emergence from bankruptcy

Colorado satellite company DBSD buyout contingent on emergence from bankruptcy

Colorado-based DBSD North America Inc., a small satellite firm, recently filed for bankruptcy protection and satellite television mega giant Dish Network Corp. has announced their intent to purchase the smaller corporation contingent upon their emergence from bankruptcy protection.

DBSD has been developing a complex new system that would combine satellite and terrestrial communication capabilities used for services including wireless voice, data and internet. The new system sparked the interest of Dish Network and led to a $1 billion offer to purchase the company and its new software.

As a part of the deal, Dish Network would provide a term loan of $87.5 million to DBSD as a debtor-in-possession. The deal also includes the interest that has been accruing on the satellite company’s debt. While Dish Network would receive 100 percent of DBSD’s reorganized equity, it would pay their senior notes in full to facilitate recovery for the small corporation’s unsecured creditors.

The Dish Network buyout deal requires approval from the Federal Communications Commission, but those involved are optimistic about the outcome. Dish Network has experienced growth in performance during the recessed economy based upon their new target market of lower-end customers who are in need of the offered low prices. Dish Network’s earnings reportedly tripled in the third quarter despite the subscriber losses that they suffered.

Dish Network’s CEO hopes that the growth will continue after the buyout of DBSD and prior acquisitions by creating a national network to compete with video-over-internet providers.

Source: Wall Street Journal, “Dish Network to Buy Satellite Firm for $1 Billion” Lauren Pollock, 2/2/11

Trump Backs new CEO in Plans to Revitalize Trump Casinos after Bankruptcy

Donald Trump is one of the wealthiest, most famous businessmen in the world. Although his hit television show “The Apprentice” is watched for the business drama, when Donald Trump says, “you’re hired,” it is a serious recommendation. Trump announced his confidence in the new chief executive officer of Trump Entertainment Resorts Inc. “He’s got a great vision for the company. He’s a great manager, he’s a great person and he’ll do a great job,” Trump said of the new CEO.

The new CEO was named as a part of a corporate restructuring program for a number of Trump brand Casinos after emergence from Chapter 11 bankruptcy protection this past July. During the bankruptcy process, the company was able to reduce their debt from $1.7 billion down to $344 million, a value that the company says it can work with.

One of the first actions taken by the new CEO was to terminate the employment of 50 managers and followed in December with 250 more total layoffs. “When you have to let someone go for economic reasons that aren’t tied to job performance, that’s extremely difficult,” the new CEO said when questioned about his decision.

A major part of the post-bankruptcy restructuring plan is to sell the Trump Marina Hotel Casino, the property that drew in the smallest amount of revenue in 2010. Although Donald Trump now owns only 10 percent of the company in exchange for the use of his name, his opinion and recommendation for a manager is taken in high regard.

Source: Press of Atlantic City “New Trump CEO faces the challenge of revitalizing casinos after bankruptcy” Donald Wittkowski 1/3/11

Colorado Based Shane Co.’s Future no Longer Sparkles; It Shines

One of the nation’s largest jewelers has felt the financial struggles shared by so many businesses in the past few years, but Colorado based Shane Co. announced late last week that they would emerge from bankruptcy.

In a prior posting titled Colorado Based Jeweler ShaneCo. Sees a Sparkle in the Company’s Future, we reported that the bankruptcy judge had approved the corporation’s reorganization plan. The plan approved on November 10, 2010 has played a major role in allowing the company to no longer need the Chapter 11 bankruptcy protection that they filed for.

The owner and founder of the company, Tom Shane has been determined from day one to emerge from bankruptcy as quickly as possible without hurting the future of the company or its employees. During the proceedings, Shane refused to lay off employees or cut costs that would affect his consumers.

Although one of the largest creditors of the company was Tom Shane himself, the founder reportedly put his personal money on the line to secure investments and helps pay the corporation’s debts owed to other creditors.

“This is a great day for Shane Co.,” he professed to reporters. “At the beginning of the reorganization, I made a commitment to our vendors, customers and team members that Shane Co. would pay 100 cents of every dollar owed to all, and emerge from the proceedings stronger than ever.”

The reorganization plan created through Shane and his business bankruptcy attorney has seemed to give the company the strong future that the founder had hoped to see.

Source: BankruptcyHome.com “Colorado Jeweler emerges from bankruptcy” Eric Sanderson 12/23/10

Colorado Based Jeweler ShaneCo. Sees a Sparkle in the Company’s Future

ShaneCo., a Colorado based jewelry retailer stated back in January of 2009 that the recession “had a substantial, negative impact on its revenue.” The comment was found in the documents that were filed in a United States bankruptcy court requesting Chapter 11 protection. At the close of 2009, their reported revenue sunk an incredible 23 percent from $276 million the year before to $212 million. After nearly two years, the company finally plans to emerge from bankruptcy protection. The optimistic prediction is based upon approval of a reorganization plan.

United States Bankruptcy Judge Howard Tallman granted the final okay for the plan on November 10, 2007 at a hearing held in the District of Colorado bankruptcy court located in Denver, Colorado. According to the documents filed in association with the approval request, as of January of this year, the company had liabilities totaling $112.6 million and assets in the amount of $98.8 million.

The company continues to be managed by a team that includes father and son. Thomas Shane founded the company and now currently acts as Chief Executive Officer while his son, Rordan Shane, holds the title of Executive Vice President. Thomas Shane reported his confidence through electronic communications that the company would emerge from bankruptcy because “from day one we were vocal with our commitment to repay in full every dollar we owed.”

ShaneCo. is known for their unique diamond selection and personalized sale process and employs a significant number of workers across the nation at their 20 stores located in 13 different cities.

Source: Bloomberg Businessweek “Jewelry Retailer Shane Wins Chapter 11 Plan Approval” Don Jeffrey 11/11/10