ThinkEquity Files for Bankruptcy Chapter 7 Bankruptcy

by San Antonio Attorney

ThinkEquity LLC, a stock trading and research company, and its affiliates have filed for Chapter 7 bankruptcy protection in Delaware bankruptcy court.  Court records show that the company has debts and assets ranging from $1 million to $10 million.

The firm has worked with the Securities and Exchange Commission and Securities Investor Protection Corporation in transferring customer accounts. It has confirmed that all of the customer property has been placed in clearinghouses, which carried out trades in accordance with the instruction of ThinkEquity.

Last month, ThinkEquity CEO Greg Wright said that the company has stopped its stock trading business because it suffered during the recession. It intends to put the remaining investment banking unit to a different company, Wright said.

The closing was not expected although ThinkEquity was not the first firm to close its stock trading business. Auriga USA LLC, an institutional dealer and broker of trading in residential mortgage backed securities, dissolved its stock trading and research unit last June for the same reasons. The firm cut 35 jobs.

The analysts who left the closed firms were hired by a few small to medium-sized banks.

WallachBeth Capital, which is mostly noted for exchange-traded fund trading and execution, hired a staff from Auriga to reinforce its equity-trading book.

Brean Capital LLC, formerly known as Brean Murray Carret, employed an analyst from ThinkEquity for the company’s rebranding and expansion.

A Chapter 7 bankruptcy petition under the U.S. bankruptcy code generally means that the company’s assets will be sold to pay creditors.

This looks like a sign of the times as a lot of companies are having a hard time to make ends meet with the current status of the economy. More consolidations are seen in the financial markets as many companies are declaring bankruptcy due to bad investments.

 

- A company struggling with serious financial issues can wind up in a position in which declaring bankruptcy is the only possible and practical option. A San Antonio Chapter 7 Attorney can help determine what course a company needs to take.

Leave a Comment

Previous post:

Next post: