Another high profile bankruptcy made news this month when the company that produced the infamous Girls Gone Wild video series filed for Chapter 11 bankruptcy protection. According to reports, the move comes in an attempt to prevent Wynn Resort from going after its assets. Reports indicate that GGW founder Joe Francis owes millions of dollars to Wynn, part of which includes a $2 million gambling debt that Francis allegedly did not pay. In addition, Wynn obtained at $7.5 million judgment against Francis in a defamation lawsuit regarding comments made against Steve Wynn.
According to the filing, the company has less than $50,000 in assets and claimed that $10.3 million was in dispute. In response, Wynn claims that Francis has used his companies to make it appear as if he has no income or assets, yet lives a lavish lifestyle. A statement released by Wynn’s attorney states that the judgments they have obtained are against Francis himself, and the bankruptcy filing will do little to deter their efforts in collecting.
The company itself also has its share of judgments against it, including one obtained from a St. Louis woman for $5.8 million after she claimed that someone exposed her breasts without consent.
It is unclear what legal effect the filing will have on the status of Francis’ personal debts, and to further complicate matters Francis has not owned the company for over two years.
Chapter 11 bankruptcy is a type of reorganization bankruptcy that allows an entity to restructure its debts while retaining its assets. For a company, this means that the company can continue to operate while being shielded from creditors and collection activities such as litigation. The automatic stay prevents creditors from attempting to collect on their debts while a company or person restructures their debts in a way to make them more manageable.
Contact a St. Louis bankruptcy attorney for a free consultation
If you or your company is experiencing financial difficulty, bankruptcy may be able to help. In order to determine whether bankruptcy could benefit you, you should consult with an experienced St. Louis bankruptcy lawyer. The Westbrook Law Group is committed to helping people obtain a fresh start through bankruptcy. To schedule a free consultation, contact us today at (636) 493-9231 or by filling out the contact form on the right side of this page.
