JANUARY/
FEBRUARY 2012
BANKRUPTCYupdate
because state law prohibited the city
from filing and the council needed Mayor
Linda Thompson to back its Chapter 9
petition, which she opposed.
S YMS CORP. AND SUBSIDIAR Y FILENE’S BASEMEN T canceled their auction for store
leases that was scheduled for December 23, a BusinessWeek article reported. The
company was to go before the U.S. Bankruptcy Court in the District of Delaware on
December 28 to discuss not only the approval of the now defunct store lease sales
but also the fact that its official shareholders’ committee will oppose the approval
of a settlement agreement with a landlord in Manhattan. If the court approves
the settlement, Syms would have to pay $2.6 million to this landlord in a lease
termination fee, as well as about $700,000 to a real estate broker, the article
said. The committee believes the lease termination could have been included in the
auction of leases that was recently canceled.
The company also announced that Hilco Streambank was retained in late
November to conduct the liquidation of the companies including its intellectual
property assets. The trademarked Running of the Brides name and Filene’s
Basement trade name are just two of many intellectual property assets slated to
be sold at auction. The auction will also include the Syms trade name, various
trademarks, Internet URLs, websites and other assets.
Original Joe’s Signs Deal to Buy
Elephant & Castle
An affiliate of the Original Joe’s
restaurant chain signed a deal to acquire
Elephant & Castle Group, an operator
of British-style restaurant pubs in the
U.S. and Canada for $22.75 million.
The bid could be approved if there are
no better offers for the company, a
Business Week article said. Elephant &
Castle filed for bankruptcy protection
in the U.S. Bankruptcy Court in the
District of Massachusetts and in Canada
in June. The company owes GE Canada
Equipment Finance $18.8 million and
Fifth Street Finance $3.5 million.
Syms Corp and Filene’s Basement filed for Chapter 11 protection in early
November. Filene’s had previously filed for bankruptcy protection in 2009.
Following the filing, Syms and Filene’s received interim approval from Judge
Carey to use cash from its lenders’ collateral to finance operations while in
bankruptcy as they prepare to liquidate. Hahn & Hessen was also retained to
represent the Official Committee of Unsecured Creditors. Mark T. Power, Mark S.
Indelicato and Janine M. Cerbone, partners in the firm’s bankruptcy group, headed
up the engagement.
At that time, Judge Carey also granted approval for the going-out-of-business
sales of the remaining 39 Syms and Filene’s stores in 12 states and the District
of Columbia. The GOB sales are being managed by a joint venture between
Gordon Brothers Group and Hilco Merchant Resources. The liquidation of stores was
expected to run through January 2012. n
Renovo Capital Fund Acquires
A.G. Ferrari Foods’ Assets
Renovo Capital, through its Renwood
Opportunities Fund, acquired the assets
of A.G. Ferrari Foods through a 363 sale
in U.S. Bankruptcy Court. The acquisition
was closed in October 2011.
AMR listed $24.7 billion in assets
and $29.6 billion in debts. Among the
company’s largest unsecured creditors
listed was Wilmington Trust, trustee
for holders of $460 million in 6.25%
convertible senior notes due in 2014.
Ambac Reschedules Voting Deadline,
Plan Confirmation Hearing
Ambac Financial Group rescheduled its
voting deadlines and plan confirmation
hearing to give holders of claims more
time to view the terms of any proposed
settlement with the Treasury and IRS,
and vote to accept or reject the Second
Amended Plan of Reorganization of
Ambac Financial, dated September
21, 2011, the plan voting deadline
was extended to January 4, 2012. In
addition, the plan objection deadline was
extended to December 30, 2011 and the
U.S. Bankruptcy Court hearing relating
to the confirmation of the plan was
rescheduled for January 19, 2012.
American Airlines Gets Court Order
Enabling Continued Operations
AMR, the parent company of American
Airlines, and AMR Eagle Holding,
announced that Judge Sean H. Lane
of the U.S. Bankruptcy Court for the
Southern District of New York granted
approval of a series of first-day motions
filed by the company to help facilitate
American’s and American Eagle’s
continued normal operations throughout
the reorganization process. The company
filed for Chapter 11 after it failed to
secure cost-cutting labor agreements.
Federal Judge Voids Harrisburg
Bankruptcy Filing
A Federal bankruptcy judge ruled that
the city council for the City of Harrisburg
did not have the legal right to file for
municipal bankruptcy clearing the way
for a receiver to step in and lead the
city’s fiscal recovery. Judge Mary France
of the U.S. Bankruptcy Court in Harrisburg
ruled that a group of city councilors
failed to follow the state’ procedures for
distressed cities when they sought to
protect the city from creditors through
a Chapter 9 filing. France said she had
to dismiss the council’s filing as illegal
Nordea Bank Agents $100MM DIP in
General Maritime Restructuring
General Maritime reached agreements
with its key senior lenders, including its
bank group, led by Nordea Bank Finland,
New York Branch, as administrative
agent, as well as affiliates of Oaktree
Capital Management, on the terms
of a financial restructuring. General
Maritime filed for Chapter 11 in the U.S.
Bankruptcy Court for the Southern District
of New York, and received a commitment
for up to $100 million in DIP financing
led by Nordea as administrative agent.
Sbarro Completes Reorganization,
Emerges From Chapter 11
Quick service restaurant concept Sbarro’s
Plan of Reorganization became effective
and the company emerged from Chapter
ABF-JF12_BoB.indd 52
2/6/12 11:17 AM
