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NextWave Loses Fight Over Broadcast
Licenses
The Supreme Court yesterday refused to restore valuable broadcast
licenses to a wireless communications firm that lost them because it
missed payment deadlines, according to the Associated Press. The
court, without comment, turned down NextWave Personal Communications'
argument that a federal bankruptcy court could let it keep the licenses
at a much lower cost than it originally promised to pay for them.
NextWave, based in Hawthorne, N.Y., submitted a winning $4.7 billion bid
for 63 airwaves licenses in 1996. But the company was unable to
raise the money to pay for the licenses and filed for bankruptcy
protection in 1998. NextWave sued the FCC, saying that by the time
the government issued the licenses they were worth far less than the
company had promised to pay. A bankruptcy judge ruled that
NextWave could keep the licenses at a reduced cost of $1 billion.
In the appeal action yesterday, NextWave's lawyers
said the 2nd U.S. Circuit Court of Appeals’ ruling would keep
bankruptcy courts from deciding many questions involving regulatory
actions by federal agencies. Bankruptcy courts are supposed to address
all issues involving a debtor's rights and responsibilities, and the
appeals court ruling would keep them from doing so, the lawyers
said. Justice Department lawyers said the FCC has exclusive power
to grant broadcast licenses, and that a winning bidder loses its
entitlement to a license if it does not pay the amount it promised.
Strouds to Close 9 Stores
A Joint Venture comprised of Great American Group and Gordon Brothers
Retail Partners LLC was approved by the U.S. Bankruptcy Court in
Delaware to dispose of the inventory in nine Strouds' locations. 'We are
pleased to have been chosen as the firm to help close these 9 Strouds'
locations and assist the company in its reorganization efforts,' said
Brian Yellen, Vice President, Great American Group. The liquidation
sales at the nine stores in Rowland Heights, Fresno, and Santa Barbara,
Calif.; Schaumburg, Vernon Hills, Skokie, and Oakbrook, Ill.; Roseville,
Minn.; and Reno, Nev. will be effective immediately.
Loehmann’s Inc. Emerges From Chapter
11
Loehmann's Inc. yesterday announced today that the company has formally
emerged from chapter 11 bankruptcy protection, according to a newswire
report. The company's second amended reorganization plan, which
was filed on July 28 and confirmed by the U.S. Bankruptcy Court for the
District of Delaware on Sept. 6, set forth the terms for the company's
exit from chapter 11 and will be effective immediately. The company also
announced that in conjunction with its chapter 11 emergence, it has
closed on a $75 million senior secured exit financing facility provided
by Bankers Trust Company and arranged by Deutsche Banc Alex.
In accordance with the terms of the approved
reorganization plan, the company has formed a new holding company,
Loehmann's Holdings Inc. Loehmann's Inc. is a leading specialty retailer
of well-known designer and brand name women's and men's fashion apparel,
accessories and shoes.
Judge OK’s Owen’s Corning Agreement With Banks
Bankruptcy Judge Mary Walrath yesterday granted Owens
Corning an emergency restraining order, agreed to by its lender banks,
that for now prevents them from making a 'cash grab' on Owens' overseas
affiliates that a grab could derail the parent's reorganization.
Owens attorney Charles Monk said that the agreement preserved the status
quo of overseas affiliates, which were not part of Owens chapter 11
bankruptcy filing last week but 'play an important role in providing raw
materials.' The banks can still exercise their rights, under
a $1.8 billion loan made with Owens in 1997, to refuse additional credit
to the overseas affiliates and to accelerate repayment of outstanding
loans.
At issue are 237,000 pending asbestos claims against Owens for pipe
insulation made between 1952 and 1972 with the trade name Kaylo. The
company has already settled $5 billion in claims, has a $2.4 billion
unpaid asbestos-related liability under a National Settlement Program,
and another $1.4 billion liability for its Fibreboard Corp. subsidiary.
But the company said new claims continue to pour in. Credit Suisse
Group's First Boston investment arm is the agent for the 47 banks in the
syndicate which are based in the United States, Japan, Canada, France,
Belgium, Germany and Brazil. There is still $1.3 billion outstanding on
their original loan to Owens and $250 million in letters of credit.
Drypers Files Chapter 11
Diaper maker Drypers Corp. said yesterday it filed a voluntary petition
to reorganize under chapter 11 and noted that it reached an agreement
with consumer products–giant Procter & Gamble Co. on product
licenses, according to a Reuters report. Drypers filed its
petition with the bankruptcy court in Houston in the Southern District
of Texas. The company said it also sought preliminary court approval for
$25 million in debtor-in-possession (DIP) financing from Fleet Capital
Corp. that would allow it to meet with the necessary intellectual
property licenses to continue manufacturing its products. The company
may also enter into a payment plan to resolve disputes and litigation
launched by Procter and Gamble, but that is subject to approval by the
bankruptcy court.
Gazoontite Files For Bankruptcy
Gazoontite.com, once noted for being one of the first pure online
retailers to open brick-and-mortar stores, filed chapter 11 bankruptcy
in San Francisco, according to a newswire report. Though
Gazoontite continues to operate its five physical stores—in
Southern California, San Francisco, Schaumburg, Ill., New York City and
New York's Long Island—the company shut down its web store late
last month. For more than two months, Gazoontite, which sells
asthma and allergy relief products, has wrestled with a cash shortage.
In August, the company laid off about 50 workers, reducing its staff by
41 percent and began an intense search for new funding.
Babcock & Wilcox Seek More Time To Assess
Asbestos Claims
Bankrupt Babcock & Wilcox Co., a wholly owned unit of nonbankrupt
McDermott International Inc., is seeking longer plan exclusivity periods
that would allow it more time to determine its exposure for asbestos
claims without having to deal with competing Chapter 11 plans. The U.S.
Bankruptcy Court in New Orleans is scheduled to consider the request at
a hearing Wednesday. In its second request for an exclusivity extension,
the New Orleans-based designer and manufacturer of industrial power
generation systems is seeking to maintain the exclusive right to file a
Chapter 11 plan until the date falling 90 days after the expiration of
the deadline for filing asbestos claims. The exclusive plan filing
period is scheduled to expire on Oct. 19.
Courtesy of
href='http://www.fedfil.com/bankruptcy/developments.htm'>The Daily
Bankruptcy Review Copyright © October 11,
2000.
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