class=MsoNormal>Lott
Introduces
"Clean"
Omnibus
Bankruptcy Bill
Sen.
Majority
Leader Trent
Lott (R-Miss.)
on Friday placed
S. 3046
on the Senate
calendar.
The bill,
introduced the
day before by
Lott, is
virtually
identical to
H.R. 833/S. 625
as passed
by the Senate on
Feb.
2, with the
exception
of provisions
increasing
the minimum wage
and adding
business tax
breaks. These
provisions,
which contributed
to the inability
of the
Senate to get to
a formal
conference with
the House,
are being dealt
with separately
in the last days
of the
Congress. The
new bill
is a
"placeholder"
on the calendar,
should
an agreement be
reached
with the Clinton
administration
on how to
proceed on the
legislation. The
new bill
does not reflect
the work
of the so-called
"shadow
conference"
between
the House and
Senate.
For example, the
Lott
bill includes
the Schumer
abortion clinic
amendment
as passed by the
Senate.
Negotiations are
reportedly
continuing with
the administration.
Congress is
scheduled
to adjourn on or
about
Oct. 6.
style='mso-bidi-font-size:10.0pt'>
The
full text of the
bill
is available at
the home
page of ABI
World. Sens.
Paul Wellstone
(D-Minn.)
and Jerrold
Nadler (D-N.Y.)
will have a
press conference
today to renew
their opposition
to the
bankruptcy overhaul
efforts.
class=MsoNormal>If
Congress ends
this session
without
finishing the
bankruptcy bill,
the process
will have to be
started
against next
year with
a new Congress
and President.
Many in
Washington say
that alone gives
Republicans
incentive to
modify their
positions on the
bankruptcy
bill, given the
tight
race they have
in the
House and for
the presidency
in November’s
elections.
And if Democrats
regain
control of the
House,
Nadler would
chair the
House Judiciary
subcommittee
with
jurisdiction over
the issue.
Nadler has
said in the past
that
there is no way
he would
bring up
anything close
to the
Republican plan
once he’s at the
helm
of that
subcommittee.
class=MsoNormal>General
Cinema Stock
Continues
to Drop;
Bankruptcy Still
an
Option
General Cinemas
said yesterday
they are
considering
bankruptcy
reorganization,
blaming
losses on bad
investments
and competition,
according
to a newswire
report.
This second
announcement
comes as company
stock
fell 37 percent,
or $1.81
a share, to
$3.13 in midday
trading
yesterday. The
shares have lost
64 percent
of their value
since Thursday,
when they closed
at $8.75.
The Newton,
Mass.-based
company first
announced
its options last
Friday.
class=MsoNormal>General
Cinemas, which
operates
130 movie
theatres with
more than 1,000
screens
in 23 states,
said it
has enough cash
and investment
income to cover
its bills
for the next 12
months.
But it said it
would limit
new lease
commitments
and investments
and that
it was
considering a variety
of
"strategic alternatives,"
including
bankruptcy.
Loews Cineplex
Entertainment
Corp., which
operates
2,967 screens in
385 locations,
reported
dropping revenues
earlier this
month and
warned it might
default
on its debt.
United Artists
Theatre Co.,
Edwards Cinemas
and Carmike
Cinemas have
all filed for
bankruptcy
this year.
class=MsoNormal>ICG
Extends Freefall
After
CEO Quits
Embattled ICG
Communications
Inc., which
sells telephone
and Internet
services
to businesses,
said yesterday
its chief
executive and
two board
members resigned,
and analysts
said a bankruptcy
filing or
outright sale
might be in
ICG's future,
according to a
Reuters
report. Carl
Vogel, who
became chief
executive
just four weeks
ago, and
IGC board
members Gary
Howard and
Thomas Hicks
all resigned.
The company
gave no reason
for the
resignations.
"We
were all
blindsided by
the
announcements,"
said Roger Metz,
a research
analyst at Janco
Partners,
a
telecommunications-focused
investment bank
in Greenwood
Village, Colo.
"There
are serious
operational
issues,
including the
ability to keep
their
networks running
and provide
services to
their customers.''
ICG's stock,
which tumbled
58 percent on
Monday,
fell another 40
percent
early yesterday
afternoon,
trading on
Nasdaq at $1,
down 21/32. It
has fallen
74 percent since
Friday
and 95 percent
this year.
The New
York-based company's
bonds also slid.
Traders
said the 13.5
percent
senior discount
notes
of unit ICG
Holdings Inc.
that will mature
in September
2005 were bid
yesterday
at 22 cents on
the dollar,
down from 55
cents on
Friday. The
company warned
it may default
under a
$200 million
bank loan
unless it
obtains waivers,
and was engaging
financial
institutions to
explore
"strategic
options."
style='mso-special-character:line-break'>
class=MsoNormal>Metrocall
Submits Fully
Funded Proposed
Terms for
Acquisition
of
PageNet
Metrocall Inc.
announced
yesterday that
it has
received a total
of $337.5
million in
binding financial
commitments in
connection
with its request
to the
bankruptcy court
for permission
to submit a
competing
plan proposal to
acquire
Paging Network
Inc., according
to a newswire
report.
In addition, the
Alexandria,
Va.-based
Metrocall has
obtained
commitments from
certain members
of its
existing senior
secured
bank group and
others
to refinance
Metrocall's
existing bank
facility
as part of a new
credit
facility that
would consolidate
Metrocall's and
PageNet's
bank facilities
and provide
liquidity for
the combined
entity.
Metrocall is one
of the largest
wireless
data and
messaging companies
in the United
States.
class=MsoNormal>Pathmark
Completes
Reorganization,
Emerges from
Bankruptcy
Pathmark Stores
Inc. yesterday
emerged from
chapter 11
bankruptcy
protection
as a reorganized
public
company with its
nearly
$1 billion in
bond indebtedness
eliminated,
according
to a newswire
report.
Pathmark also
closed on
its previously
announced
$600 million
exit financing
with a group of
financial
institutions led
by The
Chase Manhattan
Bank.
Pathmark, a
regional supermarket
company
operating 137
stores primarily
in the
New York/New
Jersey and
Philadelphia
metro areas,
filed its
pre-packaged
reorganization
plan on
July 12 in the
U.S. Bankruptcy
Court in the
District
of Delaware. The
plan
will result in
Pathmark's
bondholders
receiving
100 percent of
Pathmark's
common stock and
warrants
to purchase
additional
shares.
class=MsoNormal>Pro
Air Forced to
File Chapter
11
Pro Air
yesterday announced
that it filed
for chapter
11, citing a
recent Federal
Aviation
Administration
(FAA) order that
required
the carrier to
suspend
its operations,
according
to a newswire
report.
The
Detroit-based Pro
Air said it
believes that
the suspension
was based
on erroneous and
outdated
information and
will be
overturned on
appeal.
Until the FAA
issue has
been resolved,
current
Pro Air ticket
holders
should visit
href='http://www.proair.com'>www.proair.com
for information
on exchange
travel on
Northwest Airlines
and Spirit
Airlines. Ticketholders
desiring a
refund instead
of exchange
travel will
have their
credit cards
automatically
credited
72 hours after
the date
of their Pro Air
reservation.
"We are
taking chapter
11 action at
this point
to preserve our
existing
resources,
including our
fleet of
aircraft,"
said Craig
Belmondo, president
and chief
operating officer
of Pro Air.
"We are
confident that
we will
be resuming
scheduled
operations
following completion
of the appeals
process,
and we need to
be in the
position to
recommence
scheduled
operations on
an expedited
basis."
class=MsoNormal>Activist
Files Bankruptcy
Papers
on Behalf of
Church
Civic
activist and
former Kansas
City Council
member Richard
C. Tolbert
has once again
filed a
federal
bankruptcy petition,
this time acting
on behalf
of a church that
once
operated out of
his home,
according to
style='mso-bidi-font-style:
normal'>The Kansas City Star. Tolbert has filed for personal
bankruptcy seven
times since
1997, but
his most recent
filing
on Friday seeks
court
protection for
the assets
of the All
Denominational
New Church, for
which
Tolbert serves
as minister,
president and
general
manager. In two
previous
personal
bankruptcy filings,
Tolbert said he
and the
church were one
and the
same. But a day
before
the church filed
for bankruptcy
reorganization,
Tolbert
incorporated the
church
with the state
as a nonprofit
organization.
Each of
Tolbert's
previous petitions
was dismissed
after he
failed to take
steps to
reorganize his
finances
under chapter
13.
