March 8, 2000
Clinton Urges Congress to Pass 'Straightforward' Minimum Wage
Legislation
President Clinton yesterday urged Congress to pass
'straightforward' legislation to raise the minimum wage $1 to $6.15 per
hour, over a two-year period, according to Reuters. In a letter to
Senate and House leaders, Clinton said he would veto Republican-backed
bills that phase in the $1 per hour increase over three years instead of
two, or that include big tax cuts. Tomorrow the House is expected to
take up minimum wage legislation that would increase wage by a dollar
over a three-year period, and lawmakers are expected to vote separately
on a package of tax breaks that supporters argue would offset the cost
of higher wages for small businesses. The two measures would then be
folded into one bill. The Senate has already passed a minimum wage
increase of $1 an hour over three years as an amendment to the
bankruptcy reform bill. There is also an amendment to include a package
of tax breaks.
Consumer Borrowing Increased in January
Consumer borrowing increased in January at its fastest rate in
more than four years, The Wall Street Journal reported. For the
month, consumer borrowing rose at a higher-than-expected rate of 14.6
percent, according to a Federal Reserve report. The pace was the fastest
since a 19.3 percent increase in November 1995. Households showed
renewed vigor for all types of borrowing; demand for revolving loans,
such as those for most credit cards, increased 15.1 percent, while
demand for non-revolving loans, such as those for cars for boats,
increased 14.2 percent. Consumer demand accounts for almost two-thirds
of the economy's output, and the Fed continues to express concern that
inflation may set in as demand outstrips supply. Gary Thayer, an
economist with A.G. Edwards & Sons in St. Louis, said, 'The
productivity numbers mean that the Fed doesn't need to worry about
inflation in the near future, but the increase in consumer credit
suggests there are still demand imbalances in the economy that need to
be addressed.'
GenX Buys Just For Feet Clothing and Shoe Assets
GenX Sports paid $7.2 million for $36 million worth of Just For
Feet Inc. shoes and clothing; the company also will pay about $1.2
million for packing and shipping, according to The Birmingham
News. Birmingham, Ala.,-based Just For Feet has not announced the
results of the Feb. 15 bankruptcy court auction of its assets, but it is
known that at least 50 different bidders were on hand. Footstar Inc. was
the biggest buyer; it purchased 102 stores, the name 'Just For Feet' and
the chain's headquarters for $72 million. GenX President Ken
Finkelstein, who now employs Don-Allen Ruttenberg, a former executive at
Just For Feet, said Ruttenberg helped prepare the bid and that the deal
was 'fair.' Finkelstein said, 'They made sure they got the most money
they could for the creditors.'
New York Woman Pleads Guilty to Bankruptcy Fraud
Eleanor Ann Ellis, Venice, N.Y., pleaded guilty this week in
U.S. District Court in Minneapolis to bankruptcy fraud, according to the
U.S. Attorney's office in Minnesota. Ellis admitted that when she filed
for bankruptcy in Minnesota in April 1995 she used a false social
security number, and she admitted to using a different false social
security number in a prior bankruptcy petition filed in New York in
1990. Ellis' fraudulent use of a false social security number on her
Minnesota bankruptcy petition resulted in the inappropriate discharge of
more than $460,000 in indebtedness. She faces a maximum potential
penalty of five years in prison and/or a $250,000 fine. The U.S. Trustee
for Region 12 provided documentation and other assistance to the U.S.
Attorney during the investigation and prosecution of the case.
Public Notice for Reappointment of Pennsylvania Bankruptcy
Judge
The current term of office of David A. Scholl, U.S. Bankruptcy
Judge for the Eastern District of Pennsylvania at Philadelphia, is due
to expire on Aug. 26, 2000. The U.S. Court of Appeals for the Third
Circuit is considering the reappointment of Judge Scholl to a new term
of of office and has determined that he appears to merit reappointment
subject to public notice and opportunity for public comment. Upon
reappointment, the incumbent would continue to exercise the jurisdiction
of a bankruptcy judge as specified in title 28, U.S. Code; title 11,
U.S. Code; and 122, 98 Stat. 333-346. In bankruptcy cases and
proceedings referred by the district court, the incumbent would continue
to perform the duties of a bankruptcy judge that might including holding
status conferences, conducting hearings and trials, making final
determinations, entering orders and judgments, and submitting proposed
findings of fact and conclusions of law to the district court.
Members of the bar and the public are invited to submit comments for
consideration by the Court of Appeals regarding the reappointment of
Judge Scholl to a new term of office. Please not that the Court of
Appeals procedures provide that 'the circuit executive shall not
disclose the identity of any person who requests confidentiality, but
shall provide the incumbent bankruptcy judge with a general description
of the source and nature of the comments.'
All comments should be directed to the following address: Office of
the Circuit Executive, Toby D. Slawsky, Circuit Executive, 22409 U.S.
Courthouse, 601 Market St., Philadelphia, PA 19106-1790. Comments must
be received no later than Friday, April 14.
Lenox Healthcare Wins Interim OK for Pact With
Lenders
The U.S. Bankruptcy Court in Wilmington, Del., has entered an interim
order approving a settlement between Lenox Healthcare Inc. and two of
its largest secured creditors that collectively assert claims of more
than $35 million. The order will become final if no objections are filed
by March 14. As of Friday morning's docket, no objections had been
filed. Any objections filed by the March 14 deadline will be considered
by the court at a hearing scheduled for March 21.
Gulf States Steel to File Reorganization Plan
'Shortly'
Gulf States Steel Inc. will file a reorganization plan in the very near
future, according to the integrated steel producer's lead bankruptcy
counsel. On Feb. 29, the Gadsden, Ala.-based company won a 120-day
extension of its exclusive periods to file a plan of reorganization and
solicit plan acceptances. 'We expect to file a plan shortly despite the
extension of exclusivity,' Alan Kolod of Moses & Singer
L.L.P. told DBR. 'Hopefully within the next week or two,' he added.
Courtesy of
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8, 2000.
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