Monday, November 22, 2004
Bankruptcy—it works for OSI/Gulf State debt collectors, Trump AND you
One of the reasons why I’m so upset about Federated Financial as well as all credit counselors is that they steer people away from bankruptcy so that they get their cut on the payments made to creditors.
Of course bankruptcy isn’t for everybody and each individual’s situation must be carefully assessed, but unfortunately no credit counselor ever assists with an objective assessment.
They just want you to make as many payments as possible so that they get their 10% or so cut from the creditors PLUS your donation - for doing NOTHING to help you. That’s what makes it such an extremely profitable business and they usually set up a for profit company for “payment processing” and that’s how they get the funds from the non profit in their own bank accounts.
Look at Steven Miller’s and his cronies’ many corporations - you’ll see what I mean.
How many people make donations to their debt collectors?
People making payments to credit counseling “non profits” do exactly that!
Bankruptcy is a BUSINESS decision and there’s nothing to be ashamed of.
Trump Casino Empire Files for Bankruptcy
“… Trump denied the bankruptcy was a setback.
“I don’t think it’s a failure, it’s a success,” he said in the interview. “In this case, it was just something that worked better than other alternatives. It’s really just a technical thing, but it came together.”
“We have one of the most powerful gaming companies the day it comes out (of bankruptcy). There’s no way we could have done that without the ‘B’ word,” he said.
He said “the future looks very good.”
The Trump casino operations have been fighting to survive amid debt that has hampered Trump’s efforts to maintain and expand his Trump Marina, Trump Taj Mahal and Trump Plaza casinos in Atlantic City. The properties have been hurt badly by new competition from the Borgata Hotel Casino & Spa and other casinos.
The filings list debt of about $1.8 billion, which Trump said would be cut by $500 million. He said the interest rate on the debt would be reduced to 8 percent, from 15 percent, under the bankruptcy reorganization plans, saving the company $100 million a year in interest payments.
The company would also be able to draw on a $500 million credit line at 4 percent interest, he said.
He declined to predict how long it will take for the company to emerge from bankruptcy. ...”
Notorious for its disregard for the FCRA and FDCPA, debt collector Gulf State, owned by OSI, emerged from bankruptcy stronger than ever.
Outsourcing Solutions’ Keleghan revamps leadership after bankruptcy
“… OSI’s reorganization has resulted in the strongest balance sheet in company history, Keleghan said. Revenue has moved “north of $500 million” this year, he said, up from $488 million in 2003. Most of the growth has come from market-share gains among existing clients, which include many of the nation’s largest health-care, telecommunications and financial services companies and state government agencies.
“We have a five-year plan with a goal to make $40 million plus in EBITDA (earnings before interest, taxes, depreciation and amortization),” Keleghan said. “Year-to-date we are ahead of that.”
A debt-for-equity swap during the bankruptcy reorganization reduced OSI’s debt from about $650 million to less than $175 million, Keleghan said. ...”
Run the numbers, get some legal advice and determine what works best for YOU.
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