Posts Tagged ‘Chapter 11 bankruptcy’

General Growth restructures $9.7 billion in debt

Thursday, December 3rd, 2009

General Growth, a Chicago based company, owns Tyler Galleria Mall of Riverside, Redlands Mall and the Moreno Valley Mall. General Growth has submitted their plan for Chapter 11 in hopes that 92 of their properties will not see a bankruptcy by the end of this year. A segment of the Associated Press article posted on SFGate is below:

“General Growth Properties Inc. said Wednesday lenders have agreed to restructure about $9.7 billion in debt under a plan that will allow 92 of its properties to emerge from bankruptcy protection by the end of the year. The nation’s second-largest mall operator will pay off loans that cover regional shopping centers, offices, community centers and related subsidiaries. The plan will allow the real estate investment trust to retain ownership of the properties, including the Ala Moana Center in Honolulu and the Harborplace & The Gallery in Baltimore.

The Chicago-based company expanded aggressively during the real estate boom, amassing $27 billion in debt. As the real estate market imploded and financing dried up, General Growth was unable to refinance its short-term loans and in April became the largest U.S. real estate company to file for bankruptcy.”

Read the full article posted on SFGate here.

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.”

GM Will Survive Bankruptcy, But With $48 Billion in Debt

Thursday, July 9th, 2009

From Bloomberg news:

“General Motors Corp., which is preparing to sell its best assets to a streamlined new entity, will carry with it liabilities of $48.4 billion, a bankruptcy judge said.

The new GM agreed to take on those obligations to benefit creditors, U.S. Bankruptcy Judge Robert Gerber in New York said in a ruling on July 7 that denied a quick appeal to opponents of the sale. The debt will be offset by GM’s most competitive assets, such as Cadillac, Chevrolet, Buick and GMC.

Gerber previously approved the sale of most of GM’s business to a U.S. Treasury-funded buyer and said the company could complete the deal any time after today at noon. The Treasury has set a July 10 deadline for the sale.

Detroit-based GM entered bankruptcy court on June 1 reporting global liabilities of $176.4 billion as of Dec. 31. The old GM will be left with GM’s remaining obligations and unwanted assets, including contaminated factory sites, a parking lot in Flint, Michigan, and a nine-hole golf course in New Jersey.

Gerber ruled on July 7 that asbestos and accident victims couldn’t block the sale or take their opposition directly to an appeals court, bypassing the intermediate district court. He said in a written decision that if GM were forced to liquidate because an appeal blocked the sale, creditors could lose $66.6 billion in value.”

For More Information, click here

Chapter 11 Bankruptcy Filed By GM

Monday, June 1st, 2009

Attention, Riverside and San Bernardino counties, your favorite GM dealership might not be around in a few months. Today, GM filed for Chapter 11 bankruptcy, and is expected to close a number of dealerships over the course of its restructuring, which is estimated to take 2-3 months. GM dealerships in the Inland Empire include those in the cities of: Corona, Hemet, Moreno Valley, Redlands, Riverside, San Bernardino, and Victorville.

From the Los Angeles Times online:

President Obama said that pushing General Motors Corp. into bankruptcy today was a painful but necessary step to revive the legendary automaker, saving thousands of jobs and avoiding another direct hit to the struggling economy.

“‘Working with my auto task force, GM and its stakeholders have produced a viable, achievable plan that will give this iconic American company a chance to rise again,’ Obama said at the White House just hours after the company filed for bankruptcy protection this morning in a Manhattan courtroom…

‘Simply loaning GM more money, instead of taking equity in the company, would have continued to saddle GM with ‘irresponsibly large debt,’ the reason the company is in its current dire position, Obama said.

‘We are acting as reluctant shareholders because that is the only way to help GM to succeed,’ he said. ‘What we are not doing, what I have no interest in doing, is run GM.’”

For More Information, click here

Riverside RV Company Files for Chapter 11 Bankruptcy

Thursday, March 12th, 2009

A Riverside RV company, well known for years as a giant in the industry, has fallen victim to the economic crisis and the company’s bankruptcy attorney has filed for Chapter 11 bankruptcy on its behalf.

“Fleetwood Enterprises Inc., the iconic Riverside-based maker of recreational vehicles and manufactured housing that has ferried road-trippers and housed owners for 59 years, has filed for Chapter 11 bankruptcy.

The company announced Tuesday morning that it would keep day-to-day operations of its businesses going while it shops for a buyer.

Its travel trailer division though will be shuttered, affecting 667 employees nationwide including 12 at the company’s Rialto service center.

The company laid off another 65 Inland workers in corporate positions Monday. More than 600 workers remain in Riverside.”

Going Down? Elevator Music Company Files for Bankruptcy

Thursday, February 12th, 2009

This is one bankruptcy that Riverside County residents may be ambivalent about, depending on their taste in music.  Musak, whose music fills elevators and “on hold” messages for phone systems, is filing for Chapter 11 bankruptcy. Apparently, the global economic crisis that has led many Riverside County residents to seek a bankruptcy attorney is not the culprit this time. Musak’s CEO said that debt from a decade ago is the true source of their need to file for bankruptcy protection.

From CNN online:

“Muzak, the company that put pop, string-filled arrangements of rock songs in your elevator, filed bankruptcy papers Tuesday after it missed a $105 million payment to creditors.

The pipeline of easy listening will continue to flow as Muzak restructures its debt during the Chapter 11 process, the company said.

“Muzak is a solid business with an outstanding customer base, but we are burdened with substantial debt obligations established over a decade ago,” Muzak CEO Stephen Villa said.

Muzak’s cash flows doubled in the last three years, Villa said, “demonstrating that our business continues to perform well even in today’s challenging environment.”

Along with its ubiquitous elevator offerings, Muzak and its 14 affiliates — all privately owned — produce on-hold messages and install sound systems, digital signs and drive-thru systems for retail businesses.

Bankruptcy documents showed Muzak owes its largest creditor — U.S. Bank, as indentured trustee — about $370 million, nearly all of it due this year.

Muzak spokeswoman Meaghan Repko said the filing was voluntary and in cooperation with the creditors.

The weakened global economy was not a factor, she said, noting the company’s profits have been rising in recent years.

The Chapter 11 protections will allow Muzak time to restructure the debt, which was incurred a decade ago, she said.”

Riverside County, with cities such as Corona and Riverside that abound with commercial buildings and offices, has many elevators and phones that have been using Musak for years.