New York residents may be interested in the recent bankruptcy filing of a military radar systems manufacturer. Star Dynamics, of Hilliard, Ohio, recently filed for Chapter 11 bankruptcy protection amid excessive debt and a trade secrets suit brought by a competitor. In the filing, Star Dynamics said bankruptcy was the best course of action because of its constant need for funding and because the trade secrets litigation was proving to be a distraction. It is also putting itself up for sale. State court actions usually get put on hold when a company is in bankruptcy. However, the competitor in the trade secrets suit, BAE Systems, asked the court to allow the litigation to continue despite Star Dynamic’s bankruptcy filing. BAE said that many of its former employees now work for Star and that a forensic investigation found nearly 200,000 of BAE’s records on Star Dynamic computers in altered form. BAE said a pause in the trade secrets litigation would cause irreparable harm to its business as Star is actively courting their clients. In the bankruptcy filing, Star Dynamics listed assets of $28.5 million, liabilities of $50.9 million and revenue of $8.1 million. Approximately $32 million of the debt came from… Continue reading
A Bronx retailer has won a judge’s approval to sell its assets, estimated to be worth over $16 million, to help liquidate the business and pay creditors. In addition to the inventory, the courts also allowed for the sale of the company’s intellectual property as well as its list of customers. Those items have been sold for $850,000. The retailer, Loehmann’s Holdings Inc., operates in 11 states with 40 stores and specializes in the sale of designer fashions at a discount. The buyers are negotiating the terms and have offered 29.8 percent for the inventory. The retailer will also begin to conduct closing sales at its store locations soon. This is not the first bankruptcy for Loehmann’s as it filed for Chapter 11 twice in the past. The retailer seeking bankruptcy is controlled by a parent company that may receive some of the proceeds of the sale. Several unsecured creditors object to that provision and have launched an investigation into whether those claims are valid. Other objections have been brought by the U.S. Trustee. They are concerned with the company’s plan to pay $655,250 in bonuses to two company officers without proof of valid reason for doing so. The company… Continue reading
A U.S. Bankruptcy Court judge in New York recently ruled that Anadarko Petroleum Corporation could owe as much as $14.17 billion to an environmental trust and other creditors of Tronox Incorporated, a paint materials company that Anadarko spun off in 2005. Anadarko’s attorneys disagreed with the ruling and said that Anadarko’s liabilities should be between $850 million and $1.76 billion. The suit comes as part of a Chapter 11 bankruptcy filing by Tronox. At the time of filing bankruptcy, Tronox also sued Anadarko and Kerr-McGee, which Anadarko had purchased three years prior. Tronox claimed in the suit that the two companies had fraudulently saddled the new company with environmental liabilities that it couldn’t meet. Tronox’s attorneys said that Anadarko’s response to the judge’s findings were “tortured” and inaccurate. Tronox said that 88 percent of any judgement will go to an environmental trust that was set up to compensate victims of pollution generated by the company. The remaining 12 percent will go to numerous other creditors. The environmental trust had been seeking $25 billion to clean up more than 2,000 polluted sites in the United States. Bankruptcies can often be complicated by former spinoffs, mergers, acquisitions and strategic partnerships. It is… Continue reading
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