Latest Bankruptcy News

 
 

General Crane Report shows Increasing Payments to Affiliates, Decreasing Payroll

July 1, 2010

General Crane’s Monthly Operating Report for May was filed in Bankruptcy Court on June 28, 2010. According to the report, General Crane ended the month of May with a cash balance of $248,825.

There are some notable changes in expenses from April to May. Payroll expenses decreased significantly from $770,790 to $659,099. In the same month General Crane further reduced its workforce from 109 employees to 107. This situation is similar to February when – as previously reported on Cranewatchdog.com dated February 19th – General Crane decreased pay for its employees (resulting in a drop in payroll expense). Also, in April General Crane entered into an employee leasing agreement with FrankCrum by mandating that its employees sign a contract with the “outsourced human resource management services” company – see Cranewatchdog.com update dated April 15.

Rent payments, missing in the April Operating Report, reappeared in May, all made out to related parties. General Crane cut a check for $12,500 to Republic Enterprises, LLC, a company co-owned by Jim Robertson and Jason Retterath.

CraneWatchdog.com previously reported that Republic had defaulted on the mortgage payments for one of its properties – the General Crane yard in Fairburn, Georgia – which was subsequently sold at auction on May 1, 2010. Republic still owns the General Crane yard in Houston, Texas as well as a set of mobile home lots adjacent to General’s Pompano Beach, Florida headquarters.

The operating report also reveals that General Crane wrote two checks to Steve Retterath: one on May 14 for $12,500 and another on May 25 for $33,000. Court documents reveal that General Crane pays Steve Retterath, owner of General’s headquarters property, $33,000 per month in rent. However, on May 10, 2010 Steve Retterath filed a motion in Bankruptcy Court seeking unpaid rent from January 2010 to the day of the filing.

 

General Crane Outlines Liquidation,
Reorganization Plans

June 14, 2010

General Crane revealed plans to liquidate and surrender assets, and to refinance loans at a bankruptcy hearing June 10, 2010. According to a hearing transcript and eyewitness reports by Crane Watchdog personnel attending the hearing, General Crane will submit a formal plan to the court by July 8, 2010.

The hearing confirms information first reported here on April 29, 2010 - Prophet Equity (misspelled in the transcript) is the “equity sponsor” of a plan to purchase the assets of General Crane and to refinance loans with the main creditors.

The 33-page transcript reveals the following:

• General Crane will liquidate the assets secured by its top three creditors, Bank Midwest, Wells Fargo and SL Financial. These assets will be sold to a Prophet Equity sponsored entity, Newco, which has reached agreement with the top three creditors for refinancing General Crane’s debt in return for “cash down payment(s ) upwards of one-third;"
• Other secured creditors will have the option of repossessing equipment or entering into a separate refinancing deal;
• Center Capital Corporation “hit the end of their rope” waiting for General Crane to complete an equipment inventory which was “useless” according to Center Capital’s attorney. Among the creditors attending the hearing, Center Capital and the Committee of Unsecured Creditors appeared least supportive of the debtor’s plans, but neither raised any major objection.

Observers at the bankruptcy hearing agree with sources close to General Crane that the company appears likely to dissolve, or, if General Crane continues to function, it would be a shell of its former self. Once a booming company that as recently as 2006 bought 60 tower cranes as Jim Robertson claimed “Some people might say the economy’s going in the other direction, but we feel it’s time for us to grow, time to expand,” General Crane is now forced into liquidating and surrendering much of those assets.

Sources further predict that the principals of General Crane, Jason Retterath and Jim Robertson, will likely go their separate ways after the bankruptcy case is concluded. While any predictions about their future plans are pure speculation at this point, Crane Watchdog will continue to report on General Crane and its subsidiaries, as well as their customers and financiers, regardless of what form those crane rental companies take in the future as long as they continue refusing to meet area standards for wages and benefits.

 

Bank Midwest Moves against
General Crane in Bankruptcy Court

June 7, 2010

General Crane USA’s largest lender, Bank Midwest, is the latest creditor to move against the company in bankruptcy court.

Last Monday, Bank Midwest, based in Kansas City, Missouri, filed a court motion seeking to terminate the automatic stay protecting Gulfstream Crane, LLC (aka General Crane USA) from creditor repossessions.

According to the filing General Crane owes Bank Midwest nearly $26.2 million.

This move may signal a more aggressive approach to Bank Midwest’s strategy in General Crane’s Chapter 11 proceedings.

In past court filings the Kansas City-based bank asserted that it retained “a continuing first priority security interest and lien in any and all personal property of the Debtor [General Crane].” However, while at least seven other secured creditors appealed to the court to repossess equipment or receive adequate protection payments, Bank Midwest, until Monday, declined to take similar action. In fact, Bank Midwest on at least two occasions sided with General in opposing other creditor attempts to obtain relief from the bankruptcy stay.

Now, Bank Midwest has petitioned the court “to exercise its rights and remedies under applicable nonbankruptcy law as to the Collateral.” Alternatively, the bank “seeks an award of adequate protection for the use and depreciation of the Collateral.”

Regarding the collateral that Bank Midwest claims as interest, the bank’s filing includes an exhibit with an 8-page listing of equipment (with serial or VIN numbers), including truck cranes, tower cranes, personnel hoists, flatbeds, and other vehicles (see exhibit A2 below).

The exhibits also includes a “Guaranty Agreement,” dated May 19, 2006, where General Crane USA owners James Robertson and Jason Retterath signed as “Guarantors” for the $31 million loan between Bank Midwest and General.

Currently, at least two General Crane creditors (Wells Fargo and PNC Bank) are suing Mr. Robertson and Mr. Retterath personally because the owners allegedly signed guaranty agreements for defaulted loans.

Click below to download the exhibits for Monday’s Bank Midwest filing.

Exhibit A

Exhibit A(2)

Exhibit B

Exhibit C

Exhibit D

Exhibit E

Exhibit F

Exhibit G

General Crane Reports
Second Straight Monthly Operating Loss

May 28, 2010

For the second consecutive month General Crane USA posted losses in its monthly operating report. The April report, required for General Crane’s Chapter 11 bankruptcy proceedings, disclosed that the company lost $86,168 for the month (-6.4% against receipts).

Several statements in the Gulfstream Crane, LLC (aka General Crane) operating report indicate that the company was running negative cash balances in at least one key account. Attachment 4B (p. 23) in the report, which covers the company payroll account, showed an ending balance of –$3,151.

The report requires an explanation for a negative closing balance. In a hand-written note, General Crane stated: “Outstanding checks to be cancelled.”

Payroll was one of the major expense increases for the month of April. Reports from previous months had shown the company cutting back payroll costs from $722K in December down to $636K for March. However, in April payroll jumped to $770,790.

April was also the first month that General Crane transferred certain payroll duties over to FrankCrum, an employee leasing firm based in Clearwater, Florida. In a transactions spreadsheet attached to the operating report (p. 27), the company discloses at least three checks paid to FrankCrum relating to “payroll transfer” totaling $381,981.66.

While payroll jumped 21% between March and April the company continued to trim back its workforce, losing five additional employees during the month. As of April 30, General Crane had 109 total employees.

Among other notable payments in April, General Crane wrote a $100,000 check to its bankruptcy law firm Hinshaw & Culbertson, LLP for “professional services.” General also paid $18,826.23 to Dovebid Valuation Consultants for the “inventory audit.”

Read more on General Crane’s operating reports at the company’s Bankruptcy Page. Also, click HERE to learn more about the company’s new arrangement with FrankCrum.

 

Steven Retterath Seeks Unpaid Rent
from General Crane

May 11, 2010

Steven Retterath filed a motion yesterday in General Crane USA’s bankruptcy case petitioning the court for rent payments totaling $152,500.

According to the filing Mr. Retterath owns the Gulfstream Crane, LLC (aka General Crane USA) headquarters property in Pompano Beach, Florida. Broward County, Florida property records also confirm Mr. Retterath’s ownership claim.

Attached to the motion is the lease agreement between Gulfstream Crane and Mr. Retterath, which commenced December 20, 2002 and expires on December 19, 2012.

Mr. Retterath asserts that pursuant to the lease Gulfstream Crane must pay him $33,000 per month in rent. He further claims that Gulfstream is in default of the agreement, having “failed to pay rent in full from the period of January 2010 to the present.” During the time period Mr. Retterath allegedly received only one payment for $12,500.

General Crane’s March Operating Report showed that the company wrote a $12,500 check to Mr. Retterath on March 26, 2010. A day earlier, General paid $12,500 to Republic Enterprises, LLC, a property-holding company controlled by Jim Robertson and Jason Retterath. Republic owns the General Crane branch yards in Houston, Texas and Fairburn, Georgia.

In January CraneWatchdog.com reported that General Crane USA in its final week before declaring bankruptcy wrote a series of checks for nearly $200,000 to Republic Enterprises and Steven Retterath. These payments were more than double the amount of all other checks the company issued during that last week.

It is not clear at this time whether Mr. Retterath’s payment demand is related to General Crane’s earlier motion to delay its decision on whether to assume or reject its crane yard property leases. Also unclear is whether fines levied by the City of Pompano Beach against Mr. Retterath for property code violations at the General Crane HQ yard factored into his action in bankruptcy court.

As previously documented on this site, Steven Retterath’s lease deal with General Crane USA is not his only business tie to the company and its owners. In late 2002 Mr. Retterath sold General Crane to his son, Jason, and Jim Robertson. He also remains a co-owner with Jason Retterath and Mr. Robertson in several other crane companies, including Royal Crane, LLC (aka Hunter Crane), Palm Beach Trucking, LLC (aka Merchant Transport), and Republic Tower & Hoist, LLC. In fact, Steven Retterath is a co-defendant alongside Jason Retterath and Jim Robertson in at least three pending lawsuits where creditors – Wells Fargo, De Lage Landen, and Comerica Leasing – are alleging breach of contract on defaulted loans.

A court hearing to discuss Mr. Retterath’s motion is set for May 25 at the U.S. Bankruptcy Court in Fort Lauderdale.

 

General Crane Opposes
SL’s Motion for Adequate Protection

April 27, 2010

Last Friday Gulfstream Crane, LLC (General Crane) filed an objection to creditor SL Financial Services Corp.’s motion for adequate protection.

In SL Financial’s original motion, filed two weeks ago, the creditor asserted that a “substantial portion” of General Crane’s revenue is being generated through use of SL’s collateral – 14 Liebherr cranes. Use of the equipment, the creditor argued, accelerates depreciation and devaluation. Yet, General “has provided no payments to SL Financial on account of its secured claim.”

SL Financial acknowledged that General has set aside $100,000 in escrow for adequate protection payments to its creditors. However, the money, they allege, is insufficient. Indeed, SL claims that even if the entire escrow reserve was used entirely for them, it still would not adequately protect the equipment. In SL Financial’s pre-bankruptcy lawsuit against General Crane, filings revealed that General was obligated to make nearly a half-million dollars in monthly payments to SL.

General Crane’s response to SL’s motion alleges that “only a portion of the SL collateral is being used on jobs and possibly subject to depreciation from use.” Furthermore, General notes that a different creditor, namely Bank Midwest, “may claim a first priority lien in SL Financial’s collateral.” As a result, “a question exists as to whether SL Financial is the appropriate party entitled to adequate protection, if any.”

General’s motion also reveals that the equipment audit conducted by GoIndustry Dovebid has been completed. The various creditors, according to General Crane, are “now in a position to attempt to resolve any lien priority disputes,” including the dispute between SL and Bank Midwest. General asserts that prior to resolving these disputes “it is extraordinarily difficult to pay adequate protection.”

A hearing in bankruptcy court, slated to last ten minutes, is scheduled for April 27, 2010 to debate SL Financial’s motion and General Crane’s subsequent response. General Crane’s representatives suspect, however, that “an evidentiary hearing will be required to determine the sufficiency of adequate protection, provided that any and all lien priority disputes are likewise resolved.”

CraneWatchdog.com will continue to inform readers on the latest developments in General Crane USA’s dispute with SL Financial Services.

 

SL Financial Demands Adequate Protection
from General Crane

April 13, 2010

General Crane USA creditor SL Financial Services Corp. wants more money to protect its collateral, according to a recent bankruptcy court filing.

SL Financial, a subsidiary of the German bank LBBW, financed at least fourteen (14) Liebherr crawler and all terrain cranes for Gulfstream Crane, LLC (aka General Crane USA). The financer asserts that General Crane remains in possession of its collateral and that a “substantial portion” of General’s revenue is generated through use of SL collateral. (see below for a list of the SL collateral)

Because SL Financial’s collateral rapidly depreciates while in use, the firm is insistent that its equipment collateral is not adequately protected. The current protections, in the form of liens against the Liebherr cranes, are “insufficient,” according to SL, as is the $100,000 General Crane has set aside to fund adequate protection payments.

The court filing states that General Crane “has provided no payments to SL Financial on account of its secured claim.” SL continues, claiming:

Furthermore, even if the entire Adequate Protection Reserve was utilized only for SL Financial, such payment would be insufficient adequate protection of the interests in the SL Collateral.

As such, SL Financial is requesting that the judge enter an order required General to provide “adequate protection of its interests in the SL Collateral.”

In November 2009 SL Financial Services filed suit against General Crane USA in Broward County, Florida Court, alleging a breach of contract and seeking to repossess its Liebherr cranes. In SL’s complaint against General, the financer attached the loan details, including the total loan cost, the interest rate, and the monthly payments, for each of the fourteen (14) Liebherr cranes.

Based the attached documents, General Crane was required to make loan payments to SL Financial for over $490,000 per month. (See the chart below.)

As noted above, General Crane has been ordered to place $100,000 in an escrow account for adequate protection payments to cover all of its creditors.

However, the $100,000 would only cover roughly one-fifth of its loan obligations to SL Financial alone. And this does not account for all other secured creditors that are collectively holding an additional $50 million-plus of General Crane’s debt.

Collateral	S/N	Financed Cost of Equipment	Commence Date	Interest Rate	Monthly Payment	Number of Installments
2007 Liebherr All Terrain Crane 1160-5.1	067241	$1,136,000.00	1/25/2007	6.75%	$22,360.41	60
2007 Liebherr Crawler LR 1160	134.091	$1,375,000.00	1/25/2007	6.75%	$27,064.76	60
2007 Liebherr Crawler LR 1160	134.094	$1,457,500.00	1/25/2007	6.95%	$28,825.88	60
2007 Liebherr All Terrain Crane LTM 1100-5.2	065645	$906,000.00	3/1/2007	6.95%	$17,918.52	60
2007 Liebherr Crawler LR 1160	134.093	$1,457,500.00	3/26/2007	6.95%	$28,825.88	60
2007 Liebherr All Terrain Crane 1160-5.1	067258	$1,150,000.00	5/4/2007	6.95%	$22,744.26	60
2007 Liebherr Crawler LR 1300	138.005	$2,650,000.00	7/26/2007	7.15%	$40,190.20	84
2007 Liebherr Crane LTR 1250-6.1	070745	$1,927,000.00	9/5/2007	6.75%	$28,848.66	84
2007 Liebherr Crawler LR 1280	136.095	$2,862,000.00	11/6/2007	6.75%	$42,846.33	84
2007 Liebherr All Terrain Crane LTM 1400	072083	$2,700,000.00	12/3/2007	6.37%	$39,923.76	84
2007 Liebherr Crane Carrier LTM 1500-8.1	073170	$3,483,000.00	12/10/2007	6.37%	$51,501.66	84
2008 Liebherr Crawler Crane LR 1400/2	074343	$5,196,814.43	8/19/2008	6.93%	$78,243.46	84
2008 Liebherr Crawler Crane LR 1280	136.118	$2,227,500.00	9/29/2008	6.678%	$33,269.41	84
2008 Liebherr Crawler Crane LR 1280	136.122	$1,845,000.00	10/7/2008	6.678%	$27,556.48	84

Details on Bank Midwest Claim
against General Crane

April 7, 2010

General Crane’s largest creditor, Bank Midwest, N.A., waited until the final day, April 5, to submit its bankruptcy claim. To date, creditors have filed over $132 million in claims against Gulfstream Crane, LLC (aka General Crane USA).

The Kansas City-based bank actually filed two separate claims against General Crane USA on Monday. The first claim for roughly $25.7 million covers two loan agreements from 2006 between Bank Midwest and General. As security interest, Bank Midwest effectively claims all assets of General Crane as collateral.

General Crane Guarantees Loan to Republic Enterprises

Later that day, Bank Midwest filed a second bankruptcy claim against General for $484,024.65. This claim, however, does not cover money loaned directly to Gulfstream/General Crane. Instead, it covers a Bank Midwest loan to Republic Enterprises, LLC, a company co-owned by General Crane owners Jason Retterath and James Robertson.

On June 4, 2009 Bank Midwest issued a promissory note to Republic Enterprises for $1 million. Concurrently, the parties filed a “commercial guaranty” (page 6 of the claim) in which Gulfstream Crane, LLC “unconditionally guaranteed” payment of the loan.

According to the original promissory note, the loan was set to mature on December 31, 2009. However, at the time of General Crane’s bankruptcy petition (Dec. 8) nearly half a million dollars of the loan balance remained outstanding. As such, Bank Midwest’s claim holds General Crane accountable for the remaining payments.

In General Crane’s financial schedules the company notes its $25 million debt to Bank Midwest for its 2006 loan. It appears, though, that the company did not disclose its $484K guarantee for the Republic Enterprises loan from Bank Midwest.

Republic Enterprises Properties

Republic Enterprises, LLC owns properties in at least three states. In February 2007 the company paid nearly $10.7 million to acquire a number of parcels comprising the Parkridge mobile home lot, which is adjacent to the General Crane USA headquarters in Pompano Beach, Florida. Republic took out a $9 million mortgage to finance the acquisition.

Later that year, Republic Enterprises bought a crane yard for General Crane in Fairburn, Georgia for $2.2 million, taking out a $1.936 million mortgage.

Finally, in August 2009, two months before its $1 million loan from Bank Midwest, Republic acquired another crane yard at 4000 Oates Rd. in Houston, Texas. While Republic did not disclose the purchase price, the company did take out a $1.6 million mortgage loan from Allegiance Bank Texas.

Other Claims Filed against General Crane

In other bankruptcy news, General Crane’s second-largest creditor, SL Financial Services Corp. also waited until the final day to submit its own bankruptcy claim. The claim is for nearly $25.5 million and cites 14 Liebherr cranes as collateral. In November, prior to the bankruptcy, SL Financial filed suit against General Crane for allegedly defaulting on its loan obligations.

The Texas Comptroller of Public Accounts, the state tax department, filed a claim on April 5 as well. The Comptroller claim is for over $51,000 in unpaid taxes plus nearly $5,000 more in penalties. According to the Comptroller’s website, Gulfstream Crane, LLC is “Not in Good Standing” in the state of Texas because it “has not satisfied all franchise tax requirements.”

General Crane Objects to
Wells Fargo’s Move to Repo

April 7, 2010

Yesterday General Crane USA filed an objection in bankruptcy court to creditor Wells Fargo Equipment Finance’s motion to repossess over 20 cranes.

The Gulfstream Crane, LLC (aka General Crane USA) filing notes that Wells Fargo holds liens against a variety of cranes and other equipment, including “rough terrain cranes, crawler cranes, tower cranes, mobile cranes, boom trucks, and trailers.”

Among the Wells Fargo collateral, General Crane claims that “it is believed that twelve (12) assets are currently on a job—three (3) on long-term projects and nine (9) on short-term rentals.”

Certain pieces of equipment, the company states, are being utilized on the Dallas Convention Center project. Twelve days ago CraneWatchdog.com reported that at least two of General’s Wells Fargo-financed cranes were operating on the site – a Comedil luffing boom crane and a Liebherr LR 1100 crawler crane.

General Crane, arguing against a Wells Fargo repo, asserts that the working collateral is “thus necessary for an effective reorganization inasmuch as it is being utilized to generate revenue necessary for the Debtor’s reorganization efforts.” The filing notes that General “has set aside $100,000.00 for adequate protection of its lenders, including Wells Fargo” in its budget. Although the ultimate protection payments are dependent on “ascertaining the lender whose collateral is generating revenues.”

An additional argument General submits is that it “intends to retain some of Wells Fargo collateral for continuing operations in its efforts to reorganize, and this property is necessary for an effective reorganization.” General cites approximately 20 of the Wells Fargo assets that it plans to retain.

Lastly, General Crane notes that a portion of the Wells Fargo collateral includes tower cranes. General’s court filing rehashes the issue “with respect to identifying the tower components because those components do not contain serial numbers.” As a result, there are “issues regarding priority and identification” of certain parts.

General notes that it has retained the firm GoIndustry DoveBid to conduct a comprehensive audit of the company’s equipment in order to address these outstanding issues. General further states that “upon information and belief, Dovebid has completed the audit, except for property sequestered by the Texas state court, and is in the process of completing its written report.” General concludes its argument stating: “Until the audit is complete […] documented, and reviewed by all affected parties, it would be premature to grant stay relief to Wells Fargo and may be detrimental to the other lenders.”

A court hearing is not yet set to address the Wells Fargo’s and General Crane’s claims. You can track Wells Fargo’s actions in the General Crane Chapter 11 by visiting CraneWatchdog.com’s Bankruptcy News page.

 

New Twist in General Crane Bankruptcy

April 6, 2010

A personal loan taken out by General Crane USA owners Jason Retterath and James Robertson appears to have been recently modified and extended, based on newly released public documents.

The original loan was provided by General Electric Capital Corporation, according to a Florida Uniform Commercial Code (UCC) filing dated June 15, 2005. Mr. Retterath and Mr. Robertson are each cited individually as debtors, with GE Capital as the secured party. The UCC filing, originally set to expire in June 2010, does not disclose the loan amount GE Capital provided to the Gulfstream Crane owners or the required monthly payments for the loan.

The 2005 UCC document, however, does reveal that Mr. Retterath and Mr. Robertson pledged as collateral to GE Capital their entire ownership stake in Gulfstream Crane, LLC (aka General Crane USA). As a result, the financer has a security interest in General Crane’s “profits, income, surplus, compensation, return of capital, distributions and other reimbursements,” as well as equity interest and voting and management rights.

As documented on this site, during the last two years General Crane USA experienced financial troubles culminating in its December 2009 Chapter 11 petition. Between 2008 and 2009 the company’s revenue dropped by over 30%. The company owners have also reported a dramatic drop in pay. In early 2009 Mr. Retterath and Mr. Robertson were each drawing monthly salaries of over $46,000. A recent bankruptcy document revealed the owners’ respective monthly salaries are currently $19,885.

As noted above, the UCC filing documenting the GE Capital financing to Mr. Retterath and Mr. Robertson was set to expire in June 2010.

However, On March 18 of this year GE Capital filed a Continuation for the loan, extending the expiration date to June 16, 2015. The continuation indicates a modification and extension of the existing loan. Public records do not detail the terms and conditions of any changes to the loan agreement between GE Capital and Mr. Retterath and Mr. Robertson.

Prior to its 2005 loan to the General Crane owners, GE Capital had provided at least $15,000,000 in financing to Gulfstream Crane, LLC in December 2002. A UCC filing, dated January 23, 2003, documents the loan. The filing reveals that GE Capital claimed as collateral “all of [Gulfstream’s] property and assets.” Mr. Retterath and Mr. Robertson (50/50 owners in Gulfstream) used the GE Capital loan to acquire General Crane, Inc. from Steven Retterath (Jason’s father). Indeed, James Robertson reveals in a court deposition that he became an owner of Gulfstream/General Crane on December 21, 2002.

UCC records indicate that the December 2002 GE Capital loan to Gulfstream has been terminated. In 2006 a Kansas City-based financer, Midwest, N.A., provided General Crane with a $30-plus million loan (over $25 million was still outstanding at the time of General Crane bankruptcy). In the corresponding 2006 UCC filing Bank Midwest now claims the blanket security interest of “all assets” of Gulfstream/General Crane as collateral.

Follow General Crane’s bankruptcy at CraneWatchdog.com’s Bankruptcy Page.

General Crane Needs More Time to File Reorganization Plan

April 5, 2010

Gulfstream Crane, LLC (aka General Crane USA) requires more time to file a reorganization plan, according to a recent filing. The court deadline to file is April 7. General Crane seeks a 90 day extension to formulate its plan.

General Crane’s filing notes that the company’s bankruptcy case has been pending for only four months, and that “in order to formulate an exit strategy, the Debtor requires additional time in which to evaluate present performance and prepare projections while under the protections of Chapter 11.” The filing also cites the ongoing issue of non-serialized collateral that needs to be sorted and catalogued. General Crane has retained GoIndustry DoveBid to conduct an audit of its property.

Based on previous company statements, General Crane’s bankruptcy process is falling behind schedule.

On December 23, 2009 General Crane issued a press release regarding its bankruptcy/reorganization, stating: “The process is expected to be concluded by early 2010 and all of their lenders are both cooperative and supportive.” [Our emphasis]

However, according to its latest court filing General Crane may not even file its reorganization plan until July 2010. Then following its presumed filing of a reorganization plan the company has 60 additional days to “solicit acceptances” – ie, win creditor approval – for the plan. This would move the case to the fall 2010. After that, the bankruptcy judge must grant a final approval on any reorganization plan.

In cases where the Chapter 11 company fails to either submit a reorganization plan or creditor’s fail to consent to the company plan, a creditor can step in to submit a plan of its own. In some instances multiple reorganization plans are proposed for a Chapter 11 bankruptcy.

For the latest news and analysis on General Crane’s bankruptcy go to CraneWatchdog.com’s Bankruptcy Page.

New Claims in General Crane Bankruptcy

April 1, 2010

In recent days multiple Gulfstream Crane, LLC (aka General Crane USA) creditors have filed claims in the company’s ongoing Chapter 11 bankruptcy case. Below are several cases.

Injured employee, family file $40 million in claims against General

On Monday, a former General Crane USA employee along with his family members filed three separate claims in bankruptcy court totaling $40 million.

The employee was involved in a workplace accident in August 2004 during which he sustained “massive and catastrophic” injuries. He subsequently sued General Crane in Broward County Court. According to the employee’s complaint, he was forced to engage in high altitude crane activities in “dangerous wind conditions related to the passage of Hurricane Charlie” (more on the lawsuit / more on the OSHA investigation).

The suit, which was initiated in March 2006, remains pending. The employee’s bankruptcy claim has not yet been liquidated as “there has been no judicial determination of the amount of damages to which [the employee] is entitled.” Thus, the $40 million figure is an estimate of the damages.

Daimler Chrysler Financial files claims for $200K

DaimlerChrysler Financial Services Americas, LLC (DCFS) filed two separate claims against General Crane yesterday for a total of over $205,000. According to the claims, DCFS financed General’s purchase of several heavy haul trucks, including one 2007 Sterling LT7500, one 2008 Peterbilt 389, and two 2007 Freightliner Columbia trucks. General Crane purchased the first truck in October 2006 and the last three in January 2009.

Additional financers submit claims before filing deadline

During the past several days, General Crane USA Creditors Caterpillar Financial Services Corporation and Linden-Comansa America, LLC each filed bankruptcy claims. Comansa submitted a claim for $2.15 million, and Caterpillar filed two claims: a $2.81 million claim on March 30 and a $4.03 million claim on April 1.

As this site previously reported, General Crane was ordered to surrender to Caterpillar 10 Grove RT cranes, one Manitowoc 12000 crawler, 2 Alimak hoists, and certain serialized parts for 5 Linden Comansa tower cranes. However, General Crane was allowed, for the time being, to keep parts of the Comansa cranes that did not contain serial numbers, as they may have been commingled throughout the fleet. Caterpillar’s two claims cover the financing for all of the above-mentioned collateral.

Linden-Comansa America also has outstanding actions pending against General Crane. Comansa is engaged with General in a Harris County, Texas lawsuit over crane parts sequestered by local authorities. Among the items in their bankruptcy claim is $841K in “stolen parts of cranes.” The claim also cites roughly $2 million more in unpaid contracts and moving costs.

As of this posting, the total claims filed in the General Crane USA bankruptcy case amounts to nearly $79 million. And the two largest creditors according to General Crane’s financial disclosures, Bank Midwest, N.A. and SL Financial Services Corp., have not yet filed claims. The two creditors account for over $50 million in General Crane debt.

Prior to General’s Chapter 11 filing, SL Financial sued the company in Broward County for allegedly defaulting on loan payments and sought to repossess numerous Liebherr crawler cranes.

Follow General Crane’s bankruptcy at CraneWatchdog.com’s Bankruptcy Page.

 

General Crane Delays Decision on
Accepting Leases for Crane Yards

April 1, 2010

General Crane needs more time to decide whether to continue the lease agreements to stay in its crane yards. Curiously, all the leases in question are between General Crane and related parties.

Two days ago General Crane USA filed an emergency motion in bankruptcy court requesting a 90-day extension to determine whether to assume or reject the property leases for their yards in Pompano Beach, Florida, Houston, Texas, and Fairburn, Georgia (near Atlanta).

Court documents show an April 7, 2010 deadline for General Crane to make its decision on the lease deals for the properties. This is also the date when the company must submit its Reorganization Plan. However, General is asking for a delay because the company “requires additional time to formulate an exit strategy” from bankruptcy.

General Crane leases the headquarters facility in Pompano Beach from Steven Retterath (owner Jason Retterath’s father) for $33,000 per month. The company rents the yards in Houston and Fairburn from Republic Enterprises, LLC for a total of $40,000 ($20K each) per month.

The motion, however, does not disclose that Republic Enterprises is co-owned by General Crane managing partners James Robertson and Jason Retterath.

In January CraneWatchdog.com reported that General Crane paid nearly $200,000 to Steven Retterath and Republic Enterprises days prior to declaring bankruptcy. Mr. Retterath received a $66,000 check dated December 4 – two months worth of rent. Republic Enterprises received a check for $42,800 dated the same day followed by an $86,800 check on December 5. Three days later General Crane filed for bankruptcy.

In addition to its crane yards, Republic Enterprises owns mobile home lots adjacent to the General Crane’s Pompano Beach HQ. The lots are made up of five parcels in Broward County. On December 30 of last year Republic paid its 2009 county property taxes for all five parcels, which totaled over $110,000.

For the previous year, Republic was over 6 months delinquent in paying the taxes for the largest of the mobile home lot parcels. Republic Enterprises purchased the properties in February 2007 for about $10.7 million.

 

General Crane’s
February Operating Report Available

March 25, 2010

General Crane USA cut total company payroll by nearly 8% between January and February, according to the company’s latest Monthly Operating Report.

The latest report, a mandatory filing for companies in Chapter 11 Bankruptcy, notes that expenses dedicated to payroll dropped from $663,736 for the month of January to $612,202 in February. Company payroll is down by over 15% percent since its December operating report. And the December report, which showed a $722,980 expenditure on payroll, covered only part of the month (December 8-31).

General Crane’s total number of employees has remained relatively consistent during this time period, fluctuating between 120 and 125 workers.

Last month, CraneWatchdog.com reported that on February 4 General Crane management held a meeting at their Pompano Beach headquarters where they announced a 6% pay decrease.

Since that update multiple General Crane employees working in Texas have contacted CraneWatchdog stating that they also received pay cuts.

Based on the February operating report General Crane USA generated $1.15 million in cash receipts for the month, while spending roughly $1.06 million, edging the company’s total balance up from $380 thousand to $479 thousand.

In other Gulfstream Crane, LLC (aka General Crane USA) bankruptcy news, two new General creditors recently filed claims against the company.

Banc of America Leasing & Capital, LLC filed an $8.55 million claim yesterday. Prior to General Crane’s bankruptcy, Bank of America filed suit against the company in June 2009 in Broward County court, alleging that General had defaulted on loan payments with an outstanding principal balance of $8.07 million. In that suit, Bank of America claimed as collateral approximately 19 Linden Comansa tower cranes, along with other pieces of equipment, including two trucks and three flatbed trailers.

Also yesterday, Enterprise Fleet Services filed a claim against General for an undetermined sum. According to the claim, Gulfstream Crane rents vehicles from Enterprise pursuant to a Master Equity Lease Agreement established in March 1997. The claim further states that, to date, General Crane “has not assumed or rejected the Lease and is continuing to utilize some vehicles and turning in others.” As a result, “it is not possible at this time to determine the extent of any claim and/or damages under the Lease.” The Lease includes schedules for 28 vehicles.

Learn more at CraneWatchdog.com’s Bankruptcy Page.

 

More on Wells Fargo Bankruptcy Action

March 24, 2010

Wells Fargo wants to repossess over twenty cranes from General Crane USA, according to the bank’s recent filing in federal bankruptcy court.

On Monday, Wells Fargo Equipment Finance, Inc. submitted a motion in the Gulfstream Crane, LLC (aka General Crane USA) Chapter 11 case seeking relief from the bankruptcy’s Automatic Stay. The bank is requesting that the court “allow it to repossess its collateral.” Alternatively, Wells Fargo demands “adequate protection” in the form of “administrative rent” for the period beginning with General Crane’s bankruptcy petition date (December 9, 2009). Wells Fargo claims it is currently owned over $12.2 million.

Among the General Crane equipment Wells Fargo lists as collateral are three (3) Liebherr crawler cranes, six (6) Linden Comansa tower cranes, seven (7) Grove mobile cranes, two (2) Manitex mobile cranes, one National mobile crane, two (2) Comedil luffing boom cranes, and ten (10) trailers.

(Click HERE for a full listing of Wells Fargo collateral.)

In its court motion Wells Fargo attached an affidavit, dated March 17, 2010, signed by a company vice president. The affidavit states that Gulfstream Crane defaulted on its loan agreement with Wells Fargo in March 2008 by failing to make payments.

Prior to General Crane’s bankruptcy, Wells Fargo Equipment Finance filed suit in November 2009 in Broward County, Florida Court alleging that General was in default of their loan agreement. Wells Fargo’s lawsuit also named General Crane USA owners Jason Retterath and James Robertson as individual defendants. The bank is claiming that Retterath and Robertson signed personal guaranties for the company loans, making each personally responsible for the payments ($12.2 million). The suit remains pending in Broward County.

Wells Fargo is the fifth major secured creditor to seek relief from the Automatic Stay in General Crane’s bankruptcy. In recent weeks at least one creditor, Caterpillar Financial, was successful in overturning the Stay and repossessing equipment. On March 2 the bankruptcy judge ordered General to surrender ten (10) Grove RT mobile cranes and one Manitowoc 12000 crawler. Just last Thursday the judge ordered General to turn over to Caterpillar parts for five (5) Linden Comansa tower cranes.

Keep up with General Crane’s Chapter 11 proceedings at CraneWatchdog.com’s Bankruptcy Page.

Court Grants Caterpillar
Right to Repo Tower Crane Parts

March 23, 2010

Last Thursday the judge in General Crane USA’s Chapter 11 bankruptcy case granted creditor Caterpillar Financial Corp. the right to repossess certain parts of five Linden Comansa tower cranes.

As noted previously on this site, Caterpillar Financial originally filed a court motion in January asking for relief from the Automatic Stay that prevents creditors from repossessing collateral from Gulfstream Crane, LLC (aka General Crane USA). Caterpillar aimed to either repossess its equipment collateral or receive adequate protection payments from General Crane.

Caterpillar sought the relief stay for two sets of loans to General Crane. The first set, originated by FCC Financial, an affiliate of Caterpillar, financed General’s purchase of 10 Grove RT cranes, two Alimak single car lifts, and one Manitowoc 12000 crawler crane. On March 2, the bankruptcy judge ruled that General Crane must surrender all collateral to Caterpillar.

The judge’s March 2 order deferred ruling on the second set of Caterpillar loans, which financed five Linden Comansa tower cranes for General. This set of loans, originated by Bank of America (BofA) and later acquired by Caterpillar, is referred to in the case as the BofA loans.

The deferred ruling likely resulted from the overhanging issue of General Crane mixing and commingling tower crane parts throughout its fleet. This has become a key sticking point preventing creditors from easily identifying and reclaiming tower crane collateral.

On Thursday March 18, however, the bankruptcy judge issued further rulings on the matter and decided to grant Caterpillar a partial relief from the Stay concerning the BofA collateral (the five Linden Comansa towers).

However, Caterpillar is allowed to repossess only certain pieces of the tower cranes.

As detailed in the order, the Stay will be “modified as to those parts of the BofA Collateral that have serial numbers and the Debtor [General] shall surrender the such pieces of the BofA Collateral to Caterpillar promptly after entry of this order.”

The pieces designated for repossession will be surrendered either at General Crane’s yards, or at Caterpillar’s request “shall be transported to Caterpillar if Caterpillar pays in advance the costs of such transportation.”

Still, as General Crane’s representatives have claimed in the past (see p. 50), many Linden Comansa tower parts are not marked with serial numbers or any other identifiers. Thus, the unmarked parts will for the time being remain part of General’s estate.

You can following General Crane’s ongoing Chapter 11 case at CraneWatchdog.com’s Bankruptcy Page.

 

Wells Fargo Seeks to Repo 20+ Cranes
from General Crane

March 23, 2010

Yesterday afternoon Wells Fargo Equipment Finance, Inc. filed a motion in General Crane USA’s bankruptcy case seeking to repossess more than twenty cranes.

According to the filing, General Crane owes over $12.2 million in defaulted loans Wells Fargo.

Below is a sample list of the Wells Fargo collateral at risk of repossession. Check back later in the day for more documents and analysis.

Recent Events in General Crane Bankruptcy

March 12, 2010

Below is a list of recent events in the ongoing Gulfstream Crane, LLC (aka General Crane USA) Chapter 11 bankruptcy case.

IRS Files Claim against General Crane
On March 2 the Internal Revenue Service filed a $35,338.62 claim for unpaid FICA taxes for the year January 1, 2009 to December 31, 2009. Previously, in December the Broward County, Florida Tax Collector filed a claim against General for $39,082.44.

Additionally, according to General Crane’s financial schedules from its bankruptcy, the company owed nearly $85,000 to various Texas-based tax collection agencies.

The Texas Comptroller of Public Accounts – the state’s tax division – currently lists Gulfstream Crane, LLC as “Not in Good Standing,” because it “has not satisfied all franchise tax requirements.”

General Crane Reaches Settlement Agreement with Contractor
Also on March 2, General Crane filed a motion in bankruptcy court to approve a settlement with Texas-based contractor Ewing Construction Co. According to the motion General Crane provided equipment to Ewing for the Del Lago Resort Tower Renovation project in Conroe, Texas.

Subsequently, General had filed suit against Ewing in Montgomery County court, “seeking damages for certain repairs and finance charges in the total sum of $66,906.22.” In response, Ewing denied General Crane’s allegations and claimed that General’s equipment “malfunctioned and resulted in a delay on the project.”

Pursuant to the settlement agreement, Ewing has agreed to pay $43,000 to General’s estate, and both parties have further agreed to discharge all actions and claims against one another.

Wells Fargo Files $12 Million Claim against General Crane
General Crane creditor Wells Fargo Equipment Finance, Inc. filed a $12.2 million bankruptcy claim against General on March 8.

Based on UCC filings documenting loan transactions, Wells Fargo has provided financing to General for at least nine (9) Grove mobile cranes, two (2) Liebherr crawler cranes, one (1) Liebherr all terrain, two (2) Terex Comedil luffing tower cranes, and two (2) Linden Comansa tower cranes.

Wells Fargo is also currently pursuing legal action against General Crane USA owners Jason Retterath and James Robertson in Broward County, Florida court. In that suit Wells Fargo has alleged that Retterath and Robertson are each individually responsible for their company’s $12 million in defaulted loan payments.

General Crane Seeks Clarification on Linden-Comansa America Ruling
One week ago, the judge in General Crane’s bankruptcy case granted Linden-Comansa America, LLC a relief order from the Automatic Stay Order effectively allowing Linden-Comansa America, LLC to resume its separate lawsuit against General Crane filed in Harris County, Texas court. The suit will decide, among other things, whether Linden or General can claim ownership over roughly $600,000 worth of tower crane parts currently sequestered by Harris County law enforcement.

Yesterday, in response to the Stay Relief Order, General Crane filed a court motion requesting clarification on two issues and a limited reconsideration of the ruling.

First, while General Crane does not request reconsideration on allowing the suit to proceed in Harris County court, it does seek to limit the Texas court’s authority to rule only on “the narrow issue of whether Linden or [General] owns the Sequestered Property.” This would move a number of other outstanding disputes in the Linden suit, such as breach of contract and breach of a lease agreement, back under the jurisdiction of the bankruptcy court.

Second, General Crane is requesting that the factual background section of the Stay Relief Order be deemed not binding or vacated. General Crane argues that the facts declared in the bankruptcy court’s order were not determined through a fact finding hearing, so should not be binding. General Crane’s reported concern is that those facts could be construed by the Texas Court as res judicata (a matter of fact not debatable because it has been already judged). Certain facts appear damaging to General Crane’s case if adopted by the Harris County court. For example, on page 2 of the Stay Relief Order, the Court states that “Linden attempted to conduct a third joint inventory but, by this time, the Debtor refused to cooperate.”

General’s motion also requests that the judge allow its newly-retained equipment auditing firm GoIndustry Dovebid the right to audit the sequestered crane parts.

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Stay up to date on the General Crane USA Chapter 11 case by visiting CraneWatchdog.com’s Bankruptcy Page.

Bankruptcy Court Rules in Favor of Comansa,
Litigation against General Crane to Continue in Texas

March 8, 2010

Linden-Comansa America, LLC will resume its lawsuit against General Crane USA in Harris County, Texas court, after a nearly three month hiatus due to General’s bankruptcy.

Last Thursday the judge for the Gulfstream Crane, LLC (aka General Crane USA) Chapter 11 case granted tower crane manufacturer Linden-Comansa a relief from the automatic stay that, until now, had suspended pending litigation against the bankrupt company. In accordance with Comansa’s wishes, the ruling stated: “Linden may continue and conclude to a final judgment determining of the ownership of the parts in the litigation commenced in the 152nd Judicial District Court of Harris County, Texas.”

As covered on CraneWatchdog.com, Linden-Comansa America filed its Harris County suit against General Crane in mid-November, alleging that General had stolen nearly one-million dollars in leased tower crane parts and failed to pay roughly $1.5 million more in contractual fees. Comansa received a writ of sequestration and, accompanied by county Constable agents, seized about $600,000 worth of crane parts from General’s yard. The parts remain in Harris County custody.

Following General’s bankruptcy, Comansa filed its motion to continue the case in Texas. General Crane opposed the move. Their chief argument for keeping the dispute in the bankruptcy court’s jurisdiction was the following:

It may be possible that some or all of the Debtor's property sequestered in the Texas state court action is subject to liens by one or more of the Debtor's lenders, and is thus important to the administration of this estate.

General Crane even retained an outside law firm Baker Botts, LLP at $800 an hour to advocate for the transfer of the Comansa suit from Texas to the U.S. Bankruptcy Court.

In the bankruptcy court’s final analysis, the judge stated:

If this property was, as Linden contends, stolen from the Cranes, then it is not property of the estate. The Texas court is in a better position to make this determination, which is a question of Texas law.

Moreover, the court noted that it was more convenient to continue the case in Texas, as the crane parts, witnesses, and sheriff’s deputies are all located in the state. The judge also noted that since the alleged value of the sequestered parts ($600,000) comprises less than 1/100 of General Crane’s estate it comprised a negligible portion of the bankrupt estate.

The bankruptcy judge lastly commented on the repercussions for potential outcomes of the Texas lawsuit. If the Harris County court decides that the sequestered parts belong to Comansa then the ruling “shall be conclusive and binding upon the parties,” and “the inventory and parts shall in no way be considered property of [General’s] estate.”

On the other hand, if the Texas court rules in favor of General then the parts “shall be considered property of the estate and all further proceedings with regard to their disposition, and the rights of all parties with regard to the inventory shall be determined by this Court.”

Click here to learn more about the Comansa-General Crane dispute. Also review General Crane USA’s bankruptcy case at CraneWatchdog.com’s Bankruptcy Page.

 

General Crane “Surrenders” 11 Cranes
to Caterpillar Financial

March 8, 2010

The judge in General Crane USA’s bankruptcy case recently granted Caterpillar Financial Services Corporation the right to repossess eleven cranes from General.

The judge’s order cites a February 16 court hearing, Gulfstream Crane, LLC (aka General Crane USA) and Caterpillar Financial reached an agreement where General would “surrender” ten Grove RT 760 Rough Terrain Cranes and one Manitowoc 12000 Crawler Crane. The list of Caterpillar collateral and the dates when they are available for repossession are available in the chart below:

In mid-January Caterpillar Financial filed a motion for relief from the automatic stay in order to reclaim collateral from two sets of loans from General Crane, or seek adequate protection payments on those loans.

The first group of loans, originated by FCC Equipment Financing, Inc. (a lending division of Caterpillar) financed General’s purchase of the 10 Grove cranes and one Manitowoc crawler cited above, as well as two Alimak Scando hoists.

The second set of Caterpillar loans to General were actually originated by Banc of America Leasing & Capital, LLC. The collateral for those loans was five Linden-Comansa tower cranes.

The judge’s recent order grants Caterpillar a partial relief from the stay, allowing the financer to repo the collateral from the FCC loans – namely, the Grove cranes and the Manitowoc. In addition, the judge also ordered that General Crane “use its best efforts to locate and return to Caterpillar the missing parts related to the two Alimak lifts returned to Caterpillar pre-petition.”

The outcome for the Linden-Comansa cranes that Caterpillar claims as collateral remains unclear at this time. The court deferred its ruling on the tower cranes. Likely the deferral has to do with unresolved issues over the commingling of Linden-Comansa tower crane parts in its fleet.

Keep up to date on General Crane USA’s Chapter 11 case in CraneWatchdog.com’s Bankruptcy News page.

 

General Crane
January Operating Report Available

March 5, 2010

General Crane USA lost nearly $140,000 during the month of January, according to its latest operating report.

Company revenue (or receipts), at $1,013,522, was nearly identical to the previous month, however disbursements rose by over 20% to $1,152,303, due largely to increased expenditures on insurance, leases, and professional fees.

Gulfstream Crane, LLC (aka General Crane USA) leases property from Steven Retterath (the father of owner Jason Retterath), as well as a company named Republic Enterprises, LLC, which is co-owned by Jason Retterath and Jim Robertson. The $30,000 in professional fees is likely attributed to the financial advisor firm Morris Anderson.

Notably, General Crane cut payroll expenses by over 8% from December to January, despite the employee roster remaining relatively consistent (ranging from 122 to 125 workers during the time period). Owners Retterath’s and Robertson’s salaries remained unchanged at $21,154 per month.

General Crane’s lower than expected revenues could potentially hurt its ability to carry on operations.

Despite its bankrupt status, General Crane can continue to operate because it is authorized to use cash collateral to fund its business. General received the authorizations, approved by the judge on a monthly basis, on December 11, 2009 and on January 25, 2010.

For each authorization the company is required to submit a 25-day operating budget. Combined, the two above-listed budgets cover the entire month of January. And during that month, General Crane projected that it would collect $1,482,000 in cash receipts.

As noted above, for January General Crane actually generated receipts totaling only $1,013,522.

One of the stipulations in General Crane’s use of cash collateral is that its authorization will “terminate” in the occurrence of an “Event of Default.” Among the listed default events is if General Crane’s “Total Collections for any month falls below the budgeted amount of Total Collections by more than 10%.”

For the month of January, General Crane’s reported actual receipts are $468,478 (or 31.6%) below the budgeted mark, a potential default event.

The bankruptcy judge’s authorization allowing General Crane to use cash collateral, though, empowers the lenders (or creditors) to waive an event of default. The authorization further states: “Any and all controversies or disputes over the interpretation or performance of the terms and conditions of this Final Order shall be determined by this Court upon application or motion made by any of the Lenders, the Debtor or other parties-in-interest.”

For more information, go to General Crane USA’s Bankruptcy Page.

 

General Crane Negotiating “Reduction” of Property

March 1, 2010

General Crane USA, in the midst of Chapter 11 bankruptcy, recently disclosed that it is negotiating with its creditors on a “procedure for the reduction and disposition of its property.”

The bankrupt company is reducing its fleet hoping to “avert costly litigation over the validity, priority and extent of liens that would be detrimental to both the Lenders and the Debtor.”

Last Friday, Gulfstream Crane, LLC (aka General Crane USA) filed an application in bankruptcy court to retain the services of GoIndustry USA, Inc., an asset management firm, for the purpose of conducting a company-wide audit of all General Crane equipment and property. The audit report will be completed and delivered sometime between March 5 and March 12, 2010.

GoIndustry USA has stated that it will charge General Crane a $15,000 fee plus approximately $5,000 in travel and related expenses. However, GoIndustry also functions as an equipment auctioneer with “extensive experience in bankruptcy matters.” As such the firm states:

Conducting a large sale for all creditors and then attaching liens to proceeds is the most cost effective method for the secured’s to liquidate their chattel.

If General Crane conducts such a sale, GoIndustry “will rebate back to the estate 100% of the fee for this audit in the event we are later retained to sell at least 50% of the assets that [General Crane] has earmarked to ‘return’ to the secured creditors as previously discussed.”

GoIndustry’s audit must sort through a General Crane fleet with many commingled crane parts.

In an earlier court filing, General Crane USA creditor Bank Midwest stated that General had allowed “components from all of its cranes to become mixed together such that the it is not possible to identify which crane parts are subject to each security interest.”

For instance, General Crane originally erected two Linden Comansa tower cranes on a stalled hospital project in Webster, Texas. Recently a General Crane crew took down the jib, counter jib, and turntable from the south crane on the project (see the image to the right). At this time CraneWatchdog.com has not verified the new location of these components.

In order to take full account of the company’s reported $80 plus million in assets, GoIndustry USA’s audit will provide the following services:

(i) conduct a physical inspection and verification of every major component of every crane by serial number; (ii) components without serial numbers will be grouped by asset type and counted; (iii) conduct a physical inspection and verification of noncrane assets; (iv) take photographs of the assets; and (v) take notes on the physical condition of equipment if apparent and notable.

A February 12, 2010 letter from GoIndustry USA addressed to General Crane’s attorney summarized the reported locations of General Crane’s equipment:

It is our understanding that approximately 95% of the equipment is concentrated at three company yards in Pompano Beach, FL; Atlanta, GA; and Houston, TX. Additionally, there is approximately 5% of the equipment scattered at approximately 30 different job sites in Dallas, San Antonio & Houston, TX; Atlanta, GA; Miami, FL; and Las Vegas, NV.

There are some pieces of equipment at “remote” job sites. In these cases, GoIndustry USA will “conduct the audit via telephone provided there is a qualified person on site to participate in the audit.”

Learn more about General Crane USA’s Chapter 11 proceedings at our Bankruptcy Page.

 

Creditors’ Committee Established in
General Crane Bankruptcy

February 26, 2010

The United States Trustee overseeing General Crane USA’s Chapter 11 bankruptcy in federal court announced Wednesday the appointment of a Committee of Unsecured Creditors also known as a “creditors’ committee”.

The purpose of a creditors’ committee is to represent the interests of unsecured creditors during a Chapter 11 bankruptcy proceeding. Creditors’ committees are written into the Federal Bankruptcy Code at Chapter 11 U.S.C. § 1102, created to serve as a necessary check, leveling the field against the secured creditors’ often much stronger relative position in the proceedings. That stronger position is derived, in part, from the secured creditors’ actual possession of the debtor’s collateral, or a priority entitlement to that collateral where the debtor is still in possession of it.

Creditors’ committees have a special role in the Chapter 11 bankruptcy proceedings. Committees are granted investigatory powers over the bankrupt company, and the standing to bring their findings as evidence before the court. The court enables creditors’ committees to carry out their special role by allowing committee members to consult with the debtor in possession, and to participate in the formation of the debtor’s reorganization plan, which is the document ultimately determining payment (if any) for all creditors in the case.

To further assist the committee with their task the committee is permitted, with court approval, to hire professional staff such as legal counsel and financial advisers to provide, among other things, aid in reviewing the debtor’s finance documents and the ability to file motions before the court. Upon court approval, costs for these professional services are paid by the debtor (who in this case would be General Crane).

A well-informed creditors’ committee, who adeptly exercise their rights in the bankruptcy, can have a powerful impact on the direction of a Chapter 11 bankruptcy. Where the creditors’ committee takes a strong hand, they can often hold sway over a Chapter 11 bankruptcy, and even steer it from reorganization to Chapter 7 liquidation, if the committee finds it in their interest.

For more information on the role of creditors’ committees in Chapter 11 cases, see the Department of Justice website. Other helpful primers can be found here and here.

You can find the latest news and up-to-date documents on General Crane USA’s bankruptcy by visiting our Bankruptcy page.

This article is not intended as actual legal advice or a legal opinion. Cranewatchdog.com is not associated with the U.S. Department of Justice, or the Federal Judiciary.

 

U.S. Bancorp Files Court Motion to
Repo General Crane Equipment

February 12, 2010

General Crane USA creditor U.S. Bancorp Equipment Finance is seeking to repossess five construction hoists from the bankrupt crane rental company.

Two days ago U.S. Bancorp submitted a filing in the Gulfstream Crane, LLC (aka General Crane USA) bankruptcy case requesting to “terminate” the automatic stay that is preventing creditors from reclaiming equipment from defaulted loans. Also on Wednesday U.S. Bancorp filed four separate claims against General Crane totaling $2,137,456.76.

With this motion, U.S. Bancorp joins Caterpillar Financial, Center Capital Corporation, and Harry Fry & Associates as lenders who have sought relief from the bankruptcy stay currently protecting General Crane.

According to U.S. Bancorp’s motion, in early 2008 the equipment financer acquired a portion of a larger loan Bank of America issued to General Crane in 2006. In that deal U.S. Bancorp procured four separate loans used by General Crane to purchase five Pass/Mat Pega Hoists.

In 2009 U.S. Bancorp and General Crane agreed to a loan modification, which allowed General to make smaller monthly loan payments over a longer period of time. The new payment structure was to begin in September 2009. However, U.S. Bancorp’s motion alleges that General Crane made only its September payments and none thereafter, resulting in General breaching the terms of the modified loan agreement.

General Crane continues to use the collateral which is, U.S. Bancorp’s motion claims, “subjecting it/them to continued wear, tear, and depreciation.” As a result, the financer’s security interest is not adequately protected. In addition, U.S. Bancorp “has not been able to inspect its collateral and verify its conditions […] including insurance thereon.” Continuation of the automatic stay, the motion asserts, will cause “real and irreparable harm” to U.S. Bancorp.

Go to CraneWatchdog.com’s Bankruptcy Page to see the latest filings and analysis on General Crane’s bankruptcy.

 

Bankruptcy Judge Permits General Crane
to Hire Financial Advisor

February 4, 2010

Yesterday the judge for General Crane USA’s ongoing bankruptcy case granted permission for General to retain Morris-Anderson & Associates, Ltd., as well as firm partner Dan Dooley, as financial consultants.

The court authorized Morris Anderson to receive the $30,000 retainer paid by General Crane. The consulting firm will be able to draw fees and costs from the retainer. Per court directive: “Any fees and costs awarded by the Court shall be paid as directed by the Court following full depletion of the Retainer.”

Pursuant to the Federal Rules of Bankruptcy Procedure an entity seeking compensation from a company in bankruptcy must file an application stating the services rendered and amounts requested.

As noted in our January 22 posting, Mr. Dooley of Morris-Anderson bills $525.00 per hour for his services.

You can follow General Crane’s bankruptcy case on our Bankruptcy Page.

 

General Crane, Bank Midwest Seek to
Delay Creditor Repos for Time Being

February 2, 2010

General Crane USA and one of its principal financers, Bank Midwest, are both opposing at this time attempts by two creditors to repossess collateral in General’s ongoing bankruptcy case.

However, Gulfstream Crane, LLC (aka General Crane USA) has “elected” to return all equipment to the creditors in question, Center Capital Corp. and Harry Fry, once General and its lenders “devise a process for identifying and segregating equipment” that may have been comingled. General Crane’s motions appear to only delay turning over collateral to the lenders.

Last Friday, General Crane and Bank Midwest issued separate filings – four in total – in bankruptcy court objecting to Center Capital Corp. and Harry Fry motions for relief from the automatic stay that prevents creditors from reclaiming collateral.

As background, Bank Midwest alleges that in May 2006 it issued a $31,096,326 loan to General Crane in which General (the debtor) granted to the bank “a continuing first priority security interest and lien in any and all personal property of the Debtor.”

Following the Bank Midwest loan, General Crane took out tens of millions more from other financial institutions – including Bank of America, Wells Fargo, and SL Financial Services – to purchase dozens of new cranes, among other equipment. Some new financers sought to perfect their security interests by filing the requisite UCC statement to record the transactions, which would assure their primary security interest in the specific equipment collateralized for corresponding loans. Many banks obtained standard releases from Bank Midwest, acknowledging their priority interest in specific equipment used to collateralize the loans, ahead of Bank Midwest’s general security interest in all personal property.

In Bank Midwest’s opposition to Harry Fry’s attempt to repossess one tower crane and two construction hoists from General Crane, the bank first asserts that Fry “failed to demonstrate that it filed its UCC's for the two Pega Hoists.” As a result, Harry Fry “does not have a priority lien on the 2 Pega Hoists and they are subject to Bank Midwest's priority blanket lien.”

Regarding the Harry Fry’s claim to the Linden-Comansa tower crane, Bank Midwest argues that Harry Fry’s description of the tower crane – namely: “One (1) 2009 Linden Comansa Series 2100 Crane Model 21LC400, s/n 13957 with all standard and accessory equipment” – is insufficient.

In particular, Bank Midwest takes issue with identifying “all standard and accessory equipment,” because these pieces do not have serial numbers. As a result, the bank submits, Harry Fry does not have an interest in these pieces. Bank Midwest continues:

Because Harry Fry does not have a security interest in the Non-Serialized Pieces of the Linden Comansa Tower Crane or Liebherr Crawler, granting the full relief sought in the Motion will allow Harry Fry to recover property that is actually Collateral subject to Bank Midwest's priority blanket lien.

Bank Midwest further concludes:

Even if Harry Fry has a perfected priority security interest in the Non-Serialized Pieces, Harry Fry is not entitled to stay relief because they are comingled and/or attached to other equipment such that it cannot identify which specific Non-Serialized Pieces are subject to its purported security interest.

The arguments against Harry Fry’s right to take possession of the tower crane also serve as the foundation for Bank Midwest’s motion against Center Capital Corporation’s attempt to reclaim four Linden-Comansa tower cranes from General.

Similar to Harry Fry’s case, Bank Midwest asserts that “Center Capital seeks to recover not only serialized equipment, but also the "standard and accessory equipment" to its serialized equipment.” Again, Center Capital’s description of non-serialized parts is insufficient, according to Bank Midwest’s filing.

General Crane USA also filed motions opposing Center Capital’s and Harry Fry’s request for a relief from the bankruptcy’s automatic stay.

In its motions, General Crane’s claims are often parallel to those of Bank Midwest. For instance, in countering both Harry Fry and Center Capital, General asserts that even if the lenders “recorded a valid and perfected purchase money security interest, or may have otherwise obtained a release from the Bank Midwest Lien, an issue still exists with respect to identifying the component or tower parts because those components do not contain serial numbers.”

It appears that General Crane seeks only to delay, not permanently oppose, the creditors’ efforts to repossess collateral. General Crane acknowledges its obligation to return certain equipment to Harry Fry and Center Capital. But the company cites hold-ups in an immediate turnover resulting from General Crane’s allowing crane components from its cranes, used to collateralize the loans, to become parted out and intermingled, without recording which components belong to which machine, such that it is impossible to identify which components are subject to which security interest. In Center Capital’s case:

[A]gain, while certain pieces of the tower crane have serial numbers, the tower components do not, and therefore, an issue exists with respect to identifying the collateral. The Debtor is in discussions with various lenders in an effort to devise a process for identifying and segregating equipment. Until such a process is implemented, the Motion should be denied.

Learn more about General Crane’s bankruptcy by clicking HERE.

 

Linden-Comansa Seeks to Continue Texas Lawsuit against General Crane

January 29, 2010

Tower crane manufacturer Linden-Comansa America, LLC is requesting permission to continue its Harris County, Texas lawsuit against General Crane USA to “recover stolen property.” Yesterday, Comansa filed a motion in General Crane’s ongoing bankruptcy case arguing for relief from the automatic stay that is preventing the manufacturer from resolving its dispute with General over unpaid fees and alleged stolen crane parts.

Comansa originally filed suit in Texas against Gulfstream Crane, LLC (aka General Crane USA) one month before the bankruptcy, claiming that General had stolen nearly $1 million worth of tower crane parts. The Texas court issued a writ of sequestration on November 11, 2009 allowing Comansa and Harris County Constable officials that same day to seize crane parts from General Crane’s Houston yard. The sequestered parts are currently in Harris County officials’ possession.

Throughout November and into early December General Crane and Comansa waged a court battle over the right to claim the parts, with General filing a motion to dissolve the writ followed by Comansa’s own filing opposing General’s argument.

However, General Crane’s bankruptcy on December 8 established an “automatic stay” which brought to a halt to all creditor efforts to extract or repossess money and property from General, including Comansa’s suit.

Comansa argues that it is “prejudiced by the stay.” As stated in Linden-Comansa’s bankruptcy court filing, “Harris County law enforcement was able to recover roughly half of the parts Gulfstream stole from Linden,” and are holding the parts in a “secure storage area.” Comansa, though, was forced to post a $100,000 cash bond, “which is being held until the resolution of the sequestration proceedings.”

In addition to the bond, the company must pay storage charges for the sequestered property pursuant to Texas law. And of course Comansa “will continue to be deprived of possession and use of several hundred thousand dollars of its property.”

Linden-Comansa’s motion states that the Harris County judge for the case set an evidentiary hearing for December 10, 2009 to settle the writ of sequestration debate between General and Comansa. Court records show prior to the hearing each party could depose three representatives from the opposing party.

According to Comansa, it produced its three witnesses on December 7 and General Crane deposed two of them that day with the third deposition set for the next. Comansa was scheduled to depose the three General Crane witnesses on December 8 as well. Comansa’s motion continues:

However, on December 8, 2009, the very day Linden was to depose Debtor's representatives regarding the stolen tower crane parts, Debtor's counsel contacted Linden's counsel after the depositions were scheduled to commence and informed Linden's counsel that Debtor and its representatives would not appear for their scheduled depositions because Debtor was contemplating filing for bankruptcy.

As the record shows General Crane did indeed file for Chapter 11 bankruptcy protection on December 8 – two days before the evidentiary hearing with Comansa.

Linden-Comansa now argues before the bankruptcy court that the judge should “allow Linden to continue it Pre-Petition Litigation in Texas will be the most efficient use of judicial resources,” as the dispute between General and Comansa is “substantially advanced in another forum.” Comansa further states:

Likewise, most of the key witnesses to the proceeding, including the nonprincipal current and former employees of Gulfstream who participated in the audit of the Leased Property and acknowledged that the parts had been stolen, are located in Texas.

The bankruptcy judge will likely set a hearing date for Comansa’s motion in the coming days.

Site visitors can follow General Crane’s bankruptcy proceedings at our Bankruptcy Page. Also, click HERE for more background on the dispute between General and Linden-Comansa. We will continue to provide updates on both fronts as we learn more.

 

General Crane Hires Financial Advisors

January 22, 2010

Over six weeks into its Chapter 11 Bankruptcy case, General Crane USA is applying for permission from the court to hire the Chicago-based consulting firm Morris Anderson & Associates as “financial advisors.” The firm charges hourly rates as high as $525 per hour.

Morris Anderson specializes in “turnarounds and workouts,” attempting to salvage troubled companies.

The firm is a member of the Turnaround Management Association, a trade group with the reputation as “(t)he executives brought in when all else fails, and they generally prefer to cut their losses” as reported by The Chicago Tribune.

According to the application before the court, Morris Anderson’s principal Dan Dooley, a turnaround and crisis manager, will serve as the lead consultant as General Crane seeks to reduce costs, improve liquidity, “enhance weekly cash flow and monthly full financial projections,” and prepare for a plan of reorganization.

The compensation package for Morris Anderson as stated in the court filing includes a refundable retainer of $30,000 plus payments “based on the time spent and services rendered, the result achieved, the difficulty and complexity encountered, and other appropriate factors.”

General Crane proposes paying the consulting firm its standard hourly rates plus expense reimbursements – “The hourly rates of Morris Anderson range from $375.00 to $525.00. The hourly rate of Dooley is $525.00.”

U.S. Bankruptcy Court documents reveal that Morris Anderson has also provided financial consulting services for another bankrupt company, Arclin US Holdings, Inc. A recent application to compensate Morris Anderson in this case revealed that the consulting company bills $525 per hour for its principal advisor in addition to lesser rates for the managing director ($475 per hour) and the consultant ($250 per hour) working on the bankruptcy. For the month of October 2009 the firm billed $148,485.00. Morris Anderson reduced the final compensation figure by 20% pursuant to an administrative order, for a requested sum of $118,788.00.

 

Caterpillar Seeks to Repo Equipment
from General Crane

January 20, 2010

Capterpillar Financial Services Corporation yesterday petitioned the bankruptcy court to allow the financer to “repossess and sell” collateral attached to General Crane USA loans. The collateral includes sixteen cranes and two construction hoists.

Caterpillar’s court motion asks for relief from the automatic stay protecting bankrupt General Crane from creditor repossessions.

The motion states that General Crane owes Caterpillar approximately $6.2 million on six outstanding loans. The loans helped finance ten Grove rough terrain cranes, five Linden-Comansa towers, two Alimak Scando lifts, and a Manitowoc crawler, all of which are cited as collateral.

However, the current value of all the collateral listed above, according to Caterpillar, is only $4.2 million – roughly one-third less than the total value of the loans. Caterpillar’s motion contends that the negative equity entitles the financer to relief from the automatic stay. The absence of regular loan payments coupled with the declining value of the collateral at stake has resulted in Caterpillar not being adequately protected.

As such, Caterpillar first requests “to exercise its state law rights and remedies in the Collateral including, without limitation, to repossess and sell the Collateral.” If the court does not grant Caterpillar this right the financer asks alternatively for General Crane to make “adequate protection payments.”

Two other General Crane creditors, Center Capital Corporation and Harry Fry & Associates, have executed similar moves in bankruptcy court during the past 10 days. Both financers seek either periodic payments to ensure adequate protection for depreciating collateral, or the right to reclaim said collateral. Below is a list of equipment the creditors seek to repossess, based on bankruptcy court filings.

Collateral Named in Creditor Motions for Relief of Automatic Stay

Creditor	Make & Model	Serial Number
Caterpillar Financial	Grove RT760E 60-Ton Rough Terrain Cranes	223226
Caterpillar Financial	Grove RT760E 60-Ton Rough Terrain Cranes	223501
Caterpillar Financial	Grove RT760E 60-Ton Rough Terrain Cranes	223560
Caterpillar Financial	Grove RT760E 60-Ton Rough Terrain Cranes	223601
Caterpillar Financial	Grove RT760E 60-Ton Rough Terrain Cranes	223612
Caterpilla Financial	Grove RT760E 60-Ton Rough Terrain Cranes	223639
Caterpilla Financial	Grove RT760E 60-Ton Rough Terrain Cranes	224077
Caterpillar Financial	Grove RT760E 60-Ton Rough Terrain Cranes	224079
Caterpillar Financial	Manitowoc 12000 120 Ton Crawler Crane	1200-1027
Caterpillar Financial	Alimak Scando 650FC32/391 Single Car Lifts	23210
Caterpillar Financial	Alimak Scando 650FC32/391 Single Car Lifts	23259
Caterpillar Financial	Grove RT760E 60-Ton Rough Terrain Cranes	223110
Caterpillar Financial	Grove RT760E 60-Ton Rough Terrain Cranes	223583
Caterpillar Financial	Linden-Comansa America, LLC Model 10LC140 Tower Cranes	14.439
Caterpillar Financial	Linden-Comansa America, LLC Model 10LC140 Tower Cranes	14.442
Caterpillar Financial	Linden-Comansa America, LLC Model 10LC140 Tower Cranes	14.444
Caterpillar Financial	Linden-Comansa America, LLC Model 21 LC400 Tower Cranes	14.424
Caterpillar Financial	Linden-Comansa America, LLC Model 21 LC400 Tower Cranes	14.425
Harry Fry & Associates	Pass/Mat Hoist Pega 2737 TD VFC HS	33/08 & 34/08
Harry Fry & Associates	Pass/Mat Hoist Pega 2737 TD VFC HS	29/08 & 30/08
Harry Fry & Associates	Comansa Series 2100 Tower Crane Model 21LC400	13957
Center Capital Corp.	Linden-Comansa Model 550 18T Tower Crane	14.413
Center Capital Corp.	Linden-Comansa Model 210 Tower Crane	14.422
Center Capital Corp.	Linden-Comansa Model 21LC400 18T Tower Crane	14.423
Center Capital Corp.	Linden-Comansa Model 290 Tower Crane	14.426

This chart is also available on the General Crane Bankruptcy Page, where we will continue to provide updated documentation and analysis from the case.

 

General Crane Creditor Harry Fry Asks Judge
to “Turn Over Equipment”

January 19, 2010

Harry Fry & Associates filed a motion in U.S. Bankruptcy Court on Saturday seeking, among other things, an order requiring General Crane USA to make “periodic cash payments” to the equipment financer. The motion requests an order mandating that in the event that General Crane fails to make the payments, then General Crane would have to “promptly turn over” secured collateral to Harry Fry.

Saturday’s motion follows an early filing by Harry Fry in which it objected to Gulfstream Crane, LLC’s (aka General Crane USA) use of cash collateral. A hearing on this motion was held last Friday, January 15.

Now, Harry Fry asserts that since General Crane has defaulted on its October 1, 2009 payment and all payments thereafter Fry is entitled to “immediate possession” of equipment secured to outstanding loans valued at $544,789.23. The equipment includes two 2007 construction hoists, and one Linden Comansa tower crane.

General Crane’s December 8, 2009 bankruptcy allowed for an “automatic stay” initially preventing creditors from repossessing secured equipment from defaulted loans.

Harry Fry is requesting relief from the automatic stay, claiming that General Crane’s bankruptcy situation fails to meet the parameters enabling the stay. According to the motion the stay can be overturned if 1) the debtor does not have equity in the secured property in question; or 2) “such property is not necessary for an effective reorganization.” The motion contends that there is negative equity in the three pieces of equipment, and that General Crane does not need the equipment to reorganize.

Harry Fry further stated the following:

At the hearing on the Debtor’s Motion for Authority to Use Cash Collateral on January 15, 2010, counsel for the Debtor indicated that all of the Equipment would be returned to Harry Fry.

Should the judge decide against granting Harry Fry relief from the automatic stay, the creditor, Fry, asks for periodic payments for General Crane’s “continued possession and use of the Equipment.” Such a measure would provide for “adequate protection in order to protect a creditor from depreciation of the value of its leased equipment or collateral during the pendency of the Automatic Stay.”

In its motion, Harry Fry requests a court order allowing it to repossess General Crane’s equipment, in the event that it does not fulfill its financial obligations to Harry Fry.

On January 11 another General Crane creditor, Center Capital Corporation, filed a similar motion seeking to take back secured collateral – 4 tower cranes, in this case. A hearing for this motion is set for February 2.

 

Third Creditor Objects to General Crane Bankruptcy Motion

January 15, 2010

Equipment financer Winfield Corporation filed an objection yesterday in bankruptcy court to General Crane’s motion to continuing using cash collateral for its daily operations. Winfield Corp., also known as Harry Fry & Associates, is the third creditor to submit a motion protesting the interim order to use cash collateral.

According to Harry Fry, the financer provided two separate loans to General Crane for the total sum of $700,000 to purchase two construction hoists and one Linden Comansa tower crane. At the time General Crane declared bankruptcy the company owed Harry Fry $544,789.23.

Similar to the other creditors (Center Capital Corp. and Caterpillar Financial) objecting to the interim order, Harry Fry argues that order does not provide “any adequate protection payments for the use of the cash collateral.”

The financer further contends that by making the interim order a final order it would have “the effect to supercede or prime Harry Fry’s security interests in the above referenced equipment.”

As such, Harry Fry is requesting that the judge deny the interim order, ensure that “Post Petition Liens” not “supercede or prime” its security interests, and “provide Harry Fry with adequate protection.”

A hearing on this matter is scheduled for 9:30AM today in U.S. Bankruptcy Court in Fort Lauderdale.

Visit the General Crane Bankruptcy Page for more information.

 

Two Creditors Object to General Crane’s
Use of Cash Collateral

January 14, 2010

Two equipment financers have independently filed motions in bankruptcy court objecting to an interim order allowing General Crane to use cash to continue its operations.

The first creditor, Center Capital Corporation, submitted its motion on January 11. Caterpillar Financial Services Corporation followed with its own filing yesterday.

Gulfstream Crane, LLC’s (aka General Crane USA) original motion to use cash collateral – filed December 9, 2009 and later granted by the court on December 11 – states that “based on a review of the public record, it appears as though Bank Midwest holds a first priority lien against revenues being derived from [General Crane’s] projects.”

Center Capital’s motion takes issue with Bank Midwest’s pole position as a creditor and with the contested order “establishing post-petition liens in Bank Midwest’s favor throughout the Interim Period through January 15, 2010.”

The financer objects to an order that has “the effect to supersede or prime Center Capital's security interests in the Collateral” from its loans. As such, Center Capital has asked that the judge deny the interim order on General Crane’s use of cash collateral.

Caterpillar Financial’s motion recounts its lending history with Gulfstream. According to the financer, as of the bankruptcy petition date General Crane owed “in excess of $6,000,000.” Similar to other General Crane creditors, Caterpillar had acquired this debt from pre-existing loans issued by other financial institutions – in this case, FCC Equipment Financing, Inc. and Banc of America Leasing & Capital, LLC. The loans were secured via equipment collateral, including ten Grove mobile cranes, a Manitowoc crawler, two Alimak Scando hoists, and at least five Linden Comansa tower cranes.

Prior to the bankruptcy, in September 2009, General Crane and Caterpillar had reached a “Modification Agreement” covering part ($4.8 million) the outstanding debt.

Caterpillar Financial’s principal objection to the order for General Crane’s use of cash collateral is that General Crane “fails to provide Caterpillar with proper adequate protection for the use of the Caterpillar Collateral and the Caterpillar Cash Collateral.”

The financer further argues that if General Crane is “allowed to rent Caterpillar’s Collateral, and use the proceeds of these rentals,” then it is entitled to protection in the form of “monetary payments as well as a replacement lien on any rents derived from Caterpillar’s Collateral.”

According to the motion, under the interim order General Crane can keep all proceeds earned from renting Caterpillar’s Collateral and use the money for “discretionary expenditures.” Meanwhile, payments to Caterpillar will be delayed and the financer will receive no compensation. Caterpillar thus believes that it is entitled to “exercise some control over the Debtor’s expenditures” of its cash collateral.

A hearing on the interim order on General Crane’s motion to use cash collateral is set for tomorrow, January 15, 2010, 9:30AM in Courtroom 308 of the U.S. Bankruptcy Court Fort Lauderdale Southern District of Florida.

Visit our Bankruptcy Page for more information on the case.

 

General Crane Creditor Seeks Crane Repossession in Bankruptcy Case

January 11, 2010

Equipment financer Center Capital Corporation, a creditor in the General Crane bankruptcy case, today filed a motion in bankruptcy court asking that the judge allow them to repossess four tower cranes.

The financer is requesting relief from the “Automatic Stay,” which prevents creditors from repossessing property during a bankruptcy case. The motion states that relief can be granted if the debtor has no equity in secured property or the property is not necessary for the debtor’s reorganization.

Center Capital had originally sued Gulfstream Crane, LLC (aka General Crane USA) in July, 2009 – five months prior to the bankruptcy petition – alleging that General Crane has defaulted on loan agreements. The financer alleged that Gulfstream has failed to make loan payments since March 5, 2009.

According the Center Capital’s motion, General Crane “has no equity in the cranes.”

The four Linden Comansa cranes used as collateral in the Center Capital loans to General Crane had an initial estimated total value of $1,775,000. However, the cumulative “deficiency values” on the loans, Center Capital alleges, is nearly $300,000. In total, General Crane owes the lender $2,074,712.80.

Center Capital also asserts that General Crane does not need the towers in question for its reorganization. As an example it cites the tower crane leased to the bankrupt Fontainebleau project in Las Vegas. “That crane” the lender states “is surely a burden to the Debtor’s estate as it generates no income for the estate.”

Lastly regarding its bid to repossess the cranes, Center Capital claims that its “has been provided with no evidence that Gulfstream or Debtor is maintaining appropriate insurance on the Equipment.”

In the event that the judge denies Center Capital’s relief for the Automatic Stay, the financer in its second motion requests that the court direct General Crane “to make immediate periodic cash payments for the continued possession and use of the Cranes.”

According to the financer, any proceeds generated by General Crane leasing equipment are also Center Capital’s collateral. However, General Crane “appears to be using cash proceeds from its nonconsensual subleasing of Cranes to finance its general post-petition operations,” which Center Capital argues, is “not appropriate.”

Center Capital further argues:

Debtor's failure to make periodic cash payments to Center Capital under Section 361 (1) of the Bankruptcy Code has and will result in the Cranes depreciating in value faster than payments are being received by Center Capital (of which at this time, there are none); and, as such, the Cranes is not being adequately protected.

As a result, the financer requested the following from the bankruptcy judge:

In the event that the Debtor does not make any of the required adequate protection payments, Center Capital requests that this Court issue an order, pursuant to Section 105 of the Bankruptcy Code, requiring Debtor to promptly turn over the Equipment to Center Capital.

For the latest news and filings on the General Crane bankruptcy case visit our Bankruptcy Page. Additionally, for background on Center Capital’s litigation history with General Crane, click HERE.

 

General Crane’s Reported Debts
to Related Parties

January 5, 2010

According to recently released bankruptcy case filings, General Crane USA owes money to at least four companies affiliated with owners James Robertson and Jason Retterath. The company owes additional money directly to Jason Retterath.

In its December 30 Financial Schedules and Statement of Financial Affairs filings General Crane does not disclose its owners’ interests in any of the companies listed in table below.

Related Parties with Claims against General Crane

Related Entity/Individual	Claim Listed in Schedule F	Claim Listed in Claim Register	Appears in Creditor Matrix
Hunter Crane	$393,028.98	$512,477.47	YES
Merchant Transport	$98,507.60	N/A	YES
Republic Crane Services, LLC	$25,344.00	N/A	YES
Republic Enterprises, LLC	N/A	N/A	YES
Republic Tower & Hoist, LLC	$19,520.98	N/A	YES
Jason S. Retterath	$14,560.65	N/A	YES

Gulfstream Crane, LLC (aka General Crane USA) co-owners James Robertson and Jason Retterath are officers and/or have ownership stakes in all of the above-listed companies.

On December 28 Hunter Crane – a fictitious business name of its corporate parent, Royal Crane, LLC – submitted a claim in the General Crane USA bankruptcy Claims Register, billing $512,477.47 for “services performed.”

James Robertson, Jason Retterath, and Steven Retterath appear as managing members for Hunter Crane in the company’s corporate records. Broward County Court records dated June 2004 show that Robertson held a 25% ownership stake in Hunter.

Merchant Transport – whose parent company is Palm Beach Trucking, LLC – is also managed by Robertson, Retterath, and Retterath. In an October 2008 court deposition Robertson states that he shares ownership of the company with Steven and Jason Retterath. Merchant has not yet submitted a filing in the Claims Register.

Republic Tower and Hoist, LLC is a Las Vegas-based crane rental company. Nevada corporate records cite two companies as officers for Republic. One of the companies, Southwestern Tower Crane & Hoist, LLC is controlled by James Robertson and Jason and Steven Retterath. Republic Crane Service, LLC, according to August 2008 court testimony by Robertson, is a labor company for Republic Tower. Robertson stated that he had a 25% ownership interest in Republic.

For additional information regarding companies affiliated to Robertson and Retterath, visit the About General Crane page. Also visit General Crane’s Bankruptcy page for the latest news and filings regarding the company’s bankruptcy proceedings.

New Details on General Crane
Creditor Payments

January 4, 2010

New filings in General Crane USA’s bankruptcy case reveal that the company had suspended check payments to most of its major secured creditors by September 2009. General Crane declared bankruptcy on December 8, 2009. General Crane’s recently filed bankruptcy schedules disclosed the list of eleven creditors holding claims secured by property of the debtor. The creditor list, in alphabetical order, is available in the chart below.

Creditor Name	Date Claim was Incurred	Amount of Claim
Banc of America Leasing LLC	06/29/2007	$8,066,102.00
Bank of Midwest N.A.	05/19/2006	$25,312,424.00
Center Capital Corp.	02/05/2008	$1,815,295.00
DCFS USA, LLC	10/09/2006	$32,257.00
DCFS USA, LLC	11/05/2009	$173,925.00
FCC Equipment Finance	09/18/2009	$4,282,189.00
Harry Fry	08/18/2008	$668,344.00
Mack Financial Svcs.	12/16/2008	$152,849.00
PNC Equipment Finance	10/03/2008	$1,892,845.00
SL Financial Services Corp.	11/25/2007	$25,472,614.00
US Bancorp	08/2009	$1,656,989.00
Wells Fargo Eq. Fin.	12/10/2007	$11,409,342.00

General Crane also had to submit its Statement of Financial Affairs that included, among other disclosures, the company’s “Check Register” for the three months preceding its bankruptcy petition. The register reveals the secured creditors that received payments during this time period. See the tables below for more details.

Secured Creditors Receiving Payment

Vendor	Type	Number	Date	Amount
Banc of America Leasing & Capital	Check	5048M	09/14/2009	$38,589.14
Banc of America Leasing & Capital	Check	5053M	09/28/2009	$75,558.77
Bank Midwest, N.A.	Check	5052M	09/28/2009	$116,354.38
DCFS USA, LLC	Bill Pmt - Check	7099	09/11/2009	$4,259.55
DCFS USA, LLC	Bill Pmt - Check	7282	10/07/2009	$1,552.67
DCFS USA, LLC	Bill Pmt - Check	7351	10/28/2009	$4,259.55
DCFS USA, LLC	Bill Pmt - Check	7368	11/04/2009	$1,552.67
DCFS USA, LLC	Bill Pmt - Check	7464	11/23/2009	$4,259.05
FCC Equipment Financing, Inc.	Check	5049M	09/18/2009	$81,788.70
Mack Financial Services	Check	7207	09/23/2009	$6,611.42
Mack Financial Services	Check	7349	10/27/2009	$6,611.42
Mack Financial Services	Check	7463	11/23/2009	$6,611.42
SL Financial Services Corp	Check	5054M	10/06/2009	$116,749.48
US Bancorp	Check	5050M	09/18/2009	$8,630.00

The last major creditor payment occurred on October 6, 2009, an $116,749.48 check to SL Financial Services Corporation. SL Financial sued General Crane a month later for allegedly defaulting on 14 separate loans.

Among the General Crane creditors that did not receive check payments during the final 90 days before the bankruptcy were the following: Center Capital Corporation, Harry Fry & Associates, PNC Equipment Finance, and Wells Fargo Equipment Finance.

Both Center Capital Corp. and Wells Fargo had filed suit against General Crane prior to the bankruptcy, alleging defaulted loan payments.

General Crane continued to make regular payments throughout October and November to two smaller secured creditors: Mack Financial Services, which finances the purchase of Mack Trucks, and DCFS USA, LLC (Daimler Financial Services), which provides automotive and commercial vehicle financing.

During the 90 days covered in the check register, General Crane paid a total of $473,388.22 to secured creditors holding nearly $81 million dollars in company debt. As noted in the previous update, during this same time period General Crane paid $250,000 to company insiders.

For more information visit the General Crane Bankruptcy Page.

 

General Crane USA “Surrenders” Equipment to FCC Financial

January 4, 2010

FCC Equipment Financing, Inc., the lending division for Caterpillar, repossessed five tower cranes and two construction hoists from General Crane USA, according to recent bankruptcy court filings.

General Crane in its “Statement of Financial Affairs” filing for its bankruptcy is required in part 5 to cite all property repossessed within one year preceding the case. The company, in Exhibit K of the filing, lists the following equipment that “has been surrendered to FCC Equipment Financing.”

Make/Model	Serial Number
Alimak Scando 650FC32/391	23259
Alimak Scando 650FC32/391	23210
Linden Comansa 21LC400 18T	14.424
Linden Comansa 21LC400 18T	14.425
Linden Comansa 19LC140	14.439
Linden Comansa 19LC140	14.442
Linden Comansa 19LC140	14.444

It is unclear when exactly FCC Equipment Financing took possession of the above-listed equipment. However, the General Crane-issued documents detailing the repo’d equipment appear to be dated early September 2009. The documents include the title “Strict Foreclosure Agreement.”

In addition to the five Comansa towers cited here, General Crane lost sixteen leased tower cranes that manufacturer Linden Comansa allegedly removed from General’s Houston yard in the summer 2009.

 

General Crane Payments to Insiders Disclosed in Bankruptcy Filings

January 4, 2010

Recent court filings in General Crane USA’s bankruptcy case have revealed a series of closing payments to company insiders. These documents disclose that in the five days immediately preceding General Crane’s December 8 bankruptcy petition the company paid insiders nearly $200,000. In the final week they paid everyone else less than $80,000.

As noted earlier on this site, Gulfstream Crane, LLC (aka General Crane USA) recently submitted its “Statement of Financial Affairs” along with its “Summary of Schedules,” both of which provide detailed company financial information, including accounts payable, creditor claims, property and equipment inventories, executive payments, and a check register among other listings.

The General Crane USA “Check Register” lists all checks issued by the company during the 90 days preceding its bankruptcy (September 9 to December 7). The register reveals that during this period General Crane wrote five separate bill payment checks to individuals or corporate entities with insider relationships totaling exactly $250,000.

The company issued three checks to affiliate company Republic Enterprises, LLC, amounting to $151,000. Republic, which is co-owned by General Crane principals Jason Retterath and James Robertson, owns a mobile home lot in Pompano Beach, Florida as well as crane yards in Fairburn, Georgia and Houston, Texas. According to Schedule G of the bankruptcy filing Republic leases the Fairburn and Houston yards to General Crane for $20,000 per month, each.

General Crane also made two payments totaling $99,000 to Steven Retterath, Jason’s father. Steven personally owns General Crane’s headquarters yard in Pompano Beach, Florida and has a lease agreement with the company that pays him $25,000 a month. Information relating to the check payments is listed below.

Insider Payments

Vendor	Type	Number	Date	Amount
Steve Retterath	Bill Pmt - Check	7273	10/01/2009	$33,000.00
Republic Enterprises, LLC AP	Bill Pmt - Check	7274	10/01/2009	$21,400.00
Republic Enterprises, LLC AP	Bill Pmt - Check	4136M	12/04/2009	$42,800.00
Steve Retterath	Bill Pmt - Check	4137M	12/04/2009	$66,000.00
Republic Enterprises, LLC AP	Bill Pmt - Check	4134M	12/05/2009	$86,800.00

As highlighted in the chart above, on December 4 and 5, less than a week before the bankruptcy, General Crane wrote checks for $195,600 to company insiders.

In fact, this figure is more than double the amount of all other checks the company issued in December before declaring bankruptcy – $78,897.26. See the chart below for more details.

December Payments to Other Vendors

Vendor	Type	Number	Date	Amount
Moffitt Oil	Bill Pmt - Check	4128M	12/02/2009	$16,250.00
Rollins Fleet Service - Vendor	Bill Pmt - Check	4131M	12/02/2009	$10,000.00
AMEX	Check	4132M	12/03/2009	$25,000.00
Texas Sales Tax	Sales Tax Payment	DBT11-2009	12/04/2009	$19,302.38
Lance Oil Company	Bill Pmt - Check	4138M	12/07/2009	$5,433.32
Moffitt Oil	Bill Pmt - Check	4139M	12/07/2009	$3,911.56
			Total	$78,897.26

 

 

 

 

 

 

We will continue to provide documentation and analysis of General Crane USA’s bankruptcy case. For more information visit our Bankruptcy Page.

 

Gulfstream Crane Files Financial Schedules and Statement of Financial Affairs

January 4, 2010

After requesting another extension of time, Gulfstream Crane filed extensive financial schedules and statements in its bankruptcy proceedings. The following documents are now available on our Gulfstream Crane Bankruptcy page:

Schedules A – H

Schedules Part 1 – Gulfstream lists total assets of $80,592,722 and liabilities of $84,155,742.14. Part 1 also contains an Accounts Receivable listing which includes dozens of customers including Formworks, BE&K Construction, Zachry Construction and Skanska USA. Also listed are amounts due from related companies Republic Tower & Hoist, Hunter Crane and Merchant Transport.

Schedules Part 2 – Contains the conclusion of the Accounts Receivable list, and the first 14 pages of an Asset Depreciation Report, which lists all assets currently owned by Gulfstream, from office equipment to cranes.

Schedules Part 3 – Contains the conclusion of the Asset Report. In Schedule D, twelve creditors holding secured claims are disclosed. The largest of these are SL Financial with a claim of $25.5 million, and Bank Midwest (incorrectly listed as Bank of Midwest) with a claim of $25.3 million. Part 3 also includes Schedule E, Creditors Holding Unsecured Priority Claims (taxing authorities, benefit plans and employees), and the first few pages of Schedule F, Creditors Holding Unsecured Nonpriority Claims.

Schedules Part 4 – Contains the bulk of Schedule F, listing dozens more unsecured nonpriority creditors.

Schedules Part 5 – Includes the conclusion of Schedule F, giving a $2,879,377.14 total for unsecured nonpriority claims. Also includes Schedule G (Contracts and Leases), and Schedule H (Codebtors – United Crane & Rigging, Jason Retterath, James Robertson and Steve Retterath).

Statement of Financial Affairs

Financial Affairs Part 1 –Includes a Check Register from September 9, 2009 to December 7, 2009 (which includes large payments to Hunter Equipment, Republic Enterprises and Steve Retterath). Part 1 also lists all property “seized” by Linden-Comansa and “surrendered to” FCC Equipment Financing.

Financial Affairs Part 2 – Includes the following: Jason Retterath and James Robertson's compensation from December 8, 2008 through December 8, 2009 was $437,500 and $435,288, respectively. Messrs. Retterath and Robertson received medical and dental benefits (approximately $9,600 each year), 401(k) and leased vehicles ($766.00 per month for Retterath and $177.00 per month for Robertson).

Cranewatchdog.com will continue to monitor Gulfstream Crane’s bankruptcy case, and will post additional filings from the case as they become available.

New Details on General Crane
Creditor Payments

January 4, 2010

New filings in General Crane USA’s bankruptcy case reveal that the company had suspended check payments to most of its major secured creditors by September 2009. General Crane declared bankruptcy on December 8, 2009. General Crane’s recently filed bankruptcy schedules disclosed the list of eleven creditors holding claims secured by property of the debtor. The creditor list, in alphabetical order, is available in the chart below.

Creditor Name	Date Claim was Incurred	Amount of Claim
Banc of America Leasing LLC	06/29/2007	$8,066,102.00
Bank of Midwest N.A.	05/19/2006	$25,312,424.00
Center Capital Corp.	02/05/2008	$1,815,295.00
DCFS USA, LLC	10/09/2006	$32,257.00
DCFS USA, LLC	11/05/2009	$173,925.00
FCC Equipment Finance	09/18/2009	$4,282,189.00
Harry Fry	08/18/2008	$668,344.00
Mack Financial Svcs.	12/16/2008	$152,849.00
PNC Equipment Finance	10/03/2008	$1,892,845.00
SL Financial Services Corp.	11/25/2007	$25,472,614.00
US Bancorp	08/2009	$1,656,989.00
Wells Fargo Eq. Fin.	12/10/2007	$11,409,342.00

General Crane also had to submit its Statement of Financial Affairs that included, among other disclosures, the company’s “Check Register” for the three months preceding its bankruptcy petition. The register reveals the secured creditors that received payments during this time period. See the tables below for more details.

Secured Creditors Receiving Payment

Vendor	Type	Number	Date	Amount
Banc of America Leasing & Capital	Check	5048M	09/14/2009	$38,589.14
Banc of America Leasing & Capital	Check	5053M	09/28/2009	$75,558.77
Bank Midwest, N.A.	Check	5052M	09/28/2009	$116,354.38
DCFS USA, LLC	Bill Pmt - Check	7099	09/11/2009	$4,259.55
DCFS USA, LLC	Bill Pmt - Check	7282	10/07/2009	$1,552.67
DCFS USA, LLC	Bill Pmt - Check	7351	10/28/2009	$4,259.55
DCFS USA, LLC	Bill Pmt - Check	7368	11/04/2009	$1,552.67
DCFS USA, LLC	Bill Pmt - Check	7464	11/23/2009	$4,259.05
FCC Equipment Financing, Inc.	Check	5049M	09/18/2009	$81,788.70
Mack Financial Services	Check	7207	09/23/2009	$6,611.42
Mack Financial Services	Check	7349	10/27/2009	$6,611.42
Mack Financial Services	Check	7463	11/23/2009	$6,611.42
SL Financial Services Corp	Check	5054M	10/06/2009	$116,749.48
US Bancorp	Check	5050M	09/18/2009	$8,630.00

The last major creditor payment occurred on October 6, 2009, an $116,749.48 check to SL Financial Services Corporation. SL Financial sued General Crane a month later for allegedly defaulting on 14 separate loans.

Among the General Crane creditors that did not receive check payments during the final 90 days before the bankruptcy were the following: Center Capital Corporation, Harry Fry & Associates, PNC Equipment Finance, and Wells Fargo Equipment Finance.

Both Center Capital Corp. and Wells Fargo had filed suit against General Crane prior to the bankruptcy, alleging defaulted loan payments.

General Crane continued to make regular payments throughout October and November to two smaller secured creditors: Mack Financial Services, which finances the purchase of Mack Trucks, and DCFS USA, LLC (Daimler Financial Services), which provides automotive and commercial vehicle financing.

During the 90 days covered in the check register, General Crane paid a total of $473,388.22 to secured creditors holding nearly $81 million dollars in company debt. As noted in the previous update, during this same time period General Crane paid $250,000 to company insiders.

For more information visit the General Crane Bankruptcy Page.

 

General Crane USA “Surrenders” Equipment to FCC Financial

January 4, 2010

FCC Equipment Financing, Inc., the lending division for Caterpillar, repossessed five tower cranes and two construction hoists from General Crane USA, according to recent bankruptcy court filings.

General Crane in its “Statement of Financial Affairs” filing for its bankruptcy is required in part 5 to cite all property repossessed within one year preceding the case. The company, in Exhibit K of the filing, lists the following equipment that “has been surrendered to FCC Equipment Financing.”

Make/Model	Serial Number
Alimak Scando 650FC32/391	23259
Alimak Scando 650FC32/391	23210
Linden Comansa 21LC400 18T	14.424
Linden Comansa 21LC400 18T	14.425
Linden Comansa 19LC140	14.439
Linden Comansa 19LC140	14.442
Linden Comansa 19LC140	14.444

It is unclear when exactly FCC Equipment Financing took possession of the above-listed equipment. However, the General Crane-issued documents detailing the repo’d equipment appear to be dated early September 2009. The documents include the title “Strict Foreclosure Agreement.”

In addition to the five Comansa towers cited here, General Crane lost sixteen leased tower cranes that manufacturer Linden Comansa allegedly removed from General’s Houston yard in the summer 2009.

 

General Crane Payments to Insiders Disclosed in Bankruptcy Filings

January 4, 2010

Recent court filings in General Crane USA’s bankruptcy case have revealed a series of closing payments to company insiders. These documents disclose that in the five days immediately preceding General Crane’s December 8 bankruptcy petition the company paid insiders nearly $200,000. In the final week they paid everyone else less than $80,000.

As noted earlier on this site, Gulfstream Crane, LLC (aka General Crane USA) recently submitted its “Statement of Financial Affairs” along with its “Summary of Schedules,” both of which provide detailed company financial information, including accounts payable, creditor claims, property and equipment inventories, executive payments, and a check register among other listings.

The General Crane USA “Check Register” lists all checks issued by the company during the 90 days preceding its bankruptcy (September 9 to December 7). The register reveals that during this period General Crane wrote five separate bill payment checks to individuals or corporate entities with insider relationships totaling exactly $250,000.

The company issued three checks to affiliate company Republic Enterprises, LLC, amounting to $151,000. Republic, which is co-owned by General Crane principals Jason Retterath and James Robertson, owns a mobile home lot in Pompano Beach, Florida as well as crane yards in Fairburn, Georgia and Houston, Texas. According to Schedule G of the bankruptcy filing Republic leases the Fairburn and Houston yards to General Crane for $20,000 per month, each.

General Crane also made two payments totaling $99,000 to Steven Retterath, Jason’s father. Steven personally owns General Crane’s headquarters yard in Pompano Beach, Florida and has a lease agreement with the company that pays him $25,000 a month. Information relating to the check payments is listed below.

Insider Payments

Vendor	Type	Number	Date	Amount
Steve Retterath	Bill Pmt - Check	7273	10/01/2009	$33,000.00
Republic Enterprises, LLC AP	Bill Pmt - Check	7274	10/01/2009	$21,400.00
Republic Enterprises, LLC AP	Bill Pmt - Check	4136M	12/04/2009	$42,800.00
Steve Retterath	Bill Pmt - Check	4137M	12/04/2009	$66,000.00
Republic Enterprises, LLC AP	Bill Pmt - Check	4134M	12/05/2009	$86,800.00

As highlighted in the chart above, on December 4 and 5, less than a week before the bankruptcy, General Crane wrote checks for $195,600 to company insiders.

In fact, this figure is more than double the amount of all other checks the company issued in December before declaring bankruptcy – $78,897.26. See the chart below for more details.

December Payments to Other Vendors

Vendor	Type	Number	Date	Amount
Moffitt Oil	Bill Pmt - Check	4128M	12/02/2009	$16,250.00
Rollins Fleet Service - Vendor	Bill Pmt - Check	4131M	12/02/2009	$10,000.00
AMEX	Check	4132M	12/03/2009	$25,000.00
Texas Sales Tax	Sales Tax Payment	DBT11-2009	12/04/2009	$19,302.38
Lance Oil Company	Bill Pmt - Check	4138M	12/07/2009	$5,433.32
Moffitt Oil	Bill Pmt - Check	4139M	12/07/2009	$3,911.56
			Total	$78,897.26

 

 

 

 

 

 

We will continue to provide documentation and analysis of General Crane USA’s bankruptcy case. For more information visit our Bankruptcy Page.

 

Gulfstream Crane Files Financial Schedules and Statement of Financial Affairs

January 4, 2010

After requesting another extension of time, Gulfstream Crane filed extensive financial schedules and statements in its bankruptcy proceedings. The following documents are now available on our Gulfstream Crane Bankruptcy page:

Schedules A – H

Schedules Part 1 – Gulfstream lists total assets of $80,592,722 and liabilities of $84,155,742.14. Part 1 also contains an Accounts Receivable listing which includes dozens of customers including Formworks, BE&K Construction, Zachry Construction and Skanska USA. Also listed are amounts due from related companies Republic Tower & Hoist, Hunter Crane and Merchant Transport.

Schedules Part 2 – Contains the conclusion of the Accounts Receivable list, and the first 14 pages of an Asset Depreciation Report, which lists all assets currently owned by Gulfstream, from office equipment to cranes.

Schedules Part 3 – Contains the conclusion of the Asset Report. In Schedule D, twelve creditors holding secured claims are disclosed. The largest of these are SL Financial with a claim of $25.5 million, and Bank Midwest (incorrectly listed as Bank of Midwest) with a claim of $25.3 million. Part 3 also includes Schedule E, Creditors Holding Unsecured Priority Claims (taxing authorities, benefit plans and employees), and the first few pages of Schedule F, Creditors Holding Unsecured Nonpriority Claims.

Schedules Part 4 – Contains the bulk of Schedule F, listing dozens more unsecured nonpriority creditors.

Schedules Part 5 – Includes the conclusion of Schedule F, giving a $2,879,377.14 total for unsecured nonpriority claims. Also includes Schedule G (Contracts and Leases), and Schedule H (Codebtors – United Crane & Rigging, Jason Retterath, James Robertson and Steve Retterath).

Statement of Financial Affairs

Financial Affairs Part 1 –Includes a Check Register from September 9, 2009 to December 7, 2009 (which includes large payments to Hunter Equipment, Republic Enterprises and Steve Retterath). Part 1 also lists all property “seized” by Linden-Comansa and “surrendered to” FCC Equipment Financing.

Financial Affairs Part 2 – Includes the following: Jason Retterath and James Robertson's compensation from December 8, 2008 through December 8, 2009 was $437,500 and $435,288, respectively. Messrs. Retterath and Robertson received medical and dental benefits (approximately $9,600 each year), 401(k) and leased vehicles ($766.00 per month for Retterath and $177.00 per month for Robertson).

Cranewatchdog.com will continue to monitor Gulfstream Crane’s bankruptcy case, and will post additional filings from the case as they become available.

Court Grants Gulfstream an Extension
to File Financial Documents

December 21, 2009

On Friday the United States Bankruptcy Court, Southern District of Florida issued an order granting Gulfstream Crane, LLC’s motion for an extension of time with which to file Schedules A-H and their Statement of Financial Affairs. These documents were originally due tomorrow, December 22 - Gulfstream’s motion erroneously stated that they were due the 23rd - and are now due to the court on December 28, 2009.

Schedules A-H, as well as the Statement of Financial affairs, are some of the most important filings in a bankruptcy case because they provide a detailed look at the company’s current finances and payments leading up to the bankruptcy. They will provide an exhaustive inventory of Gulfstream’s assets and creditors as well as any insider payments that have taken place, what properties have been seized or foreclosed upon and much more.

 

Creditor Claims Against Gulfstream Crane
Now Available

December 18, 2009

The first two of what could be hundreds of creditor claims against Gulfstream Crane have been filed with the Bankruptcy Court, and Cranewatchdog.com will provide copies of all claims on our Bankruptcy page.

So far Gulfstream Crane has a Creditor List of 213 creditors, and the list is growing steadily. The Bankruptcy Court issued a Notice of Meeting of Creditors, which gives a claims deadline of April 5, 2010.

If you are a creditor of Gulfstream Crane, see the Notice and our December 10, 2009 update below for more information on filing a claim.

Does Gulfstream Crane (DBA General Crane USA) Owe You Money????

December 10, 2009

General Crane submitted a Creditor List to the United States Bankruptcy Court, Southern District of Florida. In it Gulfstream Crane listed the following companies as creditors in the bankruptcy:

A	ABC, Central Florida Chapter	AC Love	Ace Hardware – Beamer
	Action Tire Company	Ahern Jasco & Company	Airgas SW
	Alklean Ind	All Service Refuse AP	Allied Waste Services #855
	American Allstate Backflow	American Crane Services	American Crane Services
	American Transport Systems	Andy Thrash	Anixter, Inc
	AT&T	Atlantic Radio	ATS Specialized
B	Bank Midwest, NA	Barnes Distribution	Baymont Inn Houston Hobby Airport
	Beasley Forest Products Inc	Berger Singerman PA	BJ’s Wholesale Club
	Briggs Equipment	Broward Bolt	Bryan Dudley
	Bulldog Supply, Inc
C	C Port Consolidated	Capital Office Products	Cargo Logistics Network
	CCMSI	CECO Chemicals Mfg	Center Capital Corporation
	Central Pony Express Inc	Charlie’s Auto Glass Installers	Chris Huhn
	Cintas First Aid & Safety	Civil and Structural Engineers Inc	Clausing Ind Inc
	Cliff Goddard	Coastal Truck & Heavy Duty Parts	Cobb Wire Rope and Sling Company
	Commercial Armature	Consolidated Rigging & Marine	Construction Assn of S Florida
	Construction Executives Assn	County Auto Parts	Crane Safety & Inspection
	CY-Fair Tire
D	Day & Nite Marketing	Deep South Cranes	Dell marketing LP
	DeVries Property LP	Diamond Hydraulics Inc	Digital Shock Design
	DISA Inc.	Dixon Equipment Services, Inc
E	Enterprise Fleet Services	Executives Association
F	Fasco Fasteners	Fast Lane Services	Federal Express
	Finish Masters	Fisher & Phillips LLP	Fleetwash, Inc
	Fulton County Tax Commissioner
G	G & K Services – FL	G & K Services – GA	G & K Services – TX
	GA Dept of Transportation	Galveston County Tax Assessor-Collector	GCR Tire Centers
	General Labor Staffing Services Inc	Gerstle, Minis sale & Snelson, LLP	Glenn Machine Works Inc
	Global Response	Gold Stone Auto Glass	Grainger
	Gulf Special Services Inc
H	H & E Equipment Services Inc	Hampton Inn- Atlanta/Fairburn	HD Supply White Cap Construction Supply
	Houston Area Safety Council	Houston Truck Parts, Inc	Hunter Crane
	Hunter Equipment Inc
I	Imperial A I Credit Companies Inc	Industrial Sales Inc	Integrated Turf Care, LLC
	ISTC
J	Joseph P Klapholz, PA	Karl M Pederson
K	Kauffts of Palm Beach	Kelly Kronenberg Gilmartin
L	L & L Distributors	La Quinta Inn & Suites Biloxi	La Quinta Inn & Suites Boerne
	La Quinta Inn & Suites College Station	La Quinta Inn & Suites Dallas Arlington N	La Quinta Inn & Suites Dallas NW
	La Quinta Inn & Suites DFW Airport S	La Quinta Inn & Suites El Paso Airport	La Quinta Inn & Suites Fort Pierce
	La Quinta Inn & Suites Ft. Worth SW	La Quinta Inn & Suites Houma	La Quinta Inn & Suites Lafayetta
	La Quinta Inn & Suites Moss Point	La Quinta Inn & Suites Pearland	La Quinta Inn & Suites Phoenix Scottsdal
	La Quinta Inn Brandon Jackson Airport	La Quinta Inn Dallas East	La Quinta Inn Dallas Grand Prairie
	La Quinta Inn Dallas Plano East	La Quinta Inn Deerfield Beach I-95/ Hills	La Quinta Inn El Paso Cielo Vista
	La Quinta Inn Ft. Worth West Medical Center	La Quinta Inn Houston East	La Quinta Inn Huntsville Madison Square
	La Quinta Inn Huntsville Space Center	La Quinta Inn Jacksonville Airport North	La Quinta Inn Mobile
	La Quinta Inn Orlando International Dr N	La Quinta Inn Pensacola	La Quinta Inn San Antonio Airport
	La Quinta Inn San Antonio Downtown	La Quinta Inn Vidor	Lance Oil Company
	Lance Wrecker Service	Lank Oil Company	LC Clark
	LCA	Liebherr Cranes	Liebherr Nenzing Crane Co
	Load Systems International	Lyle Halsey
M	M & H	Manchester Sling Company	Marlow Connell Valerius
	Martino Commercial Tire & Service	Matheson tri-Gas Inc	Maxigraphics
	McKinsey Steel	Merchant Transport AP	Michael D Seese Esq
	Miller Bearings	Mobile Mini, Inc	Motion Industries
	Motor Carrier Express Inc	MSC	Munsch, Hardt, Kopf & Harr, PC
N	Neward Electronics
O	Office of the US Trustee	Occupational Health Centers of Southwest
P	Padgett, Inc	Park Row Printing	Patriot Underwriters, Inc
	Penco Electrical Contractors, Inc	Phone Communications, Inc	PIC Crane Safety Services, LLC
	Praxair	Premium Assignment Corp	Professional Guard and Patrol Inc
R	Randall Rents of Florida, Inc	Rechtien International Trucks, Inc	Reed Construction Data
	Remote Dynamics, Inc	Republic Crane Services LLC	Republic Enterprises, LLC
	Republic Tower & Hoist LLC	Ring Power	Ritz Safety
	RJ’s Waste Services	Roanoke trade Services, Inc	RSM McGladrey
	Rudy Amador
S	Scott-Macon Equipment Rental, Inc	Sea to Sea Logistics	Service Experts
	Service Radio Rentals, LLC	SGI, Inc	Signs & Graphics by RJ
	SL Financial Services Corporation	Southern Protection Agency, Inc	Staffing Now, Inc
	Stage Battery	Stanley Convergent Securities Solutions	Sun Coast Resources, Inc
T	T.C. Inspection, Inc	Technical Resources Center	Texas Outhouse
	Thomas C. Haltom	Toshiba (Copier Rental)	Toshiba (Supplies & Overage)
	Total Truck Parts	Triple S Steel Supply Co
U	United Healthcare	US Health Works	USI Insurance
V	Vacon, Inc	Verizon
W	Walker Shivery	Water and Wastewater Services	Weiss Serota Helfman
	Wells Fargo Equipment Finance	Wholesale Auto Radiator
X	Xerox Corporation
Y	Yellow Freight (YRC)
Z	ZZ -Jason S. Retterath	ZZ- Rudy Ferreira

According to the Notice of Chapter 11 Bankruptcy Case, Meeting of Creditors, & Deadlines submitted by the Bankruptcy Court, if you or your company are a creditor to Gulfstream Crane, LLC, the deadline for a Proof of Claim form to be received by the Clerk of the United States Bankruptcy Court, Southern District of Florida’s office is March 4, 2010 (governmental units have until June 7, 2010). “If your claim is not listed at all or if your claim is listed as disputed, contingent, or unliquidated, then you must file a Proof of Claim by the ‘Deadline to File a Proof of Claim’ . . . or you might not be paid any money on your claim against the debtor . . . Filing a Proof of Claim submits the creditor to the jurisdiction of the bankruptcy court, with consequences a lawyer can explain.”

Clerk of the Bankruptcy Court:
Katherine Gould Feldman
Federal Building 299 E Broward Blvd, Room 112
Ft Lauderdale, FL 33301
Telephone: (954) 769-5700

A Meeting of Creditors will take place at 2:30pm on January 5, 2010 at the U.S. Courthouse.

For further information of the Gulfstream Crane, LLC Bankruptcy click here.

New Page on
Gulfstream Crane, LLC Bankruptcy

December 9, 2009

A new page dedicated to Gulfstream Crane’s Bankruptcy is now available on this site. Gulfstream Crane, LLC (aka General Crane USA) filed for Chapter 11 Bankruptcy protection yesterday, claiming over $100 million in liabilities versus only $79 million in assets.

U.S. Bankruptcy Court
Southern District of Florida (Fort Lauderdale)
Bankruptcy Petition #: 09-37091-RBR

Debtor Gulfstream Crane, LLC
1360 NW 33rd Ave Pompano Beach, FL 33064
Tax ID / EIN: 65-1128578

Bankruptcy Petition
20 Largest Creditors
Gulfstream Crane Equity Holders
Gulfstream Crane Ownership Statement
Gulfstream Crane Declaration