New York data services provider files for Chapter 11

Broadview Networks, Inc., a business data provider of phone and Internet services, has sought to reorganize its debts through a Chapter 11 bankruptcy filing while obtaining protection from creditors. The company announced in July that it had reached an agreement with some of its creditors to commit to a financial restructuring plan. This plan would give the creditors equity in the company as well as new five-year payment notes in exchange for wiping out $300 million in senior secured notes scheduled to mature on Sept. 1, 2012. The company’s current largest equity holders are MCG Capital with 51 percent and Baker Communications Fund with 15 percent. Several other investors supported the restructuring agreement. Broadview Networks listed about $500 million in total debt and assets in its bankruptcy documents. The business’s parent company, Broadview Network Holdings Inc., reported $5.3 million in net loss for the first quarter of 2012, with assets of about $260 million and liabilities exceeding $370 million. The company’s revenue fell from about $407 million in 2010 to $378 million in 2011. The company is getting itself back on track, however, with about 36,000 current U.S customers and a sound new business model. In fact, many companies that experience extreme… Continue reading

Under Chapter 11, American Airlines cancels hundreds of flights

American Airlines has cancelled hundreds of flights in recent weeks with more on the horizon. The company reported that nearly 300 flights were cancelled to cope with the increasing number of pilots who are reporting sick and crews who are repeatedly filling maintenance reports. The recent changes seem to have developed from the company’s Chapter 11 bankruptcy. A bankruptcy ruling earlier this month allowed the company to throw out its union contract with pilots, allowing the company to impose new regulations on the wages of the pilots as well as on their work schedules. Further cutting costs, the company has also announced 11,000 layoff notices. The result of the turmoil has caused American Airlines to cancel the largest number of flights ever compared to any other U.S airline. The company is trying to cushion the passengers from the effects of the cancellation of flights. It is doing this by letting passengers fly standby for earlier flights at no extra charge. The company has also let the crew be more flexible with the snacks during flights; the passengers are now getting more snacks in a bid to relax them during delays. AMR Corp, the company that owns both American and Eagle,… Continue reading

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

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