Posts Tagged ‘Bankruptcy’

Competition Continues For General Growth Properties

Thursday, February 25th, 2010

Post from the Wall Street Journal regarding the General Growth bankruptcy:

“The takeover battle for mall owner General Growth Properties Inc. reached a boiling point Wednesday as General Growth unveiled a deal with Canadian property investor Brookfield Asset Management Inc. even as Australian mall owner Westfield Group considered entering the fray.

Westfield, which owns 119 malls in the U.S., Australia and Britain, signed a nondisclosure agreement this week to begin discussions with General Growth about a possible offer, people familiar with the matter said.

Westfield has $8 billion of borrowing capacity on hand, and is thus far acting alone, these people said.

As Westfield deliberated, General Growth laid out a plan …”

General Growth Properties owns Galleria at Tyler in Riverside, Moreno Valley Mall, and Redlands Mall in the Inland area. A bankruptcy judge will consider all  options for the hearing set for March 3.

Follow news about General Growth Properties at the Curtis Law Group Bankruptcy Blog.

Bankruptcy For Riverside Golf Club Closes Down Establishment Beloved By Locals

Thursday, September 3rd, 2009

Chapter 11 Bankruptcy has led a beloved local Golf Club in Riverside to close it’s doors.

From the Press-Enterprise, online:

“The Riverside Golf Club closed for good Wednesday, still owing the city more than $300,000 and holding thousands more belonging to a couple who had poured their life savings into a wedding they had planned there for Saturday.

The closure of the club, at least a half-century old, also sent other patrons scrambling to find alternate links to play and conference rooms to meet in.

Howsmith Corporation, which leases the property from Riverside Public Utilities, has been in arrears since November 2006 and owes $334,000, said City Councilman Mike Gardner, whose Ward 1 includes the club. “I’m surprised,” he said. “I had no idea this was coming.”

Howsmith filed for Chapter 11 bankruptcy Aug. 14, according to the bankruptcy document. A Web site lists Jacklyn Smith as the president of the Riverside company founded in 1979. No one answered at the phone number listed at the same address as the Riverside Golf Club.

Wednesday, John Lee Brown and Dimitra Kelly stood outside the locked gates of the parking lot of the shuttered clubhouse and banquet hall at 1011 N. Orange St.

They’d invited 100 guests to their wedding Saturday.

“This is a tragedy,” said Kelly, 40, who said they’d sunk $8,000 into the kaput celebration. “We had our rehearsal dinner there last Friday. They just faxed me the seating arrangement yesterday.”

Christopher R. Barclay, a trustee for Howsmith Corporation, was on the premises Wednesday. He refused to comment and ordered a reporter to leave. Rancho Cucamonga-based Dennis Baranowski, the corporation’s attorney, could not be reached.

“It’s a shame it’s closing,” said Jerry Seinturier, 56, who remembers the golf course from the 1950s. He plays in the golf league at Bourns Inc. where he works, but learned Wednesday morning that their evening round and banquet had been canceled. The greens had withered to browns over the past two years, he said, but the price was right: $10 for walkers, $15 for riders. “I have no idea where we’ll play now,” Seinturier said.

That leaves only one other 18-hole municipal golf course in Riverside, Sky Links at Van Buren Boulevard. The other city-owned course, at Fairmount Park, is nine holes.

Ken Truelock was shocked to learn that the golf clubhouse was closed for Wednesday’s noon meeting of the Magnolia Center Exchange Club, a service group. “We had a board meeting here yesterday,” he said. “I’m disappointed.”

But Kelly and Brown, who’ve been together eight years and have four children, were crushed. They paid the $837 balance several days ago on the $3,000 owed for the rental hall and appetizers.

Plus, they’ve shelled out another $5,000 for the disc jockey, photographer, flowers, minister, decorations, wedding gown, tuxedo and bridesmaids’ jewelry.

Kelly and Brown said Barclay told them to file a claim.

“We’re depleted,” said Kelly, tears running down her cheeks. “I’m extremely upset and embarrassed. We’ve got all this out-of-state family coming.”

Bankruptcy Filed By “Erin Brockovich” Law Firm

Wednesday, August 26th, 2009

Bankruptcy filings are never glamorous, but sometimes those involved have themselves spent time in the spotlight for prior events or accomplishments of note.  One such entity is the law firm featured in the Julia Roberts film, “Erin Brockovich.”  From the WSJ blog:

“The personal injury law firm that handled the water contamination case featured in the movie, Masry & Vitotoe, earlier this month filed for bankruptcy protection.

According to Lisa Cohen, a spokeswoman for the firm, based in Westlake Village, Calif., the filing was the unfortunate result of a squabble for funds after the death of founding partner Edward Masry in 2005 (played in the movie by Albert Finney).

According to a report in the Dow Jones Daily Bankruptcy Review, a number of litigants had come forward alleging that Masry promised them assets and cash from the firm. His own estate and heirs also filed claims. All told, the law firm spent more than $3 million related to the claims and ensuing litigation.”

Most Chapter 7 Bankruptcy Filing Cities in Inland Empire, June 2009

Friday, July 3rd, 2009

For bankruptcy attorneys in Riverside and San Bernardino counties, there was no shortage of Chapter 7 bankruptcies to be filed in June, 2009.  And for the second month in a row, the top ten cities in the Inland Empire with the most Chapter 7 bankruptcy filings has remained the same.

The ten cities with the most Chapter 7 bankruptcy filings in the Inland Empire for the month of June 2009 were: Corona, Fontana, Moreno Valley, Murrieta, Ontario, Rancho Cucamonga, Riverside, San Bernardino, Temecula, and Victorville. Other Inland Empire cities that also had a high number include: Hemet, Hesperia, Lake Elsinore, and Rialto.

Homebuilder’s Bankruptcy Leaves Empty Lots in Riverside County

Thursday, June 25th, 2009

From the North County Times online:

“The bankruptcy of a major regional homebuilder has left two large tracts in Southwest Riverside County with hundreds of empty lots, prompted a lender to foreclose on one and a homeowners association to demand $2 million in compensation.

John Laing Homes, of Irvine, built a links-style golf course near Lake Elsinore’s baseball stadium and said as recently as March 2008 that it planned 1,500 homes at the neighboring Summerly development. Laing also built several dozen houses at the Holiday senior community in Menifee, with plans to extend the development to nearly 200 homes.

But construction has remained stalled amid weak real estate markets.

The builder filed a Chapter 11 bankruptcy petition in February, seeking temporary relief from debt estimated between $500 million and $1 billion. The Delaware judge handling the case ordered the company liquidated in early June after concluding that the company lacked the assets to cover that debt and re-emerge successfully, according to court records. Messages left with the trustee were not returned.

A lender appears to be foreclosing on parts of the Summerly development. Lawns at a half-dozen model homes are overgrown with weeds, and notices recently posted on the houses indicate a foreclosure auction is scheduled in mid-July, a neighbor said.

Residents of the Holiday development and the 4S Ranch development in San Diego’s Ranch Bernardo neighborhood have filed claims against the builder’s bankruptcy estate.”

For more bankruptcy news, visit Curtis Law Group

Bankruptcy Protection for Eddie Bauer Holdings, Inc.

Friday, June 19th, 2009

From CNN online:

“Eddie Bauer Holdings Inc. filed for Chapter 11 bankruptcy protection Wednesday, citing an inability to pay back debt.

Eddie Bauer (EBHI) emerged from Chapter 11 bankruptcy in 2005 after being spun off from former owner Spiegel Catalog, which itself sought bankruptcy protection in 2003.

Costs from the 2005 reorganization, combined with pressure from the current recession, left the company ‘with no choice but to use this process to reduce the debt load,/ said chief executive Neil Fiske in a prepared statement.’”

Eddie Bauer has 371 stores nationwide.  In San Bernardino County, there is an Eddie Bauer store in Rancho Cucamonga at Victoria Gardens.  In Riverside County, the Dos Lagos Center in Corona also has an Eddie Bauer store.  It seems that no closings are imminent, but if a new buyer takes over, however, it’s unclear what effect that would have on store closings.

For More Information on bankruptcy, click here

Riverside County Bankruptcy for Valley Health System

Tuesday, April 14th, 2009

Bankruptcy looks like it has struck another organization in Riverside County, this time in the health care industry.

Members of the Valley Health System board of directors on Monday tried to assure employees and constituents that the district is headed in the right direction, despite losses of nearly $3 million since the end of last year.

The board met for its first meeting since the health care district, which includes two hospitals, announced the reassignment of Hugh King, its chief financial officer and administrator at Hemet Valley Medical Center.

The district’s other hospital is Menifee Valley Medical Center.

King’s departure comes as the health care district, which declared bankruptcy in December 2007, fails to meet financial projections, according to records.

The district was projected to earn almost $2.1 million between December and February.