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size='2'>Personal Incomes Rise; Spending Rises Faster While
Consumer Confidence Continues Downward Trend
The Commerce Department reported Friday that personal income grew by 0.4
percent last month, while personal spending rose by 0.6 percent,
according to the White House Bulletin. The spending increase
helped drive the savings rate to a record monthly low. An ABC
News/Money magazine poll conducted the week ending Sept. 14
showed that the Consumer Comfort Index stands at +29 on its scale of
+100 to –100, which is down five points in the last three weeks.
Seventy seven percent said the state of the nation’s economy these
days was excellent/good while 23 percent said it was not so good/poor.
Sixty five percent said the state of their own personal finances these
days was excellent /good while 35 percent said not so good/poor. Fifty
two percent said considering the cost of things today and your own
personal finances, now is an excellent/good time to buy the things you
want/need while 48 percent said it was a not so good/poor
time.
Ventas
Objects to Vencor’s Reorganization Plan
Hospital and nursing home operator Vencor Inc. Friday filed a
preliminary reorganization plan to help it emerge from bankruptcy, but
Ventas Inc., a major creditor as well as the owner of many of its
facilities, immediately objected to the plan, according to a Reuters
report. The New York-based Vencor, the nation's second largest provider
of long-term health care, entered into a tentative agreement in August
with the U.S. Department of Health and Human Services to resolve
allegations of poor quality of care and billing abuses. The company has
also been in negotiations with the Department of Justice, which is
investigating claims that Vencor defrauded Medicare of $1 billion since
1992. Under the plan, Vencor would pay the government $25.9 million and
Ventas $103.6 million to settle all civil claims and billing disputes
stemming from the Justice Department probe into the Medicare dispute.
Harvard Industries Inc. Reports That Breed Technologies
Pursue Internal Restructuring
Harvard Industries Inc. reported that Breed Technologies Inc.
announced Thursday that it intends to pursue a stand-alone internal
restructuring in connection with its pending bankruptcy proceeding and
that Breed will no longer be considering a sale to a third party,
according to a newswire report. Harvard had previously been in
discussions with the Lebanon, N.J.-based Breed concerning a proposed
acquisition by Harvard of Breed. Mr. Roger G. Pollazzi, Chairman and
Chief Executive Officer of Harvard, said, “We are disappointed
with Breed's decision to pursue a stand-alone plan. We wish Breed's
employees well in their endeavors.”
Gibbs
Construction Seeks Change in Effective Date of Reorganization
Plan
Gibbs Construction Inc. announced Friday that it has filed a motion to
extend the effective date of its reorganization plan, according to a
newswire report. Gibbs filed a petition pursuant to chapter 11 on April
20 after suffering heavy losses on hotel construction projects. The
Dallas-based company has continued to operate in its normal course of
business pending the effective date of its reorganization plan.
Gibb’s plan incorporates the purchase of the assets of Thacker
Asset Management LLC and is expected to be effective in November pending
court approval of the extended effective date. Gibbs is a general
contractor that provides construction services for retail, office,
warehouse, and specialty real estate.
Fine Air
Receives Operating Cash Lifeline
Fine Air Services received tentative court approval Friday for enough
cash to keep its planes in the air and to pay its employees in a chapter
11 bankruptcy reorganization scheduled to be completed by year-end,
according to the Miami Herald. The privately owned Miami
cargo carrier filed for bankruptcy protection late Wednesday, saying it
would continue to operate its 125 weekly flights to Latin America and
the Caribbean without interruption. Fine Air's filing, which includes
subsidiary Arrow Air, listed $265.3 million in assets and $271.2 million
in liabilities, with 2,600 unsecured creditors.
MicroAge Inc.
Announces Sale of MicroAge Teleservices Subsidiary
MicroAge Inc. Friday announced that its MicroAge Teleservices LLC
subsidiary filed a voluntary petition for chapter 11 and will be sold
through competitive bidding procedures, according to a newswire report.
On April 13, MicroAge and some of its subsidiaries commenced a voluntary
chapter 11 proceeding in order to facilitate the restructuring of its
business. The Tempe, Ariz.-based MicroAge Teleservices, which supplies
its clients with a wide range of inbound and outbound teleservices,
including technical support services, was excluded from the filing at
that time. MicroAge announced that it has approved an agreement with ULA
LLC to purchase the assets of MicroAge Teleservices, subject to higher
and better bids at the auction to be conducted before the court
currently scheduled for Oct. 25.
Unidigital,
Five Units File Chapter 11
Unidigital Inc., together with five affiliates, filed for chapter 11
protection Friday in the U.S. Bankruptcy Court in Delaware, according to
a Reuters report. In court papers, the New York City media services
company listed assets of $143.2 million and debts of $222.7 million,
including $77.6 million in secured and $21.6 million in unsecured debt.
Those listed as owning at least five percent of the company are Chairman
William Dye, President Peter Saad, and Anthony Manser.
size='2'>
Iridium Seeks Exclusivity Extension To Negotiate
Sale
Claiming that there is a 'reasonable chance' that a sale of its assets
can be completed, Iridium LLC is seeking a 90-day extension of its
exclusive periods to file a reorganization plan and solicit plan
acceptances. Currently, Iridium and its financial backer Motorola Inc.
are in active talks with an unidentified bidder regarding the sale of
Iridium's assets, including its satellites. However, an agreement has
yet to be reached, Iridium's extension request notes. Iridium notes that
it has provided drafts of a plan to interested parties, including its
creditors' committee, lenders, and Motorola. However, plan talks have
been put on hold while the parties market Iridium's assets.
Courtesy of
href='http://www.fedfil.com/bankruptcy/developments.htm'>The Daily
Bankruptcy Review Copyright © October 2,
2000
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