Now it has been over a month since our last update on the company previously known as Phoenix and a lot has happened, so let’s take a moment to get every up to speed. It seems the three amigos from Cincinnati have found out that not only do their employees dislike not being paid, but their suppliers and their mortgage broker do not like being paid as well.
Wesbanco, the mortgage broker has filed for foreclosure on Phoenix back on February 17, 2009. Perhaps someone should not have taken that second mortgage in December. To date there are currently four lawsuits filed by former suppliers of the company which Phoenix failed to pay for various building supplies over the company's two year existence. Finally there is one lawsuit by a former creditor of the company. As of March 9, 2009, Phoenix has a total of 6 pending court cases in various stages of litigation.
With all the legal trouble this extremely reputable company has encountered recently, what’s an owner to do? Well my friends file for Chapter 7 Bankruptcy, and that is just what they did. Chapter 7 bankruptcy is the liquidation of all the assets of company to pay off the debt to all the fully-secured creditors. Which means if you have a lawsuit on file or are a secured creditor you will be entitled to some restitution through the sale of companies assets. For the employees who were not paid, they unfortunately are unsecured creditors. By filing for Chapter 7, Ed Fanning and Nick Jevic have decided this a fight they cannot win, and it would be best to protect themselves from future lawsuits by filing for bankruptcy.
Edward Fanning and Nick Jevic have ultimately finally conceded, had their egos crushed, and by filling bankruptcy have realized they nothing more than couple of failures not only in business but in the evolutionary chain of life. We have learned when it comes to business this past year the evolutionary development in human species has missed many opportunities to strengthen the species; from wall street bankers, auto executives, politicians, to Ed Fanning, Nick Jevic and Thomas Hennings; one can only hope their children will realize their parents genetic flaws and failures and choose to never reproduce.