Category Archives: Bankruptcy

Pittsburgh Post-Gazette

Pittsburgh Athletic Association bankruptcy documents show iconic Oakland club overwhelmed by debts Pittsburgh Post-Gazette The documents filed late last week in U.S. Bankruptcy Court in Pittsburgh listed more than 100 creditors, ranging from federal, state and city tax collectors and employee pension funds, to utility companies, insurance firms, law firms, food vendors and ...

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Pittsburgh Athletic Association bankruptcy documents show iconic Oakland club overwhelmed by debts - Pittsburgh Post-Gazette

Bridal retailer Alfred Angelo broke its silence on Thursday after filing for bankruptcy protection last month, informingbrides nationwide they wont be receiving the wedding dresses they ordered from the national chain.

On a statement posted to the companys website, the trustee for the firmsaid after evaluating its options the retailer would be unable to fulfill remaining customer orders.

The Chapter 7 Trustee greatly regrets the upset that Alfred Angelos July 14 bankruptcy filing has caused its customers, the statement said. While we have been successful in obtaining customer records and delivering many dresses and accessories for customers all over the country, even after the bankruptcy filing date, it has now become apparent that the logistical and financial strain of fulfilling each and every open order makes continuing that course of action no longer possible.

Thus, to the extent any order has not been fully delivered to a customer, it shall have to remain unfilled.

The company went on to advise customers who think they are owed money from the company to submit a form with this link.

The announcement represented the first public statement by the bridal chain since it abruptly closed its stores on July 13 with no notice, sending brides nationwide into a panic during the traditionally busy summer season.

At the time, company employees said they were given no warning of the stores impending closure. They were told that morning the store would close at the end of the business day. Managers were instructed to return their keys after closing time. Employees had encouraged customers to call the companys customer service line, which went to voice mail when the Post had tried at the time.

Competitors like Davids Bridal have capitalized on Alfred Angelos closing, offering special deals to affected brides and wedding parties that wouldnt have their orders fulfilled.

Based inDelray Beach, Fla., the company was founded in 1933 by Alfred Angelo and his wife, Edythe Piccione, in Philadelphia. In the 1960s, their children, Vincent and Michele Piccione, began running the company, which they would do for the next 35 years. It was underthe childrens leadership that the company expanded itsretail stores across the country.

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This shuttered bridal chain can't bring customers' orders to the altar - Washington Post

Wall Street Journal (subscription)

Sears Canada's Largest Stockholders Call Off Joint Bankruptcy Bid Wall Street Journal (subscription) Eddie Lampert and Bruce Berkowitz called off a potential joint bankruptcy deal for Sears Canada Inc., clearing the way for other bidders to challenge its two largest shareholders. The two hedge-fund managers on Friday terminated a joint legal ... and more »

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Sears Canada's Largest Stockholders Call Off Joint Bankruptcy Bid - Wall Street Journal (subscription)

Westinghouse Electric Co. has finalized its business plan, but its strategy is not yet ready for prime time, the bankrupt nuclear technology firm said in a court filing on Wednesday.

Cranberry-based Westinghouse asked a New York bankruptcy judge to allow the company an extra three months to file a reorganization plan.

Westinghouse filed for bankruptcy protection in late March in an attempt to wall off its profitable businessessuch as servicing operating nuclear plants and supplying them with fuel from its spiraling and money-losing involvement in the construction of four new nuclear power plants in Georgia and South Carolina.

Less than four months (later), Westinghouse has made substantial progress toward achieving these goals, the company said in court records.

Given the complicated nature of the business the company hasthousands of vendors, some 37,000 creditors and five different business lines that serve more than half of the nuclear power plants in the world -- more time is needed, Westinghouse said.

While Westinghouse was able to strike a deal for Southern Co., the parent of the Vogtle project in Georgia, to take over the construction of the nuclear power plants there, it is still negotiating with Scana Corp., which owns the V.C. Summer project in South Carolina.

Companies in bankruptcy have a 120-day exclusivity period to come up with a reorganization plan and another 60 days to try to gain approval of it without worrying about creditors or others introducing competing plans. Westinghouse is seeking to extend both deadlines until Dec. 6 and Feb. 4, 2018, respectively.

Spokesperson Sarah Cassella said the extension has been anticipated since the outset of our Chapter 11 cases, and has no practical impact on Westinghouses day-to-day operations.

The company delivered a business plan to its bankruptcy lenders on Thursday -on schedule, Ms. Cassella said.

In a related filing on Wednesday, Westinghouse also asked for more time to decide the fate of 60 property leases, including for space at its Cranberry headquarters, and others in Warrendale, Youngwood, Monroeville, New Stanton and Pittsburgh.

A hearing on these motions is scheduled for Sept. 7.

Anya Litvak: alitvak@post-gazette.comor 412-263-1455.

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Westinghouse needs more time in crafting bankruptcy plan - Pittsburgh Post-Gazette

SunEdisonInc. won final court approvalTuesdayof a bankruptcy-exit plan that wipes out billions of dollars in investments and renders the one-time renewable energy darlinga shadow of its former self.

Following a hearing at theU.S. Bankruptcy Court in New York,Judge Stuart Bernsteinsaid he would approve the plan, the culmination of nearly 15 months of hard-fought negotiations betweenthe solar-power developerand its creditors.

SunEdison SUNEQ, +25.23% is expected to formally emerge from bankruptcy byNov. 15, according to its lawyers.

The vast majority of objections to the bankruptcy-exit plan were resolved ahead ofTuesdayshearing.AQR Capital Management LLC, which pressed its objectionTuesdaybut wasoverruled, sought modifications to the plan because of a dispute over a $300 million rights offering, funding that the company says will serve as the backbone of its exit from chapter 11.

An expanded version of this report appears on WSJ.com.

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SunEdison wins final approval for bankruptcy exit - MarketWatch

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Toshiba Bankruptcy Filing Pushed by Some Involved in Workout - WSJ Wall Street Journal (subscription) With Toshiba's effort to raise cash by selling its chip unit stalled, a number of creditors and others involved in its restructuring are pushing for a bankruptcy filing ... and more »

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Renewable energy company SunEdison is exiting Chapter 11 bankruptcy, but as a much smaller company.

Under the court agreement, second lien debtholders will own 90% of SunEdisons new common stock and 90% of its Class A shares, while the companys original shareholders will receive nothing, Bloomberg reports.

SunEdison declared bankruptcy after a proposed $1.8 billion merger with Vivint Solar fell apart. Running up to bankruptcy filing, SunEdison had gone on an acquisition spree and racked up $11.7 billion in debt, more than double its debt load the year before.

SunEdisons bankruptcy also prompted the sale of the companys yieldcos, specialized vehicles designed to hold renewable energy assets and pay high dividends. TerraForm Power and TerraForm Global had 2,987 MW and 917 MW of capacity, respectively. In March, Brookfield Asset Management bought TerraForm Global and a controlling stake in TerraForm Power.

In approving SunEdisons bankruptcy plan, U.S. Bankruptcy Judge Stuart Bernstein overruled the objections from shareholders and two investors. Under the court approved deal, unsecured SunEdison creditors will receive $32 million in proceeds of directors and officers insurance settlements and $18 million as a result of negotiations with the yieldcos. Secured creditors will be repaid in full with cash.

SunEdison flew too close to the sun and landed in Manhattan bankruptcy court, Nathan Serota, an analyst with Bloomberg New Energy Finance, told Bloomberg. During the Chapter 11 process, the company lost nearly all of the assets and personnel that -- for better or worse defined it in the first place.

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SunEdison secures final approval for bankruptcy deal - Utility Dive

With the bankruptcy filing of the Skip Barber Racing School now making its way through the courts, Skip Barber himself president of Lime Rock Park has issued a statement clarifying the fact that he no longer has any connection with the school he founded.

"It has come to my attention that there are some people both inside and outside the motorsport industry who erroneously concluded that the bankruptcy filing of the Skip Barber Racing School is somehow connected to me. I've even heard reports that 'Skip Barber,' referring to me, is bankrupt," said Barber (pictured above presenting the trophy at the Lime Rock IMSA race earlier this month)."I sold the school in its entirety nearly two decades ago (1999).

"I'm pretty sure I know why this happened. Since the school's founding in 1975, 'Skip Barber' became the universal shorthand for 'Skip Barber Racing School.' So when a headline reads, 'Skip Barber Files for Bankruptcy,' there are people wrongly concluding it means me.

"To be clear: I have not filed for bankruptcy. Lime Rock Park is in fine financial shape. There is nothing connected to the Skip Barber Racing School's attempt to re-organize its business under bankruptcy law that's connected to Lime Rock aside from its outstanding debt to the track.

"Lastly, I want to thank the local, national and international news outlets who, in their very first reporting of the school's bankruptcy filing, made it clear that I have no connection to the Skip Barber Racing School."

The Skip Barber Racing School announced in May that it was filing for bankruptcy protection, with debts in excess of $10m to creditors.

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Skip Barber reiterates lack of connection to racing school bankruptcy - Racer

WILMINGTON, Del./NEW YORK (Reuters) - The global recall of Takata Corp's defective air bags widened last week and the number of confirmed deaths rose, but legal experts said the bigger worry for car companies caught in the fallout is playing out in a Delaware bankruptcy courtroom.

Earlier this month, people injured by the air bags, which degrade over time and can inflate with excessive force, were appointed to their own official committee in the Japanese company's U.S. bankruptcy, giving them a powerful voice in the proceedings.

This unusual committee, which includes people whose cars lost value due to the recall, will be pitted against Honda Motor Co, Toyota Motor Corp , and other automakers.

The car companies have been trying to use the bankruptcy to limit their liability for installing the faulty air bags, said Kevin Dean, a Motley Rice attorney who represents injured drivers on the committee.

Because the committee has official status, Takata must provide it with funds which can be used to investigate the automakers' liability or to challenge financial assumptions. Without a committee, plaintiffs' lawyers would typically have to pay for that themselves.

If I were a plaintiffs lawyer, this would be a golden goose for me, said John Pottow, a professor at the University of Michigan Law School, of the appointment of the special committee.

Takata, Honda, Toyota and General Motors Co declined to comment. Other carmakers did not return requests for comment.

Bankruptcies typically only have one official creditors committee. In the Takata case, the committee of injured drivers will sit alongside another made up of suppliers and vendors, who are likely more interested in the future of the business than compensation disputes, according to bankruptcy attorneys who are not involved in the case.

Both committees were appointed by the U.S. Trustee's Office, the arm of the U.S. Department of Justice that acts as a bankruptcy watchdog.

Seventeen fatalities, including one confirmed last week, and at least 180 injuries have been tied to Takata's air bags since at least 2009.

Last week, the National Highway Traffic Safety Administration widened a global recall of the airbags, which regulators expect to ultimately cover 69 million cars and 125 million inflators. Most defective air bags have not been replaced.

In January, Takata entered a settlement with the U.S. Department of Justice, setting aside $125 million to compensate consumers and $850 million in restitution for automakers.

Facing up to $50 billion in liability, Takata filed for bankruptcy in June in Japan and the United States with a plan to sell its non-air bag operations for $1.6 billion to Key Safety Systems, which is owned by China's Ningbo Joyson Electronic Corp. Its air bag business would continue to make replacements for the 125 million recalled inflators.

Takata said in its Chapter 11 filings that it will create a fund to compensate future injuries stemming from the air bags.

Companies that wind up bankrupt due to faulty products often set up such funds, and gather contributions from insurers and other potentially liable parties, who in return get shielded from ongoing litigation.

Similar funds were set up in and the 1985 bankruptcy of A.H. Robins Co, which sold Dalkon Shield contraceptive devices and the 1995 bankruptcy of Dow Corning, the maker of silicone breast implants.

A $161 million fund in the 2012 bankruptcy of Blitz U.S.A. Inc, which made red plastic gas containers, included $23 million from Wal-Mart Stores Inc. In return, the retailer was protected from lawsuits that alleged it knowingly sold defective gas cans.

Automakers would likely demand similar legal protections in return for contributing to a Takata fund, and the committee will likely hire experts to challenge those proposals, bankruptcy experts said.

The committee's lawyers will probably also want to investigate what car companies knew about the air bags to help determine their liability and their contributions, the experts said.

If I were an injured person, I wouldnt want Takata or the carmakers to decide on the size of the fund, said Steven Todd Brown, a professor at the University at Buffalo School of Law who specializes in compensation funds.

Some experts said they expected the parties to avoid protracted legal battles which have marred other product liability bankruptcies like those involving asbestos.

Pottow, at the University of Michigan Law School, cautioned that may not be so simple.

Were in pretty novel terrain here, given the amount of parties and the recall involved.

Reporting by Tom Hals in Wilmington, Delaware and Tina Bellon in New York; Editing by Noeleen Walder and Lisa Shumaker

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Takata's bankruptcy to pit automakers against air bag victims - Reuters

EDITORS NOTE: This article is the second in a two-part series featuring the business side of the Northern Arizona Suns and their first year in Prescott Valley. We also update the bankruptcy status of the Prescott Valley Event Center, and the efforts being made to return hockey to Prescott Valley. Part one: NAZ Suns ink 5-year deal after successful 1st season

After an hour-long session at the U.S. Bankruptcy Court in Phoenix on July 12, the Prescott Valley Event Center and all interested parties are one step closer to finally moving forward from Chapter 11 bankruptcy.

Despite objections raised by a few underwriters, federal bankruptcy Judge Madeleine C. Wanslee reviewed the case, suggested a few tweaks to the disclosure statement and ordered it be sent out to over 300 creditors for a vote, according Ivan Legler, attorney for the Town of Prescott Valley.

Nothing very earth shattering. The purpose of the hearing was to review the disclosure statement that goes along with the plan document to all the creditors, Legler said. [The judge] requests the creditors vote on the plan.

Legler continued, stating Judge Wanslee reviews the disclosure statement to make sure its adequate and sufficient in detail.

A typical disclosure statement in the state of Arizona for Chapter 11 bankruptcy proceedings requests debtors review the plan of reorganization, keeping in mind the proponent feels the plan is in the best interest of the creditors and is fair and equitable.

Then its up to the debtor to accept or reject the plan.

Legler expects the disclosure statement in the PVEC LLC case should receive enough votes to move forward, but added Judge Wanslee holds the final say.

In the end, the judge can approve the plan either way, whether people vote for or against it, Legler said. The judge has a lot of authority.

NAZ SUNS

Seen as a community asset by all parties involved, PVEC general manager Scott Norton believes with the Northern Arizona Suns as anchor tenants and Spectra using its connections to bring events back to Prescott Valley, PVEC is set up for success.

We feel theres a great upside to the facility. Its a great facility, great market. We feel we can program it with more activity, Norton said.

NAZ Suns president Chris Presson said recently the Suns organization is looking forward to the PVEC emerging from bankruptcy.

There are brighter days ahead, Presson said, adding Norton understands the business fully and the building is heading for great success.

Hes been really good to work with in the short time hes been there, Presson said of Norton. Hes a very good communicator, very willing to listen, tries to see things from your side and Ive enjoyed the time Ive spent with him.

SPECTRA

Norton, who works for Spectra, a Philadelphia-based arena management company, is currently operating under a consultant contract, but once the Town of Prescott Valley takes over arena business and bankruptcy proceedings run their course, that is expected to change.

We anticipate negotiating a long-term management deal, Norton said.

Spectra operates over 140 arenas nationwide, two of which host G League teams. The Iowa Wolves (Minnesota Timberwolves) play home games at Wells Fargo Arena in Des Moines, Iowa, and the Windy City Bulls (Chicago Bulls) host their contests at the Sears Centre in Hoffman Estates, Illinois.

The Des Moines facility is also home to the Iowa Wild, an AHL club affiliated with the NHLs Minnesota Wild.

Norton said PVEC just finalized a long-term deal with Pepsi and expects other sponsors will come on board shortly. They are also looking to sell naming rights to the arena, but theres been no movement on that front.

I like to think the Suns coming here was a catalyst to all of this, Norton said. Promotors like buildings to be busy, they like to have anchor tenants Quite frankly, we just need a little bit of a track record here for [promotors] to take a risk on the market again.

HOCKEY

With Nortons first job coming with the Hartford Whalers, hed certainly like to see hockey return to Prescott Valley.

For that to happen, Norton said two things need to occur. One, there needs to be a local ownership group willing to go the distance; and two, dates for two anchor tenants would need to be worked out.

In the minor leagues, everyone wants to play on the weekends, Norton said, adding he along with Spectra continue to talk to both the AHL and the ECHL about the possibility of a club in Prescott Valley.

At one point, Norton said, there was an effort to bring the Arizona Coyotes AHL Roadrunners club to PVEC, but they chose Tucson instead due to it being a bigger market overall.

A million people in Tucson versus 150,000 up here, Norton said.

Thats a situation where the NHL team is underwriting the cost, Norton said. Yes, they want to sell tickets and be profitable, but at the end of the day its probably not the most important thing. Whereas an ECHL team youre pretty much on your own to make it or break it.

JULY 20 MEETING

Next on the agenda for PVEC and bankruptcy proceedings is a meeting Thursday, July 20, involving the Prescott Valley Town Council, the Entertainment Center Community Facilities District and PVEC LLC.

The meeting is set for 5:30 p.m.

Brian M. Bergner Jr. is associate sports editor and a columnist for The Daily Courier. Follow him on Twitter, Instagram, Periscope and SoundCloud at @SportsWriter52, or on Facebook at @SportsAboveTheFold. Reach him at bbergner@prescottaz.com or 928-445-3333, ext. 1106.

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PVEC bankruptcy moving forward after hearing in Phoenix | The ... - Prescott Daily Courier