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Scooter Store Holdings Inc., a supplier of motorized scooters and wheelchairs throughout the U.S., filed for bankruptcy with a plan to sell virtually all of its assets, Bloomberg News reported yesterday. The closely held company, based in New Braunfels, Texas, listed assets of less than $10 million and debt of more than $50 million in chapter 11 documents filed yesterday. Seventy-one affiliates also sought protection. The company owes more than $19 million to the Centers for Medicare & Medicaid Services, administrator of the two government programs, according to court papers. The case is In re Scooter Store Holdings Inc., 13-10904, U.S. Bankruptcy Court, District of Delaware (Wilmington).

Bankrupt photography pioneer Eastman Kodak Co. said that it has agreed to sell some of its document imaging business' assets for $210 million in cash under a stalking horse bid by Brother Industries Ltd., Reuters reported yesterday. Brother Industries will also be assuming liability for deferred service revenue from its document imaging business, totaling about $67 million as of Dec 31, 2012. Kodak will seek court approval for the deal at a hearing scheduled in late April. The U.S. company said it is continuing the sale process for its personalized imaging business as it remains on track to emerge from bankruptcy in the middle of this year. It needs to raise at least $600 million from the sale of its noncommercial imaging assets, according to its amended financing agreement.

Hostess Brands Inc. won approval to sell its Drake’s snack-cake brands to McKee Foods Corp., makers of Little Debbie cakes, Bloomberg News reported today. Bankruptcy Judge Robert Drain yesterday approved the sale to McKee, which made the only qualified bid for the brands. McKee will pay $27.5 million for Drake’s products including Devil Dogs, Ring Dings, Yodels, Yankee Doodles, Sunny Doodles, Funny Bones and Drake’s Coffee Cake. Judge Drain also approved the sale of certain bread brands to United States Bakery. The company will pay $30.9 million for the Sweetheart, Eddy’s, Standish Farms and Grandma Emilie’s bread brands, four bakeries and 14 depots, plus certain equipment.

A bankruptcy court has approved the acquisition of the assets of bankrupt LCI Holdco LLC, the parent of LifeCare Holdings Inc., by Hospital Acquisition LLC, Reuters reported today. The Internal Revenue Service had argued that the sale should be blocked because it would generate a big capital gains tax burden and leave LCI Holding Company Inc., based in Plano, Texas, without cash to pay it. LCI, struggling with $484 million in debt, filed for bankruptcy on December 11. The company hired Rothschild investment bank to sell its assets and LCI's lenders were the only bidders for the facilities, which have a total of 1,400 beds spread over 10 states. The lenders, who are owed $353 million, proposed swapping most of their debt and taking on some of LifeCare's obligations in return for ownership.

PE Creditor Trust announced that American Suzuki Motor closed the sale of its operating assets to Suzuki Motor of America, a newly-organized, wholly-owned subsidiary of Suzuki Motor Corporation, which will operate as the sole distributor of Suzuki products in the continental U.S., BankruptcyData.com reported today. A bankruptcy court confirmed American Suzuki Motor's Plan on February 28, and the reorganization plan became effective on March 31, when the company closed its assets sale and commenced paying the claims in full of all consensually settling automotive dealers and trade creditors through the PE Creditor Trust established by the reorganization plan.

Visual-effects company Rhythm & Hues Inc. received approval from a bankruptcy judge to sell itself to a buyer with ties to Los Angeles competitor Prana Studios Inc. that promised to fund the struggling studio while the firm looks for more work from Hollywood, Dow Jones Daily Bankruptcy Review reported today. Bankruptcy Judge Neil Bason on Friday signed off on the purchase offer from a Prana-related entity that offered to pay $1.2 million in cash and to cover what was spent on Rhythm & Hues' $17 million bankruptcy loan.

Bankruptcy Judge Stuart Bernstein has granted final approval for the sale of the Journal Register Co.'s (JRC) assets to 21st CMH Acquisition Corp., an affiliate of its current owner, the New Haven Register reported on Friday. The approval of the deal by Judge Bernstein clears the way for the deal to close on April 2, Digital First Media announced Thursday. The deal previously had been set to close on or about April 17. The deal includes $114 million in debt and at least $6 million in cash. Judge Bernstein's approval of JRC's sale out of chapter 11 protection comes a week after he dismissed objections made by the Newspaper Guild, an affiliate of the Communications Workers of America, seeking to delay the sale. The objections were regarding existing and future union contracts the company had with workers at two Detroit-area JRC newspapers.

Shutterfly Inc., the online photo-sharing service, sued bankrupt Eastman Kodak Co., accusing it of violating a noncompetition agreement included in the sale of its Kodak Gallery business, Bloomberg News reported on Friday. A Kodak service called My Kodak Moments, which allows users to create photo books and order prints from their smartphones, is "explicitly prohibited" under the agreement, Shutterfly said in a complaint filed in bankruptcy court on Friday. Shutterfly, based in Redwood City, Calif., last year agreed to buy Kodak Gallery, another online photo-sharing business, for $23.8 million. Kodak Gallery competed with Shutterfly, and a "significant driver" of the purchase price was the noncompete agreement, Shutterfly said in its court filing.

Ormet Corp., the operator of an Ohio aluminum smelter, won court approval to hold an auction to sell virtually all its assets, with an affiliate of lender Wayzata Investment Partners LLC making the lead bid, Bloomberg News reported yesterday. Bankruptcy Judge Mary Walrath approved the procedures that will govern the auction process and also granted the company final approval of a $90 million loan from Wayzata and Wells Fargo Capital Finance LLC, according to court documents. Wayzata is providing $30 million and Wells Fargo the remaining $60 million. Ormet will hold an auction on May 13 to see if there are any potential buyers willing to top Wayzata’s stalking-horse offer of about $221 million in debt forgiveness, court filings show. The case is In re Ormet Corp., 13-bk-10334, U.S. Bankruptcy Court, District of Delaware (Wilmington).

Journal Register Co., a newspaper publisher in bankruptcy for a second time, won court approval to sell its assets to an affiliate of its current owner in exchange for $114 million in secured debt and about $6 million in cash, Bloomberg News reported yesterday. Bankruptcy Judge Stuart Bernstein yesterday overruled a union, part of the Communications Workers of America, that had objected to the deal with the buyer, 21st CMH Acquisition Corp. "In light of [the] fact that the transaction will not close until after the termination of the collective bargaining agreements, the court overrules the unions’ objection," Judge Bernstein said in his written ruling. The union contract expires on March 31.