Winnipeg Free Press

Winnipeg Free Press (Newspaper) - January 16, 1990, Winnipeg, Manitoba 11 Call for details special rates May apply to seniors rates subject to confirmation certain minimums conditions apply no fees i Wynn Ptg 78m040 Brandon 72mmo Winnipeg free press january 1990 pages 1724 Philip business editor business How companies reorganize under chapter 11 j troubled company files for chapter 11 Protection usually when it can no longer pay its creditors sometimes when it expects future liabilities it cannot Hope to such As product liability damage awards the chapter 11 form the creditors have assent suits of creditors a chosen to Deal with m plan m Wel As debts Are Frozen the company with parties Hammer out j who Are company repayment plan thirds of me major spending must have step can take months or approves the reorganized company emerges it must meet the i terms of the agreed repayment plan otherwise it operates As a Normal company chapter 11 refers to the chapter in the Federal bankruptcy act that provides for court supervised reorganization of debtor secured creditors can ask court for hardship exemption from freeze creditors can ask the court to appoint an examiner to investigate possible fraud or mismanagement 8e court can name a trus Leeto run the company during reorganization Lyons Campeau stalls creditors retail divisions Surprise with bankruptcy Protection bid by Brenda Dalglish the Canadian press Toronto Campeau sidestepped creditors at least temporarily yesterday by having its two retail divisions seek bankruptcy giving them time to grapple with their huge Allied stores and Federated department stores have filed for bankruptcy which under Law will allow them to continue operating their 258 stores normally while renegotiating the terms of their the Surprise move came after creditors agreed to a Campeau re quest on the weekend for a few More Days from an operating we expect this process to have a positive Impact on our business in that it will allow us to operate our department stores in a manner that benefits everyone and that once again allows our retail Divi Sions to concentrate on Selling said a company news Federated and Allied filed for bankruptcy Protection rather than the Parent Cam Peau because the debts at that said Campeau spokesman Carol Campeau now consists of Allied and a California grocery store Chain that is operating As usual and has not filed for bankruptcy pro Campeau the Parent com which now consists primarily of real estate operations in can Ada and the United is also in danger of running out of Campeau itself is in de fault on Loans to two which together Are owed almost they have agreed to give Campeau nine Days notice if they decide to Lay claim to collateral pledged to the Edward Debartolo headed by a Developer who once bid against Campeau for Al lied is owed million us while Olympia and York develop the Reichmann family holding is owed Mil lion us in secured Loans and million us in unsecured said Dick spokesman for the Loans were made to assist Campeau with its takeovers of Al lied and the operations in Canada Are not immediately threatened by bankruptcy but the future is Uncer said i cant categorically say it wont but we dont currently expect that to he it really depends on who which company owes Money and to Campeau is by far the largest portion of the for for the nine months ended department stores and supermarket Chain Rev Enue amounted to while the real estate divisions Rev Enue came to financing deals Wertheim could not give the assets division Between Campeau and the Parent com Pamy Campeau Allied and Federated have also arranged debtor Possession financing that should be sufficient to meet the companies Cash needs for the next Federated has arranged financing of million us from a Syndicate of Banks headed by Citi while Allied has got million us from chemical Campeau Stock fell 30 cents to can on the Toronto Stock sex with shares trading in the shares were trading at More than each but the Price reached a 52week Low of Early in the the chapter 11 bankruptcy Protection filing will be welcomed by Many of the or so suppliers who provide merchandise to the re Tail under chapter 11 suppliers have one of the first Calls on a company who were paid a total of million last had not cashed All their Che Campeau friction ques by the time the chapter 11 filing was made yesterday so they will become Sanger the decision to pay the creditors had been cited As an indication the company was going to be Able to avoid filing for bankruptcy protect but Sanger said it was made to maintain Goodwill with the companies there is a Lon term future for the company in which a retail com Pany must have Vendor relation ships in Sanger you dont maintain Vendor relation ships by not paying the next step is for the bankruptcy court for the Southern District of based in Cincin to hold a hearing in the next few Days to appoint a committee of she Federated will continue with plans to sell the his life and career Robert Campeaux bid to become the biggest retailer in North America ended with a wiper yesterday when Campeau two retail divisions filed for bankruptcy born August Early years built his first House in 1949 in career Campeau construction eventually became the largest real estate Developer in Ottawa and by the 1970s was expanding to in 1980 he failed in an attempt to take Over Royal Trust after Toronto based business interests banded together to fight his in 1986 he decided to expand into retailing by taking Over Allied he eventually paid billion the largest takeover of a company by a he topped that by paying billion us a couple of years later to take Over Federated department personal life divorced his first wife Clauda in 1970 and married his longtime has a difficult relationship with some of his six his adopted son from his first went to court in 1983 to gain control of shares held in Trust for the court turned him Down and there Are reported to be continuing frictions Between him and his quote debt is More than a financial debt can be a vital instrument to help leverage growth and create additional equity value for our without the willingness to take on debt at a i want to that is manageable then we never would have been Able to acquire this portfolio of fantastic companies which now Are part of Campeau Campeau said at the company last annual meeting in 1989 when he criticized naysayers who were saying the company had too much do you need a display i Trade fan Kcf a division of Doc exhibit systems of ticks Vancouver edmoiuoin403 4241519 Winnipeg i204l 9432728 Toronto 416 4o22939 other locations toll i tee lsoo0631737 Viking dividend fund resp 1 year 1iriiij frilling no Ith rain Uffer mujt1 a minium Lull nil fat Pel Fin no Rita inn future e 1 2 i 3 u 5 10 Vav located in the following Eaton stores financial centres open store hours Winnipeg downtown 9884863 Polo Park mall 9883610 Laurentian financial services managed by Laurentian funds management deadline for contributions March 1990 instant tax receipts air Canada plans direct London route by Mary Ann Fitzgerald for the first time in five Winni Eggers will be Able to Fly directly to Lon England when air Canada launches a new service in the twice weekly with a 70minute Stop in will continue for the summer season from june 17 until Winnipeg passengers May stay on the aircraft in Clearing customs in we have already sold Over 100 Ralph air Cana Das Manitoba general said 20 minutes Shorter travel agents were alerted to the new service and it was put in the automated system at the Bouchard said the service could be extended year around if the summer service proves in sure we can do he when you Institute a new there Are always air Canada had abandoned Winni Peg London service about a decade reentering the Market briefly in the summer of 1984 with an unsuccessful ser the new service offers flights leaving Winnipeg on Friday at and sunday at arriving in London at and respectively after a nine hour and 40minute that 20 minutes Shorter than the airlines daily service through to which involves a change of easy connections return flights aboard the 212seat wide body Lockheed 1011500 air Craft with executive and hospitality class will be on Fri Days and they Are Good Days for departure both for business and the Leisure he a special introductory fare will be announced the new service provides easy connections to other International destinations from Bouchard the new service was applauded by Winnipeg business which has been working with civic and provincial government officials to reestablish a direct passenger airline Between Winnipeg and eur we do need a direct Winnipeg chamber of Commerce president Herb Middlestead its a very tiring experience now for a with a Stop in he Middlestead said air Canadas approach of starting with a twice weekly is i quite understand them taking a limited approach he adding he Hopes that eventually the service can be extended beyond the summer weve got to make it Trade and tourism min ister Jim Ernst be reached but he had said a direct flight could make a difference in bringing tourists and business people to officials of the Winnipeg business development be contacted Canadian which abandoned a Vancouver Winnipega Ster dam flight in has no pres ent plans to resurrect direct Winnipeg european spokes Man Dennis Erickson said from de More convenient As beginning april that airline will change its service pro Viding twice weekly flights from Edmonton to London and thrice weekly service from Calgary and daily service from Vancouver to the same flights to Amsterdam will be routed through Toronto with the Start of the summer More than 60 per cent of the passengers flying to Amsterdam connect to other Erickson adding the change designed to provide them with More convenient and direct Middlestead said the next step will be to get another link Between Winnipeg and the United states to replace the Short lived United express service Between Winnipeg and abandoned last were talking to other he refusing to name Winnipeg housing called buyers Market Winnipeg sluggish housing mar Ket continues to offer one of the Best opportunities in Canada for firs time a Roya Lepage National pricing Survey released yesterday in the Stock Market the axiom is buy Low sell Glenn Pono Royal Depages vice pres ident and regional manager of residential real estate said of the stable conditions in the City and across the by most resale hous ing is definitely a buyers with an abundance of Homes listed for Royal Lepage reports prices in nearly 65 per cent of the 48 communities surveyed in Manitoba and Saskatchewan Are the same As they were in october in the Survey says the median Price of a three bedroom Bungalow is currently Down from a year prices for similar bungalows Range from in the Maples to in the median Price for a four bed room executive Home in Winnipeg is now Down from in january House buying activity in Winni Regina and Saskatoon is in Sharp contrast to that experienced elsewhere in the country As almost All major markets reported in creases in Selling for most Cate Gories of Royal Lepage Calgary and Edmonton have seen steady increases for the second year in a Row As resale values Are in the 10 percent while Vancou vers prices Are up 20 per cent or Toronto Market was relatively Flat in but still provided a jump of Between 15 and 25 per Mon trials stable Market saw rises of five per which continues to enjoy the benefits of moderation in its resale housing saw prices up five to 10 per cent last while buying activity is Down slightly in the House prices have remained Royal Depages Cross Canada Survey tracks the estimated Selling Price of seven categories of housing in Over 200 communities from coast to resale housing values quoted rep resent the estimated current Market value of typical Homes and Are com pared to figures reported three months ago and a year housing prices in change in year fort Maples North River Heights thin Chart shows average prices fora single Storey Home with one car full basement with no rec on a Square foot source Royal Lerags Winnipeg free press ;