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A Chicago hockey rink, The Leafs Ice Centre, filed for protection under Chapter 11 in an attempt to reject its current contract with a management company. The rink hopes to enter a new contract that will cost the rink less money and avoid the “serious issues” that it currently has with the current management company. The rink is also dealing with Wells Fargo who is acting in the capacity of intermediary with the bondholders. For more on this story you can read “Chicago Hockey Brawl Spills … [Read more...]

Flowers Foods has put in a $360 million bid to purchase the Wonder Bread brand from Hostess Brands.  The bid includes Nature’s Pride, Merita, Home Pride and Butternut brands in addition to 20 of Hostess’ bakeries.  Wonder Bread has not been produced since Hostess filed for bankruptcy protection in November.  Any potential sale must be approved by the bankruptcy court.  Hostess has been selling off assets through the bankruptcy case as part of the liquidation process after it ceased business due … [Read more...]

Bankruptcy does not carry the stigma that it once did as more Americans are forced to seek relief under the Bankruptcy Code due to economical struggles. Bankruptcy is not just for those in poverty. This assumption is incorrect as people from all financial classes file for bankruptcy. Not all of your debt will be wiped out when you file a bankruptcy. Some debts are non-dischargeable. Bankruptcy forms are complicated and while it is not necessary to have an attorney, it is advised that you … [Read more...]

Earlier this month, HealthBridge Management’s application to stay a federal court order reinstating striking union workers was denied by the U.S. Supreme Court.  Five of the nursing homes managed by HealthBridge filed for protection under Chapter 11 of the bankruptcy code stating they cannot continue to operate and will be forced to close, relocate the patients and fire employees if they are not allowed to impose temporary terms on employees.  The terms would save over $1 million per month for … [Read more...]

Cosmetics Plus sued its insurer, American International Group (AIG), after the insurer failed to pay on an insurance policy for two business locations lost in the September 11 attacks. Cosmetics Plus won a $350,000 million judgment against AIG that should have been paid to the company. However, its attorneys, members at the now bankruptcy Dreier law firm, did not immediately turn over the proceeds to Cosmetics Plus and the money became part of the Dreier’s bankruptcy filing. An appeals court … [Read more...]

Citing the low prices for aluminum and increased utility costs, Ormet Corp filed its petition for protection under Chapter 11 of the Bankruptcy Code.  The aluminum producer has received approximately $90 million in bankruptcy financing in order to continue operating while it is restructuring its debt within the bankruptcy.  Bankruptcy court documents show Ormet owes over $400 million in debts.  The debtor anticipates selling to a third party and will solicit bids from potential buyers while it … [Read more...]

GGW Brands LLC and several other related companies filed for protection under Chapter 11 of the Bankruptcy Code last week. Joe Francis, founder of the Girls Gone Wild franchise, and Steven Wynn’s Las Vegas Resort have been warring over an alleged $2 million gambling debt owed by Francis to the resort. The resort obtained a defamation judgment against Francis and began attacking assets to collect on the judgment. The bankruptcy filing has stopped collection efforts by the resort and placed … [Read more...]

ResCap has been granted two extensions on its exclusive right to file a plan of reorganization under its current Chapter 11 bankruptcy.  The debtor is now asking for a third extension that would allow it an additional 90 days to file a proposed plan of reorganization.  Bondholders argue that granting the extension will create a “nuclear war” and will only cause creditors to become more rigid in their current positions on restructuring.  Mediation has failed to produce a consensus on a bankruptcy … [Read more...]

Bankruptcy Judge Kevin J. Carey approved a $155 million loan by a bondholder group that allows School Specialty, Inc. to continue operations and to pay off a $50 million bankruptcy loan it had received from Bayside Capital.  The judge granted a request by the debtor to draw $129 million from the loan proceeds to continue operations while it restructures under Chapter 11 bankruptcy. Some unsecured creditors had argued that the loan by Bayside Capital was not sufficient and would force the debtor … [Read more...]

April 15 is right around the corner.  As taxpayers rush to file their tax returns, homeowners should not forget that they might be entitled to tax creditors for owning their home.  Because owning your home is a large investment, you should use it to your advantage when it comes to preparing your personal income tax returns.  Because the tax laws change each year, you may want to consider using a tax preparer to make sure you take every credit allowed for owning your home.  If you prepare your … [Read more...]