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Sazka, Lehman, ShengdaTech, Pinnacle Point Units: Bankruptcy

Aug. 23 (Bloomberg) -- International bondholders for Sazka AS, the bankrupt Czech lottery operator, said they oppose terms for the sale of the business as proposed by bankruptcy administrator Josef Cupka.

“The international holders call on Mr. Cupka to reconsider the terms of the tender as a matter of urgency,” the law firm Dewey & LeBoeuf LLP said in a statement in Prague. The legal firm represents investors holding more than 25 percent of Sazka’s 2021 bonds.

The statement said the bondholders believe the terms of the tender “are prejudicial” to their interests and “won’t maximize returns to Sazka’s creditors.”

The Prague Municipal Court, which put the company into bankruptcy in May, approved the terms for Sazka’s tender proposed by its administrator and the creditors’ committee last week. The terms include a 500 million-koruna ($29.35 million) deposit from each bidder before doing due diligence on the company. The price offered by bidders will be the main criterion for choosing the new owner.

Canary Wharf Agrees Not to Vote Against Lehman Liquidation Plan

Canary Wharf Group Plc, saying it won’t vote against Lehman Brothers Holdings Inc.’s amended liquidation plan, agreed to reduce its claims against the collapsed bank to $780 million from $4.5 billion.

Under an agreement with the London real estate developer, Lehman will reserve against payment an amount equal to what would have been provided had the debt been classified as senior unsecured claims in the amended plan, according to a filing in U.S. Bankruptcy Court in Manhattan.

Lehman had earlier disputed Canary Wharf’s $4.5 billion in claims, filed in September 2009, according to the filing. The agreement is subject to bankruptcy court approval.

Lehman, Canary Wharf Group’s largest tenant, occupied more than 1 million square feet (93,000 square meters) of office space at London’s 20-25 Bank Street in 2003 on a 30-year lease. Canary Wharf filed three claims in 2009, including a $4.3 billion claim in rent and charges for units on Heron Quays. The Heron Quays claim was reduced to $770 million, according to the filing.

ShengdaTech Board Sues CEO in Chinese Reverse Merger Case

Board members of ShengdaTech Inc., a Chinese company that gained access to U.S. investors through a reverse merger, sued the chief executive officer of the bankrupt chemical maker, claiming he’s obstructing an internal fraud investigation.

A special committee of ShengdaTech sued Chen Xiangzhi to prevent him from regaining control of the company, ending a probe of its finances and ousting a newly appointed chief restructuring officer.

Reorganizing ShengdaTech requires “the continued existence of the special committee and the CRO, and the preservation of their independent powers,” the board members said in court papers filed Aug. 20 in U.S. Bankruptcy Court in Reno, Nevada.

Chen could not be immediately reached for comment at ShengdaTech offices, where no one answered the phone before business hours in China.

The company listed $295.4 million in assets and $180.9 million in debt as of last Sept. 30 in court papers the special committee filed Aug. 19.

Danish Banks No Better Buy After Rescue Proposals, PFA Says

Denmark’s second-biggest pension fund is under-weighting its holding of Danish financial stocks as government efforts to ease the country’s banking crisis fail to win over investors.

“We would need to see both an improvement in the macro economy and a new government bank package before we would change our view,” Glenn Martin Vestergaard, senior portfolio manager at PFA, said in an interview. The Copenhagen-based fund has about 285 billion kroner ($55 billion) in investment assets.

Danish financial stocks have underperformed the country’s equity market this year after the economy contracted and two regional banks failed, triggering the European Union’s first senior creditor losses within a resolution framework. Policy makers have struggled to repair the damage as banks face a funding drought that’s likely to worsen when a state guarantee expires in 2013.

Shares of the country’s three biggest banks have lost more than a third of their value this year, compared with a 25 percent decline in the benchmark OMX Copenhagen Index of 189 companies. Bank stocks were today’s biggest losers in the index, with the sub-index dropping 3 percent compared with a 0.7 percent decline for the overall gauge.

ISDA Rules No Bankruptcy Credit Event at Spain’s CAM

The International Swaps & Derivatives Association ruled there hasn’t been a bankruptcy credit even at Caja de Ahorros del Mediterraneo, according to a statement on its website.

Pinnacle Point Says Five of Its Units Placed Into Liquidation

Pinnacle Point Group Ltd. said yesterday five of its businesses have been placed in provisional liquidation.

To contact the reporter on this story: Heather Smith in Paris at

To contact the editor responsible for this story: Anthony Aarons at

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