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House Passes Three-month Chapter 12 Extension Bill
Yesterday, the House of Representatives passed, by voice vote, a
three-month extension of chapter 12 until Oct. 1. The bill, H.R. 4718,
was introduced by Rep. Nick Smith (R-Mich.). Chapter 12 will expire on
July 1 unless an extension is passed by both the House and Senate and
signed into law by that date. A permanent extension of chapter 12 is
contained in the pending, but stalled, Bankruptcy Reform Act of 2000.
House Democrats supported yesterdays action on H.R. 4718, but
called the bill adequate, urging instead a permanent extension that is
unattached or made hostage to the controversial consumer bankruptcy
reform bill. A majority of House Democrats oppose that bill (H.R. 833/S.
625). Chapter 12 was first enacted in 1986 and has been reauthorized
several times since then. Since 1998, it has been extended for a series
of short terms from three to six months at a time.
American Nortel Communications Invests in CYNET
CYNET Inc., a leading provider of convergent communications solutions,
announced June 22 the closing of additional financing with a $750,000
investment from American Nortel Communications Inc., according to a
newswire report. Since January, CYNET has raised $6.1 million in working
capital from institutional investors. This recent installment is in
addition to the $2.15 million equity investment led by Augustine Fund
L.P. and the conversion of $5.6 million of mezzanine debt to equity
announced last week.
Bankruptcy Creditors' Service Offers Newsletter Tracking Genesis
Reorganization
Bankruptcy Creditors' Service Inc. announced yesterday the publication
of Genesis/Multicare Bankruptcy News, which will track the
chapter 11 reorganization undertaken by Genesis Health Ventures Inc.,
The MultiCare Companies Inc., and their hundreds of debtor-affiliates
before the U.S. Bankruptcy Court for the District of Delaware, according
to a newswire report. The first issue of Genesis/Multicare Bankruptcy
News includes company background information, a summary of Genesis's
30-day cash budget, an in-depth review of the new $250 million DIP
financing facility led by Mellon Bank N.A, detailed information
extracted from the debtors' chapter 11 bankruptcy petitions, lists of
the debtors' largest unsecured creditors, bank lenders and bondholders,
and a calendar of the key dates and deadlines in the debtors' chapter 11
cases. To obtain a free copy of the first issue of the newsletter, visit
TARGET='window2'>http://www.bankrupt.com/genesis.txt.
Kansas House Candidate Filed for Bankruptcy in 1994
Gary Morsch, an Olathe, Kan. physician running for the U.S. House of
Representatives, filed for personal bankruptcy in 1994 after the
collapse of a health-care supply business, according to the Kansas
City Star. Federal court records show that in 1994, Morsch disclosed
debts of $2.2 million and assets of $319,000. In the final decree two
years later, the court accepted $1.9 million in claims filed by
creditors. Morsch said none of the 187 debts listed in bankruptcy
records was family-related, and instead were the result of a failed
business venture he undertook in the 1980s with four partners. His
campaign staff knew about the filing, he said, and decided 'not to make
a big deal out of it.' 'I told my family, and they accepted that,' he
said. 'I went into this (campaign) knowing that it was a rough game.'
Court Approves Cambridge Asset Sale to Meridian
Cambridge Industries, Madison Heights, Mich., announced yesterday that
the U.S. Bankruptcy Court for the District of Delaware in Wilmington has
approved the sale of its assets to Dearborn, Mich.-based Meridian
Automotive Systems Inc. for approximately $363 million in cash and the
assumption by Meridian of current and accrued liabilities, according to
a newswire report. This action clears the way for Cambridge and Meridian
to close the sale within the next few weeks. At that time, Meridian, a
leading supplier of front and rear end modules, signal lighting, console
modules, instrument panels and other interior systems, will assume
ownership of the purchased assets and the Meridian name will replace
Cambridge's name in all affected locations. Cambridge Industries, an
auto supplier and maker of plastic composite auto parts, has been
operating under bankruptcy protection since May 10, when the company
voluntarily filed chapter 11 to facilitate completion of the sale
process. A small core of Cambridge management will oversee completion of
remaining bankruptcy proceedings, including court-approved payments of
secured and unsecured debt to Cambridge creditors. The company expects
that most of the bankruptcy proceedings will be completed by the end of
the year.
NewStar Media Seeks Chapter 11 Protection
NewStar Media Inc. announced yesterday that it has filed a voluntary
petition for chapter 11 in the U.S. Bankruptcy Court for the Central
District of California, according to a newswire report. Voluntary
petitions and requests for joint administration were also filed on
behalf of seven subsidiaries and affiliates of the company. The
company's publishing division, which won Audie awards for one Audio
Literature and five Dove Audio audio books at the Audio Publishers
Association 5th Annual Audie Awards earlier this month, has had to
substantially curtail operations due to the company's shortage of
working capital. Chase, the company's bank, has consented to a limited
use of cash collateral pending further negotiation of
debtor-in-possession financing. NewStar Media is a diversified
entertainment company engaged in the publication of audio books, the
distribution of audio books on its Internet site, AudioUniverse.com and
the production and distribution of television programming.
Winning Bid for Daewoo Motors Could Be Worth $8 Billion
Analysts said today that the winning bid for Korea's Daewoo Motors could
be worth up to $8 billion, according to Reuters. 'If any company wants
to build auto plants equivalent to Daewoo's facilities today, it should
spend more than $10 billion,' said Richard Pyo, an analyst at Credit
Suisse First Boston. 'Daewoo Motor can be the springboard for the top
automakers' Asian ambitions. Now that Hyundai Motor and DaimlerChrysler
are coming in aggressively in a consortium, the winning price will be
between $6 to $8 billion.' But Han Kum-hee, auto analyst at Merrill
Lynch Korea, put the price between $5 and $6 billion since the auction
is offering distressed assets. The new firm would own and operate the
South Korean assets of unlisted Daewoo Motor and its sister firm
Ssangyong Motor Co , as well as the majority of their international
operations. Daewoo Motor, which has 11 overseas plants and 25 overseas
sales companies, was rescued from impending bankruptcy along with 11
other Daewoo Group firms last July by creditors who provided emergency
funds and took control of the companies, assessing Daewoo's liabilities
at $17.9 trillion won (US$16 billion) and assets of 11.8 trillion won.
Yesterday, five leading automakersGeneral Motors, Ford Motor,
DaimlerChrysler AG, Fiat SpA and Hyundai Motorsubmitted
non-binding proposals in the first stage of the auction. The auction
office said it would choose one or two candidates for the second stage
of binding bid proposals before ailing Daewoo Motor was finally sold by
September.
Samuel Manu-Tech Group Acquires WorldClass Processing
Assets
Samuel Manu-Tech Inc., Toronto, announced yesterday that its Samuel
Steel Pickling Group has acquired the business and assets of WorldClass
Processing Inc., Ambridge, Pa., a toll-processor of hot rolled coils of
carbon and stainless steel, according to a newswire report. WorldClass
has been operating as a debtor-in-possession since December 1998, when
it filed for chapter 11. Samuel Manu-Tech Inc. produces a wide range of
steel and related industrial products and services from locations in
Canada, the United States and the United Kingdom.
Court OKs Singer
Disclosure Statement Regarding Amended Chapter 11 Plan
Singer Co. (H.SGR) Thursday won court approval of its disclosure
statement
for its first amended joint plan of reorganization. Judge Burton R.
Lifland
of the U.S. Bankruptcy Court in Manhattan overruled any objections to
the
disclosure statement that weren't withdrawn or resolved, according to
the
order. The amended plan, filed Thursday, provides for changes to the
sewing
machine manufacturer's original plan, filed on May 25, that try to
address
several of the objections filed against the disclosure statement,
according
to a motion filed Wednesday by Singer.
ContiFinancial Gets Nod To Sell Unit's Servicing Business
ContiFinancial Corp. (CFNIQ) has won court authorization to sell the
servicing business and related assets of its unit ContiMortgage Corp. to
Fairbanks Capital Corp., despite a substantially similar competing
proposal
by North American Mortgage Co. Following a hearing Wednesday, Judge
Arthur
J. Gonzales of the U.S. Bankruptcy Court in Manhattan found that
Fairbanks
made the 'highest and best offer' for the assets.
Courtesy
of
href='http://www.fedfil.com/bankruptcy/developments.htm'>The Daily
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Review Copyright © June 27,
2000.
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