Inside these posts: Chapter 11

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Blockbuster prepares itself for sale

Blockbuster Inc., which filed for bankruptcy last year, is preparing to put itself up for sale after creditors disagreed on plans to give the chain more cash, the Wall Street Journal reported Thursday, citing unnamed sources. Get the full story »

Tribune lenders drop competing bankruptcy plan

A group of lenders has withdrawn its plan for reorganizing newspaper owner Tribune Co, leaving two proposals for ending the company’s two-year stay in bankruptcy, according to court documents.

The group known as the Bridge Lenders agreed to withdraw its plan and support Tribune’s proposal, which is based on a settlement among lenders JPMorgan Chase & Co and hedge funds Oak Tree Capital Management and Angelo, Gordon & Co. Get the full story »

GE Capital tosses Borders a $550M lifeline

Borders Group has received a commitment for a $550 million credit line from GE Capital, a lifeline that will help the struggling bookseller pay its vendors and stay afloat –  but it indicated that bankruptcy protection might still be an option.

Its shares jumped 28 percent in after-hours  trading on the news. Get the full story »

Tribune creditor seeks details on Morgan holdings

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.

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 »

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 »

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 »

General Growth eyes dividend; Hughes trades

General Growth Properties plans to resume paying dividends early next year, after the second-largest U.S. mall operator emerged from bankruptcy and spun off a new company, Howard Hughes Corp.

Citing a higher-than-expected cash stake, General Growth also said it expects to retire $570 million of obligations by paying cash, avoiding the potential issuance of more than 50 million common shares. Get the full story »

Berry Chill closes flagship State Street store

The flagship State Street store of Chicago-based Berry Chill LLC, a frozen yogurt purveyor that filed for Chapter 11 bankruptcy in April, is closed.

A sign on the door at 635 N. State St. said the location is “temporarily closed due to emergency repairs,” though  postings on its Facebook page and Twitter stream said it’s in a “legal battle”  with its landlord. Get the full story »

Judge gives creditors right to sue Zell, others

A bankruptcy judge on Friday granted Tribune Co.’s  official committee of unsecured creditors authority to make the opening moves in long-threatened litigation over the 2007 leveraged buyout blamed for the media company’s tumble into Chapter 11.

Judge Kevin Carey said he would sign off on an order acknowledging the official committee is the proper body to bring claims against lenders, executives and other leaders of the embattled media company, as well as advisers who reaped millions in fees from the LBO. Get the full story »

General Growth cleared to exit bankruptcy

General Growth Properties’ reorganization plan was approved on Thursday, paving the way for the mall operator to exit bankruptcy a year and a half after it was brought to its knees under billions in debt it could not refinance.

General Growth said it expected to emerge from bankruptcy around Nov. 8. It then would turn its attention to a $2.25 billion share sale to raise capital. Get the full story »

Tribune Co. reaches deal with 2 largest creditors

Tribune Co. has reached a settlement with Angelo, Gordon & Co. and Oaktree Capital Management, two of the largest senior creditors in its bankruptcy case, that will form the basis of a new plan of reorganization for the company. Get the full story »

Creditor seeks Ch. 11 trustee in Tribune Co. case

A large junior creditor in Tribune Co.’s bankruptcy case asked the judge to appoint a Chapter 11 trustee to administer potential legal claims surrounding the company’s ill-fated 2007 leveraged buyout.

Contending that the debtor, its management and lawyers for the committee of unsecured creditors face too many conflicts of interest, Aurelius Capital Management  said appointing an independent third party would be the only way to make sure potential claims get a fair hearing. Get the full story »