A group of businesses owed more than $2.5 million by Washington, D.C.’s Specialty Hospital is seeking to push the troubled health-care facility into bankruptcy.
Creditors of Specialty Hospital of Washington LLC, which runs the city’s only long-term acute-care hospitals, Wednesday filed an involuntary bankruptcy petition against the facility in U.S. Bankruptcy Court in Wilmington, Del.
The creditors, owed about $2.7 million, include hospital landlord Capitol Hill Group and local facility service providers CropMetcalfe CroppMetcalfe and JFW Services.
That’s just a fraction of some $50 million in corporate debt, unpaid taxes and overdue utility bills facing the hospital, according to the Washington Business Journal. And that doesn’t include another $11.4 million in dispute with the D.C. Medicaid program, the paper reported.
The health-care provider operates two long-term care facilities in the Capitol Hill and Southwest sections of the city as well as two nursing homes.
Specialty Hospital of Washington spokeswoman Lisa Proctor declined to comment on the creditors bid to force the hospital into bankruptcy. Representatives of its parent, Specialty Hospitals of America, couldn’t be reached for comment.

WSJ.com: Bankruptcy Beat
(posted 1 day 6 hours ago)

“Break-up fees,” a common deal-protection construct, both inside and outside of chapter 11, are designed to compensate an initial bidder or prospective lender for the time and money invested in formulating and documenting a transaction and establishing a “floor” for potential terms.  In recent years, however, courts have been critical of break-up fees and other bidding protections on the basis that such protections are unnecessary to safeguard lenders and may discourage debtors from exploring higher and better offers for the benefit of the estate and creditors.  So-called “stalking horse bidders” and break-up fees took yet another hit, in a recent decision, In re C & K Market, Inc., by the United States Bankruptcy Court for the District of Oregon, which ruled that a break-up fee for a prospective debtor-in-possession (DIP) financing lender was a prepetition claim not entitled to administrative expense priority.

(posted 1 day 7 hours ago)
In this June 20, 2013 photo, Alfred Almada, of West Hartford, Conn., practices at the Connecticut Amateur Jai Alai in Berlin, Conn.
Erin Covey/Associated Press

News of a successful bankruptcy auction sent shares of Florida Gaming Corp. soaring to $1.25 a share, only to spike again after a tip from an anonymous blogger suggested that equity holders might receive a substantial distribution.  The price plummeted, however, after an SEC filing on April 7 confirmed that shareholders should not expect any proceeds resulting from the auction.

WSJ.com: Bankruptcy Beat
(posted 1 day 8 hours ago)

Quantason LLC, which is developing an advanced ultrasound to screen for breast cancer, filed for Chapter 11 protection Wednesday with the hopes of finding a buyer.
In court papers, the venture capital-backed Quantason says its “precarious financial position” drove its decision to seek a quick sale in bankruptcy. The Los Angeles company is proposing that would-be buyers submit their bids by June 2 ahead of a June 9 auction.
Founded in 2009, Quantason is developing technology to screen for and prevent breast cancer. It hopes to enhance existing ultrasound 2D and 3D imaging capabilities to achieve higher detection sensitivity, which would allow users to find high-risk breast lesions earlier. These lesions, called microcalcifications, are strong predictors of the presence of breast cancer, Quantason says.

WSJ.com: Bankruptcy Beat
(posted 1 day 8 hours ago)

On Monday, lawyers for NML and Argentina (with a cameo by lawyers for the US Department of Justice) were before the Supreme Court arguing about the scope of a US court's power to order discovery in aid of execution. (Here's the transcript; here's a good summary of the argument itself.) This case is about the proper interpretation of the Foreign Sovereign Immunities Act (FSIA) and is unrelated to the pari passu litigation. The question, in a nutshell, is whether a creditor that holds a money judgment from a US court can obtain broad discovery into the nature and location of the sovereign's assets worldwide. Bear in mind that the US court can only enforce its judgment by allowing the creditor to execute on commercial assets located in the United States; it has no power to reach assets overseas. But NML wants to use the information it uncovers during discovery to identify assets in other countries that might be subject to seizure under the law of those countries. Let's call this the "discovery case" to distinguish it from the "pari passu" case.

Credit Slips
(posted 1 day 9 hours ago)

Those in the industry say customers aren't asking for specific same-day capabilities. Could it be that they aren't asking because they are finding solutions elsewhere?

(posted 1 day 10 hours ago)

Protecting Life Insurance When filing a chapter 7 bankruptcy, you are allowed to protect a certain amount of personal property. One of those items of personal property is life insurance. Life insurance is treated two different ways when filing bankruptcy. The first involves term life insurance. Term life insurance provides for a death benefit. What+ Read MoreThe post Is My Life Insurance Policy Protected IF I File Bankruptcy? appeared first on David M. Siegel.

(posted 1 day 10 hours ago)

People who are suing General Motors Co. over an ignition-switch defect want a bankruptcy judge to declare that the auto maker’s government-orchestrated sale in 2009 doesn’t shield it from liability for the ignition problem, which has been linked to more than a dozen deaths. Read the Daily Bankruptcy Review article via Law Blog.
(Daily Bankruptcy Review is a daily newsletter with comprehensive coverage and analysis of emerging and in-progress insolvencies and turnarounds. For a two-week trial, visit our homepage, scroll to the bottom and click “try for free.”)
The New York Times reports on the appointment of Martha E.M. Kopacz as the consult on Detroit’s debt-cutting plan.

WSJ.com: Bankruptcy Beat
(posted 1 day 10 hours ago)

Receiving Wide Coverage ...

Pay Up: Citigroup CEO Michael Corbat's pay package was blessed by shareholders at Citi's annual meeting in St. Louis; proxy advisory firms Glass Lewis and Egan-Jones had recommended rejecting Corbat's pay, the Wall Street Journal reported. Even so, pension fund giant Calpers voted in favor of the pay packages, the FT said. Shareholders approved all other proxy questions at the two-hour meeting. All this in spite of Citi's recent round of embarrassments:...

(posted 1 day 11 hours ago)

VirginiaDebtRelief.org, one of those “Avoid Bankruptcy” outfits–is unusual because they claim to be rated A+ by the Better Business Bureau. These debt settlement operations work the same way–people stop paying their cards, put some money away for settlement, the company settles a couple small ones, collects a fee, and then the consumer gets sued on […]The post Is VirginiaDebtRelief.org really BBB rated A+ by appeared first on Robert Weed.

Robert Weed
(posted 2 days 4 hours ago)