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.
Dischargeability Filing Deadlines In a Bankruptcy Proceeding
In a Chapter 7 liquidation, a complaint that objects to the debtor’s discharge under 727(a) of the U.S. Bankruptcy Code should be filed within 60 days of the first date of the creditors’ 341 meeting. In a Chapter 11 filing, the complaint should be filed no later than the first date set for the confirmation hearing. Section 727, however, does not apply in Chapter 13 bankruptcy proceedings. The U.S. Supreme Court has held that a time limit in Rule 4004(a) is not jurisdictional but should rather be considered a procedural-complaint processing rule. Therefore, a debtor that didn’t raise the untimeliness of a creditor’s complaint until after the court granted summary judgment to the creditor was precluded from arguing that the court lacked jurisdiction to enter that judgment. In essence, the debtor in such a case, forfeits the right to raise timeliness.
Abitibi-Bowater Inc. has seen an 11/5 hearing scheduled in the U.S. Bankruptcy Court to consider its reorganization plan. The plan was earlier approved by bankruptcy officials in Quebec. For further information contact the U.S. Bankruptcy Court in Wilmington, De. at 302-252-2560 and refer to case number 09-11296.
Carpenter Contractors of America Inc., Pompano Beach, Fl., filed Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Florida. The firm listed assets of between $50 million and $100 million and liabilities of between $10 million and $50 million. The filing was under case number 10-42604. For more information contact the court at 800-473-0226.
Fraser Papers Inc., a Canadian manufacturer of specialty papers headquartered in Toronto, Ontario, reported a widened second quarter net loss of $303 million, including nearly $300 million in noncash charges. Fraser is selling off its assets in bankruptcy proceedings in order to settle creditors’ claims against it.
General Growth Properties Inc. received approval from the U.S. Bankruptcy Court to emerge from Chapter 11 and now hopes to emerge from bankruptcy protection early next month after a year and a half of reorganizing. According to its restructuring plan, the Chicago, Il. mall owner will split into two companies and sell more than $2.1 billion in new shares. The firm has also arranged for $7 billion in capital from investors led by Brookfield Asset Management Inc. that will go toward reducing debt.
Lehman Brothers Holdings Inc. estimated that costs for its bankruptcy proceedings have now surpassed the $1 billion mark.
W.R. Grace & Co., the big Columbia, Md. chemicals firm, announced that its construction-products business opened up a manufacturing plant in Vietnam that will make cement additives. The company, which could emerge from Chapter 11 early in 2011, also reported its third quarter net income increased 24%–to $55 million, although revenue skidded 9.5%–to $682 million.