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California Bankruptcy Rates Fall
According to industry experts, rising home values, modest inflation and
the lowest unemployment levels in decades have pushed U.S. bankruptcy
rates 8 percent lower and brought sharp declines in California filings,
the Sacramento Bee reported. However, they said, the number of
people seeking bankruptcy protection remained 1.3 million, and about 97
percent of those filings were for personal rather than business reasons.
'The 1.3 million bankruptcy filings would be a record in any year except
for 1997 and 1998 (when rates exceeded 1.4 million),' said ABI Executive
Director Samuel J. Gerdano. 'The rates of decline don't approach the
spike up in filings that occurred during much of the mid- to late-1990s,
when we had as high as 20 percent annual increases.' However, California
bankruptcy districts recorded some of the biggest improvements
nationally. In the Eastern District, the rate fell more than 13 percent.
Nationally, the 8 percent drop was preceded a year earlier by an 8.5
percent decline.
Inacom Files for Chapter 11
Inacom, an Atlanta-based information technology services provider,
announced on Friday that it closed most of its business operations and
filed for chapter 11 bankruptcy protection, according to Reuters. Last
month, the company said that it was having cash-flow problems and had
hired The Blackstone Group for financial advice, but was unable to sell
its core services business. In February, it sold its former product
customization and logistics operations to Compaq Computer for $369.5
million in cash. The company said it will restate its financial results
for the first three fiscal quarters of 1999 and all of 1998 to recognize
special charges, which exceed $25 million.
Court Approves Sale of Datapoint Corp.'s European Operations, Name
Change
Datapoint Corp. announced Friday that the U.S. Bankruptcy Court for the
District of Delaware approved the previously reported sale of its
European operations, headquartered in Paris, and certain U.S. Assets to
Datapoint NewCo I Ltd. for $49.5 million in cash, less certain
adjustments, including an adjustment in the event that the aggregate
shareholder deficit of the European operations exceeds $10.0 million at
closing, according to a newswire report. The sale is expected to close
within 30 days, and the company said it intends to file a chapter 11
reorganization plan. In addition, the court approved the company's name
change to Dynacore Holdings Corp. The San Antonio-based company
specializes in the design, integration and maintenance of data, voice
and networking communications solutions, including call center and
computer-telephony integration.
Flooring America Seeks Chapter 11 Protection
Kennesaw, Ga.-based Flooring America Inc. announced on Thursday that it
filed for chapter 11 with the U.S. Bankruptcy Court for the Northern
District of Georgia in Atlanta, according to Reuters. The company said
it plans to lay off much of its staff at its corporate headquarters. The
company also announced that Michael Cherico has been appointed president
of both Flooring America and GCO Carpet Outlet, succeeding David
Nichols, who continues as chairman and chief executive officer. The
chapter 11 filing 'provides us the flexibility and breathing room
necessary to begin implementing our reorganization plan,' said Nichols.
Senate Confirms New York Bankruptcy Judge
On Friday, the Senate confirmed Hon. Laura Taylor Swain as a U.S.
district judge for the Southern District of New York, the CQ Daily
Monitor reported.
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