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Horse-lovers' publication goes bankrupt

A long-running biweekly magazine out of Lexington has declared Chapter 7 bankruptcy, according to its editor. The Thoroughbred Times, which covered horse-related breeding and racing information, closed its doors on Sept. 14.

The magazine employed 27 people full-time, according to the publication's editor. The parent company of the magazine, which is based out of California, reportedly could not keep the publication in business. The group had been in dire financial straits for some time, according to company representatives, despite employees' best efforts to keep the publication afloat.

The publication's editors said Thoroughbred Times had accumulated a significant amount of debt in its attempt to stay in business.

Company leaders report that the publishing group also publishes Cat Fancy, Dog Fancy, Horse Illustrated and Hobby Farms, among other publications. The owner of the parent company could not be reached for comment.

Chapter 7 bankruptcy involves liquidation of business assets. Those assets can include office supplies, such as computers and furniture. In the case of a publication, presses, publishing equipment and other sophisticated technology could also be included in that group. Furthermore, a library, photograph files and other publications are also susceptible to being sold. The editor of Thoroughbred Times says that all of the assets will be turned over to a trustee for sale. That money will be distributed among lenders to repay outstanding debts.

Assets also include rights to the Thoroughbred Record, a publication that dates back to 1895.

The company chose to file Chapter 7 bankruptcy instead of Chapter 13 because it was unable to develop a payment plan to compensate its creditors for debt. Chapter 13 bankruptcy often allows businesses to remain operational, paying back a reduced amount of debt while maintaining operational solvency. Chapter 7 bankruptcy, conversely, involves liquidation of all assets, and it often results in the business's demise. Some operations are able to recover after this type of bankruptcy, and a qualified bankruptcy attorney can assist with that process.

Source: The Lexington Herald-Leader, "The Thoroughbred Times shuts down," Valarie Honeycutt Spears, Sept. 15, 2012

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