Business Bankruptcy News Bulletin Summary for Week of August 16

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.

Postconfirmation Administration

Notwithstanding the entry of an order confirming the debtor’s reorganization plan, the U.S. Bankruptcy Court has the authority to issue any other order necessary to administer the estate. The court’s authority includes the postconfirmation determination of objections to claims or adversary proceedings, which must be resolved before a plan can be fully consummated. Also, Sections 1106(a)(7) and 1107(a) of the Bankruptcy Code require a debtor in possession or a trustee to report on the progress made in implementing a plan after confirmation. A Chapter 11 trustee or debtor in possession has a number of responsibilities to perform after confirmation, including consummating the plan, reporting on the status of consummation, and applying for a final decree.

BANKRUPT COMPANIES

Advance Electrical Sales of Texas Inc., Conroe, Tx., filed Chapter 11 the U.S. Bankruptcy Court for the Southern District of Texas. The firm listed assets of between $100,000 and $1 million and liabilities of between $1 million and $10 million. The filing was under case number 10-36833. For more information contact the court at 800-745-4459.

Circle Grocery Inc., Farmington, N.M., filed Chapter 11 in the U.S. Bankruptcy Court for the District of New Mexico. The firm listed assets and liabilities of between $1 million and $10 million each. The filing was under case number 10-14507. For more information contact the court at 888435-7822.

Emak Worldwide Service Inc., Los Angeles, 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 10-42779. Also filing was Emak Worldwide Service Corp. under case number 10-42784. For more information contact the court at 866-522-6053.

Love Nightclub in Washington, D.C. and a sister facility, The Park at Fourteenth, filed Chapter 7 in an attempt to keep creditors at bay pending the sale of Love. Also filing for bankruptcy protection were the two clubs’ owners.

Sea Island Company, St. Simons Island, Ga., filed Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Georgia. The firm listed assets and liabilities of between $500 million and $1 billion each. The filing was under case number 10-21034. Also filing were Sea Island Coastal Properties LLC under case number 10-21035, Sea Island Services Inc. under case number 10-21036 and Sea Island Resort Residences LLC under case number 10-21037. For more information contact the court at 912-280-1376.

Visteon Corp., the Van Buren Township, Mi. auto-parts supplier, reported a second quarter net loss of $201 million, including nearly $200 million in charges related to postpetition interest costs and benefits changes. Revenue for the quarter came in at $1.9 billion.