Claridge to Consider Park Place Entertainment Bid
Last Friday the Atlantic City, N.J.-based Claridge Hotel and Casino
Corp., which operates the Claridge Casino Hotel, informed the U.S.
Bankruptcy Court that its Board of Directors intends to accept Park
Place Entertainment Corp.'s bid to purchase the hotel/casino, according
to a newswire report. On Aug. 16, 1999, the corporation and its
subsidiary filed chapter 11 in order to facilitate a financial
restructuring.
The Board of Directors determined that the sale of the Claridge
Casino Hotel to Park Place would return substantial value to its
creditors. The board's financial advisors have estimated that note
holders could receive an approximately 80-percent recovery.GB Holdings
Inc., whose bid for the Claridge Casino Hotel expired by its own terms
on Oct. 13, indicated that it might file a competing reorganization
plan.
Levitz Announces Filing of Reorganization Plan and Timetable for
Bankruptcy Emergence
Levitz Furniture Corp. announced yesterday that it filed an amended
reorganization plan and disclosure statement with the Bankruptcy Court
in Florida, according to a newswire report. The amended
reorganization plan contemplates the formation of a holding company,
Levitz Home Furnishings Inc., which would own and separately operate
Levitz and, subject to the satisfaction of certain conditions, the
Seaman Furniture Company. The Bankruptcy Court set Oct. 31 as the
hearing date on the disclosure statement and Dec. 8 as the hearing date
on the confirmation of the plan. Assuming court approvals and the
satisfaction of conditions to the plan, including financing, Levitz
would emerge from bankruptcy by the end of December. Upon
confirmation of the reorganization plan, Levitz and Seaman stores will
continue to operate under their existing banners.
Weiner’s Files for Bankruptcy
Weiner's Stores Inc., a 75-year-old chain of retail clothing stores in
five states, announced yesterday that it filed for bankruptcy and will
close 44 of its 141 stores, according to the Associated Press. The
Houston-based company said the decision was based on cash flow problems
and operating losses during the first six months of the fiscal
year. Weiner's previously filed for bankruptcy protection in April
1995. Weiner's said it would streamline its operations, closing 44
under-performing stores: 16 of them in Louisiana, four in Little Rock,
Ark., and 24 in Texas. The 97 remaining stores will be revamped to
include the sale of more toys, electronics, small appliances, furniture
and house wares.
Drypers Corp. Receives DIP Financing Approval
Drypers Corp. yesterday announced that it received approval from the
Bankruptcy Court in Houston for its debtor-in-possession (DIP) financing
and other first day orders, according to a newswire report. The DIP
agreement calls for Fleet Capital Corp. to provide a new $25 million
credit facility to fund the company's ongoing operating needs during its
voluntary restructuring under chapter 11.
“This funding will help provide our vendors with additional
financial assurances that we will continue to operate our business while
we restructure, and that they will be paid in the ordinary course for
goods and services we purchase from them going forward,” said
Walter V. Klemp, chairman and chief executive officer of Drypers.
