Bankruptcy Filings Decrease in Third Quarter, Fiscal Year
2000
Bankruptcies decreased by 6.8 percent in the 12-month period ending
Sept. 30 from the prior year. New filings dropped from 1,354,376 in
fiscal year 1999 to 1,262,102, according to data released yesterday by
the Administrative Office of the U.S. Courts. Although bankruptcies
still top the one-million mark, a decline in filings that began last
year continues.
In fiscal year 2000, the largest number of filings continues to be
under chapter 7. Total chapter 7 filings, however, fell 9.2 percent to
870,805, down from 959,291 in 1999. Chapter 13 filings, the next largest
category, fell 1.1 percent to 380,880 from 385,262. Chapter 12 filings
also decreased to 551, down from 811 in 1999. Chapter 11 filings, the
only category to increase this quarter, rose 9.5 percent from 8,982 in
1999 to 9,835 in 2000.
The overwhelming number of filings continues to be non-business
filings. In fiscal 2000, non-business filings were 97 percent of the
total cases. Since 1993, business cases have declined by 44 percent,
from 64,857 to 36,065 in 2000. New filings during the three months
ending Sept. 30 were 308,718, the lowest figure for a quarter since
September 1996. New filings in a single quarter peaked at 373,460 in
June 1998. While national filings have dropped over 12 percent since
1998, some private forecasts project that national filings will resume
an upward trend during 2001.
Court Confirms Fields Aircraft Spares' Plan of
Reorganization
Fields Aircraft Spares yesterday announced that the U.S. Bankruptcy
Court for the Central District of California has confirmed its
reorganization plan, according to a newswire report. The Simi
Valley, Calif.-based company is expected to emerge from bankruptcy
before Dec.31.
The plan provides for $2.35 million of new debt and equity financing
from private investors. Those investors will receive shares representing
a controlling interest in the reorganized company and 100 percent of the
shares of Skylock Industries. The existing shareholders will
retain equity equal to between 5 to 10 percent of the reorganized
company with the company's bondholders, unsecured creditors and
employees retaining the balance. Fields is a distributor of
aircraft cabin interior replacement products.
Ozer Group Successfully Brokers Sale of
Nevada Bob's Golf Stores
The Bankruptcy Court in Fort Worth, Texas, yesterday approved the sale
of 36 Nevada Bob's company-owned stores in transactions orchestrated by
The Ozer Group of Needham, Mass., according to a newswire report.
Nevada Bob’s Golf Inc. had retained Ozer earlier this month to act
as its restructuring consultant and its agent to sell all or part of the
company's store-level assets in connection with Nevada Bob's chapter 11
case.
The transactions approved yesterday included 17 of
the 36 stores being sold to Texas- Tri-Capital Ventures, headed by Mark
Gunderson. Gunderson is the founder of Alien Golf, which had been
acquired by Nevada Bob's several years ago. Another 19 stores were sold
to the California-based New Golf Holding Company, headed by Richard
Oldenburg. Oldenburg is the founder of Orlimar Golf, which makes and
markets the popular TriMetal woods. As part of both transactions, the
buyers have received the right to use the Nevada Bob's Golf name.
Nevada Bob's is a worldwide system of company-owned and franchised golf
specialty retail stores.
Plainwell Inc. Files for
Reorganization
Plainwell Inc., a specialty paper and tissue manufacturer, yesterday
announced that it has filed a voluntary petition for reorganization
under chapter 11 in the U.S. Bankruptcy Court in Wilmington, Del.,
according to a newswire report. Along with its bankruptcy
petition, the Minneapolis-based Plainwell Inc. sought preliminary court
approval for a new $55 million debtor-in-possession (DIP) financing
facility. Congress Financial Corp will provide the facility.
The new facility will provide an immediate source of funds to the
company, enabling it to satisfy the customary obligations associated
with the daily ongoing operation of its businesses.
United Artists Announces Negotiations, Financials
United Artists Theater Company announced that it is in final
negotiations for a $35 million secured revolving credit line with an
unidentified lender. The company proposes that the financing, which will
be available upon emergence from chapter 11 protection, will be used to
repay borrowings under its debtor-in-possession credit line and also for
working capital and general corporate needs. Separately, the company
further announced financial results for the thirteen weeks ended Sept.
28, reporting total consolidated revenues of $149.5 million, compared to
$180.2 million for the same period last year. Net loss available to
common stockholders was $54.8 million, compared to $23.4 million for the
same period last year. United Artists has been operating under chapter
11 protection since Sept. 5.
Geneva Steel Company Announces Confirmation
of Reorganization Plan
Geneva Steel Company yesterday announced that the U.S. Bankruptcy Court
for the District of Utah confirmed its reorganization plan on Nov.
21. The plan was proposed jointly by the Vineyard, Utah-based
company and the official committee of bondholders in the company's
chapter 11 case. Under the plan, Geneva’s pre-bankruptcy
unsecured creditors will receive, in lieu of cash payments,
substantially all of the common stock of the company and the right to
purchase convertible preferred stock. The elimination of substantially
all of the company's pre-petition debt will significantly de-leverage
the company. The pre-bankruptcy holders of Geneva's common and
preferred stock will not receive a distribution under the plan.
The plan involves new financings in the form of a $110 million term
loan and a $125 million revolving line of credit. Geneva, along
with Citicorp USA, filed an application on Jan. 31 for a U.S. government
loan guarantee under the Emergency Steel Loan Guarantee Program. The
application sought an 85 percent guarantee for the $110 million term
loan incorporated into the plan. The Emergency Steel Loan
Guarantee Board extended an offer of guarantee to Citicorp USA on June
30, which it recently confirmed.
Thermatrix Announces Filing of
Reorganization Plan
Thermatrix Inc. yesterday announced that a reorganization plan has been
filed with the U.S. Bankruptcy Court in the Central District of
California, according to a newswire report. The effort is a
reorganizing plan by Thermatrix and a liquidating plan by Wahlco Inc.
and Wahlco Engineered Products Inc. (WEP). It was proposed jointly
by the debtors-in-possession (DIP) and the Official Committee of
Creditors Holding Unsecured Claims.
Motions to sell the assets of Wahlco and WEP have been filed with the
court and it is expected that the transactions will be completed by Dec.
31 and Jan. 31, respectively. A hearing on the adequacy and
feasibility of the disclosure statement plan is scheduled for Dec.
20. The effective date of the proposed plan is anticipated to be
Feb. 28. Thermatrix is a refining, chemical, pharmaceutical, pulp
and paper, and industrial manufacturing company.
Metal Management Announces Completion of
First Restructuring Step
Metal Management Inc., one of the nation's largest full-service scrap
metal recyclers, yesterday announced that it filed a chapter 11 petition
on Nov. 20. The financial restructuring contemplates the
conversion of all of the company's $180 million of senior subordinated
notes into common stock representing a 99 percent ownership interest in
the restructured company. The conversion of this debt will
substantially strengthen the Chicago-based company's capital structure
and result in the elimination of $18 million of annual interest
expense. The remaining one percent of the company's common stock,
together with warranty to acquire an additional 7.5 percent of the
restructured company, will be issued to the company's existing common
and preferred stockholders.
Metal Management also indicated that in connection with its chapter
11 filing petition, it obtained several important first day motions,
which will allow it to continue to operate in the ordinary course of
business during the restructuring process. In particular, the company
indicated that it had obtained interim court approval of a $200 million
post-petition credit facility among the company and its senior
lenders. Metal Management also indicated that it had received
court approval of its request to continue to pay the pre-petition claims
of its suppliers of scrap metal, subject to the agreement of these
suppliers to continue to provide, and in some cases, reestablish credit
support to the company.
Family Golf Seeks To Replace Mgmt With Zolfo Cooper Team
Family Golf Centers Inc. (FGCIQ), its creditors' committee and lenders
said they believe that insufficient progress has been made in correcting
the company's operational and financial problems and so they want to
retain Zolfo Cooper Management LLC and its professionals to run the
company. Apart from seeking court approval of a management agreement
with Zolfo Cooper and consulting agreements with Chang and Thampi,
Family Golf, operator of golf, ice skating and family entertainment
centers, is seeking court authorization to amend its
debtor-in-possession financing agreement to resolve a default under
it.
Courtesy of
href='http://www.fedfil.com/bankruptcy/developments.htm'>The Daily
Bankruptcy Review Copyright © November 22,
2000.
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