60-471: The Elkins Estate is an American 42-acre (170,000 m) estate located in Elkins Park, Pennsylvania . The estate contains seven buildings, the most notable being Elstowe Manor and Chelten House, mansions designed by Horace Trumbauer . Elstowe Manor was built in 1898 at the location where "Needles", the former family summer home of William L. Elkins , had stood. Elkins, a Philadelphia businessman,
120-531: A stuccoed Gothic tracery ceiling with Tudor-style paneling. Stables are located directly behind the house. In 1932, William H. Elkins, grandson of William L. Elkins, sold the Elstowe manor property to the Dominican Sisters of St. Catherine de' Ricci. Chelten House was owned by Philadelphia cigarette manufacturer Stephen X. Stephano. After the death of his wife, Penelope, he sold Chelten House to
180-734: A 2005 study claimed the drop may have been due to an increase in the incorrect classification of many bankruptcies as "consumer cases" rather than "business cases". Cases involving more than US$ 50 million in assets are almost always handled in federal bankruptcy court, and not in bankruptcy-like state proceeding. The largest bankruptcy in history was of the US investment bank Lehman Brothers Holdings Inc., which listed $ 639 billion in assets as of its Chapter 11 filing in 2008. The 16 largest corporate bankruptcies as of December 13, 2011 Enron, Lehman Brothers, MF Global and Refco have all ceased operations while others were acquired by other buyers or emerged as
240-441: A Chapter 11 bankruptcy, the debtor corporation is typically recapitalized so that it emerges from bankruptcy with more equity and less debt, a process through which some of the debtor corporation's debts may be discharged. Determinations as to which debts are discharged, and how equity and other entitlements are distributed to various groups of investors, are often based on a valuation of the reorganized business. Bankruptcy valuation
300-508: A boutique hotel. Elkins Park, Pennsylvania Elkins Park is an unincorporated community in Montgomery County, Pennsylvania , United States. It is split between Cheltenham and Abington Townships in the northern suburbs outside of Philadelphia , which it borders along Cheltenham Avenue roughly 7 miles (11 km) from Center City . The community is four station stops from Center City on Septa Regional Rail . It
360-507: A higher price for divisions or other assets than a chapter 7 liquidation would be likely to achieve. Section 362(d) of the Bankruptcy Code allows the court to terminate, annul, or modify the continuation of the automatic stay as may be necessary or appropriate to balance the competing interests of the debtor, its estate, creditors, and other parties in interest and grants the bankruptcy court considerable flexibility to tailor relief to
420-460: A home on the estate for his son, George W. Elkins. This mansion, Chelten House, was built in the Elizabethan style. The house was situated on a large, balustraded terrace which allows for outdoor living space. The first floor of the house is built of local Wissahickon schist , while the second and third floors are half-timbered with panels of pebbledash . The interior space is fashioned with
480-427: A plan. If the debtor proposes a plan within the 120-day exclusivity period, a 180-day exclusivity period from the date of filing for chapter 11 is granted in order to allow the debtor to gain confirmation of the proposed plan. With some exceptions, the plan may be proposed by any party in interest. Interested creditors then vote for a plan. If the judge approves the reorganization plan and the creditors all agree, then
540-404: A profit. The trustee or debtor-in-possession normally rejects a contract or lease to transform damage claims arising from the nonperformance of those obligations into a prepetition claim. In some situations, rejection can also limit the damages that a contract counterparty can claim against the debtor. Chapter 11 follows the same priority scheme as other bankruptcy chapters. The priority structure
600-418: A reorganization process for the majority of private individuals. When a business is unable to service its debt or pay its creditors , the business or its creditors can file with a federal bankruptcy court for protection under either Chapter 7 or Chapter 11. In Chapter 7, the business ceases operations, a trustee sells all of its assets, and then distributes the proceeds to its creditors. Any residual amount
660-535: A secured party with an interest in an aircraft the ability to take possession of the equipment within 60 days after a bankruptcy filing unless the airline cures all defaults. More specifically, the right of the lender to take possession of the secured equipment is not hampered by the automatic stay provisions of the Bankruptcy Code. In August 2019, the Small Business Reorganization Act of 2019 ("SBRA") added Subchapter V to Chapter 11 of
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#1732771800154720-460: A separate wing leading to a large gallery. These wings all lead to a grand staircase in the center of the house. The second floor has nine bedrooms, three dressing rooms, and seven baths. The third floor and raised basement are servant quarters. With the mansion, Trumbauer also designed the wrought-iron gates at the entrance to the estate along with a small gatehouse, a powerhouse, and an eight-car garage. In 1896, Elkins commissioned Trumbauer to build
780-655: A series of strokes, and is taken to "Elkins Park Hospital". This would have actually been the former Rolling Hill Hospital, which opened in 1953, and is now known as MossRehab and Einstein at Elkins Park, part of the Einstein Healthcare Network . Ann Patchett 's 2019 novel The Dutch House is primarily set in Elkins Park. Chapter 11 bankruptcy Chapter 11 of the United States Bankruptcy Code ( Title 11 of
840-565: A successful reorganization and retain control of the business and increase oversight and ensure a quick reorganization. A Subchapter V case contrasts from a traditional Chapter 11 in several key aspects: it is earmarked only for the "small business debtor" (as defined by the Bankruptcy Code), so, only a debtor can file a plan of reorganization . The SBRA requires the U.S. Trustee appoint a "subchapter V trustee" to every Subchapter V case to supervise and control estate funds, and facilitate
900-529: A tool for escaping labor contracts, usually 30–35% of an airline's operating cost. Every major US airline has filed for Chapter 11 since 2002. In the space of 2 years (2002–2004) US Airways filed for bankruptcy twice leaving the AFL–CIO , pilot unions and other airline employees claiming the rules of Chapter 11 have helped turn the United States into a corporatocracy . The trustee or debtor-in-possession
960-571: A venue for elegant special events. The property was reopened in September 2009 as Elkins Estate and has hosted a number of wedding receptions and events. But the conservancy could not keep up payments to the Sisters who held the mortgage. In November 2010, because of numerous missed payments, including a $ 250,000 payment on the principal, the Dominican congregation foreclosed on the property, and
1020-399: Is defined primarily by § 507 of the Bankruptcy Code ( 11 U.S.C. § 507 ). As a general rule, administrative expenses (the actual, necessary expenses of preserving the bankruptcy estate, including expenses such as employee wages, and the cost of litigating the chapter 11 case) are paid first. Secured creditors —creditors who have a security interest , or collateral , in
1080-442: Is given the right, under § 365 of the Bankruptcy Code, subject to court approval, to assume or reject executory contracts and unexpired leases. The trustee or debtor-in-possession must assume or reject an executory contract in its entirety, unless some portion of it is severable. The trustee or debtor-in-possession normally assumes a contract or lease if it is needed to operate the reorganized business or if it can be assigned or sold at
1140-399: Is notable for its varied architectural styles (among them: Modern , American colonial and Dutch colonial , Queen Anne , English Cottage and Tudor ) its wealth of homes designed by renowned 19th and 20th century architects such as Horace Trumbauer , Louis Kahn and Robert A.M. Stern and its diversity of religious institutions. With six synagogues it also makes up the foundation of
1200-403: Is often highly contentious because it is both subjective and important to case outcomes. The methods of valuation used in bankruptcy have changed over time, generally tracking methods used in investment banking, Delaware corporate law, and corporate and academic finance, but with a significant time lag. Chapter 11 retains many of the features present in all, or most, bankruptcy proceedings in
1260-421: Is returned to the owners of the company. In Chapter 11, in most instances the debtor remains in control of its business operations as a debtor in possession , and is subject to the oversight and jurisdiction of the court. A Chapter 11 bankruptcy will result in one of three outcomes for the debtor: reorganization, conversion to Chapter 7 bankruptcy, or dismissal. In order for a Chapter 11 debtor to reorganize,
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#17327718001541320-438: Is stayed, or put on hold, until it can be resolved in bankruptcy court, or resumed in its original venue. An example of proceedings that are not necessarily stayed automatically are family law proceedings against a spouse or parent. Further, creditors may file with the court seeking relief from the automatic stay. If the business is insolvent , its debts exceed its assets and the business is unable to pay debts as they come due,
1380-469: Is the airline industry in the United States; in 2006 over half the industry's seating capacity was on airlines that were in Chapter 11. These airlines were able to stop making debt payments, break their previously agreed upon labor union contracts, freeing up cash to expand routes or weather a price war against competitors — all with the bankruptcy court's approval. Studies on the impact of forestalling
1440-533: Is zoned to Abington School District . Private: Tertiary: Elkins Park is served by SEPTA Regional Rail trains on the Glenside Line , Warminster Line , West Trenton Line and Lansdale/Doylestown Line at the Elkins Park station . The Jenkintown and Melrose Park stations are also found near the neighborhood of Elkins Park, and are served by the same regional rail lines. SEPTA bus routes 28, 55, 70 and 77 also provide service to Elkins Park. Toward
1500-599: The Dominican Sisters in 1948. The Dominican Sisters operated both buildings (known as the Dominican Retreat House) as a women's religious retreat and preserved the grounds and historical integrity of the buildings. Thousands of women and men attended retreats, days of prayer, and other spiritual programs for 75 years. Women would come to pray, meditate and find a place of refuge and reflection. At its peak, as many as 14,000 women and men came to
1560-511: The United States Trustee , can request the court convert the case into a liquidation under chapter 7, or appoint a trustee to manage the debtor's business. The court will grant a motion to convert to chapter 7 or appoint a trustee if either of these actions is in the best interest of all creditors. Sometimes a company will liquidate under chapter 11 (perhaps in a 363 sale), in which the pre-existing management may be able to help get
1620-694: The " Old York Road Corridor" of the Philadelphia area Jewish community, supported by the approximately 25,000 Jews in the Cheltenham- Jenkintown -Abington region. Seasonally Elkins Park hosts a variety of religious and cultural festivals such as the "Taste of Greece" food festival, the Romanian food festival, the Serbian food festival, various Jewish festivals such as a multi-congregation Purim celebration, and arts festivals like "Arts in
1680-455: The Bankruptcy Code requires the bankruptcy court reach certain conclusions prior to confirming or approving the plan and making it binding on all parties in the case, most notably that the plan complies with applicable law and was proposed in good faith. The court must also find that the reorganization plan is feasible in that, unless the plan provides otherwise, the plan is not likely to be followed by further reorganization or liquidation. In
1740-482: The Bankruptcy Code. Subchapter V, which took effect in February 2020, is reserved exclusively for the small business debtor with the purpose of expediting bankruptcy procedure and economically resolving small business bankruptcy cases. Subchapter V retains many of the advantages of a traditional Chapter 11 case without the unnecessary procedural burdens and costs. It seeks to increase the debtor's ability to negotiate
1800-606: The Dominican Retreat House in one year. The dedication of the Sisters to preservation of the historic mansions on the estate was extraordinary and, as of 2013, the original features and architectural details remain intact. It was described as the most significant example of Gilded Age architecture in the region by John Gallery of the Philadelphia Preservation Alliance . Over time, the needs of people coming on retreat changed, and
1860-577: The Park". Though distinct communities, the neighborhoods of Melrose Park and historic La Mott share a postal code with Elkins Park. As of 2021, the US Census QuickFacts reports that Elkins Park is 62.6% white alone, 27.6% Black or African American, 4.9% two or more races, 4.2% Hispanic or Latino, and 3.8% Asian alone. The total population was 6,901 people according to 2020 Census figures. The median household income in 2022 dollars
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1920-570: The United States Code ) permits reorganization under the bankruptcy laws of the United States. Such reorganization, known as Chapter 11 bankruptcy , is available to every business , whether organized as a corporation , partnership or sole proprietorship , and to individuals, although it is most prominently used by corporate entities. In contrast, Chapter 7 governs the process of a liquidation bankruptcy, though liquidation may also occur under Chapter 11; while Chapter 13 provides
1980-401: The United States, where they were assembled on site. The interior was designed by renowned French interior decor experts Allard et Fils, which accounts for the distinctly French feel in some of the rooms. The home is anchored on either side by a large library and drawing-room. Between these are two wings, one containing a breakfast room and dining room and the other a billiard room and den, with
2040-525: The United States. It provides additional tools for debtors as well. Most importantly, 11 U.S.C. § 1108 empowers the trustee to operate the debtor's business. In Chapter 11, unless a separate trustee is appointed for cause, the debtor, as debtor in possession, acts as trustee of the business. Chapter 11 affords the debtor in possession a number of mechanisms to restructure its business. A debtor in possession can acquire financing and loans on favorable terms by giving new lenders first priority on
2100-477: The bankruptcy restructuring may result in the company's owners being left with nothing; instead, the owners' rights and interests are ended and the company's creditors are left with ownership of the newly reorganized company. All creditors are entitled to be heard by the court. The court is ultimately responsible for determining whether the proposed plan of reorganization complies with bankruptcy laws. One controversy that has broken out in bankruptcy courts concerns
2160-399: The business's earnings. The court may also permit the debtor in possession to reject and cancel contracts. Debtors are also protected from other litigation against the business through the imposition of an automatic stay . While the automatic stay is in place, creditors are stayed from any collection attempts or activities against the debtor in possession, and most litigation against the debtor
2220-423: The chances of a successful outcome and sufficient debtor-in-possession financing may be unavailable during an economic recession. A preplanned, pre-agreed approach between the debtor and its creditors (sometimes called a pre-packaged bankruptcy ) may facilitate the desired result. A company undergoing Chapter 11 reorganization is effectively operating under the "protection" of the court until it emerges. An example
2280-448: The confirmation hearing, a disclosure statement must be approved by the bankruptcy court. Once the disclosure statement is approved, the plan proponent will solicit votes from the classes of creditors. Solicitation is the process by which creditors vote on the proposed confirmation plan. This process can be complicated if creditors fail or refuse to vote. In which case, the plan proponent might tailor his or her efforts in obtaining votes, or
2340-626: The conservancy filed for Chapter 11 bankruptcy . The property was in bankruptcy reorganization until October 2012, when the case was dismissed. The congregation filed a motion to evict the conservancy in March 2012 after it defaulted on a revised settlement agreement. The agreement held that if the conservancy defaulted on its first payment of $ 300,000 it would vacate the premises, but the conservancy refused to leave and continued to hold events there until November 2012. The legal battle continued. The Philadelphia Inquirer ran an extensive story describing
2400-497: The creditors' rights to enforce their security reach different conclusions. Chapter 11 cases dropped by 60% from 1991 to 2003. One 2007 study found this was because businesses were turning to bankruptcy-like proceedings under state law, rather than the federal bankruptcy proceedings, including those under chapter 11. Insolvency proceedings under state law, the study stated, are currently faster, less expensive, and more private, with some states not even requiring court filings. However,
2460-444: The debtor does file a plan within the first 120 days, the exclusivity period is extended to 180 days after the order for relief for the debtor to seek acceptance of the plan by holders of claims and interests. If the judge approves the reorganization plan and the creditors all "agree", then the plan can be confirmed. §1129 of the Bankruptcy Code requires the bankruptcy court reach certain conclusions prior to "confirming" or "approving"
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2520-403: The debtor must file (and the court must confirm) a plan of reorganization. In effect, the plan is a compromise between the major stakeholders in the case, including the debtor and its creditors. Most Chapter 11 cases aim to confirm a plan, but that may not always be possible. If the judge approves the reorganization plan and the creditors all agree, then the plan can be confirmed. Section 1129 of
2580-433: The debtor will be able to pay most administrative and priority claims (priority claims over unsecured claims ) on the effective date. Like other forms of bankruptcy, petitions filed under chapter 11 invoke the automatic stay of § 362. The automatic stay requires all creditors to cease collection attempts, and makes many post-petition debt collection efforts void or voidable. Under some circumstances, some creditors, or
2640-422: The debtor's property—will be paid before unsecured creditors. Unsecured creditors' claims are prioritized by § 507. For instance the claims of suppliers of products or employees of a company may be paid before other unsecured creditors are paid. Each priority level must be paid in full before the next lower priority level may receive payment. Section 1110 ( 11 U.S.C. § 1110 ) generally provides
2700-720: The department store chain. Today, it remains home to many gilded age mansions such as Lynnewood Hall , a 110-room, neoclassical estate, the Elkins Estate presently being restored as a hotel-spa, distillery and events center and the Henry West Breyer Sr. House , the former residence of the ice cream magnate which now serves as the Cheltenham Township Municipal building. In 2018, New York Magazine described Elkins Park as "an old, elegant neighborhood of close-clustered homes". It
2760-537: The development of a consensual plan. It also eliminates automatic appointment of an official committee of unsecured creditors and abolishes quarterly fees usually paid to the U.S. Trustee throughout the case. Most notably, Subchapter V allows the small business owner to retain their equity in the business so long as the reorganization plan does not discriminate unfairly and is fair and equitable with respect to each class of claims or interests. The reorganization and court process may take an inordinate amount of time, limiting
2820-507: The economic challenges of operating the buildings became unsustainable for the Dominican Sisters. The Dominican Retreat House was at the time of its closing in 2006 the oldest retreat house for women in the United States. In February 2009, the Dominican Sisters sold the 42-acre property to the Land Conservancy of Elkins Park, PA, who intended to use the facility for group spiritual, health and wellness education retreats, and also as
2880-410: The exigencies of the circumstances. Relief from the automatic stay is generally sought by motion and, if opposed, is treated as a contested matter under Bankruptcy Rule 9014. A party seeking relief from the automatic stay must also pay the filing fee required by 28 U.S.C.A. § 1930(b). In the new millennium, airlines have fallen under intense scrutiny for what many see as abusing Chapter 11 bankruptcy as
2940-551: The legal dispute on October 31, 2012. On January 24, 2013, the Dominican Sisters and the conservancy reached an agreement in which the conservancy would vacate the premises and relinquish control to the Sisters by January 30, 2013. The Sisters regained possession of the property and sold the property to Landmark Developers in August 2019 for $ 6.5 million. Landmark Developers is using the Elkins Estate as an event venue and
3000-405: The plan and making it binding on all parties in the case. Most importantly, the bankruptcy court must find the plan (a) complies with applicable law, and (b) has been proposed in good faith. Furthermore, the court must determine whether the plan is "feasible, " in other words, the court must safeguard that confirming the plan will not yield to liquidation down the road. The plan must ensure that
3060-412: The plan can be confirmed. If at least one class of creditors objects and votes against the plan, it may nonetheless be confirmed if the requirements of cramdown are met. In order to be confirmed over the creditors' objection, the plan must not discriminate against that class of creditors, and the plan must be found fair and equitable to that class. Upon confirmation, the plan becomes binding and identifies
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#17327718001543120-419: The plan is a compromise between the major stakeholders in the case, including, but not limited to the debtor and its creditors. Most chapter 11 cases aim to confirm a plan, but that may not always be possible. Section 1121(b) of the Bankruptcy Code provides for an exclusivity period in which only the debtor may file a plan of reorganization. This period lasts 120 days after the date of the order for relief, and if
3180-412: The plan itself. The plan may be modified before confirmation, so long as the modified plan meets all the requirements of Chapter 11. A chapter 11 case typically results in one of three outcomes: a reorganization; a conversion into chapter 7 liquidation, or it is dismissed. In order for a chapter 11 debtor to reorganize, they must file (and the court must confirm) a plan of reorganization. Simply put,
3240-442: The proper amount of disclosure that the court and other parties are entitled to receive from the members of the creditor's committees that play a large role in many proceedings. Chapter 11 usually results in reorganization of the debtor's business or personal assets and debts, but can also be used as a mechanism for liquidation. Debtors may "emerge" from a chapter 11 bankruptcy within a few months or within several years, depending on
3300-402: The size and complexity of the bankruptcy. The Bankruptcy Code accomplishes this objective through the use of a bankruptcy plan. The debtor in possession typically has the first opportunity to propose a plan during the period of exclusivity. This period allows the debtor 120 days from the date of filing for chapter 11 to propose a plan of reorganization before any other party in interest may propose
3360-460: The treatment of debts and operations of the business for the duration of the plan. If a plan cannot be confirmed, the court may either convert the case to a liquidation under chapter 7, or, if in the best interests of the creditors and the estate, the case may be dismissed resulting in a return to the status quo before bankruptcy. If the case is dismissed, creditors will look to non-bankruptcy law in order to satisfy their claims. In order to proceed to
3420-482: The western end of Elkins Park is Pennsylvania Route 611 (Old York Road). In Elkins Park, Pennsylvania Route 73 runs along Township Line Road, mostly marking the border between Cheltenham and Abington townships. In the AMC period drama television series Mad Men , the character Betty Draper was raised in the "tiny Philadelphia suburb of Elkins Park, Pennsylvania". During the show's second season , Betty's father has
3480-673: Was $ 121,135, the median family income was $ 158,000 and the median income for married-couple families was $ 180,189. The per capita income was $ 72,072. Elkins Park is split between Cheltenham and Abington Townships in the suburbs outside of Philadelphia . It is represented by Madeleine Dean in Pennsylvania's 4th congressional district . The portion in Cheltenham Township is zoned to Cheltenham Township School District . The portion in Abington Township
3540-632: Was integral in the formation of the Pennsylvania Railroad Company and the Philadelphia Rapid Transit Company, the forerunner of SEPTA . The 45-room manor was built in the style of Italian High Renaissance . The unique interior features, such as the ornately carved wood and gilded molding, marble columns and accents, frescoed ceilings, gargoyles and the like, were crafted in Europe and shipped to
3600-481: Was listed as a census-designated place prior to the 2020 census . Historically, Elkins Park was home to Philadelphia 's early 20th century business elite, among them John B. Stetson , John Wanamaker , Henry W. Breyer , Jay Cooke , William Lukens Elkins and Peter A.B. Widener . In the later 20th century, it was home to Ralph J. Roberts , co-founder of Comcast , as well as to the Gimbels family, founders of
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