CIT May File Bankruptcy

CIT Group plans to file for bankruptcy in New York as soon as Sunday night or early Monday. CIT is poised to enter bankruptcy with enough creditor support to approve its reorganization plan and shorten its stay in Chapter 11. CIT Group and Carl Icahn have reached a tentative deal that could end a recent feud over the lender’s restructuring plan, said people familiar with the matter. CIT has agreed to accept $1 billion in backup financing from Icahn, which it would tap if it needs more than $4.5 billion it recently received from other bondholders. CIT stock was halted on the...

Eddie Bauer Files Chapter 11

Long-time retail staple Eddie Bauer has filed for Chapter 11 after reporting a Q1 loss of $445.5 million. The retail chain, which currently operates 371 stores, filed for bankruptcy protection because suppliers were getting nervous and cash flow was an issue. Eddie Bauer hopes to sell to CCMP Capital Advisors LLC for $202 million. The chain has emerged from bankruptcy before in 2005 after being spun off from former owner Spiegel,...

Active to File for Bankruptcy

Here is the official press release: Active Ride Shop to Reorganize Under Chapter 11 -Active Ride Shop Remains Fully Operational and Open for Business Mira Loma, CA, March 23rd, 2009 – Active Ride Shop today announced that it has filed a voluntary petition for reorganization under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court in Riverside. The company is focusing on executing a comprehensive corporate restructuring plan without interruption to business operations. Active Ride Shop recently announced that it was taking action to address the company’s financial challenges. Alongside the strategic counsel provided by Marc Winthrop, of Winthrop Couchot, one of Southern California’s leading bankruptcy law firms and Stephen Bell, of Phoenix Group Advisory Services, LLC, a professional financial and operational advisory firm, the company has determined that it would be in the best interest of its stakeholders to file for reorganization protection under Chapter 11. Operating under the protection of Chapter 11 will provide the company’s vendors with assurances that they will be paid for merchandise the company receives post-filing so the company can be sufficiently stocked for the spring selling season. The restructuring plan will position Active Ride Shop with a stronger business foundation, an improved multi-channel distribution source for its vendors, and a more meaningful offering for its customers. The company recognizes that, to achieve these objectives, there is a critical need to create a more efficient operation with a reduced cost structure. As previously announced, the company has closed 8 under-performing retail locations. This week, the company took action to realign its corporate support structure alongside the smaller store...