Indian Firm to Purchase Telequest
A federal bankruptcy judge Friday approved the sale of Telequest Corp.
to a company based in India for an estimated $2.5 million-$3 million,
according to a newswire report. Representatives of the Essar Group
said the group wants to buy the troubled Arlington, Texas-based
telemarketing company as an entry into the telemarketing business. U.S.
Bankruptcy Judge Steven Felsenthal said the sale to Essar was in
the best interest of the estate, including creditors, employees and
landlords.
Judge Felsenthal denied a request by Gordon McKenna, the
principal stockholder, chairman and chief executive of Telequestion, to
retake control of the company. Telequestion, which operates as Telequest
Corp., has been operating under the protection of the bankruptcy court
since June.
Ex-owner of Publishing Firm Files For Bankruptcy
The former owner of SPI Communications Inc. (SPI) and a member of the
Shinners publishing family last week filed for chapter 7 bankruptcy,
according to a newswire report. John J.T. Shinners of New Berlin,
Wis., listed assets totaling $218,393 and liabilities totaling $8.3
million. His attorney, Bruce A. Lanser, said that much of
the debt was SPI corporate debt, but that Shinners had given a personal
guarantee for a significant portion. The bankruptcy was
'precipitated by his desire to discharge his personal guarantees,'
Lanser said, while at the same time protecting himself from personal
liability down the road if creditors seek to hold him responsible for
the non-guaranteed debt. The bankruptcy schedules list $7,554 owed
to secured creditors and $8.3 million owed to unsecured creditors.
NutraMax Receives Confirmation of
Reorganization Plan
NutraMax Products Inc. yesterday announced that the U. S. Bankruptcy
Court in Wilmington, Del., confirmed the company's reorganization plan,
according to a newswire report. The company received overwhelming
approval of the plan by all classes of creditors involved in the case
and is expected to have its plan become effective within 60 days.
NutraMax, which filed chapter 11 on May 2, is a manufacturer and
marketer of consumer health care products.
The Gloucester, Mass.-based company also announced that CIT
Group/Business Credit Inc. will continue to serve as the primary lending
institution to the company. CIT has committed to converting an
existing $30 million debtor-in-possession (DIP) facility to a $40
million facility designed to complete certain transactions incorporated
within the plan and to fund ongoing operations of the company.
CRIIMI MAE Completes Sale to Fund Reorganization
CRIIMI MAE Inc. yesterday announced that it has sold the
subordinated commercial mortgage-backed securities (CMBS) from four
transactions, raising proceeds of about $189 million and completing all
of the CMBS sales contemplated by the Rockville, Md.-based company's
reorganization plan, according to a newswire report. The
announcement comes eight days before the scheduled Nov. 15 confirmation
hearing in bankruptcy court on CRIIMI MAE's third amended joint
reorganization plan. On Nov. 3, the company filed an affidavit with the
bankruptcy court certifying that all impaired classes of creditors and
equity holders voted to accept CRIIMI MAE's reorganization plan.
CRIIMI MAE used about $155 million of the proceeds to pay off secured
financing provided by Salomon Smith Barney Inc. (formerly Citicorp
Securities Inc.) and to pay down secured financing provided by German
American Capital Corp. The company used $4 million of the CMBS sales
proceeds to satisfy all remaining claims of Citicorp and its affiliates.
CRIIMI MAE will use the net proceeds of approximately $30 million to
help fund the company's emergence from chapter 11. The CMBS sale brings
the total amount CRIIMI MAE has raised this year through CMBS sales
towards its recapitalization financing to $419 million.
Logo Athletic Files for Chapter 11
Licensed sports clothing-maker Logo Athletic Inc. yesterday filed
chapter 11 in U.S. Bankruptcy Court in Delaware, according to the
Associated Press. The Indianapolis-based Logo Athletic makes
clothing and hats licensed by Major League Baseball, the National
Football League, the National Basketball Association and the National
Hockey League, as well as major college teams and the Indianapolis Motor
Speedway. Logo Athletic manufactures clothing under three brand
names: Puma ATA, LogoAthletic and Logo 7.
Daewoo Motor Declared Bankrupt
South Korea's troubled Daewoo Motor Co. was officially declared bankrupt
today, according to a newswire report. 'The decision was made at a
meeting of creditor banks,' said an official of Daewoo Motor's main
creditor bank, Korea Development Bank (KDB). Daewoo Motor failed
to make a payment deadline of 44.5 billion won (39 million dollars) for
two consecutive days, he said.
The bankruptcy was declared after the Daewoo Motor union refused to
back down on job cuts. Creditor banks had pushed back a deadline
for declaring the country's second largest car firm bankrupt until
Wednesday to give more time to the company's union and management to
narrow differences on 3,500 job cuts, some 20 percent of the automaker's
workforce. The creditor banks or Daewoo Motor will now file for
court receivership, an action that would freeze all liabilities and
claims on loans.
National Health & Safety Announce
Confirmation Hearing Update
National Health & Safety Corp. yesterday announced that the
company’s creditors and shareholders agreed unanimously on Nov. 6
to support its reorganization plan. The initial vote tally
indicated that 70 percent of the voting Horsham, Penn.-based company
creditors and 99 percent of the shareholders voted to accept the
plan. Once the plan is implemented, MedSmart Healthcare Network
Inc. (including POWERx) will become a wholly owned subsidiary of
National Health & Safety Corp.
Weiner's Stores Inc. Announces Timing of
Third Quarter 2000 Results
Weiner's Stores Inc. reported yesterday that due to the company's
chapter 11, it will not be reporting sales or earnings for the quarter
ended Oct. 28 until its Form 10-Q is filed with the Securities and
Exchange Commission, according to a newswire report. The company, based
in Houston, expects to file the form on or about Dec. 12.
BroadcastAmerica.com and SurferNETWORK.com
Plan to Combine
BroadcastAmerica.com Inc., a provider of streaming media via the
Internet, and SurferNETWORK.com Inc., a Mt. Olive, N.J. Internet
marketing and streaming radio company, yesterday announced that intend
combine their companies, according to a newswire report. Upon completion
of the transaction, the new entity, which will be called
BroadcastAmerica and headquartered in Portland, Maine, will be the
preeminent provider of streaming traditional radio via the Internet.
To begin the transaction, BroadcastAmerica.com voluntarily filed a
chapter 11 petition in the U.S. Bankruptcy Court in Portland,
Maine. Although the outcome cannot be guaranteed, the two
companies will work closely together to successfully reorganize
BroadcastAmerica.com, and subsequently combine the two companies'
operations.
Pets.com Shuts Down
Pets.com yesterday announced that it is shutting down its retail
operations and laying off hundreds of employees, according to a newswire
report. The Amazon.com-backed company was the leading online pet
store and was known for its wildly popular sock puppet. The San
Francisco-based company said it would sell off its assets, including its
catchy URL and the rights to the sock puppet icon. The company
said that it would continue taking orders until 11 a.m. Pacific standard
time tomorrow. Pets.com also plans to shut down its web site
today, although it may delay the closure depending on its order
volume.
As of Sept. 30, Pets.com had about $23 million in cash, down from $37
million at the end of June. The company lost $21.7 million in the third
quarter on $9.4 million in revenue. But unlike many other dot-coms,
Pets.com has not filed for bankruptcy and has no plans to do so, said
company spokesperson John Cummings. Instead, the e-tailer will
distribute the proceeds from its asset sales to its shareholders.
Although no one stepped up to the plate to invest in Pets.com this
summer or buy it outright, Cummings said that several companies have
already expressed interest in buying its assets. Pets.com will be
the second Amazon aligned e-tailer to close its doors. In July, home
furnishings e-tailer Living.com shut down and filed for bankruptcy.
ContiFinancial Disclosure Statement Hearing
The U.S. Bankruptcy Court will conduct a Nov. 8 hearing to consider
approving ContiFinancial Corp.'s disclosure satement related to the
company's reorganization plan, filed Sept. 13, according to a newswire
report. The company has been operating under chapter 11 protection since
May 17.
Court Confirms American Banknote's Chapter 11 Reorganization
Plan
American Banknote Corp. on Friday won confirmation of its third amended
chapter 11 plan, which provides for the company's 11.25 percent senior
subordinated noteholders to receive about 90 percent of the equity in
the reorganized company. Friday's order, entered by Judge Prudence
Carter Beatty of the U.S. Bankruptcy Court in Manhattan, followed a
confirmation hearing on Oct. 27. Except for holders of unsurrendered
preferred stock claims and warrant interests, all creditor classes
either voted in favor of the plan or their claims weren't altered, or
'impaired,' under the plan. General unsecured claim holders and holders
of 11.625 percent senior note claims aren't impaired under the plan.
Courtesy of
href='http://www.fedfil.com/bankruptcy/developments.htm'>The Daily
Bankruptcy Review Copyright © November 8,
2000.
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