The official retirees’ committee of Solutia Inc. has filed a motion opposing the termination of the company’s exclusivity period, saying that creditors will not be harmed by another extension, Bankruptcy Law360 reported on Friday. The motion, which was filed Thursday in the U.S. Bankruptcy Court for the Southern District of New York, is meant to counter motions filed recently by the ad hoc noteholders’ committee and the official equity-holders’ committee seeking termination of Solutia’s exclusivity. Solutia recently asked the court for another 90 days. The retirees argued in their motion filed Thursday that “the equity committee did not identify any party interested in buying any Solutia assets at any price, and did not identify a prospective opening bidder for any Solutia assets.”

Floyd Landis said he’s lost almost $10 million in potential earnings and might need to declare bankruptcy since being accused of using drugs to help win the Tour de France last year, Bloomberg News reported today. Landis, 31, is facing a two-year racing ban and would be the first cyclist in the Tour’s 104-year history to lose his title for doping after testing positive for inappropriate levels of testosterone. His legal defense has cost more than $1 million, about half of which has been paid through donations, Landis said. He also lost more than $3 million from the termination of his contract with the Phonak cycling team, had direct losses of about $2 million in canceled endorsements and another $3 million to $4 million from sponsorships that he was negotiating. All prize money from the Tour de France, including the 600,000-euro ($818,000) winner’s share, has been frozen, he said.

Reaffirming a debt means to go back on the hook for that particular debt.  This is most often seen in the case of the secured creditor being an automobile.  If the debtor wishes to keep an automobile, he or she must enter into a reaffirmation agreement with debt lender.  What this effectively does, is put the debtor and creditor back in the same position that they were in prior to the filing of the bankruptcy.  Thus, the debtor will be responsible for the outstanding debt on that vehicle because they wish to keep that vehicle.  If the debtor falls behind in the future with that vehicle, and the vehicle is repossessed by the creditor, the creditor can seek any auto deficiency amount from the debtor post-bankruptcy filing.  A debtor should be very careful on whether or not he or she reaffirms a debt.  Often times, with a Chapter 7 debtor, the opportunity to surrender the vehicle may be the best option.  It all depends upon whether the debtor can afford or not afford that vehicle once they’ve eliminated all their other miscellaneous debts.
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