Business Bankruptcy News Bulletin Summary for Week of November 22

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. More information on subscribing to the Bulletin at http://usbj.biz/.

Postconfirmation Administration

Notwithstanding the entry of an order confirming the debtor’s reorganization plan, the U.S. Bankruptcy Court has the authority to issue any other order necessary to administer the estate. The court’s authority includes the postconfirmation determination of objections to claims or adversary proceedings, which must be resolved before a plan can be fully consummated. Also, Sections 1106(a)(7) and 1107(a) of the Bankruptcy Code require a debtor in possession or a trustee to report on the progress made in implementing a plan after confirmation. A Chapter 11 trustee or debtor in possession has a number of responsibilities to perform after confirmation, including consummating the plan, reporting on the status of consummation, and applying for a final decree.

BANKRUPT COMPANIES

Abitibi-Bowater Inc., the big Montreal, Quebec-based newsprint manufacturer, reported a third quarter loss of $829 million. The loss, compared with a $511 million loss in the year-earlier period, was dragged down by more than $730 million in costs related to its bankruptcy restructuring. Not including those costs Abitibi whittled its loss to $93 million, down from a $184 million loss a year ago. In a bankruptcy development, it’s now possible that the U.S. Bankruptcy Court could soon approve Abitibi’s reorganization plan, despite objections from some creditors. Most creditors in both the U.S. and Canada earlier approved the company’s restructuring plan. For further information contact the U.S. Bankruptcy Court in Wilmington, De. at 302-252-2560 and refer to case number 09-11296.

Church Chair Industries Inc., Rome, Ga., filed Chapter 11 in the U.S. Bankruptcy Court for the Northern District of Georgia. The firm listed assets of less than $100,000 and liabilities of between $1 million and $10 million. The filing was under case number 10-44413. For more information contact the court at 866-222-8029 then enter 18.

Country Music Media Group Inc., Boca Raton, Fl., filed Chapter 11 in the U.S. Bankruptcy Court for the Southern District of New York. The firm listed assets of between $100,000 and $1 million and liabilities of between $500 million and $1 billion. The filing was under case number 10-16149. For more information contact the court at 866-232-1268.

Glazier Group, failing to restructure a loan with a lender, filed Chapter 11 so that it can maintain control of its restaurant operations as it reorganizes. The privately-held New York City-based restaurant chain, which owns places like The Steak House NYC and Michael Jordan’s, reported assets and liabilities of $15.2 million and $26.8 million respectively. Some of Glazier’s restaurants are not included in the bankruptcy filing. For further information contact the U.S. Bankruptcy Court in Manhattan, N.Y. at 212-668-2780 and refer to case number 10-16099.

Loehmann’s Holdings Inc.’s bankruptcy filing is aimed at cutting debt by $115 million and recapitalizing under a Chapter 11 reorganization plan supported by Whippoorwill Associates Inc. and Crystal Financial, which is providing $45 million in financing when the New York discount retailer emerges from bankruptcy protection. Whippoorwill, along with Loehmann’s owner, Istithmar World of Dubai, will invest $25 million at that time. Loehmann’s, suffering from weak sales over the past year along with debt pressures, will continue normal operations at its more than forty-five locations in a dozen states and the District of Columbia. In its filing the retailer listed assets and liabilities of between $100 million and $500 million each. For further information contact the U.S. Bankruptcy Court  in Manhattan, N.Y. at 212-668-2780 and refer to case number 10-16077. Also filing were Loehmann’s Operating Co. under case number 10-16079, Loehmann’s Capital Corp. under case number 10-16081 and Loehmann’s Real Estate Holdings Inc. under case number 10-16080.

National Enquirer Inc., Boca Raton, Fl., filed Chapter 11 in the U.S. Bankruptcy Court for the Southern District of New York. The firm listed assets of between $100 million and $500 million and liabilities of more than $1 billion. The filing was under case number 10-16155. Also filing was National Examiner Inc. under case number 10-16156. For more information contact the court at 866-232-1268.

Shane Co., a Centennial, Co. jewelry store operator, won approval from the U.S. Bankruptcy Court for its reorganization plan. The company, which is reportedly reorganizing under a commitment to repay its creditors in full, reported assets and liabilities of $98.8 million and $113 million respectively. For more information contact the U.S. Bankruptcy Court in Colorado 720-904-7419 and refer to case number 09-10367.

Washington Mutual Inc. won permission from the U.S. Bankruptcy Court to extend a deadline for creditors to vote on its reorganization plan  by a few days. Creditors will now vote on 11/18.