Bloomberg: First Skirmish in Caesars Bankruptcy Campaign?

Category: Bankruptcy Law
Published: Friday, 06 February 2015
Written by Admin

According to a Bloomberg story, Caesars Entertainment Operating Co. is to open its $20 billion bankruptcy fight today, pitting creditors against the gambling company's controlling shareholders, Leon Black's Apollo Global Management and David Bonderman's TPG Capital.

The first order of business: picking a courthouse.

Some stakeholders want the case heard in Wilmington, Delaware, where lower-ranking noteholders filed an involuntary bankruptcy petition against the main operating unit of Caesars Entertainment Corp. Jan. 12. They say the biggest creditors, and the parent company's top executive, live on the East Coast.

Caesars filed its own Chapter 11 case in Chicago Jan. 15, bypassing the court in its hometown of Las Vegas. According to Bloomberg, the company's main bankruptcy law firm is based in Chicago and has deep roots in the city's legal community.

Each side has questioned the motives behind the other's choice of venue, and the decision could make a big difference to Apollo, TPG and other insiders in a restructuring effort that has already spawned several lawsuits, the Bloomberg article notes.

To view the entire Bloomberg article, click here.

 





UPDATE 2-RadioShack files for bankruptcy, sell up to 2400 stores

Category: Bankruptcy Law
Published: Friday, 06 February 2015
Written by Admin

(Adds comments from Sprint CEO; adds detail on RadioShack bankruptcy filing)

By Nick Brown

n>Feb 5 (Reuters) - Electronics retailer RadioShack Corp filed for US bankruptcy protection on Thursday and said it had a deal in place to sell as many as 2,400 stores to an affiliate of hedge fund Standard General, its lender and largest shareholder.

Wireless company Sprint Corp would operate as many as 1,750 of those stores under an agreement with Standard General, Sprint said separately.

RadioShacks bankruptcy, which has been expected for months, follows 11 consecutive unprofitable quarters as the company has failed to transform itself into a destination for mobile phone buyers. But its sale agreement with Standard General could spare it the fate most retailers suffer in Chapter 11, liquidation.

RadioShack said in a statement that the Standard General affiliate, called General Wireless, will acquire between 1,500 and 2,400 of its more than 4,000 stores.

Sprint would occupy about one-third of each RadioShack store, selling mobile devices across Sprint`s brand portfolio as well as RadioShack products, services and accessories, Sprint said in its statement.

Other potential buyers will also have the opportunity to bid on RadioShack assets. Any deal will need approval by the US Bankruptcy Court in Delaware, so nothing is etched in stone.

Sprints chief executive, Marcelo Claure, in a statement said the deal will allow Sprint to grow branded distribution quickly and cost effectively.

In an interview with Reuters earlier on Thursday, Claure said RadioShack had incredible store locations, and he was keen to acquire some to cut down on long waits at Sprints current stores. Customers have to wait one or two hours to get a phone and thats not acceptable, Claure said.

A spokesman for Standard General did not respond to a request for comment.

RadioShack, which listed $1.2 billion of assets and $1.39 billion of debts in its Chapter 11 filing, said it also has an agreement with a lender group led by DW Partners for a $285 million loan to operate while in bankruptcy.

OTHER RESTRUCTURING MOVES

The Standard General deal is only a piece of its restructuring efforts. The company has a deal with liquidation firm Hilco to shutter underperforming stores and said it has already begun discussions with other potential buyers to acquire the rest of its assets.

These steps are the culmination of a thorough process intended to drive maximum value for our stakeholders, RadioShack Chief Executive Joe Magnacca said in the statement.

The chains more than 1,000 dealer franchise stores, its Mexican subsidiary and its Asian operations are not part of the bankruptcy, it said.

Retailers that enter bankruptcy usually liquidate, in large part because of rules under US bankruptcy law that give them precious little time to decide whether to keep or break leases.

Recent retailers that met their demise in bankruptcy include Loehmanns Inc and Borders Group, which were sold to liquidation firms, and Coldwater Creek. RadioShack hopes to avoid the same fate. It is being advised by law firm Jones Day, investment bank Lazard, and financial advisers at Maeva and FTI.

The case is In Re: RadioShack Corp, Delaware Court, District of Delaware, Case No: 15-bk-10197. (Reporting by Ramkumar Iyer and Sruthi Ramakrishnan in Bengaluru; Additional reporting by Malathi Nayak; Editing by Saumyadeb Chakrabarty and Cynthia Osterman)



Founder of Baltimore County solar firm files for bankruptcy

Category: Bankruptcy Law
Published: Saturday, 31 January 2015
Written by Admin

Wittemann filed for Chapter 7 bankruptcy-law protection in Massachusetts in late November, listing about $3.928 million in debts, including more than $60,000 in federal and state taxes. The debts include thousands to state and local companies, banks and local government agencies.

Wittemann declined to comment through his Massachusetts-based attorney, Leslie F. Su, who also wouldnt comment.

Formed in 2007 after Maryland began allowing the owners of solar energy systems to sell credits based on their output, Greenspring Energy grew quickly, opening offices in Pennsylvania and North Carolina. In 2011, it was recognized as the nations fastest-growing privately owned energy company by Inc. magazine and in 2012 was inducted into Baltimore County Chamber of Commerces Hall of Fame.

Ex-Arent Fox Bankruptcy Pro Joins Fox Rothschild In LA

Category: Bankruptcy Law
Published: Friday, 30 January 2015
Written by Admin

By Tony Burchyns

Law360, New York (January 23, 2015, 10:13 PM ET) -- Former Arent Fox LLP partner Mette Kurth joined the bankruptcy law practice of Fox Rothschild LLP as a partner in its Los Angeles office, the firm has announced.

Kurth brings nearly two decades of bankruptcy and financial restructuring experience to the 600-attorney national firm, according to a statement Tuesday.

We are thrilled to welcome Mette and her robust bankruptcy practice to the firm and to our Los Angeles office, Fox Rothschilds financial restructuring and bankruptcy group co-chairs Brett A. Axelrod and Yann Geron said in a...