Category Archives: Bankruptcy

Catholic Crosiers Order Files for Bankruptcy Wall Street Journal (subscription) The Crosier Fathers and Brothers, a Roman Catholic religious order with ministries in the U.S., filed for bankruptcy Thursday, facing more than 40 lawsuits tied to past child sexual-abuse allegations. The Crosiers sought chapter 11 protection with the ...

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Catholic Crosiers Order Files for Bankruptcy - Wall Street Journal (subscription)

Supervalu will benefit from Marshs bankruptcy, said Supervalu Inc. President and CEO Mark, at the RBC 2017 Consumer & Retail Conference on Wednesday

The two companys agreement began last summer, nearly a year before the Indianapolis-based Marsh Supermarkets filed for bankruptcy and began the search for a new owner.

The market is ever increasingly competitive and the competition is not lessening. It puts stress on our customers and it also gives an opportunity, said Gross. We got the Marsh business. The Indianapolis market (is) competitive. Meijer came into that market. Kroger turned up the heat in response to Meijer.

Gross said that the distributor attempted to help Marsh once the failed grocer became Supervalus client.

Part of what we said to Marsh is, youve got to cut your overhead expenses, youve got to take advantage of our back office, said Gross. He feels other grocers in similar positions may look at Marshs slow adaptation rate and learn from it.

As for Supervalu, Marshs fall gives it an opportunity to stock the stores that will remain and gain new clients when buyers absorb other locations.

Our goal in those cases is that, for the most part, the locations that the customer owned were good grocery locations. Their execution in that box was probably not optimum. But there should be a grocer in that location and there should be a grocer that we supply, said Gross.

There are 40 stars in the Marsh universe today and Id like to supply 30 of them, he added.

Gross also discussed retails role in the distributors overall plans. Im a grocery wholesaler, Gross said during a presentation. Ive run retail, but I am first and foremost a wholesaler. That is where our strengths lie. That is our core business and that is where our growth lies.

The comments come on the heels of Supervalus sale of Save-A-Lot retail storesto Canadas Onex last fall. The sale price nearly hit $1.4 billion.

With the successful completion of the Save-A-Lot sale, we are well positioned for the future with a stronger balance sheet, the opportunity to more strategically invest in our business, and the ability to more keenly focus on our core business as a leading grocery wholesaler, Gross said in a statement at the time of the sale.

Nearly a quarter of a year later, Gross is pleased with the decision to move further away from retail, a segment that he referred to as test lab on Wednesday.

Saying that retail allows Supervalu to serve its customers better by allowing the distributor to be exposed to the retail experience firsthand, Gross is not sure you need 200 stores or 220 stores to have a test lab.

Bill Kirk, US Food Retail Analyst for RBC Capital Markets and the discussions moderator, released a statement after the event agreeing with Grosss decision to reduce the companys retail footholds.

With the sale of Save-A-Lot, Supervalus exposure to macro and competitive pressures is reduced, said Kirk in the statement. With easing deflation/eventual inflation, a very strong wholesale win pipeline, and under-appreciated real estate portfolio, we believe SVU has significant upside.

Supervalu is based in Eden Prairie, Minn., and operates a range of grocery formats and merchandising programs through a network of 2,012 stores.

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Supervalu CEO sees opportunity in Marsh bankruptcy - Supermarket News

Mavericks Surf Contest Organizers Call Off Bankruptcy Auction Wall Street Journal (subscription) Titans of Mavericks LLC and its parent company Cartel Management Inc. said in court papers Wednesday it canceled the auction because the company received no qualified bids for its assets. An auction could have resulted in a bankruptcy sale that would ... and more »

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Mavericks Surf Contest Organizers Call Off Bankruptcy Auction - Wall Street Journal (subscription)

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Empty grass seed bags and other remnants of unfinished work remain at the Delaware Sports Complex in Middletown a week after owners declared bankruptcy on the multi-million dollar project.(Photo: Jerry Smith/The News Journal)Buy Photo

Progress on the massive indoor-outdoor sports complex on the south side of Middletown came to an abrupt halt last week when its owners filed for Chapter 11 bankruptcy protection.

The proposed $13 million Delaware Sports Complex was to feature 15 full-size grass fields for soccer, lacrosse or field hockey and 16 baseball diamonds. Alsoproposed was a 160,000-square-foot indoor facility with a World Cup-size indoor field and three hard courts.

Work on the complex, located on 319 acres of property at 955 Levels Road near U.S. 301 and the Maryland-Delaware border west of town, was started in 2015 by original owners Brian Ellis, of Middletown, and Scott Lobdell, of Townsend.

Six fields have been completed to date, as well as the beginnings of a parking lot. The town said it had installed infrastructure to provide irrigation to the fields, including pipes for wastewater.

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According to court documents, Delaware Sports Complex LLC owes 13 creditors more than $2.2 million. The top claimants include Nichols NurseryInc. (Newark), which lists $811,337 in unsecured claims; Van Cleef Engineers (Hillsborough, N.J.) is owed $205,483, and the Town of Middletown is owed $195,000.

Ellis is listed as one of the 13 creditors owed money ($71,900), as is Lobdell ($30,778). Lobdell'sSummit Bridge Properties is owed $54,995.

Manager Daniel Watson of Easton, Maryland, signed the bankruptcy action as the authorized representative of the Delaware Sports Complex and was named as the current equity holder.

"We were led to believe the financing was there and everything was in place," said Middletown Mayor Kenneth Branner. "It was a shot in the gut when we heard. We were players and partners in the project and now that has come to a complete stop."

Branner said the Town of Middletown agreed to lease the land to Delaware Sports Complex LLC for $1 per year for 99 years.

He said that for the past 18 months, town officials have met with DSC representatives at weekly meetings on Thursday mornings.

They told us they were scheduling tournaments and were very adamant that things were going well," Branner said. "But then about six months ago, we started getting reports of unpaid bills and we knew something wasn't right."

That prompted the Town of Middletown to file an eviction claim against DSC in court on March 17. The filing of the Chapter 11 petition stayed those proceedings, which were to occur May 25, just two days after the filing on May 23.

We said they werent living up to the terms of the agreement we had with them, Branner said.

Other Middletown entities making the list of creditorsinclude: MDR Golf ($105,500) and the Delaware Revolution Soccer Club ($36,000).

Additional unsecured claims are: Saul Ewing LLP of Wilmington ($19,777), Liborio Watergate of Wilmington ($13,000), B&B High Tech Solutions, LLC of West Berlin, N.J. ($8,430), Landscape Architectural Services of Dover ($7,000) and Northern Tier Landscaping of Wilmington ($3,000).

Only six fields at the Delaware Sports Complex in Middletown were game-ready, prompting owners to declare bankruptcy on the mult-million project.(Photo: Jerry Smith/The News Journal)

While the town of Middletown is in limbo with what it can do with the land until the bankruptcy hearings are completed, Branner believes there can and will be a positive outcome to the situation.

"Everything has stopped right now, but we want to remedy this as quickly as possible," the mayor said. "There is no way we won't go forward sometime in the near future."

Branner said he has already received a number of calls from interested parties wanting to talk about the use of the town-owned land for similar projects. And while law prohibits the mayor from talking to these interested parties, he said he is confident that as soon as he is legally able, those discussions will take place.

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"We believe in this concept," Branner said. "We'll put it out for RFP (request for proposal) as soon as we are able."

Branner feels the bankruptcy filing is a mere bump in the road and is sure there will be a sports complex on Levels Road, one that will be similar in scope to that of the Delaware Sports Complex LLC plan.

"Once this is resolved, we'll go back and do another plan," he said. "It will be something to enhance the community. That's what we thought about the planned complex. The community totally supported it and I don't think that will change."

Action from the Shooting Star Easter Tournament on April 14-15 that saw 84 U14, U16 and U19 field hockey teams with hundreds of players from around the Mid-Atlantic region competing at the complex.(Photo: Jerry Smith/The News Journal)

South on Del.1 about 36 miles sits a reminder of how successful a sports complex with a similar concept can be.

DE Turf Sports Complex opened on April 1 andhosted its first, and perhaps largest, tournament of the young season on April 14-15. The Shooting Star Easter Tournament saw 84 U14, U16 and U19 field hockey teams with hundreds of players from around the Mid-Atlantic region competing at the complex.

The weekend was an absolute success, said DE Turf Sports Complex Executive Director Chris Giacomucci.

The$24 million complexfeatures 12 multi-purpose synthetic turf fields that can be set up for soccer, lacrosse and other field sports. One of the 12 will be a championship stadium, with seating for about 700. Five fields feature lights and only the championship field will have seats and an electronic scoreboard.

In the meantime, the Town of Middletown has to worry about standing water, weeds and tall grass overtaking the work that has already been done and general upkeep of the land.

"It could take a couple of months or a year, so we need to be thinking about that," Branner said. "The grass is getting high, so something needs to happen out there."

Reach Jerry Smith at jsmith17@delawareonline.com. Follow him on Twitter at @JerrySmithTNJ.

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Delaware Sports Complex in Middletown files for bankruptcy - The News Journal

One out of every five Payless shoe stores could close this year.

The discount shoe retailer has struggled with debt for months, and entered bankruptcy in early April with plans to shutter roughly 400 stores, nearly all of them in the United States. Now the chain is asking a bankruptcy judge if it can close another 400 locations, bringing the total to about 800 -- or 20% of the 4,000 stores it operates.

The list includes three locations in Hawaii, 11 in Connecticut, 13 in Louisiana, 17 in Arizona, 17 in New Jersey, 18 in Michigan, 39 in Florida, and a whopping 117 stores in Texas and 132 in California. USA Today listed all the Payless locations that look like they will be shuttered in 2017, so check it out if you're wondering if your mall's Payless could soon disappear.

Payless is one of many brick-and-mortar-based retailers struggling to keep sales up in the age of Amazon -- and, more broadly, convenient, low-price online shopping. Retailers such as Office Depot, Barnes & Noble, Children's Place, Sears, and Walgreens closed hundreds of stores last year, and retail experts say that up to one-third of American malls are likely to close in the near future.

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Payless Shoes Wants to Close 800 Stores This Year - Money Magazine

JOC.com

Rickmers Group to file for bankruptcy JOC.com Rickmers Group, one of the world's leading ship owner and management companies, said it will file for insolvency after HSH Nordbank rejected its debt restructuring proposals. The bank's highly surprising decision means that Thursday's bondholders' ... German Shipping Firm Rickmers to File BankruptcyWall Street Journal (subscription) Shipping group Rickmers to file for insolvency as revamp fails ...Reuters all 15 news articles »

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Rickmers Group to file for bankruptcy - JOC.com

Pittsburgh Post-Gazette

Struggling Pittsburgh Athletic Association files for bankruptcy Pittsburgh Post-Gazette The iconic Pittsburgh Athletic Association in Oakland, formed 109 years ago as a meeting place for Pittsburgh's business and cultural elite, has filed for Chapter 11 bankruptcy protection. A filing Tuesday morning, in U.S. Bankruptcy Court for the ...

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Struggling Pittsburgh Athletic Association files for bankruptcy - Pittsburgh Post-Gazette

Deutsche Bank National Trust Company and Bank of New York Mellon Trust Company filed with the U.S. Bankruptcy Court separate objections to Novation Companies Second Amended Joint Chapter 11 Plan of Reorganization.

Deutsche Bank National Trust Company asserts, Without providing any factual or legal justification, the Debtors Plan improperly and unfairly establishes a separate class for the claims of only a few creditors, including the Trustees claims, and proposes to treat them drastically worse than other similarly situated general unsecured creditors. Because the Plan improperly classifies and unfairly discriminates against the Trustees claims, the Plan fails to satisfy the Bankruptcy Codes standards for confirmation and should not be confirmed. Even assuming the Court determines that separate classification of general unsecured claims is appropriate, the Trustees claims are more appropriately classified as General Unsecured Claims and not RMBS Litigation Claims, as there is no similarity between the Trustees claims and the other claims the Debtors have classified as RMBS Litigation Claims.

In addition, Moreover, the Debtors proposed treatment of RMBS Litigation Claims more severely prejudices the Trust than the other holders of RMBS Litigation Claims. The Trust is a securitization trust that is designed to amortize down and liquidate. The Trust had originally issued nearly $1.9 billion in securities. As of April 2017, there were only $491 million in securities, with that total amortizing down every month. In addition, under the Trusts governing documents, the Trusts servicer is entitled to liquidate the Trust when the loan balances in the Trust are equal to or less than 10% of the original value of the Trust. As of April 2017, the loan balance percentage was under 21% and reducing every month. The Trust, which has a limited life, is reducing in size each month and, at some point in time, will be liquidated. Payment of claims over a ten-year period, therefore, runs the possibility of prejudicing the liquidation of the Trusts and its beneficiaries.

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Novation Companies Bankruptcy Objections Filed - Bankrupt Company News (press release) (blog)

Hartford, Connecticut, is on the brink of bankruptcy and is in a scramble to keep its balance sheets in the black as it turns to negotiations with workers unions and scrimping on spending.

Yahoo News reports that the city is currently seeking $40 million in state funding to help mitigate the deficit in next years roughly $600 million budget. However, the financial support comes with caveats, such as spending cuts and collaborating with local workers unions to cut costs.

The state of Connecticut itself is facing a $5 billion deficit over the next two years, Yahoo also reported.

According to the report, the supplementary fund from the state will be key to maximizing a $50 million donation from the citys three major employersinsurers Aetna, Travelers and The Hartford.

Mayor Luke Bronin, who took office in 2016, said that the donation from the insurers is conditional on it being a part of a comprehensive, sustainable solution for the city.

The city has had to depend on short term borrowing to cover payroll and operating costs and has sought proposals from law firms that specialize in municipal bankruptcy law, the report added.

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City turns to insurers to help stave off bankruptcy - Insurance Business America

SAN BERNARDINO >> Almost five months after a U.S. Bankruptcy Court judge confirmed the citys bankruptcy exit plan, San Bernardino has settled all but two of the cases appealing that decision.

Theres no definite timeline for the appeals, but they could appear in court within a few months. After that, if both sides remain entrenched, appeals could last years, with attorneys in the case predicting a trip to the U.S. Supreme Court and a possible upheaval of the bankruptcy plan the city spent four years and $20 million crafting.

If the appeal is successful, it could upset the entire judgment, said attorney Gary Casselman, who is appealing the case. Theres risk for everyone. Thats why cases settle, because everyone looks over their shoulder at what could go wrong. But so far we havent settled.

Both attorneys cases stem from police lawsuits regarding use of force. Under the citys plan, their clients would receive 1 cent for every dollar a jury awards them.

And they also would be blocked from collecting any money from city employees a court might consider responsible for damages that occurred before the bankruptcy filing.

My client has had eight or nine surgeries and is at risk of losing her arm or at least elbow because of what happened, Casselman said. She might lose her house. And I think the city could afford much more, when their bankruptcy attorneys cost ($20 million).

Casselmans client, Rovinski Renter, alleges that in 2010 a San Bernardino police officer responded to a call of an unruly ex-tenant at Renters house. She told the officer in salty language to remove the tenant, and the officer allegedly grabbed Renter by the arm, breaking it. She was then handcuffed without medical care for 30 minutes, according to the lawsuit.

City Attorney Gary Saenz said he cant discuss the appeals because theyre ongoing litigation, and he cant yet give details of the two other appeals related to police use of force that were recently settled.

We have two appeals pending, he said. We still have, apart from the appeals, a number of claims were attempting to make settlements with those. Those that have not been settled will go through an ADR alternative dispute resolution process, which is essentially a mediation and an unbiased third party mediator will be selected. We havent laid out the specifics of that yet, but that will come shortly. Hopefully, well get a lot of the cases resolved through that process.

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Saenz has previously said the city had to do what was best for city residents, and he agreed with Judge Meredith Jury that there was no legal reason civil rights creditors should be paid more than others who have lawsuits against the city.

The city shed $350 million in obligations during the bankruptcy, which it filed after discovering a $45 million deficit for the 2012-13 fiscal year.

But its not just about the citys plan to only pay 1 percent of what it owes, said attorney Donald Cook, whose claim concerns a pet dog shot by a police officer. Its that the plan takes what he says is the unprecedented step of blocking the city from suing the police officer responsible or the police chief.

The city filed for bankruptcy, Cook said. In bankruptcy, you wipe out the debts of debtors. But the police chief and (the officers) didnt file for bankruptcy. A bankruptcy court cant adjudicate my clients claim against them.

In other municipal bankruptcies which are rare courts have avoided ruling on whether creditors can collect debts from the individual employees named in claims.

In addition, the U.S. Supreme Court ruled in 2011 in a case springing from the dispute of Anna Nicole Smith and the son of her late husband that bankruptcy courts have limited powers because theyre created by Congress, rather than specifically created by the Constitution.

That means a district court should decide the issue, Cook said.

In court, the city has argued that allowing continued lawsuits against officers for pre-bankruptcy cases would lead to an exodus of officers in a city already struggling to fight its high crime.

And other cities, contemplating bankruptcy but worried about still being on the hook for judgments against their employees, will join legal enthusiasts in closely tracking the case, Cook predicted.

Thats the big issue, he said. I think it will get a lot of attention, whoevers reviewing it at the higher court level, because this is something that a lot of municipalities and counties are worried about.

Cooks clients, Hector Briones and Roseland Harding, allege that in 2009, San Bernardino police responding to a cellphone 911 call traced incorrectly to their address forced open a locked gate and opened a closed door to enter their home. Their dog then ran up in a friendly way, according to Cook and an officer fatally shot the dog, Mammas.

Both the cases being appealed and two others that were recently settled have been delayed since before the city filed for bankruptcy in 2012, waiting for the bankruptcy case to resolve.

Attorney Duane Folke said the prospect of continuing to wait longer potentially years led his client, Paul Triplett, to settle this month.

I would have liked to have seen it be a little bit more equitable for my client not just me as the attorney, obviously, my poor client was put into a coma for three days and had a number of bones broken and a lot of maladies that are the result of what happened to him, Folke said. There are no winners here, thats for certain. But hopefully everybody will be able to get a fresh start.

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Why two attorneys are appealing San Bernardino's bankruptcy ... - San Bernardino County Sun