New York readers may be interested to know that food processor Allens Inc is in bankruptcy, but has promised to pay all of its vegetable suppliers for any goods they purchase. This Chapter 11 filing will allow the company to continue operating as it restructures its debt. The Arkansas-based Allens, which also goes by the name Allens Canning Company, is primarily known for canned vegetable products sold under the brands of Veg-All and Popeye Spinach. It filed for debt reorganization in October and set up a webpage that offers explanations to both customers and creditors. On its website, Allens stated that it intends to pay for any goods or services received at its facilities after the filing date. Bankruptcy law prohibits the company from paying debt incurred prior to the filing. Allens listed debts in the range of $100 million and $500 million. The website offers links for creditors who wish to file for any pre-bankruptcy monies owed to them. There is also a link so anyone who wishes to can keep track of the various motions being filed in the case. Most of the creditors are suppliers of fresh produce. The produce doesn’t reach the consumers as fresh product,… Continue reading
Readers in Rockland County may be interested in the announcement that the parent company of Advantage Rent A Car, Franchise Services of North America, is planning to take the company intoChapter 11 bankruptcy. Advantage Rent A Car, which offers value priced car rentals in more than 30 states, was sold to FSNA by Hertz Corp in 2012. Once Simply Wheelz LLC, the division of FSNA that operates as Advantage Rent A Car, began to sell some of the 24,000 vehicles that were purchased from Hertz, it became clear that the fair market value of the vehicles was considerably lower than the book value for each vehicle they had been provided by Hertz Corp. After selling almost 5300 vehicles, Simply Wheelz lost more $8.5 million, an average loss of more than $1500 per vehicle. Although Simply Wheelz is attempting to secure more financing, the decision to file Chapter 11 bankruptcy was influenced by the realization that they were unsure how much additional money they may lose as a result of the valuation discrepancies. Officials with Simply Wheelz asked Hertz to provide additional information to justify the high book values they calculated for the fleet, but Hertz has not provided a response…. Continue reading
On November 13, a bankruptcy judge in New York ordered that a case involving Interfaith Medical Center would go into mediation. This process will be supervised by a U.S. bankruptcy judge from the Eastern District of New York, and reports said that the ultimate goal of such actions is to reach an agreement that falls somewhere between the facility’s complete closure and the preservation of the care center as is. The hospital filed for Chapter 11 in December 2012 after the state had rejected its proposed restructuring plan. During that year, it hosted 11,000 inpatient visits and treated 250,000 outpatients. The judge’s recent deferral of a final decision follows in the wake of multiple adjournments that occurred during earlier negotiations. Advocates for the hospital said that the bankruptcy case had political motivations, claiming that the New York Department of Health and the Dormitory Authority of the State of New York could gain the ability to change Brooklyn health care policy indirectly by closing the hospital. DASNY, which provides financing and construction services to colleges and health care institutions, is the facility’s largest secured creditor. Analysts noted that the state’s current plan to close services such as inpatient psychiatric beds and surgery might… Continue reading
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