Bankruptcy News

BofA Exec Calls Countrywide Bankruptcy an Option

Mon, 17 Jun 2013 20:00:55 -0400

At a hearing in New York state court last week, Terrence Laughlin, Bank of America’s Chief Risk Officer, said his company could put its Countrywide Financial unit into bankruptcy if it fails to win court approval for an $8.5 billion settlement with mortgage investors.

B of A rescued Countrywide at the height of the financial crisis in 2008, but maintained a separate legal identity for the subprime lender. Prescient decision, as the North-Carolia based bank has since been inundated with litigation.

B of A ultimately entered into an $8.5 billion settlement with investors who owned bonds issued by Countrywide. The agreement involves 22 institutional investors, including Bank of New York Mellon, Blackrock, Metlife and Pimco.

That settlement has since been challenged by insurer AIG which says a more appropriate amount is $50 billion.

Laughlin, who was testifying at a hearing in New York state court on whether to approve the deal, said that if the deal is not approved, bankruptcy is a possibility. Laughlin said, “One of the options that was available to us and continues to be available to us was to put Countrywide into bankruptcy.”

Miles Electric Vehicles Files For Bankruptcy Hong Kong-based...

Mon, 17 Jun 2013 17:32:44 -0400

Miles Electric Vehicles Files For Bankruptcy

Hong Kong-based Miles Electric Vehicles Ltd has filed for Chapter 11 bankruptcy protection in U.S. Bankruptcy Court in Delaware. Also filing for bankruptcy protection was Lio Energy Systems Holdings, based in Delaware.

Both companies are affiliates of the failed U.S. electric-car maker Coda Automotive, and petitioned the court to have their cases jointly administered with those of parent Coda Holdings and its affiliate.
Coda sold just 100 of its Chinese-made all-electric sedans before closing its doors earlier this year.

In its filing, Miles indicated assets in the $10 million to $50 million range and debts in the $50 million to $100 million range.

Miles, a California-based company, was founded in 2004 by entrepreneur Miles Rubin, a co-founder and chairman emeritus of Coda Automotive.
Lio Energy Systems is described in the filing as a direct subsidiary of Coda Holdings, while Miles Electric Vehicles Ltd is a direct subsidiary of Lio Energy.

Miles originally planned to sell an electric sedan called XS 500 - a battery-powered compact developed by China’s Hafei Automotive. That vehicle that eventually morphed into the $38,000 Coda Sedan. Instead, Miles offers low-speed electric cars in the $20,000 range. The company also offers low-speed work trucks, which are also priced around $20,000.

Book Company Show Positives Results after Bankruptcy Neebo,...

Thu, 13 Jun 2013 17:52:56 -0400

Book Company Show Positives Results after Bankruptcy

Neebo, Inc., is the new name for the company that owns Nebraska Book Co., which emerged from bankruptcy in 2012.

Nebraska Book Co. Inc., one of Lincoln’s oldest companies, filed for bankruptcy protection in 2011 after a debt-financed expansion via acquisition of stores nationwide was thwarted by the recession, online competition and the rise of book rentals.

The new company has recently released its fourth quarter and year-end financial results and says the data shows the company is well into recovery.

For the fiscal year ended March 31, the company reported adjusted earnings of $41.9 million before interest, taxes, depreciation and amortization. That number represents an increase of $18.2 million, or 76.7 percent, compared to the previous fiscal year.

The company’s long-term debt dropped from $500 million a year ago March 31 to $133.5 million. The company said it made $53.9 million of voluntary payments toward debt during fiscal 2013, including $27.6 million during the fiscal 2013 fourth quarter.

For the quarter ended March 31, the company had a net loss of $641,000, far less than the $36.2 million loss of a year earlier. Revenues for the latest fiscal year were $458.3 million, down from $497 million a year earlier.

Textbook rentals, which have revolutionized the college textbook industry, represented 29.8 percent of textbook sales in the College Stores division for the fiscal year.

Steve Clemente, chief executive of Neebo, Inc. said in a press release:

“We have greatly improved our financial position this fiscal year by voluntarily paying down a significant amount of debt. The team was laser focused on successfully increasing cash flow, improving gross margin, increasing textbook rental penetration, pursuing more on-campus stores and divesting unprofitable stores.

We have proven that we can deliver solid financial results, and we’re ready to capitalize on our momentum with new strategies that will drive future growth and equity value.”

United Protection Security Group Inc. and United Protection...

Wed, 12 Jun 2013 17:20:00 -0400

United Protection Security Group Inc. and United Protection Services Inc. became officially bankrupt on June 10, 2013, by operation of the Canada Bankruptcy and Insolvency Act.

Meyers Norris Penny LLP has been named the Trustee in the case.

The bankruptcy was initiated after the Companies’ U.S. based lender issued a default notice and immediately stopped all funding.

According to the company, this action, which occurred on Wednesday, May 29, 2013, made it impossible to carry on business in the ordinary course or arrange for an orderly sale or disposition of the business.

UPSG says it appears that the lender imposed a series of questionable and possibly unjustified charges on the Companies’ credit facility during the first part of this year, which had the effect of rapidly reducing the Companies’ available credit margining, which in turn led to first one, and then a second default on the Companies semi-monthly filing and remittances to the Canada Revenue Agency for payroll deductions. Those defaults led to the lender issuing its default notice and freezing the Companies’ funds and incoming revenues.

Since the bankruptcy filing, a major competitor stepped in and took over most of the Companies’ large accounts, ensuring service continuity and, in most cases, continued employment of the Companies’ security guards. However, many security guards have not been paid by the Companies.

During this period the Companies say they have been unable to successfully negotiate any interim financing or reorganization proposal, nor were they able to complete its proposal under the insolvency legislation, leading to it officially becoming bankrupt.

AMR Corporation, US Airways Announce New Senior Leadership Team

Tue, 11 Jun 2013 10:01:37 -0400

Bankrupt AMR Corporation, the parent company of American Airlines, Inc., which has merged with US Airways Group, Inc. as a result of that bankruptcy, has announced the senior leadership team that will be responsible for guiding the new American Airlines after the closing of the companies’ expected merger.

As previously announced, Tom Horton, 52, will serve as Chairman of the Board of the new American Airlines. Doug Parker, 51, will serve as Chief Executive Officer and a member of the Board of Directors.

The senior leadership team announced yesterday includes:

Scott Kirby, 45, President: responsibilities include planning, marketing, sales, alliances, pricing/yield management and operations
Elise Eberwein, 48, Executive Vice President, People and Communications: responsible for human resources, media relations, internal communications, social media and public affairs
Beverly Goulet, 58, Chief Integration Officer: will lead the complex integration process of merging American Airlines and US Airways into one airline
Robert Isom, 49, Chief Operating Officer and Chief Executive Officer of US Airways, Inc. post-close: responsible for all aspects of airline operations, including customer service, flight operations, maintenance, regional carrier management, cargo, safety and security
Stephen Johnson, 56, Executive Vice President, Corporate Affairs: responsibilities include corporate and legal affairs, government and regulatory affairs, labor relations, and real estate
Derek Kerr, 48, Chief Financial Officer: responsible for oversight of all financial areas, including financial planning and analysis, corporate finance and treasury functions, purchasing, controller and audit functions and investor relations
Maya Leibman, 47, Chief Information Officer: responsible for all information technology systems, including systems development, infrastructure, and planning
William Ris, 65, Senior Vice President, Government Affairs: responsible for all federal and international government and regulatory affairs and public policy

Kirby, Eberwein, Isom, Johnson and Kerr will join the new American from US Airways; Goulet, Leibman and Ris will join from American.

Additionally, Dan Garton will step down as President and Chief Executive Officer of American Eagle Airlines later this year. A successor will be named prior to Mr. Garton’s departure.

AMR and US Airways agreed to combine to create the new American Airlines, a premier global carrier. Headquartered in Dallas-Fort Worth, the new American Airlines will become a highly competitive alternative for consumers to other global carriers and will provide greater flight opportunities, with more than 6,700 daily flights to 336 destinations in 56 countries.

AMR, US Airways Announce Board of Directors for the New American Airlines

Mon, 10 Jun 2013 13:54:10 -0400

AMR Corporation (OTCQB: AAMRQ), the parent company of American Airlines, Inc., and US Airways Group, Inc. have announced the members of the Board of Directors of the combined company, American Airlines Group Inc., effective after the closing of the companies’ expected merger.

As previously announced, the Board of Directors will be comprised of twelve members. Thomas Horton, chairman, president and chief executive officer of AMR will serve as Chairman of the combined airline’s Board of Directors through its first annual meeting of shareholders. Doug Parker, chairman and CEO of US Airways Group, will serve as Chief Executive Officer and a member of the Board of Directors. Mr. Parker will assume the position of Chairman of the Board following the conclusion of Mr. Horton’s service.

In addition to Messrs. Horton and Parker, the Board will be comprised of the following individuals, who the companies believe have the experience, breadth and perspective to guide the new American Airlines to create value for all of the company’s stakeholders:

John T. Cahill, Lead Independent Director. Mr. Cahill has served as the Executive Chairman of Kraft Foods Group, Inc., a food and beverage company, since October 2012. Previously he served as an industrial partner at Ripplewood Holdings LLC, a private equity firm, and he spent nine years with The Pepsi Bottling Group, Inc.
James F. Albaugh. Mr. Albaugh has been a senior advisor to The Blackstone Group L.P. since December 2012. Prior to that he was President and Chief Executive Officer of The Boeing Company’s Commercial Airplanes business unit.
Jeffrey D. Benjamin. Mr. Benjamin has been a senior advisor to Cyrus Capital Partners, L.P., a registered investment adviser, since June 2008 and serves as a consultant to Apollo Global Management, LLC, a private investment fund.
Michael J. Embler. Mr. Embler served as the Chief Investment Officer of Franklin Mutual Advisers LLC, an asset management subsidiary of Franklin Resources, Inc., from 2005 to 2009.
Matthew J. Hart. Mr. Hart was President and Chief Operating Officer of Hilton Hotels Corporation, a hotel developer and operator, from 2004 until the acquisition of Hilton by the Blackstone Group in 2007.
Alberto Ibarguen. Mr. Ibarguen has served as a director of AMR Corporation and American since 2008. He has also served as President and Chief Executive Officer of the John S. and James L. Knight Foundation since July 2005.
Richard C. Kraemer. Mr. Kraemer is President of Chartwell Capital, Inc., a private investment company.
Denise M. O’Leary. Ms. O’Leary has been a private investor in early stage companies since 1996.
Ray M. Robinson. Mr. Robinson has served as a director of AMR Corporation and American since 2005. Mr. Robinson started his career at AT&T in 1968.
Richard P. Schifter. Mr. Schifter has been a partner at TPG Capital (formerly Texas Pacific Group) since 1994.

Allon Provides Update to its Proposal and Reorganization In the...

Sun, 09 Jun 2013 13:41:00 -0400

Allon Provides Update to its Proposal and Reorganization

In the beginning of this month, Allon Therapeutics Inc., a clinical stage biotechnology company focused on commercializing high potential central nervous system drugs, announced it had filed a proposal pursuant to Canada’s Bankruptcy and Insolvency Act.

In its bankruptcy proposal, the company said it had executed a non-binding term sheet with Paladin Labs Inc. outlining Paladin’s expression of interest to obtain all of the issued and outstanding shares of Allon through a reorganization of Allon’s share structure. Paladin Labs is self-described as Canada’s leading specialty pharmaceutical company.

Allon has now announced that Deloitte & Touche Inc., as trustee in the bankruptcy, has received an unsolicited offer from a third party. The Company noted that the Trustee is investigating this matter and will provide updates to creditors as or when more information becomes available.

In its original statement, Allon said that it expected creditors to derive a greater benefit as a result of the Transaction and the Proposal then would result from a liquidation process under the BIA.

The agreement with Palladin called for all issued and outstanding shares of Allon to be sold for CDN$1.00 in the aggregate; for Paladin to make a $900,000 cash payment to Allon; the cancellation of all outstanding employee stock options and other agreements granting rights to subscribe for purchase any shares or other securities in Allon; a reorganization pursuant to the Canada Business Corporations Act whereby Allon’s articles will be amended eliminating current classes of shares and creating a new class of common shares which shall, at closing, be issued to Paladin; and obtaining of all necessary court and regulatory approvals prior to the closing date, which must occur no later than August 1, 2013.

Bankruptcy Court Approves AMR Disclosure Statement AMR...

Fri, 07 Jun 2013 13:42:00 -0400

Bankruptcy Court Approves AMR Disclosure Statement

AMR Corporation, the parent company of American Airlines, Inc., has announced that the U.S. Bankruptcy Court for the Southern District of New York approved the Disclosure Statement filed in connection with the company’s proposed Plan of Reorganization.

The Court also authorized American to begin soliciting votes on the Plan of Reorganization from creditors and stockholders. Solicitation packages will be distributed by June 20 and the voting deadline is July 29. The hearing before the Court to consider confirmation of the Plan is scheduled for Aug. 15, 2013.

The company further announced that its Plan is supported by the Official Committee of Unsecured Creditors. Holders of approximately $1.6 billion of pre-petition unsecured claims also have committed to vote to accept the Plan.

The proposed Plan is to become effective concurrently with the consummation of a merger with US Airways. The proposed merger is expected to maximize recoveries for all of the company’s economic stakeholders and the proposed Plan provides a recovery of 3.5% of the common stock (on an as-converted basis) of the combined company for holders of existing AMR equity securities, with the potential for such holders to receive additional shares.

In making the announcement, AMR chairman, president and CEO Tom Horton said:

This is a significant step forward in our efforts to complete the most successful restructuring in aviation history.

We’re in the home stretch of our restructuring and thanks to the hard work of our team, we are positioned to emerge a highly competitive, leading global airline focused on delivering the very best for our customers, our people, and our investors.”

New York City’s Dance New Amsterdam Files for...

Thu, 06 Jun 2013 11:40:03 -0400

New York City’s Dance New Amsterdam Files for Bankruptcy

Dance New Amsterdam a progressive dance education and performance center in New York City, has filed for Chapter 11 bankruptcy protection .

DNA was the first nonprofit organization that opened in the Downtown area of Manhattan after 9/11. The nonprofit is housed in a 25,000 square-foot facility at 280 Broadway, employs 650 people and costs more than $2 million to operate annually. The center serves more than 30,000 students and performers and over 700 dance companies and performing arts groups.

Like many other nonprofits, the economic downturn has cost DNA its endowments. The dance center has long faced possible eviction due to unpaid rent, and last Fall, it lost a rental partner when Pace University stopped renting dance class space.

According to a statement, the filing will allow DNA to remain open as it works to implement a five-year recovery plan with its partners, city officials and its landlord

Catherine A. Peila addressed the bankruptcy in the statement saying:

“The decision to file for Chapter 11 reorganization protection provides us with the time to solidify agreements with new partners, increase funding and most importantly, continue to serve the New York City’s vibrant community of performing artists and avid cultural supporters.”

DNA’s plan includes a negotiated lease settlement, forgiveness of some of its debt, reduced annual operating expenses from $3.6 million to $2.3 million, and slashing deficits by $1.2 million.

LifeCare Family of Hospitals Emerges From Chapter 11 Hospital...

Wed, 05 Jun 2013 16:58:34 -0400

LifeCare Family of Hospitals Emerges From Chapter 11

Hospital Acquisition LLC (the Company), the parent company of LifeCare Holdings LLC and the LifeCare family of hospitals, announced today it has completed its purchase of substantially all of the assets of LCI Holdco, LLC, and emerged from the Chapter 11 bankruptcy process.

Comprised of 26 long term acute hospitals located across the United States, the LifeCare family of hospitals specializes in caring for patients in need of high level, acute care over an extended period of time. Many patients are transferred to the Company’s hospitals after a stay in an intensive care unit and have often experienced multiple system failures and slow response to traditional medical treatments.

The $320 million sale, which was approved by the U.S. Bankruptcy Court for the District of Delaware, results in a significant reduction in debt at lower interest rates. The Company’s new credit facility includes a $200 million term loan and access to a $30 million working capital line of credit.

LifeCare’s Plano-based management team, representing some of the most experienced healthcare executives in the post acute space, will continue to lead the Company.

LifeCare Holdings Chairman and Chief Executive Officer Phillip B. Douglas commented on the bankruptcy exit saying:

“We move forward from this process with a restructured balance sheet, a talented leadership team and the support of a strong and experienced board. With the support of our corporate team and the continued trust of referrers, vendors and suppliers in the communities we serve, we emerge from this process as a stronger hospital system.”

Pro’s Ranch Markets Files for Chapter 11 Bankruptcy Protection...

Mon, 03 Jun 2013 16:53:13 -0400

Pro’s Ranch Markets Files for Chapter 11 Bankruptcy Protection

Last November, Pro’s ranch markets was honored as the 2012 Arizona Retailer of the year by The Arizona Food Marketing Alliance (AFMA) state trade association for the Arizona Food Industry.

Now, the Phoenix-based grocery chain has filed for Chapter 11 bankruptcy protection in U.S.Bankruptcy Court in Arizona. The bankruptcy proceeding includes PRM Family Holding Company LLC; Prodigio Mercado, LLC; Pro’s ABQ Ranch Markets LLC; Pro’s ELP Ranch Markets LLC; Pro’s ELP Ranch Markets Beverage Company LLC; Pro & Son’s LLC; Pro’s Ranch Markets (CA) LLC; and Provenzano’s LLC.

The Hispanic-oriented grocery chain has not yet presented complete lists of assets and liabilities; those documents are due before mid-June. However the company’s bankruptcy attorney has confirmed that the grocer’s lead secured crrditor is Bank of America, which is owed more than 440 million; that approximately $7.2 million is owed to 83 fresh produce suppliers, and that the total number of creditors is in the thousands.

Pro’s Ranch Markets owns seven stores in Phoenix, one store in Las Cruces, N.M., one store in Albuquerque, N.M., and two stores in El Paso, Texas. The grocery chain employs 2,235 employees in four states.

In court documents, the company blamed the filing on increased competition, the declining Southwest economy, the “adverse, negative and chilling effect” of Arizona’s immigration law and an immigration audit, which its competitors supposedly were not subjected to.

Pro’s intends to remain in business.

Life Uniform Holding Files For Bankruptcy Life Uniform Holding...

Sun, 02 Jun 2013 10:00:55 -0400

Life Uniform Holding Files For Bankruptcy

Life Uniform Holding Corp., which supplies scrubs, shoes, and lab coats to people in pediatrics, dentistry, or veterinary fields, has filed for Chapter 11 bankruptcy protection in U.S. Bankruptcy Court in Wilmington, Delaware.

Joining in the bankruptcy are company affiliates Healthcare Uniform Co. and Uniform City National Inc. The 20-age initial filing document was signed by Bryan Graiff, identified as COO, CFO, VP, Secretary and Treasurer of Life Uniform Holding Corp.

In its filing, the St. Louis-based company listed both assets and debts as between $10 million and $50 million.

The bankruptcy filing also indicted that Scrubs & Beyond will be the stalking horse bidder - or lead bidder - at a court-supervised auction with an offer of about $22.6 million. Scrubs & Beyond, which operates 27 stores in 14 states, was founded by Karla Bakersmith, who spent 13 years as an employee of Life Uniform. In a statement, Bakersmith said the acquisition of Life Uniform would will expand Scrubs & Beyond’s retail footprint as well as its online retail presence.

The company owes nearly $15 million in unsecured notes to three creditors. Debt listed on the remainder of the company’s compilation of 30 largest unsecured creditors is characterized as trade debt. individual elements of that trade debt range from $17k to over $4 million.

Bankrupt Suntech to Sell Discounted Panels to Shunfeng Suntech...

Sat, 01 Jun 2013 11:36:13 -0400

Bankrupt Suntech to Sell Discounted Panels to Shunfeng

Suntech Power Holdings Co. Ltd., which owns Suntech Power, the world’s largest producer of solar panels, defaulted on $541 million worth of convertible bonds in early March. Eight banks put a petition together, and within a week, a Chinese court declared the company bankrupt.

Suntech — which in 2011 was the world’s biggest seller of silicon-based photovoltaic modules — was once valued at $13 billion on the New York Stock Exchange; it is worth less than 1 percent of that today.

Now, Suntech has agreed to a sale of one of its projects and discounted solar panels to Shunfeng Photovoltaic International Ltd. for $15.2 million, or 93 million yuan.

Although Shunfeng hasn’t developed projects to this point, it will now use 29.7 megawatts of Suntech panels to build the Kumul solar plant in China’s Xinjiang region near the China-Mongolia border.

According to a statement by the Changzhou, China-based company, the panels will be sold in installments at a 49-cent per-watt price. That price is 32 percent less than the current average price for solar panels.

C|net Founder Files for Personal Bankruptcy He was born into...

Fri, 31 May 2013 10:01:02 -0400

C|net Founder Files for Personal Bankruptcy

He was born into Southern royalty, the great-great grandson of John B. Minor, a UVA law professor who, legend has it, saved the Rotunda when he rode across enemy lines during the Civil War to tell Union Major General George Custer not to burn Jefferson’s architectural masterpiece.

He is a tech genius, founding news company CNet in 1992, building it to the giant it is today, then selling it for $1.8 billion. He also built up and Sold GrandCentral Communications Inc. to Google in 2007 for about 2007; it’s now been renamed Google Voice.

But something went wrong. Because just like any ordinary schmoe, Halsey McLean Minor is now bust and has filed for personal bankruptcy.

The once gajillionaire now says he still has assets of $50 million, but he’s got debts as high as $100 million.The petition says Minor has no funds with which to pay unsecured creditors.

Minor, 47, filed for Chapter 7 bankruptcy liquidation in U.S. Bankruptcy Court in Los Angeles, citing the related bankruptcies of Minor Family Hotels, LLC and Carter’s Grove LLC, because he is the managing member of both. Minor has paid $30,000 to bankruptcy attorney David B. Shemano.

Ohio Printing Company Files for Chapter 11 Bankruptcy...

Thu, 30 May 2013 18:22:54 -0400

Ohio Printing Company Files for Chapter 11 Bankruptcy Protection

TPO Hess Holdings, Inc. is a niche, short-run printer consisting of two business units, The D.B. Hess Company and The Press of Ohio, which are focused on print jobs in the education and commercial end markets. The bulk of the company’s educational revenues are derived from printing soft cover workbooks that are consumed annually by K-12 students, and the majority of commercial revenues are from printing business-to-business catalogs.

Unfortunately, the Kent, Ohio-based company has filed for Chapter 11 bankruptcy protection from its creditors in U.S. Bankruptcy Court, District of Delaware.Subject to court approval, the company plans to sell itself to Bank Printing of Ohio for about $19.2 million.

Six affiliates also filed for bankruptcy protection. The Debtors are seeking to have their cases jointly administered for procedural purposes, and each of the cases has been assigned to U.S. Bankruptcy Judge Kevin Carey. The affiliates are TPO Hess Intermediate Holdings I, Inc.; TPO Hess Intermediate Holdings II, Inc.; The Press of Ohio, Inc.; The D.B. Hess Company; DBH Associates – Ohio Limited Partnership; and DBH Associates – Illinois L.P.

In the initial filings, the Debtors listed assets of approximately $50,000 and debt as high as $100 million.

Bankruptcy Court Confirms Chapter 11 Plan of Pittsburgh Corning...

Mon, 27 May 2013 10:01:00 -0400

Bankruptcy Court Confirms Chapter 11 Plan of Pittsburgh Corning Corporation

Pittsburgh Corning Corporation has announced that its Modified Third Amended Plan of Reorganization was confirmed by the U.S. Bankruptcy Court for the Western District of Pennsylvania. The company has operated under Chapter 11 protection since April 16, 2000.

The company is now a global manufacturer of sustainable, high performance glass products for the building, energy and industrial markets. But between 1964 and 1972, Pittsburgh Corning manufactured, marketed and sold Unibestos, an asbestos pipe insulation product it acquired from Union Asbestos and Rubber Company. The company manufactured Unibestos at its plants in Tyler, Texas and Port Allegany, Pennsylvania.

While the Pittsburgh Corning revenues for this asbestos-related product averaged less than $3 million annually, the company was named as a defendant in asbestos-related lawsuits, defending and resolving more than 200,000 claims. Pittsburgh Corning sought Chapter 11 protection in 2000, when it became apparent that defending and settling an additional 235,000 claims would exhaust company resources before they could be resolved.

The newly confirmed Plan of Reorganization establishes a trust valued in excess of $3.5 billion to assume all asbestos-related liabilities and resolve all asbestos personal injury claims. The trust will be funded by Pittsburgh Corning, its shareholders PPG Industries Inc. and Corning Incorporated, and participating insurance carriers.

“The trust is intended to help support the people and families who were harmed by asbestos,” said Phillip M. Martineau, Chairman and CEO of Pittsburgh Corning.

The confirmation of the Plan paves the way for the next step in the process: review and affirmation of the Plan by the U.S. District Court for the Western District of Pennsylvania.

Better Place Electric Car Maker Files for Bankruptcy in...

Sun, 26 May 2013 17:42:29 -0400

Better Place Electric Car Maker Files for Bankruptcy in Israel

Better Place, an electric car maker based in Tel Aviv, has announced that it has filed a motion with the Lod District Court today to ask for the dissolution of the company and the appointment of a temporary liquidator.

In its motion the company stated that in light of its failure to raise additional funds and in the absence of sufficient resources for the continued operation of the business, the company is asking for the court’s assistance in protecting the rights of its employees, customers and creditors.

The company said that despite significant efforts in recent months, revenues are still insufficient to cover operating costs. In the light of a continued negative cash flow position, the Board has decided that it has no option but to seek to make this application to the Courts for an orderly liquidation of the company.

The company’s Board of Directors said:

“This is a very sad day for all of us. We stand by the original vision as formulated by Shai Agassi of creating a green alternative that would lessen our dependence on highly polluting transportation technologies. While he was able with partners and investors to overcome multiple challenges to demonstrate that it was possible to deliver a technological solution that would fulfill that vision. ‘

Unfortunately, the path to realizing that vision was difficult, complex and littered with obstacles, not all of which we were able to overcome. The technical challenges we overcame successfully, but the other obstacles we were not able to overcome, despite the massive effort and resources that were deployed to that end.”

Chordus Inc. Files for Chapter 11 Bankruptcy Protection

Sat, 25 May 2013 18:10:00 -0400

Chordus Inc., a wholesale office furniture and office equipment company based in Pelham, filed for Chapter 11 bankruptcy protection on May 15 in United States Bankruptcy Court for the Northern district of Alabama. The bankruptcy petition was signed by the company president Janet Bullard.

The company says it has assets of between $500,000 and $1 million. It cited a total debt ranging from $10 million to $50 million and debt from between $10 million and $50 million. The 20 largest creditors combined are owed more than $8 million. The two largest creditors are Buddy Blankenship owed $1.69 million and Dave Charles owed $1.62 million.

Chordus, a parent company of Office Furniture USA, says it will close two of its five distribution centers. One in Ontario, Calif., and one in Wilkes-Barre, Pa. The remaining distribution centers are located in Pelham; Tyler, Texas, and Fort Wayne, Ind.

In a statement Bullard said, “Our remaining distribution centers will continue to supply our 138 dealers throughout the country, but with less equipment. Business will continue as usual and we are confident that we can still provide quality service.”

AMF Bowling to Merge with New York-Based Company

Thu, 23 May 2013 10:01:09 -0400

AMF Bowling Worldwide Inc., which filed for Chapter 11 protection last November in Virginia Eastern Bankruptcy Court, has proposed to exit bankruptcy by merging with Bowlmor, a New York-based operator of upscale bowling centers.

The plan has been submitted to U.S. Bankruptcy Court Judge Kevin R. Huennekens.

Bowlmor currently operates six bowling and entertainment venues in New York, Florida, Maryland and California. The combined company would have 276 bowling centers, 7,500 employees and annual revenue of about $450 million.

The plan calls for the combined company to be named Bowlmor AMF, and for Bowlmor’s chief executive officer, Tom Shannon, to serve as the chairman, president and CEO of the combined company.

First-lien creditors of AMF would have their debts paid in full and AMF’s second-lien lenders would have a 77.53 percent stake in the new company. Those second-lien lenders, including Cerberus Capital Management LP and Credit Suisse, would convert their debt into equity in Bowlmor AMF. Additionally, Credit Suisse has agreed to provide a term loan facility of $230 million and a revolving loan facility of $30 million.

The largest holders of AMF’s second-lien debt also have agreed to provide $50 million of backstop financing, which will be used to provide working capital for Bowlmor AMF and to pay cash distributions in varying amounts to AMF’s other creditors.

AMF plans to seek court approval at a hearing on Thursday. Pending required approvals, AMF could emerge from bankruptcy and combine with Bowlmor by the end of June.

AMF Bowling Modifies Chapter 11 Plan AMF Bowling Worldwide Inc....

Wed, 22 May 2013 17:58:00 -0400

AMF Bowling Modifies Chapter 11 Plan

AMF Bowling Worldwide Inc. has submitted a proposal to the Virginia Eastern Bankruptcy Court in Richmond that modifies its proposed Chapter 11 plan.

The company now wants to include in its plan an offer of about 1 percent to holders of $30 million to $35 million in unsecured claims.

According to the petition, AMF’s restructuring support agreement was signed before bankruptcy specified $300,000 for unsecured claims. The plan was left blank to accommodate continuing discussions with the creditors’ committee. But when the company and the committee failed to come to an agreement, AMF chose to formally insert the $300,000 offer into the plan.

If accepted by creditors and approved by the court, senior secured lenders will take ownership in exchange for about $215 million in first-lien debt. This plan was covered under an agreement worked out before the Chapter 11 petition was filed last November.

AMF, based in Hanover County, originally asked Bankruptcy Court Judge Kein R. Huennekens to approve disclosure materials at an April 23 hearing. But in light of creditor committee arguments against an accelerated hearing, the approval has been scheduled for April 30.