January 26, 2000
Federal Government (and ABI) Closed Again Today Due to Snow
Storm
The federal government is again shut down today due to icy conditions in
the Washington metropolitan area. Reuters reported late yesterday that
the Senate would push to complete the long-delayed legislation today.
Senate Majority Leader Trent Lott (R-MS) said, 'We did lock in an
agreement as to how to go forward, what amendments would be considered
and voted on. I think it's important that we now try to finish the
legislation on Wednesday.' It is not clear whether this will occur given
that the government is officially closed again.
ABI members will receive a Network Update via email as more details
are available.
Venator Announces Store Closings and Job Cuts
The Venator Group, formerly known as Woolworth, announced yesterday
further attempts to restructure; the company will close 358
underperforming stores and cut about 3,700 jobs, according to the
Associated Press. In recent years, the retailer has closed thousands of
stores and sold many of its non-core divisions to focus primarily on
sporting goods. Venator will close 123 Foot Locker, Lady Foot Locker and
Kids Foot Locker stores, 27 Champs stores and 208 Northern Group
clothing stores, and it plans to consolidate management of its Kids and
Lady Foot Locker stores. The retailer also will close the Champs
distribution center in Maumelle, Ark., as well as consolidate its
operation with the Foot Locker facility in Junction City, Kan. The
company will move its corporate headquarters out of the historic
Woolworth building in Manhattan, which it sold two years ago. The new
base will be at the Foot Locker headquarters in Midtown (New York City).
Al Kingsley, senior managing director at a company that owns more than
14 percent of Venator's stock, said the cutbacks are a step toward
bringing the company back to health and praised the company for closing
stores that are not producing satisfactory sales levels. Analysts,
however, warn that Venator is not out of trouble, given that the
sporting goods industry is struggling. Rival Just For Feet filed chapter
11 in November, and Sports Authority's sales have dropped.
Sabratek Announces Sale of Assets
Sabratek Corp., Skokie, Ill, announced yesterday that it completed the
sale of all of the assets, together with certain liabilities, associated
with its infusion pump business and Rocap product line to Baxter
Healthcare Corp. on Jan. 21, according to a newswire report. The sale
was valued at about $48 million in cash and assumed liabilities.
Sabratek also said it expects to complete the sale of substantially all
of the assets and certain liabilities of its LifeWatch Inc. subsidiary
to URS Acquisition Corp. before the end of the month. This transaction
is expected to be valued at about $10.5 million in cash and assumed
payables, plus the assumption of selected contracts and leases. The
Bankruptcy Court for the District of Delaware approved both transactions
on Jan. 18 in an auction process. Sabratek is now evaluating the best
method for generating value from its remaining assets, including its
Unitron Medical Communications Inc., GDS Inc. and CMS Inc. subsidiaries.
The company is also developing its reorganization plan.
Court Approves Sale of Loewen Assets
Funeral home and cemetery operator Loewen Group Inc., Toronto, said
Monday that a U.S. bankruptcy court has approved its plan to sell nearly
a quarter of its assets, according to a newswire report. The company is
talking with potential buyers for the U.S. properties and wants
potential buyers to file letters of intent by Feb. 7 to identify which
assets they want. In December, Loewen announced it would sell up to 371
of its nearly 1,300 funeral homes and cemeteries as part of its
reorganization plan.
New Title Examines Internet's Impact on Bankruptcy and Secured
Lending
Bankruptcy and Secured Lending in Cyberspace, a new book from Bowne
& Co., discusses the Internet's impact on bankruptcy and secured
lending, according to a newswire report. Banks will begin offering
'mortgages' on Internet domain names and web sites with these
cyberassets as loan collateral. Bankruptcy trustees will use the
Internet to auction assets, following techniques made popular by Ebay
and FairMarket, according to the publisher. And equity committees in
chapter 11 proceedings will be formed through Yahoo Finance chat rooms
and newsgroups. The book helps companies leverage the value of their
cyberassets and provides lenders and their attorneys with detailed
guidance on how to perfect a security interest and preserve the value of
domain names and web sites in bankruptcy.
Arnold Schwarzenegger Ends Relationship with Planet
Hollywood
Actor Arnold Schwarzenegger ended his relationship with Planet Hollywood
International Inc. yesterday, four days after the company emerged from
bankruptcy protection, according to Reuters. He released a statement
that he was giving up his ownership interest in the Orlando, Fla.-based
company. He said, 'It was lots of fun and very challenging to come up
with and develop the celebrity restaurant concept on an international
level. Of course, I am disappointed that the company did not continue
with the success I had expected and hoped for. I wish Planet Hollywood
well, but I want to focus my attention now on new U.S. and global
business ventures and on my movie career.' Planet Hollywood CEO Robert
Earl said in a statement that the company 'retains rights to continue to
use Schwarzenegger's name and likeness in connection with the Planet
experience...' But the actor's publicist suggested that this would be
challenged.
Tyumen Oil Endorses Ending Bankruptcy of Sidanco Oil
Tyumen Oil Co., Moscow, one of the world's largest integrated oil
companies in reserves, this week endorsed the decision to move toward
ending the bankruptcy of Sidanco Oil Co., according to a newswire
report. Sidanco's creditors in Moscow voted Monday for an amicable
settlement to bring Sidanco out of bankruptcy, following the Dec. 22
signing of a preliminary agreement between Sidanco and shareholders,
including BP Amoco, and Tyumen Oil's shareholders on ownership of
Sidanco and its subsidiary, Chernogorneft. The creditors' committee's
decision goes to the Moscow District Court on Friday for confirmation
and implementation.
ABI is closed today due to a snowstorm in the Washington
metropolitan area.
Headlines. New articles are posted here each business
day.
Federal Government (and ABI) Closed Again Today Due to Snow Storm
The federal government is again shut down today due to icy conditions in
the Washington metropolitan area. Reuters reported late yesterday that
the Senate would push to complete the long-delayed legislation today.
Senate Majority Leader Trent Lott (R-MS) said, 'We did lock in an
agreement as to how to go forward, what amendments would be considered
and voted on. I think it's important that we now try to finish the
legislation on Wednesday.' It is not clear whether this will occur given
that the government is officially closed again.
ABI members will receive a Network Update via email as more details
are available.
Venator Announces Store Closings and Job Cuts
The Venator Group, formerly known as Woolworth, announced yesterday
further attempts to restructure; the company will close 358
underperforming stores and cut about 3,700 jobs, according to the
Associated Press. In recent years, the retailer has closed thousands of
stores and sold many of its non-core divisions to focus primarily on
sporting goods. Venator will close 123 Foot Locker, Lady Foot Locker and
Kids Foot Locker stores, 27 Champs stores and 208 Northern Group
clothing stores, and it plans to consolidate management of its Kids and
Lady Foot Locker stores. The retailer also will close the Champs
distribution center in Maumelle, Ark., as well as consolidate its
operation with the Foot Locker facility in Junction City, Kan. The
company will move its corporate headquarters out of the historic
Woolworth building in Manhattan, which it sold two years ago. The new
base will be at the Foot Locker headquarters in Midtown (New York City).
Al Kingsley, senior managing director at a company that owns more than
14 percent of Venator's stock, said the cutbacks are a step toward
bringing the company back to health and praised the company for closing
stores that are not producing satisfactory sales levels. Analysts,
however, warn that Venator is not out of trouble, given that the
sporting goods industry is struggling. Rival Just For Feet filed chapter
11 in November, and Sports Authority's sales have dropped.
Sabratek Announces Sale of Assets
Sabratek Corp., Skokie, Ill, announced yesterday that it completed the
sale of all of the assets, together with certain liabilities, associated
with its infusion pump business and Rocap product line to Baxter
Healthcare Corp. on Jan. 21, according to a newswire report. The sale
was valued at about $48 million in cash and assumed liabilities.
Sabratek also said it expects to complete the sale of substantially all
of the assets and certain liabilities of its LifeWatch Inc. subsidiary
to URS Acquisition Corp. before the end of the month. This transaction
is expected to be valued at about $10.5 million in cash and assumed
payables, plus the assumption of selected contracts and leases. The
Bankruptcy Court for the District of Delaware approved both transactions
on Jan. 18 in an auction process. Sabratek is now evaluating the best
method for generating value from its remaining assets, including its
Unitron Medical Communications Inc., GDS Inc. and CMS Inc. subsidiaries.
The company is also developing its reorganization plan.
Court Approves Sale of Loewen Assets
Funeral home and cemetery operator Loewen Group Inc., Toronto, said
Monday that a U.S. bankruptcy court has approved its plan to sell nearly
a quarter of its assets, according to a newswire report. The company is
talking with potential buyers for the U.S. properties and wants
potential buyers to file letters of intent by Feb. 7 to identify which
assets they want. In December, Loewen announced it would sell up to 371
of its nearly 1,300 funeral homes and cemeteries as part of its
reorganization plan.
New Title Examines Internet's Impact on Bankruptcy and Secured
Lending
Bankruptcy and Secured Lending in Cyberspace, a new book from Bowne
& Co., discusses the Internet's impact on bankruptcy and secured
lending, according to a newswire report. Banks will begin offering
'mortgages' on Internet domain names and web sites with these
cyberassets as loan collateral. Bankruptcy trustees will use the
Internet to auction assets, following techniques made popular by Ebay
and FairMarket, according to the publisher. And equity committees in
chapter 11 proceedings will be formed through Yahoo Finance chat rooms
and newsgroups. The book helps companies leverage the value of their
cyberassets and provides lenders and their attorneys with detailed
guidance on how to perfect a security interest and preserve the value of
domain names and web sites in bankruptcy.
Arnold Schwarzenegger Ends Relationship with Planet
Hollywood
Actor Arnold Schwarzenegger ended his relationship with Planet Hollywood
International Inc. yesterday, four days after the company emerged from
bankruptcy protection, according to Reuters. He released a statement
that he was giving up his ownership interest in the Orlando, Fla.-based
company. He said, 'It was lots of fun and very challenging to come up
with and develop the celebrity restaurant concept on an international
level. Of course, I am disappointed that the company did not continue
with the success I had expected and hoped for. I wish Planet Hollywood
well, but I want to focus my attention now on new U.S. and global
business ventures and on my movie career.' Planet Hollywood CEO Robert
Earl said in a statement that the company 'retains rights to continue to
use Schwarzenegger's name and likeness in connection with the Planet
experience...' But the actor's publicist suggested that this would be
challenged.
Tyumen Oil Endorses Ending Bankruptcy of Sidanco Oil
Tyumen Oil Co., Moscow, one of the world's largest integrated oil
companies in reserves, this week endorsed the decision to move toward
ending the bankruptcy of Sidanco Oil Co., according to a newswire
report. Sidanco's creditors in Moscow voted Monday for an amicable
settlement to bring Sidanco out of bankruptcy, following the Dec. 22
signing of a preliminary agreement between Sidanco and shareholders,
including BP Amoco, and Tyumen Oil's shareholders on ownership of
Sidanco and its subsidiary, Chernogorneft. The creditors' committee's
decision goes to the Moscow District Court on Friday for confirmation
and implementation.
ABI is closed today due to a snowstorm in the Washington
metropolitan area.
Headlines. New articles are posted here each business
day.