According to an article by the Los Angeles Times the City of Stockton, California is allowed to proceed on the path of their chapter 9 municipal bankruptcy. This is a huge development as municipal bankruptcies are not only rare, but exceedingly hard to pursue.
The battle will be over the treatment of Stockton's pension liability of close to a billion. That's right, close to a billion dollars of unfunded pension liability. Does this sound familiar? Illinois' pension system is also in a mess and its municipalities are going to be hard pressed to avoid Stockton's fate.
My opinion is that Stockton is thinking smart as there is no way that its citizenry can be expected to make up this shortfall by way of higher taxes and austerity measures.
The author, Ben W. Koyl, is an attorney located in Chicago, IL. He is the principal of the Law Office of Ben W. Koyl, P.C. with offices located in the Chicago Loop, Beverly Woods / Blue Island, and Joliet, IL. The firm's website is http://www.chicagobklaw.com.
Tuesday, April 2, 2013
Friday, March 29, 2013
Dex One Files for Chapter 11 Bankruptcy, Not Really Surprised
It looks as if Dex One has filed for chapter 11 bankruptcy protection, allowing it to merge with struggling Supermedia, Inc. As stated in the Reuters article, the companies are attempting to merge thereby allowing them to repackage their debt and ultimately to free up cashflow for shareholders.
Well Dex's stock went up after the announcement of this merger, but I believe that this is temporary unless this new company is willing to do things differently.
I can tell you from personal experience as a Dex client that print advertising is nearly dead and online directories like dexone.com etc. are not nearly as efficient or effective as a nice Google search placement. Frankly, if you take those two out Dex can only be an SEO company, and they will need to come down in price. After my contracts are up with them I am done for sure with them.
The author, Ben W. Koyl, is an attorney located in Chicago, IL. He is the principal of the Law Office of Ben W. Koyl, P.C. with offices located in the Chicago Loop, Beverly Woods / Blue Island, and Joliet, IL. The firm's website is http://www.chicagobklaw.com.
Well Dex's stock went up after the announcement of this merger, but I believe that this is temporary unless this new company is willing to do things differently.
I can tell you from personal experience as a Dex client that print advertising is nearly dead and online directories like dexone.com etc. are not nearly as efficient or effective as a nice Google search placement. Frankly, if you take those two out Dex can only be an SEO company, and they will need to come down in price. After my contracts are up with them I am done for sure with them.
The author, Ben W. Koyl, is an attorney located in Chicago, IL. He is the principal of the Law Office of Ben W. Koyl, P.C. with offices located in the Chicago Loop, Beverly Woods / Blue Island, and Joliet, IL. The firm's website is http://www.chicagobklaw.com.
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