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Los Angeles Corporate & Securities Law Blog

Business litigation may be the answer

As businesses work together to increase efficiency and production, it is no surprise that disputes arise. Most often these disputes come about because one business did not follow through with a task or promise that was laid out in an agreement. Other times, there is a question about an agreement itself and who is promising what. When these situations arise, it is sometimes best to proceed with business litigation.

Litigating a business matter in a court of law may seem intimidating to some individuals. However, a court of law is sometimes necessary to hold a business to its promises and ensure that a high standard is maintained in the business world. When efforts of settlement and discussions have failed, business litigation is one way to handle any dispute at hand.

Mergers exist in many forms

Businesses may come together in a merger for many reasons, but a main goal of a company merger is to increase profits and efficiency. As businesses contemplate a possible merger in the future, they may want to keep in mind that many different types of mergers exist, and it is important to find the right one to fit their needs.

A conglomerate merger occurs between two unrelated business activities. These mergers can occur between two companies that have nothing in common or between two businesses that are looking to extend their area of business. Horizontal mergers, on the other hand, occur between two businesses operating in the same industry and are looking at extending their market share. Vertical mergers are between two companies that exist together in supplying products to a certain supplier.

Is bankruptcy the right option for me?

Even as the economy recovers, some businesses are still struggling to make ends meet. Although they have worked diligently, business owners may find themselves in a difficult place, with many crucial decisions to make. Company owners must consider all options in order to find the best solution for their businesses.

An option that has become more and more appealing to business owners who face financial difficulties is bankruptcy. Different types of bankruptcies exist that can fulfill a company's particular needs. When a business has a plan for recovery and wants to use bankruptcy as a way to get back on its feet, a Chapter 11 bankruptcy may be appropriate. This type of bankruptcy forces the business to create a reorganization plan and detail ways in which it will repay its debts in the future.

Handling business litigation

Businesses do not always agree when they are working together in the corporate world. Sometimes, these disagreements come to pass. Sometimes, however, they can elevate to the point that a lawsuit develops. When a business litigation issue arises, it is important to remain calm and seek legal assistance.

A business litigation case may develop because you want another business to take a certain action, another business wants you to take action or both. In the event that you want to take action, you will have to serve specific legal paperwork on the other company to inform them of a pending lawsuit. An experienced legal professional typically drafts this paperwork.

California tech firm to merge with Kitara Media Corporation

Oftentimes, as companies partner together in projects and in business, they begin to realize that they make an exceptional team. These realizations often lead to questions of merger and greater profits. In many cases, moving forward with a merger allows the two companies to have greater levels of efficiency that prove most beneficial in the long run.

An announcement was recently made in the New Jersey business press that California-based Future Ads LLC will be merging with Kitara Media Corporation of Jersey City. The two companies have worked together previously in the realm of advertising. The businesses complement each other and it is believed that they will make even more solid progress as a strong united front.

How can chapter 11 bankruptcy help a struggling business?

Starting a business in the United States can be risky. With an economy that has ebbed and flowed over the last several years, it is no wonder that some businesses are having a difficult time surviving. Fortunately, options exist for businesses that want to restructure their company and continue their operations.

A Chapter 11 bankruptcy is very different from other forms of bankruptcy in that it allows the business to remain alive. The process begins with a petition to the bankruptcy court. The business must then also file a lists of its assets and liabilities, contracts and leases, income and expenditures and a statement of financial affairs. Once the paperwork is filed, the debtor remains a debtor in possession until a plan of business reorganization is confirmed. Sometimes, a trustee will be appointed for the company.

Overview of businesses and securities laws

Businesses in California have many concerns. Along with ensuring their business remains profitable, their employees work hard and their costs remain low, businesses oftentimes must ensure that they are following federal securities laws. When these laws are not being followed properly, it may mean big trouble for small businesses.

Securities laws were created as a result of the stock market crash in the 1920's. The laws require businesses to disclose information to investors in order to properly reflect meaningful information. Two primary sets of securities laws exist today: the Securities Act of 1933 and the Securities Exchange Act of 1934.

California-based Hewlett-Packard divides rather than merges

Many times in the news, we hear of companies coming together in order to make a stronger joint force. These mergers and acquisitions seem to happen on a daily basis. Sometimes, however, the opposite of a merger occurs. Every once and a while we see a large company that decides to divide itself in order to make more profit.

California-based Hewlett-Packard is the most recent company to undergo this division strategy. The company announced recently that it will divide into Hewlett-Packard Enterprise and HP Inc. Hewlett-Packard Enterprise will be primarily responsible for corporate hardware and services while HP Inc. will run personal computer and printer operations. Interestingly, the CEO had said in the past that the company would remain a single entity.

Moving forward with a Chapter 11 bankruptcy

When business leaders make the decision to move forward with a bankruptcy filing, it is never an easy decision. However, choosing bankruptcy is often the best choice for a business in the long run. In today's economy, more and more businesses are being forced to make this difficult decision, and understanding the law is imperative for the future success of a business. A Chapter 11 bankruptcy allows for the reorganization of a business and the business can remain alive while paying off creditors.

When a business proceeds with a Chapter 11 bankruptcy, it first files a petition. The debtor may file this petition and, in some cases, a creditor can file the petition. Once the petition and other necessary documents are filed, a plan of reorganization must be filed with the court. This plan must include all information regarding assets, liabilities and business affairs. Once filed, it is up to judicial discretion whether the plan of reorganization is sufficient. Each creditor that is impaired by the process will cast a ballot and vote on the legitimacy of the plan.

Hanmi Bank and Central Bancorp merger finalizes

Another merger may affect California residents in the near future. Hanmi Bank recently announced its completed acquisition of Central Bancorp, Inc. This merger is believed to have a specific impact on Asian American communities.

The merger is part of a plan for the bank to become a leading community bank, appealing to residents from many different ethnic backgrounds. The bank now services a wide range of customers including Indian Americans, Pakistani Americans, and Korean Americans. The process of the merger went smoothly and California is now home to 30 branches of the community bank.