Financial
Lobbyists Seek Passage of Bankruptcy Overhaul
While Congress is in recess, financial lobbyists are voicing
their concerns over bankruptcy legislation, according to
the Congressional Quarterly. Many of those lobbyists said yesterday that
they are tired of seeing bankruptcy overhaul legislation
bogged down for months in conference committees. They have
said that if it isn’t freed soon, they will push for alternative
ways to move less controversial parts of the package (H.R.
833). At a press conference, Bond Market Association officials
“urged Congress to complete work on the effort to overhaul
the nation's bankruptcy laws.” The legislation “would allow
for the termination of certain financial contracts and products
when a person or firm declares bankruptcy.”
Feminique
Corp. Files Chapter 11
Feminique Corp. announced yesterday that it filed chapter
11 on Aug. 3, according to a newswire report. The New York-based
company failed to raise the necessary capital to complete
its original business plan, and since the company is currently
unable to meet its financial obligations, its board of directors
made the decision to file chapter 11. Acting President and
CEO Jonathan Rosen said, “It is our belief that if the company
is to stand any chance of implementing a sensible business
model, that such a model might only succeed after the company
has been thoroughly 'cleansed' of all attachments to its
previous operations.” Management intends to attempt a complete
reorganization in the chapter proceeding and to place new
revenue-generating assets into the company.
Levitz
Announces Intent to Pursue a Combination with Seaman Furniture
Levitz Furniture Corp. yesterday asked the bankruptcy
court to dismiss an adversary proceeding that it had filed
in May against certain minority shareholders of Seaman Furniture
Co. Inc., according to a newswire report. Levitz filed the
action in response to litigation initiated by those minority
shareholders against Seaman and other parties. The minority
shareholder litigation sought and obtained an injunction
to prevent Seaman and Levitz from entering into previously
announced agreements to combine certain management and support
services functions. Levitz asked the court to dismiss the
proceedings after being told the minority shareholders and
parties to their dispute had reached agreement on the terms
of a settlement of the shareholder litigation pending in
the Delaware Court of Chancery. It is expected that, upon
satisfaction of the conditions to the settlement and confirmation
of a plan of reorganization for Levitz, Levitz and Seaman
stores will continue to operate under their existing banners.
