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Rep. Gekas Tells National Association of Federal Credit Unions Not
to Give Up on the Bankruptcy Bill
Speaking to the National Association of Federal Credit Unions
yesterday, Rep. George Gekas (R-Penn.) encouraged NAFCU members to
continue their support for the bankruptcy reform bill. Gekas
acknowledged the existence of several obstacles in the bill’s
path, but noted that it can be pushed through.
“The bill is not dead yet and it shouldn’t be counted out
for the term,” he said. “However, we are facing many
obstacles, mainly finding common ground between the White House and
Congress.”
Coram Healthcare Receives Court Approval for Up to $40 Million in
DIP
Coram Healthcare Corporation and Coram Inc., collectively known as Coram
Healthcare, yesterday announced that the U.S. Bankruptcy Court for the
District of Delaware issued its final order permitting the company to
access as necessary the Debtor-in-Possession (DIP) financing agreement
previously negotiated with Madeline LLC, an affiliate of one of the
company's principal debt holders, according to a newswire report. The
financing agreement provides the company a $40 million DIP financing
line of credit.
Coram Healthcare Corporation and Coram Inc. filed
chapter 11 of the U.S. Bankruptcy Code on Aug. 8. The company's
election to file for bankruptcy was solely to reduce and restructure
debt and to maintain compliance with all applicable federal laws and
regulations. The company is not seeking relief from the day-to-day
operating expenses of its subsidiaries, which are not in bankruptcy and
continue to maintain normal business operations. According to the
reorganization plan, the Denver-based company anticipates emergence from
bankruptcy as a privately held company by December 31.
U.S. Court Clears Heilig-Meyers Liquidation Plan
Bankrupt home furnishings retailer Heilig-Meyers Co. yesterday said a
federal bankruptcy court approved proposed liquidation sales at stores
the company plans to close, according to a Reuters report. The
court also approved the company's plan to outsource its in-house credit
program.
The Richmond, Va.-based company said it hired Great American Group,
Gordon Brothers Retail Partners LLC and The Nassi Group LLC to conduct
liquidation sales at the under-performing stores that it plans to
close. The sales will begin within the next week and are scheduled
to take 45 to 60 days to complete. Heilig-Meyers aims to close 302
stores, slash 4,400 jobs and end its in-house consumer credit program.
The company — the nation's largest retail chain for home
furnishings — operates more than 870 stores around the country and
employs about 16,500 people.
Dotcomfailures.com Out of Business
Dotcomfailures.com the site that existed to sound the death knell of
dot-com companies, went out of business yesterday, according to a
newswire report. “Three months and $2.6 million later,
Dotcomfailures.com is closed,' read a message on the site, whose logo is
'Kick 'em while they're down.' The site was one of several that
popped up after the April stock market downturn to act as a forum for
rumors and news of closures and layoffs at dot-com
companies.
The Internet zeitgeist that created a stream of 20-something
millionaires slowed suddenly after Wall Street grew tired of Net
companies with huge valuations that continued to lose huge amounts of
money. With funding harder to find, layoffs and closures soon
followed—along with a massive public relations backlash that
fueled the popularity of sites like Dotcomfailures.com.
Icahn Approved to Buy Sands, Wins Casino Bidding War With Park
Place
Billionaire financier Carl Icahn moved a step closer to owning the Sands
Hotel & Casino on Wednesday after New Jersey regulators endorsed his
plan to pull it out of bankruptcy, according to a newswire report.
Icahn, who owns two Las Vegas casinos, won out over Park Place
Entertainment Corp. (PPE) in his bid to take over the Atlantic City,
N.J.-based Sands, in part because the casino's unsecured creditors voted
in favor of Icahn. The takeover, which had already been approved
by U.S. Bankruptcy Court Judge Judith Wizmur, will take effect
Sept. 29.
The state Casino Control Commission approved Icahn's plan to invest
$65 million in cash and issue $110 million in new bonds to prop up the
casino, which continued to operate while reorganizing in
bankruptcy. The commission also granted the Sands a new four-year
license, ruling that Icahn's takeover made it financially stable.
Icahn will begin paying off the vendors and other creditors who were
owed $6.7 million when the Sands filed for chapter 11 in January
1998. It reported losses of more than $35 million annually for the
three years prior to the bankruptcy filing.
Regal Cinema Scaling Back in Attempt to Avoid Bankruptcy
Faced with industry-wide overbuilding and mounting debts, Regal
Cinemas is cutting back as it tries to avoid filing for bankruptcy
protection, according to the Miami Herald. Regal, the
nation's largest theater operator, is negotiating with local landlords
to cancel the leases for two new megaplexes under construction and to
close a number of existing theaters, including some only a few years
old. Regal says it will at least delay plans for two Miami-Dade
projects once scheduled to open next year: a 28-screen theater at
Dolphin Mall and a 16-screen theater planned for Jeff Berkowitz's
Kendall Village Center. Industry sources say it's likely that those
theaters will never open under the Regal name.
Integrated Health Sees Long-Term Business Plan By Oct. 18
Stating that it's committed to develop a long-term business plan by Oct.
18, Integrated Health Services Inc. is seeking a 123-day extension of
the exclusive periods during which only the company would be permitted
to file a Chapter 11 plan. The proposed extension, which would be the
company's second, would extend through Jan. 31, 2001, the exclusive
period during which other parties would be prohibited from filing a plan
from Sept. 29. If the company files a plan by Jan. 31, other parties
would be further prohibited from filing a plan through April 2,
2001.
Courtesy of
href='http://www.fedfil.com/bankruptcy/developments.htm'>The Daily
Bankruptcy Review Copyright © September 14,
2000.
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