Business Chapter Bankruptcy Case Updates

The business bankruptcy process can be lengthy and undergo many changes. It isn’t nearly as cut and dry and quick as a typical personal Chapter 7 bankruptcy case.

Here are updates on some of the business chapter bankruptcy cases we’ve been following:

Chicago Tribune Bankruptcy

The Tribune Company, owners of the Chicago Tribune, LA Times and WGN, have been given until March to work out the difficulties in their long running reorganization plan or face serious litigation from creditors. A Reuters report says the main sticking point is the role banks played in Sam Zell’s purchase of the company. Unsecured claim, and want to pursue in court, that banks knew his “leveraged buyout” of the business would cause a chapter bankruptcy.

General Growth Properties

General Growth’s recent bankruptcy filing was one of the largest ever. Now, according to Reuters, they are looking to raise public capitol in order to exit bankruptcy. But rival Simon Property made an offer to buy General, the country’s second largest mall operations company. General Growth has rebuked the offer, saying Simon is only trying to play games with the courts and speed up a sale or payout to creditors. General Growth would prefer financing to outright purchase.

Fontainebleau Hotel in Las Vegas

As expected, famed investor Carl Ichan stepped up to take ownership of the troubled and incomplete Fontainebleau Hotel in Las Vegas, Nevada. The former builder has already spent more than $2 billion on the hotel, casino and entertainment complex, but that wasn’t enough to complete and open the resort. When the builder decided to file Chapter 7 bankruptcy, Ichan essentially bought the hotel for pennies on the dollar, paying just over $100 million for the property, Reuters reports.