, 650 in wages and the Gilbert involuntary petition was filed by the founder and CMO Dr. Timothy Johns, an unsecured creditors’ trust and a Phoenix law firm. Involuntary bankruptcies are used by creditors when they don’t believe they will be paid for goods or services they provided.

In court documents filed May 1st, creditors claimed the two Arizona hospitals failed to make lease payments for months and both facilities are “on the brink of complete shutdown.”

After creditors ask a court to initiate bankruptcy proceedings, the debtor(s) have the chance to contest the petition. The two Arizona hospitals failed to meet the 21-day timeline and the court granted the creditors’ request for relief through the Chapter 11 bankruptcy process.

This is the second time the two hospitals have been in bankruptcy court. The hospitals filed for voluntary Chapter 11 bankruptcy in 2014.


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Gibson Guitars files for bankruptcy

After over 100 years of being in the mucil instrument business, famed Gibson Guitars has filed fo bankruptcy.

The company filed for bankruptcy protection in Delaware, an action many have for some time. The company owes as much as $500 million and that debt has burdened it over the years. According to Bloomberg News, a $135 million loan should help keep Gibson in business after its debt is restructured. The report also states that several dozen companies were contacted about a purchase, but no deal was finalized in time.

Gibson has been in the music business since 1894, and throughout that time has sold millions of guitars to some of the greatest artists who have ever recorded music, like Elvis Presley. The company still sells over 150,000 units every year, and through the decades has diversified and moved into other areas of the music industry. The guitar giant also owns a dozen other brands like Epiphone, Steinberger and Kramer. it sells audio equipment such as amplifiers, tuners an headphones

.According to a number of experts, its this diversification is one of the reasons Gibson is in financial trouble is because it tried to expand and diversify and make the company more of a lifestyle brand, instead of just a guitar seller.

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Cancer increases bankruptcy risk, even if you have insurance

A new study by the Hutchinson Institute for Cancer Outcomes Research in Seattle has found that even though the may have insurance, those suffering from cancer may face bankruptcy .

According to the lead researcher, Scott Ramsey, M.D., Ph.D.

Bankruptcy may represent a unique and heretofore unstudied potential source of health disparity.  In this study, we formed a novel partnership with the Federal Bankruptcy Court and the National Cancer Institute’s SEER cancer registry to link bankruptcy records for cancer patients and a matched control population without cancer.  Our findings indicate that  that cancer patients experience excess rates of bankruptcy compared to persons without cancer, results that have potentially important implications for those researching the causes of cancer disparity, and for policymakers seeking to mitigate the economic as well as clinical burden of persons with cancer.

The researchers found that out of 197,840 people with cancer, 4,408 of those diagnosed between 1995 and 2009 filed for bankruptcy, compared to 2,291 of those without cancer.

Read more at nbcnews.com 

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Perfumania files for Chapter 11 bankruptcy

The Fragrance company Perfumania has declared Chapter 11 bankruptcy and will shutter 65 of its 226 stores nationwide. The company, known for selling high-end perfumes in malls across the country has said it will focus on online sales and high performing stores.

CEO Michael Katz said in a prepared statement,

The company has been working diligently to amend its business model, reduce its cost structure, improve supply chain efficiency, optimize marketing, reduce expenses and improve operating results long-term,”The company hopes bankruptcy will allow it to renegotiate its leases and focus on high-performing stores “to establish a foundation for sustainable long-term growth.

The company which is based in Bellport, Long Island said that no stores or employees on Long Island will be affected by the move.  Perfumania fell to the same pressures other retailers have faced in the last few years with declining mall traffic and consumers turning to online purchasing.

Under the bankruptcy plan, Katz said the company has a commitment for $84 million in financing from Wells Fargo and the company will cancel its current equity and the company plans to go private after bankruptcy and the stock will be canceled. But Katz assured employees and customers:

Our employees can be assured that during this time and beyond they will continue to receive their salaries and benefits. Our retail customers can continue to purchase the brands they love at our stores and online, and our wholesale and retail customers will not see any interruption in the flow of merchandise.”

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Five Tips For A Healthy Life (PART 2)

1. Family Matters

Family disputes are a major cause for stress in people. The reason for that is because we have a very close and intimate relationship with our family members, and if there is issue within the family, it affects our health adversely and may lead to early mortality. So the best option is to let bygones be bygones and come to peace with your loved ones.

2. Find Your Purpose In Life

According to a study conducted on people living in “blue zones”, areas of the world where people live the longest, it was found that those who have a purpose in life, who wake up every day looking forward to doing something, they live seven extra years of life. That is because such individuals are motivated and passionate, and traits help them stay active and focused

3. Be Social

Loneliness is bad for health. Studies have shown that people who are lonely have a forty-five percent higher risk of heart attacks. This is due to the fact that loneliness increases blood pressure and weakens the immune system of an individual. Conversely, being in the company of friends reduces mental stress. A University of California San Diego study found that people who interact with their friends on social websites like facebook also live longer.

4. Avoid Alcohol

Consuming alcohol more than a moderate amount (one glass for women, two for men) results in shorter life spans. Alcohol adversely affects the human liver and is a major cause for multiple forms of cancer, including mouth, liver, throat and breast cancer. It can also cause cardiovascular diseases like blood clots and heart attacks. So in order to stay healthy, one should try and cut short on alcohol consumption as much as possible.

5. Get A Four-Legged Friend

The American Heart Association published a report in the journal Circulation wherein it concluded that owning a pet reduces chances of heart disease. That is because they found having a pet had a direct co-relation with reducing anxiety and lowering blood pressure. So it might be a good time for you to get a dog.

On a side note, another stress reducing step is to prepare a Will, so that you are fully aware and in control of who gets what from your estate. To that end, Jeffrey L Weinstein can help you out. He has over two decades of experience working on Will and Estates matters.

Please do not hesitate to contact him on 212-693-3737.

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