Category Archives: Bankruptcy

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OSHKOSH - Even as its parent company struggles through a messyChapter 11 restructuring, managers of the Menominee Nation Arena are pressing on with the venue's goal ofcarving a unique niche in the region's crowded entertainment space.

That includesarena staff distancing itself from its ownership group, most notably Greg Pierce, president of Fox Valley Pro Basketball Inc.

Its marketing manager recently took to social media to thank the community for its support,remind patrons the arena is open for business and noted the facility is under a new management structure.

Jason Fields, the arena's general manager, said Pierceno longer oversees any operations. Fields sees the bankruptcy as a way to restructure the company by instilling new budgetary practices and properly managing finances.

"To be real honest about it, it hasn't really hindered me too much," Fieldssaid. "It's a little bit of a clean slate."

RELATED: Tesla canceled, other shows rescheduled at Menominee Nation Arena

RELATED: Menominee Nation Arena owner may borrow up to $200,000 from sister company to stay open

RELATED: City documents shed light on negotiations as financial strain beset Menominee Nation Arena

Pierce hired two prominent community insiders to run the venue, starting with the former longtime head of the Oshkosh Convention and Visitors Bureau, Wendy Hielsberg, and later turning to a sitting member of the Oshkosh Common Council, Deb Allison-Aasby.

After Allison-Aasby departed,Pierce hired Fields and began handing off operations to him in May, Fields said. At the same time, thecompany's finances began to unravel, culminating with lawsuits by Bayland Buildings Inc. and other contractors and an eventual bankruptcy filing last month.

Jason Fields(Photo: Courtesy of Menominee Nation Arena)

"From my end, I had to sort of demand silence because we can't answer questions (about decisions) that we had nothing to with," Fields said of the arena's 150 employees. "There are not a lot of people that were in here in managerial positions that were involved with any of the (previous) GMs anymore."

Fields said it's not uncommon for large venues to undergo restructuring under Chapter 11 bankruptcy protection, pointing to Red Lion HotelPaper Valley in Appleton, whose parent company also filed for Chapter 11 in late July.

Fox Valley Pro Basketball, which owns and operates the arenais the subject of several lawsuits from investors and other creditors, who say the company owes millions of dollars for construction, public relations and marketing work and legal services.

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Late last month, afederal judgeallowed Pierce to loan the arena up to $200,000 for ongoing operations. The money came fromWindward Wealth Strategies Inc., a company Pierce also heads.

In a statement issued Sept 6, a group of unnamed arena employees, referring to themselves as "the internal team" separate from "the ownership," pleaded with the community to continue supporting the sports and entertainment venue.

"We understand that recent changes have caused quite a discussion in the community and we want to connect with you and be a part of the conversation," the statement reads in part. "We have a strong internal team that operates the arena on a daily basis. This team is made up of local community members, just like you, working hard behind the scenes to create a legendary space for live engagements here in Oshkosh."

Opening as the 10th largest indoor concert venue in the state in December 2017, organizers then said the plan was to bring in about six regional and national performers each year.

The first year then featured two big-name comedians in Jeff Foxworthy and Larry the Cable Guy, more than a half-dozen concerts including Gladys Knight and Peter Cetera, and a sprinkling of sports entertainment events. The 2019 calendar was shaping up in a similar fashion until the recent cancellation or postponement of visits from Tesla, Buckcherry, Kareem Abdul-Jabbar and Rodney Atkins.

There are few events listed on the arena's schedule this fall. However,it is also home to the Wisconsin Herd, the NBA G League affiliate of the Milwaukee Bucks. The team's new season starts Nov. 8, including 24 home games in Oshkosh.

RELATED: Menominee Nation Arena: Rodney Atkins concert rescheduled; male review, Glo game added

RELATED: ACW Wisconsin sues Oshkosh arena owner over $30,000 in unpaid ticket sales, promotions

RELATED: City suspends tax rebates to Menominee Nation Arena, Bucks remain committed to Oshkosh

The arena jumped into a crowded entertainment scene along the Interstate 41 corridor from Green Bay to Fond du Lac. Venues from the Resch Center and Weidner Center in the Green Bay market to the Fox Cities Performing Arts Center in Appleton are among those regularly bringing in national attractions.

Lambeau Field can now be counted on for a huge show almost every summer about 50,000 saw Paul McCartney this year and Fox Cities Stadium in Grand Chute has welcomed about 8,000 people for summer concerts in recent years.

Terry Charles, senior corporate communications manager for PMI Entertainment Group (which manages the Resch Center and Meyer Theatre), said the entertainment business is tough and it takes years to learn what does and doesnt work in a market. And even then sometimes there are surprise hits or flops.

"There's definitely more competition, I would say, today for the entertainment dollar than there was when I started 20 years ago," Charles said.

Smaller spaces like The Grand Oshkosh, Green Bay Distillery and the Meyer Theatre also compete for those same dollars and, to an extent, bookings. Many communities also have free weekly concerts outside during the summer. And on a grander scale, Oshkosh welcomes tens of thousands of people to Ford Festival Park for Country USA and Rock USA every year.

Mike Dempsey(Photo: Contributed)

As far as the arenas most direct competition, the Oshkosh summer staple Waterfest at the Leach Amphitheater might be it. The two venues are within walking distance of each other. Both bring in known hitmakers from the '60s, '70s and '80s. Both can host crowds in the 4,000 range.

Still, only a few arena bookings 38 Special, Starship, Foghat and Tesla fit the Waterfest mold. Mike Dempsey, who has steered the series for more than 30 years, said the arena's arrival has only had a minimal impact.

"Nothing really negative," Dempsey said. "We think it's good. They're marketing the community in a different way. To a certain extent we compete for the same acts that are out there at a certain time and place, but other than that, if they're marketing Oshkosh, great."

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Read or Share this story: https://www.thenorthwestern.com/story/news/2019/09/16/oshkosh-menominee-nation-arena-bankruptcy-employees-seek-support-entertainment-venue/2266575001/

Excerpt from:

Menominee Nation Arena employees distance themselves from owner, continue mission despite bankruptcy - The Oshkosh Northwestern

South Arkansas bankruptcies by county for the week ended Tuesday, September 17, 2019, according to the United States Bankruptcy Court for the Western District of Arkansas.

Lafayette

Lazerick Parrish and Latresa Parrish, 405 Main St., Stamps; Chapter 13; bankruptcy filed September 9.

Nevada

Mercy May Carrigan, 708 Bryant St., Prescott; Chapter 13; bankruptcy filed September 6.

Steven Jonathan Carlton, 5405 Hwy 278, Rosston; Chapter 13; bankruptcy filed September 12. He should not be confused with his father, Steven Joe Carlton.

Ouachita

Shirley C. Morgan, P.O. Box 1243, Camden; Chapter 7; bankruptcy filed September 6.

Aaron Michael McMahen, 2430 Old Wire Rd, Camden; Chapter 13; bankruptcy filed September 13.

Union

Peggy Edwina Doster, 319 W Cook St., El Dorado; Chapter 7; bankruptcy filed September 9.

Rochelle Carlotta Hicks, 243 Union Lane, El Dorado; Chapter 13; bankruptcy filed September 13.

Sheila M. Monk, 601 W. Cedar St., El Dorado; Chapter 13; bankruptcy filed September 16.

Katrina Leann Massey, 703 E. 10th St., Smackover; Chapter 13; bankruptcy filed September 16.

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South Arkansas bankruptcies for the week ended Tuesday, September 17 - Magnoliareporter

States have been divided over whether Purdue Pharma should be allowed to use Chapter 11 protection as part of a $10 billion settlement. But Tennessee Attorney General Herbert Slatery says the state needs that money now to address effects of the opioid crisis, like funding addiction treatment and buying overdose reversal drugs.

"Its not just the traditional dollar settlement on a claim that could sit out there forever and ever," he tells WPLN. "This has some real, public health urgency to it."

Hear the radio version of this story by clicking the play button.

Tennessee is among the29 statesthat signed onto the settlement as Purdue filed for bankruptcy Monday.

But Pennsylvanias attorney general called it a "slap in the face" because the companys owners admit no wrongdoing and keep some of their fortune. New York and Connecticut have also refused to go along with the settlement.

Its unclear how much money states will divvy up from Purdue's bankruptcy. There are also more than 2,000 cities and counties that are participating in the settlement.

Its also unknown whether theyll be required to use it for addiction-related expenses. Slatery says state attorneys general may be best positioned to make sure the money is used as intended.

"The way we've approached it is that the most money should go to the parties that have the most need and have experienced the most difficulty the most deaths, the most opioids prescribed in their region," Slatery said. "The bad news for Tennessee is we have suffered significantly."

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Tennessee Is Content With Purdue Pharma Bankruptcy If It Speeds Up Payouts - WKU Public Radio

Romanik

EAST ST. LOUIS Declaration of bankruptcy by four AM radio stations has halted an investigation of their possible control by shock jock Bob Romanik, who calls himself the Grim Reaper of radio.

A judge in Washington stayed proceedings on Entertainment Media Trusts licenses on Sept. 12, a day after the trust filed a petition in bankruptcy court.

Lawyers who requested the stay for the trust suggested surrender, with references to involuntary transfers, liquidation, and subsequent license applications.

In other words, in this instance a stay may better position this matter to be resolved expeditiously than a continuation of the proceeding without delay, the lawyer for the trust wrote.

The Federal Communications Commission and St. Clair County board chairman Mark Kern oppose renewal of the licenses.

They suspect the trust conceals Romaniks control.

He has represented for nine years that others control the stations, which he cant control because he is a convicted felon, having served time for bank fraud and obstruction of justice.

Entertainment Media Trust acquired the stations from 2006 to 2010, with Romaniks son Stephen Romanik officially controlling the trust as beneficiary.

Belleville lawyer Dennis Watkins officially shared control as trustee.

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Kern petitioned the communications commission to deny renewal of the licenses in 2012, as an individual rather than a public official.

Watkins responded by calling Kern an aggrieved party with a personal vendetta against Robert Romanik for his exercise of free speech.

He accused Kern of character assassination on a person who was not a trust employee, much less a secret controlling influence on the stations.

Watkins wrote that Romanik formed the trust in 2006, as a vehicle to benefit his son.

As such, Bob Romaniks prior convictions and personal dealings are irrelevant to this inquiry, Watkins wrote.

He wrote that Stephen Romanik incorporated Insane Broadcasting in 2006.

It is engaged in the daily operation of the stations and production of much of the stations programming, Watkins wrote.

He wrote that no love was lost between Kern and Romanik.

However, bad blood is not a legal justification for the commission to deny a license renewal application, he wrote.

To be frank, Bob Romanik simply is an outsized personality and a natural promoter who enjoys having a radio show and supporting, in that small way, his sons business.

Stephen Romanik died in 2015.

Watkins proposed to transfer the trusts beneficial interest to Katrina Sanders, who shares a Belleville address with Romanik.

Kern, whose petition to deny renewal remained pending, petitioned to deny it due to the change in beneficiaries.

Mr. Kern doesnt like criticism, and is trying to silence Robert Romanik from criticizing him, Watkins responded.

This June, the commissioners announced that they referred Entertainment Media Trust to an administrative law judge for a hearing.

They stated that they found significant evidence for Romaniks control.

They stated that he established the trust and provided all funds for acquisition of the stations, but was not listed as a party in license applications. They stated that he identified himself as a radio station owner, assigned the trusts interests to his girlfriend, and negotiated a marketing agreement.

They also stated that the trust instrument didnt contain provisions insulating him from ownership, as commission rules require.

On Aug. 20, the commission asked the trust for documents about communications among Bob Romanik, Stephen Romanik, Watkins, and Sanders.

On Aug. 30, on behalf of the trust, Davina Shaskin of Arlington, Va., moved to extend the time for responses.

Shaskin sent a letter to administrative law judge Jane Hinckley Halprin on Sept. 3, advising her that this proceeding forced the trust to consider bankruptcy.

It is meeting with bankruptcy counsel today to evaluate its options, Shaskin wrote.

Halprin granted a short extension, and Shaskin filed responses on Sept. 10.

On many requests, she wrote that there were no documents because none of the communications were rendered in writing.

On a request for all payments the trust made to Insane Broadcasting, she wrote that no documents were available.

She pledged to produce such documents as soon as they might be obtained.

She made the same pledge about Insane Broadcastings reimbursement of the trusts repairs and improvements.

She objected to a request for documents showing Insane Broadcasting pays all costs for the stations, writing that the documents arent in the trusts custody.

On Sept. 11, Jerry Graham of OFallon filed the trusts bankruptcy petition.

He valued the licenses at $2 million and accounts receivable at $15,950.

He showed liabilities of $99,632 for Shaskins services, $6,989 for Washington lawyer Anthony Lepore, and $14,875 in a communications commission lien.

The liabilities add up to $121,496, about a seventeenth of the assets.

On Sept. 12, Bankruptcy Judge Laura Grandy ordered the trust to file a corporate ownership statement by Sept. 25.

She set a meeting of creditors on Oct. 25.

Read the original here:

Media trust believed tied to Grim Reaper files bankruptcy amid FCC investigation - Madison County Record

With a pending sale due for approval any day, Daly Citys hospital that largely serves low-income patients and seniors is no longer in immediate danger. But the instability still has staff and patients anxious about its long-term future after all, it was in the same position just four years ago.

The owner of Seton Medical Center, Verity Health, declared bankruptcy in August 2018, setting off a panic about what would happen to the safety-net hospital that roughly 27,000 people in southern San Francisco and northern San Mateo County rely on for emergency services. About 80 percent of those are MediCal and Medicare patients, who would have to travel farther for care even in life-or-death emergencies. Its also the largest employer in Daly City.

By January, Strategic Global Management, a subsidiary of KPC Group of Companies, emerged as the sole bidder, offering $610 million for Veritys four hospitals: Seton in Daly City, another Seton in Moss Beach, and two in Southern California. The California Attorney Generals Office held a public meeting in August and is expected to lay out its final sale conditions this fall, according to San Mateo County Supervisor David Canepas office. A judge approved the bid earlier this year.

We were pleased to participate in four separate public meetings in the communities surrounding all four hospitals being acquired by SGM, said spokesperson Jeff Corless in a statement. The meetings had broad employee, physician, elected official and community stakeholder participation. The consistent theme was, save our community hospital. That remains our top priority.

When Verity bought the hospital system from Daughters of Charity in 2015, the Attorney General imposed conditions which were designed to keep the hospital operating for at least 10 years. Just three years later, however, the hospital declared bankruptcy. Phoebe Minkler, a Seton nurse of 9 years, says colleagues are wearier this time around and less willing to stick around which makes it harder to train staff for the long haul.

A lot of people are scared about the future, says Minkler, whos represented by the California Nurses Association. We just heard this a few years ago its more promises. Were left in a kind of lurch again.

Minkler and her coworkers would like SGM to commit to investments like reopening labor delivery and establishing the cancer unit that Verity promised. But theyre also just hoping the hospital doesnt lose services at this point, and for the new company to commit to the seismic retrofits needed through 2030 that would signal a long-term investment running the property as a hospital.

Though the City Council of Daly City approved a resolution in 2018 to keep the land zoned for hospital use, fears remain that developers are eyeing the 32-acre site for lucrative housing. Extending the sale conditions another five years and following through on the retrofit would better ease those fears, says the National Union of Healthcare Workers, which represents about half of Seton workers.

The top priority for Seton workers is keeping the hospitals open with no decrease in medical services for the surrounding communities, said NUHW Research Director Fred Seavey in a statement. Were ready to work with the prospective owner to make that a reality, but its hard not to have concerns when the company has not committed to keeping the hospitals open long-term or seismically retrofitting Seton Medical Center.

Minkler and another Seton staffer, Rosalie Zamora, say patients have asked if the hospital is closing. Keeping Seton running at full speed is a matter of life or death to many, including longtime Daly City resident Elaine Villasper. Her family has gone to Seton for services since the 1990s but it became a lifeline for Villasper when she went into septic shock days after developing an infection during childbirth. She spent a week in the ICU recovering from organ failure and a stroke and was told that if they went to a hospital farther away, she may not have survived.

The doctors, nurses, and other medical staff provided great care to me and my family and I owe my life to them, says Villasper, who supports NUHW demands. A hospital is a key part of any community, and it would be detrimental not only to the workers, but to our city if the hospital was not able to provide its services.

Even with Setons future more secure than it was a year ago, Canepa feels a long-term fix is needed to the inequities of hospital services in San Mateo County. Hes starting to look at surcharges on for-profit hospitals concentrated in the southern, wealthier parts of the county to prevent financial strain on safety-net hospitals like Seton or the public San Mateo Medical Center.

Whats really fascinating to me is the schism between the haves and the have-nots, Canepa says. Daly City is really the symbol for that. We have a lot of MediCal and Medicare [patients], where are they going to go?

See the rest here:

Daly City Hospital Survives Bankruptcy Again, But For How Long? - SF Weekly

Insys Therapeutics has been given the green light to sell its Subsys opioid product the focus of racketeering charges that forced the company to file for bankruptcy to BTcP Pharma.

Back in June, Insys became the first company to file for bankruptcy in connection with the US opioid epidemic, shortly after agreeing a $225m payment to settle charges it bribed doctors to prescribe Subsys.

Since then, Purdue Pharma has also filed for Chapter 11 protection as it tries to secure agreement for a massive $10bn-$12bn settlement relating to its alleged role in the opioid crisis, while Mallinckrodt has also been reported to be at risk as it tries to pursue its own settlement deals.

Subsys is a sublingual spray formulation of fentanyl, a highly-potent opioid analgesic that is approved to treat end-stage cancer pain, and is being sold to try to raise cash to satisfy creditors and provide funds for settlement of thousands more outstanding lawsuits.

Earlier this year, five former Insys executives including founder and chairman John Kapoor were convicted of racketeering conspiracy after being found guilty of encouraging widespread, off-label use of the product by providing inducements to doctors.

Wyoming-based BTcP Pharma, which is part of the MMB Healthcare network of pharmaceutical companies, has agreed to take over the sale and distribution of the drug and pledged to only market the drug for use in its approved indication.

It will also take on limited debts related to the Subsys product, but wont assume liability for fines, judgments, settlements or other liabilities owed to the Department of Justice or other governmental entity in other words the $225m federal settlement.

Insys will receive a 45% royalty rate on profits from Subsys, which it estimates could reach around $20m only a fraction of the amount being sought by claimants that also include states, municipalities and Native American tribes, as well as to insurers and hospitals affected by the racketeering.

The company estimates that its potential liabilities could be as high as $4bn, far in excess of any amount raised during its liquidation.

Other assets held by the company include Syndros, a liquid dronabinol product approved for chemotherapy-induced nausea and vomiting in patients who dont respond to other drugs, as well as a naloxone nasal spray formulation and a sublingual spray formulation of buprenorphine in development. The buprenorphine spray product was however rejected by the FDA last year.

Link:

Insys gets bankruptcy court okay for Subsys sale - PMLiVE

Photo: John Davenport /San Antonio Express-News

San Antonio-based iHeartMedia Inc. edged closer to bankruptcy as it released second-quarter results Wednesday.

San Antonio-based iHeartMedia Inc. edged closer to bankruptcy as it released second-quarter results Wednesday.

From oil giants and soda icons to airlines and retailers, click through to see the top 50 Texas-based companies that landed on the Fortune 500 list in 2017.

From oil giants and soda icons to airlines and retailers, click through to see the top 50 Texas-based companies that landed on the Fortune 500 list in 2017.

4. Exxon Mobil Irving

4. Exxon Mobil Irving

9. AT&T Dallas

9. AT&T Dallas

34. Phillips 66 Houston

34. Phillips 66 Houston

37. Valero Energy Corp.San Antonio

37. Valero Energy Corp.San Antonio

41. Dell TechnologiesRound Rock

41. Dell TechnologiesRound Rock

57. Sysco Houston

57. Sysco Houston

67. American Airlines Group Fort Worth

67. American Airlines Group Fort Worth

79. Energy Transfer Equity Dallas

79. Energy Transfer Equity Dallas

102. United Services Automobile Association (USAA) San Antonio

102. United Services Automobile Association (USAA) San Antonio

115. ConocoPhillips Houston

115. ConocoPhillips Houston

117. Tesoro Corp.San Antonio

117. Tesoro Corp.San Antonio

122. Enterprise Products Partners Houston

122. Enterprise Products Partners Houston

134. Tenet Healthcare Dallas

134. Tenet Healthcare Dallas

138. Southwest Airlines Dallas

138. Southwest Airlines Dallas

141. Plains GP Holdings Houston

141. Plains GP Holdings Houston

149. Fluor Corporation Irving

149. Fluor Corporation Irving

155. Kimberly-Clark Irving

155. Kimberly-Clark Irving

173. Halliburton Houston

173. Halliburton Houston

176. Whole Foods Market Austin

176. Whole Foods Market Austin

201. Waste Management Houston

201. Waste Management Houston

206. Texas Instruments Dallas

206. Texas Instruments Dallas

215. Kinder Morgan Houston

215. Kinder Morgan Houston

221. J.C. Penney Plano

221. J.C. Penney Plano

232. D.R. Horton Fort Worth

232. D.R. Horton Fort Worth

259. Jacobs Engineering GroupDallas

259. Jacobs Engineering GroupDallas

261. Group 1 Automotive Houston

261. Group 1 Automotive Houston

274. Holly Frontier Dallas

274. Holly Frontier Dallas

278. Occidental Petroleum Houston

278. Occidental Petroleum Houston

285. Baker Hughes Houston

285. Baker Hughes Houston

289. Huntsman Corp.The Woodlands

289. Huntsman Corp.The Woodlands

306. CST Brands San Antonio

306. CST Brands San Antonio

321. GameStop Grapevine

321. GameStop Grapevine

344. Anadarko Petroleum The Woodlands

344. Anadarko Petroleum The Woodlands

349. Western Refining El Paso

349. Western Refining El Paso

351. Dean Foods Dallas

351. Dean Foods Dallas

355. Quanta Services Houston

355. Quanta Services Houston

356. EOG Resources Houston

356. EOG Resources Houston

362. CenterPoint Energy Houston

362. CenterPoint Energy Houston

375. National Oilwell Varco Houston

375. National Oilwell Varco Houston

378. Alliance Data Systems Plano

378. Alliance Data Systems Plano

399. Yum! Brands Plano

399. Yum! Brands Plano

400. Calpine Houston

400. Calpine Houston

402. Targa Resources Houston

402. Targa Resources Houston

416. Dr Pepper Snapple Group Plano

416. Dr Pepper Snapple Group Plano

421. Builders FirstSource Dallas

421. Builders FirstSource Dallas

426. iHeartMedia San Antonio

426. iHeartMedia San Antonio

484. Celanese Corporation Irving

484. Celanese Corporation Irving

488. Apache Houston

Originally posted here:

iHeartMedia edges closer to bankruptcy with $174 million 2Q loss - mySanAntonio.com

BBC News

South African Airways 'is on verge of bankruptcy' - BBC News BBC News South African Airways (SAA) has run out of money and is teetering on the edge of bankruptcy, according to information given to the country's parliament. and more »

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South African Airways 'is on verge of bankruptcy' - BBC News - BBC News

A St. Louis judge has accepted Payless Shoesources plan for reorganization, a move that will help the company achieve its goal of leaving bankruptcy by August with a significantly lighter debtload.

Payless spokeswoman Meghan Spreer said the company is not commenting on the plan until everything is finalized, but should have a statement within the next few weeks.

Chief Judge Kathy A. Surratt-States, U.S. Bankruptcy Court for the Eastern District of Missouri, approved the plan last week.

Payless entered bankruptcy in April with $838 million in debt. Senior lenders owed $506.3 million will receive a 91 percent equity stake in the company, while junior lenders, owed $145 million, will receive the remaining nine percent, according to bankruptcy documents.

General unsecured creditors will receive pennies on the dollar for their debt.

Many Topeka companies hold Payless debt, but most refused to discuss the impact it, saying they hoped to continue to do business with Payless.

Since the announcement, Payless has treated us professionally and fairly. We are hoping to continue a strong relationship with them going forward, said Paul Bossert, president of Premier Employment Solutions.

According to bankruptcy filings, Premier was owed $12,483, while another associated company, Premier Personnel Inc., was owed $7,363.

Amounts owed to Topeka businesses varied considerably, from just $150 owed to Harvesters of Topeka to $31,570 owed to Stacks LLC and $139,041 owed to ISS Facility Services of Topeka.

Bettis Asphalt &Construction was left with a bill of $23,300, confirmed Rich Eckert, the companys general counsel. The bill was for one job finished in December 2016. Eckert said the company probably will be paid $4,000 to $5,000 on the debt.

These were loading dock repairs out at their warehouse, he said. The part that burns us is that more than likely, they knew they were taking this bankruptcy while we were out there working, knowing that we would never get paid. Thats a hard pill to swallow.

Eckert said bankruptcies were more frequent during the recession and that, fortunately, its not something Bettis runs into frequently.

While some local companies werent owed dollars when Payless filed bankruptcy, they are missing the business they did with the company and are hopeful the reorganization sets Payless up for a successful future.

We didnt have any loss except for we arent continuing to print for them, said Janice Salsbury, bookkeeper for Capital Graphics. We have missed their business because they are a good client, friendly, easy to work with. Were sorry because its a major business in Topeka.

Go here to read the rest:

Payless Shoesource bankruptcy plan approved by court, paving way ... - Topeka Capital Journal

Photo A Lehman Brothers company sign being brought into Christies auction house in London for a sale in September 2010. Credit Ben Stansall/Agence France-Presse Getty Images

Judge Shelley C. Chapman of the Federal Bankruptcy Court in Manhattan has issued an opinion that provides an important reminder for employees throughout the United States who participate in deferred-compensation plans.

The opinion is from the long-running Lehman Brothers bankruptcy, but it applies to employees of all sorts of companies.

In short, the tax benefits you get from a deferred-compensation plan are not free, and by deferring compensation, you are taking on the credit risk of your employer.

In 1985, Shearson Lehman Brothers Inc. which later became Lehman Brothers Inc., Lehmans regulated broker-dealer established the deferred-compensation plan. In the plan, each employee agreed that:

the obligations of Shearson hereunder with respect to the payment of amounts credited to his deferred-compensation account are and shall be subordinate in right of payment and subject to the prior payment or provision for payment in full of all claims of all other present and future creditors of Shearson whose claims are not similarly subordinated.

The wording not only gives us some insight to gender issues on Wall Street in the 1980s, but also drives home the point that the employers obligation to pay the deferred compensation is an unsecured obligation. In this case, a deeply subordinated one. These employees were no better than subordinated bondholders of Lehman Brothers.

The employees had several novel arguments for why they should, at least, get out from under the subordination provision in the agreement, but the court rejected them all. The court also rejected the argument that Lehmans alleged breach of the deferred-compensation agreement would remove the employees obligation to subordinate their claims. The court explained that unlike an ordinary contract dispute, the present case involved the simple question how to treat the employees claim in bankruptcy.

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Lehman Bankruptcy Ruling Shows Risk of Deferred Compensation - New York Times