color='#000000'>Senate
May not Attach Bankruptcy
Legislation
to Electronic Signature
Legislation
color='#000000'>Senate
leaders may run into trouble
with House
members if they attempt to
attach the
bankruptcy overhaul
legislation (S.
625/H.R. 833) to the
electronic signature
bill (S. 761) as they continue
on a
final plan this week,
according to CQ
Monitor. Senate Majority
Leader
Trent Lott (R-Miss.) said he
wants to
complete the signature bill
before the
May recess, which begins on
May 27.
Rep. W.J. "Billy"
Tauzin (R-La.),
Chair of the House Commerce
Subcommittee
on Telecommunications Trade
and Consumer
Protection, said, "Over
my dead
body," will the
bankruptcy legislation
be attached to the signatures
bill.
color='#000000'>In
April, Lott said that he would
attempt
to attach the bankruptcy
overhaul legislation
to the signatures bill. Last
week, Senate
Minority Leader Thomas Daschle
(D-S.D.)
said he would accept that if
it was
the only vehicle to to get
bankruptcy
passed. Several Republican
senators,
including Sen. Phil Gramm
(R-Texas)
said the decision is up to
Lott.
color='#000000'>
style='color:black'>Recom Managed Systems Plans to File Chapter
7
style='color:black'>
The Board of Directors
of Recom
Managed Systems Inc.,
Sacramento, Calif.,
voted that the company should
file chapter
7 in the Eastern District of
California,
according to a newswire
report. Company
President and CEO Jack
Epperson said
that the filing became
necessary after
the company incurred
substantial debt
in anticipation of receiving
investor
funding from a consortium of
European
investors, who had agreed to
fund up
to $2 million, but the company
actually
received $124,000. The company
said
it plans to file a formal
bankruptcy
petition with the district
court this
week.
color='#000000'>
style='color:black'>CWT Specialty Stores Announces Bankruptcy Sale of
Lease
style='color:black'>
CWT Specialty Stores
Inc., New
York, has filed a Motion with
the U.S.
Bankruptcy Court for the
Southern District
of New York for an order
authorizing
the assumption and assignment
of its
unexpired lease with respect
to its
store located at The Nod Brook
Shopping
Center in Avon, Conn., to
Michaels Stores
Inc., according to a newswire
report.
The purchase price is
$25,000.00 to
be paid at closing, and the
sale is
subject to a higher offer at a
hearing
on Friday at 9:30 a.m. before
the
style='mso-bidi-font-weight:normal'>Hon. Jeffry H. Gallet. Any
parties interested
in obtaining more information
regarding
the sale or regarding bid
procedures
and becoming a "qualified
bidder"
please contact DJM Asset
Management
at (631)
752-1100.
color='#000000'>
style='color:black'>Bankrupt Fruit of the Loom Reports First Quarter
Results
style='color:black'>
Fruit of the Loom Ltd.,
reported
on Friday sales of $374.9
million for
its first quarter ended April
1 compared
to $370.6 million for the
first quarter
of 1999, according to a
newswire report.
Fruit of the Loom, the
Chicago-based
manufacturer of family
apparel, filed
a voluntary chapter 11
petition on Dec.
29 and is currently working
through
its restructuring in
bankruptcy proceedings.
Retail products recorded sales
of $195.7
million for the first quarter
of 2000,
compared to $185.2 million in
1999.
"We have established a
solid base
for Fruit of the Loom's
reorganization
and ultimate emergence from
bankruptcy,”
said CEO Dennis Bookshester.
“Significant
progress has been made in
controlling
manufacturing spending. The
critical
initiatives that we put in
place during
the fourth quarter of 1999
have begun
to positively impact the
company's cash
flow…demand for our products
remains
strong, manufacturing trends
are positive
and the company's partnership
with its
customers and suppliers is as
solid
and important as ever."
Fruit of
the Loom obtained final
debtor-in-possession
approval at the end of
January, with
a borrowing capacity of $239.6
million
as of April
22.
color='#000000'>
style='color:black'>U.S. Court Grants Superior National Motion Assured
Employee
Security
style='color:black'>
Superior National
Insurance Group
Inc., Oak Park, Calif.,
appeared before
the U.S. Bankruptcy Court
Friday morning
to plead for its emergency
petition
to assure that the salaries
and benefits
of its employees were paid on
time and
in full on Friday, according
to a newswire
report. Employees of Superior
National
Insurance Group Inc., Business
Insurance
Group Inc., SN Insurance
Services Inc.
and SN Insurance
Administrators Inc.
were named in the emergency
petition,
which was granted by the
court. "Superior
National continues to place
the highest
priority on protecting our
employees
after Wednesday's chapter 11
filing,”
said President and Chief
Executive Officer
J. Chris Seaman. “We are
pleased that
the California Department of
Insurance
appeared at the hearing and
chose not
to contest our motion.”
Previously,
Superior National announced
that it
sought chapter 11 protection
in a petition
filed on Wednesday, and that
the California
Department of Insurance seized
the assets
and operations of SNTL's four
California
domiciled insurance
subsidiaries on
March
3.
color='#000000'>
style='color:black'>Court Grants Einstein/Noah Bagel Corp. Interim
Approval For
$31 Million DIP
Financing
Einstein/Noah Bagel
Corp., Golden,
Colo., announced today that it
has received
bankruptcy court approval for
interim
use of $31 million of the
company's
$36 million in
debtor-in-possession
(DIP) financing from the its
existing
bank lenders, led by Bank of
America
N.A., according to a newswire
report.
Authorization for the full $36
million
will be considered by the
bankruptcy
court on May 22. In addition,
the court
has approved other first-day
orders
that will allow ENBC to
continue to
provide salaries, wages and
benefits
to all employees and to pay in
full
its regular trade vendors who
continue
to provide goods and services
for all
pre-petition obligations in
the ordinary
course of business. "We
are extremely
pleased to have received
approval of
these items as it assures the
continuation
of our business and
demonstrates our
commitment to our vendors and
employees,"
said the Chief Executive
Officer Robert
Hartnett. Einstein/Noah Bagel
Corp.,
which operates 465 retail
bagel stores
in 29 states and the District
of Columbia,
and its majority-owned
operating subsidiary,
Einstein/Noah Bagel Partners
L.P., filed
chapter 11 petitions in the
U.S. Bankruptcy
Court in Phoenix on
Thursday.
color='#000000'>Texas
Anti-Abortion Group Insolvent
style='color:black'>A prominent
Dallas anti-abortion group has
closed
its doors amid accusations
that its
president used organization
funds for
personal expenses, the
Associated Press
reported. Bill Price, former
head of
Texans United for Life, has
denied misusing
the money and says he left the
group
in February without being
asked; no
charges have been filed.
Texans United
vice president Kyleen Wright
told The Dallas Morning News that the group was insolvent, and
closed its
Irving, Texas headquarters in
March.
“We did find a problem with
unauthorized
use of funds by Mr. Price,''
she said.
“It's very disappointing and
very, very
shocking.'' Wright said that
the group's
annual revenues have been as
high as
$500,000, but would not say
how much
money the group believes was
misused.
Price has blamed the
accusations on
a disagreement in job-related
benefits,
including health care and
automobile
reimbursement. “I'm truly
saddened they
chose to characterize it this
way,''
he said. Wright said the group
has no
plans to pursue criminal
charges against
Price or file for
bankruptcy.
color='#000000'>
style='color:black'>Mexican Congress Passes Bank Lending
Reform
style='color:black'>
Yesterday, Mexico's
Senate passed
legislation reforming the
country's
rules on loan collateral, part
of a
package of new laws aimed at
reviving
bank lending, according to
Reuters.
Following a vote on Friday in
the lower
house, the Senate approved the
reforms
to the Federal Law on Credit
Institution
Guarantees despite opposition
from lawmakers
from the leftist Party of the
Democratic
Revolution (PRD), who said the
laws
were tilted in favor of the
country's
banks. The reforms came about
as a result
of the banking crisis
triggered by the
1994 peso devaluation, which
hit the
banks with many bankruptcies,
and are
designed to shorten the
process of banks
foreclosing on borrowers'
collateral
pledges or properties when
they default
on a
loan.
color='#000000'>
style='color:black'>Ex-Mrs. America Charged With Bankruptcy
Fraud
style='color:black'>
Former Mrs. America Jill
Scott
Chance, Paradise Valley,
Ariz., was
charged with fraud for
allegedly pretending
to be single and failing to
list $100,000
in jewelry as assets when she
filed
for bankruptcy, according to
the Associated
Press. Chance, who was named
Mrs. America
in 1991, was indicted Friday;
her 1996
bankruptcy filing resulted in
the discharge
of nearly $330,000 in debt she
had amassed
in California. Federal
prosecutors said
Chance filed using her maiden
name but
was married to Phoenix
auto-glass tycoon
C. Richard Chance, although
they have
since divorced. According to
the indictment,
Chance also did not state she
was a
secretary in her husband's
firm. Authorities
also indicted Chance's San
Diego attorney,
Gary A. Quackenbush, alleging
he knew
the bankruptcy petition was
fraudulent.
Previously, the Mrs. America
pageant
sued her for concealing that
she was
separated at the time, and won
a $100,000
judgment.
color='#000000'>And
Also from Hollywood…
style='color:black'>Former
"Diff'rent Strokes"
star Gary
Coleman, who had filed for
bankruptcy,
received a check for $10,000
in New
York on Friday that was raised
through
an Internet Web-a-thon auction
of some
of his personal belongings on
UGO Networks
to help him out of bankruptcy,
according
to the Associated Press.
Coleman works
as an entertainment columnist
and videogame
reviewer for the
company.
align='center'>
color='#000000'>Graham-Field
is Exploring Going-Concern of
Reorganization
Graham-Field Health Products
Inc. (GFIHE)
says in recent court filings
that its
management is exploring
several alternatives
to maximize value, including a
reorganization
of the company on a
going-concern basis.
The Bay Shore, N.Y.-based
health-care
product manufacturer's prior
management
had decided to pursue the sale
of each
of the company's individual
businesses
and liquidate the parts that
couldn't
be sold. Consequently, the
company is
seeking bankruptcy court
approval of
a 120-day extension of its
exclusive
period to sponsor a chapter 11
reorganization
plan.
style='color:black'>Courtesy
of
href='http://www.fedfil.com/bankruptcy/developments.htm'>The Daily
Bankruptcy
Review Copyright © May
1, 2000.
color='#000000'>
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for visiting Today's
Bankruptcy Headlines.
New articles are posted here
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day.
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