Bankruptcy lawyers strike deal to save hockey season

A deal struck outside a Rochester courtroom on Sept 27 likely saved the season for the Elmira Jackals hockey team. The season, scheduled to begin October 12, was in jeopardy due to an ongoing dispute over First Arena, where the Jackals play, and a Chapter 11bankruptcy proceeding filed by the arena’s former operator. The interim agreement reinstates Elmira Downtown Arena LLC (EDA) as the arena operator and preserves hockey in Elmira. In July, First Arena’s owner terminated its agreement with EDA, which is controlled by the same Michigan businessman who owns the Jackals. This led to a legal proceeding to determine whether the Jackals could play in the arena this season. EDA filed for Chapter 11 bankruptcy in August, automatically halting the other legal proceeding. Elm Arena LLC, which has taken over the arena’s mortgage and is under contract to become the new owner, then sought payments from EDA under the bankruptcy rules for protection against the arena’s depreciation. If no agreement was reached, the new owner was prepared to ask the bankruptcy judge to keep EDA and the Jackals out. Under the agreement, EDA will make $18,000 monthly payments to Elm Arena, maintain adequate insurance on the facility, and properly… Continue reading

Bankruptcy filed by Metro Fuel Oil

In a surprising move that occurs just over a year after its grand opening, Metro Biofuels is filing for bankruptcy along with its parent company, Metro Fuel Oil Corp., and eight subsidiaries. The company has a large facility at Enterprise Park in Calverton. The corporation plans to continue doing business during the course of the Chapter 11bankruptcy, and the bankruptcy court has made $3 million in financing available in addition to its normal revenue to keep the company running. Metro supplies and delivers biofuel alternatives and natural gas through the stimulus-funded rail spur leading to the Calverton facility. The company reportedly has $100 million in debt — about twice the amount of its assets. However, Metro Fuel Oil still hopes to raise capital and funds to meet its obligations and continue to supply products to residents and businesses in the area. Business bankruptcy filings are not always indicative of a hopeless business situation. In fact, in many instances, companies that have been caught in circumstances due to market shifts can file for Chapter 11 reorganization to allow creditors to secure their positions and to reduce their debt load so that they can keep operating at peak capacity and making money to… Continue reading

Suzuki’s American unit files for bankruptcy

Slow sales and a patchy safety record may have led Suzuki’s United States division to file for Chapter 11 bankruptcy protection. However, the company has good sales in other emerging markets such as India and Southeast Asia. In Japan, Suzuki meets the requirements for inclusion in the “kei” vehicle market whose cars must meet small size requirements and power limits, and the company’s cars have historically done well there. A strong yen has also made it more fiscally wise to sell cars in Japan rather than shipping them to America. The distributor for American Suzuki filed its bankruptcy petition with a declared $346 million in debt. The company cited low sales, a limited lineup and poor exchange rates as reasons for the petition. The company also cited the high cost of doing business under United States regulatory requirements as another reason for the decision. The company will continue to sell its inventory at dealerships, and current owners will be able to acquire parts and exercise rights under existing warranties. The company will not stop sales of motorcycles, boats and ATVs in the United States. A business bankruptcy for a company of this size can be very complicated and requires a… Continue reading

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