Indiana Limestone Co., which has mined slabs of stone for the Empire State Building and the Pentagon, filed for bankruptcy after struggling to repay a $53 million loan, Dow Jones Daily Bankruptcy Review reported today. Officials put Indiana Limestone into chapter 11 protection yesterday while they look for buyers who could top a $26 million lead offer for the company's quarries, which cover more than 4,000 acres and are expected to produce more than 100 years' worth of limestone.
OSX Brasil SA, the bankrupt shipbuilding company controlled by former billionaire Eike Batista, is in talks with Cerberus Capital Management LP and a number of unnamed investors for a potential debtor-in-possession financing deal, Reuters reported yesterday. Currently no agreement has been struck between OSX and potential sources of the loan, the Rio de Janeiro-based company said in a securities filing yesterday. OSX's focus at this point is what to do with three floating production storage and offloading vessels it owns, according to the filing. A source with knowledge of the situation said OSX, which filed for bankruptcy protection late last year, is seeking between $200 million and $215 million in financing to move ahead with a restructuring process.
Gilbert Hospital, a once highly profitable Arizona hospital that served as a model for other emergency-room centers, has filed for chapter 11 protection, the Arizona Republic reported today. Gilbert Hospital executives did not return multiple calls, but an attorney said that the bankruptcy filing stemmed from several factors, including a loss of financing, management changes, competition from other Gilbert hospitals and construction near the hospital that may have discouraged patients from visiting its emergency room.
Wanxiang Group, China's largest auto parts company, won a bankruptcy auction for the assets of Fisker Automotive, the defunct manufacturer of the Karma plug-in hybrid sports car, Reuters reported on Friday. Wanxiang's bid has been valued at about $149.2 million, representing $126.2 million of cash, $8 million of assumed liabilities, and a contribution of common equity in an affiliate designated by Wanxiang, Fisker said in a statement. The sale will be presented to Bankruptcy Judge Kevin Gross today for approval. Wanxiang outbid an affiliate of Richard Li, a Hong Kong billionaire and Fisker investor.
Bankrupt wireless company LightSquared Inc. has proposed a new restructuring plan that would remove certain regulatory hurdles to its exit from chapter 11 while potentially subordinating the bankruptcy claim held by its largest creditor, an entity run by Dish Network Corp Chairman Charles Ergen, Reuters reported on Saturday. In court papers filed late on Friday night, LightSquared outlined a restructuring plan fueled by $2.35 billion in new financing from Fortress Investment Group and others, which would not be contingent on gaining regulatory approval for a planned wireless network, as was its previous plan. It would allow its current equity owner, Phil Falcone's Harbinger Capital Partners, to retain a stake in the company post-bankruptcy, along with Fortress and Melody Capital, also a financier of the new loans. But Ergen's investment vehicle, despite being the largest holder of LightSquared's loan debt, would be paid out in the form of new debt, rather than cash, like other lenders. The new debt may or may not be secured by collateral, depending on whether Ergen votes in favor of the plan.
Classic Party Rentals Inc., a provider of tents, chairs and other equipment for Oscar parties and intimate gatherings, filed for bankruptcy after a period of rapid expansion and said it was preparing to sell the business, Bloomberg News reported on Friday. The Inglewood, Calif.-based company, backed by Quad-C Management Inc., listed more than $100 million each in assets and debt in chapter 11 papers filed on Friday. The company sought “to consolidate a fragmented industry,” through acquisitions from 2004 to 2008, Chief Executive Officer Jeffrey M. Black said in court papers. The buyouts “were priced and financed based on projections that proved unattainable” as demand slowed, he said.
Freedom Industries is asking the bankruptcy court to speed up the hearing process and give approval to hire experts and environmental consultants to look into details of the Jan. 9 chemical spill, the Charleston (W.Va.) Daily Mail reported yesterday. Freedom wants experts and consultants to assist in remediation of the site, help preserve evidence and help in the defense against lawsuit allegations. The filing also explained Freedom's insurance policies, which will pay for parts of the remediation process. In Saturday's bankruptcy court filing, Freedom requests the hearing on this motion to take place at 10 a.m. on Friday — the same time the court will hear other bankruptcy motions, including the final hearing on Freedom's financial motion.
The Astros and Rockets each claim they are owed more than $27 million in unpaid rights fees by Comcast SportsNet Houston, according to documents filed yesterday in the network’s chapter 11 case, the Houston Chronicle reported today. The teams top a list of the 25 largest unsecured claims against the network, totaling about $60 million, submitted in advance of a hearing today before Bankruptcy Judge Marvin Isgur. The Astros, who own 46 percent of the partnership, and Rockets, who own 31 percent, are by far the largest unsecured creditors. The Astros, who were not paid their rights fees for the final three months of the 2013 season, are owed $27,898,563, and the Rockets, who have not been paid this season, are owed $27,683,693.
Seymour, Ind.-based bioplastics maker Cereplast Inc. on Feb. 10 filed for chapter 11 protection from creditors, PlasticNews.com reported yesterday. Cereplast reported a net loss of $34 million on sales of $2.1 million for the nine months ended Sept. 30 — the latest financial results that the company reported. The company said that it is "actively negotiating a debtor-in-possession financing from several interested parties.”
Overseas Shipholding Group Wednesday reached an agreement with holders of 60 percent of its $1.5 billion top-ranking loan on a chapter 11 plan that will bring the oil tanker operation out of bankruptcy, Dow Jones reported yesterday. One of the world's largest shippers of petroleum products, Overseas Shipholding filed for bankruptcy protection in 2012, partially blaming falling rates for international vessels. The company's biggest problem, however, was a large tax liability, the legacy of years of flawed accounting for international assets. U.S. tax authorities agreed late last year to reduce their claim for some $470 million worth of back taxes to about $256 million, lowering what had been a major hurdle for the company's bid to come out of bankruptcy. On its way out of Chapter 11, Overseas Shipholding plans to raise $150 million through a rights offering to holders of the $1.5 billion top-ranking loan.
