Business Bankruptcy News Bulletin Summary for Week of December 6

The items below are excerpted from the Business Bankruptcy News Bulletin. A full issue contains information on dozens of troubled companies, as well as informational and analysis highlights and an examination of business bankruptcy matters. More information on subscribing to the Bulletin at http://usbj.biz/.

Postconfirmation Administration

Notwithstanding the entry of an order confirming the debtor’s reorganization plan, the U.S. Bankruptcy Court has the authority to issue any other order necessary to administer the estate. The court’s authority includes the postconfirmation determination of objections to claims or adversary proceedings, which must be resolved before a plan can be fully consummated. Also, Sections 1106(a)(7) and 1107(a) of the Bankruptcy Code require a debtor in possession or a trustee to report on the progress made in implementing a plan after confirmation. A Chapter 11 trustee or debtor in possession has a number of responsibilities to perform after confirmation, including consummating the plan, reporting on the status of consummation, and applying for a final decree.

BANKRUPT COMPANIES

Abitibi-Bowater Inc., the big Montreal, Quebec-based newsprint manufacturer, won approval from the U.S. Bankruptcy Court in Delaware for its Chapter 11 reorganization plan and now hopes to emerge from bankruptcy proceedings next month. For further information contact the court in Wilmington, De. at 302-252-2560 and refer to case number 09-11296.

Blockbuster Inc., the Dallas, Tx.-based chain of video-rental stores, received approval from the U.S. Bankruptcy Court to spend as much as $20 million on marketing, with funds being provided by third-party lenders. Blockbuster, which filed Chapter 11 to deal with about $1 billion in debt, has announced that it will shutter as many as 800 of its more than 3,400 locations around the U.S.

Gottschalks Inc., a Fresno, Ca. department-store operator, asked for permission from the U.S. Bankruptcy Court to hire University Management Associates & Consultants Corp., a unit of Atwell, Curtis & Brooks Ltd., as a collections agent.

Lehman Brothers Holdings Inc.’s bankruptcy proceedings continue to be a windfall for legal firms and other consultants, with fees surging to a total of $1 billion. Among the big winners is Alvarez & Marsal LLC, a big restructuring specialist, which has racked up $369 million in fees since the investment banker filed Chapter 11 two years ago.

Washington Mutual filed a modification to its sixth amended joint Chapter 11 reorganization plan with the U.S. Bankruptcy Court.