Promised Veto Appears to Doom Congressional
Agreement
Congressional efforts to overhaul the nation's bankruptcy system
appeared all but doomed today when the White House said that President
Clinton would veto a last-ditch measure that sailed yesterday through
the House with little debate, according to the New York
Times. The bill, a compromise hammered out by House and
Senate conferees, was adopted by a voice vote and by all accounts
enjoyed broad support by the House.
Although next Wednesday looks like a possible date for Senate action
on the House-adopted measure, three Democratic opponents —
Senators Edward M. Kennedy (D-Mass.), Charles E. Schumer (D-N.Y.) and
Paul Wellstone (D-Minn.) — have already vowed to try to kill the
measure by a filibuster. Their power to obstruct legislation is limited
and Senate Democratic leaders, including Minority Leader Tom Daschle
(D-S.D.), have expressed support for putting it to a vote soon. Even if
supporters of the bill overcome that obstacle and manage to get the
legislation approved by the full Senate, where it enjoys broad support,
the White House appears almost certain to have the last word.
With votes on the final measure coming so late in the session,
President Clinton has the ability to kill the legislation by issuing his
veto after Congress adjourns later this month, robbing the lawmakers of
an opportunity to vote on an override. By law, he has 10 days from
passage of the legislation to wield his veto pen. In a letter
yesterday to House Speaker Dennis Hastert (R-Ill.) Clinton's Chief of
Staff, John Podesta, said the bill “fails to address some creditor
abuses and disadvantages all debtors to an extent unnecessary to stem
abuses by a few.” He said Clinton also objected to the
removal of a provision in the Senate-passed bill prohibiting people
found to have violated laws protecting abortion clinics from using
bankruptcy proceedings to escape fines and civil judgments.
The full text of the bill and a summary prepared by the House
managers, as well as the letter from Podesta to Hastert, are available
on the home page of ABI World (
href='/'>http://www.abiworld.org).
Safety Components Emerges From Chapter
11
Safety Components International Inc., a maker of car airbag
parts, yesterday said it had emerged from chapter 11 bankruptcy
proceedings, along with certain subsidiaries, according to a Reuters
report. According to the company's court-approved restructuring
plan, all of the indebtedness of certain senior notes, amounting to
almost $97 million, has been converted into 96.8 percent of the
company's post-bankruptcy equity. The Greenville, S.C.-based
company also announced that director John Corey had been promoted to
chief executive and president.
Involuntary Bankruptcy Petition Against The
Children's Beverage Group Dismissed
The involuntary bankruptcy petition that had been filed against
The Children's Beverage Group Inc. in the U.S. Bankruptcy Court for the
Northern District of Illinois has been dismissed, according to a
newswire report. Jon Darmstadter, President and CEO, said,
“We believe the involuntary petition was improperly filed and are
happy to report the petition has been dismissed.” The
Children's Beverage Group Inc. is a unique beverage company directed at
the billion dollar plus children's beverage
market.
Ovitz-Backed Internet Company Files Chapter 11
Scour Inc., the Michael Ovitz-backed Internet company that features
a service similar to Napster, said yesterday that it has filed for
chapter 11, according to a newswire report. Scour president Dan
Rodrigues said that during the bankruptcy process all of Scour's
products would be available to consumers, including the Scour Exchange,
which allows users to share video and music in a way similar to the
wildly popular Napster service. In its filing in U.S. Bankruptcy
Court for the Central District of California in Los Angeles, Scour said
it owed as many as 199 creditors between $1 million and $10 million.
Like Napster, the Scour Exchange has been the target of several
lawsuits from the entertainment community, reportedly making Scour a
source of embarrassment for Ovitz. In fact, insiders confirmed that
Ovitz recently attempted to broker a sale of Scour to RealNetworks Inc.,
which offered $55 million for the company, representing a reported 1,400
percent profit for Ovitz and partner Ron Burkle. That deal was
scrapped when Burkle informed RealNetworks that the price tag for Scour
was $100 million.
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