Bankruptcy & Restructuring >>>

    Journal Register Files Second Chapter 11 Petition

    Newspaper publisher Journal Register Co. returned to Chapter 11 after emerging from a prior bankruptcy reorganization three years ago. The first time, secured lenders took ownership in exchange for debt. The new lender and owner Alden Global Capital Ltd. intends also to take ownership in a debt swap. Journal Register has daily publications with a circulation of [...]

    Black’s NewPage Retreat Inflicts Bond Losses

    NewPage Corp. bondholders, speculating the company needs no help in boosting earnings in a hobbled paper market, have seen the value of their holdings dwindle by $690 million since turning down a buyout offer in May from a rival controlled by Leon Black. The largest U.S. coated-paper maker’s $1.77 billion of 11.375 percent notes due December 2014 fell 4.5 cents yesterday to [...]

    AMR Wins Approval to Reject Pilots’ Contract

    AMR Corp.’s American Airlines won court approval to throw out its labor agreement with pilots, capping the airline’s campaign to force cost cuts on the lone union it couldn’t reach a deal with on concessions. U.S. Bankruptcy Judge Sean Lane in Manhattan yesterday granted American’s request to reject the pilots’ contract, saying proposed changes to the agreement are necessary for the [...]

    Aurelius Argues Against ResCap Exclusivity Extension

    Residential Capital LLC can’t use the pending examiner’s report to justify a nine-month expansion of the exclusive right to propose a reorganization plan, Aurelius Capital Management LP argued in papers filed yesterday in bankruptcy court. Owning 8 percent of the 9.625 percent junior secured notes due in 2015, Aurelius calls itself the third-largest holder of the secured [...]

    Elpida Opposes Move

    Elpida Memory Inc. said it opposes moves by a group of bondholders to block its sale to Micron Technology Inc. because it would interfere with an “entirely fair” reorganization. The bondholders have not presented any basis for changing terms of the sale and are attempting to “interfere with the reorganization process and sponsorship arrangement” with [...]

    Patriot Coal Reports $135.6 Million July Net Loss

    Coal producer Patriot Coal Corp. filed an operating report for July showing operating costs exceeding revenue by $7.5 million. The report filed with the U.S. Bankruptcy Court in Manhattan listed $134.8 million in revenue, resulting in a $32 million operating loss and a $135.6 million net loss. Contributing to the net loss was $57.2 million [...]

    Bankruptcy & Restructuring News Roundup

    Penn Camera Assets Sold, Chapter 11 Being Dismissed  Assets having been sold early this year, the Chapter 11 reorganization for Penn Camera Exchange Inc. will be dismissed as the result of a ruling last week from the U.S. Bankruptcy Court in Greenbelt, Maryland. The camera-equipment retailer from Beltsville, Maryland, was authorized in February to sell the assets to Calumet Photographic Inc. for $250,000 [...]

    Judge Approves Broadview Networks’ Bankruptcy Loan

    Broadview Networks Holdings Inc., a provider of phone, Internet and data services for businesses, won permission to borrow as much as $16.5 million of a $25 million loan after a fund run by Carl Icahn sought more information about its reorganization plan. U.S. Bankruptcy Judge Shelley Chapman in Manhattan yesterday approved the loan from CIT Group Inc. on an interim basis to fund operations [...]

    Hostess Teamsters to Vote on Wage, Benefit Concessions

    Teamsters union members at Hostess Brands Inc. will vote on a final offer from the baker of Wonder Bread that includes an 8 percent reduction in wages along with work-rule and benefit concessions. Although the union isn’t recommending that workers vote for or against the contract, the Teamsters told their membership that “rejecting it outright means [...]

    Kodak Investor Asks U.S. Trustee for Probe

    A New York hedge fund that owns bonds of Eastman Kodak Co. asked the U.S. Trustee to probe the bankrupt photography pioneer’s patent auction, saying the “unusually secretive” bidding process wasn’t likely to benefit creditors. Esopus Creek Value Series Fund LP, which holds Kodak’s 9.75 percent Senior Secured Notes, said press reports about two lead bidders joining forces, Apple Inc. and Google Inc., [...]

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