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Court Votes Not to Reappoint Philadelphia Bankruptcy Judge
The 12 active judges on the Third Circuit U.S. Court of Appeals have
voted not to reappoint Bankruptcy Judge David A. Scholl (E.D. Pa.) after
14 years on the bench, Philadelphia's The Legal Intelligencer
reported. Although the decision came as no surprise to some, many said
they were shocked and angered. 'This guy is a moral, hard-working,
caring human being, but he came to the bench with an agenda,' said one
attorney who asked not to be named. Some lawyers said that Scholl always
had 'an agenda' that favored debtors and at times would rebel against
judges who reversed his rulings by trying to find clever ways to reach
the same results again. Attorney Aris Karalis of the Philadelphia
firm Ciardi Maschmeyer & Karalis said, 'I think most of the criticism
came from those who represented institutional lenders, because maybe
they thought he gave debtors more opportunity than they would have
liked.' According to other sources, Scholl himself seemed at a loss but
was prepared to accept to the reality of moving on. 'I thought I did a
very good job,' Scholl said in an interview last Thursday. 'I don't know
the reasons and they [Third Circuit] haven't articulated themand I
doubt that they will.' One attorney commented that Scholl 'never took
off the hat he wore at CLS [Community Legal Services, for which he
headed its consumer law reform project prior to his appointment to the
bench]. I think he'll make a great advocate when he leaves the bench,
but he was not what I would call a great judge.' Members of the
bankruptcy bar generally praised Scholl's intelligence, writing ability,
mastery of law and wit, but were divided on how he should be graded for
other essential criterion of judging, such as fairness, impartiality and
open-mindedness. Scholl's last day on the bench will be Aug. 27. Chief
Bankruptcy Judge Bruce Fox is up next for reappointment.
Vacation Resort Owner Files Chapter 11
Sunterra Corp., the largest owner and manager of vacation ownership
resorts, announced it filed for chapter 11 yesterday, according to a
newswire report. The petition filed in the U.S. Bankruptcy Court for the
District of Maryland in Baltimore would allow the Orlando, Fla., company
and its subsidiaries to operate while Sunterra seeks approval of its
reorganization plan. The company said it has a commitment letter with
Albeco Finance, an affiliate with Cerberus Capital Management LP, for
debtor-in-possession financing, which, if approved, would give Sunterra
an interim DIP facility of up to $25 million, a figure that could be
increased to $53 million subject to other conditions.
Former U.S. Presidential Yacht Headed for the Online Auction
Block
Online asset auctioneer Bid4Assets.com, Silver Spring, Md., announced
yesterday that the former
presidential yacht, the USS Sequoia, is posted for auction
exclusively on its Web site,
www.bid4assets.com, according to a newswire report. The presidential
yacht, a 104-foot, four
bedroom national historic landmark, has been a part of some of America's
most historic events,
including former Presidents Roosevelt and Eisenhower planning D-day, and
former President
Truman pondering whether to drop the nuclear bomb. The presidential
yacht has been owned since
the early 1980s by a shipyard in Norfolk, Va., that acquired the yacht
through repossession when
the former owners failed to pay more than $3.5 million for refurbishing
and repairs. The shipyard
decided to sell the yacht to recover its losses. 'Ultimately, we hope
that the Sequoia finds a happy home,' said Tom Kohn, chief
executive officer of Bid4Assets.com. Bids for the USS Sequoia
will be accepted from June 1-8.
ND Holdings Completes Purchase of ARM Securities Corp.
ND Holdings Inc. (NDHI), Minot, N.D., announced yesterday that it has
completed the
acquisition of ARM Securities Corporation (ARM) of Louisville, Ky.,
through a stock purchase
agreement for an undisclosed amount of cash, which was approved by the
bankruptcy court for the
District of Delaware, according to a newswire report. The seller and
parent of ARM Securities,
ARM Financial Group Inc. (ARM Group), is a debtor-in-possession. NDHI
plans to operate ARM
as is and to retain all personnel and processing locations. ARM, a
broker dealer marketing mainly
mutual funds and annuities, will continue to operate under its current
name as a wholly owned
subsidiary of NDHI. 'This acquisition will represent a significant
addition to our revenue stream,'
said Robert Walstad, NDHI president. 'We are also pleased to be able to
utilize our existing
support service capabilities to support the staff and sales activities
of this new unit.'
Vencor Gets Reorganization Plan Filing Extension
Vencor Inc., a Louisville, Ky., long-term health care services provider,
announced yesterday it has
received court approval to extend the filing of its reorganization plan
until July 18, according to a
Dow Jones newswire report. The bankruptcy court approved a tax
stipulation agreement between
Vencor and Ventas Inc., which includes $26.6 million in refunds drawn by
Ventas from a 1998 tax
return. Vencor, Ventas's primary tenant, filed for bankruptcy with
several of its units last
September; Vencor and Ventas are still in discussions. Vencor also
reached an agreement with
advisers to the official unsecured creditors' committee regarding the
broad terms of the plan.
LaRoche Industries
Reports $56.4M Operating Loss For 1999
LaRoche Industries Inc. (X.LII) reported a $56.4 million operating loss
on
sales of $366.9 million for the year ended Feb. 29, compared with an
operating loss of $30.2 million on sales of $389.5 million for the year
ended Feb. 28, 1999. The Atlanta-based industrial ammonia supplier
disclosed
the unaudited fiscal 1999 operating results in a non-timely Form NT 10-K
filed late Tuesday with the Securities and Exchange Commission. LaRoche
said
that continued low prices for its North American products, and a
downturn in
prices for its European products, resulted in increased losses from
operations for the year ended Feb. 29.
Courtesy
of
href='http://www.fedfil.com/bankruptcy/developments.htm'>The Daily
Bankruptcy
Review Copyright © June 1,
2000.
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