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Enron Mail |
se item re bankruptcy bill.
Lisa J. Mellencamp Enron North America Corp. 1400 Smith St. Houston, TX 77002 Tel: (713) 853-7986 Fax: (713) 646-3393 E-mail: Lisa.Mellencamp@enron.com ----- Forwarded by Lisa Mellencamp/HOU/ECT on 09/25/2000 11:38 AM ----- =09"David Rosenzweig" <drosenzweig@fulbright.com< =0909/25/2000 11:36 AM =09=09=20 =09=09 To: undisclosed-recipients:; =09=09 cc:=20 =09=09 Subject: Fulbright Daily Bankruptcy News FULBRIGHT & JAWORSKI L.L.P. DAILY BANKRUPTCY NEWS From: Wm. J. Rochelle, III Monday, September 25, 2000 Fulbright - New York Filings: AHT Corp. (Nasdaq:AHTC) filed chapter 11 on Friday in White Plains, New=20 York, along with a deal to sell its health care "E" commerce business for $= 15=20 million in cash and stock to a competitor named BioShield Technologies Inc.= =20 (Nasdaq:BSTI). AHT listed assets of $2.5 million versus liabilities of $8.= 4=20 million. The deal is slated to pay creditors in full while giving=20 stockholders ten cents in cash per share plus stock in BioShield. The banks called their loan on Signal Apparel Company, Inc. (OTCBB:SIAY),= =20 which responded by filing chapter 11 on Friday somewhere other than Delawar= e=20 (New York to be precise). Signal designs and markets activewear, swimwear= =20 and bodywear and says it is negotiating DIP financing with the banks. Bankruptcy reform update: It now looks like bankruptcy reform legislation is dead for this term. On= =20 Friday the President said he would veto a new Republican bill that would ha= ve=20 omitted some of the more controversial items. Despite the change, the=20 President's spokesman said that "too many of the bill's provisions . . . wi= ll=20 place unnecessary barriers before those who genuinely need bankruptcy=20 protection when faced with the most difficult situations life has to offer.= " Bankruptcy alternative: Maybe eBay will become an alternative to filing chapter 11 in Delaware. = =20 Example: eSeated.com consumed $5 million in initial funding developing a=20 system for making restaurant reservations online. Unable to complete anoth= er=20 financing, the company is selling its assets on eBay. Commenting on the=20 sale, the company's founder said, "This is the ultimate act of desperation = in=20 a very non-liquid market." Filing possible: The SEC has won the appointment of a receiver for Capital Consultants LLC,= =20 which manages $1 billion in union pension funds. Capital was allegedly bei= ng=20 run as a Ponzi scheme. Downgrade: In February S&P took investment grade status away from National Health=20 Investors Inc., a Nashville REIT that invests in assisted living and long= =20 term health care facilities. S&P downgraded again on Friday, this time=20 lowering the corporate rating and senior notes by two clicks each to B+. A= =20 $102 million unsecured revolver matures next month, and giving collateral t= o=20 the banks may result in another downgrade. See F&J Daily Bankr. News of Fe= b.=20 24 and May 30. Updates: Pro Air Inc., a "low cost" airline based in Detroit, filed chapter 11 last= =20 week after the FAA grounded its three aircraft for alleged safety=20 violations. The airline now admits it could not begin flight operations=20 again for at least three months. See F&J Daily Bankr. News of May 10 and= =20 Sept. 20. Safety-Kleen could not convince the court of appeals to allow the company = to=20 continue operating a landfill in South Carolina while suing in federal cour= t=20 to set aside a state court order directing that the landfill be closed. Th= e=20 company contended that the shut down order was in retaliation for filing=20 chapter 11 in June. See F&J Daily Bankr. News of Feb. 8 & 17, March 8, 13= ,=20 14, 15, 17 & 28, April 19 & 28, May 1 & 17, June 6, 12, 15, 20 & 21, July = 7,=20 10, 11, 12 & 17 and Sept. 13. In late December the appeals court held that the FCC has exclusive=20 jurisdiction to regulate the wireless licenses owned by NextWave Telecom=20 Inc. Relying on the decision, the FCC canceled NextWave's licenses, and=20 NextWave immediately turned to the bankruptcy court for help. The bankrupt= cy=20 court quickly ruled that the FCC's action was "self-help repossession by=20 ambush" and set aside the agency's license terminations. In May, the FCC w= on=20 its appeal in the Second Circuit Court of Appeals, which upheld the FCC's= =20 cancellation of the licenses. NextWave has now filed an appeal to the=20 Supreme Court. Unless NextWave wins in the Supreme Court, the company has= =20 virtually nothing left to reorganize. The press has been saying that a=20 resale of the licenses could bring the government as much as $10 billion (n= o=20 typo) at the next frequency auction now scheduled for December 12. See F&J= =20 Daily Bankr. News of June 9, 10 & 16, Oct. 22 of =02=0898 and Aug. 2, 12 & = 17,=20 Sept. 1, 21 & 22, Oct. 21, Nov. 29 and Dec. 17, 22 & 27 of =02=0899 and Jan= 13,=20 14, 19 & 27, Feb. 1 & 11 and May 26 of =02=0800. Sold: Aureal Inc. filed chapter 11 this spring in Oakland, Calif., and the=20 bankruptcy court approved the sale of the company's assets for $32 million = to=20 Creative Technology Ltd. Aureal developed and marketed audio semiconductor= =20 technologies for the PC and consumer electronics markets. See F&J Daily=20 Bankr. News of April 6. Fulbright & Jaworski L.L.P. makes NO WARRANTIES OR REPRESENTATIONS OF ANY= =20 SORT with respect to this report, including any warranties or representatio= ns=20 as to the accuracy or completeness of any of the information, facts, or=20 opinions contained herein. By having requested receipt of these reports, t= he=20 recipient acknowledges that the receipt of these reports does not constitut= e=20 the receipt of legal advice and does not, by itself, establish an=20 attorney-client relationship. These reports are provided as a courtesy=20 solely for the recipient's information and may not be reproduced or=20 distributed to any third parties without Fulbright's express written=20 authorization. - BKNEWS.wpd
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