If you have had the misfortune to get injured by a major corporation in bankruptcy, we have a bit of advice: good luck!
We have a score of clients who have been injured by A & P, Food Emporium, Pathmark, St. Vincent’s Hospital, and Interstate Bakeries. All of theses defendants are bankrupt even though they are still doing business (with the exception of St. Vincent’s). Our clients injured by these corporations have little possibility of a recovery.
A case example is Hostess Brands. We recently read that Hostess Brands, formerly known as Interstate Bakeries, has filed for bankruptcy protection for a second time on January 11, 2012. Hostess makes many of America’s iconic breads and cakes, such as Wonder Bread, Twinkies, and Ding Dongs.
It seems that Hostess Brands is unable to compete. It seeks further relief from its obligations. Essentially, it wants to pay its debtors and retired employees less. Otherwise, it threatens to liquidate the company.
Its move to file for a second bankruptcy has delayed all settlements. We had two clients injured by Interstate Bakeries trucks back in 2004, and we settled their cases almost six years ago. We have yet to see a dime!
Therefore, if a corporate defendant goes bankrupt, your recovery may either be delayed greatly or vanish.
It is highly ironic that an injured person has less of a chance of getting a fair recovery from a bankrupt A & P than from a bankrupt Mom & Pop Grocery, Inc. This is because A & P self-insures. In other words, it has no insurance, and it can settle for pennies on the dollar. In comparison, if Mom & Pop has an insurance policy, it is more likely that the injured client will get a fair recovery.
If you have been injured in an accident, please feel free to contact me for a free consultation at 800-581-1434 or write to email@example.com.
Mark E. Seitelman, 4/6/12, www.seitelman.com.