The Reader’s Digest Association, Inc. (“Readers Digest”) has requested authority to file a consolidated list of the 30 largest unsecured creditors for itself and its 47 affiliated Debtors (the “Top Unsecured Creditor List”) in lieu of a separate list for each of the debtors. None of the trade claims were listed as unliquidated or disputed, and only the trade claim of TI Circulation Holdings LLC was listed as contingent.
Bankruptcy Cases of Interest to Suppliers, Landlords, Lessors, Bankruptcy Creditors
Posts and discussion of recent bankruptcy cases of interest from a supplier, commercial landlord, equipment lessor or other unsecured creditor standpoint.
Readers Digest Bankruptcy – Debtors and Petitions
The Reader’s Digest Association, Inc. and 47 affiliated entities (”Debtors”) filed petitions on August 24, 2009 in Bankruptcy Court for the Southern District of New York for relief under Chapter 11 of Title 11 of the United States Code. The Debtors hold an aggregate of approximately $2.2 billion in assets and approximately $3.4 billion in liabilities as indicated in their most recent unaudited financial statements as of June 30, 2009. The Debtors estimate that they have approximately 1,400 vendors on a consolidated basis with outstanding pre-petition claims in the amount of approximately $90 million. The US bankruptcy proceedings are being consolidated for administrative purposes only under the The Reader’s Digest Association, Inc. case number 09-23529. The following is a listing of the Debtors and petition numbers.
Finlay Enterprises – 30 Largest Unsecured Bankruptcy Creditors
Finlay Enterprises, Inc. (“Finlay”) has requested authority to file a consolidated list of the 30 largest unsecured creditors for itself and its affiliated Debtors (the “Top Unsecured Creditor List”) in lieu of a separate list for each of the Debtors. Although none of the claims were identified as disputed, Finlay states in a footnote to the list that “[a]ll claims are subject to customary offsets, rebates, discounts, reconciliations, credits, and adjustments, which are not reflected on this list.” Additionally, all of the supplier claims are identified as “partially secured.”
Finlay Jewelry Bankruptcy – Debtors and Petitions
Finlay Enterprises, Inc. and 7 affiliated entities (”Debtors”) filed a petitions in United States Bankruptcy Court for the Southern District of New York for relief under Chapter 11 of Title 11 of the United States Code. The Debtors are among the leading retailers of fine jewelry in the United States. Debtors have approximately 77 department store locations and also operate approximately 106 stand-alone jewelry stores doing business as Bailey Banks & Biddle, Carlyle & Co. Jewelers LLC, and L. Congress, Inc.
Bashas’ and its Secured Lenders Find Something they Agree on: We Need An Accountant!
During the three weeks following the date of its bankruptcy, Bashas’ has locked horns with its secured lender group (a consortium including Compass Bank, Wells Fargo and BankAmerica) on numerous matters – all substantive and all important for Bashas’ prospects. They finally have found an issue on which they agree – they all want to pay big dollars for restructuring advice.
Bashas’ Makes Good on Announced Plans to Shutter Fifteen Stores; What Does this Mean to Suppliers?
Prior to filing its bankruptcy reorganization proceedings on July 12, 2009, Bashas’ announced its intention to close unprofitable stores. Bashas’ now has followed through and requested bankruptcy court authorization to reject fifteen store leases. Bashas’ election to reject these unexpired leases, coupled with the extent to which it rejects additional store leases, serves as a forward indicator on the direction of its reorganization and the extent of recovery by the unsecured trade creditors.
Cooper-Standard Automotive Combo 503(b)(9) Claims, Essential Supplier and Foreign Vendor Motion
Cooper-Standard Holdings Inc. and its affiliated debtors (“Cooper-Standard Automotive” or the “Debtors”) have combined into one motion a request to allow payment of 503(b)(9) administrative expense claims, a request to allow payment of critical vendors a/k/a essential suppliers, and a request to allow for payment of foreign vendors. The dollar amount of pre-petition claims Cooper-Standard Automotive is seeking to pay seems to vary between the motion and the interim and final orders. However, the relief requested in the interim order is for authority “to pay, in their sole discretion, as and when they come due, Essential [including 503(b)(9)] and Foreign Suppliers Claims in an amount that shall not exceed $19.5 million.”
Cooper-Standard – 30 Largest Unsecured Bankruptcy Creditors
Cooper-Standard Holdings Inc., (“Cooper-Standard Holdings”) has requested authority to file a consolidated list of the 30 largest unsecured creditors of Cooper-Standard Holdings and its affiliated Debtors (the “Top Unsecured Creditor List”) in lieu of a separate list for each of the Debtors. As could be expected, the Top Unsecured Creditor List is heavily populated with automotive suppliers.
Cooper-Standard Automotive Bankruptcy – Debtors and Petitions
Cooper-Standard Holdings Inc. and 12 affiliated entities (”Debtors”) filed a petitions in Bankruptcy Court for the District of Delaware for relief under chapter 11 of title 11 of the United States Code. The Debtors are a leading global automotive manufacturer of fluid handling, body sealing, and noise, vibration and harshness control components, systems, subsystems, and modules, primarily for use in passenger vehicles and light trucks for global original equipment manufacturers and replacement markets.
Stant Bankruptcy 363 Sale; Have and Have Not Suppliers
The Stant bankruptcy is structured as a 363 Sale to an affiliate of an insider (i.e. a current equity holder). For suppliers this will be a case of suppler “haves” and supplier “have nots”. Each supplier should determine its classification as soon as possible. This bankruptcy likely will move fast – 45 days and the 363 sale will be done. Based on the limited financial information provided to date, administrative insolvency is a risk. So for some suppliers who don’t pay attention, this may be a bankruptcy that just keeps on giving.