Bankruptcy Judge Sean H. Lane yesterday approved Arcapita Bank's $175 million bankruptcy loan from Goldman Sachs Group Inc. to replace existing financing from Fortress Investment Group LLC, Dow Jones Daily Bankruptcy Review reported today. Judge Lane's approval on the financing allows Arcapita to pay off $105 million still owed to Fortress. Later, Arcapita can convert the loan into a $350 million financing package also being provided by Goldman.
Renewable Energy SD, an Excelsior seller of wind energy equipment that was sued for fraud by the Minnesota attorney general’s office, has filed for chapter 7 bankruptcy, the Minneapolis Star Tribune reported today. In its court filing on Friday seeking for liquidation, Renewable Energy listed $15.9 million in debts and $6.2 million in assets. The Minnesota attorney general’s lawsuit filed in January alleges that the company and its sole owner, Shawn Dooling sold farmers in Minnesota and elsewhere faulty wind turbines using federal stimulus money aimed at helping the country during the recession. The company either failed to deliver many of the turbines or, in some cases, erected turbines that failed to perform properly or at all, the suit says. About 15 civil lawsuits have been filed against Renewable Energy SD by its customers or suppliers.
The bankruptcy deal is done, Wayne Newton and his family are out, and the majority owner of Newton's former "Casa de Shenandoah" property said on Friday that he still wants to turn the southeast Las Vegas spread into a tourist attraction, the Associated Press reported on Saturday. Newton and his lawyers were absent when Bankruptcy Judge Bruce Markell signed off on a sealed agreement that leaves CSD LLC, headed by investors Lacy and Dorothy Harber, in charge of the 40-acre property several miles southeast of the Las Vegas Strip. Going into the settlement, which was submitted to the judge in May, the Harbers owned 70 percent of CSD LLC. Wayne and Kathleen Newton owned 20 percent. CSD Management LLC, made up of museum project manager Steven Kennedy and his partner, Geneva Clark, had a 10 percent stake.
Kelly Rutherford is broke and she's filed for chapter 7 bankruptcy listing her legal fights in divorce and child custody as the major source of her debts, TMZ.com reported yesterday. Rutherford claimed in court documents that she had assets totaling $23,937 with debts totaling $2,021,832. According to the report, Rutherford spent nearly $1.5 million on legal fees for her bitter divorce/custody war with former husband Daniel Giersch.
Ally Financial Inc.'s proposed $2.1 billion agreement reached last month with creditors of its bankrupt Residential Capital LLC subsidiary cleared a key court deadline with only one vigorous objection, though several warning shots were fired, Reuters reported yesterday. Ally agreed to the settlement last month to end allegations it stripped ResCap of choice assets including the online lender, Ally Bank, before dumping the business into bankruptcy, which left creditors empty-handed. Syncora Guarantee Inc. insured some of the mortgage-backed bonds issued by units of ResCap, which have fallen sharply in value, and it objected for a variety of reasons. Syncora alleged that ResCap did not explain how it decided to split money from the Ally settlement among different bond insurers. The Department of Justice's bankruptcy watchdog, plaintiffs in a class action and government's pension insurer also objected as the deadline passed yesterday. Several parties also let the court know that while they were not formally objecting, they were taking up positions against the yet-to-be-filed reorganization plan. ResCap plans to file a reorganization plan by July 3 that will explain in more detail how creditors will be paid. A hearing has been scheduled for June 26 before Bankruptcy Judge Martin Glenn to approve the Ally settlement plan.
Eastman Kodak Co. said that it will seek court approval for a $406 million rights offering that could give creditors a big equity stake in the company after it emerges from chapter 11 protection, Reuters reported yesterday. Kodak said that creditors agreed to backstop an offering that would let the Rochester, N.Y.-based company issue 34 million common shares at $11.94 each, equal to about 85 percent of the equity of a reorganized company. Kodak has said that it hopes to emerge from chapter 11 in the third quarter of this year.
Mexican telecommunications company Maxcom said yesterday that it was seeking to negotiate new capital and a restructuring through pre-packaged bankruptcy process in U.S. courts, Reuters reported yesterday. The company, which provides phone, Internet and television services, said that it was working on the bankruptcy plan with some of its creditors, shareholders and private equity firm Ventura Capital Privado. Separately, Maxcom said that it had failed to pay about $11 million in interest due on Monday on notes expiring in 2014.
Lenders looking to buy ATP Oil & Gas Corp.'s deep-water drilling assets have increased the cash portion of their $690 million bid, a move that could appease the bankruptcy judge overseeing ATP's chapter 11 case, Dow Jones Daily Bankruptcy Review reported today. In a court filing on Monday, lenders led by an affiliate of Credit Suisse Group AG said they would pay $55 million in cash for the assets—up from $45 million—on top of $645 million in debt forgiveness.
OnCure Holdings Inc., which provides equipment and management services to cancer clinics in three states, filed for bankruptcy blaming cuts in federal health-insurance payments, Bloomberg News reported yesterday. OnCure, based in Englewood, Colo., plans to sell itself at auction while under court protection, with an initial bid of $125 million from an undisclosed company, Chief Executive Officer Bradford Burkett said. The company listed assets of $179.3 million and debt of $250.4 million in a court filing. The case is In re OnCure Holdings, Inc., 13-bk-11540, U.S Bankruptcy Court, District of Delaware (Wilmington).
Orchard Supply Hardware Stores Corp. filed for chapter 11 protection, with rival retailer Lowe's Companies set to buy the majority of its assets for $205 million in cash, Reuters reported today. Orchard, which was spun off by Sears Holdings Corp in late 2011, said that it was carrying a high debt load and that it may not be in a position to make scheduled payments when the first tranche of its debt matures in December 2013. The company, which generated revenue of $657 million in the 2012 fiscal year, listed total liabilities of $480.1 million and total assets of $441 million, according to a court filing. The company said that Lowe's would act as the stalking-horse bidder in an auction of Orchard's assets.
