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Cuomo Joins Celebration of Flushing Hospital's Financial
Recovery
U.S. Housing and Urban Development Secretary Andrew Cuomo yesterday
joined a celebration of Flushing Hospital's 'clean bill of fiscal
health' just two weeks after HUD helped the Queens, N.Y., hospital
emerge from chapter 11 proceedings, according to a newswire report. The
celebration marks the end of a two-year effort by partnerships of many
organizations and HUD to prevent the closure of Flushing Hospital and
the loss of 1,400 jobs. 'The emergence from bankruptcy, especially in
such a short time frame, is a powerful signal to the health care
industry and to the local community that Flushing Hospital Medical
Center's turnaround is real,' said David P. Rosen, president and CEO of
the hospital.
HUD had insured the busy hospital's $28 million mortgage since 1980
under its §242 program, which currently insures 70 loans with a
total value of $4.4 billion in 11 states and Puerto Rico. The hospital
filed for chapter 11 protection in June 1998, and a year later had
unpaid claims totaling roughly $80 million. In March 1999, an interim
management plan approved by the bankruptcy court went into effect just
days before the hospital's scheduled closing, which called for Jamaica
Hospital Medical Center, a division of MediSys Health Network, to assume
management of the hospital. That decision, along with the release of
$2.75 million from a HUD reserve fund, has been credited with helping to
turn the hospital around. 'Healthy hospitals help keep both the families
and the neighborhoods around them healthy,' said Cuomo. 'I'm pleased
that HUD, unions and management succeeded in rescuing Flushing Hospital
from bankruptcy and restoring it to financial health.'
Oregon Potato Files for Bankruptcy
Oregon Potato Co., Portland, Ore., announced Wednesday it had filed for
chapter 11 protection in Portland just as farmers in eastern Oregon and
Washington are preparing to harvest their spring crop, according to the
Associated Press. Oregon Potato, which operates as Washington Potato Co.
in Warden, Wash., is one of the major producers of dehydrated potatoes
in the Columbia River Basin. 'I can't tell you how devastating it will
be for our town,' said Warden Councilman Raul Diaz. City officials also
say they are afraid the reorganization will fail, devastating the area's
already fragile economy. 'If they restart, the sigh of relief you hear
will be the potato industry,' said Dale Lathim, executive director of
Potato Growers of Washington in Othello, Wash. Only a few other
companies make similar products such as potato flakes, flour and frozen
diced potatoes used in soups, potpies and vegetable mixes. The company
said it had a commitment from General Electric Capital Corp. for up to
$2 million in advance financing and working capital of up to $10
million, but would not comment further.
DEN Files for Chapter 7 Liquidation
Digital Entertainment Network (DEN) has filed for bankruptcy court
liquidation, saying it owes more than $10 million to more than 200
creditors, according to a report from the L.A. Times. The
company's chapter 7 filing last week in Los Angeles had been expected
since the company closed its Santa Monica office last month. The filing
makes the company one of the highest-profile Internet firms to end in
bankruptcy. DEN created short videos for audiences in the 14- to
24-year-old range that could be watched over the Internet, and was
financially backed by investors including Chase Manhattan, Dell
Computer, Microsoft, Intel and NBC. The bankruptcy filing listed DEN
with assets of between $1 million and $10 million, but DEN attorney
Ronald Leibow said the true amount is at the high end of that range.
The Havana Group Announces Phillips & King Plan
The Havana Group Inc., a direct marketer of tobacco products, announced
yesterday the confirmation of Phillips and King International Inc.'s
second amended plan of reorganization by the U.S. Bankruptcy Court for
the Central District of California, according to a newswire report.
Havana Group and P&K have agreed upon principal terms of sale through a
letter of intent agreement, where the Havana Group will formally acquire
the assets and business operations of P&K. Jerry Christensen, chief
executive officer and executive vice president of sales at P&K, said,
'We are pleased to have the bankruptcy issues behind us and very much
look forward to working with our new team in the Havana Group Inc.' P&K
is a California-based wholesale distributor of cigars, pipes, tobaccos
and smoking accessories.
CARA Collision's Bankruptcy Filing Strands Cars
CARA Collision & Glass, a high-profile chain of auto body shops, has
filed for bankruptcy, according to the St. Paul Pioneer Press.
The company listed debts of $9.8 million and assets of $9.5 million, and
its biggest creditors appear to be Minneapolis-based Marquette Capital
Bank, Marquette Leasing and paint company Sherwin Williams, which are
each owed approximately $1.5 million. 'Body shops in this area have been
generally in trouble,' said Michael Iannacone, the court-appointed
bankruptcy trustee overseeing the case. The company blames the recent
mild winters for leaving the auto body market with fewer damaged cars to
repair. Iannacone said that he and Marquette Capital Bank are close to
an agreement that would allow CARA customers to retrieve an undetermined
number of vehicles left at shops when they closed. The company operates
13 shops in Minneapolis/St. Paul, Duluth, Minn., and Milwaukee.
Keen Realty Announces Bankruptcy Sale of Hudson River
Property
A 76.6-acre parcel of Hudson River waterfront property in Kingston,
N.Y., has been put on the market and is being offered under a bankruptcy
sale through Keen Realty Consultants Inc., according to a newswire
report. The real estate firm, which specializes in the evaluation and
sale of real estate and leases in bankruptcies and workouts, was
retained by the debtor and the consolidated bankruptcy estate in its
chapter 11 bankruptcy proceedings. Inquiries regarding the sale should
be directed to Keen Realty Consultants Inc., 60 Cutter Mill Road, Great
Neck, N.Y., 11021, (516) 482-2700 or fax (516) 482-5764. You can also
e-mail
HREF='mailto:krc4@keenconsultants.com'>krc4@keenconsultants.com,
attn: Matthew Bordwin.
Court Approves $133M
Costilla Energy Sale To Louis Dreyfus
A bankruptcy court has authorized Costilla Energy Inc. to sell
substantially its oil and gas assets to Louis Dreyfus Natural Gas Corp.
for $133.3 million. Judge Ronald B. King of the U.S. Bankruptcy
Court in Midland, Texas, also authorized the oil and gas exploration
company to assume and assign certain contracts to Louis Dreyfus. On a
related note, the company is now seeking court approval to pay employee
retention payments within 3 business days of the sale closing. The court
on March 24 had authorized Costilla to make the retention payments to
employees who remained as of the
date of a plan of reorganization.
Courtesy
of
href='http://www.fedfil.com/bankruptcy/developments.htm'>The Daily
Bankruptcy
Review Copyright © June 16,
2000.
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