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

Fleet Aviation files to liquidate under Chapter 7

There will be one less charter flight company servicing the East Coast. Fleet Aviation LLC, which operates out of Westchester County Airport in New York and serves vacation destinations like Martha’s Vineyard, Nantucket and the Hamptons, has filed for Chapter 7bankruptcy. As a result, the company will cease to exist and its assets will be liquidated to pay off debt. Fleet Aviation has had its share of troubles recently. In August, the U.S. Attorney’s Office in Manhattan sued the carrier for violating federal aviation regulations, alleging it used an unqualified pilot on numerous flights in 2008 and 2009. That lawsuit was settled when the company agreed to pay a fine of $40,000. Earlier in the year, the company’s CEO resigned. In its bankruptcy filing in U.S. Bankruptcy Court for the Southern District of New York, the company listed up to $50,000 in assets and up to $500,000 in debt. Chapter 7 for businesses is a measure used when a business has overwhelming debt and can no longer operate profitably. Once Chapter 7 bankruptcy is filed, all collection actions stop. The court then appoints a trustee to sell the company’s assets and pay off debt to creditors and investors based on… Continue reading

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