Lily Robotics, a startup that quickly amassed tens of millions of dollars in pre-orders from around the world following its release of a viral video showing its prototype of an autonomous flying camera in 2014, has filed for Chapter 11 bankruptcy protection. After close to three years, numerous loans and investments still could not help the company and its vendors build a drone that worked to the design's specifications.

The company promised refunds to those who pre-ordered the product. Because a working product was not produced and there is no inventory to sell, Lily Robotics is selling another asset to recoup as part of its bankruptcy - its patents and other intellectual property.

Digital sports network Scout Media Inc. has filed for Chapter 11 bankruptcy, the process through which a business can restructure it operation to cut down on expenses and ultimately become profitable again after reaching an overwhelming level of debt. For Scout Media, this came after three of its creditors pushed the company into bankruptcy through an involuntary Chapter 11 petition, claiming that it owed them a total of approximately $800,000.

When a large company accrues debt, many different parties are affected. Not only do the company's leaders suffer financially, its employees as well as its creditors can suffer because of the money tied up in the company. Chapter 11 bankruptcy generally involves the sale of a company and its assets, often to a holding company that then revamps it in an attempt to help the company recover financially.

In 2016, online media group Gawker filed for Chapter 11 bankruptcy. It is now in the process of developing its bankruptcy plan, which will allow for its payment to individuals and groups involved in litigation against the group. Over the years, multiple parties, including former professional wrestler Hulk Hogan, have filed claims against the group alleging misconduct. Under its current proposal, Gawker will allocate $40 million for the repayment of its outstanding debts, which include its payment to Hogan and other parties, including a freelance contributor to the site who filed a lawsuit regarding a piece she wrote about the dating app Tinder. Under the deal, another $40 million is set aside for parties with stakes in Gawker

According to a lawyer for the company, the current bankruptcy plan will allow for Gawker to repay its debts to its creditors. This is the purpose of any bankruptcy case – to allow an indebted party to get out of debt by repaying its creditors. This is true regardless of the size of the company, whether it is a multi-million dollar media group or a small retail store. Chapter 11 involves the reorganization of a company in an effort to make it profitable once again. In August 2016, it was announced that television network Univision purchased Gawker Media and renamed the set of assets Gizmodo Media Group. Univision is the largest Spanish-language broadcaster in the United States.

Hostess has been a favorite snack for Americans young and old since 1919. The company first produced its famous cupcake, a dark chocolate-flavored confection topped by an iconic white icing swirl, nearly a century ago and in the decades since, has followed with classic products like fruit pies, Twinkies, Ding Dongs, Ho Hos, and Sno Balls. It most recently made headlines in 2012 when it filed for Chapter 11 bankruptcy. Not long afterward, Apollo Global Management purchased the snack portion of United States Bakery's business, purchasing the Hostess brand and the right to make all products under its umbrella. Now, four years into the life of this latest iteration of the brand, owners Apollo Global Management and Metropoulos & Co. are taking the company public by selling the majority of the company to Gores Holdings, a private acquisition company run by The Gores Group.

Businesses rarely remain unchanged over the years. Since its inception, Hostess has weathered the events of ten decades, taking the ups and downs that came with them. If you are a business owner, look to Hostess as an example of resilience. 2012 was not the first time the company filed for bankruptcy.

Surfwear brand Quiksilver, Inc., which owns apparel brands Roxy and DC shoes, was granted permission to exit Chapter 11 bankruptcy in late January 2016. The California-based apparel and retail company filed for Chapter 11 bankruptcy in 2015 after years of slumping sales, largely due to the rise of fast fashion brands like H&M and a decreased interest in the surf and skate lifestyle.

In a Chapter 11 bankruptcy, a company restructures to repay its debts and allow it to recover. For Quiksilver, this meant selling lower-performing labels and focusing on its core three brands, Quiksilver, Roxy, and DC. It has now reached an agreement by which its senior creditor, Oaktree Capital Management LP, has paid $14 million in cash and a percentage of equity in the company to become its largest shareholder.

Time will tell whether the company will recover from its economic difficulties and thrive. Only the American Quiksilver brand filed for bankruptcy – this filing does not affect Quiksilver's European or Asian brands.
Leaving Bankruptcy Protection