Entries from February 2009
Categories: Bankruptcy and Restructuring News · Major Bankruptcy Case Events
Tagged: chapter 11, bankruptcy, bankrupt, bar date, order, claim, creditor, deadline, obligation, debt, filing, company, bar, date, file, journal, register
On February 25, 2009, the bankruptcy court entered an order approving the sale of substantially all of the assets of Fortunoff Holdings, LLC and Fortunoff Card Company, LLC. Fortunoff filed for bankruptcy protection on February 5, 2009 and filed a motion seeking authority to sell substantially all assets on February 6th. The bankruptcy court entered an order approving bidding procedures for the sale on February 9, 2009.
In the February 25th order, the bankruptcy court approved the sale of Fortunoff’s assets pursuant to an agency agreement with a joint venture comprised of Tiger Capital Group, LLC, SB Capital Group, LLC, Kimco Realty Services, Great American Group WF, LLC, Hudson Capital Partners, LLC, The Gordon Company, Inc. and Bobby Wilkerson, Inc. Fortunoff had determined that the agency agreement constituted the “highest and best bid” for its assets following an auction held on February 23. The Official Committee of Unsecured Creditors filed objections on February 23 and 24 to Fortunoff’s asset sale process.
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Categories: Bankruptcy and Restructuring News · Major Bankruptcy Case Events
Tagged: asset, bankrupt, bankruptcy, bobby wilkerson, capital, card, chapter 11, committee, company, creditors, fortunoff, gordon company, great american, holdings, hudson capital, kimco, official, realty, sale, sb capital, sell, tiger, unsecured
Categories: Bankruptcy and Restructuring News · Major Bankruptcy Case Events
Tagged: appoint, bankrupt, bankruptcy, chapter 11, committee, corporation, creditor, fulton, homes, official, states, trustee, united, unsecured
On February 24, 2009, the bankruptcy court entered an order converting the chapter 11 bankruptcy cases of HomeBanc Mortgage Corp. and its affiliates to cases under chapter 7 of the Bankruptcy Code.
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Categories: Bankruptcy and Restructuring News · Major Bankruptcy Case Events
Tagged: bankrupt, bankruptcy, chapter 11, chapter 7, conversion, convert, corporation, court, homebanc, liquidate, liquidation, mortgage, order
Categories: Bankruptcy and Restructuring News · Major Bankruptcy Case Events
Tagged: ampacet, bank, committee, corporation, creditors, new york, official, petrochemical, pliant, sonoco, total, trustee, unsecured
On February 24, 2009, an ad hoc Committee of Secured Noteholders filed a motion with the bankruptcy court seeking the conversion of Eclipse Aviation Corporation’s chapter 11 bankruptcy case (and the cases of its affiliates) to cases under chapter 7 of the Bankruptcy Code. The members of the ad hoc Committee are Kings Road Investments, Ltd., HBK Services LLC and Citadel Investment Group, L.L.C.
In support of the motion, the Committee argues that Eclipse Aviation has no remaining cash and has furloughed all of its remaining employees. Eclipse Aviation received approval for the sale of substantially all of its assets to EclipseJet Aviation International, Inc. on January 23, 2009 and the asset purchase agreement that was approved provided that the sale was required to close within five business days of the satisfaction of all conditions to closing.
The motion argues that Eclipse Aviation had satisfied all of the conditions to closing on January 23, 2009 but EclipseJet has failed to secure the financing necessary to close the transaction and is thus in breach of the APA. Allegedly, EclipseJet’s financing was to be provided by VEB, the Russian State Bank, which was apparently insolvent but expected to be recapitalized by the Russian government. The recapitalization appears to have occurred, but EclipseJet still lacks financing to close the transaction, according to the ad hoc Committee.
In the interim, Eclipse Aviation has exhausted all of its cash and suspended all operations. The motion argues that no business remains to be reorganized and that the cases should thus be converted to chapter 7 cases in order to limit administrative expenses.
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Categories: Bankruptcy and Restructuring News · Major Bankruptcy Case Events
Tagged: ad hoc, aviation, bankrupt, bankruptcy, chapter 11, chapter 7, citadel, committee, conversion, convert, eclipse, eclipsejet, hbk, investment, investments, kings, noteholder, road, secured
Categories: Bankruptcy and Restructuring News · Major Bankruptcy Case Events
Tagged: bankrupt, bankruptcy, chapter 11, employee, games, incentive, key, kombat, midway, mortal, motion, plan
On February 24, 2009, Judge Robert Drain authorized Delphi Corporation and its affiliates to terminate employer-paid post-retirement health care benefits and employer-paid post-retirement life insurance benefits for certain salaried employees and retirees. Delphi filed a motion seeking the authority on February 4th and over 1,500 of the salaried retirees that will be impacted filed objections with the bankruptcy court.
Delphi argued that the termination of the benefits in question would save Delphi over $70 million per year and reduce its balance sheet liabilities by over $1.1 billion. Moreover, Delphi claimed that the terminations were necessary because its lenders were demanding the reductions. In ruling, Judge Drain stated that it was “crystal clear” that the decision to terminate the benefits was within Delphi’s business judgment, but also lauded Delphi for not terminating the plans earlier, statinf that Delphi “properly did not take this step for almost three years.”
Details of the plans which Delphi sought to terminate are available here. Download copies of every document filed in Delphi’s bankruptcy cases using netDockets. Sign up now for a free trial account.
Categories: Bankruptcy and Restructuring News · Major Bankruptcy Case Events
Tagged: bankrupt, bankruptcy, benefit, chapter 11, corporation, court, delphi, drain, employee, judge, order, plan, retired, retiree, robert, salaried, salary, terminate, termination
February 24, 2009 · 1 Comment
Categories: Bankruptcy and Restructuring News · Major Bankruptcy Case Events
Tagged: assert, bankrupt, bankruptcy, bar, chapter 11, claim, court, creditor, date, deadline, debt, file, filing, netversant, obligation, order, solutions
Categories: Bankruptcy and Restructuring News · Major Bankruptcy Case Events
Tagged: agency, alternative, association, bank, bronwen, capital, committee, corporate, creditor, dish network, dukate, fargo, global, holdings, investment, loan, management, mary, mfc, monarch, muzak, national, official, trust, u.s. bank, unsecured, wells
