Business Bankruptcy News Bulletin Summary for Week of August 23

The items below are excerpted from the Business Bankruptcy News Bulletin. A full issue contains information on dozens of troubled companies, as well as informational and analysis highlights and an examination of business bankruptcy matters. Please visit the insideARM bookstore for information on subscribing to the Bulletin.

A Brief Look at Collection Efforts In a Bankruptcy Filing

When a debtor files for bankruptcy, whether it be under Chapter 7, 11, or 13, and whether it be a voluntary filing or involuntary filing, “all entities” are automatically and immediately stayed from taking any action or continuing any legal action against the debtor. This includes attempts to collect debt from the debtor by any party. This also applies to the enforcement of liens against the debtor’s property. This stay also relates to repossessions of property.

BANKRUPT COMPANIES

Apex Digital Inc., Walnut, Ca., filed Chapter 11 in the U.S. Bankruptcy Court for the Central District of California. The firm listed assets and liabilities of between $10 million and $50 million each. The filing was under case number 10-44406. For more information contact the court at 866-522-6053.

Boston Generating LLC, New York, N.Y., filed Chapter 11 in the U.S. Bankruptcy Court for the Southern District of New York. The firm listed assets and liabilities of more than $1 billion. The filing was under case number 10-14419. Also filing were BG New England Power Services Inc. under case number 10-14423, BG Boston Services LLC under case number 10-14424, along with other filings.  For more information contact the court at 866-232-1268.

HF Three I LLC, Paradise Valley, Az., filed Chapter 11 in the U.S. Bankruptcy Court for the District of Arizona. The firm listed assets and liabilities of between $10 million and $50 million each. The filing was under case number 10-26198. For more information contact the court at 888-549-5336.

IT Holdings SpA, New York, N.Y., filed Chapter 15 in the U.S. Bankruptcy Court for the Southern District of New York. The firm listed assets and liabilities of between $500 million and $1 billion each. The filing was under case number 10-14354. For more information contact the court at 866-232-1268.

Max & Erma’s Restaurants Inc., the Columbus, Oh. firm which is trying to emerge from Chapter 11, ran into some trouble with its reorganization plan after the Ohio Department of Taxation objected to it, saying that it won’t be paid what it’s owed. The company has been operating under Chapter 11 in the U.S. Bankruptcy Court  in Pittsburgh, Pa.

Sea Island Co., a Georgia real-estate development firm which recently filed Chapter 11, is reportedly trying to sell itself to a number of investment funds. Terms of a planned sale weren’t revealed, but guesses are that the value of the buyout is pegged at $200 million, in cash. The firm is reportedly in the hole for more than $480 million in liabilities.

Shane Co., a retail chain that filed Chapter 11 a year and a half ago, filed its reorganization plan, which calls for, among other things, unsecured creditors to get a junior security interest in the firm’s inventory.