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massdee
Moderator
5299 Posts |
Posted - 10/12/2010 : 10:25:30 PM
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| I had company and missed the entire meeting. Can anyone update me? |
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tetris
Moderator
2040 Posts |
Posted - 10/21/2010 : 11:12:52 PM
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REGULAR MEETING OF THE BOARD OF ALDERMEN, MONDAY, OCTOBER 25, 2010, 7:00 PM, PETER J. MCCARREN MEMORIAL CHAMBERS, EVERETT, MA
COMMUNICATIONS FROM HIS HONOR THE MAYOR
1. A0232-10 Order/s/Alderman Robert J. Van Campen, as President
To accept donation of $100.00 from Everett Carpet Cleaning to the Department of Veteran's Services Gift Account.
2. A0233-10 Order/s/Alderman Robert J. Van Campen, as President
To accept the donation of $300.00 to the City of Everett's Department of Veteran's Services in honor of Mr. Sarnie, Mr. Iwanicki and Mr. Hughes, from Stephen (Stat) Smith.
3. A0234-10 Order/s/Alderman Robert J. Van Campen, as President
To accept the donations totaling $225.00 to the City of Everett's Department of Veteran's Services in memory of Thomas Ronan from the following: $100.00 from Mr. & Mrs. Muti, $50.00 from Mr. & Mrs John Lawler and Kathleen Carbone, $50.00 from Mr. & Mrs. Harry Woodland, and $25.00 from Cynthia Knowles and Matthew Zappala.
4. A0236-10 Order/s/Alderman Robert J. Van Campen, as President
To accept a donation of $20.00 to the City of Everett's Department of Veteran's Services from Leona McDonald and Maureen Lovett in memory of Thomas Ronan.
5. A0237-10 Order/s/Alderman Robert J. Van Campen, as President
To transfer $104,851.23 from free cash to Police Salaries Account to pay the 2009 salary of Lt. Landry, in accordance with M.G.L., Chapter 33, Section 59, which the City of Everett adopted in June 1947.
6. A0238-10 Order/s/Alderman Robert J. Van Campen, as President
Subject to confirmation by the Honorable Board of Aldermen, I hereby appoint Rita Hashem to the Conservation Commission to fill a term that expires in April 2011.
PAPERS FROM THE COMMON COUNCIL
7. C0152-10 Order/s/Councilor Rosa DiFlorio, as President
To accept the donation of $25.00 from Mary McMaster and $10.00 from Eileen Smith to the Department of Veteran Services Gift Account. (Passed sent up for concurrence)
8. C0153-10 Order/s/Councilor Rosa DiFlorio, as President
To accept the donation of $20.00 from Mr. & Mrs. John Toth to the Veteran's Services Department in memory of Thomas Ronan. (Passed sent up for concurrence)
COMMUNICATIONS
9. A0216-10
On Order offered by Alderman Joseph W. McGonagle-To have a square dedication in honor of William "Bill" Newman, a WWII Veteran; with a message from the Director of Veteran Services that "a pole will be placed in honor of Bill Newman, approved".
COMMITTEE REPORTS
10. A0197-10 /s/Committee on License Report on
Petition for 2nd Class Motor Dealer License from Boston Auto Wholesale, Inc. at 3 Bow Street.
UNFINISHED BUSINESS
11. A0225-10 Resolution/s/Alderman Sal Sachetta
That a representative from the (Gas Division) National Grid Company appear before the Board of Aldermen to explain the setting up appointments to have meters replaced, due to many complaints from constituents that appointments are made two and three months in advance and than are not kept, or in some cases that appointments are made in advance with no notice in advance.
NEW BUSINESS
12. A0235-10 Ordinance/s/Alderman Joseph W. McGonagle
In accordance with the provisions of the Massachusetts General Laws, Chapter 90, Section 18, We, the Everett City Council, hereby petition the Great and General Court for special speed regulations by changing the speed limit on all side streets in the City of Everett from 30 mph to 20 mph, in the interest of public safety.
Adjournment
Respectfully submitted:
Caroline McCorry
Administrative Assistant / Office Manager
Everett City Council Office
council@ci.everett.ma.us
Reminders:
10/25 6:30 p.m. Committee on Licenses Meeting
11/1 7:00 p.m. Common Council Meeting
11/8 7:00 p.m. Next Board of Aldermen Meeting
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massdee
Moderator
5299 Posts |
Posted - 10/22/2010 : 11:47:04 AM
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| Looks like it's probably going to be another quick meeting. |
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Tails
Administrator
2682 Posts |
Posted - 10/25/2010 : 2:06:32 PM
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| I'm confused about paying someone a salary for enlisting in the military. I know someone that enlisted in the military and upon their return, they did still have their job, but was not paid salary from their employer. if every employer did that, they would go broke. They did receive pay increase, and accrued vacation time, and that was the private sector. This is taxpayer dollars so ultimately, the Lieutenant gets paid twice from the taxpayers? Something does not seem right AND from free cash?? What free cash?? We have a laughable 800K. BIG DEAL. We cant even use it to offset the tax-rate this year. |
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littlewilly
Member
5 Posts |
 Posted - 10/25/2010 : 4:38:38 PM
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| they are all on take tails get money out of free cash throw me 10 grand for time nice donation for cause who cares taxpayer money all buddy of carlos and chief colleen no good either heard carlo had time last week anthonys malden 250 a plate made 80 grand love to see finance report |
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just wondering
Senior Member
387 Posts |
Posted - 10/25/2010 : 6:27:41 PM
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quote:
Originally posted by Tails
I'm confused about paying someone a salary for enlisting in the military. I know someone that enlisted in the military and upon their return, they did still have their job, but was not paid salary from their employer. if every employer did that, they would go broke. They did receive pay increase, and accrued vacation time, and that was the private sector. This is taxpayer dollars so ultimately, the Lieutenant gets paid twice from the taxpayers? Something does not seem right AND from free cash?? What free cash?? We have a laughable 800K. BIG DEAL. We cant even use it to offset the tax-rate this year.
Wasn't there an agenda item earlier this year that used a portion of last years free cash to offset this years tax rate? |
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massdee
Moderator
5299 Posts |
Posted - 10/25/2010 : 8:11:07 PM
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| I understand it is the law and they have to pay Lt. Landry. Since there are no other employees in that same situation, the City Council should repeal that law ASAP. |
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tetris
Moderator
2040 Posts |
Posted - 10/25/2010 : 8:35:43 PM
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No. There haven't been any transfers to reduce the tax rate since FY2009. What there have been are transfers to reduce the tax levy so that it doesn't exceed the levy limit. Sorry, with the city so close to the tax levy limit, especially this year, that's a big difference. Doesn't seem to be much chance that these types of transfers will happen in the upcoming year though with the limited possibilities for additional funding.
There's always the stabilization fund. But will the City Council let that get raided two years in a row? The only new source of funding on the horizon that could help is the sale of the old High School. If the city takes the high bid reported in last week's Advocate (Pioneer Charter School and partner, $2M) that money could be used in that fashion. But wasn't the previous thought for that money to pay for the residential water meter replacement project? Of course, that project could be bonded. Seems like the administration may have to finally face up to some tough choices this year.
As far as tonight's agenda goes., I have to agree with RVC. I have no problem making someone “whole” who goes off to serve our country, i.e., make up the difference between what they were paid by the government and what they would have made in the city. This seems excessive though. The city needs to vote to “unaccept” the law. |
Edited by - tetris on 10/25/2010 9:01:01 PM |
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Tails
Administrator
2682 Posts |
Posted - 10/25/2010 : 8:44:56 PM
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I honestly do not know about an agenda item to use free cash to offset the tax rate. Maybe if the agendas were left online like they always have been, it would be easier to find.
Lit. Willy, I heard about the time and heard it was about $70,000.00. That should not discourage any viable candidate that would like to run for mayor. All those right-wingers that attend those are not from Everett and are not the ones that get out there and vote. There's a lot of favors involved from one company to the next. You cant deny facts, and the facts are more and more Everett people are dissatisfied in his role as mayor. I hope he is mayor when we go into receivership because it will all fall on his lap and he will be known as the worse fiscally responsible mayor in Everett's history. |
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massdee
Moderator
5299 Posts |
Posted - 10/25/2010 : 9:03:26 PM
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I also heard about the mayor's fundraiser last week at Anthony's. I also heard he raised about $70K and that many in attendance were not from Everett. If they are not from Everett, then they don't vote in Everett.
I feel next time around it is not going to make a difference how much money is in anyone's war chest. I think the next mayor will be elected on the issues, no mater who is elected. People are angry with the way our politicians have been governing at all levels of government.
Let's see what happens next Nov. 2nd, that could be a real eye opener. |
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massdee
Moderator
5299 Posts |
Posted - 11/08/2010 : 08:58:07 AM
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| Anyone have the agenda for the BOA meeting? |
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tetris
Moderator
2040 Posts |
Posted - 11/08/2010 : 09:32:21 AM
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REGULAR MEETING OF THE BOARD OF ALDERMEN, MONDAY, NOVEMBER 8, 2010, 7:00 PM, PETER J. MCCARREN MEMORIAL CHAMBERS, EVERETT, MA 02149
PUBLIC HEARINGS
1. A0240-10
To all parties interested in the Petition for NextG Networks of NY, Inc. D/B/A NextG Networks East for permission to install, locate, operate, maintain, manage, and attach conduit, fiber optic cables, and telecommunications network equipment ("Equipment") to and on existing utility poles and/or streetlights in, across, and over the public streets, lanes, highways, and places of the City of Everett described in the plans, map, and exhibits on file in the City Clerk's Office, Everett, MA.
COMMUNICATIONS FROM HIS HONOR THE MAYOR
2. A0244-10 Order/s/Alderman Robert J. Van Campen, as President
Subject to confirmation by the Honorable Board of Aldermen, and in conformity with the Revised Ordinances of the City of Everett, Chapter 2, Section 2-31, I hereby appoint Jon Norton to the Conservation Commission, to fill a term that expires in April 2013.
3. A0245-10 Order/s/Alderman Robert J. Van Campen, as President
Subject to confirmation by the Honorable Board of Aldermen, and in conformity with the Revised Ordinances of the City of Everett, Chapter 2, Section 2-31, I hereby appoint Christine Pelosi to the Conservation Commission to fill a term that expires April 2013.
4. A0246-10 Order/s/Alderman Robert J. Van Campen, as President
Subject to confirmation by the Honorable Board of Aldermen, and in conformity with the Revised Ordinances of the City of Everett, Chapter 2, Section 31, I hereby apppoint Philipe Martinez to the Conservation Commission to fill a term that expires in April 2013.
5. A0247-10 Order/s/Alderman Robert J. Van Campen, as President
Subject to confirmation by the Honorable Board of Aldermen, and in conformity with the Revised Ordinances of the City of Everett, Chapter 2, Section 2-31, I hereby appoint Eamon Kernan to the Conservation Commission to fill a term that expires in April 2013.
6. A0248-10 Order/s/Alderman Robert J. Van Campen, as President
Subject to confirmation by the Honorable Board of Aldermen, and in conformity with the Revised Ordinances of the City of Everett, Appendix A, Zoning, Section 11, I hereby appoint Mike Dantone to the Zoning Board of Appeals, to fill a term that expires in September 2012.
PETITIONS AND LICENSES
7. A0239-10
Petition for Permanent Awning for Lucini's Pizzeria at 882 Broadway, Everett.
8. A0243-10
Petition for permanent awning at 572 Broadway for Akils Jewelers.
COMMITTEE REPORTS
9. A0197-10 Committee on License Report on
Petition for 2nd Class Motor Dealer License from Boston Auto Wholesale, Inc. at 3 Bow Street/20 Broadway.
10. A0222-10 Committee on Rules & Ordinances Report
On Resolution offered by Alderman Robert Van Campen, as President-That the City Council, along with the Mayor, revisit the trash ordinances in order to make certain that the ordinances are most beneficial to the city and its residents; with a recommendation to grant further time.
11. A0099-10 Committee on Rules & Ordinances Report
On Order offered by Alderman Robert J. Van Campen, Councilor Daniel J. Napolitano and Councilor William L. Cardello - In the interest of efficiency and accountability, that the City of Everett establish a Water and Sewer Enterprise Fund in accordance with G.L. c. 44.53F 1/2; with a recommendation to for favorable action.
NEW BUSINESS
12. A0242-10 Resolution/s/Aldermen Robert J. Van Campen and Michael K. Marchese
That the City of Everett consider the feasibility of establishing an enterprise fund as set forth in General Laws, Chapter 44, Section 53F 1/2 for the operation of the Everett Veterans Memorial Stadium.
13. A0249-10 Resolution/s/Madam Alderman Millie J. Cardello
To send a letter to Mr. Michael Karas, The District 4 Traffic Engineer of the Department of Conservation and Recreation requesting a study and solution to the ongoing problems on Route 16, specifically the Eastbound side, the area from Town Fair Tire to Second Street; more specifically, the possibility of signage at the Garvey Street traffic light. Cars are Turning right on red onto Second Street, ignoring the fact that the are crossing over Garvey Street, which is a 2-way street; the problem with vehicles "creating" a fourth lane on the far right lane; and checking the timing on the lights that control the traffic going North to South and South to North across the Parkway on Second Street as well as the timing on the East and West bound Traffic lights along the Stretch of RT 16 that is in Everett. It should be noted that there is always a problem with
vehicles blocking the intersections of Lewis Street and the Revere Beach Parkway; Second Street and the Revere Beach Parkway; the problem with the left Turn lane for Spring Street contributes to this problem; and the blocking of the intersection at South Ferry Street.
14. A0250-10
Board of Aldermen Worksheet Monday, November 8, 2010
1.Sponsor: Madam Alderman Millie J. Cardello-That the No Parking Zones on Ferry Street and on the sidewalks on Ferry Street is enforced on a regular basis. Send to Everett Traffic Department and Parking Clerk’s Office.
Referred to: Everett Traffic Department and Parking Clerk’s Office.
15. A0241-10 Resolution/s/Alderman Robert J. Van Campen
That the Mayor, Chairman of the Board of Assessors and City Auditor appear at this meeting of the Board of Aldermen prepared to discuss the reduction of any tax payments made under an agreement previously entered into between the City of Everett and Boston Generating, LLC and/or its successors in interest, and outline what steps the City of Everett will take to offset this reduction.
Adjournment
Respectfully submitted: C. McCorry, Adm. Assist. / Ofc. Mgr. Everett City Council Office
council@ci.everett.ma.us
Reminder: 11/15 Common Council Meeting, 7 p.m.,
11/16 Committee on Bills & Accounts Meeting, 6 p.m.
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massdee
Moderator
5299 Posts |
Posted - 11/09/2010 : 11:34:43 AM
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Item #15.
$2.9 million is a lot money for the residential and business taxpayers to make up. I hope the Administration looks at their budget first and try to makes some cuts before passing this onto the taxpayers. They knew this was coming and probably should have tried to compensate for this. Maybe hiring and salaries could be frozen. What about the extra money that was appropriated to the stadium? I am really hoping there are some proactive things the Administration can do. |
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Tails
Administrator
2682 Posts |
Posted - 11/09/2010 : 12:39:29 PM
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I agree with you 100% but I am not sure what’s going to happen with the bankruptcy court, since Boston Generating, LLC filed chapter 11 in April.
Boston Generating, Lehman, TerreStar: Bankruptcy
By Bill Rochelle - Nov 3, 2010
The bankruptcy court has the right to preside over the sale of Boston Generating LLC, the owner of five electric generating plants in the Boston area, U.S. District Judge Denise Cote in Manhattan ruled.
The bankruptcy judge, on the other hand, isn’t allowed to decide whether Boston Generating can reject a contract to supply transportation for natural gas to be used as fuel at a plant, Cote said in her Nov. 1 opinion.
Cote will rule on whether the transportation agreement can be rejected. Algonquin Gas Transmission LLC, a subsidiary of Spectra Energy Corp., successfully brought the motion to withdraw the reference on the rejection issue. Withdrawal of the reference is the technical term used to describe when a particular dispute is required by bankruptcy law to be decided in district court rather than in bankruptcy court.
If there isn’t a higher bid at auction, Constellation Energy Group Inc. will buy the facilities for $1.1 billion. Competing bids were initially due Nov. 1. Final bids have a Nov. 13 deadline in advance of the Nov. 15 auction. The hearing for approval of the sale will take place Nov. 17.
Cote withdrew the reference of the motion to reject the contract because the Federal Energy Regulatory Commission has exclusive jurisdiction over rates charged by gas pipelines. Cote noted that courts in the reorganizations of Mirant Corp. and Calpine Corp. previously ruled that withdrawing the reference is mandatory with regard to rejection of gas transportation agreements.
Cote went on to mention that the Mirant and Calpine courts reached different conclusions on the ultimate question of whether the contract can be rejected under the Bankruptcy Code.
Observing that FERC has an independent right to approve the sale, Cote said there is no need to withdraw the motion for approval of the deal.
The bankruptcy case is In re Boston Generating LLC, 10- 14419, U.S. Bankruptcy Court, Southern District of New York (Manhattan).
Updates
Lehman Seeks to Convert More Archstone Debt to Equity
Although Lehman Brothers Holdings Inc. was authorized by the bankruptcy judge in May to restructure debt of a real estate investment trust named Archstone-Smith, the transaction is yet to be completed. In a motion filed yesterday, Lehman is asking the judge to allow the conversion of an additional $65 million of debt it holds into equity.
Lehman participated in the group that acquired Archstone in a $20 billion transaction in 2007. In general terms, Lehman along with affiliates of Barclays Capital Real Estate Inc. and Bank of America NA were authorized in May to convert $5.2 billion of existing debt into new classes of preferred equity.
The other investors will convert an additional $172 million into equity. Lehman says that the overall restructuring should be completed soon after the bankruptcy court authorizes the additional debt-to-equity swap.
For details on the original restructuring, click here for the May 10 Bloomberg bankruptcy report.
Originally, Lehman and the other owners invested $4.8 billion to acquire the stock of Archstone, which at the time was the second-largest publicly traded multi-family real estate investment trust in the U.S. Lehman provided $2.4 billion of the capital to acquire 47 percent of the common equity. Lehman by this year also held $2.5 billion of various loans used for the acquisition.
The Lehman holding company filed under Chapter 11 in New York on Sept. 15, 2008, and sold office buildings and the North American investment-banking business to London-based Barclays Plc one week later. The Lehman brokerage operations went into liquidation on Sept. 19, 2008, in the same court. The brokerage is in the control of a trustee appointed under the Securities Investor Protection Act.
The Lehman holding company and its non-brokerage subsidiaries filed a revised Chapter 11 plan and disclosure statement in April. For details, click here and here for the April 15 and 16 Bloomberg bankruptcy reports. Lehman said it intends to amend the plan in the last quarter of the year and have the plan approved in a confirmation order by March.
The Lehman holding company Chapter 11 case is In re Lehman Brothers Holdings Inc., 08-13555, while the liquidation proceeding under the Securities Investor Protection Act for the brokerage operation is Securities Investor Protection Corp. v. Lehman Brothers Inc., 08-01420, both in U.S. Bankruptcy Court, Southern District New York (Manhattan).
Preferreds Seek Dismissal of Some TerreStar Cases
Preferred shareholders of TerreStar Corp. filed a motion on Nov. 1 asking the bankruptcy judge in New York to dismiss the Chapter 11 cases filed Oct. 19 by seven affiliates of unit TerreStar Networks Inc., a provider of mobile and Internet communications services.
The holders of Series B convertible preferred stock of the parent oppose the restructuring backed by EchoStar Corp., the largest secured creditor. The preferred holders contend that the Chapter 11 case is an attempted “looting by EchoStar” of “assets to which it has no legal claim.”
The preferred shareholders want the bankruptcy judge to hold a hearing on Nov. 16. The holders of the preferred stock are funds affiliated with Solus Alternative Asset Management LP and Millennium International Management LP.
They argue that the seven subsidiaries don’t need reorganization and won’t be receiving any proceeds from the loan for the Chapter 11 case. They contend that the value of the subsidiaries should flow upstream to the parent for the benefit of shareholders.
TerreStar, based in Reston, Virginia, provides mobile satellite coverage throughout the U.S. and Canada where traditional mobile networks are unavailable. EchoStar, a television-equipment and satellite-services company, is providing financing for the Chapter 11 case.
EchoStar and New York hedge fund Harbinger Capital Partners are TerreStar Corp.’s largest shareholders, according to Bloomberg data. EchoStar, based in Englewood, Colorado, has agreed to support a restructuring plan in which it would swap TerreStar secured debt for equity. EchoStar would also backstop $100 million of a $125 million rights offering.
TerreStar Networks listed assets $1.4 billion and debt totaling $1.64 billion.
The case is In re TerreStar Networks Inc., 10-15446, U.S. Bankruptcy Court, Southern District of New York (Manhattan).
Luby’s Wants Out of Nine Fuddruckers Franchise Deals
Restaurant operator Luby’s Inc. accused Magic Brands LLC of misrepresenting the terms of nine franchise agreements before it was authorized in June to buy the Fuddruckers stores and franchise business for $63.5 million.
Magic Brands, which changed its name to Deel LLC after the sale, separately is seeking a two-month extension of the exclusive right to propose a Chapter 11 plan. If granted by the bankruptcy court at a Nov. 16 hearing, the new deadline would be Jan. 18.
Magic Brands said that any extension of exclusivity beyond Jan. 18 won’t apply to the official creditors’ committee.
Luby’s said the data room didn’t show how nine franchise agreements had been modified less than a year before bankruptcy to be “far more onerous” to the franchisor. The franchise fee was reduced to 3 percent from 5 percent, personal guarantees were terminated, and the franchisor’s option to buy the assets was deleted. There is a long list of other undisclosed changes in Luby’s court papers.
Luby’s said it doesn’t know whether the allegedly faulty disclosure was “by accident or artifice.”
Luby’s wants the bankruptcy court to modify the sale- approval order to eliminate the requirement to purchase the nine franchise agreements with Daltex Restaurant Management Inc.
The creditors’ committee’s lawyers previously said the sale to Luby’s should generate “substantial recoveries for unsecured creditors.” Magic Brands previously said the sale “could” result in full payment for unsecured creditors.
After closing stores, Austin, Texas-based Magic Brands had 62 company-owned Fuddruckers locations operating in 11 states. It also owned the Koo Koo Roo restaurant brand, with three stores in California. The petition said assets are less than $10 million while debt is less than $50 million.
The Koo Koo Roo stores are in bankruptcy a second time. Owned by Prandium Inc., they were sold to Magic Brands through Chapter 11 in 2004. The 135 Fuddruckers stores in 32 states owned by franchisees aren’t in the bankruptcy case.
The case is In re Deel LLC, 10-11310, U.S. Bankruptcy Court, District of Delaware (Wilmington).
Broadstripe Loss Exceeds Depreciation, Amortization
Broadstripe LLC, a St. Louis-based broadband cable operator, reported a $2.63 million net loss in September on revenue of $7.68 million. Depreciation and amortization for the month totaled $2.2 million.
Broadstripe was authorized in October to adopt a bonus program for 12 executives that may cost as much as $446,000. To qualify, the cable system for which the employee works must be sold. A worker who takes or is offered a job with the buyer won’t receive a bonus. In applying for approval of the bonuses, Broadstripe said it has been “testing the market for sale of their cable systems.”
The chief executive officer can qualify for a $1.5 million bonus if the total sale price exceeds $170 million. If the sales bring less than $150 million, there is no bonus. The minimum bonus is $375,000 for sales that generate between $150 million and $160 million.
Any creditor is at liberty to file a plan because Broadstripe has been in Chapter 11 more than 18 months. The company has been saying it can’t carry out a plan given an unresolved lawsuit where the unsecured creditors’ committee contends that secured lenders’ claims should be subordinated or recharacterized as equity. In addition, there are two claims by rival cable operators totaling almost $160 million based on Broadstripe’s alleged failures to complete asset purchase agreements.
Broadstripe filed a reorganization plan in January 2009 centered on an agreement reached before the Chapter 11 filing with holders of the first- and second-lien debt. At the outset of Chapter 11, Broadstripe had 93,000 customers in Maryland, Michigan, Washington State and Oregon. It was created through four acquisitions in 1998 and 1999 and filed for Chapter 11 reorganization in January 2009.
The case is In re Broadstripe LLC, 09-10006, U.S. Bankruptcy Court, District of Delaware (Wilmington).
Barzel to Sell Property with Truncated Auction
Barzel Industries Inc., a steel processor and manufacturer before selling almost all of the assets in November 2009, intends to sell a building and land in Hartford, Connecticut, for $475,000.
Barzel is proposing a streamlined auction procedure. Instead of first holding a hearing to approve auction procedures, Barzel will entertain higher offers at a hearing on Nov. 30 to approve the sale. Barzel said it had been marketing the property for 18 months.
The 33,150-square-foot building is situated on a 1.43-acre plot.
Barzel sold most of the assets last November for $75 million to Norwood, Massachusetts-based Chriscott USA Inc. Secured lenders agreed to a settlement later where they received a release of claims in return for giving up $800,000. Even after the settlement, Barzel said it doesn’t know whether “a liquidating plan is appropriate and feasible.”
Barzel had 15 facilities. The petition listed assets of $366 million against debt totaling $385 million, including $315 million on senior secured notes. Another $18.4 million was owing on an asset-backed loan with a first lien on accounts receivable.
The case is In Barzel Industries Inc., 09-13204, U.S. Bankruptcy Court, District of Delaware (Wilmington).
Watch List
Loehmann’s May File Chapter 11 Again Next Week
Retailer Loehmann’s Inc., unable to complete an exchange offer in October, may file under Chapter 11 as soon as next week, said two people familiar with the plan.
Loehmann’s, a discount retailer with more than 60 stores in 16 states, received tenders from holders of 92.4 percent of the $110 million in senior secured notes maturing next year. Although enough for confirmation of a so-called prepackaged plan, the tenders were short of the 97 percent required to implement the offer outside court.
Loehmann’s is working on a prepackaged plan, according to the people, who asked not to be identified because the deliberations are private. For Bloomberg coverage, click here.
Under the expired exchange offer, the existing notes, maturing in 2011, could have been exchanged for new notes in the same amount, maturing in 2014.
The New York-based company is owned indirectly by Istithmar PJSC, an investment firm owned by the government of Dubai. Loehmann’s emerged from a 14-month a Chapter 11 reorganization with a confirmed plan in September 2000. At the time, it was operating 44 stores in 17 states.
InSight in Talks, Misses Interest Payment on Notes
InSight Health Services Corp. moved in the direction of a restructuring or another Chapter 11 reorganization when it didn’t make the $4.2 million interest payment due Nov. 1 on $293.5 million in senior secured floating-rate notes due in November 2011.
InSight said it is in discussions on a “restructuring” with holders of a “significant majority” of the notes. The company’s revolving credit lender agreed to forbear from exercising remedies until Dec. 1.
The Lake Forest, California-based company provides diagnostic-imaging services in 30 states. It had 62 fixed and 104 mobile facilities at the end of the June fiscal year.
InSight’s auditors previously said that they have substantial doubt about the company’s ability to continue as a going concern. The company’s parent, InSight Health Services Holdings Corp., began a so-called prepacked Chapter 11 case in May 2007 and completed the reorganization that July.
The plan paid creditors in full other than holders of the $194.5 million in notes, who were given 90 percent of the stock. Existing shareholders retained 10 percent.
The balance sheet on June 30 was upside down with assets of $141 million and total liabilities of $321 million.
The parent’s stock closed on Nov. 2 at 7 cents, down 2 cents a share in the over-the-counter market.
Prepack Possible
Vertis Will Prepack If Tenders Offer Falls Short
Vertis Inc., an advertising and marketing services provider, announced a stock-for-debt exchange offer that will be completed through a so-called prepackaged Chapter 11 filing if 98 percent of the affected debt isn’t tendered.
The offer is supported by holders of 68 percent of the $258 million in 13.5 percent senior pay-in-kind, or PIK, notes due 2014 and 80 percent of the $478 million in 18.5 percent second- lien notes due 2012, according to Vertis.
The restructuring will reduce debt by more than $700 million, or 60 percent, Chapter 11 veteran Vertis said. Previously, Vertis was offering a combination of cash, new senior secured notes and stock.
The new proposal calls for holders of the second-lien notes to receive between 8.49 and 8.065 shares of new stock for each $1,000 in debt. The PIK debt holders would get 2.46 shares for each $1,000 in existing debt. The new stock will be issued after a 60,111 to 1 reverse stock split.
Holders of the second-lien debt can also buy as much as $100 million in additional equity, to be used for further reduction in company debt.
Vertis said it has commitments for a $175 million revolving credit and a $425 million term loan to be implemented when the exchange offer or reorganization is completed.
Second-lien debt holders will receive a 2.5 percent consent fee for tendering by Nov. 15. Holders of PIK debt will receive a consent fee in the form of an additional 0.82 shares for each $1,000 in tendered debt. The offer expires on Dec. 1, unless extended.
The offer comes slightly more than two years after Vertis and American Color Graphics Inc., the third-largest insert printer in North America, merged by confirming companion Chapter 11 reorganizations. Completed in August 2008, the companies’ previous reorganizations reduced their combined debt by almost $1 billion.
First announced in April, the exchange offer was amended several times. In May, Vertis was aiming to reduce debt by $185 million.
ACG, based in Brentwood, Tennessee, had $528 million in debt before the prior bankruptcy while the debt of Baltimore- based Vertis was $1.7 billion at the holding company.
The prior cases were In re ACG Holdings Inc., 08-11467, and In re Vertis Holdings Inc., 08-11460, both in U.S. Bankruptcy Court, District of Delaware (Wilmington).
New Filing
Pro Beach Volleyball Tour Cancels Season, Files Chapter 11
AVP Pro Beach Volleyball Tour Inc., a producer of beach volleyball tournaments, filed for Chapter 11 relief on Oct. 29 in Los Angeles after canceling the remainder of the season.
AVP, based in Torrance, California, said a lack of working capital forced it to cancel the last five events in the 12-event season. AVP blamed the loss of corporate sponsors, who provide 80 percent of revenue.
The company called itself the operator of the “most prominent professional beach volleyball tournaments in the U.S.” and said in court papers that it has more than 200 “top volleyball professionals under exclusive contracts.”
AVP is 72 percent-owned by RJSM Partners LLC, the secured lender owed $5.4 million. Unsecured debt is $5 million, according to court papers. Assets are less than $500,000 while debt exceeds $1 million, according to the petition.
The case is In re AVP Pro Beach Volleyball Tour Inc., 10- 56761, U.S. Bankruptcy Court, Central District California (Los Angeles).
Briefly Noted
Tribune Committee Sues Lenders and Officers Over LBO
The official creditor’s committee for publisher Tribune Co. took advantage of authority given by the bankruptcy judge at an Oct. 22 hearing by filing lawsuits on Nov. 1 to set aside some of the transactions making up the publisher’s 2007 leveraged buyout. Defendants in the two suits include lenders plus officers and directors.
For a discussion of the three competing plans filed by creditors to reorganize Tribune, click here for the Nov. 1 Bloomberg bankruptcy report. For details of Tribune’s own plan filed Oct. 23, click here for the Oct. 25 Bloomberg bankruptcy report.
Tribune withdrew a prior version of a reorganization in August following the examiner’s report finding there was some likelihood that the second phase of the leveraged buyout in December 2007 could be attacked successfully as a constructively fraudulent transfer. The examiner found less likelihood that the first phase of the transaction in June 2007 could be attacked successfully.
The second part of the buyout entailed the issuance of $2.1 billion on the senior credit and a $1.6 billion bridge loan. For a summary of some of the examiner’s conclusions, click here for the July 27 Bloomberg bankruptcy report. Tribune’s abandoned plan would have forced through a settlement some creditors opposed.
The $13.7 billion leveraged buyout in 2007 was led by Sam Zell.
Tribune is the second-largest newspaper publisher in the U.S. It listed $13 billion in debt for borrowed money and assets of $7.6 billion in the Chapter 11 reorganization begun in December 2008. It owns the Chicago Tribune, Los Angeles Times, six other newspapers and 23 television stations.
The case is In re Tribune Co., 08-13141, U.S. Bankruptcy Court, District Delaware (Wilmington).
Citadel Rescinds Stock Awards to Chief Executive
Citadel Broadcasting Corp., a Las Vegas-based owner of 224 radio stations, will rescind stock awards to Chief Executive Officer Farid Suleman, according to a bankruptcy court filing yesterday by R2 Investments LDC, a creditor who alleged in October that the awards violated the confirmed reorganization plan.
R2 said Citadel instead will issue stock options in accordance with the plan.
R2, which supported the Citadel Chapter 11 plan implemented in June, contended that management and directors gave themselves stock worth $110 million when the plan only allowed options to vest over three years at strike prices equaling the market or higher. For other Bloomberg coverage, click here. For details on R2’s allegations, click here for the Oct. 11 Bloomberg bankruptcy report.
For details on Citadel’s plan, click here for the May 18 Bloomberg bankruptcy report. The predicted recovery for Citadel’s secured creditors was 82 percent. For unsecured creditors, it was 36 percent.
The case is Citadel Broadcasting Corp., 09-17442, U.S. Bankruptcy Court, Southern District of New York (Manhattan).
Landry’s Approved to Buy Claim Jumper Restaurants
Claim Jumper Restaurants LLC, the operator of a chain of 45 western-themed restaurants, received approval at a hearing yesterday to sell the business to Landry’s Restaurants Inc. in a transaction valued at $76.6 million.
Landry’s bid included $48.3 million cash, the assumption of $23.3 million in debt, and $5 million in cash to collateralize existing letters of credit. At the auction that Landry’s won, the opening cash bid was $27 million from a company formed by Black Canyon Capital LLC and Bruckmann Rosser Sherrill & Co. Black Canyon is an affiliate of the unsecured mezzanine lender, according to court papers.
Landry’s purchased Oceanaire Inc., a chain of bankrupt seafood restaurants, following an auction in April.
For Bloomberg coverage, click here.
In addition to $69.5 million in secured debt, Claim Jumper owes $112.5 million on subordinated notes. The petition says assets are worth more than $50 million while debt exceeds $100 million.
The case is In re Claim Jumper Restaurants LLC, 10-12819, U.S. Bankruptcy Court, District of Delaware (Wilmington).
Daily Podcast
Tribune’s Competing Plans and the Freedom to Threaten: Audio
The four plans competing to reorganize Tribune Co., the upcoming reorganization of the publisher of Star and National Enquirer, the lawsuit by Downey Financial Corp. to take tax refunds away from the Federal Deposit Insurance Corp., and the freedom to make threats about filing a lawsuit are analyzed in the bankruptcy podcast on the Bloomberg terminal and Bloomberglaw.com. To listen, click here.
Advance Sheets
Scotia, Palco Buyers Seek Full 5th Circuit Review
The purchasers of Scotia Pacific Co. and affiliate Pacific Lumber Co. filed a motion yesterday asking all of the active judges in the U.S. Circuit Court of Appeals in New Orleans to rehear an Oct. 19 ruling by a panel of three judges that in substance told the buyers they must pay more than they bargained for the California timberland owners.
Chief Judge Edith H. Jones from the U.S. 5th Circuit Court of Appeals overturned the two lower courts and told Scotia and Palco that they must pay an extra $29.7 million because the bankruptcy judge made a mistake in calculating the amount owed to secured lenders for use of their collateral during the Chapter 11 case. Because Marathon Structured Finance Fund LP and Mendocino Redwood Co. bought Scotia and Palco for $580 million cash and the conversion of $160 million of debt into equity, they must come up with the extra $29.7 million to retain their investment.
In the petition for rehearing to all the 5th Circuit judges, Marathon and Mendocino argue that Jones didn’t follow prior opinions from her circuit on the issue called equitable mootness. The two buyers contend that the doctrine prevents imposing a new liability on a formerly bankrupt company without consideration of the impact on third parties, such as investors and lenders.
For the rehearing motion, the buyers retained G. Eric Brunstad Jr., the lawyer who in recent years has argued the most bankruptcy cases in the U.S. Supreme Court. Brunstad is from the Hartford, Connecticut, office of Dechert LLP.
Brunstad contends that the opinion last month creates a so- called conflict of circuits because it differs from rulings on mootness in the U.S. Courts of Appeal in New York, Chicago and Philadelphia.
Brunstad’s papers characterize the Jones opinion as meaning that a “third party investor can no longer rely on the finality of confirmation.” By saying there is a conflict among circuit court ruling on the issue, Brunstad is laying the foundation for a possible appeal to the U.S. Supreme Court, if necessary.
For details on Jones’s opinion from October, click here to read the Oct. 22 Bloomberg bankruptcy report.
Scotia, Palco and four affiliates filed Chapter 11 petitions in January 2007 when a $27 million payment was coming due on notes secured by the timberland. The bankruptcy judge approved the Chapter 11 plan in a confirmation order in June 2008.
The opinion by Jones is Bank of New York Trust Co. NA v. Pacific Lumber Co. (In re Scopac), 09-40307, U.S. 5th Circuit Court of Appeals (New Orleans). The bankruptcy court case is Scotia Pacific Co., 07-20027, U.S. Bankruptcy Court, Southern District Texas (Corpus Christi). The prior appeals court decision is Bank of New York Trust Co. v. Official Unsecured Creditors’ Committee (In re Pacific Lumber Co.), 08-40746, U.S. 5th Circuit Court of Appeals (New Orleans).
To contact the reporter on this story: Bill Rochelle in New York at wrochelle@bloomberg.net.
To contact the editor responsible for this story: David E. Rovella at drovella@bloomberg.net. |
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massdee
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5299 Posts |
Posted - 11/09/2010 : 4:53:43 PM
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| What are you trying to say? Could they NOT pay their taxes at all? |
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BOA 2010
