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Columbia Sportswear Completes Acquisition of
Sorel Brand
International outdoor apparel and footwear manufacturer
Columbia Sportswear Company® announced Friday that it received
approval from the bankruptcy judge of the Ontario Superior Court of
Justice to acquire the Sorel® brand, according to a newswire
report. Columbia, an outdoor apparel and footwear manufacturer, acquired
the Sorel trademark rights, associated brand names and other related
intellectual property rights for approximately $8 million in cash.
William H. Kaufman Inc., owner of the Sorel brand, recently began
bankruptcy proceedings. The company's assets, including inventory,
equipment and real property, were offered for sale individually or as a
group. The Portland, Ore.-based Columbia chose only to acquire the Sorel
brand.
EQK Sells Harrisburg East Mall at Auction to
Prudential
EQK Realty Investors announced Friday that the Harrisburg East Mall in
Harrisburg, Penn., its sole real estate asset, was sold in a bankruptcy
court auction on Sept. 21 to The Prudential Insurance Company of
America, according to a newswire report. Prudential, holder of the
mall's first mortgage debt, purchased the mall for a credit bid of $30
million.
The previously announced transactions with American Realty Investors
Inc. (ARI) and American Realty Trust Inc. (ART) are expected to close on
Oct. 2. Proceeds from the auction, the ARI/ART transactions and other
funds in the bankruptcy estate will be insufficient to permit any
distribution to EQK's shareholders. Upon the closing of the transactions
with ARI and ART, EQK will be wholly owned by ARI and ART.
Signal Apparel Company Files Chapter
11
Signal Apparel Company Inc. Friday announced that it filed chapter 11 in
the U.S. Bankruptcy Court for the Southern District of New York,
according to a newswire report. The company is currently in discussions
with its senior lender in connection with debtor-in-possession (DIP)
financing.
The New York-based company also announced that its senior lender has
declared it in default under the company's revolving credit, term loan
and security agreement with the senior lender and declared the company's
entire indebtedness with the senior lender immediately due and payable.
Signal Apparel is currently holding discussions with the senior lender
and other parties concerning its alternatives.
Vencor Receives Court Approval to Extend
Maturity of Its Debtor-in-Possession Financing
Vencor Inc. Friday announced that the U.S. Bankruptcy Court for the
District of Delaware has approved an amendment to the company's
debtor-in-possession (DIP) financing to extend its maturity until Oct.
31, according to a newswire report. The amendment also revises certain
covenants and permits the Louisville, Ky.-based company to file its
reorganization plan through Oct 31. The court had previously extended
Vencor's reorganization plan through Sept. 29. Vencor and its
subsidiaries filed voluntary petitions for reorganization under chapter
11 on Sept. 13, 1999.
The DIP Financing and existing cash flows will be
used to fund the company's operations during its restructuring. As of
Sept. 22, the company had no outstanding borrowings under the DIP
Financing. Vencor Inc. is a national provider of long-term health care
services that primarily operates nursing centers and hospitals.
AHT Corp. Files for Chapter 11 ReorganizationAHT Corp. and its
subsidiaries, Advanced Health Technologies Corp., Advanced Health
Management Corp.and Advanced Health Bukstel and Halfpenny Corp., filed
chapter 11 Friday in the Southern District of New York, White Plains
Division, according to a newswire report. The filing was made in
connection with an agreement in which Bioshield Technologies Inc. would
provide interim financing to fund AHT's operations and purchase the
assets of AHT for approximately $15 million in cash and stock. BioShield
has already provided $1.5 million to AHT for interim financing.
During the chapter 11 case and sale process, the Tarrytown,
N.Y.-based AHT expects to be fully operational, including providing full
customer service and customer project implementations and conducting
sales activities. In addition, no employee lay-offs are planned during
this period.
BioShield's offer to purchase the assets of AHT is
subject to better and higher offers that will be publicly solicited
through the bankruptcy process. If BioShield is successful in purchasing
the assets of AHT, it is expected that these assets will be merged with
BioShield's eMD.com Internet health care
subsidiary, and AHT's lawsuit against BioShield (filed Sept. 7) for
breach of the original Merger Agreement with AHT (announced July 3) will
be settled and dismissed. The company will request that the bankruptcy
court approve the sale transaction within 60 days.
Railroad Companies File for Bankruptcy
Four related Miami, Okla. companies with liabilities totaling $31.2
million vs. assets of $18.99 million are seeking to reorganize under
chapter 11, according to a newswire report. The bankruptcies, all headed
by Karen M. Johnson, are under the jurisdiction of the U.S. Bankruptcy
Court for the Northern District of Oklahoma and are involved with the
railroad industry.
The four companies are: N-R Industries Inc., a metal
fabrication and machine shop with $3.65 million in assets and $5.1
million in liabilities; J&J Madison Inc., a manufacturer of bricks
and related products with $3.16 million in assets and $3.7 million in
liabilities; R Repair Kar Inc., a company that repairs rail cars with
assets listed at $7.74 million, with $12.6 million in liabilities; and
J&J Railcar Parts & Manufacturing Inc., a rail car manufacturer
with $4.4 million in assets and $9.76 million in liabilities.
Orbcomm Global Has Court Nod For $4M Interim
DIP Funding
Orbcomm Global L.P. won bankruptcy court approval to borrow up to $4
million from an affiliate of majority owner Teleglobe Inc. pending an
Oct. 10 final hearing on its full $17 million debtor-in-possession loan.
Citing a 'critical' need for the financing, the satellite manufacturer
said in a motion filed on Tuesday that it anticipates negative cash
flows for at least the next several quarters, despite 'substantial'
efforts to cut costs and expenses. During the last few months, Orbcomm
Global and certain subsidiaries reduced their head count dramatically,
including a nearly 40% cut across their businesses in early to
mid-August alone, according to the motion. Courtesy of
href='http://www.fedfil.com/bankruptcy/developments.htm'>The Daily
Bankruptcy Review Copyright © September 25,
2000Thanks for visiting Today's Bankruptcy Headlines. New
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