Top Bankruptcy and Corporate Restructuring News for December 4, 2008

• From Bloomberg: GM, Chrysler May Accept Bankruptcy to Receive Bailout
• From Bloomberg: U.S. Bankruptcy Filings Near 1 Million Mark for This Year
• From Bloomberg: General Motors May Fail This Month Without Aid, UAW Chief Says
• From Bloomberg: A21, Online Digital-Content Company, Seeks Bankruptcy
• From Bloomberg: U.S. Auto Chiefs Appeal to Congress for Emergency Aid
• From Bloomberg: Credit Suisse to Question Yellowstone Club Owner
• From Bloomberg: Erich Merkle Says U.S. Economy Can’t Withstand Auto Failure: Video
• From the Wall Street Journal: Afternoon Reading: To Bankruptcy, or Not to Bankruptcy
• From the Wall Street Journal: Car Dealer Dominos: Bankruptcy Could Create ‘Protracted Mess’
• From the Wall Street Journal: Deals of the Day: Does GM Need a Bankruptcy to Get a Bailout?

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Hope Files for Airlines (WSJ.com Video)

Don Hodges, co-portfolio manager of the Dallas-based Hodges Fund, speaks with Christopher Hinton about the future of major U.S. airlines.

more about “Hope Files for Airlines (WSJ.com Video)“, posted with vodpod

 

Storm Cat Energy (USA) Seeks Approval of Bidding Procedures for Sale of Substantially All Assets

Storm Cat Energy (USA) Corporation filed a motion yesterday seeking court approval of bidding procedures to govern the sale of substantially all of the assets of the debtors (or, alternatively, a merger or recapitalization).  The bidding procedures are required by the company’s post-petition financing agreement with its debtor-in-possession lenders.  The company reports in the motion that it began the process of trying to sell all of its assets approximately six months ago. 

The company’s proposed bidding procedures would require bids to be received at a date to be set, but no later than January 30, 2009 at 5:00 p.m. (Mountain).  The company further requests that any bidders be required to provide a deposit equal to 5% of the proposed purchase price.  Finally, the proposed bidding procedures require that an auction (if necessary) be held no later than February 16, 2009. 

Download a copy of the motion and the full proposed bidding procedures using netDockets.  Sign up for a free trial now and get $100 of free research.

Home Interiors & Gifts Gets Authority to Hold Auctions for Assets

Home Interiors & Gifts, Inc. received authority from the bankruptcy court yesterday to hold public auctions to facilitate the sale of three separate groups of assets.  The three orders are summarized briefly below.

• The first order authorized and scheduled a public auction for the sale of the capital stock of Domistyle, Inc. and certain other assets (any other assets used in Domistyle’s business that are owned by other related entities).  Bids are due January 8, 2009 at 5:00 p.m. (Central) and the auction is scheduled for January 15, 2009.  No stalking horse bidder has been designated.
• The second order authorized and scheduled a public auction for the sale of the capital stock of Home Interiors de Mexico, S de RL de CV and Home Interiors de Mexico, S.A. de C.V., and certain other assets (any other assets used in the debtors’ Mexico operations that are owned by other related entities).  Bids are due January 8, 2009 at 5:00 p.m. (Central) and the auction is scheduled for January 15, 2009.  No stalking horse bidder has been designated.
• The third order authorized and scheduled a public auction for the sale of certain of the assets of Laredo Candle Company, LLC.  Bids are due January 8, 2009 at 5:00 p.m. (Central) and the auction is scheduled for January 15, 2009.  No stalking horse bidder has been designated.

Copies of the motions and orders, as well as the complete approved bidding procedures can be viewed using netDockets.  Sign up now for a no commitment free trial and get your first $100 of research completely free.

Archway Cookies Gets Authority to Sell Substantially All Assets

Archway Cookies, LLC received court authority yesterday to sell substantially all of its assets to Archer Acquisitions, LLC for $25 million in cash plus the assumption by Archer of certain Archway liabilities and the payment by Archer of cure obligations related to contracts and leases which are assumed and assigned. 

Pursuant to bidding procedures previously approved by the bankruptcy court, there were four qualified bidders for Archway’s assets who participated at an auction held on December 2nd.  Brynwood Partners VI L.P. has been determined to be the backup bidder should the sale transaction between Archway and Archer not close.  The sale of assets is being made free and clear of all claims and interests pursuant to section 363 of the bankruptcy code.

View the asset purchase agreement, including schedules of contracts and leases to be assigned, and all other pleadings related to the asset sale using netDockets.  Sign up now for a no-commitment trial account and get your first $100 of research free.

Archway Cookies Gets Authority to Sell Certain Assets to Kellogg N.A. Co.

Archway Cookies, LLC received bankruptcy court authority yesterday to sell certain assets of its Mother’s Cake and Cookie Co. affiliate to Kellogg North America Company.  The court previously entered a bidding procedures order with respect to the assets on November 18th.  Pursuant to the procedures approved by the court, there were four “Qualified Bidders” at an auction held on December 2nd.  Kraft Foods Global, Inc. and Kraft Foods Global Brands LLC were determined to be the back-up bidders should Kellogg and Mother’s not close the approved sale transaction.

The purchase price for the assets is $12.1 million in cash, plus the assumption of certain liabilities and the payment of cure obligations under assumed and assigned contracts by Kellogg.  The sale of assets is made free and clear of claims and interests pursuant to section 363 of the bankruptcy code.

View copies of all of the documents related to the sale here.  Sign up for netDockets now with no commitment and get $100 of free research.

NetVersant Solutions Seeks Authority to Use Lenders’ Cash Collateral

NetVersant Solutions, Inc. filed a motion yesterday seeking bankruptcy court authority to use approximately $630,000 of its pre-petition lenders’ cash collateral.  NetVersant’s motion for debtor-in-possession financing was approved by the bankruptcy court on an interim basis, but seeks only very limited authority to use cash collateral. 

NetVersant seeks to use the cash collateral to pay certain outstanding pre-petition sales tax obligations (owing to 48 states).  A list of the tax obligations that NetVersant seeks to pay is attached to the motion.  NetVersant attempted to pay the taxes before the bankruptcy filing (with the consent of its lenders), but the payments were not made due to an error in a wire transfer authorization. 

View the motion and its exhibits here.

Creditors’ Committee Appointed in LandAmerica Financial Group Bankruptcy Cases

The United States Trustee has appointed the members of the Official Committee of Unsecured Creditors in the LandAmerica Financial Group, Inc. bankruptcy cases.  The members of the Creditors’ Committee are:

• The Bank of New York Mellon, Indenture Trustee
• The Prudential Insurance Company of America
• Vangent, Inc.
• Citadel Equity Fund, Ltd.

 View the notice of appointment and all other documents filed in the LandAmerica Financial Group cases using netDockets.  Sign up now and receive $100 of free research with no commitment.