Bankruptcy and Corporate Restructuring

Earlier today, the Official Committee of Unsecured Creditors appointed in the bankruptcy cases of Station Casinos, Inc. and its affiliates asked Judge Gregg Zive of the United States Bankruptcy Court for the District of Nevada to appoint a trustee to oversee certain aspects of the chapter 11 cases and business operations of the debtors. Specifically, the Committee (which is comprised of Fidelity Management & Research Company, Law Debenture Trust Company of New York, Serengeti Asset Management, LP, Western Asset Management Company, and Wilmington Trust Company) has requested that the trustee be authorized to "(i) negotiate an appropriate permanent rent reduction, (ii) or, alternatively, determine ... Read Full Story

Earlier today, the United States Trustee filed a notice with the bankruptcy court identifying changes to the membership of the Official Committee of Unsecured Creditors for Motors Liquidation Company (formerly known as General Motors Corporation ). The Official Committee of Unsecured Creditors initially had 15 members when appointed on June 3, 2009, but its membership has now been reduced to ten. The five former members which are no longer part of the Creditors' Committee are the Pension Benefit Guaranty Corporation, Interpublic Group, DENSO International America, Inc., Paddock Chevrolet, and Saturn of Hempstead, Inc. The remaining ten members of the Committee are: * Wilmington Trust ... Read Full Story

On November 25, 2009, Judge Judith H. Wizmur, the Chief Judge of the United States Bankruptcy Court for the District of New Jersey, entered an order setting the deadline for the filing of certain administrative expense claims against Adamar of New Jersey, Inc. and its affiliate, Manchester Mall, Inc. Adamar and Manchester Mall filed for chapter 11 protection on April 29, 2009. The companies operate the Tropicana Casino and Resort - Atlantic City , which has 2,129 rooms and the third largest casino floor in Atlantic City. At the time of the bankruptcy filings, the companies argued that "the extraordinary facts and circumstances precipitating ... Read Full Story

Freedom Communications, owner of The Orange County Register in California and other media properties, is seeking approval of a $300,000 bonus plan for its chief financial officer. Freedom says Mark McEachen deserves the bonus because he is serving as both chief financial officer and chief restructuring officer in the company's Chapter 11 bankruptcy. Freedom's creditors committee and U.S. trustee oppose the bonus plan. But former Dallas Morning News publisher and Associated Press board chairman Burl Osborne, who is Freedom's interim CEO, said Monday that he and the board support the plan. It calls for McEachen to receive $250,000 upon confirmation of a reorganization plan, ... Read Full Story

Bankruptcy laws give debtors a way to divide their assets among creditors and completely eliminate some debts after the assets have been distributed. The most commons bankruptcy chapters are 7 and 13. Under Chapter 7, sometimes known as liquidation, a bankruptcy trustee gathers and sells the debtor's nonexempt assets, and uses the proceeds to pay the creditors. A chapter 13 bankruptcy is also called a wage earner's plan. It enables individuals with regular income to develop a plan to repay all or part of their debts. Under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years. ... Read Full Story