Skip to main content

%1

New York Dance Company Files for Bankruptcy

Submitted by webadmin on

After facing an eviction notice during Memorial Day weekend, Dance New Amsterdam, the nonprofit dance school, studio and theater space located in New York City, filed for chapter 11 protection on Monday, the Wall Street Journal reported today. The dance company, which remains open for business, has struggled to meet financial obligations associated with the 25,000-square-foot space it moved into in 2006 after more than 20 years in SoHo. At the time, the move was encouraged by the city as part of an attempt to revive the cultural life of Lower Manhattan after the attacks of Sept. 11, 2001. But the original agreement led to overwhelming debt and an unsustainable lease.

Cat-Litter Maker MFM Industries Seeks Bankruptcy Protection

Submitted by webadmin on

MFM Industries Inc., the maker of cat litter under brands including Hartz and Mighty Cat, filed for chapter 11 protection amid litigation-related debt with plans to sell the business, Bloomberg News reported yesterday. The Ocala, Fla.-based company listed as much as $50 million each in assets and liabilities in its chapter 11 papers filed yesterday. The 2011 lawsuit, resulting in an $809,000 judgment against MFM, was filed by Terex Financial Services Inc. alleging that MFM was in default of an equipment lease. In addition, a secured creditor, Palmer Resources LLC, is demanding about $5.2 million from a defaulted note, according to court papers.

Fat-Melting Laser Distributor Files for Bankruptcy

Submitted by webadmin on

The Texas company that once held the license to sell the Zerona fat-melting laser machines, which offers incision-free liposuction in the offices of cosmetic surgeons, has filed for bankruptcy protection to try to keep its grip on its recently terminated licensing agreement with the laser’s manufacturer, the Wall Street Journal Bankruptcy Beat blog reported on Friday. Primcogent Solutions LLC filed for chapter 11 protection on May 20, claiming that the laser’s manufacturer misled company officials into thinking that roughly 600 lasers were out in the market and generating revenue when the two groups entered into a licensing and distribution deal in late 2011. Primcogent officials said in court papers that the Zerona laser users later began returning them sooner than they expected, making it tough for the company to make payments on a $12 million loan and the royalty payments owed to the laser’s manufacturer, Erchonia Corp.

Printer TPO Hess Holdings Files for Bankruptcy Protection

Submitted by webadmin on

TPO Hess Holdings Inc., a printer of commercial and educational materials, filed for bankruptcy protection from creditors, citing a slump in the industry and the global economic downturn, Bloomberg News reported today. The Kent, Ohio-based company, formerly known as Hess Print Solutions, today listed assets of as much as $50,000 and debt of as much as $100 million in a court filing in Delaware. After a turnaround effort, the company “continued to be adversely affected by overall macroeconomic challenges, industry wide overcapacity and increased pricing pressure” from competitors, according to court papers. The company plans a sale to Bang Printing of Ohio, subject to an auction, for about $19.2 million, court papers show.

KidsPeace Files Bankruptcy Blaming Government Spending Cuts

Submitted by webadmin on

KidsPeace Corp., the owner of a nonprofit psychiatric hospital for teenagers in Pennsylvania, filed for bankruptcy, blaming government spending cuts for its financial woes, Bloomberg News reported yesterday. The company will try to use bankruptcy to reduce its bond debt to $24 million from $51.3 million and to trim pension obligations that may exceed $100 million, according to an affidavit filed yesterday by Chief Executive Officer William R. Isemann. KidsPeace owes creditors more than $100 million and has assets valued at less than $50 million, according to its chapter 11 filing.

Paulson Hedge Fund Puts Hotel Unit in Bankruptcy to Escape Lawsuit

Submitted by webadmin on

Billionaire investor John Paulson has put a real estate unit of his hedge fund into bankruptcy to thwart a lawsuit by a lender that claims it is owed tens of millions of dollars related to the recent sale of several luxury resorts, Reuters reported yesterday. According to court filings on Wednesday, MSR Hotels & Resorts Inc. sought chapter 11 protection from creditors to sell its remaining assets and wind down. MSR in February won court approval to sell four resorts to the Government of Singapore Investment Corp. sovereign wealth fund for $1.5 billion, including assumed debt, court papers show.

Skinny Nutritional Corp. Files for Chapter 11

Submitted by webadmin on

The maker of the zero-calorie nutritional drink Skinny Water is seeking to fatten up its coffers, filing for bankruptcy amid a lack of funding and facing the loss of its trademarks, Reuters reported today. Skinny Nutritional Corp. filed for Chapter 11 protection last week and announced the filing yesterday amid a clamor from some consumers and investors for information about the status of the company. The company listed about $3 million in assets and $6 million in liabilities, but a budding dispute with its lender, Trim Capital, could make for a contentious case. In Wednesday's statement, Skinny said that it entered a $15 million financing deal with Trim last year but received only $1.27 million of the money. Skinny alleged that Trim "failed to complete" its obligations, then began foreclosure proceedings that would have forced Skinny to turn over its intellectual property assets to Trim in the absence of a bankruptcy filing.

Oreck Corp. Files for Bankruptcy Goes Up for Sale

Submitted by webadmin on

Oreck Corp., the Nashville, Tenn.-based manufacturer of upright vacuums and other cleaning products, has filed for chapter 11 protection and is looking for a buyer, the Tennessean reported today. Oreck said that despite the filing, the company will continue daily operations without interruption. Oreck laid off an undisclosed number of employees at the end of January, as well as in October 2012. At the time, CEO Doug Cahill said that the layoffs were not a cost-cutting maneuver, and were instead a result of a shift away from the company's traditional emphasis on direct sales. Oreck has about 70 employees in the corporate office in Nashville, and it employs 250 workers at its plant in Cookeville. In addition, the company has about 325 employees at its 96 company-owned retail stores. The company said that it anticipates that after the sale, plant operations and corporate headquarters will stay in Tennessee.

Videogame Developer TimeGate Files for Bankruptcy Looks for Buyer

Submitted by webadmin on

TimeGate Studios Inc., a video game developer behind “Section 8” and “Aliens: Colonial Marines,” has filed for bankruptcy and has put its business on the auction block after an appellate court reinstated a $9 million judgment against the company, the Wall Street Journal reported on Saturday. TimeGate’s lenders have agreed to serve as the stalking-horse bidder for an auction of the company’s assets in a deal valued at $2.6 million. The purchase price, which must include at least $150,000 in cash, is subject to higher bids at a bankruptcy auction.

U.S. Electric Car Maker Coda Files for Bankruptcy

Submitted by webadmin on

U.S. electric car startup Coda Holdings Inc. filed for chapter 11 protection yesterday after selling just 100 of its all-electric sedans, Reuters reported yesterday. The bankruptcy filing will allow the Los Angeles-based company to exit the auto sector and refocus on energy storage, a far less capital-intensive business. The company uses the same technology it used in cars to build systems for utilities and building operators to store power. A group of lenders led by Fortress Investment Group LLC plan to extend debtor-in-possession financing and will seek to acquire the company for $25 million through the bankruptcy process, Coda said in a statement.