Business Bankruptcy News Bulletin Summary for Week of August 9

The items below are excerpted from the Business Bankruptcy News Bulletin. A full issue contains information on dozens of troubled companies, as well as informational and analysis highlights and an examination of business bankruptcy matters. Please visit the insideARM bookstore for information on subscribing to the Bulletin.

Some Questions Secured Creditors May Want to Ask In a Chapter 7 Bankruptcy

Secured creditors, in a Chapter 7 bankruptcy filing, should evaluate their position by asking a number of questions. Such questions include: Is the creditor vulnerable to a suit to recover a preference? Is the creditor also vulnerable to a bankruptcy code lien avoidance? Is the security interest not only valid but perfected? Are other recourse available? Does the debtor truly want to keep the collateral? Will the creditor be entitled to interest on its claim(s)? To what extent is the claim secured? Will the creditor be entitled to recover attorney fees? Also, does the creditor have affirmative duties under the Automatic Stay?

BANKRUPT COMPANIES

AbitibiBowater Inc., the Montreal, Quebec newsprint manufacturer, received approval from the U.S. Bankruptcy Court in Delaware for its restructuring plan and can now send off the plan for a creditor vote. For more information contact the court at 302-252-2560 and refer to case number 09-11296.

Confluence Energy LLC, Kremmling, Co., has seen an involuntary Chapter 11 filed against it in the U.S. Bankruptcy Court for the District of Colorado. The filing was under case number 10-29269. For more information contact the court at 866-222-8029, then enter 22.

E-Brands Restaurants LLC in Orlando, Fl., along with its affiliates, filed Chapter 11. The affiliates include Timpano of Maryland LLC, Timpano Acquisition LLC, Aquaknox LLC, Star Concepts Acquisition LLC, DBEB LLC and Samba Room Acquisition LLC. For more information contact the U.S. Bankruptcy Court for the Middle District of Florida at 866-879-1286.

Lubbock Gatewood LLC filed Chapter 11 in the U.S. Bankruptcy Court for the Northern District of Texas, listing assets of between $10 million and $100 million. The case number is 10-50371. For more information contact the court at 800-886-9008.

Station Casinos, the bankrupt Las Vegas, Nv. casino company, has seen Boyd Gaming decide to throw in the towel on its 18-month-long efforts to take over certain of its assets.

U.S. Concrete Inc., a Houston, Tx. manufacturer of concrete, received approval from the U.S. Bankruptcy Court for its Chapter 11 reorganization plan, which calls for converting $285 million in senior notes into equity in the reorganized company. The firm now hopes to emerge from bankruptcy protection by the end of the month.