Business Bankruptcy News Bulletin Summary for Week of November 29

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/.

Basic Functions of the U.S. Trustee’s Office

The office of the U.S. Trustee was established by Congress as part of the Bankruptcy Reform Act of 1978 to oversee certain aspects of bankruptcy reorganizations. The Trustee, who acts on behalf of the executive branch of the federal government, functions to appoint and supervise other trustees that manage individual bankruptcy cases. The Trustee can also take legal action to enforce provisions of the U.S. Bankruptcy Code as he or she looks to prevent fraud and abuse and can also refer matters under investigation for prosecution. Overall, the Trustee is commissioned to see that bankruptcy estates are administered efficiently and that fees charged are reasonable.

BANKRUPT COMPANIES

American Media Inc., the National Enquirer publisher which recently filed Chapter 11, has listed liabilities of between $500 million and $1 billion. The company earlier said that most of its creditors had approved a reorganization plan involving the conversion of debt into equity as it hopes to emerge from Chapter 11 within a few months.

American Safety Razor’s antitrust waiting period to be acquired in a bankruptcy auction by Energizer Holdings Inc. has passed, bringing the company closer to completing the $301 million buyout. The deal still awaits approval from antitrust authorities in Taiwan and Germany.

Globe Communications Corp., 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 $10 million and $50 million and liabilities of more than $1 billion. The filing was under case number 10-16152. Also filing were Globe Editorial Inc. and Star Editorial Inc. For further information contact the court in Manhattan, N.Y. at 212-668-2780.

Local Insight Media Holdings Inc., the Denver, Co.-based publisher of the Yellow Pages directories across the U.S., has filed for Chapter 11 protection, hoping to reorganize. Local Insight’s biggest unsecured claim is $210 million held by US Bank National Trust Association. Also filing for bankruptcy protection was Berry Co., a Moraine, Oh. marketing, publishing and sales subsidiary. Berry has reportedly arranged for $25 million in debtor-in-possession financing. For more information contact the U.S. Bankruptcy Court for the District of Delaware at 302-252-2560.

Tempus Palms International Ltd., Orlando, Fl., filed Chapter 11 in the U.S. Bankruptcy Court for the Middle District of Florida. The firm listed assets and liabilities of between $100 million and $500 million each. The filing was under case number 10-20712. Also filing were Tempus Resorts International Ltd. under case number 10-20709, Tempus Golf Development LLC under case number 10-20714 as well as other affiliates.   For more information contact the court at 866-879-1286.

W.R. Grace & Co., a Columbia, Md. chemicals firm, completed its deal to acquire chemicals manufacturer Synthetech.