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Vendors are demanding cash upfront from concert promoter SFX Entertainment Inc. in the wake of the company’s abandoned effort to go private, the Wall Street Journal reported yesterday. SFX said on Tuesday that it was experiencing a “short-term disruption to its business operations” as the cash demands take a toll on its liquidity. “Specifically, the company has been required to expend more of its cash reserves than planned on unforeseen live event expenses, including making upfront payments to more of its live event vendors, impacting the Company’s liquidity,” SFX said in a financial disclosure.

Gun maker Colt Defense and its creditors are close to a deal on a plan to bring the company out of bankruptcy, but if it fails, the business will go on the auction block next month, Reuters reported yesterday. Colt filed for bankruptcy earlier this year due to falling sales of its sport rifles and the loss of military contracts. The company's private equity owner has been battling its bondholders for control of the West Hartford, Connecticut-based business, and the parties are pressured by Colt's dwindling cash. "It's fair to say the parties are very close to a deal," Colt lawyer John Rapisardi told the U.S. Bankruptcy Court in Wilmington, Delaware. "The parties are working to finalize a term sheet and an agreement can be reached in a couple days." Colt wanted more time for talks but was forced to court by Morgan Stanley, which is using its bankruptcy loan to demand the start of a court-supervised auction process. Bankruptcy Judge <b>Laurie Silverstein</b> paused the hearing and sent the parties into a conference room to work out an agreement. The parties agreed to auction procedures, but postponed by three weeks the deadline for bids and a sale. An auction would be held on Oct. 20.

Developer Donovan Clarke has filed for chapter 11 protection for Clarke Real Estate Development LLC, which had been constructing up to 22 large homes at Parke Place in the 1300 block of Bainbridge Street and offering them for sale at more than $1 million each, complete with elevators, the Philadelphia Inquirer reported today. The bankruptcy follows mortgage foreclosure actions by Clarke's original financial partner, the Dietz & Watson Defined Benefit Pension Fund for workers at the Northeast Philadelphia lunchmeat company, that resulted in listing several of the Parke Place properties for sheriff's sale. Clarke said that he expects the pension fund "will ultimately be paid, and there will be new funding."

Hilo Hattie, a popular chain for Hawaii’s tourists in search of souvenirs, laid out a plan to get out of bankruptcy and repay some of its debts after selling its most valuable location for $5.1 million earlier this year, the Wall Street Journal Bankruptcy Beat blog reported yesterday. In court papers, Hilo Hattie lawyers proposed to use the sale money to repay a portion of the company’s debts, including a $360,000 chunk of sale money that would flow to unsecured creditors who are owed more than $3 million. The plan projects that the 52-worker chain, which has downsized from seven to three locations, will start seeing sales grow starting next year. By 2020, the chain expects to take in about $7.5 million from the sale of its travel trinkets, Hawaiian floral-printed shirts and other inventory, according to documents filed in U.S. Bankruptcy Court in Honolulu.

Quiksilver Inc., the surfwear chain that has lost more than three-quarters of its value this year, is looking for a buyer that could help keep the company afloat, Bloomberg News reported yesterday. Quiksilver has been holding discussions with potential strategic bidders with the goal of a management-led buyout that would let the company retain its stores. The Huntington Beach, Calif.-based chain replaced its top executives in March after the company had to restate earnings and projected disappointing sales. In June, Quiksilver scrapped its annual earnings forecast, saying that a rebound would take longer than expected.

Republic Airways Holdings Inc. shares almost erased a decline after the airline’s pilot union said it was ready to resume talks on a contract, easing investor concern of a possible bankruptcy, Bloomberg News reported yesterday. The regional carrier has said a court-supervised restructuring is an option if a new contract isn’t secured. The shares had plunged as much as 32 percent after Teamsters General President James Hoffa refused to overturn a decision by Local 357 negotiators to skip a vote on the latest offer, which Republic had called a “final” one. Local 357 “is ready to resume negotiations” with Republic to reach an agreement as soon as possible, union President James Clark told members yesterday.