January 21, 2000
Second Session of 106th Congress Opens Monday
The Senate returns on Monday to begin the second session of the
106th Congress. Among the many items listed for action within the first
few weeks is the 'Bankruptcy Reform Act of 1999,' (S. 625). Senate
Majority Leader Trent Lott (R-Miss.) has scheduled a cloture vote for
next Tuesday to limit debate on the remaining amendments, but the vote
may be postponed amid word that all Senate Democrats will likely vote
against cloture. In November, the bill's managers accepted some 37
amendments during the floor consideration. More than 320 amendments had
been filed on the bill, which passed the Senate Judiciary Committee by a
14-4 vote last spring. Only about 14 amendments remain to be considered
before the bill can move to final passage and a conference committee
with the House on H.R. 833. The Senate leadership pulled the bill off
the floor before at the end of the first session because they did not
want to deal with two relevant, but controversial, amendments: one
making debts incurred as a result of abortion clinic violence
non-dischargeable; the other making liability claims non-dischargeable
against gun manufacturers. The cloture vote could be vitiated if an
agreement is reached on how to deal with the two amendments. It is
possible the amendments could be deferred until the Judiciary Committee
holds a hearing on the subject.
Smurfit-Stone Container Completes Reorganization of Joint
Venture
Smurfit-Stone Container Corp. announced yesterday that it has
completed the bankruptcy reorganization of Florida Coast Paper Co.
L.L.C., a joint venture owned equally by Stone Container Corp., a
subsidiary of Smurfit-Stone, and Four M Corp., according to a newswire
report. Smurf-it Stone said that as part of the plan, Stone paid $123
million into a trust fund to satisfy the claims of all creditors and to
pay expenses. Florida Coast transferred all of its assets, consisting
primarily of a mill in Port St. Joe.
Redaurum Unit Files Chapter 11 in Colorado
Redaurum Ltd., Toronto, announced that its wholly owned
subsidiary, Diamond Company N.L. (DCNL), has filed for chapter 11
protection in the District of Colorado in connection with the sale of
DCNL to McKenzie Bay International Ltd., according to a newswire report.
DCNL owns and operates the Kelsey Lake Mine located on the
Colorado/Wyoming state line. The company expects to file a plan shortly
that will allow it to settle all claims and continue operations. The
filing will facilitate the sale of all of the issued and outstanding
shares of DCNL by Redaurum to McKenzie Bay. The two parties agreed in
September to the deal. The sale is expected to be completed by Feb.
29.
Tecmar Technologies Files Chapter 11
Tecmar Technologies International Inc. and two subsidiaries filed for
chapter 11 protection in the District of Delaware, according to a
newswire report. In court documents, the company listed assets and
liabilities of up to $50 million each. Tecmar Technologies Inc. and
Ditto were included in the filing.
Voice It Worldwide Confirms Liquidation
Voice It Worldwide Inc. announced that creditors and the
bankruptcy court accepted its plan of liquidation at a hearing in Denver
this week, according to a newswire report. The liquidation order is
effective immediately. The confirmation of the joint plan of liquidation
under chapter 11 provides that all of the company's assets will be
liquidated and proceeds distributed to the company's creditors, and all
shares formerly traded will be cancelled and no longer outstanding.
T&W Financial Announces Agreement with Creditors
T&W Financial Corp., Tacoma, Wash., announced that it has
entered into agreements with its secured creditors in which the
creditors have agreed to forbear from taking action under their credit
agreements with the company until Jan. 28., according to a newswire
report. T&W believes this extension of time will allow the company
to explore strategic alternatives for selling the business or its
assets. If a binding commitment for the sale of the company is not
received, T&W may be compelled to wind down its business and
liquidate its assets. The company has given notice to employees of
potential terminations.
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