Synthonics Technologies Inc. Files Voluntary Chapter 11
Petition
Synthonics Technologies Inc. Friday announced that it has filed a
voluntary petition for reorganization in the U.S. Bankruptcy Court for
the Central District of California, according to a newswire
report. The filing will allow the Westlake Village,
California-based company to continue business operations while it
formulates and obtains the necessary approvals of its financial
restructuring plan. The filing was necessitated by a number of factors
and disputes that culminated in excessive litigation
proceedings.
Bankruptcy Lawyers Out Again Due to Stock Scare
After witnessing nearly 10,000 web-related layoffs in late summer and
yet another tech-stock scare in mid-September, don't be surprised to
find bankruptcy lawyers energetically busting out their dust brooms,
according to a newswire report. 'This (tech company problems) has
happened before and it'll happen again,' says Bob Eisenbach, an attorney
at Cooley, Godward in San Francisco. 'Quite often there's a rush into a
new industry and ... it's probably not possible, given the size of the
market, for everybody to succeed.'
Internet bankruptcy differs in two major ways, according to
Eisenbach. 'Key employees may just leave during a bankruptcy
filing,” he said. “That's a new and different
problem.' The second difference involves the dicey issue of
intellectual property litigation. 'Many companies are reliant on
technology licenses,' Eisenbach explains. 'Legal precedents have been
established that make it very difficult for companies to retain those
licenses. This makes it more difficult for these companies to
reorganize.'
Bankrupt Firms' Investors Likely to Get Lower Payout
Investors in the doomed IMI Pacific Group and Walakahai Pacific Corp.
are now likely to get only about 15 cents for every dollar of the $8
million owed, according to a newswire report. David Crichton, of
Christchurch firm Crichton Horne, said Friday that an earlier report to
investors predicted that, 'the return would not be likely to exceed 20
cents on the dollar.' But a report last week put the amount at
'approximately 15 cents,' though he was hopeful of lifting that
figure. 'I was saying no more than 20 cents or up to 20 cents, now
I'm trying to be a bit more precise,' he said.
The directors of the companies, John Edward Baylis, formerly of
Waiwhetu, and Willard Karaitiana Amaru of Wainuiomata, are expected to
appear at a pre-depositions hearing next month to face charges laid by
the Serious Fraud Office. The pair has already been declared
bankrupt. Crichton hoped investors would be paid within six
months.
McLane Wins Bid for AmeriServe Assets
AmeriServe Food Distribution Inc. said on Friday that Wal-Mart
Stores Inc.'s McLane Co. Inc. subsidiary was the winning bidder in the
auction to buy most of its U.S. distribution assets, according to a
Reuters report. No new bidders appeared at the auction. An
approval hearing for the sale is set for Nov. 28 in U.S. Bankruptcy
Court in Wilmington, Delaware. Temple, Tex.-based McLane
distributes to convenience stores across the United States.
Addison, Tex.-based AmeriServe, which filed chapter 11 in January,
distributes to chain restaurants such as Long John Silvers and Tricon
Global Restaurants Inc.'s KFC, Pizza Hut and Taco Bell.
General Growth Properties Announces Joint Proposal to Purchase
Liberty House
General Growth Properties Inc. (GGP) Friday announced that an
affiliate of GGP, with JMB Realty Corp. and the other owners of Liberty
House Inc. reached agreement to propose a joint plan of reorganization
for Liberty House, according to a newswire release. Liberty House
is Hawaii's premier local department store chain. The company operates
12 department stores in Hawaii including its 330,000 square foot
flagship store at Ala Moana Center. In addition, the company operates a
department store on the island of Guam. General Growth Properties,
Inc. is one of the oldest shopping center owners, developers and
managers in the United States.
Together, GGP and the Owners filed an amended reorganization plan for
Liberty House and an accompanying draft of a disclosure statement in the
U.S. Bankruptcy Court for the District of Hawaii. U.S. Bankruptcy
Judge Lloyd King must approve the adequacy of the draft
disclosure statement before GGP and the owners can begin to solicit
acceptances of their proposed joint plan. The joint plan of
reorganization and disclosure statement would replace the plan and
disclosure statement sponsored by the owners earlier this year. Earlier
this month, the Bankruptcy Court had approved the adequacy of the
disclosure statement associated with that plan, but it has not been
circulated to creditors.
AMC Sees Boost in Stock
Exhibitor AMC Entertainment notched a welcome boost to its battered
stock price one day after posting better-than-expected financial
results, according to a newswire report. Shares in the Kansas
City, Mo.-based company climbed 23 percent on Friday. The stock has been
trading in the low single-digits for months. Carmike Cinemas,
United Theatres, Edwards Theatres and others have even slipped into
chapter 11 bankruptcy proceedings as circuits struggle under severe debt
loads piled on by recent megaplex building binges. Others, such as
General Cinemas parent GC Cos. and regional circuit Dickinson Theaters
of Mission, Kan., have filed for bankruptcy reorganization due less from
debt woes than from competitive pressures created by the aggressive
megaplex expansions of rival chains.
AMC reported Thursday that its second-quarter red ink had widened
less than expected to $10.4 million in 13 weeks ending Sept. 28. That,
combined with its continued ability to stay out of bankruptcy court so
far, passed for good news to investors under the current industry
circumstances.
Dallas Air Station Files for Bankruptcy
Millennium Holdings Corp., an aircraft refurbishing company, filed for
chapter 11 Thursday, delaying a trial that would have determined whether
it would be evicted from the former Dallas Naval Air Station for failure
to pay rent, according to the Fort Worth Star-Telegram. The
company filed for bankruptcy the day its trial was to begin in a Dallas
County court to contest an eviction notice from the city of Dallas,
which owns most of the land at the base. The city contends the
company has not paid rent since moving to the site about 18 months ago
and owes $2 million. The bankruptcy filing halts all
litigation.
Millennium officials said that under the lease agreement, the company
does not have to pay rent until Dallas relinquishes all of the property.
Millennium cannot use about 35 of its 500 acres at the site because of
environmental reasons, including contaminated ground water, company
officials said. The city is negotiating environmental cleanup efforts
with the Navy.
