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FTC Permits Restricted Sale of Toysmart Customer Data
The Federal Trade Commission said Friday it has reached a settlement
with
defunct Internet retailer Toysmart.com Inc., permitting the sale of its
confidential customer list only under 'very limited circumstances,'
according to a Reuters report. The FTC voted 3-2 that the list may be
sold
together with the rest of the Web site, but only to a buyer in a related
market who agrees to abide by Toysmart's privacy policy. The agreement
also
settles new charges filed Friday alleging that Toysmart collected
personal
information from children under the age of 13 without parental consent.
A
court must approve the agreement after a bankruptcy sale is completed
next
week. It also settles new charges filed Friday alleging that Toysmart
collected personal information from children under the age of 13 without
parental consent. The FTC sued the Waltham, Mass.-based company on July
10,
charging that the company violated a confidentiality agreement with its
customers when it attempted to sell its customer database as part of
bankruptcy proceedings.
Disney, which has lobbied against stronger privacy laws, also issued a
statement saying it was satisfied with the settlement. Disney offered
earlier this month to buy the customer database and ``retire'' it, but a
spokeswoman said she was not sure if Disney's bid would be allowed under
the
terms of the pact with FTC. Toysmart is also required to destroy all
information collected from children under 13 without parental consent,
the
first company to be prosecuted under a new federal law that took effect
in
April.
The Cerplex Group, Inc. Files Chapter 11
The Cerplex Group, Inc. announced Friday that it has filed a response
consenting to the involuntary chapter 11 petition filed against it on
June
20 in the United States Bankruptcy Court for the District of Delaware,
according to a newswire report. Certain Cerplex's bondholders filed the
involuntary petition after Irvine, Calif.-based hardware service
outsourcing
company failed to make interest and principal payments due on April 17.
Also on Friday, Cerplex announced that a wholly owned subsidiary,
Cerplex,
Inc., has entered into a definitive agreement to sell selected elements
of
its repair business to Teleplan Holdings USA, Inc. As a condition of
closing
the transaction, Cerplex Inc. will file for voluntary chapter 11 and
will
seek approval for the sale of assets from the U.S. Bankruptcy Court.
Bankrupt REIT Criimi Mae Settles With Citigroup Units
Real estate investment trust Criimi Mae Inc. today said it reached
settlement agreements with three units of Citigroup Inc, which had
objected
to Criimi Mae's second amended bankruptcy disclosure statement,
according
to a Reuters report. Salomon Smith Barney Inc., Citicorp Real Estate
Inc. and
Citicorp Securities Inc. filed objections to Criimi Mae's reorganization
plan on April 25. The Rockville, Md.-based company filed for bankruptcy
in
1998.
Criimi Mae will pay the principal and interest on some bonds and
principal
and expenses on a loan provided by Citicorp Real Estate. It will also
pay
$4
million to Salomon for all remaining claims. Once the settlement is
completed, all outstanding litigation will be dismissed, the company
said.
Since filing for bankruptcy, Criimi Mae said it has suspended its loan
origination, loan securitization and acquisition businesses
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