Business Bankruptcy News Bulletin Summary for Week of January 31

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/.

Bankruptcy: A Few Things to Consider

Revised strategic plans are essential if a company wants to successfully emerge from Chapter 11 bankruptcy proceedings. While an ordinary strategy may be okay for ordinary times, special plans are needed when a company wants to turns itself around under bankruptcy protection. One thing a firm should do is identify the strongest parts of its business and how it will return to profitability. As for financing and sales needs, one suggestion is to stay in close contact with both customers and vendors to provide assurance that the financial complications that landed a company in bankruptcy don’t necessarily affect the overall soundness of its operations. Communication with vendors and lenders is paramount to successfully emerge from any bankruptcy proceeding.

BANKRUPT COMPANIES

Agent Media Corp., Erlanger, Ky., filed Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware. The firm listed assets and liabilities of between $100 million and $500 million each. The filing was under case number 11-10237. For more information contact the court at 302-252-2560.

Blockbuster Inc.. Dallas, Tx., won permission from the U.S. Bankruptcy Court to extend its exclusivity period for filing a reorganization plan until 3/21. The deadline for winning acceptance for the plan has been extended until 5/20. Separately, Blockbuster won permission from the U.S. Bankruptcy Court to continue conducting store-closing sales and bulk inventory sales. For further information contact the U.S. Bankruptcy Court in Manhattan, N.Y. at 212-668-2780

Fritz Blau Industries Inc., Stratford, Ct., filed Chapter 11 in the U.S. Bankruptcy Court for the District of Connecticut. The firm listed assets and liabilities of between $1 million and $10 million each. The filing was under case number 11-50080. For more information contact the court at 866-222-8029 then enter 22.

Mesa Air Group Inc.’s recently approved reorganization plan calls for cutting more than 100 aircraft leases and other obligations that will lighten its balance sheet by some $700 million in capital leases and $50 million in other debt. The carrier will emerge from bankruptcy protection next month following a yearlong reorganization that has resulted in greatly improved operational results.

Spring ER LLC, Houston, Tx., filed Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas. The firm listed assets and liabilities of between $10 million and $50 million each. The filing was under case number 11-30609. For more information contact the court at 800-745-4459.

Washington Mutual Inc.’s equity security holders filed an appeal with the U.S. Bankruptcy Court regarding the approval of a global settlement with JPMorgan Chase Bank NA, the Federal Deposit Insurance Corp. and others.