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Hatch Seeks Fewer Curbs on Debt
Collectors
Senate
Judiciary Committee Chairman Orrin G. Hatch (R-Utah) has proposed
amending
bankruptcy legislation to allow debt collectors to telephone, threaten
prosecution and assess fees when consumers fail to pay back bounced
checks within
30 days, according to today¹s Washington Post. The amendment
would exempt
debt collectors from the Fair Debt Collection Practices Act when they
are trying
to collect on bounced checks that have been outstanding for 30 days or
more after
a bank has notified a consumer that there were insufficient funds in his
or her
account. The amendment would make clear that checks are not forms of
credit and
should be covered by the debt-collection law only for a short period of
time.
Many Democrats and Republicans oppose the Hatch amendment and some fear
that
Hatch's amendment could jeopardize the bankruptcy bill by destroying a
Senate-House compromise on consumer-protection provisions. One such
provision
would require that retailers and other creditors make it clear to
consumers how
quickly interest on debt accumulates over time. Some lawmakers
expressed concern
that the amendment would be unfair to consumers by invading their
privacy and
subjecting them to abusive collection methods and exorbitant fees.
The Senate passed its bankruptcy bill in February, and the House passed
similar
legislation last year. Both bills would generally make it harder for
consumers to
wipe out debt through bankruptcy. But complicated parliamentary rules
have so far
enabled opponents of the bill to block the House and Senate from
convening a
conference to reconcile differences between the two bills. Senate
Majority Leader
Trent Lott (R-Miss.), House Speaker J. Dennis Hastert (R-Ill.) and other
Republican leaders yesterday afternoon asked their staffs to reconcile
the two
bills by early next week. To read the entire story,
HREF='http://www.washingtonpost.com/wp-dyn/articles/A52769-2000May11.html'>click
here.
Bankruptcy Trustee Watkins, Wilson goes Bankrupt
According
to a newswire report,
Toronto bankruptcy trustee Watkins, Wilson & Associates Inc., has gone
bankrupt.
The firm faced creditors yesterday and only the Bank of Nova Scotia will
be paid
anything from about $4.5 million of debt, and it might get less than 10
cents on
the dollar. A. Farber & Partners Inc. of Toronto has bought more than
4,000
client accounts and hired 30 of their bankrupt rival's 40 employees. A
new
company name is being considered. Scotiabank appointed an interim
receiver and a
judge approved the sale of the business to Farber on April 4.
Claridge Announces Approval of Disclosure Statement
According to a newswire
report, on Tuesday, the Claridge Hotel and Casino Corp., Atlantic City,
its
wholly owned subsidiary, the Claridge at Park Place Inc. (CPPI) and
Atlantic City
Boardwalk Associates L.P. received from the U.S. Bankruptcy Court in
Camden,
N.J., approval for their disclosure statement. The plan proposes that
Claridge
transfer its assets, which include the land, building and furnishings of
their
casino hotel to the reorganized CPPI, which will continue to be a wholly
owned
subsidiary of the reorganized company. Holders of Claridge¹s $85
million first
mortgage notes will receive on a pro rata basis 100 percent of the
equity of the
reorganized corporation and debt not to exceed $15 million in the form
of new
ten-year secured notes carrying an eight percent coupon rate. The
reorganization
plan will also provide that unsecured creditors be paid in six equal
installments
over a five-year period and total payments to unsecured creditors will
not exceed
$5.5 million. On Aug. 16, the Claridge Hotel and Casino Corporation and
Claridge
at Park Place filed chapter 11 and on Oct. 5, Atlantic City Boardwalk
Assoc. L.P.
filed chapter 11.
Fruit of the Loom Announces Ticker Symbol Change
According
to a newswire report,
Fruit of the Loom Ltd. announced yesterday that the company¹s ticker
symbol has
changed from 'FTLAF' to 'FTLAQ.² The stock will continue to be traded
as an
over-the-counter equity security. Fruit of the Loom filed chapter 11 on
December
29 and is currently working through its restructuring in bankruptcy
proceedings.
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