California Bankruptcy Lawyer Blog

Fremont Bankruptcy Attorney Discusses Granite Broadcasting, Owner of California TV Stations, Files for Chapter 11 Bankruptcy

Granite Broadcasting filed for Chapter 11 bankruptcy last week. The Company, an owner of television stations in California and New York, says that it has already made plans to reorganize itself while under bankruptcy protection. Granite has listed $100 million in assets and $100 million in debt.

The Company says the plan it has negotiated with creditors will cut its corporate debt to $230 million—that’s a $275 million reduction, according to the company. A judge and the creditors must formally approve the plan before it can go into effect. Granite Broadcasting says it has less than 200 creditors.

Granite Broadcasting Corporation owns and operates, or provides programming, sales and other services to 23 channels in the following 11 markets:

· San Francisco, California;
· Detroit, Michigan;
· Buffalo, New York;
· Fresno, California;
· Syracuse, New York;
· Utica, New York;
· Binghamton, New York;
· Elmira, New York;
· Fort Wayne, Indiana;
· Peoria, Illinois;
· and Duluth, Minnesota-Superior, Wisconsin.

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Posted by Scott Sagaria | Permalink | Email This Post | Comments (0)

Posted In: Chapter 11

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San Jose Bankruptcy Attorney Discusses California’s East Bay, Efforts By Bankruptcy Trustee To Collect Money Angers Creditors

A number of investors who lost money when trusting East Bay investment executive Francis "Bill" Reimers to make investments for them are angered by the decision of a federal trustee to get money from them as part of the bankrupty proceedings involving Reimers and his companies. At least 20 individuals say they collectively lost $10 million dollars in investments because of Reimers. Yet bankrupty trustee John Kendall may have grounds to collect payment from them for the money that Reimers owes because these investors became creditors the moment Reimers filed for bankruptcy. The trustee has claimed in court records that the transfers of money up to one year prior to Reimers filing bankruptcy were "preferential" or "fraudulent."

Attorneys for Kendall have filed complaints asking for a combined total of $5 million from at least 36 parties. 30 of these parties are individual investors. Six of them are companies. The trustee is demanding about $828,000 from one local Benicia investor.The trustee is also demanding $693,000 from American Express Credit, $258,000 from First USA Bank, $58,000 from Bank of America, $16,000 from MBNA America, and $6,200 from Banc One Credit Card.

Reimers had filed for involuntary bankruptcy.

There are three types of trustees in bankruptcy cases.

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Posted In: Bankruptcy Trustee

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Fremont Bankruptcy Attorney Discusses Chapter 13 Bankruptcy Filers Can Tithe, Votes U.S. Congress

The U.S. House of Representatives voted “Yes” on a bill that protects a person’s rights to continue making reasonable charitable contributions, such as tithing, even while under consumer bankruptcy protection.

The bill was sponsored by Senator Barrack Obama (D-IL) and Senator Orrin Hatch (R-Utah). According to Hatch, “this bill clarifies the law so that those who tithe can continue to live their faith while in bankruptcy.

The Hatch-Obama bill, S. 4044, was drafted after a bankruptcy judge ruled that Chapter 13 filers could not tithe while still in the process of repaying their debts under bankruptcy protection. Under this new bill, all individuals regardless of income can continue to tithe to a religious organization or make charitable donations. To tithe is to give 10% of your income first before even paying bills.

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Posted by Scott Sagaria | Permalink | Email This Post | Comments (0)

Posted In: Chapter 13 Bankruptcy

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San Jose Bankruptcy Attorney Discusses San Jose-based Calpine’s Chapter 11 Bankruptcy Reorganization Plan

Electricity supplier Calpine Corp. now has until June 20, 2007 to develop a reorganization plan without creditor interference. The San Jose-based company, which declared Chapter 11 bankruptcy in December 2005, was granted a six month extension to come up with the plan. Manhattan’s U.S. Bankruptcy Court Judge Burton R. Lifland also gave the company until August 2007 to garner creditor support.

Calpine Corp. began its bankruptcy organization two months after the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 came into affect. The Act requires that Chapter 11 filers come up with an reorganization plan within 18 months of filing for bankruptcy protection. Following that "exclusive," 18-month period, creditors are free to submit their own plans for reorganizing the company.

The electricity company, which provides power to about 27 million U.S. households, says that it is trying to live within” the new bankruptcy law's mandate, but is not sure whether that is possible.

What Calpine has accomplished since filing for bankruptcy protection:

· Raised 2 billion in debtor-in-possession financing.
· Eliminated $1 billion of the $18 million debt it owes.
· Low levels of conflict in creditor negotiations.

Debtor-in-possession financing (DIP) is the credit that is given to a company after it files Chapter 11 bankruptcy.

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Posted by Scott Sagaria | Permalink | Email This Post | Comments (0)

Posted In: Chapter 11

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