Wall Street Journal | Creditor Aurelius Capital Management has amped up its opposition to the Tribune Co.’s Chapter 11 plan, demanding a full accounting of the media holdings of JP Morgan’s media holdings.
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Blockbuster hits creditors up for another $250M
Blockbuster Inc. is asking creditors to put up more money to help it exit bankruptcy protection, prompting a debate among bondholders about whether to invest further in the struggling video chain or put it up for sale, people familiar with the matter said.
When Blockbuster filed for Chapter 11 protection in September, the company had agreed to turn ownership over to its creditors. But after poor holiday sales and new estimates for a costlier turnaround, the company is asking bondholders for an additional $200 million to $250 million to be used after the chain exits court protection. Get the full story »
Akerson: GM a year behind on product development
A big cut in product development spending while General Motors was in bankruptcy protection set the company’s product development plans back by about a year, its top executive told reporters Tuesday.
Chairman and CEO Daniel Akerson said the company is working to accelerate vehicle plans that were postponed when research and development spending was cut to $5 billion per year as the company was trying to save money during its 2009 stay in bankruptcy protection. The spending has since been restored to $7 billion.
Chicago area home to 3 of 20 biggest bankruptcies
In this photo from 2002, a Blockbuster sits across from the Corus Bank building at the intersection of Irving Park, Damen and Lincoln Ave. in Chicago's North Center neighborhood. (Handout)
The Chicago area was home to three of the nation’s 20 biggest bankruptcies in 2010, a roundup by BankruptcyData.com shows.
Measured by assets owned before filing for bankruptcy, Chicago-based Corus Bankshares Inc., owner of failed Corus Bank, ranked second, with $8.35 billion in pre-petition assets.
Ranked sixth was Rockford-based Amcore Financial Inc., with $3.8 billion in pre-petition assets. Get the full story »
U.S. consumer bankruptcies hit 5-year high
The number of U.S. consumers who filed for bankruptcy protection in 2010 was the highest in five years, and the figure could rise as Americans struggle with excess debt in an uncertain economy, a new report said.
Roughly 1.53 million consumer bankruptcy petitions were filed in 2010, up 9 percent from 1.41 million in 2009, according to the American Bankruptcy Institute, citing data from the National Bankruptcy Research Center. Get the full story »
Fans of Bill Ackman boost Howard Hughes shares
Since U.S. mall owner General Growth exited bankruptcy last month, its stock has gotten a nice lift. But shares of its less noticed spin-off, Howard Hughes Corp, have really soared.
Since General Growth issued about $2 billion worth of shares at $14.75 in mid-November, the mall owner’s stock price has grown more than 6 percent — trading around $15.70 on Thursday afternoon. Meanwhile, Howard Hughes’ thinly traded shares have gained nearly a third, or 32.8 percent, in roughly the same period, now trading around $54.45. Get the full story »
Dec. 28, 2010 at 10:14 a.m.
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Filed under: Bankruptcy, Chicago executives, Media, Newspapers, Personnel moves Gerry Spector exiting as COO of Tribune Co.
Tribune Co. Chief Operating Officer Gerry Spector, a long-time associate of real estate billionaire Sam Zell, is leaving the Chicago-based media company he has helped lead since Zell took it private three years ago.
Creditor sues Icahn over Blockbuster bankruptcy
Disgruntled Blockbuster Inc. creditor Lyme Regis Partners LLC has sued Carl Icahn, alleging that the billionaire investor set the video-rental chain up to fail so he could take it over.
In the lawsuit filed last week in the U.S. Bankruptcy Court in Manhattan, junior bondholder Lyme Regis said Icahn took advantage of his “insider” status, including his approval of a 2009 bond issuance while he served as a Blockbuster board member, to put himself in a position to own the company upon its emergence from Chapter 11. Get the full story »
Blockbuster plans to shed 182 more stores
Bankrupt video rental chain Blockbuster Inc. plans to close 182 stores by the end of the first quarter as it tries to find a way back on its feet.
The largest U.S. video rental chain plans to close 72 stores by Jan. 1 and 110 more in the first quarter of 2011, according to documents filed Friday in Manhattan’s bankruptcy court. Get the full story »
Builders Bank parent files for Chapter 11
Crain’s Chicago Business | The parent of Builders Bank has filed for Chapter 11 bankruptcy protection to deal with a debt load it says it cannot handle.
Note: An earlier headline incorrectly stated that Builders Bank had filed Chapter 11. It has not; nor has CEO Mitchell Saywitz. Its parent, Builders Financial Corp., filed the petition.
1 Tribune Co. reorganization plan withdrawn
A group of lenders to bankrupt Tribune Co. withdrew its reorganization plan for the media company, leaving creditors with three other options when they begin voting on how to end the 2-year-old Chapter 11 case.
Pursuing the plan “was not the best focus of our resources,” said Evan Flaschen, an attorney representing the group, made up of 14 hedge funds, including GreyWolf Capital Management and billionaire George Soros’ Soros Fund Management. Get the full story »
Tribune creditors to vote on 4 reorganization plans
The judge in Tribune Co.’s contentious bankruptcy case signaled his approval Monday to send four competing restructuring plans out for vote by the Chicago-based media company’s creditors.
If he issues the formal order by Wednesday, which will mark the two-year anniversary of the case, solicitation packages containing disclosure documents explaining the four plans will likely be mailed on Dec. 22, said a Tribune Co. lawyer.
Creditors will then have until Jan. 28 to cast their votes and the judge will use those results to gauge support for the various plans ahead of a five-day confirmation hearing set for early March. Get the full story »
Creditors file $1.6M claim against Tribune CFO
By Michael Oneal and Becky Yerak | The unsecured creditors’ committee in Tribune Co.’s bankruptcy case has filed the first of what’s expected to be about 210 individual claims against current and former officers and directors of the Chicago-based media company seeking to claw back close to $180 million in so-called “preference payments” they collected.
The first claim, filed in U.S. Bankruptcy Court in Wilmington, DE., targeted Chandler Bigelow, Tribune Co.’s chief financial officer. It seeks recovery of more than $1.6 million in compensation he was paid in December 2007 when he was the company’s treasurer, including a $400,000 bonus and $880,645 in restricted stock. Get the full story »
MGM studio bankruptcy plan gets OK
Metro-Goldwyn-Mayer Studios Inc. entered the final act of its reorganization when it won court approval, clearing the way for the storied Hollywood studio to emerge from bankruptcy with new owners.
U.S. Bankruptcy Judge Stuart Bernstein approved the restructuring plan at a hearing Thursday in Manhattan. Jay Goffman, a lawyer for MGM, said the company expects to emerge from bankruptcy in a few weeks. Get the full story »
U.S. Treasury plans to reduce GM stake to 37%
The U.S. Treasury will raise gross proceeds of at least $11.8 billion in the General Motors Co. initial public offering, reducing its ownership stake in the bailed-out automaker to just under 37 percent. Get the full story »
