...Global Crossing (GBLX) Global crossing was founded by Gary Winnick, David L. Lee, Barry Porter and Abbot L. Brown in 1997 through a company called Pacific Capital Group (Winnick’s personal venture group). Global crossing provided computer networking services worldwide. The company offered transit and peering links, Virtual private network, leased lines, audio and video conferencing. Its customer base ranged from private individuals to large enterprises and other carriers. Global crossing suffered a big crisis in year 2000 when it filed for chapter 11 bankruptcy protections in January 2000. Its assets were sold to Asia Netcom, which is a subsidiary of China Netcom. Global Crossing gained significant publicity through their bankruptcy process as a result of the behavior of the firm's managers. Thousands of laid-off employees never received their severance payments (as Global Crossing's bankruptcy eventually rendered them unable to make the payments) and many workers' retirement benefits became worthless after the crash of Global Crossing stock. However, while these facts may in and of themselves be the unfortunate consequences of bankruptcy, the fate of the firm's executives tells a different story: the company moved up its last pay date so managers could collect their final paychecks before the January 28th declaration of bankruptcy, while laid-off workers' severance checks had already ceased to arrive. Moreover, while regular employees' pension plans quickly deteriorated alongside...
Words: 579 - Pages: 3
...thought of screaming but only of watching as those dark markings rolled and boiled in perfect symetry across the wings like clouds in a night sky above, in water below." Prologue Part One: Commissions Chapter One Chapter Two Chapter Three Chapter Four Chapter Five Part Two:Physiognomies of Flight Chapter Six Chapter Seven Chapter Eight Chapter Nine Chapter Ten Chapter Eleven Chapter Twelve Chapter Thirteen Chapter Fourteen Chapter Fifteen Chapter Sixteen Chapter Seventeen Part Three: Metamorphoses Chapter Eighteen Chapter Nineteen Chapter Twenty Chapter Twenty-One Chapter Twenty-Two Chapter Twenty-Three Chapter Twenty-Four Chapter Twenty-Five Chapter Twenty-Six Part Four: A Plague of Nightmares Chapter Twenty-Seven Chapter Twenty-Eight Chapter Twenty-Nine Chapter Thirty Chapter Thirty-One Chapter Thirty-Two Chapter Thirty-Three Part Five: Councils Chapter Thirty-Four Chapter Thirty-Five Chapter Thirty-Six Chapter Thirty-Seven Chapter Thirty-Eight Chapter Thirty-Nine Chapter Forty Chapter Forty-One Part Six: The Glasshouse Chapter Forty-Two Chapter Forty-Three Chapter Forty-Four Chapter Forty-Five Part Seven: Crisis Chapter Forty-Six Chapter Forty-Seven Chapter Forty-Eight Chapter Forty-Nine Chapter Fifty Chapter Fifty-One Part Eight: Judgement Chapter Fifty-Two "I even gave up, for a while, stopping by the window of the room to look out at the lights and deep, illuminated streets. That’s a form of dying, that losing contact with the city like...
Words: 46847 - Pages: 188
...REBEL ANGELS BY LIBBA BRAY CHAPTER ONE CHAPTER TWO CHAPTER THREE CHAPTER FOUR CHAPTER FIVE CHAPTER SIX CHAPTER SEVEN CHAPTER EIGHT CHAPTER NINE CHAPTER TEN CHAPTER ELEVEN CHAPTER TWELVE CHAPTER THIRTEEN CHAPTER FOURTEEN CHAPTER FIFTEEN CHAPTER SIXTEEN CHAPTER SEVENTEEN CHAPTER EIGHTEEN CHAPTER NINETEEN CHAPTER TWENTY CHAPTER TWENTY-ONE CHAPTER TWENTY-TWO CHAPTER TWENTY-THREE CHAPTER TWENTY-FOUR CHAPTER TWENTY-FIVE CHAPTER TWENTY-SIX CHAPTER TWENTY-SEVEN CHAPTER TWENTY-EIGHT CHAPTER TWENTY-NINE CHAPTER THIRTY CHAPTER THIRTY-ONE CHAPTER THIRTY-TWO CHAPTER THIRTY-THREE CHAPTER THIRTY-FOUR CHAPTER THIRTY-FIVE CHAPTER THIRTY-SIX CHAPTER THIRTY-SEVEN CHAPTER THIRTY-EIGHT CHAPTER THIRTY-NINE CHAPTER FORTY CHAPTER FORTY-ONE CHAPTER FORTY-TWO CHAPTER FORTY-THREE CHAPTER FORTY-FOUR CHAPTER FORTY-FIVE CHAPTER FORTY-SIX CHAPTER FORTY-SEVEN CHAPTER FORTY-EIGHT CHAPTER FORTY-NINE CHAPTER FIFTY PROLOGUE DECEMBER 7, 1895 HEREIN LIES THE FAITHFUL AND TRUE ACCOUNT OF my last sixty days, by Kartik, brother of Amar, loyal son of the Rakshana, and of the strange visitation I received that has left me wary on this cold English night. To begin at the beginning, I must go back to the middle days of October, after the misfortune that occurred. It was growing colder when I left the woods behind the Spence Academy for Young Ladies. I'd received a letter by falcon from the Rakshana. My presence was required immediately in London. I was to keep off the main roads and be certain I was not followed...
Words: 132783 - Pages: 532
...failed and the CEO gone, a new CEO was appointed. To mask the decline in earning and ensure the company was portrayed as a growing profitable company, used fraudulent accounting methods. Firstly, interconnection expenses were recorded as capital instead of expenses and secondly using bogus accounting entries from corporate unallocated revenue accounts, the company inflated its revenues, around $11 billion by the end of 2003. As the accountant for WorldCom, I would have recorded such disbursements as operating costs; the procedure used was unethical. Had the company insisted the procedures be recorded in such a manner, I would have no choice but to alert the necessary authorities as this was a serious violation of accounting ethics. The consequences for WorldCom resulted in the company defaulting on bank agreements, loans being subject to immediate payment. The reputation of the company was in question, affecting the profits of the company, making it impossible to earn enough money to cover the loans. On July 21st, 2002, the largest filing in USA history, WorldCom filed Chapter 11 bankruptcy protection, resulting in one of the largest corporate fraud scandals. Becoming MCI and moving to Dulles, Virginia on April 14th 2003, the bankruptcy reorganization agreement meant the company paid $750 million to the SEC in cash and stock, this was...
Words: 302 - Pages: 2
...Executive Summary – American Airlines The future of American Airlines remains uncertain after a lieu of mistakes and misfortunes. American Airlines’ parent company, AMR, filed Chapter 11 bankruptcy in November of last year after recording net losses of $2.1 billion, $1.5 billion, and $471 million in 2008, 2009, and 2010 respectively. Also, with AMR’s previous CEO declaring retirement, new CEO Tom Horton was named. In the wake of their financial predicament, American Airlines is also having PR, managerial, and maintenance problems. The pilot union is demanding an industry standard contract that includes salary and job security provisions. The inability of AA to negotiate a deal, along with thousands of job cuts, has left many American Airlines’ employees bitter. In recent months, flight attendants have engaged in very inappropriate public rants and rude behavior consequently causing delays among flights and irate customers. In addition to the behavioral issues, several planes have had to make emergency landings due to loose seats and other incidents of insufficient inspection. In July, five AA passengers had to be hospitalized after encountering turbulence during a flight. American Airlines’ fleet of aircrafts has an average age of 15 years. These aged carriers are inefficient energy consumers and multiply costs. American Airlines has openly declared their opposition to a merger with US Airways, although, the final decision rests with AMR and negotiations are still in progress...
Words: 371 - Pages: 2
...Emergence of Trust Start with Why – Simon Sinek If a company mistreats their people, just watch how the employees treat their customers. Mud rolls down a hill, and if you’re the one standing at the bottom, you get hit with the full brunt. In a company, that’s usually the customer. EX: Continental Airlines -crummy place to work in 1994. “surly to costumers, surly to each other, and ashamed of their company. And you can’t have a good product without people who like coming to work. It just can’t be done,” he recounts. Continental going through hard time: Chapter 11 bankruptcy protection 2x in eight years. 1983 and 1991. 10 different CEOs. Lost 600 million and ranked last in every performance category. Bethune arrives and makes $250 million and was ranked as one of the best companies to work for in America. Made changes to improve operations, but biggest gain was impossible to measure: TRUST!!! Trust emerges because executive promises change. Trust is not a checklist. Fulfilling all your responsibilities does not create trust. Trust is a feeling, not a rational experience. Trust begins to emerge when we have a sense that another person or organization is driven by things other than their own self-gain. Trust - sense of value, real value Value is the transference of trust - Can’t convince someone you have value, just as you can’t convince someone to trust. - Have to earn trust by communicating and demonstrating that you share same values and beliefs. - WHY is just...
Words: 501 - Pages: 3
...magazine as one of the top 25 companies. By the early 1990s, sales fell due to stiff competition from other retailers. Facing bankruptcy, the company hired turnaround specialists from Ernst and Young (E&Y) to help overcome the financial crisis. However, the company filed for Chapter 11 reorganization and due to that a group of 9,000 creditors filed a lawsuit against E&Y saying they were the main reason for MGR’s decline. First of all, E&Y violated GAAS first standard that states, “The audit is to be performed by a person or persons having adequate technical training and proficiency as an auditor.” The turnaround team included inexperienced personnel that included a retired consultant, a partner with little experience in the U.S. and with retail firms, and two recent college graduates. I would say the first standard of Field Work was violated because the work wasn’t adequately planned and there was no supervision. The leader of the team took an eight-day vacation at critical point during the engagement. Also, while store closing were key to MGR’s survival, only 230 of 1,434 stores had been closed and MGR still operated two stores in some malls. Last, the cost-cutting strategy called for only $11 million in annual savings, even though the company was projected to lose up to $200 million. In addition, even though there aren’t professional standards for CPAs who consult I think there should be guidelines or standards that CPAs can follow when consulting. If there was set...
Words: 611 - Pages: 3
...of the fittest” enables the survival of small-medium size businesses. The author provides multiple examples of how he and his company solved each problems relating to businesses that is on the brink of failure. By implementing his ideal, the author believes your company will survive, along with great rewards in the future. The book starts off in chapter 1 by introducing himself and his company, American Management Services, they have been working for decades to help save Main Street Businesses. The truth at the beginning of the chapter is YOU’RE the fault for your business failures, do not blame recession for your failure, you are the ultimate factor in determining your businesses survival. You must challenge yourself constantly in order to set the tone of the top. This means coming in on Saturdays, or Sundays to work instead of fishing or golfing. No one should know about your financials better than yourself. Keep on task with every details relating to payrolls, expenditures over certain amounts, approve checks going out, etc. These things must be constantly imbedded in order to have a successful business. The chapter also pinpoints another important factor, “Profits Aren’t Everything, They’re the only thing.” You need to do everything you can to let Profits be positive even if that means firing your family members, or incompetent employees. To ensure survival you must be what the author likes to call “ruthless.” Setting the tone of tough, but fair leader will better...
Words: 1711 - Pages: 7
...the first ever gaming condole and classic titles like “Pong,” “Centipede” and “Asteroid”. In 2000, Infogrames Entertainment of France purchased a small stake in the company and later bought out the full company, changing the name to Atari S.A. The $11 million deal between Infogrames and Atari was positive for Infogrames and its shareholders (Malware, 2014). Infogrames’ CEO David Gardner stated the merger would create a simplified global structure for the business during the rebuilding phase of the company (Future Publishing Limited, 2014). In addition to the merger, Infogrames agreed to lend the gaming company $20 million for operational cash requirements between the initiation of the deal and its close (Malware, 2014). Essentially, this merger combined Atari US with Atari AS and operated under the latter. As technology continued to advance, new gaming and entertainment consoles became ever more popular and Atari loss previous momentum and slowly dwindled away. Filing Bankruptcy Atari US filed Chapter 11 bankruptcy protection January 2013 to break away from its unprofitable parent company to “secure independent capital for future growth, primarily in the areas of digital and mobile games” (Pepitone, 2013). Under Chapter 11 bankruptcy, the debtor proposes a reorganization plan to pay creditors back over time (Liuzzo, p343). Atari US expects this filing will give them the boost they need to continue its focus on digital game development and licensing. At the time of the...
Words: 676 - Pages: 3
...This greediness motivated them to falsify information that covered up the true company’s financial health. They engaged into bigger and riskier deals just to maintain their image to the stakeholders. The Lehman Brothers executives used a corrupted strategic plan to create a picture of a respectful status and an excellent financial statement. The culture of this company encouraged unethical practices within the employees of the company. Lehman Brothers was a company that had unrealistic plans, and money was their main objective. #3. Discussion Question: What role did Lehman’s executives play in the company’s collapse? Were they being responsible and ethical? Discuss. Discussion: The financial services firm, Lehman Brothers filed Chapter 11 bankruptcy on September 15, 2008 ( Valukas, 2010). The downfall of Lehman’s was... View Full...
Words: 279 - Pages: 2
...In 2001, Enron was the fifth largest company on the Fortune 500. Enron was also the market leader in energy production, distribution, and trading. However, Enron’s unethical accounting practices have left the company in joint chapter 11 bankruptcy. The bankruptcy has caused many problems among many individuals. Enron’s employees and retirees are suffering because of the bankruptcy. Wall Street and investors have taken a major downturn do the company’s unethical practices. Enron’s competitors and the industry have also been both affected by the bankruptcy. The U.S. economy took a sudden downturn for the worse, do to just this one company’s unethical behavior. After a series of revelation involving irregular accounting procedures began throughout the 1990’s. Enron was on the brink of bankruptcy by November 2001. A rescue attempt was made by a smaller energy’ Dyengy, but was not practical. After Enron’s huge financial plunge, information was revealed that much of the profits and revenue were the results of deals with special purpose entities. People of authority decided to lie on the statement which overtime this small lie turned out to be a multi-billion dollar crumble. Billions of dollars of investors money was taken as the company fell to nothing. In this case Anthony Anderson was a key contributor to the endless unethical behavior and lies that flourished in this case. Mr. Anderson was in charge of the auditing and lied about the unethical information regarding...
Words: 321 - Pages: 2
...of the first year when sales were half of what had been projected in the business plan, it is an ominous sign and maybe they should have reevaluated at that point in time due to the gross miscalculation. Gross Margin in 2005 was approximately 40.83% ($46,547/$114,007), in 2004 it was 29.72%, and in 2003 was 24.88%; this shows that over the years more of each dollar of sales is being used to service The Health Nut’s other costs and obligations. The Debt to Equity ratio for 2005 was (0.9) [$49,421/($52,776)]. The company’s negative net worth is troubling because it is indicative that The Health Nut has been losing money for some time. By proactively looking into Chapter 11 bankruptcy, they will be able to do it on their own terms and have better cooperation with the creditors without risking losing their home. Chapter 11 bankruptcies have also been seen as a way of ‘restructuring’ and The Health Nut may be able to continue operating with some...
Words: 268 - Pages: 2
...Blockbuster Reorganization Dana Brown ACC 401 02/23/2014 Professor Neely Blockbuster Reorganization INTRODUCTION In today’s economy so many businesses are failing and having to file for different types of bankruptcy. Some of the very common ones are Chapter 13, Chapter 7 and Chapter 11. Chapter 11 is more common for corporation and businesses. Chapter 11 reorganization is when the business is on the “verge of bankruptcy but believes it can be successful again” ("Chapter 11 Definition", n.d.,). The goal in filing Chapter 11 is to reorganize the assets and liabilities to become profitable again. Investopedia talks about how the value of the stock can drop as well as the bonds ("Chapter 11 Definition", n.d.,). Chapter 11 allows the business one more chance to be successful and be profitable by restricting the way business is done in the company. One of the companies that filed a Chapter 11 bankruptcy is the well-known Blockbuster chain. BACKGROUND The first Blockbuster store opened up in 1985 in Dallas, TX with 8,000 VHS tapes, a computerized check out process and a big dream. Mr. David Cook founded the well-known Blockbuster store (The History Channel, n.d.,).The store did so well that it opened three more in 1986. In 1987, the owner sold a portion to a group of investors, one of them being a well-known investor Wayne Huizenga (The History Channel, n.d.,). Mr. Huizenga was the founder of Waste Management, Inc. Eventually Mr. Huizenga assumed total control after Mr...
Words: 1427 - Pages: 6
..."Lessons from Lehman Brothers: Will We Ever Learn?" Maria Diana Lazaro, Freda Macaisa, and Patricia Molina MGTP/521 February 20, 2013 Richard Dettling "Lessons from Lehman Brothers: Will We Ever Learn?" #2.Discussion Question: What was the culture at Lehman Brothers like? How did this culture contribute to the company’s downfall? Discussion: The unethical culture by the top executives in the Lehman Brothers company was one of the major contributions to the downfall of this organization. According to the legal expert Anton R. Salukis, Lehman Brothers excessively used accounting manipulations. The negligence or the willful blindness of Lehman’s CEO, Richard Fuld, promoted the practice of filing misleading financial reports by abusing an accounting device, Repo 105. Through this accounting manipulation, they could remove fifty billion of unwanted assets off the balance sheets on 2008 [ (Robbins, 2012, p. 147) ]. Looking into the culture of this corporation, it can be said that this company was corrupted and the only purpose of its leaders was the appetite for money. Because of the company’s success, the leadership became greedy. This greediness motivated them to falsify information that covered up the true company’s financial health. They engaged into bigger and riskier deals just to maintain their image to the stakeholders. The Lehman Brothers executives used a corrupted strategic plan to create a picture of a respectful status and an excellent financial statement. The...
Words: 864 - Pages: 4
...World Com In: Business and Management World Com 9-104-071 REV: SEPTEMBER 14, 2007 ROBERT S. KAPLAN DAVID KIRON Accounting Fraud at WorldCom WorldCom could not have failed as a result of the actions of a limited number of individuals. Rather, there was a broad breakdown of the system of internal controls, corporate governance and individual responsibility, all of which worked together to create a culture in which few persons took responsibility until it was too late. — Richard Thornburgh, former U.S. attorney general1 On July 21, 2002, WorldCom Group, a telecommunications company with more than $30 billion in revenues, $104 billion in assets, and 60,000 employees, filed for bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code. Between 1999 and 2002, WorldCom had overstated its pretax income by at least $7 billion, a deliberate miscalculation that was, at the time, the largest in history. The company subsequently wrote down about $82 billion (more than 75%) of its reported assets.2 WorldCom’s stock, once valued at $180 billion, became nearly worthless. Seventeen thousand employees lost their jobs; many left the company with worthless retirement accounts. The company’s bankruptcy also jeopardized service to WorldCom’s 20 million retail customers and on government contracts affecting 80 million Social Security beneficiaries, air traffic control for the Federal Aviation Association, network management for the Department of Defense, and...
Words: 317 - Pages: 2
