Category Archives: Reorganization

Will SpaceX go to Work for the U.S. Air Force?

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Musk has been making some big announcements lately –from the release of Tesla’s electric car model predicted to occur by 2017 to SpaceX going to work for the United States Air Force. SpaceX has confirmed that the U.S. Air Force has certified that SpaceX’s Falcon 9 rocket has completed three successful flights that met the Air Force’s qualifications and standards. As a result, SpaceX can now finish the certification process and seek to receive government contracts awarded under the Evolved Expendable Launch Vehicle (EELV) Program.

SpaceX’s announcement could be good news for taxpayers. Currently, the government (via taxpayers) is paying United Launch Alliance $1 billion each year just to stand ready to launch satellites into space. If a satellite is actually launched into space, ULA is paid an additional $380 million per launch! SpaceX has claimed it can perform the same work for the bargain price of $100 million per launch. If SpaceX becomes a competitive bidder for the EELV contracts, it could potentially save U.S. taxpayers as much as $50 billion over the next 15 years.

But the news about SpaceX doesn’t end there because the company will soon be launching one of its Dragon spacecrafts to the International Space Station. The crew members on board will consist of 40 mice that are being referred to as “mousetronauts.” The mice will live in the International Space Station for approximately six months.

NASA will study the mice to understand how microgravity could affect the human body in an effort further NASA’s planned manned exploration of Mars and other parts of space. Although astronauts spend up to six months in microgravity on the Space Station, the other planned missions may last two years or more. Since mice only typically live for about two years, spending six months on the Space Station is one-quarter of a mouse’s life span. Thus, understandings how weightlessness impacts the mice, the researchers can extrapolate those effects and apply to years of a human’s lifespan.

If you have questions regarding the topics discussed above or you would like to learn more about the legal services we provide, call us to schedule a free consultation.

Contact a Brevard County Bankruptcy Attorney at Faro & Crowder, PA

If you are interested in learning more about how a bankruptcy filing will impact your debt, contact Faro Crowder, PA to schedule an appointment. We are located in Melbourne, Florida on Sarno Road and serve residents and businesses of the Space Coast and Brevard County.

Services Areas

We provide services throughout Central Florida including: Melbourne, Titusville, Palm Bay, Merritt Island, Cocoa, Cocoa Beach, Satellite Beach, West Melbourne, Cape Canaveral, Viera and Eau Gallie.

Get In Touch with Faro & Crowder, PA

Faro & Crowder, PA
Phone: 321-784-8158
Address:
1801 N. Sarno Road, Suite 01
Melbourne, FL 32935
Email: info@farolaw.com

The information on this blog or any blog is not intended as, and should not be taken as, legal advice.

Do Corporations Have Attorney-Client Privilege?

When a corporation seeks bankruptcy protection, there are privacy concerns. The courts have recognized that a company has the benefit of the attorney-client privilege with its corporate attorney. This means that your company’s communications with its lawyer are protected and will remain confidential.

When a corporation files for bankruptcy protection, however, whether its communications are privileged may depend on what type of bankruptcy is filed. If the company seeks Chapter 7 liquidation, a trustee is appointed to administer the case. Thus, the trustee has the authority to assert and/or waive the debtor-corporation’s attorney-client privilege.

If the entity files a Chapter 11 reorganization case, its management team typically continues to operate the “debtor in possession” entity. As the debtor in possession and controlling party, the corporation continues to have the authority to assert of waive the attorney-client privilege. However, in some cases the court may appoint a Chapter 11 trustee. In that instance, the Chapter 11 trustee may assert or waive the privilege.

The officers and directors of the company must keep in mind that the privilege belongs to the corporate entity. In other words, if control of the company shifts to another party, such as a bankruptcy trustee or new management team, they will have access to the corporation’s privileged information.

A corporation that is considering seeking bankruptcy protection should consult with its legal counsel regarding the attorney-client privilege. It is important to understand what communications are protected, especially in a case where a trustee may be appointed. A seasoned bankruptcy lawyer can make sure you understand what can happen when a trustee assume control of the corporation and has access to confidential information.

If you are part of the management team for a corporation that may require bankruptcy protection and you have concerns regarding the attorney-client privilege, contact us for a free consultation. Office located in Melbourne, Florida.


Government Contractor Files for Bankruptcy; Cites $500M in Debt

Chapter 13

In late 2013, a car-charger maker with a large government contract filed for bankruptcy.

Phoenix-based Ecotality, Inc. sought Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the District of Arizona, listing assets of $50 million and debts of $500 million, including a large contract with the Department of Energy.

In court papers, Ecotality expressed plans to auction itself off in order to pay its creditors. Ecotaility had warned shareholders earlier in the year that a bankruptcy filing may become necessary, due to its difficulty in obtaining long-term financing to continue operations.

Bankruptcy and discrimination

In light of the October 2013 government shutdown, many firms who do business with the United States government may find themselves in dire financial straits. These companies may hesitate to file bankruptcy, however, because they fear the repercussions that may come from their customers, particularly the federal government. Specifically, there is a fear that the government may refuse to agree to restructure contracts, which is the entire point of filing a Chapter 11.

Section 525 of the Bankruptcy Code specifically prohibits discrimination in such circumstances, stating in subsection (a) that the government may not “deny, revoke, suspend or refuse to renew a license, permit, charter, franchise, or other similar grant” due to a bankruptcy filing. The Supreme Court recently affirmed this prohibition.

Section 525 applies to individuals as well. Many people in Florida are afraid that the government may revoke their security clearances after a bankruptcy filing. Such a move may be illegal, and Brevard County bankruptcy attorneys recommend several ways to break the news to your supervisor:

•    Be upfront: You do not have to tell your boss that you are considering bankruptcy. But right before you file, tell your boss. Do not wait for your boss to find out about the filing from another source (which will definitely happen).

•    Explain the situation: Some people feel that bankruptcy debtors have poor organizational skills and/or cannot be trusted with money. If your bankruptcy filing was brought on by a divorce, excessive medical bills, a previous job loss or any other factor unrelated to your work as a contractor, reinforce that point with your boss.

Bankruptcy discrimination is illegal, plain and simple. For a free consultation with attorneys who fight to protect your exempt assets, contact our office in Central Florida.

Contact a Brevard County Bankruptcy Attorney at Faro & Crowder, PA

If you are interested in learning more about how a bankruptcy filing will impact your debt, contact Faro Crowder, PA to schedule an appointment. We are located in Melbourne, Florida on Sarno Road and serve residents and businesses of the Space Coast and Brevard County.

Services Areas

We provide services throughout Central Florida including: Melbourne, Titusville, Palm Bay, Merritt Island, Cocoa, Cocoa Beach, Satellite Beach, West Melbourne, Cape Canaveral, Viera and Eau Gallie.

Get In Touch with Faro & Crowder, PA

Faro & Crowder, PA
Phone: 321-784-8158
Address:
1801 N. Sarno Road, Suite 01
Melbourne, FL 32935
Email: info@farolaw.com

Contact Us For A Free Consultation






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