Business Bankruptcy News Bulletin Summary for Week of January 24

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/.

Handling That Bankruptcy Claim

Once a debtor has filed for bankruptcy protection, creditors start the unpredictable task of assessing their claims and finding the best way to recover them. Typically, large corporations have the resources to analyze and administer claims, but small and medium-sized firms are much less likely to be able to do a thorough valuation of creditors’ claims. However, electronic resources can help, as information about most corporate bankruptcies is accessible on the Internet and at the bankruptcy court in which the filing was made. As a result, unlike in the dinosaur days before the Internet, all parties have equal access to public information about a bankruptcy filing. Further, the claims trading marketplace is generally transparent and fair. Still, doing due diligence can be an arduous task as it requires dealing with reams of court documents, financial statements and lawyers’ statements.  You can also obtain the latest information on the status or events taking place at a bankrupt company by calling that court’s free Voice Case Information System phone number.  To obtain the VCIS number of any U.S. Bankruptcy Court call the publisher of this publication at 1-800-407-9044.

BANKRUPT COMPANIES

Appleseeds Intermediate Holdings LLC, Beverly, Ma., filed Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware. The firm listed assets of between $100 million and $500 million and liabilities of between $500 million and $1 billion. The filing was under case number 11-10160. Also filing were Appleseeds Acquisition Inc. under case number 11-10161 and Appleseeds Holdings Inc. under case number 101162. For more information contact the court at 302-252-2560.

Blockbuster Inc., Dallas, Tx., said that its shareholders want to boot out the firm’s board of directors before the company submits its Chapter 11 reorganization plan. The shareholders claim that the board is not properly representing their interests.

First Coast Hospitality LLC, Jacksonville, Fl., filed Chapter 11 in the U.S. Bankruptcy Court for the Middle District of Florida. The firm listed assets and liabilities of between $1 million and $10 million each. The filing was under case number 11-00252. For more information contact the court at 866-879-1286.

Great Atlantic & Pacific Tea Co.’s unsecured creditors’ committee received approval from the U.S. Bankruptcy Court to retain Lowenstein Sandler as conflicts attorney in the Montvale, N.J. grocer’s Chapter 11 reorganization case.

Lehman Brothers Holdings Inc., expecting to file a new distribution plan within the next week or so, raised its estimate of how much money will be available to its Chapter 11 creditors to about $60 billion. The company has also estimated that there are more than $320 billion in allowed claims against it.

Tribune Co. has seen a 1/28 deadline set for voting on its Chapter 11 reorganization plan. Objections must be filed by 2/15 and a confirmation hearing is scheduled for 3/7. For further information contact the U.S. Bankruptcy Court in Wilmington, De. at 302-252-2560 and refer to case number 08-13141.