More Bankruptcy Filings

Hussey Copper Corp Files for Bankruptcy

Hussey Copper Corp has filed for bankruptcy protection, citing financial problems due to the ongoing economic recession. The Leetsdale, Pennsylvania based company also plans to sell its assets. The maker of copper bus bars and other copper products lists between $100 million and $500 million in assets and liabilities.

Hussey has reached a baseline or ‘stalking horse’ agreement to sell its assets to KHC Acquisitions LLC after all efforts to restructure its debts failed. The company plans to hold a ‘competitive bidding’ process to enable other interested buyers to outbid KHC.

A spokesperson for Hussey blamed the fluctuations in copper prices as the leading cause for the company having lost $3 million in net income in 2010. This year, the price for this economically sensitive metal has fallen by more than 20% in the wake of the global economic recession.

Hussey owes about $38 million to first-lien lenders that include Well Fargo & Co, Bank of America and PNC Bank. After defaulting on its loans, the company made unsuccessful attempts to refinance its debts. In addition, Hussey owes about $2.4 million to second-lien lender Schneider Electric SA and a further $29 million in trade-related debts to various other creditors. The company’s largest unsecured creditor is Metal Management Pittsburgh who is owed $9.05 million.

Hussey was founded in 1848 and is the world’s largest producer of copper bus bar, which are used to help conduct electricity in switchboards. Besides that the company also makes construction copper sheets, transformer winding and copper tape. It filed for bankruptcy with five affiliates.

Papa John Franchisee Files for Bankruptcy

A Papa John franchisee, PJCOMN Acquisition Corp has filed for Chapter 11 bankruptcy. As a result, their employees at more than 70 Papa John restaurants in Colorado and Montana have not received their salaries. Employees in several outlets complained that their checks either bounced or were not distributed.

Baltimore-based PJCOMN has applied to the bankruptcy court for approval to pay its 1,200 employees while it works out a solution to its financial issues.

Last week, notices were posted at the restaurants stating that the owners had filed for bankruptcy and that there was “some confusion” by the banks and bankruptcy receiver, adding that “This was not the company’s fault and we are working to remedy the confusion by the end of this week”.

Bankruptcy records show that PJCOMN is owned by Essential Pizza and the company has assets worth $50,000 but liabilities between $10 million to $50 million owed to hundreds of creditors that include the Colorado Department of Revenue and the Colorado Rockies Baseball Club.

Related Blogs

    Bankruptcy Ruling Disfavors Florida Dirt Bond Holders

    A ruling by the bankruptcy court has put holders of Florida’s so-called dirt bonds sold by two Fiddler’s Creek Community Development Districts at the end of the pecking order when payments are made to creditors. The ruling made in August states that most of the debt payments to the bond holders would be made only after payments to other creditors. As such, these tax-exempt bond holders are contesting the court ruling which excludes them from a bankruptcy settlement of Fiddler’s Creek LLC, the bankrupt builder of a 4,000-acre (1,600-hectare) community in Naples, on Florida’s west coast.

    Dirt bonds are sold by community development districts set up by property developers to pay for the construction of roads, bridges and utility lines on land for housing projects. 371 districts in Florida issued $7 billion worth of bonds currently outstanding.

    Generally, bond holders are paid out of the revenue collected from homeowner and landowner fees. But the housing industry slump has seen many abandoned, half-completed housing projects and house prices dive to by 42% from their peak in 2006. This has caused a bond default of at least 40%, or $2.9 billion, of the $7 billion outstanding, according to data compiled by Bloomberg using disclosures made over the past year. The publisher of Distressed Debt Securities newsletter, Richard Lehmann said, “This is the single biggest default event in the history of the municipal market.” Commenting on the court ruling, Lehmann said, “The bondholders were supposed to be the first people in line (to be paid), and now they’ve been basically made the last.”

    Lehmann also noted that the Fiddler’s Creek case is the first in Florida where a development district settled debts with a builder under Chapter 11 bankruptcy procedures over bondholders’ objections. This may set a dangerous precedent where other builders seeking to delay bond payments would file Chapter 11 to do so. As it stands, builders of two other districts in Florida, Cordoba Ranch and Landmark at Doral, have filed for Chapter 11 since the Fiddler’s Creek settlement. These districts have outstanding bonds totaling $81.6 million. Other states such as Nebraska, California and Colorado have districts that also borrow to fund industrial and residential projects.

    The two Fiddler’s Creek districts sold bonds worth more than $150 million starting from 1996 to finance the cost of building infrastructure in the project that was to include golf courses, tennis courts, clubhouses and 6000 homes. Less than 1,800 homes have been built so far. As a result, the developer lost about $42 million in expected revenue as buyers refused to close purchases.

    In February last year, the developer and 27 other related entities filed for Chapter 11 bankruptcy protection.

    If you wish to file for bankruptcy protection, call us at (813) 200 4133 for a free consultation.

    Related Blogs

      Florida Telco Manufacturer plans Asset Sale in Bankruptcy

      Teltronics Inc, Florida’s telecommunications equipment manufacturer has filed for a Chapter 11 bankruptcy exit plan that includes selling off its assets. However, little has been revealed in the form of details about the potential sale in the plan filed Friday in US Bankruptcy Court in Tampa, Florida. There is no information on possible buyers, an opening bid price and the status of its marketing efforts so far. The date of the close of the sale, however is known and expected to be before December 6. This is the date Teltronics is due to repay the $3 million loan it took from Wells Fargo & Co. to continue operations throughout its bankruptcy.

      Bankruptcy papers show that the estimated liability of the company topped $19.8 million while its assets come up to a comparably smaller $9.1 million. A summary of the bankruptcy plan, if it is approved by the bankruptcy court, will be sent to each of the company’s creditors. But the plan did not estimate how much money other creditors could receive after the profits company makes from the sale.

      The telecommunications equipment maker, whose clients include major players like the New York City Department of Education, the City of New York Department of Corrections and the Federal Bureau of Prisons, had to file for bankruptcy due to declining sales of its equipment. The company has been in business for 42 years and employs 133 workers. It started out as a company making phone dialers in 1969.

      Bankruptcy court documents show that Teltronics filed for Chapter 11 banruptcy on June 27. At that time, there was no indication of a sale of assets. Company executives said the bankruptcy would allow them to revitalize the finances and “emerge as a healthier, more profitable company” under a restructured business plan. Thus it must have surprised many to find out a sale of assets is being planned.

      The company did not state any timeline for the planned sale, something which also requires court approval.

      Based in Palmetto, Florida Teltronics Inc. designs, installs, develops, manufactures and markets electronic hardware and application software products for the military and security, industrial and medical industries.

      Related Blogs

        Jefferson County Bankruptcy may not Materialize

        The plan to avoid filing what would be the nation’s biggest municipal bankruptcy might be derailed following opposition to the plan by Alabama lawmakers. Jefferson County’s financial problems stem mainly from the inability to repay $3 billion in sewerage debt. Among the measures proposed to avoid bankruptcy was a sewer rates hike that triggering an adverse response by many Alabama lawmakers.

        Over the last 3 years, the Jefferson County Commission has been slogging to find ways to avoid filing for bankruptcy. Commission members worked out a settlement with Wall Street lenders earlier this month that involves the lenders forgiving county debts of about $1 billion. In addition the county will refinance $2 billion, and sewer customers are to be subjected to a series of rate hikes. Rates would increase up to 8.2% for each of the first three years, followed by yearly increases of up to 3.25%.

        Refusing to back the $3 billion deal, the co-chairman of the Jefferson County House delegation, Democrat John Rogers of Birmingham, described the requirement for sewer rate hikes over the next 40 years as “asinine, cruel and inhumane.” Any plan to solve the financial problems of the county must gain approval of the House as Alabama’s Constitution vests lots of authority in legislators over financial matters.

        The problem is how to address a $50 million a year shortfall in revenue. If sewerage rates are not increased, raising revenue might come down to installing occupational tax. But Rogers’ other co-chairman of the Jefferson County House delegation is Republican Paul DeMarco who reiterated that he is “100% opposed” to reinstating the county’s former occupational tax to generate more revenue. The Jefferson County delegation is generally divided along party lines, with many Democrats supporting an occupational tax while the GOP opposes it.

        Another authoritative political figure is the chairman of the Senate Rules Committee, Republican Scott Beason of Gardendale. Beason said, “I’ve been consistently opposed to tax increases”.

        Governor Robert Bentley had met with legislators last week to begin drafting details of a preliminary deal. Bentley hopes to avoid bankruptcy because it would raise borrowing costs for Alabama state, its cities and counties. Although there is no deadline for the Legislature to take action, if it does not enact the required laws under the deal on time, it may still have to file for bankruptcy. Governor Bentley said he intends to call a special sitting for the Legislature to approve any agreement.

        Governor Bentley is intent on getting asking residents outside Jefferson County to pay for the county’s debts. He reiterated, “If there is money that has to be raised, it will have to be raised in Jefferson County”.

        Jefferson County has more than 658,000 residents and has been hit by the $3 billion sewer debt, a public corruption scandal, the economic recession and rising interest rates. Recent court rulings dismissing the county’s occupational tax left it unable to pay its bond debt and other financial obligations.

        Related Blogs

          Philadelphia Orchestra Bankruptcy at Crossroads

          The journey in bankruptcy continued for the Philadelphia Orchestra Association when the proceedings arrived at a critical crossroad. At the hearing before Judge Eric L. Frank, two options were presented – one which could see a quick resolution to the disputes or the other that could result in a long-drawn bankruptcy battle.

          The first option is for the management of the orchestra and musicians to continue trying to come to agreeable terms on a new labor contract which would include how musicians’ pensions will now be structured. They could either go along with the existing arrangement for pensions or draft out a new one altogether. The negotiations on this matter are currently being arbitrated by Stephen Raslavich, chief judge of US Bankruptcy Court, Eastern District of Pennsylvania.

          If a consensus can be reached and an agreement forged, it could spell a quick end to the bankruptcy negotiations and pave an early exit from bankruptcy for the Orchestra. Then the Orchestra may even open its Verizon Hall season soon assuming they and the Kimmel Center agree on a new lease agreement, or decide to handle those talks apart from the bankruptcy process. With the matter of the lease out of the way, we might be seeing the Orchestra back as early as next month

          The second option is for sure much less pleasant. In the event that mediated talks between the management and musicians fall through, the American Federation of Musicians and Employers Pension Funds will most certainly take action.

          A source of contention is the amount of money in the association’s endowment. Based on some of tens of thousands of emails and other documents taken from the association’s computers and records, it appears that some of the money should not be there and is therefore eligible to be used to pay creditors. The national musicians’ pension fund appears to be the largest creditor in the case. If the association decides to withdraw from the pension plan, that will result in a withdrawal liability estimated at between $23 million and $35 million which they hope to cancel through filing for Chapter 11 bankruptcy.

          According to the legal representative of the pension fund, investigations thus far have unearthed leads that could recoup millions of dollars for creditors and the fund intends to request for permission from the court to obtain more documents from the association that could shed further light on how endowment money has been spent.

          On the other hand, the association could counter these actions by filing to abrogate the musicians’ present labor agreement if mediation efforts are unfruitful. If this happens, bankruptcy proceedings will shift into trial mode and further lawsuits could potentially materialize.

          Related Blogs

            Saab Succeeds in Appeal Against Bankruptcy

            Swedish car manufacturer, Saab was at the brink of involvency when a last minute appeal to the court granted them a stay. The appeals court overturned an earlier court ruling and gave Saab time to reorganize their finances and secure additional funds. The judgment also protects the Swedish car maker from creditors.

            Saab’s financial woes began when GM sold it off last year. The 60-year old auto maker could not carry on production when suppliers stopped supplying parts because they were not paid. The debt Saab owes its suppliers comes up to about 150 million euros ($205 million). The assembly lines in its main factory in Trollhaettan have been completely idle since June.

            The workers unions have also begun taking legal action over non-payment of salaries to its members. In August, after workers were not paid for the third consecutive month, workers unions attempted to force the company into bankruptcy to initiate a state-funded program to pay for workers’ salaries. However, the action failed. Nevertheless, the union did succeed in getting the workers paid because creditor protection also activates the state wage-guarantee scheme.

            In a statement, the IF Metall trade union said that Saab and its employees will now receive “much-needed breathing space to systematically develop a long-term business plan.”

            When GM sold Saab, it was bought over by the Dutch group, Spyker which later changed its name to Swedish Automobile. But that did not bring an end to Saab’s problems. The auto maker was still short of cash and has been trying to raise money ever since. It now hopes for a fresh capital injection from Chinese investors.

            In the meantime, an application to the Chinese authorities has been made and Saab is hoping authorities in China will approve a 245 million euro ($336 million) investment by Zhejiang Youngman Lotus Automobile and Pang Da Automobile Trade Co, which should be forthcoming by November. A bridging loan amounting to 70 million euros is also on the cards from Zhejiang Youngman.

            Saab’s fortunes appear to now hinge on the prospect of the Chinese investors, something that has been quite commonplace among many other companies these days.

            Related Blogs

              Solyndra Bankruptcy and Obama Administration

              The collapse of Solyndra Corp, a California based solar maker has subjected the Obama Administration to more than just nation-wide criticism and embarrassment. It has cost US taxpayers $535 million in a loan guaranteed by the government.

              Now the knives are out and the public is looking for answers. It appears the government might have been too hasty in backing Solyndra that it ignored the fact that the company might not be a worthwhile investment. In addition, now there is talk that Solyndra executives might have lied to federal officials about the company’s prospects and that political cronyism was at play in the decision. Paul Ryan, the Republican chair of the House Budget Committee, called the Solyndra debacle “industrial policy and crony capitalism at its worst. It’s Exhibit A for how this kind of economic policy doesn’t work.”

              But upon some investigation, it was discovered that Solyndra was not the first or only failed government intervention.

              Does the name Range Fuels ring a bell? Range Fuels was a Georgia-based company that supposedly had the technology to convert wood scraps into fuel and was bestowed a federal grant of $75 million in 2007 and another $80 million in loan guarantees to build a new plant in central Georgia. The move was lauded by US Senator Johnny Isakson at the time when he said, “This is exactly the kind of project this country needs to move us toward energy independence.” .But the company went bust in February without having produced any fuel whatsoever and all the taxpayers’ money was squandered.

              But some venture capitalists see the government’s move as part and parcel of normal business risks. The government was taking steps to wean off the nation’s dependence upon oil by intervening and investing in other forms of energy. Since trillions of dollars are spent each year in acquiring oil from the Middle East, investing a small portion of that amount in researching and enhancing technologies for alternative energies is a justifiable move.

              Government funding is also crucial and in some cases indispensable in certain energy generation methods like nuclear energy. The Energy Department office that approved the Solyndra and Range Fuels loans has also approved $8.3 billion in loan guarantees to finance two new nuclear reactors at Plant Vogtle outside Augusta. Nuclear energy is considered too expensive and risky for private sector investors so only the government is able to fund such ventures. Without government intervention, we would not have nuclear-powered energy.

              So while there are losses in government subsidies of energy projects like Solyndra and Range Fuels there have also been gains in other government-funded projects that go towards meeting our nation’s energy needs.

              Related Blogs

                Window and Door Maker Jeld-Wen Deny Bankruptcy

                Window and door manufacturer Jeld-Wen has denied the company is in financial distress and is about to file for bankruptcy. Market talk has it that the company is trying in vain to find buyers for $575 million worth of bonds and are about to default on their debts. Such rumors have been heightened by the announcement that Onex Corporation, an asset management company based in Canada would be buying a controlling stake into Klamath Falls-based Jeld-Wen.

                On August 1, Jeld-Wen made the announcement about Onex buying over 58% equity in the company. Since then, the CEO and CFO of Jeld-Wen, Rod Wendt and Neil Stuart have gone to major US cities looking for bond buyers. But in a seeming turnaround, on September 6 the company announced it was waiting until market conditions improved before proceeding with the deal with Onex. That sparked further speculation that the bond sale did not materialize and that Jeld-Wen is heading into the red.

                A key negotiating point with Onex is the sale of the $575 million bonds. The Oregonian newspaper, in its online edition September 2 said that “a takeover by Onex Corp., a Canadian private equity firm, appears in jeopardy,” and that “a bankruptcy by Jeld-Wen would be a stunning turn for the family-controlled company built by Dick Wendt.”

                But such market talk has been strongly denied by Jeld-Wen. Its spokesperson, Teri Cline made an official statement on behalf of the company, “Jeld-Wen is not facing bankruptcy. The company has more than adequate cash and liquidity to conduct business as usual. Our revised agreement with Onex would reduce by about half our current level of debt. Jeld-Wen will manage its business for long-term growth and profitability, making adjustments to our capacities as necessary. The Wendt family put the interests of the company — its employees and other shareholders — ahead of their own desire for continued majority ownership because they believe Onex’ investment in Jeld-Wen will provide a strong financial footing for the future of the company.”

                Being a maker of doors and windows, Jeld-Wen’s fortunes have long been linked to the construction industry. When the housing and construction market bottomed out in 2007, the company’s financial troubles began. The number of new houses built fell from a high of 2.15 million a year in 2005 to a paltry 600,000 last year. In the face of these statistics, Jeld-Wen’s business suffered. Between 2008 and 2010, the company had to lay off about 300 workers, bringing its total number of workers down from 1,500 to 1,200 today. Globally, the company shut down 21 of its plants and cut its workforce by a quarter as sales slumped from $3.6 billion to $3.1 billion worldwide.

                Related Blogs

                  Jefferson County Divided over Bankruptcy Proposal

                  Jefferson County’s financial problems stem mainly from a botched financing of a $3.1 billion sewer system project with bonds that collapsed more than three years ago. Now County Commissioners are confronted with the prospect of filing for what would be the nation’s biggest municipal bankruptcy or continue negotiations with creditors that include JPMorgan Chase & Co. One of the alternatives to bankruptcy would be to restructure the debt and impose a series of 8% increases in sewerage rates.

                  Some county folks feel Jefferson County should not file for bankruptcy while some others feel they should. Generally, the opinions depend on which end of the economic spectrum the county residents fall into. The more wealthy ones do not support bankruptcy while the less wealthy ones are not prepared to pay higher sewerage fees and therefore want the County to file for bankruptcy so the burden is borne by everyone not just them. Low- income residents make up the biggest portion of sewer-system customers.

                  Jefferson County’s sewer system is used by about 150,000 residents, including 10,000 from Mountain Brook, the County’s wealthiest city. According to the US Census Bureau, the average household income for Mountain Brook residents in 2009 was $129,034, more than twice the $50,173 median in New York. But merely filing for Chapter 9 bankruptcy might not preclude raising sewer rates, it may just postpone it.

                  The county’s financial debt that includes a $40 million general-fund gap is falling on the poor in ways other than sewer rates. The sheriff department has had its budget cut such that it no longer can provide toilet paper, linens and clothes in jail houses. One inmate, Takita Watson said, “You have to dry off with your uniform,” as the jail no longer provides towels. Likewise, the facilities at Cooper Green Mercy hospital have also been affected.

                  Jefferson County’s Republican state lawmakers want to end an Alabama requirement that a half-percent of county sales taxes goes to Cooper Green. They want part of the money redirected to the county’s general fund. But the taxes collected go to finance more than $40 million of the hospital’s needs and provide for the uninsured and the under-insured. Redirecting the money would cut care to the 100,000 outpatient and 35,000 emergency room patients the hospital served in the last year, many referred from other hospitals because of finances.

                  Related Blogs

                    Is Bankruptcy an Option for You?

                    If you are facing financial difficulties in this economic recession, it may be time to consider filing for bankruptcy. Bankruptcy filing is a way to eliminate debt and get a fresh start worth considering. In 2010, 110,304 Floridians filed for bankruptcy, placing Florida in 13th spot in the country for per capita bankruptcy filings.

                    On the flip side, bankruptcy does have its long-term repercussions like a black mark on your credit score. So it might not be the panacea for all financial ills for everyone. If you are considering filing for bankruptcy, here are a few pointers to help you decide if this is a suitable move for you.

                    Firstly, review if your debts exceed (or are starting to exceed) your assets. If so, then you should seriously consider filing for bankruptcy. However, it also depends on what type of debts you have. If you have debts that cannot be wiped out by bankruptcy, then it’s pointless filing for bankruptcy. One such example is a student loan. But on the other hand, there are other debts that are particularly suited for bankruptcy to deal with, such as credit card loans or medical bills. At times, high credit card debts make it virtually impossible for you to catch up with your payments without filing for bankruptcy.

                    Secondly, if you have already tried other means of settling your debts without success, then you should think about the bankruptcy option. For example, you may have tried soliciting the help of a credit counseling organization. But if credit counseling has been failed and efforts to negotiate directly with your creditors have also failed, bankruptcy may be a viable option for you.

                    Thirdly, look at what your creditors have been doing to pursue their dues. If the incessant collection efforts like phone calls, notices, letters and such have been increasing and driving you up the wall, then you might think of filing for bankruptcy. If you get visits from debt collectors or there is a possibility your salary might be garnished, your home be foreclosed or worse you might be facing a lawsuit, then you should consider bankruptcy. Any or all of these occurrences might signal the real need for a bankruptcy filing.

                    Last but not least, consider how you are coping with your financial distress and all that comes along with it. Do you feel it is worth going through all the stress of trying to pay off your debts by your own efforts? If you have come to the end of your resources, you should consider the bankruptcy route.

                    If you wish to file for bankruptcy, or just want to talk to a professional about this, call us at (813) 200 4133 for a free consultation.cial difficulties in this economic recession, it may be time to consider filing for bankruptcy. Bankruptcy filing is a way to eliminate debt and get a fresh start worth considering. In 2010, 110,304 Floridians filed for bankruptcy, placing Florida in 13th spot in the country for per capita bankruptcy filings.

                    On the flip side, bankruptcy does have its long-term repercussions like a black mark on your credit score. So it might not be the panacea for all financial ills for everyone. If you are considering filing for bankruptcy, here are a few pointers to help you decide if this is a suitable move for you.

                    Firstly, review if your debts exceed (or are starting to exceed) your assets. If so, then you should seriously consider filing for bankruptcy. However, it also depends on what type of debts you have. If you have debts that cannot be wiped out by bankruptcy, then it’s pointless filing for bankruptcy. One such example is a student loan. But on the other hand, there are other debts that are particularly suited for bankruptcy to deal with, such as credit card loans or medical bills. At times, high credit card debts make it virtually impossible for you to catch up with your payments without filing for bankruptcy.

                    Secondly, if you have already tried other means of settling your debts without success, then you should think about the bankruptcy option. For example, you may have tried soliciting the help of a credit counseling organization. But if credit counseling has been failed and efforts to negotiate directly with your creditors have also failed, bankruptcy may be a viable option for you.

                    Thirdly, look at what your creditors have been doing to pursue their dues. If the incessant collection efforts like phone calls, notices, letters and such have been increasing and driving you up the wall, then you might think of filing for bankruptcy. If you get visits from debt collectors or there is a possibility your salary might be garnished, your home be foreclosed or worse you might be facing a lawsuit, then you should consider bankruptcy. Any or all of these occurrences might signal the real need for a bankruptcy filing.

                    Last but not least, consider how you are coping with your financial distress and all that comes along with it. Do you feel it is worth going through all the stress of trying to pay off your debts by your own efforts? If you have come to the end of your resources, you should consider the bankruptcy route.

                    If you wish to file for bankruptcy, or just want to talk to a professional about this, call us at (813) 200 4133 for a free consultation.

                    Related Blogs


                    Related Blogs