Involuntary Bankruptcy

Several creditors of Commerce Corp. filed an involuntary bankruptcy petition against the Maryland-based distributor of lawn and garden supplies. In the petition filed last week, five creditors claim they are owed a combined $1.73 million from the Curtis Bay distributor and want it placed in a Chapter 7 bankruptcy liquidation. The creditors are DeWitt Co. Inc. in Missouri; Franklin Electric Co. Inc. of Indiana; Dramm Corp. of Wisconsin; and Premier Horticulture Inc. and J.R. Peters Inc., both of Pennsylvania.

The company affiliated with developer Patrick Turner that was planning to redevelop the waterfront of the Westport neighborhood in southwest Baltimore has filed for bankruptcy. Inner Harbor West LLC, the subject of a Chapter 7 involuntary bankruptcy petition filed by two creditors earlier this month, has asked a federal judge to convert the case to a Chapter 11 bankruptcy, according to documents filed Tuesday in Maryland's bankruptcy court. If the change is allowed, Inner Harbor West LLC could reorganize with trustee oversight and develop a plan to repay creditors.

A U.S. bankruptcy judge has approved a petition by the owners of the defunct Bibelot Bookstore chain to file for voluntary bankruptcy protection after creditors tried to force the Baltimore couple into involuntary liquidation. Judge James F. Schneider ordered that the Chapter 7 involuntary bankruptcy case involving Brian D. and Elizabeth G. Weese be converted into a Chapter 11 bankruptcy, where debtors and creditors cooperate to resolve outstanding debts. The order Wednesday was issued after a Bankruptcy Court hearing and with the approval of creditors.

Several creditors of Commerce Corp. filed an involuntary bankruptcy petition against the Maryland-based distributor of lawn and garden supplies. In the petition filed last week, five creditors claim they are owed a combined $1.73 million from the Curtis Bay distributor and want it placed in a Chapter 7 bankruptcy liquidation. The creditors are DeWitt Co. Inc. in Missouri; Franklin Electric Co. Inc. of Indiana; Dramm Corp. of Wisconsin; and Premier Horticulture Inc. and J.R. Peters Inc., both of Pennsylvania.

Here is the order of priorities, starting with the first, for (P payment in cases of bankruptcy liquidation:1. Administrative costs such as insurance payments and fees for attorneys, trustees, accountants and auctioneers.2. In case of involuntary bankruptcy, creditors whose claims arise after the filing of involuntary petition but before the court approves the bankruptcy. Normally, unsecured creditors stand in the lowest position (See No. 8). An involuntary bankruptcy can be filed against a business or individual by its creditors.

A Timonium-based orthopedic company has filed suit against Kirschner Medical Corp., alleging it stole international clients and conspired to drive it out of business by forcing it into involuntary bankruptcy proceedings.Osteo Implant Technology Inc. and its subsidiary, Osteo-Technology International Inc., are seeking $17 million in compensatory and punitive damages from Kirschner, also based in Timonium.Representatives of Kirschner Medical were unavailable for comment yesterday.The dispute between the two companies came two years after Osteo-Technology, which makes and sells implants such as knees, hips, shoulders and trauma devices for medical and veterinary use, bought Kirschner's veterinary orthopedic NTC business.

A foreclosure auction of the Summerwoods townhouse development in Owings Mills was canceled yesterday after a group of unsecured contractors and suppliers filed two involuntary bankruptcy petitions in federal bankruptcy court against Manor Builders Inc. and Summerwoods One LLC, the owners of the project.It was a strategic move by 18 contractors and suppliers to stop the auction of the partially completed 64-unit development, according to lead attorney William M. Rudow, who represents Number One Supply Corp.

The court battles swirling around the owner of the Baltimore Orioles intensified late yesterday when seven banks filed in New York to place Eli S. Jacobs into involuntary bankruptcy.The action is not expected to derail negotiations surrounding the sale of the team.Mr. Jacobs has 20 days to respond to the filing, at which time he could contest the action by demonstrating he is paying his debts. But that is regarded as unlikely because creditors have filed numerous lawsuits seeking repayment of overdue loans and personal guarantees.

An article in yesterday's Evening Sun incorrectly described the status of Orioles owner Eli S. Jacobs' case in a New York court. Seven banks filed suit last week in federal court to force him into involuntary bankruptcy. Mr. Jacobs has 20 days to respond to the filing.The Baltimore Sun regrets the errors.If the financial troubles of Eli S. Jacobs are threatening to take any of the oomph out of Opening Day at Camden Yards, it is difficult to tell so far.The game has been a sellout for months.

The court battles swirling around the owner of the Baltimore Orioles intensified late yesterday when seven banks filed in New York to place Eli S. Jacobs into involuntary bankruptcy.The action is not expected to derail negotiations surrounding the sale of the team.Mr. Jacobs has 20 days to respond to the filing, at which time he could contest the action by demonstrating he is paying his debts. But that is regarded as unlikely as creditors have filed numerous lawsuits seeking repayment of overdue loans and personal guarantees.

A U.S. bankruptcy judge has approved a petition by the owners of the defunct Bibelot Bookstore chain to file for voluntary bankruptcy protection after creditors tried to force the Baltimore couple into involuntary liquidation. Judge James F. Schneider ordered that the Chapter 7 involuntary bankruptcy case involving Brian D. and Elizabeth G. Weese be converted into a Chapter 11 bankruptcy, where debtors and creditors cooperate to resolve outstanding debts. The order Wednesday was issued after a Bankruptcy Court hearing and with the approval of creditors.

A foreclosure auction of the Summerwoods townhouse development in Owings Mills was canceled yesterday after a group of unsecured contractors and suppliers filed two involuntary bankruptcy petitions in federal bankruptcy court against Manor Builders Inc. and Summerwoods One LLC, the owners of the project.It was a strategic move by 18 contractors and suppliers to stop the auction of the partially completed 64-unit development, according to lead attorney William M. Rudow, who represents Number One Supply Corp.

A Timonium-based orthopedic company has filed suit against Kirschner Medical Corp., alleging it stole international clients and conspired to drive it out of business by forcing it into involuntary bankruptcy proceedings.Osteo Implant Technology Inc. and its subsidiary, Osteo-Technology International Inc., are seeking $17 million in compensatory and punitive damages from Kirschner, also based in Timonium.Representatives of Kirschner Medical were unavailable for comment yesterday.The dispute between the two companies came two years after Osteo-Technology, which makes and sells implants such as knees, hips, shoulders and trauma devices for medical and veterinary use, bought Kirschner's veterinary orthopedic NTC business.

An article in yesterday's Evening Sun incorrectly described the status of Orioles owner Eli S. Jacobs' case in a New York court. Seven banks filed suit last week in federal court to force him into involuntary bankruptcy. Mr. Jacobs has 20 days to respond to the filing.The Baltimore Sun regrets the errors.If the financial troubles of Eli S. Jacobs are threatening to take any of the oomph out of Opening Day at Camden Yards, it is difficult to tell so far.The game has been a sellout for months.

The court battles swirling around the owner of the Baltimore Orioles intensified late yesterday when seven banks filed in New York to place Eli S. Jacobs into involuntary bankruptcy.The action is not expected to derail negotiations surrounding the sale of the team.Mr. Jacobs has 20 days to respond to the filing, at which time he could contest the action by demonstrating he is paying his debts. But that is regarded as unlikely because creditors have filed numerous lawsuits seeking repayment of overdue loans and personal guarantees.

The court battles swirling around the owner of the Baltimore Orioles intensified late yesterday when seven banks filed in New York to place Eli S. Jacobs into involuntary bankruptcy.The action is not expected to derail negotiations surrounding the sale of the team.Mr. Jacobs has 20 days to respond to the filing, at which time he could contest the action by demonstrating he is paying his debts. But that is regarded as unlikely as creditors have filed numerous lawsuits seeking repayment of overdue loans and personal guarantees.

Lawrence R. Rachuba ran his in-laws' business for years, building a real estate empire. But, when the real estate market fell into a slump, Rachuba's own projects began to crumble. Now the family trust he operated is trying to distance itself from his financial troubles.The DeChiaro Limited Partnership is a trust that was created to benefit Rachuba's wife, Diane, her sisters Carol Scheffenacker and Roberta Hucek, and the grandchildren of Ralph and Dorothy DeChiaro. Lawrence Rachuba resigned as general partner of DeChiaro last spring.

Zale Corp., the nation's largest retail jeweler, became the first major casualty of an unhappy holiday shopping season as it announced yesterday that it would close about 400 of its 2,000 stores and freeze payments on its debts.The highly leveraged Dallas-based company operates about 20 stores in the Baltimore area, trading under the names Zale's, Gordon's and Bailey, Banks & Biddle. A spokeswoman for the company, which has $1.2 billion in annual sales and debts totaling about $850 million, said last night that she could not say which stores would be closed.