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Bankruptcy Reform on Congressional Agenda
Congress will return to Washington on Tuesday, and bankruptcy
practitioners are awaiting word on how or if lawmakers can agree to a
reform bill before this session ends. The New York Law Journal
reported on possible House decisions on the bankruptcy reform act. You
can read the full text
HREF='http://www.law.com/cgi-bin/gx.cgi/AppLogic+FTContentServer?pagename=law…'
TARGET='window2'>here.
FirstPlus Announces Bankruptcy Closing
FirstPlus Financial Group Inc. announced the closing on May 10 of the
bankruptcy plan for its fully owned subsidiary, FirstPlus Financial,
according to a newswire report. The plan as approved was initially filed
last July with the U.S. Bankruptcy Court in Texas. As specified in the
plan, the Dallas company will dispose of a substantial portion of its
assets and provide the proceeds to the FirstPlus Financial bankruptcy
estate as part of its settlement. The plan provides that FirstPlus will
retain its ownership of the common stock; its subsidiary, Western
Interstate Bancorp, will be managed by an independent, court-appointed
trustee; and the shares may be placed in a voting trust. If the issues
can be resolved, the company said it will continue to review and pursue
appropriate business alternatives.
Costilla Reports Louis Dreyfus Won Bid for Assets
Costilla Energy Inc. said Friday that it announced to the U.S.
Bankruptcy Court for the Western District of Texas on Wednesday that
Louis Dreyfus National Gas Corp. was the successful bidder for the
company's oil and gas assets, with a bid of $133,250,000, according to a
newswire report. The sale of Costilla's properties is subject to entry
of the order approving the sale by the bankruptcy court. The company
cited issues of unknown risk, uncertainties and other factors, which may
have caused problems with the company's results, performance and
achievements. The Midland, Texas, company is an independent oil and gas
company with operations primarily in the Gulf Coast region.
Axiohm Emerges from Chapter 11
Axiohm Transaction Solutions Inc. and its U.S. subsidiaries announced
that they have successfully emerged from chapter 11, according to a
newswire report. The company's chapter 11 plan was approved for
reorganization by the U.S. Bankruptcy Court in Wilmington, Del., in
April. The plan received support from the Ithaca, N.Y., company's
creditors and shareholders. On Thursday, all conditions for the
consummation of the chapter 11 plan were satisfied, including the
closing of the company's new $85.5 million credit facility provided by a
syndicate of lenders led by Lehman Commercial Paper Inc. 'We are very
excited about the future of Axiohm,' said new Board-appointed Chief
Executive Officer Marc Pferrele. 'We are grateful to our customers,
vendors, employees and other stakeholders who supported us and help
shorten our stay in chapter 11.'
Stone & Webster Files for Bankruptcy
The engineering firm of Stone & Webster Inc. and 71 affiliates filed for
chapter 11 protection last Friday in the U.S. Bankruptcy Court in the
District of Delaware, according to Reuters. The company listed assets of
$917.2 million and debts of $604.5 million. Earlier on Friday, Jacobs
Engineering Group Inc. confirmed that it had agreed to buy a substantial
amount of the assets of the Boston-based company for $150 million in
cash and stock. Jacobs has also agreed to provide Stone & Webster $50
million in debtor-in-possession financing.
Iridium May be Bought by Castle Harlan
The New York merchant bank Castle Harlan has filed a proposal in
bankruptcy court to acquire the assets of Iridium global communication
system company, according to the Agence France Presse. The plan was
approved last Thursday for Castle Harlan to purchase the assets for $50
million and an equity consideration in the successor entity. Iridium, a
$5 million project backed by Motorola, went bankrupt last August and
filed for chapter 11 in the U.S. Bankruptcy Court for the Southern
District of New York. Castle Harlan said it would spend up to 45 days
determining the viability of its business plan.
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