Chapter 11

CHICAGO -- Delphi Corp. edged closer to bankruptcy yesterday as neither the United Auto Workers union nor General Motors Corp. appeared willing to bail out the struggling parts supplier, which is seeking drastic cuts in pay and benefits from workers. Reports circulated on Wall Street that a bankruptcy filing could come as early as today. Delphi would not comment, but the reports sent the company's shares down 49 percent yesterday to a new low of $1.12 in New York Stock Exchange trading.

AmeriDebt Inc. founder Andris Pukke has filed for personal bankruptcy protection, a move that could mean there will be less money available to consumers claiming to have been burned by his Maryland-based credit-counseling operation. A bankruptcy filing typically puts an immediate hold on lawsuits against the filer. But the Federal Trade Commission, which has been pursuing Pukke through the courts on behalf of consumers since late 2003, said such a stay doesn't apply to its case. "Congress didn't want bankruptcy to be a safe haven for wrongdoers," said Jeanne M. Crouse, the FTC's lead bankruptcy counsel in the agency's case against AmeriDebt, which was settled this year.

The road to recovery for W.R. Grace & Co. was made tougher by an indictment this week alleging that the company knowingly exposed a Montana town to deadly asbestos for decades and will become tougher yet if the Columbia company takes a hard-line stance, experts said. Grace filed for bankruptcy protection in 2001 to shield itself from more than 100,000 asbestos-related lawsuits, a move necessary for it to emerge as a continuing business. The indictment "makes it a lot more difficult," said Ivan Feinseth, an analyst with Matrix Securities in New York.

GREENBELT - A U.S. Bankruptcy Court judge approved yesterday the transfer of thousands of clients from AmeriDebt to a Houston-based nonprofit, leaving little left of what was one of the largest credit counselors in the country. Judge Paul Mannes approved the sale of Montgomery County-based AmeriDebt's remaining 50,000 to 60,000 accounts to Money Management International. Fewer than 1,000 of those are Marylanders. "MMI is experienced," said Chapter 11 Trustee Mark D. Taylor yesterday while recommending the sale.

The independent bankruptcy trustee overseeing AmeriDebt plans to sell the credit counseling agency's accounts to a Houston nonprofit, preparing the way for liquidating the Maryland agency that once was one of the largest players in the industry. About 60,000 AmeriDebt clients would be transferred to Money Management International if the bankruptcy court approves the sale after a hearing Jan. 24, Chapter 11 trustee Mark D. Taylor said yesterday. Fewer than 1,000 of the clients live in Maryland.

The Annapolis freight logistics company Air Cargo Inc. filed for Chapter 11 bankruptcy reorganization in U.S. District Court in Baltimore yesterday. Anne Arundel County officials said last week that Air Cargo would lay off 60 of its 80 workers as a result of the filing. Air Cargo said Friday that it intended to cease some operations immediately and file for bankruptcy protection this week. The privately held company, created in 1941, primarily is owned by the Carlyle Group, a private equity firm in Washington, and 17 commercial airlines.

Air Cargo Inc., an Annapolis freight logistics company partly owned by the Carlyle Group, said yesterday that it planned to immediately cease some operations and file for Chapter 11 bankruptcy reorganization early next week. Anne Arundel County officials said that 60 of the company's 80 workers are expected to lose their jobs. The privately held company was created in 1941 to move ground freight and provide management services. Today it is partly owned by 17 commercial airlines and has expanded its services to 70 clients, including domestic and international airlines and other companies.

For the fourth time in 14 years, casino companies owned by Donald J. Trump, the businessman turned pop-culture icon, have filed for bankruptcy. This time, Trump Hotels & Casino Resorts Inc. is buried under $1.8 billion in IOUs. But despite the resounding flop, Trump is keeping his title as chairman and chief executive. And the filing won't drastically hurt Trump's personal wealth, which is estimated at $2.6 billion by Forbes magazine, making him America's 74th-richest person. Trump, the tireless self-promoter now seen by millions on the NBC hit show, The Apprentice, said he doesn't see bankruptcy as a stigma or defeat, but as an opportunity to fix the finances of the money-losing company.

Delta Air Lines Inc., the third-largest U.S. carrier, predicted yesterday that its loss would widen to as much as $675 million in the third quarter, pushing the airline closer to a possible bankruptcy filing. Cash reserves were $1.45 billion Sept. 30, the company said in a filing, increasing pressure on the Atlanta airline to agree with pilots on $1 billion in wage and benefit concessions. Delta shares had climbed almost 30 percent this week as the airline and its pilots union discussed an agreement, and fell 79 cents, or nearly 19 percent, to close at $3.42.

People are still eating Hostess Twinkies and Wonder bread, but the problem for Interstate Bakeries is that they are eating less of them. Interstate Bakeries Corp., the nation's largest wholesale baker, said yesterday that it had filed for bankruptcy protection. Many consumers seem to have lost their taste for the company's bread and pastries, many of which have been a staple for more than 70 years. But high expenses were also a factor. Interstate said it had hired a corporate turnaround specialist, Tony Alvarez II, of Alvarez & Marsal - a New York-based consulting firm that has also assisted HealthSouth Corp.