Categories
Bankruptcy News

Caesars asks judge to ‘suspend’ Delaware bankruptcy filing, hires new AML chief

Summary of the Article

Casino operator Caesars Entertainment has asked an Illinois judge to “suspend” an involuntary bankruptcy petition filed by disgruntled junior creditors …

Article

Posted on Feb 3, 2015 in Online | 0 comments

By Peter Amsel

February 3, 2015

Casino operator Caesars Entertainment has asked an Illinois judge to “suspend” an involuntary bankruptcy petition filed by disgruntled junior creditors. Caesars is attempting to thwart these creditors from disrupting the planned reorganization of its heavily indebted main unit, Caesars Entertainment Operating Co. (CEOC).

The junior creditors filed in Delaware on Jan. 12 and Caesars made its own bankruptcy filing in Chicago three days later. Last week, US Bankruptcy Judge Kevin Gross ruled that Chicago was the appropriate venue to handle the proceedings. However, Gross declined to rule on the official start date of the bankruptcy, which has ramifications for whether junior creditors can challenge certain financial sweeteners Caesars offered senior creditors for signing on to its reorganization plan.

CEOC is struggling under the weight of around $18.4b in debt incurred when Caesars’ hedge fund owners took the company private in 2008. Caesars has proposed reforming CEOC as a real estate investment trust, a plan that has won the approval of a majority of senior creditors. US Bankruptcy Judge A. Benjamin Goldgar in Chicago has set a Feb. 11 hearing to consider Caesars’ request to suspend the Delaware filing.

Caesars also announced it had “potentially” agreed to allow an independent examiner to consider the legality of Caesars’ controversial pre-bankruptcy asset transfers. Junior creditors have accused Caesars of ‘looting’ CEOC of most of its value by transferring profitable assets – including the company’s interactive division – to other Caesars’ spinoffs (and out of creditors’ reach). Last month, a federal judge described these transfers as an “impermissible” violation of the federal Trust Indenture Act of 1939.

In a filing on Monday, Caesars claimed that any examination of its asset transfers would determine that they were fairly done. However, Caesars said the asset transfers would first be thoroughly investigated by the official creditors’ committee. As such, Caesars asked the court to give CEOC and creditors the opportunity to structure the scope of such an examination.

CAESARS HIRE NEW ANTI-MONEY LAUNDERING WATCHDOG

Finally, Casears announced it had hired a new anti-money laundering (AML) compliance chief. In a statement to Reuters, Caesars announced it had hired Benjamin Floyd as its new senior VP for AML compliance. Floyd, who began his new job in January, formerly held a similar position with Wal-Mart.

In October 2013, Caesars announced it was under investigation by US federal agencies over potential money laundering at Caesars Palace in Las Vegas. A source told Reuters that Caesars’ decision to go outside the company for an AML hire suggests an attempt to mitigate potential civil or criminal penalties that may result from the Caesars Palace investigation, which remains ongoing.

The Treasury Department’s Financial Crimes Enforcement Network (FinCEN) has taken a growing interest in the casino industry over the past few years, most recently warning Nevada sportsbooks to monitor transactions for certain ‘red flags.’ FinCEN director Jennifer Shasky Calvery has previously scolded casino operators for not living up to their obligations as “complex financial institutions.”

Original article

Source:: CalvinAyre.com

Culled From

first published: 2015-02-03 03:41:50

Categories
Bankruptcy News

Royalty Partners files for Chapter 11 bankruptcy

Summary of the Article

Royalty Partners LLC filed for Chapter 11 bankruptcy reorganization in the U.S. Bankruptcy Court Southern District of Texas in Victoria. Houston-based …

Article

Royalty Partners LLC filed for Chapter 11 bankruptcy reorganization in the U.S. Bankruptcy Court Southern District of Texas in Victoria. Houston-based Royalty Partners LLC, a company with significant holdings in the Eagle Ford Shale, filed for Chapter 11 bankruptcy protection in Victoria last week.

Full Story

Culled From

first published: 2015-02-03 03:40:02

Categories
Bankruptcy News

Bankruptcy trustee files status report on TelexFree

Summary of the Article

The Chapter 11 Trustee in charge of steering TelexFREE through bankruptcy documented his efforts to work through the embattled company’s “chaotic …

Article

By Scott O’Connell

Daily News Staff


Posted Feb. 3, 2015 at 9:46 PM

Culled From

first published: 2015-02-03 02:48:45

Categories
Bankruptcy News

Copenship Files for Bankruptcy

Summary of the Article

Privately-owned shipping company Copenship has filed for bankruptcy in Copenhagen after losses in the dry bulk market, its Chief Executive Michael …

Article

By MarEx 2015-02-04 14:54:01

Privately-owned shipping company Copenship has filed for bankruptcy in Copenhagen after losses in the dry bulk market, its Chief Executive Michael Fenger told Reuters.

Copenship had been operating over 50 chartered small-sized dry-bulk vessels carrying goods such as grain, iron ore and timber.

“We have done what we could to raise the funds to save the company, but we have reached a point where there is not more to do,” Michael Fenger wrote in a text message to Reuters on Wednesday.

The Baltic Exchange’s main sea freight index, which tracks rates for ships carrying dry bulk commodities, fell to its lowest level in nearly three decades on Tuesday, hurt by weaker rates across all four vessel segments.

On Wednesday the index stood at 569, close to the historic low level of 554 set in July 1986.

“First of all, we have found ourselves in an extremely bad dry cargo market. Secondly, there are several counterparties that have caused us losses, and then thirdly there are different insurance cases that could hit us,” Fenger wrote.

Insolvency administrator Per Astrup Madsen from Copenhagen law firm Lett said the vessels will be handed back to owners.

“Copenship expected to turn around the business in 2014 but the dry bulk freight rates continued the falling trend,” Astrup Madsen said.

One of the world’s leading dry bulk shipping companies, Copenhagen-based D/S Norden, posted a net loss of $326 million for 2012 and 2013 combined, and said in December it expects a full-year 2014 EBITDA loss of between $290 million and $230 million.

Shipping analyst Peter Sand at shipping organisation Bimco said 2015 looks set to be dull on the demand side, whereas the supply side is likely to provide the same amount of new capacity as in 2014. “Such a development will not improve the fundamental market balance,” he wrote in a note.

By Ole Mikkelsen (C) Reuters 2015.

Culled From

first published: 2015-02-03 15:56:15

Categories
Bankruptcy News

Lionel Sawyer law firm files bankruptcy owing $3.37 million

Summary of the Article

LAS VEGAS — The historic Lionel Sawyer & Collins law firm, which went out of business at the beginning of the year, filed for Chapter 7 bankruptcy …

Article

LAS VEGAS — The historic Lionel Sawyer & Collins law firm, which went out of business at the beginning of the year, filed for Chapter 7 bankruptcy liquidation at the end of January, owing creditors more than $3.37 million.

The law firm, once considered the state’s largest legal house, said in a voluntary filing with the U.S. Bankruptcy Court in Las Vegas that it had assets of $931,626 in personal property.

The only secured creditor, according to the filing, was Western Alliance Bank, which is owed $2.86 million.

Lionel Sawyer & Collins was founded 48 years ago by attorney Sam Lionel and former Nevada Gov. Grant Sawyer. It was the first Las Vegas law firm to open an office in Reno and became a statewide powerhouse.

The politically connected firm was at the forefront of many major gaming changes in Nevada and represented a who’s who of the casino industry.

But as gaming exploded across the U.S., starting in the 1990s, Lionel Sawyer began to show cracks. The gaming practice remained too concentrated on Nevada. The firm’s lawyer roster whittled to about 35 after being the biggest in the state with more than 50 in Las Vegas, Reno and Carson City.

During 2014, the firm had lost many of its partners and associates to other law firms and businesses.

On New Year’s Day, nearly 20 of the firm’s attorneys in Las Vegas and Reno joined the Fennemore Craig law firm.

Culled From

first published: 2015-02-03 11:03:45

Categories
Bankruptcy News

Trump Taj Mahal Union Files Charges

Summary of the Article

Unlike earlier Trump casino bankruptcies, the Chapter 11 case that began in September 2014 has been shaped by continuing labor strife, with …

Article



Atlantic City casino workers are keeping the pressure on Trump Entertainment Resorts as the battered gambling companyforges ahead with a bid to survive its bankruptcy intact.

New allegations of unfairness were called to the attention of federal labor regulators by the union that representsmore than 1,100 workers at Trump Taj Mahal, the last casino standing of the former Atlantic City boardwalk casino empireof Donald Trump.

Unite Here Local 54 announced Tuesday it has filed 27 unfair-labor-practice charges over incidents at the Trump TajMahal casino, involving alleged threats and discrimination against workers for union activity.

A spokeswoman and a lawyer for Trump Entertainment didn’t respond Tuesday to inquiries about the labor unfairnessaccusations, which follow a series of demonstrations accusing Trump Entertainment and Carl Icahn, the billionaire poisedto take over company, of unfairness.

Unlike earlier Trump casino bankruptcies, the Chapter 11 case that began in September 2014 has been shaped bycontinuing labor strife, with complaints of unfairness from both sides.

The union, the company and the secured lender almost reached an accord in December, but the deal fell apart.

Mr. Trump, who hasn’t been involved in management of the gambling company for seven years, said Tuesday he wassurprised at the level of discord at the company.

“People that work there are people that I know. They are really good people,” Mr. Trump said. “I am surprised thatthey can’t get it going. It’s to everyone’s benefit to come together. I am very surprised that they can’t make a deal.”

The Taj Mahal is one of a shrinking number of gambling halls on the Atlantic City boardwalk, which has suffered fromcompetition from neighboring states.

The complaints to the National Labor Relations Board come as Trump Entertainment begins the balloting process for aChapter 11 exit plan that would transform Mr. Icahn the lender into Mr. Icahn the owner.

The NLRB charges follow a union-led demonstration in front of Mr. Icahn’s New York offices, and are geared to send Mr.Icahn a message, according to a press release from the union. Unite Here has engaged in a series of demonstrations overthe loss of health-care and pension benefits at the Trump Taj Mahal.

The crucial showdown, however, may not be on streets of Atlantic City or New York. A federal appeals court inPhiladelphia has set a March hearing date for the union’s challenge to a decision that allowed Trump Entertainment tostrip employees of their health care and pension benefits.

The company says it needs to get out from under the union contract to survive. Unite Here, backed by the NationalLabor Relations Board, says the bankruptcy court overstepped the law when it let Trump Entertainment walk away from itsobligations to workers.

“What is reprehensible is that they’re using union dues and doing everything they can to win this appeal. If they win,the only thing they win is that it will go into a Chapter 7 bankruptcy and the employees they claim to protect will allbe out of work,” Mr. Icahn said.

Last year, the union filed an unfair-labor-practice charge with the National Labor Relations Board accusing the Icahnlending group and Trump Entertainment of failure to bargain in good faith. In Chapter 11 plan documents, TrumpEntertainment said that charge was invalidated by the bankruptcy court ruling on benefits.

(Dow Jones Daily Bankruptcy Review covers news about distressed companies and those under bankruptcy protection. Goto )

Write to Peg Brickley at peg.brickley@wsj.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

 (END) Dow Jones Newswires 02-03-151645ET Copyright (c) 2015 Dow Jones & Company, Inc.

This article appears in: News Headlines

Referenced Stocks: TRMYQ

Culled From

first published: 2015-02-02 21:45:00

Categories
Bankruptcy News

Jackson Brewery bar, sued for noise, files for bankruptcy

Summary of the Article

The owners of Jackson Brewery Bistro Bar filed for bankruptcy Sunday (Feb. 1), a day before they were scheduled to appear in court to address claims …

Article

The owners of Jackson Brewery Bistro Bar filed for bankruptcy Sunday (Feb. 1), a day before they were scheduled to appear in court to address claims that loud music from their nightclub is damaging their neighbors’ quality of life.

Marlene Sheely, who owns the business with her son, David Sheely, said they tried to work out an agreement with the residents in the days leading up to the hearing that would allow them to remain open as a restaurant and special events venue. But negotiations broke down, leaving them no choice but to file for Chapter 11 bankruptcy, she said.

“We have to reorganize and find a business plan where we can make enough income to pay our bills and stay viable,” Sheely said. “We can do it if we can have corporate events that are generally no later than 10 p.m. or 11 p.m. But they’re trying to make it so we basically can’t have any music or people past 9 p.m.”

Bill Everitt, a resident of Jackson Brewery, said, “As a unit owner, I believe both parties have been and will continue to work in good faith to reach a settlement agreement.”

The Jackson Brewery Bistro occupies the first two floors on the northern side of the Jackson Brewery building on Decatur Street in the French Quarter. It opened in 2011, operating a restaurant on the first floor and a bar and nightclub on the second floor until 2013, when the New Jax Condominiums Association filed for a preliminary injunction in Civil District Court. The homeowners said that noise from the club was too loud and asked the court to place limits on the bar’s volume of music.

Judge Paulette Irons granted the residents the emergency injunction and, after several contempt of court claims, ordered the club not to exceed 60 decibels. Irons was to consider this week whether to make the injunction permanent, but the case was stayed and moved to federal court after the Sheelys filed for bankruptcy.

Marlene Sheely said they had no choice after being forced to abide by the 60-decibel limit, which is the equivalent of a conversation, background music or the sound of an air-conditioner from 100 feet away, according to charts produced by Purdue University and other sources.

The Sheelys said they ceased operating the nightclub side of their business that occupied nearly 9,000 square feet of their space and canceled all their corporate events through March, cutting into the profit they were set to make during Mardi Gras. They were also hit with an $181,000 legal bill from the homeowner’s association that is due Feb. 15 and are still on the hook for their mortgage payments and $5,909 in monthly condominium fees.

Sheely said if the residents would agree to lift the 60-decibel limit and allow the business to host corporate events, the Jackson Brewery Bistro can succeed in a prime location that has already seen a number of businesses fail, including Planet Hollywood, the Mardi Gras Club and Ripley’s Believe It or Not Museum.

Culled From

first published: 2015-02-02 20:26:15

Categories
Bankruptcy News

Reef Subsea Files for Bankruptcy

Summary of the Article

Subsea services company Reef Subsea has announced bankruptcy, … Posted on February 6, 2015 with tags Bankruptcy, files, reef, Subsea.

Article

Subsea services company Reef Subsea has announced bankruptcy, Norwegian media writes.

Because of this, several hundred employees will lose their jobs.

Stavanger-based Hitecvision is a full owner of Reef Subsea, in which it invested around NOK 400 million (approximately EUR 47 million) by the end of 2013 and another NOK 100 million (EUR 12 million) last year.

Reef Subsea is headquartered in Sotckton-on-Tees, England, with a Norwegian address in Bergen. The company is probably the first major oil service firm that has been knocked over after oil prices collapsed.

Reef Subsea’s Chairman of the Board,  Mel Fitzgerald, said that the tough competition in the market is also one of the main reasons why the company is now going under.

Offshore WIND Staff; Image: Reef Subsea

Culled From

first published: 2015-02-05 23:43:48

Categories
Bankruptcy News

Roadrunner Enterprises files for bankruptcy protection

Summary of the Article

The company, which owns the Roadrunner Campground, has been in the midst of an ongoing battle with the state and Chesterfield over a series of …

Article

Posted: Friday, February 6, 2015 5:45 pm

Roadrunner Enterprises files for bankruptcy protectionBy LOUIS LLOVIORichmond Times-DispatchRichmond.com

Chesterfield County-based Roadrunner Enterprises Inc. filed for Chapter 11 bankruptcy protection on Friday.

The company, which owns the Roadrunner Campground, is in an ongoing battle with the state and Chesterfield over a series of issues at the property.

Subscription Required

An online service is needed to view this article in its entirety. You need an online service to view this article in its entirety.

Have an online subscription?

Login Now

Need an online subscription?

Subscribe

Login

Create a Richmond.com user account

Choose an online service.

The following services are print only and offer no digital access

* Six-month introductory offer for subscribers who are not already part of some discount subscription plan. After six months, each All Access plan will be $19.00 a month regardless of which print delivery is chosen. After three months, the digital only plan will be $21.00 per month.

Need an account? Create one now.

You must login to view the full content on this page.

Create a Richmond.com user account

…………………… ADVERTISEMENT ………………….
kAm%96 DE2E6 2?5 r96DE6C7:6=5 92G6 244FD65 #@25CF??6C @7 @A6C2E:?8 E96 724:=:EJ @? y6776CD@? s2G:D w:89H2J 😕 r96DE6C 😕 G:@=2E:@? @7 K@?:?8 CF=6D 2?5 H:E9@FE 2 962=E9 A6C>:E]k^Am
kAmx? @C56C E@ 4@>A=J[ C6D:56?ED H6C6 E@=5 😕 s646>36C E92E E96J H@F=5 92G6 E@ >@G6 @FE 3J u63] `[ 2=E9@F89 C6D:56?ED 8@E 2 @?6>@?E9 6IE6?D:@? =2DE H66<] %96C6 2C6 @?=J 2 76H A6@A=6 DE:== =:G:?8 😕 E96 42>A8C@F?5]k^Am
kAmx? 255:E:@? E@ E96 42>A8C@F?5[ #@25CF??6C @H?D >@C6 E92? f_ C6?E2= AC@A6CE:6D[ =@ED 2?5 @E96C C62= 6DE2E6 :?E6C6DED[ 244@C5:?8 E@ 2 DE2E6>6?E uC:52J 3J E96 4@>A2?J’D 2EE@C?6J]k^Am
kAm“#@25CF??6C H:== 4@?E:?F6 :ED ?@C>2= @A6C2E:@?D 5FC:?8 E96 C6@C82?:K2E:@?[ H:E9 ?@ 5:DCFAE:@? 😕 D6CG:46[ 2?5 A=2?D E@ 9@?@C 2== :ED E6?2?E =62D6D 2?5 C6?EE@@H? 2CC2?86>6?ED[” r2C= p56?2F6C[ #@25CF??6C’D AC6D:56?E D2:5 😕 E96 DE2E6>6?E]k^Am
kAm“#@25CF??6C H:== 4@?E:?F6 E@ >2<6 492?86D 2?5 :>AC@G6>6?ED E@ :ED 42>A8C@F?5 AC@A6CEJ 2?5 @3E2:? 2== C6BF:C65 A6C>:ED D@ E92E :E 42? @A6C2E6 E96 724:=:EJ]”k^Am
kAmr92AE6C “ 32?<CFAE4J 2==@HD 2 4@>A2?J E@ C6DECF4EFC6 :ED 7:?2?46D 2?5 4@?E:?F6 @A6C2E:?8]k^Am
kAm%96 4@FCE 7:=:?8 D2:5 E96 7:C> 92D 36EH66? S`_ >:==:@? 2?5 Sd_ >:==:@? 😕 2DD6ED 2?5 S`_ >:==:@? 2?5 Sd_ >:==:@? 😕 =:23:=:E:6D]k^Am
kAm%96 32?<CFAE4J “H:== AC@G:56 2 7C2>6H@C< 7@C #@25CF??6C E@ C6DECF4EFC6 :ED 32?< 563E H:E9 E96 DFAA@CE @7 :ED =6?56CD[ 😕 =:?6 H:E9 @A6C2E:?8 :?4@>6 2?5 42A:E2= ?665D[ A2CE:4F=2C=J 😕 4@??64E:@? H:E9 42A:E2= :>AC@G6>6?ED 36:?8 >256 2E E96 42>A8C@F?5[” p56?2F6C D2:5 😕 E96 DE2E6>6?E]k^Am
kAmk2 9C67lQ>2:=E@i{{{@G:@oE:>6D5:DA2E49]4@>Qm{{{@G:@oE:>6D5:DA2E49]4@>k^2mk^Am

(804) 649-6348

Twitter: @LouisLLovio

Thank you for reading 20 free articles on our site. You can come back at the end of your 30-day period for another 20 free articles, or you can purchase a subscription and continue to enjoy valuable local news and information. If you need help, please contact our office at 804-649-6000. You need an online service to view this article in its entirety.

Have an online subscription?

Login Now

Need an online subscription?

Subscribe

Login

Create a Richmond.com user account

Choose an online service.

The following services are print only and offer no digital access

* Six-month introductory offer for subscribers who are not already part of some discount subscription plan. After six months, each All Access plan will be $19.00 a month regardless of which print delivery is chosen. After three months, the digital only plan will be $21.00 per month.

Need an account? Create one now.

Posted in Chesterfield on Friday, February 6, 2015 5:45 pm.

Culled From

first published: 2015-02-05 23:03:45

Categories
Bankruptcy News

RadioShack Files for Chapter 11 Bankruptcy, Sprint Buys Stores

Summary of the Article

RadioShack made official what many had considered inevitable last night and filed for bankruptcy protection. And, as reported earlier this week, Sprint, …

Article

RadioShack made official what many had considered inevitable last night and filed for bankruptcy protection. And, as reported earlier this week, Sprint, with the hedge fund Standard General, stepped in to to take over between 1.5K and 2.4K of the beleagured company’s US stores. The electronics retailer’s 94-year-old name will, in a sense, live on as Sprint announced it would run up to 1.75K “store-within-a-store” locations of the brand.

Sprint and Standard General are stalking horse bidders and will face other suitors in a court-supervised bankruptcy auction. Buffeted by new technology and increased retail competition, RadioShack had not turned a profit since 2011 despite the 2013 hiring of CEO Joe Magnacca, who had led a successful turnaround at convenience chain Duane Reade before Walgreens acquired it.

Tags: Bankruptcy

Culled From

first published: 2015-02-05 22:57:34