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Republican Leaders Propose Plan to Clear
E-Sigs, Bankruptcy and Visa Bills Before Memorial Day
Republican leaders have proposed clearing three major bills as one
package before the Memorial Day holiday: The electronic signatures, or
e-sig, bill; the bankruptcy bill; and the visa bill, which would raise
the cap for the number of visas granted to work in the United States to
195,000, up from 115,000, the CQ Daily Monitor reported. 'The
legislative planets are in alignment,' said a Senate GOP leadership
aide. 'One big, mega-bill.' The technology industry had previously
opposed the combining of the H-1B visa bill and the bankruptcy overhaul
measure (H.R. 833) into the electronic signatures bill (S. 761), but has
since become neutral. Senate Majority Leader Trent Lott (Miss.) told
lobbyists that time is running out and that important legislation will
suffer if compromises are not reached quickly. Senate Minority Leader
Thomas Daschle (S.D.) has supported tacking on the bankruptcy bill to
the e-sig measure, but may oppose the visa legislation since it has not
been considered by the Senate. By combining the three bills, Lott hopes
to avoid Democratic amendments. However, Democrats could still object to
the proposal on any number of grounds.
CWT Specialty Stores Soliciting Bids for Certain Property
CWT Specialty Stores Inc., a New York ladies' apparel chain, is
soliciting bids for certain property free and clear of all liens,
according to a newswire report. Hon. Jeffry Gallet, U.S.
Bankruptcy Judge for the Southern District of New York, is overseeing
the sale, which includes three 1996 Ford Tauruses, a pre-paid lease for
2000 Jeep Grand Cherokee and office furniture located in its New York
office. CWT will be taking bids through Friday, after which time they
will proceed to sell the personal property subject to court approval.
Those interested in seeing the items for sale should contact the
attorneys for the unsecured creditors' committee, Weil Gotshal & Manges
LLP and Kronish, Lieb, Weiner & Hellman LLP, Attn: Lawrence
Gottlieb.
Crescent Real Estate Announces Charter Behavioral Health Systems
Auction
Crescent Real Estate Equities Co., Ft. Worth, Texas, announced Friday
that last Wednesday, in connection with the bankruptcy proceeding of
Charter Behavioral Health Systems LLC, an auction was held to consider
bids for the sale of the 37 core facilities leased to CBHS by the
company, according to a newswire report. The company determined that
bids for four of the facilities would meet the its previously
established price requirements if the company is able to reach agreement
with CBHS and its creditors on the allocation of the purchase prices to
the company's facilities (rather than to operating assets not owned by
Crescent) and on other previously negotiated conditions to sales of the
facilities. Crescent is pursuing negotiations with the relevant parties
to reach an agreement for the sale of these facilities and, to the
extent possible, for the sale of additional facilities. If Crescent is
not successful in disposing of the facilities within the CBHS bankruptcy
proceeding, the company intends to market them outside the bankruptcy
proceeding. 'We were not surprised that many bidders would submit
unacceptably low bids at this stage in the process,' said David M. Dean,
Crescent's senior vice president - law and administration. 'It is
natural for bidders to believe that they will be able to buy real estate
for less than fair value in bankruptcy proceedings. We have had much
success, however, in marketing the 51 non-core facilities that we have
previously recovered from CBHS, and we can be patient. To date, fifteen
of those facilities have been sold at or above gross appraised value,
generating approximately $45 million in net proceeds. Twelve additional
facilities currently are under contract or are subject to a letter of
intent. We do not intend to approve the sale of any facilities at 'fire
sale' prices.'
ContiFinancial Corp. To Sell Rights to Fairbanks Capital
Corp.
New York-based ContiFinancial Corp., a financial services company,
announced today that it has entered into a definitive agreement to sell
its ContiMortgage servicing platform and rights to Salt Lake City-based
Fairbanks Capital Corp., one of the highest rated specialty servicers in
the country specializing in residential real estate loss mitigation,
according to a newswire report.
ContiFinancial expects to complete the sale through a chapter 11
bankruptcy proceeding to commence in the near future, and will seek to
obtain approval for the sale under §363. Alan Fishman, CEO of
ContiFinancial said, 'We believe a transaction with Fairbanks is the
best resolution for our creditors since the platform will be in the
hands of a very capable servicer who will help ensure that the creditors
of CFN receive the best value from the residual portfolio.'
Clinton Accuser Willey on Brink of Bankruptcy
The Associated Press reported that Kathleen Willey, who accused
President Clinton of an unwanted sexual advance at the White House in
1993, is hundreds of thousands of dollars in debt and likely will be
declared insolvent. Willey voluntarily filed for bankruptcy protection
last month, listing debts of more than $700,000 and assets of
$19,011‹primarily household furnishings, a car and a wedding ring. 'It's
my impression at this time that we'll be in a no-asset bankruptcy case,'
said U.S. Bankruptcy Trustee J. Stephen Bus on Friday at a creditors'
meeting. Clinton has denied Willey's allegation, but a federal judge
ruled in March that the president had violated privacy laws by releasing
Willey's letters to him to undermine her credibility. Her financial
problems stemmed from the nearly $275,000 her late husband, Ed Willey,
had embezzled from a client, according to court papers. Ed Willey killed
himself in 1993.
Pixelon Orders Widespread Layoffs After Founder's Arrest
Pixelon, a financially troubled streaming media start-up based in San
Juan Capistrano, Calif., fired most of its remaining employees this week
in a desperate attempt to reorganize itself by filing for bankruptcy,
according to CNET News.com. The company fell on tough times after its
founder spent more than $12 million on an over-the-top Las Vegas launch
party last fall shortly before admitting he was a fugitive of the law.
Michael Fenne, as the founder was known, surrendered to Virginia
authorities last month on numerous charges that he bilked roughly $1
million from elderly investors in the late 1980s. Fenne turned out to be
a convicted embezzler named David Stanley and is in jail awaiting trial
on a probation violation in Wise County, Va. According to Russell
Reeder, the company's vice president of product development, the
publicity of the arrest combined with the wild spending on the glitzy
party undoubtedly propelled Pixelon's downfall. 'There were so many
things, but the very bad news about the founder caused some investors
who were prepared to back up the company to pull out,' Reeder said.
Pixelon's creditors have since sought the involuntary bankruptcy of the
company. The company's remaining 55 employees were laid off on Thursday.
After Stanley's arrest, a PricewaterhouseCoopers LLP audit came up
clean. Reeder and five other managers said they will continue to work
without pay on a restructuring plan that includes its chapter 11 filing.
Sunshine Mining Says It May File for Chapter 11
Sunshine Mining & Refining Co., Boise, Idaho, reported that a large
first-quarter net loss may force the company to seek bankruptcy
protection, according to The Wall Street Journal. The company reported
a loss of $4 million including a $1.4 million charge for additional
interest owed; its losses during the same quarter last year were $2.9
million. If it isn't able to restructure terms on $41 million in notes
by June, the company said it may file chapter 11; it has outstanding
debts of $42 million. The company's silver mining subsidiary, Sunshine
Precious Metals Inc., sought bankruptcy protection in 1992 and emerged
from bankruptcy after a few months.
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