file bankruptcy – Company Of Cyclists http://companyofcyclists.com/ Fri, 18 Feb 2022 12:07:57 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://companyofcyclists.com/wp-content/uploads/2021/10/icon-7-120x120.png file bankruptcy – Company Of Cyclists http://companyofcyclists.com/ 32 32 Filing for bankruptcy? RI House approves bill to let you still keep money https://companyofcyclists.com/filing-for-bankruptcy-ri-house-approves-bill-to-let-you-still-keep-money/ Fri, 18 Feb 2022 12:07:57 +0000 https://companyofcyclists.com/filing-for-bankruptcy-ri-house-approves-bill-to-let-you-still-keep-money/ Friday, February 18, 2022 GoLocalProv News Team View larger + The Rhode Island House of Representatives on Thursday approved legislation allowing those who file for bankruptcy to keep $500 of their personal savings. The bill is intended to provide some protection for individuals and families experiencing financial hardship. “It does not serve the public good […]]]>

Friday, February 18, 2022

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The Rhode Island House of Representatives on Thursday approved legislation allowing those who file for bankruptcy to keep $500 of their personal savings.

The bill is intended to provide some protection for individuals and families experiencing financial hardship.

“It does not serve the public good to create misery. People file for bankruptcy because they need relief and protection. That protection should include the ability to keep a small amount of money for personal needs, said the bill’s sponsor, Rep. Arthur Corvese (D-Dist. 55, North Providence).

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“Five hundred dollars isn’t a lot for a creditor, but it’s enough to make sure a family can get groceries between paychecks or can take care of a car repair so that she can continue to go to work,” he added.

The legislation (2022-H 6623) adds $500 of savings or other deposits held in a bank or financial institution to the list of assets, such as a family’s clothing and a limited amount of household furnishings, which are exempt from seizure.

Following Thursday’s action, the bill now goes to the Rhode Island Senate.

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Detroit woman goes from bankruptcy to business owner https://companyofcyclists.com/detroit-woman-goes-from-bankruptcy-to-business-owner/ Tue, 15 Feb 2022 04:25:00 +0000 https://companyofcyclists.com/detroit-woman-goes-from-bankruptcy-to-business-owner/ DETROIT (WXYZ) — From welfare to Walmart is the mantra of a Detroit woman who clawed her way back from bankruptcy to become a successful business owner. It’s an unlikely road that she likes to share as an inspiration to other African Americans who find themselves hopeless, especially during this Black History Month. The spotlight […]]]>

DETROIT (WXYZ) — From welfare to Walmart is the mantra of a Detroit woman who clawed her way back from bankruptcy to become a successful business owner.

It’s an unlikely road that she likes to share as an inspiration to other African Americans who find themselves hopeless, especially during this Black History Month.

The spotlight on her is not just here in Michigan, but across the country.

Glamorous photoshoots, magazine covers, and articles detailed Tiffany Cartwright’s incredible rise in entrepreneurship. You would think the ride to the top was smooth, but it’s quite the opposite.

“I literally lost everything. My house, my car, I mean everything. I had to file for bankruptcy, Cartwright said.

Tiffany grew up in Detroit and graduated from Renaissance High School, Michigan State University and the University of Michigan Law School. After serving as a clerk in the Michigan Supreme Court and the Attorney General’s Office, she began serving as an administrative law judge.

“You told me all of a sudden that you had lost your job?” WXYZ’s Carolyn Clifford asked Cartwright.

“It was basically due to budget cuts. So suddenly and without warning, I went from presiding over unemployment hearings to trusting an unemployment check,” Cartwright said.

No one would hire her, citing too much experience or knowing she wouldn’t be around long. Tiffany says she relied on her brother’s faith and empowerment program for inspiration.

“That book that’s inside of you, that invention that you dreamed of, those concoctions that you mixed up in your kitchen, those recipes that your mother passed down to you, that’s a business,” Cartwright said.

That’s when the light bulb went out. For years, she had mixed organic natural skincare products in her kitchen to treat her daughter’s eczema. But going from the kitchen to a store shelf isn’t easy.

“How do you pick yourself up and start? asked Clifford.

“There’s a free course offered to teach you how to start your business,” Cartwright said.

This class taught her step-by-step how to create an LLC, get certified as a woman-owned or minority-owned business, and get her tax ID. As a bonus, she learned of other great opportunities.

They announced “Shark Tank” was coming and they are looking for business owners.

With her daughter by her side, she introduced her brand of Glam moisturizer for the treatment of eczema to the Sharks.

“We got a yes,” Cartwright said.

She makes GLAM products in the city of Detroit. An 8 ounce jar sells for 14.97. It exfoliates, hydrates and since January 31, great news has arrived.

“I’m super excited to have launched in 300 Target stores nationwide,” Cartwright said.

The Glam brand is also present in two local Meijer stores, 200 Walmart stores and 300 Stop and Shop stores on the East Coast. Her plan is to employ women who have been victims of domestic violence and human trafficking.

“The goal is not just to give them jobs, but also to give them the tools they need so that they too can become entrepreneurs,” Cartwright said.

Selling to the black consumer is a $300 billion opportunity by some estimates, but hurdles remain.

“African Americans only occupy 6% of retail space,” Cartwright said.

And while it’s hard to convince a big-box retailer to take a chance on your product, Tiffany says the challenge isn’t getting on the shelf, it’s staying on the shelf.

“If I’m not successful at Walmart, maybe the next woman of color who comes up with an awesome, amazing product will be skeptical,” Cartwright said.

Tiffany has since been called back to her job, but she knows her success as a business owner in Detroit, where the unemployment rate sits at 25%, depends on more.

“We need job creators, and we need to be those job creators,” Cartwright said.

She says for financial empowerment and real, lasting change, and for her, a seismic change in the way she thinks about her journey.

“I lost my job and found my purpose,” Cartwright said.

If you’re inspired by the Tiffany story, free empowerment classes are offered across the city of Detroit to teach you how to open your own business step by step. Classes are held Tuesdays, Fridays and Saturdays at 17910 Van Dyke in Detroit.

For more information, visit the Global Empowerment Website

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Puerto Rico may be nearing the end of bankruptcy. What does it mean? https://companyofcyclists.com/puerto-rico-may-be-nearing-the-end-of-bankruptcy-what-does-it-mean/ Sun, 06 Feb 2022 15:56:00 +0000 https://companyofcyclists.com/puerto-rico-may-be-nearing-the-end-of-bankruptcy-what-does-it-mean/ Last month, a federal judge approved the largest debt restructuring plan ever reported in the United States, paving the way for an end to Puerto Rico’s long and painful bankruptcy process. The plan — capping a years-long debate between creditors and local and federal officials — cuts most of the island’s largest chunk of outstanding […]]]>

Last month, a federal judge approved the largest debt restructuring plan ever reported in the United States, paving the way for an end to Puerto Rico’s long and painful bankruptcy process.

The plan — capping a years-long debate between creditors and local and federal officials — cuts most of the island’s largest chunk of outstanding debt from $33 billion to about $7 billion. The debt originally stood at $70 billion plus $50 billion in pension obligations.

Puerto Rico’s Electric Power Authority owes more than $9 billion separately. The financial watchdog tasked with bailing the island out of bankruptcy expects to have a plan for that debt later this year.

Last week, the board’s longtime executive director Natalie Jaresko, who helped broker the plan, announced her resignation effective April. She and the board have been criticized for the time it took to negotiate the plan as well as the austerity measures imposed in the meantime, but they hailed the deal as a historic step for the future of Porto Rico.

Although the plan is a step towards lifting Puerto Rico out of crippling debt, experts remain concerned about the island’s economic future.

According to the policy director of the Center for the New Economy, Sergio Marxuach, the plan is “based on long-term projections for the economy, which are very uncertain”.

Economists expect an influx of silver to reach Puerto Rico over the next five years linked to hurricane and earthquake recovery efforts. But the rest of the economy remains uncertain.

“I want to believe that elected officials in Puerto Rico and the United States are concerned that Puerto Rico needs to grow after reconstruction is over,” economist and University of Puerto Rico professor José Caraballo told ABC News. – Cueto.

“The economy is not going to grow on its own, and it’s not going to create jobs through more fiscal stimulus, either by receiving new federal funds or rather by issuing new debt,” he said. added Caraballo-Cueto.

How did Puerto Rico’s economy falter?

Decades of mismanagement and excessive indebtedness led Puerto Rico to file for bankruptcy in 2016 under Puerto Rico’s Supervisory Management Economic Stability Act (PROMESA). The law, signed by former President Barack Obama, gave the island an alternative because, as a territory, it could not file under Chapter 9, the traditional route for municipalities in financial difficulty.

The previous year, the island had defaulted on payments of $70 billion in public debt and more than $50 billion in pension obligations. The pension part of the debt will not be restructured, which means that each pensioner is supposed to receive what they have been promised.

“Puerto Rico’s debt is unpayable,” former Governor Alejandro García-Padilla said in 2015. Under his administration and President Obama’s last term, PROMESA was taxed, including its financial control and management board.

The seven-member board of directors is responsible for managing the island’s finances and has come under fire from residents, local and federal officials amid delays in finding a consensus that would lift Puerto Rico out of bankruptcy.

In a statement announcing his departure, effective April, Jaresko touted his accomplishments during his tenure.

“I am leaving the Supervisory Board at a time of recovery and stability. I am proud of what we have accomplished and I am confident that the road that has taken us to this important milestone will take Puerto Rico further towards growth and prosperity, Jaresko said in a statement.

Board Chairman David Skeel praised his work.

“I am saddened by his personal decision to step back, but I also understand his desire for change after five years of rewarding but hard and difficult work to help Puerto Rico recover from its fiscal and economic crisis,” Skeel said.

Jaresko, however, acknowledged that “these years were complex, and painful natural disasters, political unrest and the pandemic added to the obstacles we had to overcome.”

Months after the council began working on the island, Puerto Rico was hit by Hurricanes Irma and María, causing more than $90 billion in losses, according to the local government.

Three years later, the island was again hit by thousands of earthquakes and the ongoing pandemic, further weakening Puerto Rico’s economy.

What’s next for the island?

Puerto Rico will have to start paying off the debt in hopes that the island’s economy will grow regardless of any federal aid that is expected to arrive.

“It’s a leap of faith,” Marxuach, of the Center for the New Economy, told ABC News.

“It’s a big concern for us, that once that money dries up, we really don’t have, you know, a strategic vision, as you know, for growing the economy. And we could fall back into a recession,” Marxuach added.

Although many pundits are aware that the deal is not perfect and risky, they considered it a step towards pulling Puerto Rico out of the financial crisis.

Under the approved plan, pension obligations were protected, securing many retirees who feared for their economic stability.

“I think the positive side of this restructuring was that pensions were protected…and I think that’s a big win for civil society in Puerto Rico,” Caraballo-Cueto told ABC News.

While he favors full pension protection, Marxuach worries about what pension protection means for the ability to invest in younger generations.

“Protecting pensions was a good thing, but I think about how much we’re going to pay out of pensions every year going forward, which is about $2 billion and then think about how much we’re going to put from the general fund to the University of Puerto Rico, which is only $500 million,” Marxuach says.

As Puerto Rico enters a new phase in the bankruptcy process, experts warn this is just the beginning.

“We’re rounding the corner and things are starting to look up, but we still have a lot of work to do,” Marxuach said.

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Former owner of bankrupt Milford strip club explains $87,000 check from notorious mobster https://companyofcyclists.com/former-owner-of-bankrupt-milford-strip-club-explains-87000-check-from-notorious-mobster/ Sat, 05 Feb 2022 00:00:39 +0000 https://companyofcyclists.com/former-owner-of-bankrupt-milford-strip-club-explains-87000-check-from-notorious-mobster/ BRIDGEPORT — The former president of a Milford strip club told a judge that an $87,000 check he cashed from a notorious mobster months before declaring bankruptcy was a “red herring which does not require further investigation. But the judge disagreed Tuesday in a federal court hearing, granting a Justice Department lawyer a request for […]]]>

BRIDGEPORT — The former president of a Milford strip club told a judge that an $87,000 check he cashed from a notorious mobster months before declaring bankruptcy was a “red herring which does not require further investigation.

But the judge disagreed Tuesday in a federal court hearing, granting a Justice Department lawyer a request for more time to gather information and evidence in the case of Joseph Regensburger, who ran the Keepers Gentlemen’s Club on Woodmont Road when he lost a lawsuit by six exotic dancers saying they weren’t being paid minimum wage or overtime.

Shortly after losing the case, Regensburger filed for bankruptcy in federal court. There, an attorney representing the dancers said bank documents he had subpoenaed show Regensburger cashed thousands of dollars in checks signed by Gus Curcio, a notorious former mobster involved with the club, from a corporation in limited liability that he controls.

The checks totaled “well over $100,000” during the one-year look-back period given to bankruptcy authorities to search a debtor’s assets, according to a filing by Holley L. Claiborne, a federal attorney. representing the trustee of the United States, which oversees bankruptcy files.

In his own filing, Regensburger said at least one of the checks he signed — dated June 11, 2020 and made out to “Cash” for $87,000 — is a “red herring.


That’s because Regensburger said the funds from the check, from the Curcio-related LLC called Majestic Management, “were immediately deposited” at the same bank into an account of another Curcio-connected LLC, Millennium Group Management.

Regensburger describes itself as a “runner” for business.

“The (United States Trustee) does not need more time to investigate anything in order to file a motion to dismiss or object to a discharge,” Regensburger wrote in court on January 12.

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How to avoid bankruptcy? Greg Dunn, a 2022 ThreeBestRated® award-winning attorney from Honolulu, Hawaii, shares some tips https://companyofcyclists.com/how-to-avoid-bankruptcy-greg-dunn-a-2022-threebestrated-award-winning-attorney-from-honolulu-hawaii-shares-some-tips/ Thu, 03 Feb 2022 08:31:03 +0000 https://companyofcyclists.com/how-to-avoid-bankruptcy-greg-dunn-a-2022-threebestrated-award-winning-attorney-from-honolulu-hawaii-shares-some-tips/ If you or someone you know is in financial deep waters and struggling to cope, just remember that the longer you ignore your debts, the worse it will get. Whether the situation is due to injury or illness (family or personal), work issues or overspending, it can be overwhelming. If it goes from bad to […]]]>

If you or someone you know is in financial deep waters and struggling to cope, just remember that the longer you ignore your debts, the worse it will get. Whether the situation is due to injury or illness (family or personal), work issues or overspending, it can be overwhelming. If it goes from bad to worse and you are thinking (or probably will think) of bankruptcy. It is important to first think about alternatives and solutions to get out of debt. Greg Dunn, a 2022 ThreeBestRated® award-winning bankruptcy and debt relief lawyer, shared tips to protect us from bankruptcy. Here are a few:

  • Live within your means.
  • Set a budget to determine how much money you can spend each month and work within that budget.
  • Don’t spend too much on credit.
  • Have no more than two credit cards and when you get your monthly credit card statement, pay it off.
  • Don’t let the amount and interest accumulate.
  • Take a course in credit counseling or financial management to learn how to manage your money and debts.

Filing for bankruptcy remains the most comprehensive way to erase debt. Since bankruptcy is not permanent, it could erase your debts and allow you to start over. Before filing, it is important to consult an experienced bankruptcy attorney and get answers to some of the questions like,

  • What is Bankruptcy?
  • What documents do you need to file for bankruptcy?
  • What happens if or when you declare bankruptcy?
  • What are the consequences of declaring bankruptcy?
  • What does bankruptcy cover? What is not covered by bankruptcy?

About Greg Dunn, Bankruptcy and Debt Relief Lawyer:

Born and raised in Oahu, Hawaii, Greg Dunn is a former Navy JAG attorney who served aboard the USS Missouri. Initially, Greg practiced commercial law, family law, bankruptcy law and debt relief. But later, he developed such a passion for helping people get rid of their debt problems that he decided to focus primarily on the area of ​​bankruptcy law and debt relief. Since then, Greg’s business has handled over 13,000 bankruptcy cases helping clients get out of debt, ending garnishments, saving homes from foreclosure and helping clients rebuild their credit.

Greg strives to provide a forward-thinking approach and competent representation outside of traditional large law firms. His firm provides competent legal representation in a welcoming environment with affordable prices so that all clients feel comfortable putting their legal issues in their own hands. They focus on helping customers achieve their goal of becoming debt free and offer a free credit rebuilding program to help them improve their credit after being discharged from bankruptcy.

ThreeBestRated® Award Opinions:

When asked if he had won the 2022 ThreeBestRated® award for one of the top bankruptcy attorneys in Honolulu, Hawaii, Greg said, “Being listed on ThreeBestRated® is one of my greatest accomplishments. in my career as a bankruptcy and debt relief lawyer. I have a solid track record over the past 30 years, having successfully completed over 13,000 bankruptcy cases and helping Hawaii residents with their financial challenges. So, I can understand why I was selected for the ThreeBestRated® because of my experience and reputation for getting the job done. Greg Dunn does it!

To consult Greg Dunn’s office, you can send an email to [email protected] or visit their website https://www.gregdunnhi.com/.

About ThreeBestRated

Three Best Rated® was created in 2014 for the simple purpose of finding the top 3 local businesses, professionals, restaurants, healthcare providers, and everything in between, in any city. Each company is meticulously hand-picked by our employees. We check reputation, history, complaints, ratings, proximity, satisfaction, trust, cost, general excellence, reviews, etc. company, using our 50-point inspection. We only display companies verified by our employees. Other places will call it “hard work” and “pointless”. We call it ‘due diligence’ and ‘the right thing to do’. Our website is updated regularly for quality and the latest business information.

Three Best Rated has the honor of helping 4 million customers every month find the best businesses in any city – effortlessly!

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Allentown Laputka Law Office LLC Explains Pennsylvania Chapter 7 Bankruptcy https://companyofcyclists.com/allentown-laputka-law-office-llc-explains-pennsylvania-chapter-7-bankruptcy/ Sat, 29 Jan 2022 06:51:09 +0000 https://companyofcyclists.com/allentown-laputka-law-office-llc-explains-pennsylvania-chapter-7-bankruptcy/ Laputka Law Office LLC; Alimony, child support, fraud debts, certain taxes, and certain billed items cannot be discharged in a Chapter 7 bankruptcy. (see Pennsylvania Exemptions) In the vast majority of cases, people who file the balance sheet will have significant credit card debt and few assets. Allentown, USA – January 29, 2022 — Laputka […]]]>

Laputka Law Office LLC; Alimony, child support, fraud debts, certain taxes, and certain billed items cannot be discharged in a Chapter 7 bankruptcy. (see Pennsylvania Exemptions) In the vast majority of cases, people who file the balance sheet will have significant credit card debt and few assets.

Laputka Law Office LLC states in a Chapter 7 Personal Bankruptcy that debtors clear their debts and start afresh. Chapter 7 bankruptcy is a liquidation where the trustee collects all non-exempt assets from the debtor and sells them. In most Chapter 7 cases, the debtors do not have any assets that are not exempt, and therefore the trustee will not sell any of the debtor’s assets. If the debtor has non-exempt assets, the trustee will sell them and pay them the proceeds. The amount remaining after that is then distributed to the creditors with a commission levied by the trustee who oversees this process.

Alimony, child support, fraud debts, certain taxes, and certain billed items cannot be discharged in a Chapter 7 bankruptcy. (see Pennsylvania Exemptions) In the vast majority of cases, people who file the balance sheet will have significant credit card debt and few assets. In a Chapter 7 personal bankruptcy, all debts are erased.

Debtors can reaffirm secured debts such as their car, furniture, or home by signing a voluntary “reaffirmation agreement. This decision does not cancel the debt, but it prevents it from being in default and allows debtors to repay a lower amount over a longer period. If the debtors decide they want to keep their house, car, or furniture and reaffirm the debt, the debtors cannot declare bankruptcy on that debt for six years. If the debtors want to reaffirm the debt, they will have to update it. If one is a little more than three or four months late, then one will have to repay those past payments in order to reaffirm their contract. This is essential for its continued commercial presence. Although it can be difficult to pay off the high balances of the most expensive assets, it can be mentioned that they want to keep certain assets such as their place of residence and their furniture, as well as certain less valuable assets such as cars or jewelry.

Once a confirmation agreement is filed with the court, it can be canceled at any time before 60 days have passed, or if the judge orders that an agreement be canceled.

When filing for personal bankruptcy, most people cite medical bills, excessive credit card debt, job loss, or divorce. These events cause not only financial hardship, but also emotional strain. If someone is struggling to pay their bills, it is important that they explore all possible solutions to ensure that the one they decide on will work in their favor in the long run.

If a person cannot repay their debts, federal bankruptcy may be an option for them. It is worth researching to learn more about the main features of this law and how it applies to your own situation. It is generally recommended to consult an experienced bankruptcy attorney if considering filing for personal bankruptcy. There are also online services that offer bankruptcy assistance, but their expertise varies. If a person decides to file for bankruptcy on their own, the process could be confusing for them. Talk to an expert first before getting started on bankruptcy paperwork. For more information, visit: https://www.laputkalaw.com/areas-of-practice/bankruptcy/chapter-7/

Contact information:
Name: Charles Laputka
E-mail: Send an email
Organization: Laputka Law Office LLC
Address: 1344 Hamilton Street, Allentown, PA 18102, USA
Website: https://www.laputkalaw.com/

Build ID: 89061939

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As US Cannabis Industry Grows, Produces Distress, Bankruptcy Relief Remains Limited – Insolvency/Bankruptcy/Re-structuring https://companyofcyclists.com/as-us-cannabis-industry-grows-produces-distress-bankruptcy-relief-remains-limited-insolvency-bankruptcy-re-structuring/ Thu, 02 Dec 2021 07:12:13 +0000 https://companyofcyclists.com/?p=544 The U.S. Bankruptcy Code provides relief to debtors to maximize value for the benefit of their creditors and other stakeholders. Such relief is extremely limited when debtors are state-legalized marijuana businesses, as they are denied access to Bankruptcy Courts because the manufacture, distribution, and dispensing of marijuana remain federal crimes under the Controlled Substances Act […]]]>


The U.S. Bankruptcy Code provides relief to debtors to maximize
value for the benefit of their creditors and other stakeholders.
Such relief is extremely limited when debtors are state-legalized
marijuana businesses, as they are denied access to Bankruptcy
Courts because the manufacture, distribution, and dispensing of
marijuana remain federal crimes under the Controlled Substances Act
(CSA), 21 U.S.C Sections 801-971.1

Although the manufacture, distribution, and dispensing of
marijuana is currently legal in many U.S. states on the state
level, the federal government’s designation of marijuana as a
controlled substance supersedes contrary state law through
application of the commerce clause.2

The Drug Enforcement Agency (DEA), a department of the
Department of Justice (DOJ), is the primary federal agency that
enforces the CSA and related federal laws. In the last decade a
series of memorandums were issued to provide specific guidance and
recommendations relating to CSA enforcement, which included, among
other things:

    1. Prioritizing the investigation and prosecution of significant
      drug traffickers
    1. Clarifying that the use of federal funds to enforce the CSA
      against cancer patients or their caregivers may not be
      efficient
    1. Clarifying specific enforcement priorities involving the
      possession, production, and sale of marijuana relating to
      noncompliance of other state laws and threats to public safety and
      health
    1. Providing guidelines to financial institutions
    1. Rescinding previous guidelines on enforcement and directing
      federal prosecutors to use discretion and weigh all relevant
      factors in their investigations and prosecutions3

The Office of the United States Trustee, also a department of
the DOJ, has taken the position that a marijuana-related business
cannot seek relief under the Bankruptcy Code because the business
itself violates the CSA, regardless of whether such business
operations are legal under applicable state law.

The direct consequence to these limitations is that U.S.
businesses and individuals involved in the cannabis industry and
facing financial distress may not seek on how to file bankruptcy relief under the
Bankruptcy Code, and if they try, they will face a prompt exit.
Yet, as more states continue to legalize/decriminalize marijuana,
it is likely that more marijuana-related businesses will enter this
industry, where some will face distress but with few avenues to
restructure, reorganize, and/or liquidate.

The tension between state laws that legalize or decriminalize
marijuana on the one hand, and the CSA’s enforcement of
marijuana as a controlled substance on the other, can be understood
by reviewing decisions made by U.S. Bankruptcy Courts when they
have been faced with marijuana-related businesses or individuals
who sought relief under Chapter 7, 11, or 13 of the Bankruptcy
Code. Bankruptcy Courts generally find that because marijuana
violates the CSA, businesses or individuals may not seek relief
under the Bankruptcy Code, regardless of whether the state in which
the business operates or the individual resides and regardless of
whether the particular debtor is directly (such as
cultivators and dispensaries) or indirectly (such as landlords)
engaged in marijuana.

Decisions in the Plan Context

A number of courts have addressed this issue in the context of
the plan process, where the courts found the plan filed by the
applicable debtor, while statelicensed to grow/dispense marijuana,
did not comply with the two Bankruptcy Code sections that required
that the plan (i) be proposed in good faith and not by means
forbidden by law, and (ii) be feasible.4 The courts
found that because the applicable debtors were engaging in conduct
that violated federal law and the funding of the plan would come
from income generated from such illegal conduct, the requirements
of Sections 1129(a)(3) and (11) would not be met. Both courts
dismissed these cases.

Similarly, in In re Arm Ventures, 564 B.R. 77, 84
(Bankr. S.D. Fla. 2017), where the debtor was a commercial landlord
with a tenant that had sought (but not yet obtained) federal and
state approval to grow and sell marijuana, the Bankrupt Court found
the plan was not feasible and was not filed in good faith, as the
plan was based on funds that included future rents from this
tenant.

Decisions Involving ‘Unclean Hands’

Related to the good faith argument, some courts have concluded
that a debtor that engages in an illegal business is not eligible
for relief, as it enters the court with “unclean hands.”
For example, in In re Rent-Rite Super Kegs W. Ltd, the
court found that the debtor’s lease of warehouse space to
tenants who were state-licensed to cultivate marijuana
(representing one quarter of its rental income) was an ongoing
criminal violation of the CSA and also put the debtor’s secured
creditor’s collateral at risk, justifying the application of
the unclean hands doctrine. 484 B.R. 799, 807 (Bankr. D. Colo.
2012).

These facts, coupled with the debtor’s inability to satisfy
Section 1129(a)(3) of the Bankruptcy Code—as any plan would
rely on revenue from illegal activity—warranted
“cause” for dismissal of the case, even though (i) the
debtor’s business was legal under its state law (Colorado) and
(ii) the court recognized that federal prosecutors may exercise
their prosecutorial discretion to decline to seek indictments under
the CSA where the federal illegal activity is legal under
applicable state law. Id. at 802-05.

Similarly, in In re Basrah Custom Design Inc., the
court found that the debtor’s lease of space to a statelicensed
medical marijuana dispensary violated the CSA and thus triggered
the application of the unclean hands doctrine that warranted
“cause” for dismissal of the case. 600 B.R. 368, 382
(Bankr. E.D. Mich. 2019).

Decisions Regarding Estate Administration

Another basis for the dismissal of cases where the debtors were
state-licensed to grow/dispense marijuana is the inability of a
Chapter 7 or Chapter 13 trustee to administer the estate case or
plan with assets that relate to illegal activity. See Arenas, 535
B.R. at 848. In contrast, the court in In re Write, (Not
Located) rejected the U.S. Trustee’s argument that Chapter 7
was unavailable to the debtors (state-licensed growers for sale to
medical clinics), finding that the ability to liquidate an estate
is not a prerequisite to a discharge.

Decisions Over ‘Direct’ vs. ‘Indirect’
Connections

While it is clear that the majority of courts do not allow
individuals or businesses directly engaged in marijuana activities
to seek relief under the Bankruptcy Code, some courts have
recognized the distinction between direct and indirect marijuana
activities. Direct engagement cases include (i) In re Arenas, where
the debtor grew and sold marijuana and leased its property to a
marijuana dispensary and (ii) Rent-Rite Super Kegs W.
Ltd
., where the debtor was a landlord that derived about 25%
of its rental income from a marijuana grower.

Although the court in In re Way to Grow, Inc., 597 B.R.
111, 123 (Bankr. D. Col. 2018) dismissed the case as the debtors
sought to expand their supply business in the cannabis industry in
states where such operations were legal, it did find that the
debtors were indirectly violating the CSA, as most of its
current customers were not in the cannabis industry.

As some refer to as the “outlier case,” the court in
Garvin v. Cook Investments NW, SPNWY, LLC, 922 F.3d 1031
(9th Cir. 2019) interpreted Section 1129(a)(3) to mean a plan must
not be proposed in an unlawful manner. The court found that such
provision did not preclude confirmation of the plan that contained
substantive provisions that are premised upon illegality, such that
a court only is required to look at the plan proposal and not the
terms of the plan for purposes of plan confirmation. In
Garvin, the court confirmed a plan that included a
continuing lease to an entity growing marijuana. It is worth noting
that the debtor was not engaged in the cultivation, production, or
distribution of marijuana.

Decisions Advocating Flexibility

Despite the few bright-line rules that have emerged from
decisions published to date, some courts have favored the need for
flexible latitude to deal with variations, as opposed to
bright-line rules. As advocated by the court in In re
Burton
, 610 B.R. 633, 638 (B.A.P. 9th Cir. 2020), a Bankruptcy
Court should “be explicit in articulating its legal and
factual bases for dismissal in cases involving
marijuana”5 and not take the approach that the mere
presence of marijuana automatically prohibits a debtor from
bankruptcy relief.6

As explained in In re Olson, this articulation should include an
evaluation as to whether and how the debtor was actually violating
the CSA and/or why dismissal of the case was necessary. 2018 WL
989263 at *6 (Tighe, J., Concurring). The court in Olson also
recognized the increasing need for courts to address the needs of
litigants who are in compliance with state law while not excusing
activity that violates federal law. Id. at *6.

Similarly, the court in In re Malul recognized the
evolution of case law and that potential CSA violations will be
highly factual and specific. 614 B.R. 699, 714 (Bankr. D. Col.
2020). Similarly, although it ultimately dismissed the Chapter 11
case, the court in In re CWNevada LLC recognized the
possibility that Chapter 11 relief could be appropriate for an
individual or entity directly involved with marijuana-related
businesses. 602 B.R. 717, 747 (Bankr. D. Nev. 2019).

Bankruptcy Courts Are Sympathetic

While a majority of courts have dismissed cases where the debtor
was involved in marijuana-related businesses, many have expressed
empathy for debtors that are in need of bankruptcy relief but face
little to no practical alternatives. Way to Grow, 597 B.R.
at 132.

In In re Arenas, the court was sensitive to the fact
that the joint debtors, licensed in Colorado to grow and dispense
marijuana, “have not engaged in intrinsically evil
conduct” but could not seek bankruptcy relief “because
their marijuana business activities are federal crimes.” 535
B.R. at 849, 850.

The court in Way to Grow, 597 B.R. at 132, acknowledged
that the debtor did not seek bankruptcy in bad faith and
“[b]ut for the marijuana issue, this would be a relatively
run-of-the-mill Chapter 11 proceeding.” 597 B.R. at 133. The
court stated further that “if the result in this case is
unjust, Congress alone has power to legislate a solution.”
Id.

The court in In re CWNevada LLC went further to state until
Congress does so, “all parties engaged in or having a
significant connection with the marijuana industry face a creeping
absurdity” as they can rely on state law to expand businesses
and investments, yet such businesses “expose all of them to
possible federal criminal prosecution,” as well as create
uncertainty for states and local governments that receive taxes
from such businesses. 602 B.R. at 739-40.

One court aptly summarized the dilemma as follows:

If the uncertainty of outcomes in marijuana-related bankruptcy
cases were an opera, Congress, not the judiciary, would be the fat
lady. Whether, and under what circumstances, a federal bankruptcy
case may proceed despite connections to the locally
“legal” marijuana industry remains on the cutting-edge of
federal bankruptcy law. Despite the extensive development of case
law, significant gray areas remain. Unfortunately, the courts find
themselves in a game of whack-amole; each time a case is published,
another will arise with a novel issue dressed in a new shade of
gray. In re Mulul, 614 B.R. at 701.

What’s a Marijuana-Related Debtor to Do?

While there may be creative ways for a debtor involved with
state-legalized marijuana activities to be eligible for bankruptcy
relief,7 on a practical level, alternatives to
bankruptcy protection remain dismal. These limitations also harm
creditors, as they, too, are denied their benefits of bankruptcy
relief, including the maximization of asset value, equality, and
transparency.

Many in the turnaround and restructuring industry appreciate how
the Bankruptcy Code provides unique and powerful tools that are not
otherwise available outside of the official bankruptcy process.
Unless or until changes are made to federal law, distressed
companies and individuals in the cannabis industry will continue to
face uncertainty and limited bankruptcy relief.

Footnotes

1. The CSA governs the the manufacture,
distribution, and dispensing of controlled substances in the U.S.,
defined as a “drug or other substance, or immediate precursor,
included in schedule I, II, III, IV or V [of the CSA].” 21
U.S.C. Section 802(6). The CSA was amended by the Agriculture
Improvement Act of 2018, Public Law 115- 334, to exclude hemp and
THC found in hemp from the definition of marijuana.

2. See Gonzales v. Raich, 545
U.S. 1, 29 (2005).

3. See generally, Memorandum from David
W. Ogden, Deputy General, to Selected United States Attorneys on
Investigations and Prosecutions in States Authorizing the Medical
Use of Marijuana (October 19, 2009), available at justice.gov/archives/opa/blog/memorandum-selected-united-state-attorneys-investigations-and-prosecutions-states;
Memorandum from James M. Cole, Deputy General, for United States
Attorneys on Guidance Regarding the Ogden Memo in Jurisdictions
Seeking to Authorize Marijuana for Medical Use (June 29, 2011),
available at justice.gov/sites/default/files/oip/legacy/2014/07/23/dag-guidance-2011-for-medical-marijuana-use.pdf;
Memorandum from James M. Cole, Deputy General, to All United States
Attorneys on Guidance Regarding Marijuana Enforcement (Aug. 29,
2013), available at justice.gov/iso/opa/resources/3052013829132756857467.pdf;
Memorandum from James M. Cole,Deputy General, to All United States
Attorneys on Guidance Regarding Marijuana Related Financial Crimes
(Feb. 14, 2014) (available at justice.gov/sites/default/files/usao-wdwa/legacy/2014/02/14/DAG%20Memo%20-%20Guidance%20Regarding%20Marijuana%20Related%20Financial%20Crimes%202%2014%2014%20%282%29.pdf;
Department of the Treasury Financial Crimes Enforcement Network,
Guidance FIN-2014-G001 (Feb. 14, 2014), available at fincen.gov/sites/default/files/shared/FIN-2014-G001.pdf;
Memorandum from Jefferson B. Sessions III, Attorney General, to All
United States Attorneys on Marijuana Enforcement (Jan. 4, 2018),
available at justice.gov/opa/pr/justice-department-issues-memo-marijuana-enforcement.

4. See Sections 1129(a)(3) and (11) of
the Bankruptcy Code; In re Mother Earth’s Alt. Healing
Coop., Inc
., Case No. 12- 10223-LT11 (Bankr. S.D. Cal)
(Chapter 11 plan); In re Arenas, 535 B.R. 845, 847 (B.A.P. 10th
Cir. 2015) (Chapter 13 plan).

5. The court in Burton concluded
the Bankruptcy Court did in fact sufficiently articulate the legal
and factual bases for dismissing the debtor’s case because the
continuation of the case would likely require the trustee or court
to become involved with administering assets related to an
ownership interest in an entity involved in litigation related to
growing and selling marijuana.

6. Id. at 610 B.R. at 637-38
(citing In re Olson, 2018 WL 989263, at *6 (B.A.P. 9th
Cir. Feb. 5, 2018) (remanding for the bankruptcy court to
“articulate the findings that led it to determine that Debtor
was violating the CSA and what legal standard it relied upon in
dismissing the case”); In re Johnson, 532 B.R. 53, 59 (Bankr.
W.D. Mich. 2015) (rejecting the notion that dismissal was a
foregone conclusion and giving the debtor option to remain in
bankruptcy by ceasing illegal activities); Northbay Wellness Grp.,
Inc. v. Beyries, 789 F.3d 956, 960-61 (9th Cir. 2015) (affirming
bankruptcy court’s confirmation of a Chapter 11 plan where the
plan derived indirect support from rental income from a lessor
engaged in a marijuana growing business).

7. For example, it has been suggested
that a debtor could agree to discontinue involvement with
marijuana-related activities business (see In re Johnson, 532 B.R.
at 58 or the debtor proposes a plan that meets the requirements of
the Bankruptcy Code where the funding of the plan comes from a
source unrelated to marijuana activities. See In re
McGinnis
, 453 B.R. 770, 773 -74 (Bankr. D. Or. 2011).

Originally published by Journal of Corporate
Renewal
.

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The collapse that ruined lives revealed the dark side of business https://companyofcyclists.com/the-collapse-that-ruined-lives-revealed-the-dark-side-of-business/ Thu, 02 Dec 2021 05:55:24 +0000 https://companyofcyclists.com/the-collapse-that-ruined-lives-revealed-the-dark-side-of-business/ The fall of Enron, then ranked seventh in the United States, affected thousands of employees and rocked Wall Street. File photo of the entrance to the head office of Houston-based energy trader Enron at 1400 Smith in downtown Houston, Texas. AFP On December 2, 2001, 20 years ago, energy giant Enron – then the seventh […]]]>


The fall of Enron, then ranked seventh in the United States, affected thousands of employees and rocked Wall Street.

File photo of the entrance to the head office of Houston-based energy trader Enron at 1400 Smith in downtown Houston, Texas. AFP

On December 2, 2001, 20 years ago, energy giant Enron – then the seventh largest company in the United States – filed for bankruptcy, sending shock waves through the investor world, leading to historic layoffs and ravaging retirement savings accounts.

The collapse of Enron, which held more than $ 60 billion in assets, continues to generate interest and spark much debate about improving accounting standards and practices.

So what was all the hubbub about and why is it still being talked about today?

The Rise of Enron

In 1985, Enron was formed by the merger of Houston Natural Gas Company and Omaha-based InterNorth Incorporated. Kenneth Lay, who had previously been CEO of Houston Natural Gas, became CEO and chairman of Enron and quickly rebranded the company as an energy trader and supplier.

With the help of Jeffrey Skilling, Enron quickly dominated the natural gas contract market and the company began to generate huge profits on its transactions.

The skills have also changed the culture of the company and put more emphasis on aggressive trading. One of his brightest recruits was Andrew Fastow, who quickly rose through the ranks to become the chief financial officer of Enron. Fastow oversaw the financing of the company through investments in increasingly complex instruments.

The fall of Enron

However, as they say, what goes up must come down and the same happened to Enron. In the fall of 2000, Enron was starting to crumble under its own weight. Faced with increased competition in the energy business, the company’s profits began to decline rapidly.

In an attempt to hide the losses, the company created an array of related business entities and used accounting tricks to cover up massive business losses and large debts. They adopted the dubious tactic of “mark-to-market accounting”, in which the company recorded future unrealized gains from certain trading contracts in the current income statements, giving the illusion of higher current profits. .

These tactics eventually stopped working, and in October 2001, Enron revealed a huge quarterly loss of $ 638 million. Soon after, the Securities and Exchange Commission (SEC) began investigating the company’s transactions and deals.

Investigations revealed a horrific story of accounting fraud in which Arthur Andersen, then one of the world’s largest accounting firms, ultimately revealed that his employees destroyed Enron documents that could have been used to prosecute the business.

Enron went into a deep dive; The company’s shares, which had peaked at $ 90 per share in mid-2000, fell below $ 12 in early November 2001.

On November 7, 2001, his rival Dynegy voted to acquire the company at a very low price of around $ 8 billion in shares. However, days later, Dynegy ended his merger talks, dropping Enron shares to less than $ 1 a share. Finally, without an option, Enron filed how to file bankruptcy on December 2, 2001.

On the day they filed for bankruptcy, thousands of employees were ordered to pack their belongings and were given 30 minutes to leave the building.

Lawsuits and legislation

Arthur Andersen was one of the first victims of Enron’s notorious disappearance. In June 2002, the company was convicted of obstructing justice for shredding Enron’s financial documents in order to conceal them from the SEC. The conviction was later overturned on appeal; however, the company has been deeply dishonored by the scandal.

Enron founder and former CEO Kenneth has been convicted of six counts of fraud and conspiracy and four counts of bank fraud. Prior to conviction, he died of a heart attack in Colorado.

Former Enron star CFO Andrew Fastow has pleaded guilty to two counts of wire fraud and securities fraud for facilitating Enron’s corrupt business practices. He eventually made an agreement to cooperate with federal authorities and served more than five years in prison. He was released from prison in 2011.

Former Enron CEO Jeffrey Skilling was convicted of 19 of 28 counts of securities fraud and wire fraud and acquitted of nine others, including insider trading charges. He was sentenced to 24 years and 4 months in prison. In 2013, the United States Department of Justice struck a deal with Skilling, which saw him reduce his sentence by 10 years.

Lessons from Enron

The Enron collapse was a financial disaster for thousands of people, and its indirect impact injured millions more.

However, this also led to the passage of the Sarbanes-Oxley Act in 2002. This legislation imposed severe penalties for destroying, altering or fabricating financial records. The law also prohibited audit firms from carrying out concurrent consulting activities for the same clients.

With contributions from agencies

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How to make a good impression in bankruptcy court https://companyofcyclists.com/how-to-make-a-good-impression-in-bankruptcy-court/ Wed, 01 Dec 2021 23:10:16 +0000 https://companyofcyclists.com/how-to-make-a-good-impression-in-bankruptcy-court/ Chapter 11 debtor’s financial information What is the best way to present an Chapter 11 debtor’s financial information be presented to bankruptcy courts to give the best impression? In order to provide the court with an accurate representation of the effects of operations in Chapter 11 and to ensure that the debtor has enough time to […]]]>

Chapter 11 debtor’s financial information

What is the best way to present an Chapter 11 debtor’s financial information be presented to bankruptcy courts to give the best impression? In order to provide the court with an accurate representation of the effects of operations in Chapter 11 and to ensure that the debtor has enough time to meet his objectives?

The pandemic has led to severe revenue reductions for many companies. The returning to normal has begun however, in many industries the business environment has not reached pre-pandemic levels.

For certain companies this was the tipping point which is why filing bankruptcy guide on Chapter 11 may now be needed to facilitate an orderly liquidation process of the assets of the debtor. For other companies with solid foundations, the debtor might require Chapter 11 relief. Why? Even though they’re run well or producing products that continue to be sought-after or investing enough in their business (or the three) certain companies do not have the capital to stand up. Long to the storm.

In the end, when rates of interest increase for over-leveraged businesses especially those that have survived solely by relying on Paycheck Protection Program funds, will have to think about the possibility of restructuring debt, whether in or out of the courtroom.

Bankruptcy cases

In the beginning of bankruptcy proceedings everyone involved particularly the bankruptcy judge to know the reason for this bankruptcy case. Did the debtor submit his petition because he produces a defunct product such as Polaroid cameras and his business has been declining steadily? Did the debtor file for bankruptcy after he was hit with an unfavorable ruling? Was the bank’s deposit a result of excessive leverage that was incurred in an earlier acquisition? Perhaps it is because the business is operating in an industry which has grown to be too big?

The responses to these questions will affect the judge’s initial impressions of the matter and maybe, as follows: (1) whether he or she approves urgent assistance requests (such as the sale in bulk of debtor’s assets) (2) the length of time the debtor is required to issue an reorganization plan, and (3) whether or not the judge allows a secured lender to exercise the authority to take possession of collateral.

In some instances Rome may appear to be in flames unless you dig deeper. Judges don’t want to delay liquidation of a debtor and cause job loss when they believe that the odds are in favor of the reorganization to be successful. However when the reorganization seems difficult and the debtor has a substantial cash loss that the judge will not want to delay liquidation.

Cash flows

In the case that fall under Chapter 11, this is generally cash flow. The cash flows must be reported every month in accordance with the United States Trustee, the administrator of bankruptcy within the Department of Justice. In general, an income statement will not be required (but as explained below, the best option is to file a 3 column income statement regardless). The lenders are more concerned with whether the borrower is burning funds. If they’re burning money the lenders are worried that they might need to pump more capital, something they prefer not to do. A depletion of liquidity can also be an indication that the borrower’s main business has not stabilized.

Although the court might need the submission of a monthly cash flow report it is best to provide to the judge a cash flow report that includes and does not include (1) those items that are related to Chapter 11 (such as professional fees and one-off financing expenses) which would not be incurred in any other context than Chapter 11 and (2) non-recurring items that aren’t related in ongoing activities (such like lease payment getting rejected or the severance payment that is included in the reduction of personnel). This is due to Chapter 11 expenses and non-recurring items may either overestimate negative cash flows or limit positive cash flows.

Chapter 11 case

In the beginning of the Chapter 11 case, the major question is whether current financial performance of the debtor can be an accurate reflection of how the debtor is likely to conduct themselves when they enter Chapter 11. Everyone wants to sort out their finances and reduce their expenses, and negotiate with creditors, and show that it’s a viable option. It is unfortunate that very only a few people file bankruptcy and immediately see the pendulum shift towards profit.

They often recognize what must be done, but they need time to put in place the solutions. It will take time before the solutions are visible in the financial statements of the debtor. The debtor might require some more time “burn off” the cost of certain expenses that aren’t recurring, but can result in a negative effect on financial results. In the end, the debtor requires time for a shaky market to resume normal in certain situations.

The financial report to the court should be presented in three columns. The financial results on their own could present a false image before an bankruptcy judge. Instead the judge should be presented with three columns of information. The first column is a representation of real results. The second column contains the list of adjustments that are required to restore actual financial results in order to remove the impact of unusual items. The third column contains the financial results after being restated which show what the actual results would have been without the extraneous items.

Every item in column 2 should be explained to allow the court to decide if it is appropriate to change the part of column 3. This process must also be used for the cash flow statements as well as the statement of income (although the income statement is typically not a part of the US trustee’s reporting obligations for the month of each month). The goal is to allow the court to determine how the principal business of the debtor is operating in the absence of the issues that led him to bankruptcy.

Failure to allow the bankruptcy judge the opportunity to examine (1) the debtor’s conduct in ongoing transactions prior to the bankruptcy would have been in absence of any extraordinary events, as well as (2) what the “normalized” results of the bankruptcy. The bankruptcy process can decrease the likelihood that you will have Chapter 11 success. It is essential that the financial advisor of the debtor clearly explains the fundamentals of the adjustments. Without these the court will see an inaccurate image.

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A day before the bankruptcy leak, Musk quietly hinted at making SpaceX public https://companyofcyclists.com/a-day-before-the-bankruptcy-leak-musk-quietly-hinted-at-making-spacex-public/ Wed, 01 Dec 2021 20:51:12 +0000 https://companyofcyclists.com/a-day-before-the-bankruptcy-leak-musk-quietly-hinted-at-making-spacex-public/ So we’re doing this all over again, huh? About two months ago a Twitter user published screenshots from a 2013 email that SpaceX CEO Elon Musk sent to employees, in which he explained why he wanted to keep SpaceX private. Then, the day before yesterday, Musk suddenly responded to the months-old tweet, cryptically saying that […]]]>


So we’re doing this all over again, huh?

About two months ago a Twitter user published screenshots from a 2013 email that SpaceX CEO Elon Musk sent to employees, in which he explained why he wanted to keep SpaceX private.

Then, the day before yesterday, Musk suddenly responded to the months-old tweet, cryptically saying that “a lot has happened in eight years” – perhaps a clue that the billionaire is in the process of going public with another major company.

At least that’s an interpretation of Musk’s answer.

“But has a lot changed? ” CNBC space reporter Michael Sheetz asked in response. “Or do you think SpaceX as a whole still won’t be released to the public until the Mars missions take place, with only a possible Starlink IPO before that?”

Musk stopped short, however, and has yet to respond to Sheetz. In March 2020, Musk also laughed the idea of ​​SpaceX turning Starlink into a stand-alone public company.

Notably, the CEO’s tweet was sent a few hours before SpaceExplored published a leaked email Musk sent to SpaceX employees claiming the company is in crisis and faces “real risk on how to file bankruptcy”

In 2013, Musk tried to reassure SpaceX employees that “if you think SpaceX will perform better than the average public company, then our stock prices will continue to appreciate at a faster rate than the stock market.” .

The CEO argued that state-owned companies often go through “extreme volatility,” which – if Musk’s Tesla electric car company can be trusted – is a fair assessment.

If Musk’s comment actually means he’s planning to go public with SpaceX, it could mean the space company is up for a tough race.

Over three years ago, Musk caused a huge uproar when he tweeted that it “plans to privatize Tesla at $ 420” with “guaranteed funding,” about eight years after the company went public in 2010.

What turned out to be a misguided joke on the grass landed him an embarrassing Securities and Exchange Commission lawsuit.

In his 2013 letter, Musk argued that Tesla and SolarCity were public because “they had no choice.”

He also estimated that SpaceX was worth around $ 4 billion at the time. Today, SpaceX is worth much more, reaching a valuation of 100 billion dollars in October.

Then there is the fact that as a public company, SpaceX would face a full glove of government bureaucracy – and if recent trends are to be followed, SpaceX prefers to move forward at a breakneck pace.

Has Musk learned his lesson from his fateful Tesla tweet? Considering he was tweet about doing a dump this week again, investors will have to remain vigilant.

READ MORE: Elon Musk responds to tweet on SpaceX keeping private with “a lot has happened in 8 years” [Bloomberg]

Learn more about Elon Musk: Elon Musk laconically tackles SpaceX bankruptcy leak

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