Misery Index: Week of March 27, 2017


Creditors Scramble as Westinghouse Tumbles

Amid all the mayhem of Westinghouse Electric Company LLC filing for chapter 11 protection on March 29 in the U.S. Bankruptcy Court for the Southern District of New York, the SCANA Corp. asked for approval to continue construction on two Westinghouse AP1000 reactors at the V.C. Summer Nuclear Station in Fairfield County, S.C., while both Toshiba Corp. and Goldman Sachs Bank USA offered to participate in the DIP financing, according to court documents.

Chief Transition and Development Officer Lisa J. Donahue signed off on the petition.

At $193,891,735, Westinghouse’s petition discloses that V.C. Summer Nuclear Station’s construction manager Fluor Enterprises Inc is among the creditors owed the most amount of money.

“Fluor will continue to support SCANA, Santee Cooper, and Westinghouse on the VC Summer Nuclear Station project as the parties work through the current situation,” stated David Seaton, chairman and CEO of Fluor in a release.

Santee Cooper is co-owner of V.C. Summer Nuclear Station, and South Carolina Electric & Gas Co. is a subsidiary of SCANA.

“This agreement will provide South Carolina Electric & Gas Co. and Santee Cooper the time necessary to perform due diligence related to cost and schedule,” stated Lonnie Carter, president and CEO of Santee Cooper. “It gives us critical direct access to resources and information that Westinghouse had not provided us to date, which will be important as we plan for the future of the project.”

Read letter from Goldman Sachs Bank USA here

Read declaration of Chief Transition and Development Officer Lisa J. Donahue here.

Bankruptcy Links Miami and Chicago Pittsfield Buildings

With total assets of $2.3 million, Pittsfield Development LLC filed chapter 11 on March 26 in U.S. Bankruptcy Court for the Northern District of Illinois. Liabilities total some $8.7 million with $4.5 million owed to creditor Pittsfield Residential of Miami Beach, Fla. Pittsfield Development’s office is located on the third floor of the historic Pittsfield Building at 55 East Washington Street in Chicago. Manager Robert Danial, a Morgan Reed executive, signed the bankruptcy petition. The Morgan Reed Group was reportedly sued at least twice over the Pittsfield Building, first by Texas developer Adam David Lynd and then by Cambean Hospitality’s Brian Scheinblum of Miami Beach.

Frozen Seafood Company Consolidates Under Chapter 11 Filing

Golden Target Pacific Limited and Nouvelle Food International Ltd. sought chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of New York on Monday, March 27, following in the footsteps of China Fishery Group and Pacific Andes International Holdings Limited. With an unsecured claim of $96 million, HSBC Bank is among Golden Target Pacific Limited’s consolidated list of creditors. The bank reportedly launched an investigation into Pacific Andes International Holdings in 2015. Golden Target Pacific Limited is a member of the Pacific Andes Group, a frozen seafood product company. According to court documents, one of the primary reasons for the bankruptcy is to bring the many creditors of the Pacific Andes Group into a single forum so that its financial difficulties can be resolved and the entire group’s capital structure can be reorganized.

Palm Beach County-Based Family Owned Frozen Drink Enterprise Bails

Steve Schoenberg and his son Dave launched Steve’s Frozen Chillers Inc. some 16 years ago in the garage of their home in Boca Raton, Fla. Just this week, however, on March 27, the slushy and skinny iced coffee company sought chapter 11 protection in U.S. Bankruptcy Court for the Southern District of Florida. At $1.4 million, creditor BFG Investment Holdings LLC of Clearwater, Fla. is owed the most amount of money and has sued for breach of contract in Tampa, according to court documents. Assets total some $744,000. Officers of Steve’s Frozen Chillers include Mr. Schoenberg’s wife, the younger Schoenberg’s mother Susan who is the CFO, and Vice President Brian Schoenberg who is a sibling.

Turnaround Firm Restructures Group of Aerospace Companies

Aerospace Holdings Inc. and five affiliates sought relief for up to $100 million in liabilities in the U.S. Bankruptcy Court for the District of Delaware on Monday March 27. The chapter 11 petition was signed by Matthew Sedigh, chief restructuring officer, who is also a director with the turnaround firm Conway McKenzie in Los Angeles.

“A 363 sale process is scheduled to close in six weeks with Harlow Aerostructures LLC serving as the stalking horse bidder,” Mr. Sedigh told PacerMonitor. “While the thesis for building this portfolio of companies was sound, external factors created a perfect storm of distress but at the end of the day loyal customers and 220 employees will be better off.” Related companies that filed for bankruptcy protection the same day include NC Dynamics Incorporated, Valley Tool & Manufacturing, Inc., GroupAero Seattle, Inc, NCDI Mexico, Inc and NC Dynamics Incorporated.

Latin Music Publisher Buckles After Series of Legal Actions

With assets of $137,355.68 and liabilities of nearly $1 million, Latin American Music Co Inc (LAMCO) sought chapter 11 protection in the United States Bankruptcy Court for the District of Puerto Rico. Luis Raul Bernard, CEO, signed off on the petition.

The music publisher is embroiled in at least four pending lawsuits that involve Spanish Broadcasting System Inc and marketing communications firm J Walter Thompson Puerto Rico. The Archdiocese of San Juan of the Roman Catholic Apostolic Church was named in a previous copy infringement lawsuit that was decided by United States Court of Appeals First Circuit in August 2007.

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  1. Some truly great posts on this web site, thank you for contribution. “For today and its blessings, I owe the world an attitude of gratitude.” by Clarence E. Hodges.

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