Summary: The national law firm of Binder & Binder has filed for Chapter 11 bankruptcy.
One of the more recognizable law firms in the country because of its television commercials, Binder & Binder, has filed for Chapter 11 bankruptcy, according to Crain’s New York Business.
The firm is based in Long Island and handles Social Security disability issues. It filed for bankruptcy on Thursday.
The firm will be able to decrease its institutional debt after payments from the federal government slowed down. This has hurt the firm’s cash flow, according to Kenneth Rosen, who is with Lowenstein Sandler. Lowenstein Sandler is representing Binder & Binder in the filing.
In court papers filed with U.S. Bankruptcy Court in the Southern District of New York, the firm listed assets and liabilities of $10 million and $50 million.
“We have filed papers to pay our employees in the ordinary course. We don’t want the employees to feel anything; they will not. We don’t want the clients to feel anything; they will not,” Rosen said. “The last thing we would want is there to be any interruption. It’s business as usual.”
To read more about Lowenstein Sandler, click here.
A secured loan of $23 million was made by US Bank and Capital One to the firm. Rosen said that the financing will help the firm continue operations without interruption.
There are almost 900 employees across 13 states for the firm with more than 57,000 clients. There are New York offices in Long Island City, Manhattan and the Bronx. There is also an office in Hauppauge, Long Island.
The largest unsecured creditor of the firm was Stellus Capital Management, which is based in Houston. The firm was loaned $16.7 million by the company. Some of the other large creditors of the firm were Google and Integrated Media Solutions with $800,000 and $2.7 million owed for services.
To read more about Chapter 11 bankruptcy, click here.
Development Specialists, located in Manhattan, will provide a chief restructuring officer to manage the process and improve the operating performance of the firm. The firm was founded in 1975 by Harry and Charles Binder, two brothers. Charles starred in the firm’s television commercials.
Will Binder & Binder survive bankruptcy? Use our poll to share your thoughts.
Image credit: ispot.tv