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Former Polaroid Seeks More Time for Turnaround Plan
The entity formerly known as Polaroid Corp. is seeking approval from a
bankruptcy court to extend its exclusive right to file a reorganization
plan and solicit acceptances from creditors, Dow Jones reported. The
company shares exclusivity with its official committee of unsecured
creditors, according to court papers, reported the newswire. Court
papers said the two groups until Jan. 20 to file a plan and until March
20 to lobby for creditor support, the newswire reported. A hearing on
the issue is scheduled for Jan. 16 in the U.S. Bankruptcy Court in
Wilmington, Del., Dow Jones reported. The former Polaroid filed a plan
with the court on April 29, 2002, but the company and its creditors are
still working out details for the asset purchase agreement connected
with the sale, according to the newswire. The company and 20 affiliates
filed for chapter 11 bankruptcy protection on Oct. 12, 2001, and listed
consolidated assets of $1.81 billion and $948 million in liabilities as
of July 1, 2001.
UNITED AIRLINES
UAL Creditor Seeks More Information on Leased Planes
Pacific Harbor Capital Inc., a creditor that owns aircraft leased to UAL
Corp., the parent of United Airlines, is asking the U.S. Bankruptcy
Court in Chicago to force the airline and an indenture trustee to
provide information about some of the airline's loan certificates, Dow
Jones reported. Pacific Harbor owns six trusts, each of which owns a
Boeing 757-322 aircraft. The planes, which are leased to United
Airlines, were purchased in part with proceeds of debt issued by the
trusts to institutional investors in the form of loan certificates,
court papers said. Chicago-based UAL filed for chapter 11 bankruptcy
protection in December.
UAL's United Airlines to Eliminate 1,688 More Jobs
UAL Corp.'s United Airlines will eliminate 1,688 more jobs, closing 32
city ticket offices and firing 1,500 salaried and management employees,
Bloomberg News reported. The world's second-biggest airline said it will
close all remaining U.S. city ticket offices on Jan. 28, laying off 188
workers in the process. Unlike the managers, most of those 1,200 workers
belong to unions and can be recalled, reported the newswire.
Chicago-based UAL, which filed for chapter 11 bankruptcy protection on
Dec. 9, has said it needs to reduce labor costs by $2.4 billion to
secure financing for operations during the bankruptcy and help it return
to profitability, reported the newswire.
Trend Technologies Gets Court OK to Sell Its Assets to Former
CEO
Trend Technologies Inc. on Friday won approval of the sale of
substantially all of its assets to an entity 50 percent owned by its
former chief executive in a deal valued at $69 million, Dow Jones
reported. The order signed by Chief Judge Peter J. Walsh of the
U.S. Bankruptcy Court in Wilmington, Del., authorizes the debtor company
to sell its assets to Trend Technologies LLC, which is half-owned by
Earl Payton, the newswire reported. Payton's entity is paying $61
million in cash and assuming roughly $8 million in liabilities, said
Brad R. Godshall, an attorney representing Trend Technologies Inc.,
reported Dow Jones. Payton's bid was the only offer the debtor company
received for its assets at a December auction, according to the
newswire. A key to the sale was an agreement between Trend Technologies,
its committee of unsecured creditors and its lenders that resolved an
objection filed by the creditor panel and increased the potential
distribution to unsecured creditors under a liquidation plan, reported
the newswire.
International Steel Offer for Bethlehem Is Likely
International Steel Group is expected to announce today its plan to
purchase most of the assets of ailing Bethlehem Steel Corp. for about $1
billion, forming the country's largest steel company, but also resulting
in the loss of thousands of jobs and a less generous labor contract for
remaining employees, the Wall Street Journal reported. Today is
the final day of Cleveland, Ohio-based International Steel's 60-day
exclusive negotiating period to purchase Bethlehem Steel, which has been
operating under protection of chapter 11 of the U.S. Bankruptcy Code for
more than a year. Wilbur Ross, International Steel's chairman, said in
an interview last week that there is a 'high probability that a deal
would be made,' reported the Journal.
The acquisition, which must receive bankruptcy-court approval, would
call for huge job cuts and streamlined benefits for remaining
steel-union employees, but already appears to have critical backing from
the United Steelworkers of America. The union has indicated it would be
open to renegotiating a contract with International Steel to keep at
least some of its members working at the mills, reported the online
newspaper.
Hayes Lemmerz Asks for More Time for Turnaround Plan
Automotive supplier Hayes Lemmerz International Inc. is seeking
bankruptcy court approval for an extension of its exclusive right to
file a reorganization plan and lobby for creditor support, Dow Jones
reported. According to court papers, the company wants until to April 15
to file a reorganization plan and until June 16 to lobby for creditor
support. A hearing on the issue is scheduled for Jan. 10 in the U.S.
Bankruptcy Court in Wilmington, Del., reported the newswire. Hayes
Lemmerz filed a reorganization plan last month and said it expects to
emerge from chapter 11 protection in the first half of 2003. Under the
plan, Hayes Lemmerz would streamline its manufacturing capacity, reduce
fixed costs, strengthen oversight and financial reporting and
renegotiate or reject unfavorable contracts and leases, the company
said, Dow Jones reported.
US Airways Moves Closer to Emerging from Bankruptcy
The Washington Post reports that Arlington, Va.-based US Airways
has resolved all major outstanding disputes with its largest creditor,
GE Capital, and has secured $830 million in financing. Under the
agreement, GE Capital will extend the airline a $120 million loan to
fund its restructuring, reported the online newspaper. US Airways will
receive another $710 million in financing once it exits bankruptcy,
according to the Post. Before US Airways can overcome bankruptcy,
it must deal with its own pension plan and gain final approval from the
Air Transportation Board for a $900 million federal loan guarantee,
according to the Post.
Polymer Group Inc. Wins Approval of Chapter 11 Recovery
Plan
Polymer Group Inc., a maker of fabrics used in Procter & Gamble
Co.'s Pampers
and Luvs disposable diapers and other products, won court approval of a
bankruptcy recovery plan that will let it shed more than $633 million of
debt, Bloomberg News reported. The company said it expects to come out
of chapter 11 in about 50 days, or by Feb. 22. U.S. Bankruptcy Judge
John E. Waites approved the plan at a hearing, according to court
papers, Bloomberg News reported. The plan calls for bondholders to
receive about 9.6 million new company shares, representing an estimated
recovery of about 13 percent of the more than $638 million they're owed.
Polymer Group listed $1.12 billion in assets and $1.17 billion in debts
in chapter 11 papers filed on May 13 in the U.S. Bankruptcy Court in
Columbia, S. C., reported the newswire.
Conseco Creditors' Committees Picked for Bankruptcy
Proceedings
Conseco Inc.'s bankruptcy proceedings will be monitored by three
committees representing different groups of creditors, which include
Prudential Insurance
Co., Bank of America Corp., and United Capital Markets Inc., Bloomberg
News reported. U.S. Trustee Ira Bodenstein named separate committees to
represent unsecured creditors of holding company Conseco Inc., its
Conseco Finance Corp. subsidiary and owners of some preferred
securities. Conseco's chapter 11 filing is the third-largest ever, and
the company said its court-supervised reorganization will last
through the second quarter.
Members of the committee representing unsecured creditors of the
Conseco Inc. holding company include the Bank of New York; Bank of
America's Bank of America N.A.; Angelo, Gordon & Co. LP; Appaloosa
Management LP; HSBC Holdings PLC's HSBC Bank USA Inc.; Metropolitan West
Asset Management LLC; and First Pacific Advisors Inc. The committee
representing unsecured creditors of Conseco Finance includes U.S.
Bancorp's U.S. Bank National Association; Millennium Partners LP;
Prudential Insurance Co.; Commonwealth Advisors Inc.; Deutshe Bank AG's
Deutsche Asset Management; Jefferson Pilot Financial Insurance Co. and
Morgan Keegan. The smallest committee represents holders of
trust-originated preferred securities, including United Capital Markets
Inc., Oppenheimer Capital and Paul Floto, reported Bloomberg News.
Metromedia May File for Bankruptcy as Third-quarter Loss
Widens
Metromedia International Group Inc., which owns telephone and
cable-television businesses in Eastern Europe and the former Soviet
Union, said that it may
file for bankruptcy protection as its third-quarter loss widened,
Bloomberg News reported. There is substantial doubt the New York-based
company can
continue as a going concern, it said in a release distributed by
Business Wire. The company, which in November sold its Snapper lawnmower
unit, won't be able to fund its operations and meet its financial
obligations without selling additional assets, it said, reported
Bloomberg.
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