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Pacific Gas Creditors Won't Get to Vote on Reorganization
Again
Creditors of PG&E Corp.'s Pacific Gas & Electric Co. won't get
another chance to
vote on two competing reorganization plans, Bloomberg News reported.
U.S. Bankruptcy Judge Dennis Montali turned down California regulators'
request to let creditors owed $13 billion to vote again on their
preferences for the state's plan and a rival plan submitted by PG&E.
The ruling is a victory for PG&E, whose plan received a majority of
creditors' votes, an important element in gaining bankruptcy court
approval for its reorganization plan. A trial on the plans likely will
end in March, reported the newswire. Pacific Gas, the state's largest
utility, filed for chapter 11 protection in April 2001, after incurring
$9 billion in debt purchasing power for more than it could charge
customers under California's power deregulation plan.
U.S. Steel Still Wants to Buy National; Will Seek Union
Pact
U.S. Steel Corp., North America's biggest steel producer, remains
interested in bankrupt National Steel Corp.'s assets even after a judge
ruled that a rival $1.13 billion bid from AK Steel Holding Corp. is the
best, Bloomberg News reported. U.S. Bankruptcy Judge John Squires named
AK Steel as the lead bidder and gave it until March 17 to negotiate a
union contract. The union has said talks with AK Steel would be
difficult and that it favors U.S. Steel's $950 million offer. 'We are
still interested in acquiring National and confident we can reach an
agreement with' the United Steelworkers of America, U.S. Steel spokesman
Mike Dixon said, reported the newswire.
USWA To Begin Talks With US Steel
The United Steelworkers of America have moved quickly toward a contract
with United States Steel Corp. that would strengthen the steel company's
hand in acquiring National Steel Corp., despite a higher bid from A.K.
Steel Holding Corp., Dow Jones reported. In a press release on Monday,
the union said if talks continue on pace, 'there is no reason that we
cannot move forward quickly to put US Steel in a position to acquire
National Steel and continue the consolidation that the steel industry
needs,' reported the newswire.
ANC Rental Can Tap Banks' Cash Collateral Through March 19
ANC Rental Corp. on Thursday won a one-month extension of its authority
to use the cash collateral of its secured lenders to fund operations and
maintain its fleet of rental cars, Dow Jones reported. The order, signed
by Judge Mary F. Walrath of the U.S. Bankruptcy Court in Wilmington,
Del., extends ANC Rental's right to use the cash collateral of Lehman
Brothers Inc. and Congress Financial Corp. through March 19. ANC Rental
owns and operates car rental businesses under the brand names Alamo and
National. The company filed for chapter 11 bankruptcy protection on Nov.
13, 2001, listing assets of just under $6.5 billion and debts of $5.9
billion as of Oct. 31, 2001, reported the newswire.
Alterra Healthcare Wants Court Nod For Severance Plan
Alterra Healthcare Corp. is asking the bankruptcy court handling its
chapter 11 proceedings to allow the company to spend up to $5.6 million
on a severance plan for employees, Dow Jones reported. According to
court documents obtained on Friday by Dow Jones Newswires, Alterra
Healthcare said it needs to start the severance program to ease the
uncertainty and anxiety caused by its bankruptcy filing. Under the plan,
workers would receive between eight and 39 weeks' pay based on their
salary if their jobs are eliminated or they are transferred to positions
that aren't comparable to their original jobs, court papers said,
reported the newswire. A hearing on the severance payment has been
scheduled for Feb. 18 in Wilmington, Del. Alterra Healthcare, which
operates assisted-living homes, has been under chapter 11 protection in
the U.S. Bankruptcy Court in Wilmington, Del., since Jan. 22.
Kmart Seeks Court OK To Pay Fees On Reorganization Plan
Kmart Corp. has asked the judge overseeing its bankruptcy case for
permission to pay a so-called 'commitment fee' and the expenses of the
two investors in its reorganization plan, Dow Jones reported. The
investors, Edward S. Lampert's hedge fund, ESL Investments Inc., and
Martin Whitman's Third Avenue Value Fund, earlier this month agreed to
invest up to $353 million to support the retailer's emergence from
federal bankruptcy-court protection, reported the newswire. Troy,
Mich.-based Kmart filed for bankruptcy in January 2001.
ACandS Gets More Time To File Chapter 11 Reorganization Plan
ACandS Inc. won a 120-day extension of the periods during which it has
the exclusive right to file a reorganization plan and solicit plan
acceptances, Dow Jones reported. Judge Randall J. Newsome of the U.S.
Bankruptcy Court in Wilmington, Del., signed the order on Monday. A week
earlier ACandS filed a chapter 11 reorganization plan that called for
the company to resolve more than $3.2 billion in asbestos-related
personal injury claims. The former Armstrong World Industries Inc.
subsidiary is a defendant in roughly 270,000 asbestos-related personal
injury lawsuits. The order signed by Judge Newsome extends AcandS's
exclusive plan filing period through May 14 and the period during which
it has the sole right to obtain votes for a plan through July 12,
reported the newswire.
Conseco Judge Recommends Talks Over Document Requests
The judge overseeing Conseco Inc.'s federal bankruptcy proceedings in
Chicago on Friday told several groups to enter into negotiations
regarding document requests by the unsecured creditors' committee in the
case, Dow Jones reported. The committee filed an emergency motion late
on Thursday to force Lehman Brothers and CFN Investment Holdings LLC to
turn over a list of materials related to Conseco's planned sale of its
Conseco Finance unit. In court documents, the committee said it
questioned the 'unusual' deal, which calls for CFN to buy Conseco
Finance for between $800 million to $950 million in debt held by Lehman
Brothers plus remaining money due on the unit's debtor-in-possession
financing, reported the newswire.
Union To Ask Weirton Steel Workers To OK Wage-cut Deal
Workers at Weirton Steel Corp. will be asked to accept wage cuts and
other concessions under a tentative contract that union and company
leaders say will help ensure the company's long-term survival in an
increasingly competitive industry, the Associated Press reported. The
concessions are expected to save the steelmaker $40 million, said Mark
Glyptis, president of the Independent Steelworkers Union, which
represents 3,200 Weirton Steel workers. The proposed wage cuts and other
concessions would affect management as well as union workers, he said.
Glyptis said he expected workers to approve the changes because they
know Weirton Steel must adapt to a changing domestic industry, reported
the newswire.
Rocky Mountain Securities Closes Doors Following SEC Suit
Rocky Mountain Securities & Investments Inc., a longtime Denver
stock brokerage firm, has shut its doors after being sued by the
Securities and Exchange Commission and Securities Investor Protection
Corp. (SIPC), Dow Jones reported. Federal Judge Marsha Krieger of the
U.S. District Court in Denver on Thursday appointed Denver attorney John
Shively as trustee for the liquidation of the firm. The action came in
the wake of the discovery that $4.5 million is unaccounted for at the
firm, according to a SIPC press release on Friday. The trustee took over
the firm's premises, and the case is now in bankruptcy court, said Steve
Harbeck, general counsel for SIPC, reported the newswire.
Bethlehem Steel Board Approves Sale to International Steel
Bethlehem Steel Corp., the bankrupt company that once was the
third-largest U.S. steelmaker, said its board approved a proposed sale
to International Steel Group Inc. for about $1.5 billion, Bloomberg News
reported. The sale is expected to be completed in the second quarter,
Bethlehem Steel said in a press release distributed by Business Wire.
The company must still go through an auction period for rival bids that
are subject to a bankruptcy court's approval, reported the newswire.
Separately, Bloomberg reported that Bethlehem Steel Corp. will eliminate
the health care and life insurance benefits for its 95,000 retirees. A
letter dated Feb. 6, was sent to a bankruptcy committee asking to
terminate the benefits on March 31, Bethlehem Steel said in a statement
sent by Business Wire, reported the newswire. Bethlehem, based in the
Pennsylvania city of the same name, has about 11,800 workers.
Bankrupt Sabres Get Court Approval for $15 Million Line of
Credit
The bankrupt Buffalo Sabres received another $15 million of credit and
approval to pay deferred signing bonuses to four players, the National
Hockey League said, Bloomberg News reported. Sabres' attorney William
Thomas made the request in U.S. Bankruptcy Court, which previously
granted the team as much as $35 million in credit and financing. Sabres
filed for bankruptcy protection on Jan. 13 and owe their 40 largest
creditors more than $206 million, reported the newswire.
Judge Gives UAL Extension To Lower Plane Lease Rates
The federal bankruptcy judge overseeing UAL Corp.'s case gave the United
Airlines parent more time and increased privacy to work out lower lease
rates on its aircraft fleet, the Wall Street Journal reported.
Late last week Chief Judge Eugene Wedoff granted United's motion
for extra time to decide whether to assume or reject leases on some
aircraft while it continues to press for improved terms. The company had
asked for three more months and the judge agreed to extensions of 60 to
90 days, the Journal reported. Without the extra time and in the
absence of new agreements or payments, lessors and creditors could have
begun seizing their aircraft last Friday. Some planes still carry that
risk, however, because new terms haven't been agreed and United isn't
paying rent on them, according to the Journal.
ATSI Communications Announces Planned Merger With CCC GlobalCom
ATSI Communications Inc.'s two Texas operating units filed for
reorganization under chapter 11 bankruptcy protection, a move that
doesn't affect the parent company or any of its other operating
subsidiaries, Dow Jones reported. ATSI Communications also said in a
press release on Friday that President and Chief Executive Stephen M.
Wagner resigned, and that the company's board approved a merger with
Houston-based CCC GlobalCom. The combined entity will be listed as ATSI
Communications Inc., which is expected to continue to be traded on the
American Stock Exchange under the symbol AI, reported the newswire.
Allegheny Energy Units Get Extensions From Bank Lenders
Allegheny Energy Inc. again received an extension on the default waivers
of its credit agreement as it continues talks with its lenders to
refinance its debt, Dow Jones reported. The waiver, which was set to
expire on Friday, has been extended to Feb. 14. The latest extension is
the company's fifth since going into default, with the last extension
coming a week ago. In a press release on Friday, the mid-Atlantic
utility said it and its Allegheny Energy Supply Co. and Allegheny
Generating Co. units are continuing negotiations with its lenders to
amend its credit line and secure additional financing, Dow Jones
reported. Allegheny again warned, however, that if talks fail the
company would likely seek bankruptcy protection, according to the
newswire.
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