NSB Corp., the former Hemdale Film Corp., was given an extended deadline of Friday to pay off angry creditors or consider converting an involuntary Chapter 7 liquidation bankruptcy into a Chapter 11 reorganization.
The deadline was reset as the group of creditors imposing the involuntary bankruptcy against the indie continues to expand.
Chase is on
Now Chase Manhattan Bank N.A. has filed a notice of joinder in U.S. Bankruptcy Court in Los Angeles to the previously filed petition.
Chase claims it is owed $ 738,611 plus interest of $ 109.68 a day following a judgment entered on Oct. 29, 1991.
With the addition of Chase, outstanding claims Hemdale would have to pay by Friday hover close to $ 36 million.
Sources said Chase reportedly holds additional claims, which are unsecured.
But those claims, subject to other pending litigation, were not listed in the joinder filed Friday.
Hyde to consult
Yesterday, entertainment restructuring specialist John Hyde’s name surfaced as the consultant who may be brought in to help steer the company through the Chapter 11 reorganization course it is expected to take, inside sources said.
NSB’s attorney Leslie Cohen, a partner in the law firm of Levene & Eisenberg, acknowledged Chase’s claim and the Friday deadline extension.
The deadline previously had been set for Sunday.
“Because of the very tight time constraints, the company is exploring all of its alternatives,” she noted. “One of the alternatives it is looking at how it would operate if forced into a Chapter 11.”
She sidestepped saying that is definitely the route NSB/Hemdale would take.
Should a Chapter 11 conversion occur, Cohen said the firm “may look to employing an outside consultant.” She declined specifics.