Business Bankruptcy News Bulletin Summary for Week of April 12

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. Please visit the insideARM bookstore for information on subscribing to the Bulletin.

Preventing Trustee Overcharges In a Bankruptcy Filing

Sometimes a trustee may charge fees that exceed what is considered reasonable. Since protests by creditors to the U.S. Bankruptcy Court often have no effect, probably the only way to prevent overcharges is to select a trustee who doesn’t have to handle below-fee bankruptcy cases and who will therefore be satisfied with a reasonable fee for his case. Careful selection of a trustee, however, will not necessarily prevent high fees because the trustee may nevertheless seek higher fees.

BANKRUPT COMPANIES

Alamo Iron Works, San Antonio, Tx., filed Chapter 11 in the U.S. Bankruptcy Court for the Western District of Texas. The firm listed assets and liabilities of between $10 million and $50 million each. The filing was under case number 10-51269. For more information contact the court at 888-436-7477.

Creditwest Corp., Rohnert Park, Ca., filed Chapter 11 in the U.S. Bankruptcy Court for the Northern District of California. The firm listed assets and liabilities of between $10 million and $50 million each. The filing was under case number 10-11212. For more information contact the court at 888-457-0604.

Focus Ten of Tampa Inc., an owner of Arby’s sandwich restaurants, filed Chapter 11 in the U.S. Bankruptcy Court for the Middle District of Florida. Also filing were Focus Ten of Florida Inc., Focus Ten of Raleigh Inc. and Focus Ten of Greensboro Inc. Each filing reportedly lists assets of less than $1 million and liabilities of between $1 million and $10 million. An attorney for the bankrupt companies expressed confidence that the firms will be able to complete a successful reorganization. For more information contact the court at 866-879-1286.

National Home Centers Inc., a bankrupt building-materials supplier in Arkansas, has been acquired by Stock Building Supply Inc., a Raleigh, N.C.-based provider of building products, for an undisclosed amount. Stock Building Supply is majority-owned by Gores Group LLC.

Nortel Networks Corp., the bankrupt Brampton, Ontario-based manufacturer of telecommunications equipment, completed the sale of its wireless operations to Ericsson AG of Sweden, which has U.S. headquarters in Plano, Tx., for $70 million.

Philadelphia Newspapers LLC won some breathing room as a deadline for repaying a $15 million loan has been extended until 6/30, although lenders can decide to call in the loan earlier than that with a five-day notice. Separately, the publisher’s senior lenders asked for permission from an appeals court to reconsider an earlier ruling that blocks them from using debt to make a buyout bid for the company at an auction scheduled for 4/27.

Tribune Co. asked for additional time to file its reorganization plan, which, in part, aims to avoid certain litigation. The Chicago, Il. media firm, now wanting until the end of the month to file the plan, did not explain why it needs more time because, it said, doing so would reveal certain confidential information. For further information contact the U.S. Bankruptcy Court in Wilmington, De. at 302-252-2560 and refer to case number 08-13141.