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Tag: bankruptcy

  • Mendy puts house up for sale amid an alleged looming bankruptcy

    Mendy puts house up for sale amid an alleged looming bankruptcy

    Amid the possibility of bankruptcy, Benjamin Mendy has listed his house for sale and is seeking £10 million ($12.7 million) in unpaid wages from Manchester City.

    Following a retrial, the 29-year-old was acquitted of one count of rape and one count of attempted rape in July.

    Subsequently, he joined Ligue 1 side Lorient in preparation for the 2023–24 season.

    Reports from The Mirror indicate that HM Revenue and Customs (HMRC) has initiated bankruptcy proceedings against the French player due to an outstanding tax bill of £800,000 ($1 million).

    After his arrest in September 2021, Mendy was suspended by Manchester City, leading to his pay being withheld since then.

    During a High Court hearing, Jacquille Jarrett, representing HMRC, mentioned that the debt proceedings had been postponed awaiting the verdict of the criminal trial.

    It was anticipated that a resolution payment, sourced from the sale of his property or back pay from his former employer, would be arranged. However, these anticipated funds have yet to be received.

    “There has been no contact from the debtor,” Ms Jarrett said, adding: “The agreement advises that an update would be given to HMRC, but no contact was made. We look to secure a bankruptcy order today.”

    Mendy’s accountants provided details of his hopes to recuperate funds lost due to the charges brought against him. He is said to be in negotiations with former club Manchester City over £9m–£10m in back pay following the not-guilty verdict, and he has put his £5m ($6.4m) house near Macclesfield on the market.

    Mendy left the current Premier League champions upon the expiration of his contract back in June and was later cleared of the sexual offence charges following a retrial. In his first trial, lasting six months and ending in January 2023, he was cleared of six counts of rape and one count of sexual assault.

    “He himself has moved back to France, where he comes from,” the accountant said. “I would like to ask for a short extension because I am told very firmly by his agent that the pay issue will be resolved from Manchester City. He was very short of money indeed, the cost of the legal case were over £1m.”

    The hearing was adjourned until October 4 to give Mendy time to sell the property in Cheshire.

  • What caused Antoine Walter to lose $108m and go bankrupt

    What caused Antoine Walter to lose $108m and go bankrupt

    For spending thirteen years of his life playing basketball, Antoine Walker managed to end his career in 2008 with a whopping amount of $108 million.

    But that colossal amount of money was flushed down the drain in just two years.

    Antoine lost the money he earned and went bankrupt. This is because he made some outrageous expenses despite that some of them were with good intentions.

    Having a humble beginning, Antoine had a significant amount of people to assist in his life – family, friends and even acquaintances. According to him, he helped about 30 people have “better situations.”

    “I gave them whatever they wanted and spoiled them. You can’t do that,” Walker said. “It ended up being an open ATM throughout my career.”

    For his family, Antoine built his mum a house worth $4.1 million. It was a 15.000 square feet with an indoor pool. “Everything you can ever imagine was in the house,” he noted, He also owned four homes.

    Aside from caring for his family, Antoine aspired to create a wealthy look and for that reason spent on some flashy items like cars, watches, jewelry among others.

    “It’s a cultural thing, and I like to speak for myself. When I came out, Jay-Z, Puffy, all the rappers, what they did is what I wanted to do. You see them with the big jewerly, the chains, nice cars, you see the videos. I am looking at all that and thinking when I get it, I am doing that. When I had a lot of money, I also had a lot of fetishes. I had a car fetish. I would have 8 to 10 cars at one time. I had a watch fetish. When I came out, Jacob the jeweler was the man; everyone shopped with Jacob. I used to get all the new watches. I had 15 to 20 watches at one time, and I couldn’t wear them all,” he said as quoted by Basketball Network.

    Again, he lost large sums of money gambling, although Walker insists this wasn’t the main cause of his financial collapse and that media reports are overblown.

    In spite of the ups and downs, Antoine has been able to elevate himself from bankruptcy.

    Source: The Independent Ghana

  • How Antoine Walker emerged from bankruptcy

    How Antoine Walker emerged from bankruptcy

    Antoine Walker had amassed $108 million in 2008, when he ended his 13-year basketball career.

    He came into the league at the age of 19. Antoine was from humble beginning, “so I was not used to having money at all,” he noted.

    It appears that the noble beginning caused Walker to overspend, making him go bankrupt two years after retiring.

    He picked up some aggressive spending habits – spending on cars, clothes and jewelry as well as helping family and friends. The rest of his money was lost in real estate investing when the market tanked after the Great Recession.

    Fortunately, he recovered from bankruptcy two and a half years later.

    How he got out of bankruptcy:

    Walker was able to file for Chapter 7 bankruptcy, he said, which is also referred to as a liquidation or straight bankruptcy.

    In this process, all unsecured debt – think personal loans, credit cards and some medical expenses – is wiped away, but a court will take possession of your assets such as property. A court-appointed trustee will handle your case and may sell some of your assets to cover your debts.

    In chapter 13 bankruptcy, you generally get to keep ownership of your assets and get a more affordable payment plan from your creditors. However, you must fit certain requirements – you need to have enough income to afford your monthly payments, and your debt must be under a certain amount.

    The limits for chapter 13 bankruptcy in 2020 were nearly $420,000 in unsecured debt and roughly $1.25 million in secured debt.

    According to a professor at the University of Illinois College of Law, said Robert Lawless, “If you don’t see your financial situation improving after bankruptcy it’s not a good time to file.”

    “You need to have a CPA, financial advisor, agent, lawyer – these need to be separate but work together,” Antoine said.

    Today, Antoine helps others avoid the money issues he’s overcome. He’s a consultant with Edyoucore, a financial literacy company that focuses on teaching athletes how to manage their money.

    “I may never again make $108 million but I can have a comfortable lifestyle. That’s been my mindset as I got back on my feet,” he said.

    Source: The Independent Ghana

  • Sam Bankman-Fried: The founder of FTX arrested in the Bahamas

    Sam Bankman-Fried, the founder of the defunct cryptocurrency exchange FTX, has been arrested in The Bahamas, according to the country’s attorney general.

    He is expected to appear in a magistrates court in Nassau, the Caribbean country’s capital, on Tuesday.

    According to police, Mr Bankman-Fried was arrested for “financial offences” against US and Bahamas laws.

    FTX declared bankruptcy in the United States last month, rendering many users unable to withdraw their funds.

    According to a court filing last month, FTX owed nearly $3.1 billion (£2.5 billion) to its 50 largest creditors.

    It is unclear how much people who have funds in the exchange will get back at the end of bankruptcy proceedings – though many experts have warned it may be a small fraction of what they deposited.

    The FTX exchange allowed customers to trade normal money for cryptocurrencies like Bitcoin.

    Mr Bankman-Fried was once viewed as a young version of legendary US investor Warren Buffett, and as recently as late October had a net worth estimated at more than $15bn.

    He had become well known in Washington DC as a political donor, mostly to Democrat politicians or groups, supposedly supporting pandemic prevention and improved crypto regulation.

    Mr Bankman-Fried will be held in custody “pursuant of our nation’s Extradition Act,” the Attorney General of the Bahamas said in a statement.

    “Earlier this evening, Bahamian authorities arrested Samuel Bankman-Fried at the request of the US Government, based on a sealed indictment filed by the SDNY [Southern District of New York]. We expect to move to unseal the indictment in the morning and will have more to say at that time,” the US Attorney’s office in Manhattan said in a tweet.

    Wall Street regulators also said that they would be taking action against Mr Bankman-Fried.

    “We commend our law enforcement partners for working to secure the arrest of Mr Sam Bankman-Fried in the Bahamas on federal criminal charges,” US Securities and Exchange Commission (SEC) official Gurbir Grewal said in a statement.

    “The Securities and Exchange Commission has separately authorised charges relating to Mr. Bankman-Fried’s violations of our securities laws, which will be filed publicly tomorrow in the Southern District of New York,” he added.

    Mr Bankman-Fried had been due to testify about the collapse of FTX before the US Congress on Tuesday.

    However, he will now be unable to testify, according to Congresswoman Maxine Waters, who said in a statement that she was surprised to hear that he had been arrested.

    Mr Bankman-Fried’s lawyer did not immediately reply to a BBC request for comment.

    The BBC is not responsible for the content of external sites.View original tweet on Twitter
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    FTX, the owner and operator of the FTX.COM cryptocurrency exchange, was founded in 2019 by Mr Bankman-Fried, a former Wall Street trader and ex-Google employee Gary Wang.

    It became the second largest crypto exchange in the world, trading about $10bn of cryptocurrencies a day.

    But on 11 November FTX filed for bankruptcy protection after users pulled $6bn from the platform in three days and rival exchange Binance abandoned a rescue deal. At the same time, Mr Bankman-Fried resigned as FTX’s chief executive.

    In a series of interviews and public appearances in recent weeks, Mr Bankman-Fried has acknowledged that mistakes were made at the firm, but sought to distance himself from accusations of illegal activity.

    “I didn’t ever try to commit fraud,” he said at the New York Times’ DealBook Summit at the end of last month.

    The collapse of FTX came during a tumultuous year for the cryptocurrency industry. This year Bitcoin has lost more than 60% of its value, while other cryptocurrencies have also slumped.

  • Russia reports nearly 40% rise in bankruptcy in first half of 2022

    The number of Russian citizens who have declared bankruptcy and faced liquidation in the first half of 2022 rose by 37.8% over the same period from last year, a Russian Ministry of Economic Development report shows.

    From January to the end of June, 121,313 Russian citizens filed for bankruptcy and had their assets liquidated to pay off debts, the report stated. Among them, the largest number of bankruptcy declarations were from Moscow at more than 6,000 individuals, followed by the region surrounding the capital, with more than 5,600.

    Within the same timeframe, 20,185 Russian citizens filed for bankruptcy and went through debt restructuring, according to the report.

    The number of individual bankruptcies in the country nearly tripled from 68,980 in 2019 to 192,833 in 2021, the report added.

    Source: CNN