Equalnet,
Subsidiaries File Chapter 11
Equalnet Communications
Corp. and three subsidiary companies, EqualNet Corp., USC
Telecom Inc. and Netco Acquisition Corp., filed chapter 11
yesterday in the U.S. Bankruptcy Court for the Southern District
of Texas, Houston Division, according to a newswire report.
Hearing
on Possible Iridium Bids Set for Aug. 23
A bankruptcy court yesterday scheduled a hearing for Aug.
23 to discuss possible bids for bankrupt satellite telephone
company Iridium LLC, according to a newswire report. In July,
merchant bank Castle Harlan dropped its $50 million bid to
buy Iridium because it doubted the company, which once promised
communications service to anyone, at any time, anywhere in
the world, would be able to produce steady revenues. The New
York-based company, which was backed by Motorola Inc., has
been searching for a buyer since March. A lawyer for Motorola,
which has operated the satellites, told the court the company
was in discussions with the U.S. government about a plan to
de-orbit the satellites and let billions of dollars worth
of communications gear burn up in the atmosphere.
21
Big Party Stores to Close as Big Party Corp. Sells Company
Hilco Merchant Resources and The Ozer Group announced
yesterday that the bankruptcy court has approved an agreement
under which The Big Party Corp. has been sold to a joint venture
group composed of Hilco, Ozer and iParty Corp., according
to a newswire report. Under the terms of the agreement, Chicago-based
Hilco Merchant Resources and The Ozer Group of Needham, Mass.,
will manage the closing of 21 stores. Store-closing sales
will begin immediately and involve the liquidation of inventory
with an approximate retail value of $10 million. iParty Corp.
will assume operation of the remaining 33 Big Party stores.
Big Party operates stores that offer a full selection of items
required for a successful party, including such things as
plates, cutlery, napkins, tablecloths and party favors. The
Ozer Group is a leading retail consulting, business evaluation
and asset disposition firms. Hilco Merchant Resources, its
parent company, Hilco Trading Co. Inc. and its affiliates
provide strategic financial services for retailers, distributors,
manufacturers, asset based lenders, venture capitalists, investment
bankers and the professionals that serve them.
Criimi
Mae Sells Part of Portfolio in Effort to End Bankruptcy
Real estate investment trust Criimi Mae Inc. announced yesterday
that it sold five classes of subordinated commercial mortgage-backed
securities (CMBS) from its portfolio for $43.8 million, according
to a Reuters report. The action was the latest move by the
company to come out from under its nearly two-year old bankruptcy
filing. New York-based Criimi Mae said it sold Chase Commercial
Mortgage Securities Corp., Series 1998-1, to German American
Capital Corp. (GACC). U.S. Bankruptcy Court Judge Duncan Keir
approved the sale last Thursday. Criimi Mae said the most
recent CMBS sale, together with previous CMBS sales this year,
have generated approximately $230 million in aggregate gross
sales proceeds. The sales are part of Criimi Mae's strategy
of selling a portion of its CMBS in order to fund the company's
emergence from protection under chapter 11. The company filed
bankruptcy on Oct. 5, 1998.
The
1/2 Off Card Shop Retains Keen Realty in Chapter 11 Court
Proceedings
The 1/2 Off Card Shop Inc., the Michigan-based discount
card and stationery chain, retained Keen Realty LLC yesterday
to organize a bankruptcy auction of the leaseholds on its
38 retail sites and corporate headquarters facility, according
to a newswire report. Keen Realty is a real estate firm specializing
in restructuring retail real estate and lease portfolios and
selling excess assets. The 1/2 Off Card Shop filed chapter
11 in June. The auction will also be an opportunity for a
company to purchase 1/2 Off as a going concern. Leases and
inventory not sold as part of a going-concern sale will be
available through the auction process. The auction is currently
set for August 23.
