Business Bankruptcy News Bulletin Summary for Week of September 13

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. Please visit the insideARM bookstore for information on subscribing to the Bulletin.

A Brief Look at the Examiner In a Bankruptcy Case

The U.S. Bankruptcy Code requires a debtor-in-possession to pay for an examiner, among other professionals, who are approved by the court to assist the creditors, shareholders, and other parties in interest. A compelling reason for appointing an examiner is to facilitate the proceedings that can otherwise cause companies to languish and die while in Chapter 11. The examiner, who can serve as an adviser for the court and the trustee in a case, can also help in reducing the duplication of services in many bankruptcies, thereby reducing administrative expenses.

BANKRUPT COMPANIES

American Consumer Products Corp., Oak Brook, Il., filed Chapter 11 in the U.S. Bankruptcy Court for the Northern District of Illinois. The firm listed assets and liabilities of between $1 million and $10 million each. The filing was under case number 10-39851. For more information contact the court at 866-222-8029, then enter 15.

Circle System Group Inc., Easton, Pa., filed Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware. The firm listed assets of between $10 million and $50 million and liabilities of between $50 million and $100 million. The filing was under case number 10-12796. For more information contact the court at 302-252-2560.

GSC Group, an alternative investment company, filed Chapter 11 and hopes to present a reorganization plan by the end of December. As of last spring the company had $8.4 billion in assets under management, down sharply from a high of $28 billion. GSC, earlier known as Greenwich Street Capital Partners, hopes to sell off all of its assets that have any value.

Queens Plaza Development LLC, Garden City, N.Y., filed Chapter 11 in the U.S. Bankruptcy Court for the Eastern District of New York. The firm listed assets and liabilities of between $10 million and $50 million each. The filing was under case number 10-77035. For more information contact the court at 347-394-1799.

Schutt Sports Inc., a closely-held Litchfield, Il. maker of footballs helmets which was earlier hit by a $29 million verdict in a patent-infringement spat with rival sports-equipment maker Riddell Inc., filed Chapter 11, hoping that the filing will automatically bar Riddell from trying to collect the $29 million. Meanwhile Schutt, which in turn is trying to collect damages related to the litigation from Riddell, is also seeking $34 million in financing from a lending group to continue operating as it decides whether to restructure or to sell off its assets. The filing, in the U.S. Bankruptcy Court in Delaware, listed assets and liabilities of between $50 million an $100 million each. For more information contact the court at 302-252-2560 and refer to case number 10-12795.

Visteon Corp., the Van Buren Township, Mi. auto-parts supplier which recently received confirmation for its Chapter 11 reorganization plan from the U.S. Bankruptcy Court, is reportedly paying off $870 million in bond debt and $1.6 billion in bank loans in cash.