Court takes control of Northview Corp. away from developer.Court takes control of Northview Corp. away from developer Control over bankrupt Northview Corp., parent company of the 38-hotel Vagabond VAGABOND. One who wanders about idly, who has no certain dwelling. The ordinances of the French define a vagabond almost in the same terms. Dalloz, Dict. Vagabondage. See Vattel, liv. 1, Sec. 219, n. chain, has passed from financially troubled real estate developer Uri Sheinbaum to a creditors committee led by thrift Coast Federal and insurer First Executive Corp., according to documents filed in U.S. Bankruptcy Court bankruptcy court n. the specialized Federal court in which bankruptcy matters under the Federal Bankruptcy Act are conducted. There are several bankruptcy courts in each state, and each one's territory covers several counties. in Los Angeles. Sheinbaum's Northview declared Chapter 11 in March 1990, unable to make lease payments on some hotels and interest payments on $100 million worth of junk bonds, the latter underwritten by defunct investment banker Investment Banker A person representing a financial institution that is in the business of raising capital for corporations and municipalities. Notes: An investment banker may not accept deposits or make commercial loans. Drexel Burnham Lambert Drexel Burnham Lambert was a major Wall Street investment banking firm, which first rose to prominence and then was driven into bankruptcy in the 1980s by its involvement in illegal activities in the junk bond market, driven by Drexel employee Michael Milken. Inc. Sheinbaum is chairman of the Westside-based Calmark Holding Corp., of which Northview is a subsidiary. In addition to owning the Vagabond chain, Calmark has been involved in real estate development and senior housing projects. In bankruptcy court, creditors often appoint committees and hire legal counsel to represent their interests, and to that end Northview creditors have retained Michael Lurey of Latham & Watkins, the downtown Los Angeles-based law firm. In a court-approved deal, Sheinbaum will continue to own Northview, but voting rights Voting rights The right to vote on matters that are put to a vote of security holders. For example the right to vote for directors. voting rights The type of voting and the amount of control held by the owners of a class of stock. of Northview stock will be transferred to the creditors committee, according to Lurey. "Northview will continue to owned by (Sheinbaum), but all of the Northview stock is surrendered for voting purposes to the creditors committee," said Lurey. In the longer run, creditors may seek to form a joint venture with a new partner and put fresh money into the Vagabond chain, said Lurey. A plan will be presented to U.S. Bankruptcy Court Judge Geraldine Mund by April 5. Sheinbaum's lawyer, Theodore Stolman of Los Angeles-based Stutman, Treister & Glatt Glatt may refer to:
Respectively, a person who owes a debt and a person to whom the debt is owed. Usually the debtor has received something from the creditor, in return for which the debtor has promised to make repayment at a later time. interests. John Scott, chief financial officer for Calmark, said that as part of the deal Northview will assume about $8 million in Calmark debt obligations, and forego about $18 million in net receivables. "It is a good deal for both debtor and creditors," he said. |
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