roosevelt Posted January 13, 2009 Share Posted January 13, 2009 since the bulk of the issues (from the article) seem to be monetary, it doesn't seem like they'd be able to: if they aren't receiving the tuition they expect, how can they afford food and gas amongst other things? even if this is simply due to decline in membership not necesarily lack of payment by members as is with other corps, it seems harder to imagine a return for this season. Drum corps operate in the red all the time.... this time last year phantom regiment was begging for money online for help paying off hundreds of thousands of dollars in past debt, and they did ok this past year. It is nothing new for businesses to function after declaring bankruptcy. Obviously it is not good, but often times filling for bankruptcy is the only way that they CAN keep functioning. Link to comment Share on other sites More sharing options...
Gary Matczak Posted January 13, 2009 Share Posted January 13, 2009 Drum corps operate in the red all the time.... this time last year phantom regiment was begging for money online for help paying off hundreds of thousands of dollars in past debt, and they did ok this past year. Raising money to get out of the red is a LOT different than having to declare bankruptcy It is nothing new for businesses to function after declaring bankruptcy. Obviously it is not good, but often times filling for bankruptcy is the only way that they CAN keep functioning. understood,..............but you speak as if it a normal course of business,...........like buying copy paper,............ corporations are only allowed to continue after reorganization that includes special circumstances,............such as new orders, guarenteed revenue stream, etc,..................I can tell you from experience, if you are owed money from a bankrupt entitiy, reorganization or not, you might as well forget about getting paid, which does not leave a good taste,.................and it is VERY difficult to raise money and/or goodwill, especially in your own community Link to comment Share on other sites More sharing options...
Richard Posted January 13, 2009 Share Posted January 13, 2009 I think the biggest question that this brings up is how did Spartans pass a DCI evaluation just a year ago? What exactly is DCI looking at during these evaluations? Link to comment Share on other sites More sharing options...
Jeff Ream Posted January 13, 2009 Share Posted January 13, 2009 this time last year the world was a much different economic place, and a lot of people lost a lot of money fast. sadly, some corps get so hung up on bingo, they forget to explore other avenues of fundraising. you cant rely on one goose to lay the golden egg forever Link to comment Share on other sites More sharing options...
bill Posted January 13, 2009 Share Posted January 13, 2009 (edited) Raising money to get out of the red is a LOT different than having to declare bankruptcyunderstood,..............but you speak as if it a normal course of business,...........like buying copy paper,............ corporations are only allowed to continue after reorganization that includes special circumstances,............such as new orders, guarenteed revenue stream, etc,..................I can tell you from experience, if you are owed money from a bankrupt entitiy, reorganization or not, you might as well forget about getting paid, which does not leave a good taste,.................and it is VERY difficult to raise money and/or goodwill, especially in your own community From my limited understanding, a re-organization under the federal Chapter 11 bankruptcy code has to do a lot with the creditors (themselves) accepting a repayment plan offered by the business and/or organization itself, if they (the creditors) do not accept a plan, the bankruptcy action itself may be petitioned by the creditors to be converted to a Chapter 7 and all assets liquidated. All government (local-state-federal) are considered priority creditors along with the property lien holders. Edited January 13, 2009 by bill Link to comment Share on other sites More sharing options...
The Oz Posted January 13, 2009 Share Posted January 13, 2009 From my limited understanding, a re-organization under the federal Chapter 11 bankruptcy code has to do a lot with the creditors (themselves) accepting a repayment plan offered by the business and/or organization itself, if they (the creditors) do not accept a plan, the bankruptcy action itself may be petitioned by the creditors to be converted to a Chapter 7 and all assets liquidated. All government (local-state-federal) are considered priority creditors along with the property lien holders. [Disclaimer: I am not an accountant, attorney, or financial wizard.] I agree with Bill. Simplifying the matter so that I can understand it, the bankrupt organization develops a plan to return from bankruptcy and presents the plan to its new partners – its creditors and the court. If the creditors and the court don’t accept the plan (basically, they believe that liquidation is the best option to retrieve their money), the filing organization is forced into liquidation. The best approach may be to take a year off (reduce costs), rebuild bingo, negotiate with the creditors, pay down some debt, and, if you can show progress, return to the field in a year or two. The changing-the-name discussion is a farce. If you change the name, you still have the same problems. You can’t hold onto your assets and walk away from the debt. Your creditors are not going to go along with that plan. You could start a new corps using new money. And maybe purchase the assets of the old corps with the new money. Then the old corps hands the money to its creditors. And the old corps folds. But where do you get the new money? Link to comment Share on other sites More sharing options...
Dave Posted January 13, 2009 Share Posted January 13, 2009 I hope this works out for them. But to be honest, even if they manage to field I can't see how that would help their situation--if anything, it stands to worsen it. Their best bet is to dig in and take care of their debts and anything else, and try again next year. They run a risk of never fielding again, but there's risk involved in this no matter what they do. Link to comment Share on other sites More sharing options...
coats1952 Posted January 14, 2009 Share Posted January 14, 2009 Drum corps operate in the red all the time.... this time last year phantom regiment was begging for money online for help paying off hundreds of thousands of dollars in past debt, and they did ok this past year.It is nothing new for businesses to function after declaring bankruptcy. Obviously it is not good, but often times filling for bankruptcy is the only way that they CAN keep functioning. Functioning to create more debt.Drum corps is not big corp. and there will be no bail out in the end.Sooner or later someone will have to be held accountable and that's never pretty. Link to comment Share on other sites More sharing options...
sobe Posted January 14, 2009 Share Posted January 14, 2009 sadly, some individuals get so hung up on bingo, they forget to explore other avenues of fundraising. you cant rely on one goose to lay the golden egg forever fixt Link to comment Share on other sites More sharing options...
84BDsop Posted January 14, 2009 Share Posted January 14, 2009 fixt Not really...unless it was one person on the whole board who kept bingo as the sole funding source. Bingo has been the traditional fundraiser for so MANY corps over the years that some corps choose to go that route and not explore other sources... Link to comment Share on other sites More sharing options...
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