Chesapeake sold for $485 million, HQ moving to UK

Chesapeake Corp., the Richmond-based paper packaging company, announced today its planned acquisition by New York-based Irving Place Capital Management and Los Angeles-based Oaktree Capital Management has been completed for $485 million.

The company’s headquarters will move from Richmond to Amersham in the United Kingdom.

The company, which began as a pulp mill in West Point, filed for bankruptcy protection on December 30, 2008. According to the Chapter 11 filing, the company had more than $937 million worth of debts.

The acquisition marks the end of the company’s reorganization and as well as its transition from being publicly-traded to being privately-owned.

Jerry Kerins, who has been named chairman and CEO.

Updated May 5 at 8:50 AM

Contractor sues Qimonda over unpaid invoices

Richmond-based ColonialWebb Contractors filed a lawsuit against Qimonda seeking $369,495 in unpaid invoices.

The lawsuit was filed in Henrico County District Court last Monday. Qimonda announced that it was shutting down all operations at its Sandston manufacturing facility the next day. Read more

S&K Menswear files Chapter 11 Bankruptcy

Richmond-based men’s clothier  S&K Famous Brands, Inc has filed for Chapter 11 Bankruptcy Protection in an effort to get out of leases, trim costs, and prevent further erosion of vendor confidence.

The company lists assets of $41,440,100 and debts of $35,499,000 (not including operating leases). There will be a hearing at 2:00 today in Richmond. Read more

Getting stiffed

Hurry up and wait. That’s the only option for local businesses owed money by bankrupt Circuit City and LandAmerica.
More than 1,000 entities are owed money by Circuit City, according to a list of creditors filed with the bankruptcy court in Richmond, and the money from a liquidation sale might not yield enough money to pay them all.

“It’s highly unlikely that unsecured [creditors] will be paid 100 cents on the dollar. It’s hard to tell right now what the percentage will be, but it looks like it won’t be much,” said William Gray, a bankruptcy lawyer with Sands Anderson Marks and Miller who is representing a number of shopping centers and builders with claims against Circuit City. Read more

Will the number of bankrupt Richmonders (and businesses) keep rising?

One Richmond bankruptcy lawyer says personal and business bankruptcy filings are likely going to rise higher in coming months as credit remains tight and the economy sluggish. Read more

Anyone know Embassy Row Properties?

A company called Embassy Row Properties, LLC filed for Chapter 7 Bankruptcy in Richmond. I can’t find any info on them. Do they own any local developments?

A flood of bankruptcies could sink more boats

Spurred by housing sector woes and the ensuing credit crunch, bankruptcies around Richmond are spiking to the highest levels in a decade.

Most filers in the area are individuals who can no longer tap equity in their homes to pay off credit cards. But the enormous rise in bankruptcies is also spilling over to the private sector – a sign that the economy is likely far from recovery.

So far this month, 465 people and businesses have filed for bankruptcy in the Eastern District of Virginia’s Richmond court. And the month isn’t over yet. That number is almost twice the previous high for any month of August since 2000. Around 570 people and businesses filed in July, and 551 filed in June. Read more