Business Bankruptcy News Bulletin Summary for Week of May 31

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

Mutuality in Contractual and Bankruptcy Contexts

In its contractual sense, “mutuality” means that each party to a contract has received equivalent value according to a promise or bargain. In the context of a bankruptcy filing, the term is used with setoffs and means that a debt which is sought to be set off must have arisen out of the same contract or agreement as the original debt.

BANKRUPT COMPANIES

A.B.C. Learning Centres Ltd., Wilmington, De., filed Chapter 15 in the U.S. Bankruptcy Court for the District of Delaware. The firm listed assets and liabilities of between $100 million and $500 million each. The filing was under case number 10-11711. Also filing was A.B.C. USA Holdings Pty Ltd. under case number 10-11712. For more information contact the court at 302-252-2560.

Crescent Resources LLC, a Charlotte, N.C. development company, is reportedly ready to emerge from Chapter 11 bankruptcy protection, about a year after the company sought protection from creditors. Crescent’s reorganization plan has been approved by the U.S. Bankruptcy Court, with the firm having dumped millions of dollars of debt and strengthened its liquidity. Armed with $150 million in exit financing, the company expects to be out of court protection in June.

Hacienda Gardens LLC, Cupertino, Ca., filed Chapter 11 in the U.S. Bankruptcy Court for the Northern District of California. The firm listed assets and liabilities of between $10 million and $50 million each. The filing was under case number 10-55423. For more information contact the court at 888-457-0604.

McCall’s Holdings LLC, North Fort Myers, Fl., filed Chapter 11 in the U.S. Bankruptcy Court for the Middle District of Florida. The firm listed assets and liabilities of between $10 million and $50 million each. The filing was under case number 10-12528. For more information contact the court at 866-879-1286.

Nortel Networks Corp., the bankrupt maker of telecom gear, could raise up to $1 billion for its technology patents, and one suspected suitor could be Research In Motion Inc., the maker of BlackBerry handheld devices.

Texas Rangers Baseball Partners’ owner, H.G. Sports Group, hopes to sell the baseball team to an investment group led by ex-pitcher Nolan Ryan and Chuck Greenberg. The company is using a prepackaged bankruptcy plan to pay off its creditors so that it can complete the sale for about $575 million.

Washington Mutual Inc. filed an updated reorganization plan that provides the basis of how it will distribute about $7 billion that it expects to collect under its Chapter 11 proceedings. For further information contact the U.S. Bankruptcy Court in Wilmington, De. at 302-252-2560.