Fort Mill, S.C.-Based Aircraft Maintenance Firm
to File for Bankruptcy
American Aircarriers Support Inc. (AAS) announced Friday that it will
file for chapter 11 bankruptcy protection in an effort to refinance the
company, according to a newswire report. The filing gives the Fort Mill,
S.C.-based company temporary relief from debt payments as well as
expensive contracts. AAS, a maintenance, repair and overhaul service
company to the airline industry, listed $131.4 million in assets and
$102.5 million in debt. In June, AAS was granted a loan extension after
failing to comply with requirements of its $100 million credit agreement
with Bank of America. In August, Pegasus Aviation Inc., which leases
more than 200 aircraft worth $3 billion to airlines around the world,
announced it would spend an undisclosed amount of money on the company
in return for a minority share of stock to assist in refinancing.
BankruptcyData.com Announces Expanded Business Bankruptcy
Coverage BankruptcyData.com, an Internet site that provides in-depth
information on major bankruptcies, yesterday announced the addition of a
daily list of business bankruptcy filings from selected bankruptcy
courts, according to a newswire report. The current list contains more
than 200 companies that have filed bankruptcy in a trailing 30-day
format. Visitors to the site now have access to the date a company has
filed, where they filed and the attorney contact information. The
Boston-based site also offers free historical information on
pre-negotiated chapter 11 filings and detailed information on every U.S.
Bankruptcy Court, including links to the court's web sites.
Vencor Inc. Files Amended Reorganization Plan
Vencor Inc. yesterday filed an amended reorganization plan with the U.S.
Bankruptcy Court in New York, according to a newswire report. The
company said it also filed an amended disclosure statement, which, if
approved by the court, will be used to solicit approval of the plan from
shareholders. The amendment adds terms of civil and certain
administrative claims with the U.S. government, though the settlement
remains subject to government approval. Federal Filings Business News
reported on Sept. 29 that the health care services company would pay the
government a total of $25.9 million. Vencor filed chapter 11 on Sept.
13, 1999.
A trio of creditors joined together in August to file the involuntary
bankruptcy petition against NFC, the Halfmoon, N.Y.-based mortgage
lender that closed its doors in December. The petition said that the
three — SFX Sports Group Inc. of New York City, First American
Credco of Poway, Calif., and First American Flood Data Services of
Austin, Texas — were seeking more than $600,000 in claims.
NFC sought to dismiss the involuntary bankruptcy petition, claiming it
was attempting to go back into business and that it had a significant
number of assets that would not benefit either side if put on the
auction block.
Daewoo Motor Granted Last-minute Delay on Debts
South Korea's third largest automaker teetered on the brink of
bankruptcy today as creditors of Daewoo Motor gave unions until early
Wednesday to agree to job cuts that are necessary to rescue funds from
banks, according to a Reuters report. The brief reprieve reflected the
creditors' commitment to staving off the automaker's bankruptcy. Korea
Development Bank (KDB) and other creditors are in talks to sell Daewoo
Motor and related firms to General Motors and its partner Fiat.
Daewoo Motor has faced an uncertain future since an expected sale to
U.S. automaker Ford suddenly collapsed in mid-September. KDB President
Uhm Rak-yong Uhm said as of today, creditors had pumped two trillion won
in loans into Daewoo Motor since banks stepped in to rescue the firm in
August 1999 and placed it and 11 other units of the Daewoo Group on a
massive debt-rescheduling program.
'We will not give up hope until the last minute and do our best to avoid
a catastrophe,' he said, indicating that talks with labor officials
would go on into the night. Daewoo failed to pay 87.5 billion won
($77.29 million) in debts that matured on yesterday and today, but Uhm
said it would be given until tomorrow morning before the banks would
consider it insolvent.
Judge Upholds $145 Billion Smokers' Award
A record $145 billion verdict won by Florida smokers was upheld
yesterday by Circuit Judge Robert Kaye who also widened the scope of the
lawsuit to cover more people, according to the Associated Press. Judge
Kaye concluded that the award was reasonable and did not violate a
Florida law that prevents a punitive verdict from bankrupting a
defendant.
'The award is in keeping with the degree of wrongful conduct without
sending the defendant into bankruptcy,' Kaye said. The judgment opens
the door to what is expected to be a prolonged appeals process in state
courts by the five largest cigarette companies. The industry must post a
$100 million bond to launch an appeal-and tobacco attorneys immediately
promised to do so. They've argued that the companies could afford to pay
only $150 million to $375 million, and that they would be put out of
business if the award was much higher.
Philip Morris Vice President William Ohlemeyer called the order improper
and inappropriate. 'Under Florida law, juries cannot award damages that
would financially cripple or destroy a company, and no industry in the
world can pay a $145 billion punitive damage award,' he said. The
defendants are Philip Morris, which was ordered to pay $73.96 billion;
R.J. Reynolds, $36.28 billion; Brown & Williamson, $17.59 billion;
Lorillard, $16.25 billion; Liggett Group, $790 million; and the
industry's defunct Council for Tobacco Research and Tobacco Institute.
Martin Feldman, a tobacco stock analyst with Salomon Smith Barney, said
he was surprised by Kaye's decision to keep the award intact. 'A brief
perusal of the companies' balance sheets and accounts would indicate
that they simply cannot pay $145 billion on a single payment,' he
said.
