/raid1/www/Hosts/bankrupt/TCR_Public/060906.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Wednesday, September 6, 2006, Vol. 10, No. 212
Headlines
AAR CORP: Closes New $140 Million Revolving Credit Facility
AIRWAY INDUSTRIES: Panel Taps Donlin Recano as Information Agent
ANDREW DIZE: Case Summary & 16 Largest Unsecured Creditors
AQUILA INC: S&P Upgrades Corporate Credit Rating to B from B-
ARLINGTON HOSPITALITY: Plan Filing Period Extended to Oct. 30
ASARCO LLC: Asbestos Panel & FCR File Brief Supporting Jury Trial
ASARCO LLC: Wants to Assume Mining Equipment Lease with BofA
ASARCO LLC: Court Approves Bidding Procedures for El Paso Property
ASPEON INC: Files 2001 Annual Report With Going Concern Opinion
ATARI INC: Hires David Pierce President & Chief Executive Officer
BEST MANUFACTURING: Taps Levett Rockwod as Special Counsel
BEST MANUFACTURING: Has Until September 23 to File Schedules
BLAST ENERGY: June 30 Working Capital Deficit Tops $1.1 Million
BTSC HOLDINGS: S&P Withdraws B- Corp. Credit & CCC+ Sr. Ratings
BUFFALO COAL: Barton Mining Meeting of Creditors Set on Sept. 26
BUFFALO COAL: Panel Wants Chapter 11 Trustee Appointed in 3 Cases
CARMIKE CINEMAS: S&P Holds B- Corp. Credit Rating on Neg. Watch
COMPLETE RETREATS: Selling Via De Fortuna Furnishings for $25,000
COMPLETE RETREATS: Wants to Employ Ordinary Course Professionals
CONSOLIDATED ENERGY: June 30 Balance Sheet Upside-Down by $2.2MM
CONTINENTAL AIRLINES: Hints at Cost of Raised Security Alerts
DANA CORP: Wants Until May 2007 to Remove State Court Actions
DANA CORP: Judge Lifland Okays Sale of Hydraulic Assets to Bosch
DANA CORP: Expands Signature's Retention Scope & Pays $10K Fee
DEATH ROW: Bankruptcy Court Sets Claims Deadline on October 31
DEG DEVELOPMENT: Case Summary & 20 Largest Unsecured Creditors
DELTA AIR: Court Approves Termination of Pilot Pension Plan
ECOLOCLEAN IND: Balance Sheet Upside-Down by $2 Mil. at June 30
ENZON PHARMACEUTICALS: Has $48.4 Mil. Capital Deficit at June 30
FORD MOTOR: Names Alan Mulally as President and CEO
FORD MOTOR: Looks at New Business Models to Ensure Recovery
FRIEDE GOLDMAN: Liquidating Trust Life Extended for 3 More Years
GLOBAL HOME: Court Approves WearEver Sale to Groupe SEB for $36MM
GLOBAL HOME: WearEver Sale Incentive Program Gets Court's Nod
GS MORTGAGE: Fitch Lowers Class B-2 Certificates' Rating to BB+
HOLLINGER INC: Ontario Ct. Issues Asset Freeze Order on Lord Black
INCO LTD: Terminates Merger Agreement with Phelps Dodge
INTEL CORP: Plans to Cut 10,500 Jobs by Mid-2007
INTELSAT LTD: June 30 Stockholder's Deficit Widens to $331 Million
INTERNATIONAL PAPER: Closes Sale of Brazilian Units to Stora
KAISER ALUMINUM: Settles Dispute Over 3 Products Coverage Insurers
KAISER ALUMINUM: Says Agrium's Move to Pursue Claim is Meritless
KANSAS CITY SOUTHERN: S&P Affirms B Corporate Credit Rating
KIWA BIO-TECH: Capital Infusion Narrows Equity Deficit at June 30
LE GOURMET: Gets 45 Days extension to File Required Schedules
MDWERKS INC: June 30 Balance Sheet Upside-Down by $1.9 Million
MICROHELIX INC: Working Capital Deficit Tops $1.8 Mil. at June 30
MILLER PETROLEUM: Rodefer Moss Raises Going Concern Doubt
NATURADE INC: Files for Reorganization Under Chapter 11
OWENS CORNING: Court Consents to G-I Holdings Compromise
OWENS CORNING: Court Approves Blue Ridge Settlement Agreement
PARMALAT: BofA, et al., Balk at Planned Permanent Injunction Order
PARMALAT USA: Finanziara S.p.A., et al., Seek Stay Pending Appeal
PELTS & SKINS: Court Okays Huval's Retention as Special Counsel
PINNACLE AIRLINES: Earns $19.5 Mil. in Second Qtr. Ended June 30
PINNACLE ENTERTAINMENT: Buying Sands & Traymore Sites for $270MM
PINNOAK RESOURCES: Weak Performance Prompts S&P's Negative Watch
PLATFORM LEARNING: Court OKs Pact Resolving JPMorgan's $615K Claim
PLYMOUTH RUBBER: Emerges from Chapter 11 Protection
PORTRAIT CORP: Has Interim Access to Wells Fargo DIP Loan
PRIDE BUSINESS: Posts $5.3 Mil. Net Loss in Second Quarter of 2006
RADNOR HOLDINGS: Taps Skadden Arps as Bankruptcy Counsel
RADNOR HOLDINGS: Proposes $700K Incentive Plan for Top Executives
RADNOR HOLDINGS: Wants Until October 20 to File Schedules
REFCO INC: U.S. Trustee Objects to Houlihan Lokey's Fee Increase
REFCO INC: Ch. 7 Trustee Wants 36 Claims Disallowed & Expunged
SATELITES MEXICANOS: Court Adjourns Disclosure Hearing to Sept. 13
SATELITES MEXICANOS: Court OKs Galicia y Robles as Special Counsel
SATELITES MEXICANOS: FCC OKs SATMEX 6 Addition to Permitted List
SILICON GRAPHICS: Court Extends Exclusivity Period to Dec. 29
SILICON GRAPHICS: Lampe Conway Opposes Plan Confirmation
SOLUTIA INC: Wants Court to Approve Pharmacia Lease Agreement
SOLUTIA INC: BOC Gases Wants Stay Lifted to Disassemble Facility
STARINVEST GROUP: Posts $654,914 Net Loss for Qtr. Ended June 30
THREE-FIVE: Arizona Court Confirms Plan of Reorganization
UNISYS CORP: S&P Lowers Corp. Credit & Senior Debt Ratings to B+
VESTA INSURANCE: Wants Balch & Bingham as Special Counsel
VESTA INSURANCE: J. Gordon Wants Utility Cos. to Continue Services
VESTA INSURANCE: Court Sets Dec. 11 as General Claims Bar Date
WASHINGTON MUTUAL: Fitch Lifts Class II-B-5 Certs.' Rating to BB
WERNER LADDER: Seeks Court's OK on Rejection of Equipment Leases
WERNER LADDER: Wants Complainant's Demand to Lift Stay Denied
WINN-DIXIE: Shareholders Want Plan Modified to Receive New Stock
WINN-DIXIE: Judge Funk Issues Protective Order on E&A Discovery
YUKOS OIL: Awaits Appellate Court Ruling on Bankruptcy Appeal
* Upcoming Meetings, Conferences and Seminars
*********
AAR CORP: Closes New $140 Million Revolving Credit Facility
-----------------------------------------------------------
AAR Corp. has closed on a new senior, unsecured revolving credit
facility.
The facility has an initial limit of $140 million and can be
increased to $175 million. The new agreement has a term of four
years and an interest rate fluctuating between LIBOR plus 125 and
200 basis points. LaSalle Bank N.A. is the lead bank in the
syndicate of banks making this credit line available to the
Company.
The new financing replaces the Company's $30 million secured
revolving credit facility, which has been cancelled, and its
$50 million accounts receivable securitization facility, which
will be cancelled over the next 90 days.
"Our improved financial performance and outlook have allowed us to
simplify our capital structure, replacing multiple secured credit
facilities with one unsecured facility that has more attractive
terms and pricing," Timothy J. Romenesko, vice president and chief
financial officer, said. "The new facility provides us with even
greater financial flexibility and availability of funds to grow
our business and position the Company for the future."
AAR Corp., (NYSE: AIR) -- http://www.aarcorp.com/-- provides
products and value-added services to the worldwide
aviation/aerospace industry. With facilities and sales locations
around the world, AAR uses its close-to-the-customer business
model to serve airline and defense customers through Aviation
Supply Chain; Maintenance, Repair and Overhaul; Structures and
Systems and Aircraft Sales and Leasing.
* * *
As reported in the Troubled Company Reporter on Jan. 31, 2006,
Standard & Poor's Ratings Services assigned its 'BB-' rating to
AAR Corp.'s 1.75% $125 million convertible senior notes due 2026
sold via SEC Rule 144A with registration rights.
At the same time, Standard & Poor's affirmed its ratings,
including the 'BB-' corporate credit rating, assigned effective
June 16, 2003, on the aviation support services provider. The
rating outlook is stable.
AIRWAY INDUSTRIES: Panel Taps Donlin Recano as Information Agent
----------------------------------------------------------------
The Official Committee of Unsecured Creditors of Airway
Industries, Inc., asks the Honorable Judith K. Fitzgerald of the
U.S. Bankruptcy Court for the Western District of Pennsylvania in
Pittsburgh for authority to retain Donlin, Recano & Company, Inc.,
as its information agent, nunc pro tunc to Aug. 1, 2006.
Section 1102(b)(3) of the Bankruptcy Code became effective on
Oct. 17, 2005, for chapter 11 cases filed on or after that date.
Due to lack of guidance and legislative history of that provision
regarding compliance, creditors committees have had to devise a
strategy complying with that section.
The Debtor's Creditors Committee has determined that it is cost
effective to retain Donlin Recano to establish and maintain a Web
site for creditors in order to comply with this provision.
Donlin Recano will:
a. provide an electronic mail address for creditors to submit
questions and comments to the Committee;
b. establish and maintain a password protected
Internet-accessed Web site for the benefit of constituent
unsecured creditors who have registered for access with the
Committee, that may provide, without limitation:
1. the general information concerning the chapter 11 case
of the Debtor including links to PACER and the general
information concerning significant parties in the
Debtor's case;
2. quarterly Committee written reports summarizing recent
proceedings, events, and public financial information;
3. highlights of significant and material events in the
Debtor's case;
4. a calendar with upcoming significant and material events
in the Debtor's case;
5. the Internet address, access, or links to the claims
docket as and when established by the Debtor or any
claim agent retained in the Debtor's case;
6. a general overview of the chapter 11 process and press
releases (if any) issued by the Committee and the
Debtor;
7. responses to creditor questions, comments, and requests
for access to information; provided, that the Committee
may privately provide such responses in the exercise of
its reasonable discretion, including in the light of the
nature of the information request and the creditor's
agreements to appropriate confidentiality and trading of
claims or interests constraints;
8. answers to frequently asked questions;
9. access or lings or the Internet address to other
relevant Web sites;
10. no access or link will bypass the login and password
requirements of the PACER or ECF Web sites; and
11. any other information to be posted to the Committee
Web site at the direction of the Court, the Committee,
or its counsel; and
c. provide other services as required by the Court, the
Committee, or its counsel to assist the Committee in
complying with the requirements of Section 1102(b)(3)
of the Bankruptcy Code.
Louis A. Recano, a principal at Donlin Recano, discloses that the
Firm will bill $1,000 to set up the Committee's Web site.
A full-text copy of the terms and conditions of Donlin Recano's
engagement with the Committee is available for free
at http://ResearchArchives.com/t/s?1115
Mr. Recano assures the Court that the Firm represents no interest
adverse to the Committee or the Debtor's estate, and is a
"disinterested person" as that term is defined in Section 101(14)
of the U.S. Bankruptcy Code.
Headquartered in Ellwood City, Pennsylvania, Airway Industries,
Inc. -- http://www.atlanticluggage.com/-- manufactures suitcases,
garment bags, briefcases and other travel products and
accessories. The Company filed for chapter 11 protection on
Jan. 20, 2006 (Bankr. W.D. Pa. Case No. 06-20224). Joel M.
Walker, Esq., at Duane Morris LLP represents the Debtor in its
restructuring efforts. The U.S. Trustee appointed the Official
Committee of Unsecured Creditors on Feb. 6, 2006. George
Angelich, Esq., at Arent Fox PLLC, represents the Official
Committee of Unsecured Creditors. When the Debtor filed for
protection from its creditors, it listed estimated assets and
debts of $10 million to $50 million.
ANDREW DIZE: Case Summary & 16 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: Andrew Dize
582 Star Flower Lance
Sugar Hill, GA 30518
Bankruptcy Case No.: 06-70899
Chapter 11 Petition Date: September 4, 2006
Court: Northern District of Georgia (Atlanta)
Debtor's Counsel: Evan M. Altman, Esq.
Building 2 - Northridge 400
8325 Dunwoody Place
Atlanta, GA 30350
Tel: (770) 394-6466
Estimated Assets: $100,000 to $500,000
Estimated Debts: $1 Million to $10 Million
Debtor's 16 Largest Unsecured Creditors:
Entity Claim Amount
------ ------------
W. Randal Bryant, Esq. $6,111,139
Bovis, Kyle & Burch, LLC
53 Perimeter Center East, 3rd Floor
Atlanta, GA 30346
Cross Country Bank $3,600
P.O. Box 310730
Baco Raton, FL 33431
GMAC $2,000
P.O. Box 70309
Charlotte, NC 28272
Capital One $1,800
P.O. Box 530092
Atlanta, GA 30353
HSBC $1,300
P.O. Box 740525
Atlanta, GA 30374
Nationwide $1,167
Nextel $1,000
Dish Network $900
Orchard Bank $600
BellSouth $547
First Premier Bank $400
T-Mobile $333
Sawnee $227
Gwinnett County Dept. Public Utilities $110
Shell $110
Robertson Sanitation $39
AQUILA INC: S&P Upgrades Corporate Credit Rating to B from B-
-------------------------------------------------------------
Standard & Poor's Ratings Services raised its long-term corporate
credit rating on Aquila Inc. to 'B' from 'B-'. The rating remains
on CreditWatch with positive implications.
At the same time, Standard & Poor's raised its short-term
corporate credit rating to 'B-2' from 'B-3' and removed the rating
from CreditWatch with positive implications.
Kansas City, Missouri-based Aquila is primarily an integrated
electric and natural gas utility. The company had approximately
$1.6 billion in total debt outstanding at the end of June 2006.
"The upgrade reflects the company's improved business risk
profile, significant debt reduction and plans for further
deleveraging, expected cash-flow improvement, and lower ongoing
working capital requirements," said Standard & Poor's credit
analyst Jeanny Silva.
The continued CreditWatch listing for the long-term ratings on the
company reflects Standard & Poor's expectations that the company's
corporate credit rating could be raised another notch to 'B+' once
Aquila's Kansas electric utility is sold and the company's debt
reduction plan is completed.
"We expect Aquila to achieve another $600 million in debt
reduction over the next several months using proceeds from various
asset sales," said Ms. Silva.
Proceeds from the sale of Kansas electric utility are needed to
help defray the costs of new generation, namely Iatan 2 and the
potential acquisition of the Aries gas-fired, 585MW combined cycle
plant.
ARLINGTON HOSPITALITY: Plan Filing Period Extended to Oct. 30
-------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Illinois
further extended, until Oct. 30, 2006, the exclusive period within
which Arlington Hospitality Inc. and its debtor-affiliates can
file a chapter 11 plan. The Court also gave the Debtors until
Dec. 29, 2006, to solicit acceptances of that plan.
As reported in the Troubled Company Reporter on July 25, 2006, the
Debtors had been previously granted an extension until Aug. 30,
2006. The Debtors disclosed that they had recently closed the
sale of substantially all of their business assets to Sunburst
Hospitality, Inc. The Debtors believe that the appropriate manner
to wind down the estates will likely be through an orderly plan of
liquidation they will propose.
The Debtors tell the Court they are currently engaged in
discussions with the various constituents in their cases,
including the Official Committee of Unsecured Creditors, to
determine how best to tailor a plan of liquidation to benefit the
interests of the estates' creditors.
Headquartered in Arlington Heights, Illinois, Arlington
Hospitality, Inc., and its affiliates develop and construct
limited service hotels and own, operate, manage and sell those
hotels. The Debtors operate 15 AmeriHost Inn Hotels under leases
from PMC Commercial Trust. Arlington Hospitality, Inc., serves as
a guarantor under these leases. Arlington Inns Inc., an
affiliate, filed for bankruptcy protection on June 22, 2005
(Bankr. N.D. Ill. Case No. 05-24749), the Honorable A. Benjamin
Goldgar presiding. Arlington Hospitality and additional debtor-
affiliates filed for chapter 11 protection on Aug. 31, 2005
(Bankr. N.D. Ill. Lead Case No. 05-34885). Catherine L. Steege,
Esq., at Jenner & Block LLP, provides the Debtors with legal
advice and Chanin Capital LLC serves as the company's investment
banker. David W. Wirt, Esq., at Winston & Strawn, represents the
Official Committee of Unsecured Creditors. As of March 31, 2005,
Arlington Hospitality reported $99 million in total assets and
$94 million in total debts.
ASARCO LLC: Asbestos Panel & FCR File Brief Supporting Jury Trial
-----------------------------------------------------------------
The Official Committee of Unsecured Creditors for the Asbestos
Subsidiary Debtors and Robert C. Pate, future claimants
representative, ask the U.S. Bankruptcy Court for the Southern
District of Texas in Corpus Christi to find that the Asbestos
Debtors are entitled to a jury trial on ASARCO LLC's liability for
the Derivative Asbestos Claims.
The Asbestos Committee and the FCR propose to bifurcate the
hearing on the Derivative Asbestos Claims:
1. The first portion addressing ASARCO LLC's liability for
the Derivative Asbestos Claims would be tried by a jury;
and
2. If the jury finds that ASARCO is liable for the Derivative
Asbestos Claims, the second portion would determine the
amount of the Asbestos Debtors' claim for that liability
and would be tried in Court.
The Asbestos Subsidiary Debtors are Lac d'Amiante du Quebec Ltee,
CAPCO Pipe Company, Inc., Cement Asbestos Products Company, Lake
Asbestos of Quebec, Ltd., and LAQ Canada, Ltd.
Jacob L. Newton, Esq., at Stutzman, Bromberg, Esserman & Plifka,
in Dallas, Texas, asserts that the Asbestos Debtors' assertion of
ASARCO's liability for the Derivative Asbestos Claims constitutes
a legal claim that could augment the Asbestos Debtors' estates.
"Thus the Asbestos Debtors have a constitutional right to a jury
trial."
Mr. Newton clarifies that the resolution of ASARCO's liability
for the Derivative Asbestos Claims will not directly affect the
amount or allowance of those claims. The Court will still
determine the amount and allowance of the Derivative Asbestos
Claims after the jury trial as part of the bankruptcy claims
resolution process.
By taking the proposed approach, Mr. Newton maintains that the
Court balances and protects the rights of the Asbestos Debtors to
a jury trial and preserves the claims-allowance process in
ASARCO's Chapter 11 case.
About ASARCO LLC
Headquartered in Tucson, Arizona, ASARCO LLC --
http://www.asarco.com/-- is an integrated copper mining,
smelting and refining company. Grupo Mexico S.A. de C.V. is
ASARCO's ultimate parent. The Company filed for chapter 11
protection on Aug. 9, 2005 (Bankr. S.D. Tex. Case No. 05-21207).
James R. Prince, Esq., Jack L. Kinzie, Esq., and Eric A.
Soderlund, Esq., at Baker Botts L.L.P., and Nathaniel Peter
Holzer, Esq., Shelby A. Jordan, Esq., and Harlin C. Womble, Esq.,
at Jordan, Hyden, Womble & Culbreth, P.C., represent the Debtor
in its restructuring efforts. Lehman Brothers Inc. provides the
ASARCO with financial advisory services and investment banking
services. Paul M. Singer, Esq., James C. McCarroll, Esq., and
Derek J. Baker, Esq., at Reed Smith LLP give legal advice to
the Official Committee of Unsecured Creditors and David J.
Beckman at FTI Consulting, Inc., gives financial advisory
services to the Committee. When the Debtor filed for protection
from its creditors, it listed $600 million in total assets and
$1 billion in total debts.
The Debtor has five affiliates that filed for chapter 11
protection on April 11, 2005 (Bankr. S.D. Tex. Case Nos. 05-20521
through 05-20525). They are Lac d'Amiante Du Quebec Ltee, CAPCO
Pipe Company, Inc., Cement Asbestos Products Company, Lake
Asbestos of Quebec, Ltd., and LAQ Canada, Ltd. Details about
their asbestos-driven chapter 11 filings have appeared in the
Troubled Company Reporter since Apr. 18, 2005.
Encycle/Texas, Inc. (Bankr. S.D. Tex. Case No. 05-21304), Encycle,
Inc., and ASARCO Consulting, Inc. (Bankr. S.D. Tex. Case No.
05-21346) also filed for chapter 11 protection, and ASARCO has
asked that the three subsidiary cases be jointly administered
with its chapter 11 case. On Oct. 24, 2005, Encycle/Texas' case
was converted to a Chapter 7 liquidation proceeding. The Court
appointed Michael Boudloche as Encycle/Texas, Inc.'s Chapter 7
Trustee. Michael B. Schmidt, Esq., and John Vardeman, Esq., at
Law Offices of Michael B. Schmidt represent the Chapter 7
Trustee. (ASARCO Bankruptcy News, Issue No. 28; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/
or 215/945-7000).
ASARCO LLC: Wants to Assume Mining Equipment Lease with BofA
------------------------------------------------------------
ASARCO LLC seeks permission from the U.S. Bankruptcy Court for the
Southern District of Texas in Corpus Christi to:
(a) assume the Lease relating to a haul truck and other mining
equipment with Bank of America Leasing & Capital, LLC,
(b) pay the cure amounts and purchase price, and
(c) exercise its purchase option.
ASARCO LLC and Bank of America Leasing & Capital, LLC, formerly
known as Fleet Capital Corporation, are parties to a Lease
Agreement relating to a haul truck and other mining equipment
utilized in the Ray and Mission Mines.
The Lease, which will expire in Sept. 19, 2007, includes an
early purchase option provision that must be exercised by
Sept. 19, 2006.
If ASARCO does not exercise the purchase option, the company will
continue to pay the corresponding quarterly rents through the
Lease expiration and purchase the Equipment at the later date for
its fair market value at the time of the purchase, James R.
Prince, Esq., at Baker Botts L.L.P., in Dallas, Texas, notes.
The present value of the Equipment plus rent payments is
estimated to be $2,303,000. If ASARCO purchases the Equipment
now, it can save more than $600,000, Mr. Prince says.
The Equipment is indispensable to the successful operation of
ASARCO's mines and contributes to increased production and
revenue, Mr. Prince contends.
Under the Lease, however, ASARCO must first cure all defaults to
be able to exercise the contractual purchase option.
To cure its defaults under the Lease, Asarco will pay:
-- $186,590 as rent for the last quarter,
-- $111,108 as cure amount, and
-- $1,369,398 as purchase price for the Equipment.
Mr. Prince says approximately $10,635 will be delivered to BofA
to be held in trust as security for ASARCO's obligations to pay
the 2006 property taxes due and owing for the Equipment, which
amount will be returned to ASARCO with accrued interest, if any,
on written proof of payment of the taxes.
About ASARCO LLC
Headquartered in Tucson, Arizona, ASARCO LLC --
http://www.asarco.com/-- is an integrated copper mining,
smelting and refining company. Grupo Mexico S.A. de C.V. is
ASARCO's ultimate parent. The Company filed for chapter 11
protection on Aug. 9, 2005 (Bankr. S.D. Tex. Case No. 05-21207).
James R. Prince, Esq., Jack L. Kinzie, Esq., and Eric A.
Soderlund, Esq., at Baker Botts L.L.P., and Nathaniel Peter
Holzer, Esq., Shelby A. Jordan, Esq., and Harlin C. Womble, Esq.,
at Jordan, Hyden, Womble & Culbreth, P.C., represent the Debtor
in its restructuring efforts. Lehman Brothers Inc. provides the
ASARCO with financial advisory services and investment banking
services. Paul M. Singer, Esq., James C. McCarroll, Esq., and
Derek J. Baker, Esq., at Reed Smith LLP give legal advice to
the Official Committee of Unsecured Creditors and David J.
Beckman at FTI Consulting, Inc., gives financial advisory
services to the Committee. When the Debtor filed for protection
from its creditors, it listed $600 million in total assets and
$1 billion in total debts.
The Debtor has five affiliates that filed for chapter 11
protection on April 11, 2005 (Bankr. S.D. Tex. Case Nos. 05-20521
through 05-20525). They are Lac d'Amiante Du Quebec Ltee, CAPCO
Pipe Company, Inc., Cement Asbestos Products Company, Lake
Asbestos of Quebec, Ltd., and LAQ Canada, Ltd. Details about
their asbestos-driven chapter 11 filings have appeared in the
Troubled Company Reporter since Apr. 18, 2005.
Encycle/Texas, Inc. (Bankr. S.D. Tex. Case No. 05-21304), Encycle,
Inc., and ASARCO Consulting, Inc. (Bankr. S.D. Tex. Case No.
05-21346) also filed for chapter 11 protection, and ASARCO has
asked that the three subsidiary cases be jointly administered
with its chapter 11 case. On Oct. 24, 2005, Encycle/Texas' case
was converted to a Chapter 7 liquidation proceeding. The Court
appointed Michael Boudloche as Encycle/Texas, Inc.'s Chapter 7
Trustee. Michael B. Schmidt, Esq., and John Vardeman, Esq., at
Law Offices of Michael B. Schmidt represent the Chapter 7
Trustee. (ASARCO Bankruptcy News, Issue No. 28; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/
or 215/945-7000).
ASARCO LLC: Court Approves Bidding Procedures for El Paso Property
------------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Texas in
Corpus Christi approves the proposed Bidding Procedures to govern
the auction for the sale of the El Paso, Texas property.
The property is 125.957 acres of vacant real property located in
the city of El Paso, Texas.
As reported in the Troubled Company Reporter on Aug. 22, 2006,
ASARCO will solicit higher and better offers for the Property
through uniform bidding procedures.
Any entity that wishes to participate in the bidding process must
deliver a competing offer to Tom Aldrich, Jack Gracie, Ruth Kern,
Baker Botts, L.L.P., and Reed Smith, LLP, not later than
Sept. 14, 2006.
Each Competing Offer must:
(a) be accompanied by an executed copy of the Purchase
Agreement, marked to show the modifications;
(b) be accompanied by a $ 67,500 good faith deposit, which
will be transferred by wire to Del Norte Title Company;
(c) provide consideration to ASARCO's estate amounting to at
least $150,000 greater than the purchase price; and
(d) remain open and be irrevocable through the consummation of
the Sale.
For a bid to be considered a "Qualifying Bid," it must create
value to the Property in an amount of at least $150,000 greater
than the purchase price.
If one or more Qualifying Bid is received, an Auction will be
held on Sept. 18, 2006, at 10:00 a.m., at the offices of
RECON Real Estate, at 700 N. Stanton St., Third Floor, in El
Paso, Texas. The Auction will begin with the highest Qualifying
Bid and will continue in minimum increments of at least $25,000
higher than the previous bid.
If ASARCO chooses a bidder other than MEGACON, MEGACON will be
awarded a $100,000 Break-up Fee. MEGACON indicated that it would
not proceed with the purchase of the Property unless it had
reasonable assurance that it would receive payment of the Break-
up Fee, Tony M. Davis, Esq., at Baker Botts L.L.P., in Houston,
Texas, relates.
Mr. Davis adds that MEGACON's willingness to commit to a purchase
of the Property, subject to higher and better offers, may
encourage third parties to submit higher bids for the Property
and will serve as a catalyst for subsequent bids.
If there are no other competing offers, a hearing to consider the
proposed sale will be held at 10:00 a.m. on Sept. 22, 2006.
About ASARCO LLC
Headquartered in Tucson, Arizona, ASARCO LLC --
http://www.asarco.com/-- is an integrated copper mining,
smelting and refining company. Grupo Mexico S.A. de C.V. is
ASARCO's ultimate parent. The Company filed for chapter 11
protection on Aug. 9, 2005 (Bankr. S.D. Tex. Case No. 05-21207).
James R. Prince, Esq., Jack L. Kinzie, Esq., and Eric A.
Soderlund, Esq., at Baker Botts L.L.P., and Nathaniel Peter
Holzer, Esq., Shelby A. Jordan, Esq., and Harlin C. Womble, Esq.,
at Jordan, Hyden, Womble & Culbreth, P.C., represent the Debtor
in its restructuring efforts. Lehman Brothers Inc. provides the
ASARCO with financial advisory services and investment banking
services. Paul M. Singer, Esq., James C. McCarroll, Esq., and
Derek J. Baker, Esq., at Reed Smith LLP give legal advice to
the Official Committee of Unsecured Creditors and David J.
Beckman at FTI Consulting, Inc., gives financial advisory
services to the Committee. When the Debtor filed for protection
from its creditors, it listed $600 million in total assets and
$1 billion in total debts.
The Debtor has five affiliates that filed for chapter 11
protection on April 11, 2005 (Bankr. S.D. Tex. Case Nos. 05-20521
through 05-20525). They are Lac d'Amiante Du Quebec Ltee, CAPCO
Pipe Company, Inc., Cement Asbestos Products Company, Lake
Asbestos of Quebec, Ltd., and LAQ Canada, Ltd. Details about
their asbestos-driven chapter 11 filings have appeared in the
Troubled Company Reporter since Apr. 18, 2005.
Encycle/Texas, Inc. (Bankr. S.D. Tex. Case No. 05-21304), Encycle,
Inc., and ASARCO Consulting, Inc. (Bankr. S.D. Tex. Case No.
05-21346) also filed for chapter 11 protection, and ASARCO has
asked that the three subsidiary cases be jointly administered
with its chapter 11 case. On Oct. 24, 2005, Encycle/Texas' case
was converted to a Chapter 7 liquidation proceeding. The Court
appointed Michael Boudloche as Encycle/Texas, Inc.'s Chapter 7
Trustee. Michael B. Schmidt, Esq., and John Vardeman, Esq., at
Law Offices of Michael B. Schmidt represent the Chapter 7
Trustee. (ASARCO Bankruptcy News, Issue No. 28; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/
or 215/945-7000).
ASPEON INC: Files 2001 Annual Report With Going Concern Opinion
---------------------------------------------------------------
Aspeon, Inc., filed its annual financial statements for the year
ended June 30, 2001, with the Securities and Exchange Commission
on Aug. 29, 2006.
Going Concern Doubt
Larry O'Donnell CPA, P.C., Aurora, Colo., raised substantial doubt
about Aspeon, Inc.'s ability to continue as a going concern after
auditing the Company's financial statements for the year ended
June 30, 2001. The auditor pointed to the Company's significant
losses and working capital deficit as of June 30, 2001.
The auditor also pointed that the Company has subsequently ceased
to trade and has no ongoing source of income.
As reported in the Troubled Company Reporter on Feb. 28, 2006, the
Company reported that as of Dec. 31, 2005, it had had only $7 in
total assets, no operating business or other source of income,
outstanding liabilities of approximately $8.1 million and an
outstanding lawsuit filed by some of its shareholders.
A full-text copy of the Company's 2001 Annual Report is available
for free at http://ResearchArchives.com/t/s?1118
Aspeon Inc. used to design, manufacture, and sell open systems
touch screen point-of-sale computers for the food service and
retail industries. The Company also provided customized,
integrated business application software.
ATARI INC: Hires David Pierce President & Chief Executive Officer
-----------------------------------------------------------------
Atari, Inc., has appointed David Pierce as President and Chief
Executive Officer. Mr. Pierce is assuming the responsibilities of
CEO previously held by Bruno Bonnell.
In this role, Mr. Pierce assumes responsibility for the
operational management of Atari and will partner with Mr. Bonnell
to achieve strategic objectives of the Company. Mr. Bonnell will
continue to serve as the Company's Chairman and Chief Creative
Officer, steering the creative vision for Atari.
Mr. Pierce has a proven record in establishing and growing
companies. With more than 20 years of executive management
experience with major entertainment companies such as Universal
Pictures, MGM, Sony Pictures and Sony Music Entertainment, he
brings an effective management style focused on the successful
execution of strategic objectives and improving profitability.
Mr. Pierce has successfully launched and established significant
market share for numerous media devices. Additionally, his career
covers the development and launch of branded entertainment
properties, franchise development and delivery across multiple
distribution channels.
"Atari has been a cornerstone of a global cultural movement that
forever changed how we experience entertainment. It's an honor
for me to have the opportunity to contribute to Atari's exciting
future," stated Mr. Pierce. "There's a heritage of expectation
that demands a high level of responsibility to our consumers and
the interactive entertainment industry. I look forward to
collaborating with the gifted and passionate individuals at Atari
to build on that heritage and raise the bar on what consumers can
expect."
"David has spent his career in the entertainment business and has
a clear understanding and appreciation for our consumers," Mr.
Bonnell commented. "His leadership skills, first-hand operational
execution and keen focus on profitability and investment value
make him the ideal person to lead Atari.
"With David as my senior partner, we will strengthen the
capabilities of Atari. Our skill sets are complimentary and we
share a passion for providing consumers with compelling and unique
entertainment experiences. David's track record is stellar and we
are privileged to have an executive of his caliber and reputation
leading Atari."
As Executive Vice President and General Manager, Mr. Pierce
spearheaded the complete restructuring and turnaround of Sony
Wonder, a division of SONY BMG Music Entertainment. Under his
leadership, the company achieved record revenue and multiple years
of record profits. Prior to Sony Wonder, Mr. Pierce was the
Senior Vice President of Columbia Tristar Home Video, a division
of Sony Pictures Entertainment, from 1989 through 1994. Mr.
Pierce was recruited to help devise and execute a complete
reorganization of the company. Specific areas of focus included
the reorganization of personnel, establishing sound financial
controls, development of distribution strategies and establishing
sales and marketing initiatives. Over a five-year period, Mr.
Pierce increased revenues, achieved record net contribution
results and developed strategic distribution relationships with
several leading entertainment companies including Sony Electronic
Publishing, Epic Home Video and New Line Pictures.
In 1984, Mr. Pierce was recruited by New World Pictures to launch
the company's video division, New World Home Entertainment.
Through unique advertising campaigns and creative sales promotion,
he established New World as the industry leader amongst
independent production companies.
About Atari Inc.
New York-based Atari, Inc. (Nasdaq: ATAR) -- http://www.atari.com/
-- develops interactive games for all platforms and is one of the
largest third-party publishers of interactive entertainment
software in the U.S. The Company's 1,000+ titles include
franchises such as The Matrix(TM) (Enter The Matrix and The
Matrix: Path of Neo), and Test Drive(R); and mass-market and
children's franchises such as Nickelodeon's Blue's Clues(TM) and
Dora the Explorer(TM), and Dragon Ball Z(R). Atari, Inc. is a
majority-owned subsidiary of France-based Infogrames Entertainment
SA (Euronext - ISIN: FR-0000052573), an interactive games
publisher in Europe.
Going Concern Doubt
As reported in the Troubled Company Reporter on July 3, 2006,
Deloitte & Touche LLP expressed substantial doubt about Atari,
Inc.'s ability to continue as a going concern after auditing the
Company's financial statements for the for the fiscal years ended
March 31, 2006 and 2005. The auditing firm pointed to Atari's
significant operating losses and the expiration of its line of
credit facility.
BEST MANUFACTURING: Taps Levett Rockwod as Special Counsel
----------------------------------------------------------
Best Manufacturing Group LLC and its debtor-affiliates ask the
U.S. Bankruptcy Court for the District of New Jersey for
permission to employ Levett Rockwood P.C., as their special
corporate counsel.
The Debtors relate that Levett Rockwood has acted as general
corporate counsel to Best Manufacturing since on or about June 15,
2001. The Debtors say that the firm has represented one or more
of the Debtors in numerous corporate matters including, but not
limited to, mergers and acquisitions, contract preparation and
review, strategic alliances, corporate structure, litigation,
employee and consulting agreements, and corporate finance.
Christopher M. Graham, Esq., a member at Levett Rockwood, tells
the Court that the firm's professionals bill:
Professional Hourly Rate
------------ -----------
Shareholders $320 - $375
Associates $195 - $260
Paralegals $135 - $150
Mr. Graham discloses that the firm has received a $30,000
retainer.
Mr. Graham assures the Court that his firm does not represent any
interest adverse to the Debtors or their estates.
Mr. Graham can be reached at:
Christopher M. Graham, Esq.
Levett Rockwood P.C.
33 Riverside Avenue
Westport, Connecticut 06880
Tel: (203) 222-3121
Fax: (203) 226-8025
http://www.levettrockwood.com/
Headquartered in Jersey City, New Jersey, Best Manufacturing Group
LLC -- http://www.bestmfg.com/-- and its subsidiaries manufacture
and distribute textiles, career apparel and other products for the
hospitality, healthcare and textile rental industries. The
Company and four of its subsidiaries filed for chapter 11
protection on Aug. 9, 2006 (Bankr. D. N.J. Case No. 06-17415).
Michael D. Sirota, Esq., at Cole, Schotz, Meisel, Forman &
Leonard, P.A., represent the Debtors. When the Debtors filed for
protection from their creditors, they estimated assets and debts
of more than $100 million.
BEST MANUFACTURING: Has Until September 23 to File Schedules
------------------------------------------------------------
The Hon. Donald H. Steckroth of the U.S. Bankruptcy Court for the
District of New Jersey gave Best Manufacturing Group LLC and its
debtor-affiliates until Sept. 23, 2006, to file their Schedules of
Assets and Liabilities and Statement of Financial Affairs.
The Debtors sought for the extension citing that before filing for
bankruptcy, they, along with their professionals, focused on
numerous tasks related to the preparation and filing of their
Chapter 11 cases including:
(a) reviewing voluminous loan and other documents and
analyzing their cash flow and projections;
(b) preparing their petitions and other "First Day Motions";
(c) responding to inquiries of their executives and key
employees;
(d) addressing issues relating to their various financial
obligations; and
(f) maintaining and supporting their normal administrative
operations.
The Debtors contended that as a result of these and other factors,
they have yet to complete their schedules and statement. The
Debtors say that rather than filing incomplete schedules that
would have to be amended at a later date, they opted to an
extension of the time to complete the task.
Headquartered in Jersey City, New Jersey, Best Manufacturing Group
LLC -- http://www.bestmfg.com/-- and its subsidiaries manufacture
and distribute textiles, career apparel and other products for the
hospitality, healthcare and textile rental industries. The
Company and four of its subsidiaries filed for chapter 11
protection on Aug. 9, 2006 (Bankr. D. N.J. Case No. 06-17415).
Michael D. Sirota, Esq., at Cole, Schotz, Meisel, Forman &
Leonard, P.A., represent the Debtors. When the Debtors filed for
protection from their creditors, they estimated assets and debts
of more than $100 million.
BLAST ENERGY: June 30 Working Capital Deficit Tops $1.1 Million
---------------------------------------------------------------
Blast Energy Services, Inc., incurred a $1,009,370 net loss on
$279,232 of net revenues for the three months ended June 30, 2006,
compared to a $642,557 net loss on $239,983 of net revenues in
2005.
The Company's June 30 balance sheet also showed strained liquidity
with $564,223 in total current assets available to pay
$1.6 million in total current liabilities coming due within the
next 12 months.
As of Aug. 1, 2006, the Company's cash balance is $165,000. The
cash balances were impacted by the sale in 2005 of the Landers
license for a total of $1.8 million and 2005 stock sales of
$780,000 that were utilized to pay debt and fund operations. The
Company continues to utilize cash, stock, and notes to fund
operations. The Company used these proceeds to fund the
construction of its new generation drilling rig. As of June 30,
2006, the Company had spent approximately $1.2 million to
construct and outfit the AFJ tractor/trailer rig as well as
support truck and trailers.
The Company has a $42,500 note that is due on demand and a
$500,000 note due on June 30, 2007. Convertible notes with
related parties for $200,000 matured on May 31, 2006, and were
converted into common stock in June 2006.
For the three and six months ended June 30, 2006, the Company had
capital expenditures of $62,000 and $130,000, respectively as
compared to capital expenditures of $340,000 and 590,000 in 2005.
Substantially all of the above expenditures were attributable to
the Company's AFJ drilling technology.
A full-text copy of the Company's Quarterly Report is available
for free at http://researcharchives.com/t/s?1116
Going Concern Doubt
As reported on the Troubled Company Reporter on June 30, 2006,
Malone & Bailey, P.C., in Houston, Texas, raised substantial doubt
about Blast Energy's ability to continue as a going concern after
auditing the Company's consolidated financial statements for the
year ended Dec. 31, 2005. The auditor pointed to the Company's
recurring losses from operations, a working capital deficiency of
$600,000, a net loss of $2.9 million, and an accumulated deficit
of $29.9 million for the year ended Dec. 31, 2005. The Company is
trying to raise additional capital in response to its financial
difficulty.
About Blast Energy
Headquartered in Houston, Texas, Blast Energy Services, Inc.
(OTCBB: BESV) -- http://www.blastenergyservices.com/-- has
developed a commercially viable lateral drilling technology with
the potential to penetrate through well casing and into reservoir
formations to stimulate oil and gas production. The Company also
has a secondary business segment providing satellite communication
services to energy companies. This service allows energy
companies to remotely monitor and control wellhead, pipeline,
drilling, and other operations through low cost broadband data
and voice services.
BTSC HOLDINGS: S&P Withdraws B- Corp. Credit & CCC+ Sr. Ratings
---------------------------------------------------------------
Standard & Poor's Ratings Services withdrew its 'B-' corporate
credit rating and 'CCC+' senior secured rating on specialty
contractor BTSC Holdings Inc. at the company's request.
BTSC is a specialty contractor for new residential construction
that is controlled by private equity firm Parallel Investment
Partners.
BUFFALO COAL: Barton Mining Meeting of Creditors Set on Sept. 26
----------------------------------------------------------------
The U.S. Trustee for Region 4 will convene a meeting of Barton
Mining Company Inc.'s creditors at 10:00 a.m., on Sept. 26, 2006,
at the U.S. Bankruptcy Court for the Northern District of West
Virginia, Divisional Office, Edel Building, 324 West Main Street
in Clarksburg, West Virginia. This is the first meeting of
creditors required under 11 U.S.C. Sec. 341(a) in all bankruptcy
cases.
Barton Mining is an affiliate of Buffalo Coal Company, Inc.
All creditors are invited, but not required, to attend. This
Meeting of Creditors offers the one opportunity in a bankruptcy
proceeding for creditors to question a responsible office of the
Debtor under oath about the company's financial affairs and
operations that would be of interest to the general body of
creditors.
Headquartered in Oakland, Maryland, Buffalo Coal Company, Inc., is
engaged in coal mining and processing services. The company filed
for chapter 11 protection on May 5, 2006 (Bankr. N.D. W.Va. Case
No. 06-00366). David A Hoyer, Esq., at Hoyer, Hoyer & Smith,
PLLC, represents the Debtor in its restructuring efforts. Thorp
Reed and Armstrong, LLP, represents Buffalo Coal's Official
Committee of Unsecured Creditors. When the Debtor filed for
protection from its creditors, it listed total assets of
$119,323,183 and total debts of $105,887,321.
Barton Mining Company Inc., Buffalo Coal's affiliate originally
filed under chapter 7 on July 24, 2006, and was converted to a
case under chapter 11 on Aug. 8, 2006 (Bankr. N.D. W.V. Case No.
06-00625). James R. Christie, Esq., at Clarksburg, West Virginia,
represents Barton Mining.
BUFFALO COAL: Panel Wants Chapter 11 Trustee Appointed in 3 Cases
-----------------------------------------------------------------
The Official Committee of Unsecured Creditors of Buffalo Coal
Company, Inc., asks the Honorable Patrick M. Flatley of the U.S.
Bankruptcy Court for the Northern District of West Virginia in
Elkins to appoint a Chapter 11 Trustee in the chapter 11 cases of:
-- Buffalo Coal Company, Inc.;
-- United Energy Coal, Inc.; and
-- Barton Mining Company Inc.
These companies have been managed and directed by Charles
Howdershelt and Gerald Ramsburg, who serve as officers of the
Debtor and are their ultimate owners.
Messrs. Howdershelt and Ramsburg have lost the trust and faith of
creditors as a result of certain actions and inactions taken since
the filing of the Debtors' cases, the Committee says.
According to the Committee, these events illustrate the
shortcomings of the Debtors:
a) The schedules filed by the Debtors as part of their
bankruptcy petitions, by the admission of the Debtors, were
inaccurate and did not accurately reflect the extent of the
Debtors' assets and liabilities. Despite the inaccuracies,
the Debtors have not amended their schedules;
b) On or about June 15, 2006, the Debtors provided a list of
what was purported to be the extent of the Debtors'
equipment. In July 2006, the Committee conducted a physical
inventory of the Debtors' equipment, which revealed that the
June 15, 2006, list was inaccurate. Notably, the
Committee's inventory revealed equipment not on the Debtors'
inventory list. More importantly, some of the equipment on
the Debtors' inventory list was not found during the
Committee's review. The Committee notified the Debtors of
these problems and requested an explanation as to the
inaccuracies be given no later than Aug. 18, 2006. To date,
no explanation has been given;
c) The Committee has repeatedly requested that the Debtors turn
over documents relating to the sale of Barton Mining to
International Coal Group. Despite these requests, the
Debtors have not produced the documents and have stated that
they are not able to locate the documents;
d) Despite the entry of an Order by the Court directing that no
officers or directors of United Energy be paid absent
further Order of Court, Messrs. Howdershelt and Ramsburg
were paid compensation by United Energy;
e) Despite the willingness of ICG to lease a loader owned by
Buffalo Coal as far back as July 28, 2006, and despite the
urging of creditors that the Debtor immediately enter into
the lease, the Debtors delayed entering into the transaction
for approximately one month, causing significant losses to
the estate;
f) Upon information and belief, the Debtors delayed providing
comments to an asset purchase agreement with ICG for
approximately three weeks from the time they were first
presented with a draft asset purchase agreement, which
endangered the prospects for completing a sale of the
Debtors' assets.
g) The Debtors have repeatedly consented to the granting of
relief from stay without regard to whether the Debtors have
equity in property being foreclosed upon.
Headquartered in Oakland, Maryland, Buffalo Coal Company, Inc., is
engaged in coal mining and processing services. The company filed
for chapter 11 protection on May 5, 2006 (Bankr. N.D. W.Va. Case
No. 06-00366). David A Hoyer, Esq., at Hoyer, Hoyer & Smith,
PLLC, represents the Debtor in its restructuring efforts. Thorp
Reed and Armstrong, LLP, represents Buffalo Coal's Official
Committee of Unsecured Creditors. When the Debtor filed for
protection from its creditors, it listed total assets of
$119,323,183 and total debts of $105,887,321.
Barton Mining Company Inc., Buffalo Coal's affiliate originally
filed under chapter 7 on July 24, 2006, and was converted to a
case under chapter 11 on Aug. 8, 2006 (Bankr. N.D. W.V. Case No.
06-00625). James R. Christie, Esq., at Clarksburg, West Virginia,
represents Barton Mining.
CARMIKE CINEMAS: S&P Holds B- Corp. Credit Rating on Neg. Watch
---------------------------------------------------------------
Standard & Poor's Ratings Services' 'B-' corporate credit and
senior secured debt ratings on Columbus, Georgia-based Carmike
Cinemas Inc. remained on CreditWatch with negative implications,
where they were placed on March 31, 2006.
"Although the company recently filed its delayed SEC Form 10-Q for
the first and second quarter of 2006 and its 2005 10-K with the
associated restatements, the company has stated that its projected
margin of compliance with financial covenants is thin," said
Standard & Poor's credit analyst Tulip Lim.
In addition, Carmike will need to find a new auditor after its
former auditor, PricewaterhouseCoopers LLP resigned this week.
Standard & Poor's believes that a change in auditor presents some
risks for additional delays in filings.
Standard & Poor's will resolve the CreditWatch listing after the
company hires a new auditor, files its financial reports, and
after the rating agency reviews Carmike's compliance documents,
its ability to obtain covenant relief, and its longer-term
business prospects.
Further, Standard & Poor's will monitor the remediation of
material weaknesses in internal controls.
COMPLETE RETREATS: Selling Via De Fortuna Furnishings for $25,000
-----------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Connecticut approved
Complete Retreats LLC and its debtor-affiliates' request to
immediately sell their furnishings in Via de Fortuna free and
clear of liens, claims, and encumbrances.
The Court directed the Debtors to tender the net proceeds of the
Via de Fortuna Furnishings Sale to their lenders under the debtor-
in-possession credit agreement within five business days after the
closing of the Sale.
Via de Fortuna is a parcel of real estate managed by the Debtors
as part of their destination club business, which is located in
Rancho Santa Fe, in San Diego, California. The property
management agreement for the Via expires on Jan. 31, 2007, or
earlier, upon 180 days' prior notice.
On Feb. 28, 2006, the Via's owner gave a notice of termination
pursuant to the terms of the Management Agreement, which required
the Debtors to exit the Via by Aug. 31, 2006.
Under a prior lease agreement with the Via's owner, the Debtors
furnished the Via with numerous bedroom sets, dining room tables,
chairs, sofas, and artwork, among other things, which have
remained in the Via during the term of the Management Agreement.
The Lease Agreement expired on Jan. 31, 2006.
The Debtors said they need to remove the Furnishings, which could
cost them as high as $4,800 for removal and an additional $1,200
per month for storage. The Furnishings, according to the Debtors,
cannot be used at their other locations, because the residences in
those locations are already fully furnished.
The Debtors have solicited and have received offers to purchase
the Furnishings. The Debtors have determined that the highest was
from an individual who offered to purchase all of the Furnishings
for $25,000, in addition to assuming all moving costs.
The Debtors said they will not likely receive offers higher than
that of the Proposed Buyer. The Proposed Buyer's offer represents
at least the fair market value of the Furnishings.
Moreover, the significant moving and storage costs the Debtors
would have to incur would negate any hypothetical gains that the
Debtors might receive through the solicitation of any higher
additional offers.
The Debtors emphasized that proceeds from the sales of the
Furnishings will be used to fund their operations and eventually,
a plan of reorganization.
About Complete Retreats
Headquartered in Westport, Connecticut, Complete Retreats LLC
operates five-star hospitality and real estate management
businesses. In addition to its mainline destination club
business, the Debtor also operates an air travel program for
destination club members, a villa business, luxury car rental
services, wine sales services, fine art sales program, and other
amenity programs for members. Complete Retreats and its debtor-
affiliates filed for chapter 11 protection on July 23, 2006
(Bankr. D. Conn. Case No. 06-50245). Nicholas H. Mancuso, Esq.
and Jeffrey K. Daman, Esq. at Dechert LLP represent the Debtors in
their restructuring efforts. Michael J. Reilly, Esq., at Bingham
McCutchen LP, in Hartford, Connecticut, serves as counsel to the
Official Committee of Unsecured Creditors. No estimated assets
have been listed in the Debtors' schedules, however, the Debtors
disclosed $308,000,000 in total debts. (Complete Retreats
Bankruptcy News, Issue No. 7; Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
COMPLETE RETREATS: Wants to Employ Ordinary Course Professionals
----------------------------------------------------------------
Complete Retreats LLC and its debtor-affiliates ask the U.S.
Bankruptcy Court for the District of Connecticut for permission to
employ professionals that they use in the ordinary course of
their business, as of July 23, 2006.
Before their bankruptcy filing, the Debtors utilized numerous
professionals to provide the services required to assist them in
managing their affairs on a day-to-day basis. The Debtors
contend that it would be impractical, inefficient and
unnecessarily costly for them to submit individual applications
for each professional.
The OCPs are already familiar with the Debtors' affairs and are
crucial to the Debtors' reorganization efforts, Mr. Daman asserts.
The Ordinary Course Professionals are:
Professional Services
------------ --------
McAfee & Taft General Corporate Legal Services
Simbro & Stanley Litigation Services (DMB & Borgata)
Geoffrey Romany Legal Services (Villa Paradiso)
Shoman & Chebat Legal Services
(Cayo Espanto Foreclosure)
DLA Piper Rudnick General Legal Services
Gonzales Calvillo Legal Services, Mexican counsel
Higgs & Johnson Legal Services, Bahamian counsel
Shipman & Goodwin Legal Services (Schlierff Litigation)
Nunez Duran & Asso. Legal Services (Schlierff Litigation)
CPS Legal Services (Schlierff Litigation)
Morris Nichol Arsht Legal Services (Pinnacle Litigation)
& Tunnell
Carson McDowell Sol. Legal Services, European counsel
Incorporating Services Corporate Legal Services
Goldblatt McGuigan Accounting Services (Europe)
WTAS Accounting Services (US)
Smith Katzenstein Legal Services (Town Clubs)
& Furlow
Studio Legale Legal Services (Umbria Property)
Scassellati-Sforzolini
Majors & Fox Legal Services (Hubers Litigation)
Barrow & Williams Legal Services, Belize counsel
The Debtors also ask the Court to dispense with the requirement
of individual employment and retention applications with respect
to each OCP.
The Debtors propose that:
(a) Each OCP will file with the Court and serve on the U.S.
Trustee and the counsel of the Official Committee of
Unsecured Creditors:
* an affidavit stating, among other things, that it does
not represent or hold any interest materially adverse to
the Debtors or their estates with respect to the matters
for which it would be retained; and
* a completed retention questionnaire, detailing the type
of services it will provide and the payment for its
services.
(b) Upon receipt of each Retention Affidavit, the U.S.
Trustee, the Committee, and other parties-in-interest,
will have 30 days to object to the OCP's employment.
Otherwise, the OCP's employment, retention, and
compensation will be approved without further Court order;
and
(c) The Debtors will pay each approved OCP 100% of its fees
and expenses incurred upon the submission and their
approval of an appropriate invoice describing, in
reasonable detail, the nature of its services rendered and
expenses actually incurred, without the need of a Court-
filed fee application.
If an OCP's monthly fees and disbursements exceed $25,000, That
OCP must apply to be retained under the Bankruptcy Code. The
payments to the Professional for the excess amounts, as well as
any future payments will be subject to the Court's approval.
The Debtors disclose that certain of the OCP may hold unsecured
claims against them in respect of prepetition services they have
rendered. However, Mr. Daman assures the Court, none of the OCPs
represent or hold any interest adverse to the Debtors or to their
estates with respect to the matters on which they are to be
employed.
About Complete Retreats
Headquartered in Westport, Connecticut, Complete Retreats LLC
operates five-star hospitality and real estate management
businesses. In addition to its mainline destination club
business, the Debtor also operates an air travel program for
destination club members, a villa business, luxury car rental
services, wine sales services, fine art sales program, and other
amenity programs for members. Complete Retreats and its debtor-
affiliates filed for chapter 11 protection on July 23, 2006
(Bankr. D. Conn. Case No. 06-50245). Nicholas H. Mancuso, Esq.
and Jeffrey K. Daman, Esq. at Dechert LLP represent the Debtors in
their restructuring efforts. Michael J. Reilly, Esq., at Bingham
McCutchen LP, in Hartford, Connecticut, serves as counsel to the
Official Committee of Unsecured Creditors. No estimated assets
have been listed in the Debtors' schedules, however, the Debtors
disclosed $308,000,000 in total debts. (Complete Retreats
Bankruptcy News, Issue No. 7; Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
CONSOLIDATED ENERGY: June 30 Balance Sheet Upside-Down by $2.2MM
----------------------------------------------------------------
Consolidated Energy, Inc., filed its financial statements for the
second quarter ended June 30, 2006, with the Securities and
Exchange Commission on Aug. 21, 2006.
The Company reported net income of $17,225,862 for the second
quarter of 2006 compared with $10,908,815 of net income for the
same period in 2005.
For the three months ended June 30, 2006, the Company had
$2,972,476 in total revenues compared with $462,533 for the same
period in 2005.
At June 30, 2006, the Company's balance sheet showed $27,115,548
in total assets and $29,386,942 in total liabilities, resulting in
a $2,271,394 stockholders' deficit.
The Company's June 30 balance sheet also showed strained liquidity
with $1,398,082 in total current assets available to pay
$25,241,004 in total current liabilities coming due within the
next 12 months.
Full-text copies of the Company's second quarter financials are
available for free at http://ResearchArchives.com/t/s?1119
Going Concern Doubt
As reported in the Troubled Company Reporter on May 25, 2006,
Killman, Murrell & Company, P.C., Houston, Texas, raised
substantial doubt about Consolidated Energy, Inc.'s ability to
continue as a going concern after auditing the Company's financial
statements for the year ended Dec. 31, 2005. The auditor pointed
to the Company's recurring losses from operations and limited
capital resources.
About Consolidated Energy
Consolidated Energy, Inc. (OTCBB: CEIW) mines coal in Eastern
Kentucky. The Company conducts business through its wholly owned
coal-mining subsidiary, Eastern Consolidated Energy, Inc. The
Company is also engage in gas and oil exploration and development,
and develops related clean energy technologies that are
environment friendly.
CONTINENTAL AIRLINES: Hints at Cost of Raised Security Alerts
-------------------------------------------------------------
Continental Airlines estimates August 2006 consolidated passenger
revenue per available seat mile to have increased between 6.5 and
7.5% compared to August 2005, while mainline passenger RASM is
estimated to have increased between 5.5 and 6.5% compared to
August 2005.
Continental revealed that "elevated security concerns" in August
negatively impacted year-over-year consolidated and mainline RASM
by approximately 1.5 points.
Continental's August report is the first admission by a non-UK
carrier of the significant financial impact of last months
security alerts, Doug Cameron at the Financial Times reports.
Authorities in London had arrested 25 people in raids from August
9 to 10 in connection with an alleged plot to bomb as many as 10
planes flying from Britain to America. The tightened security
measures at airports following the foiled terror plot led to the
cancellation of numerous flights, Mr. Cameron adds.
August Load Factors
Continental reported August consolidated load factor of 82.4%, 0.6
points above last year's August consolidated load factor. The
carrier reported a mainline load factor of 83.0%, 0.5 points above
the August 2005 mainline load factor, and a domestic mainline load
factor of 85.5%, 1.2 points above August 2005. In addition, the
airline had an international mainline load factor of 80.3%, 0.2
points below August 2005.
During the month, Continental recorded a U.S. Department of
Transportation on-time arrival rate of 76.3% and a mainline
completion factor of 99.8%.
In August 2006, Continental flew 8.4 billion consolidated revenue
passenger miles and 10.2 billion consolidated available seat
miles, resulting in a traffic increase of 9.3% and a capacity
increase of 8.5% as compared to August 2005. In August 2006,
Continental flew 7.4 billion mainline RPMs and 9 billion mainline
ASMs, resulting in a mainline traffic increase of 8.9% and an 8.2%
increase in mainline capacity as compared to August 2005.
Domestic mainline traffic was 4 billion RPMs in August 2006, up
7.1% from August 2005, and domestic mainline capacity was 4.7
billion ASMs, up 5.5% from August 2005.
Continental's regional operations had a record August load factor
of 78.0%, 1.6 points above last year's August load factor.
Regional RPMs were 959.4 million and regional ASMs were 1,230.0
million in August 2006, resulting in a traffic increase of 12.8%
and a capacity increase of 10.5% versus August 2005.
About Continental Airlines
Continental Airlines (NYSE: CAL) -- http://continental.com/--
is the world's fifth largest airline. Continental, together with
Continental Express and Continental Connection, has more than
3,200 daily departures throughout the Americas, Europe and Asia,
serving 154 domestic and 138 international destinations. More
than 400 additional points are served via SkyTeam alliance
airlines. With more than 43,000 employees, Continental has hubs
serving New York, Houston, Cleveland and Guam, and together with
Continental Express, carries approximately 61 million passengers
per year. Continental consistently earns awards and critical
acclaim for both its operation and its corporate culture.
* * *
As reported in the Troubled Company Reporter on May 29, 2006,
Standard & Poor's Ratings Services assigned its 'AAA' preliminary
rating to Continental Airlines Inc.'s (B/Negative/B-3) $190
million Class G pass-through certificates, and its 'B+'
preliminary rating to the $130 million Class B pass-through
certificates.
As reported in the Troubled Company Reporter on May 26, 2006,
Moody's Investors Service assigned Aaa rating to the Class G
Certificates and B1 rating to the Class B Certificates of
Continental Airlines, Inc.'s 2006-1 Pass Through Trusts Pass
Through Certificates, Series 2006-1.
DANA CORP: Wants Until May 2007 to Remove State Court Actions
-------------------------------------------------------------
Dana Corporation and its debtor-affiliates ask the U.S. Bankruptcy
Court for the Southern District of New York to further extend the
time by which they may file notices of removal with respect to any
actions to federal court under Section 1452 of the Judicial
Procedure Code and Rule 9027 of the Federal Rules of Bankruptcy
Procedure until the later of:
(a) May 28, 2007; or
(b) 30 days after the entry of an order terminating the
automatic stay with respect to a particular Action sought
to be removed.
The Debtors seek that the extension be without prejudice to:
-- any position they may take regarding whether Section 362 of
the Bankruptcy Code applies to stay any Action; and
-- their right to seek further extensions of time to remove
all Actions.
In light of the myriad of critical issues in their Chapter 11
cases, the Debtors believe that additional time is needed to
complete an analysis of, and make final decisions with respect
to, the possible removal of the Actions in the context of their
overall restructuring.
Corinne Ball, Esq., at Jones Day, in New York, tells the Court
that the Debtors are continuing to address the numerous tasks
necessary to the day-to-day administration of their large and
complex Chapter 11 cases and their business operations.
The Debtors are actively engaged in developing and refining a
strategic business plan and participating in discussions with
their various constituencies regarding the reorganization
process, according to Ms. Ball. The business plan continues to
evolve to take into consideration ongoing business and financial
analyses, developments in the Debtors' chapter 11 cases, the
rapidly changing market conditions in the automotive industry,
discussions with key constituencies and other factors.
The Debtors have not had the information necessary to complete a
final analysis relating to the potential removal of the Actions,
Ms. Ball says.
The Debtors anticipate that by the end of the extension period,
they will have made substantial progress on the completion and
validation of their business plan and will have begun the
development of a plan of reorganization. Thus, the Debtors will
be in a better position to evaluate potential removal issues in
the context of their overall restructuring efforts, Ms. Ball
points out.
Absent the requested extension of the Removal Deadline, Ms. Ball
asserts that the Debtors risk making premature removal decisions
or waiving those rights before they have had an opportunity to
complete an appropriate evaluation of the issues.
Toledo, OH-based Dana Corp. -- http://www.dana.com/-- designs and
manufactures products for every major vehicle producer in the
world, and supplies drivetrain, chassis, structural, and engine
technologies to those companies. Dana employs 46,000 people in 28
countries. Dana is focused on being an essential partner to
automotive, commercial, and off-highway vehicle customers, which
collectively produce more than 60 million vehicles annually. The
company and its affiliates filed for chapter 11 protection on
Mar. 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354). Corinne Ball,
Esq., and Richard H. Engman, Esq., at Jones Day, in Manhattan and
Heather Lennox, Esq., Jeffrey B. Ellman, Esq., Carl E. Black,
Esq., and Ryan T. Routh, Esq., at Jones Day in Cleveland, Ohio,
represent the Debtors. Henry S. Miller at Miller Buckfire & Co.,
LLC, serves as the Debtors' financial advisor and investment
banker. Ted Stenger from AlixPartners serves as Dana's Chief
Restructuring Officer. Thomas Moers Mayer, Esq., at Kramer Levin
Naftalis & Frankel LLP, represents the Official Committee of
Unsecured Creditors. Fried, Frank, Harris, Shriver & Jacobson,
LLP serves as counsel to the Official Committee of Equity Security
Holders. When the Debtors filed for protection from their
creditors, they listed $7.9 billion in assets and $6.8 billion in
liabilities as of Sept. 30, 2005. (Dana Corporation Bankruptcy
News, Issue No. 20; Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
DANA CORP: Judge Lifland Okays Sale of Hydraulic Assets to Bosch
----------------------------------------------------------------
The Honorable Burton R. Lifland of the U.S. Bankruptcy Court for
the Southern District of New York gave Dana Corporation and its
debtor-affiliates authority to sell their Intelligent Hydraulic
Drive Assets to Bosch Rexroth Corporation.
The Master License and Research and Development Agreement between
the Debtors and Permo-Drive Technologies Limited and Permo-Drive
Inc. will be deemed rejected as of the closing of the sale of
the Assets.
Before the closing of the Assets Sale, the Debtors will perform
the Confidential Information Procedures to ensure that no
intellectual property owned by Permo-Drive is transferred to
Bosch Rexroth.
The Court directed Permo-Drive and Dana Corp. to return to each
other any physical assets, which have not been used up or
transformed into new things.
Judge Lifland makes it clear that the Sale Order will not be
construed to impair any claim or any party's right to assert a
claim based on conduct of any other party, which occurs after the
closing of the sale or to any claim or any party's right to
assert any claim regarding the ownership of the "Confidential
Information" of Permo-Drive, the "Permo-Drive Project IP Rights,"
including, without limitation, ownership of the "Excluded
Patents" or the "Background IP" of Permo-Drive.
As reported in the Troubled Company Reporter on July 17, 2006,
the Debtors asked the Court to approve the sale of their assets
associated with the development and commercialization of
the technology known as Intelligent Hydraulic Drive to Bosch
Rexroth Corporation for approximately $2,700,000.
The Debtors request is pursuant to the Court's order approving the
Debtor's procedures to sell or transfer certain of their
de minimis assets.
The Assets consist of:
(a) all of the Debtors' Intellectual Property related solely
to the development and commercialization of the
Intelligent Hydraulic Drive business, which includes their
activities in the hybrid hydraulic propulsion technology
development segment;
(b) all tangible materials in the possession of the Debtors or
their subcontractors or suppliers related to the IP
Assets;
(c) all rights, benefits and obligations contained in the
contracts assumed, or to be assumed, by the Debtors and
assigned to Bosch Rexroth;
(d) the assets identified on the Asset Purchase Agreement; and
(e) certain accounts receivable related to the IP Assets.
Six executory contracts and unexpired leases will be assigned
to Bosch Rexroth at the Closing:
1. License Agreement with Artemis Intelligent Power Limited
dated July 29, 2005,
2. Development Agreement with Artemis Intelligent Power
Limited dated July 29, 2005,
3. Professional Services Agreement with Venture Management
Services, LLC, amended on Feb. 20, 2006,
4. P.O. No. 193560-00 from Artemis Intelligent Power Limited
dated March 24, 2006.
5. Letter Agreement with Navigant Consulting, Inc., effective
March 14, 2006, and
6. Contract No. W56HZV-05-C-L590, P.O. No. 5003 with
Government Support Services, Inc. effective Nov. 28, 2005.
The Debtors' Master License & Research & Development Agreement
with Permo-Drive Pty. Limited ACN 084071885 dated Aug. 9, 2005,
may be assigned to Bosch Rexroth after the Closing.
The amounts that the Debtors believe must be paid to cure
defaults under the Assumed Contracts are:
-- $6,193 pursuant to a Professional Services Agreement with
Venture Management Services, LLC, February 20, 2006; and
-- $4,700 pursuant to a License Agreement with Artemis
Intelligent Power Limited; effective July 29, 2005.
Corinne Ball, Esq., at Jones Day in New York disclosed that two
parties hold liens or have other interests in the Assets:
1. Citicorp North America, Inc., as Administrative Agent under
a Court-approved Senior Secured Superpriority DIP Credit
Agreement dated March 3, 2006; and
2. Citicorp USA, Inc., as Administrative Agent under the
Security Agreement dated Nov. 18, 2005.
Each Lienholder either has consented to the proposed sale or the
Lienholder's lien or interest can be extinguished, has been
waived, or is capable of monetary satisfaction.
A full-text copy of the Bosch Rexroth Asset Purchase Agreement is
available for free at http://researcharchives.com/t/s?db3
Prior to the Court's order on the matter, the Debtors received two
valid expressions of interest in purchasing the Intelligent
Hydraulic Drive Assets for potentially greater consideration than
Bosch Rexroth's $2,700,000 offer. The Debtors did not disclose
the names of the potential purchasers.
Toledo, OH-based Dana Corp. -- http://www.dana.com/-- designs and
manufactures products for every major vehicle producer in the
world, and supplies drivetrain, chassis, structural, and engine
technologies to those companies. Dana employs 46,000 people in 28
countries. Dana is focused on being an essential partner to
automotive, commercial, and off-highway vehicle customers, which
collectively produce more than 60 million vehicles annually. The
company and its affiliates filed for chapter 11 protection on
Mar. 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354). Corinne Ball,
Esq., and Richard H. Engman, Esq., at Jones Day, in Manhattan and
Heather Lennox, Esq., Jeffrey B. Ellman, Esq., Carl E. Black,
Esq., and Ryan T. Routh, Esq., at Jones Day in Cleveland, Ohio,
represent the Debtors. Henry S. Miller at Miller Buckfire & Co.,
LLC, serves as the Debtors' financial advisor and investment
banker. Ted Stenger from AlixPartners serves as Dana's Chief
Restructuring Officer. Thomas Moers Mayer, Esq., at Kramer Levin
Naftalis & Frankel LLP, represents the Official Committee of
Unsecured Creditors. Fried, Frank, Harris, Shriver & Jacobson,
LLP serves as counsel to the Official Committee of Equity Security
Holders. When the Debtors filed for protection from their
creditors, they listed $7.9 billion in assets and $6.8 billion in
liabilities as of Sept. 30, 2005. (Dana Corporation Bankruptcy
News, Issue No. 20; Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
DANA CORP: Expands Signature's Retention Scope & Pays $10K Fee
--------------------------------------------------------------
Michael L. DeBacker, Esq., vice president, general counsel and
secretary of Dana Corporation, notified the U.S. Bankruptcy Court
for the Southern District of New York that Signature Associates
LLC will provide these additional services to Dana and its debtor-
affiliates:
1. Prepare report showing United States and international
lease statistics by business unit; and
2. Negotiate whether Dynometer will remain in the Farmington
Hills, Michigan leased property.
The Debtors will pay $10,710 to Signature for the additional
services.
As reported in the Troubled Company Reporter on May 18, 2006, the
Court gave the Debtors authority to employ Signature Associates
as their real estate consultants, effective April 5, 2006.
In addition to retention terms agreed by the Debtors and
Signature, the Court ruled that:
1. Signature will seek the Court's approval to obtain any
payment on account of the indemnity provision in the
Engagement Letter;
2. Signature will not be entitled to any commission for a sale
of property that is sold as part of a going concern sale of
substantially all of the Debtors' assets;
3. before paying any commission to Signature for disposition
of property, the Debtors will certify to the Official
Committee of Unsecured Creditors that:
a. Signature was the primary party engaged in the
negotiation of the underlying transaction; and
b. no other party, other than one engaged and compensated
by Signature or a Cooperating Broker, as defined in the
Engagement Letter, will earn or receive a commission on
account of that transaction; and
4. the Debtors will certify to the Creditors Committee that
Signature was the primary agent for the Debtors with
respect to the negotiations before paying Signature:
a. commission in connection with any "net savings" on a
lease rent reduction; or
b. a Claim Reduction Fee.
As reported in the Troubled Company Reporter on April 28, 2006,
the Debtors expected Signature Associates to:
(i) evaluate whether and on what terms their 35 non-
residential real property leases should be assumed,
assumed and assigned or rejected under Section 365 of the
Bankruptcy Code; and
(ii) develop a strategy with respect to certain of their
properties.
Before their chapter 11 filing, Signature provided the Debtors
real estate services in accordance with the terms of a Real
Estate Services Agreement, dated Oct. 11, 2004.
Pursuant to a Consulting and Advisory Services Agreement, dated
April 5, 2006, Signature agreed to conduct (x) a valuation of
each of the Leases and (y) additional data management and
financial analysis of the Properties.
In addition, Signature agreed to:
-- meet with the Debtors and their advisors to ascertain
the Debtors' goals, objectives and financial parameters
with respect to the potential disposition of their
properties;
-- develop and implement a marketing strategy for the
Properties and the Leases in coordination with the
Debtors' restructuring plans;
-- negotiate agreements for the sale or assignment of some
or all of the Properties;
-- negotiate agreements for the acquisition and leasing of
property;
-- negotiate agreements with landlords under the Leases;
-- report periodically to the Debtors and their other
advisors regarding the status of negotiations;
-- participate in weekly conference calls or other periodic
calls and meetings with the Debtors and their other
advisors to discuss disposition of the Properties;
-- provide other services as requested by the Debtors from
time to time; and
-- provide support documentation and testimony as is
necessary to obtain Court approval of the transactions
contemplated by the Engagement Letter.
The Debtors proposed to pay Signature for its services under these
terms:
A. Valuation Services
Signature will be paid $3,000 per Property valuated. The
firm will apply the $73,000 held in escrow under the terms
of the Original Engagement Letter towards the fees and
expenses for additional valuation services. The Debtors
will pay the market fee, capped at $25,000, for MAI
appraisals coordinated by the firm.
B. Disposition Services
* Signature will earn a Commission Fee, based on the total
amount of cash received by the Debtors for sale of the
Properties, in accordance with this sliding scale
structure:
Gross Proceeds Per Property Fee Percentage
--------------------------- --------------
$0 to $10 million 3.75%
$10 to $30 million 3.0%
$30 million and over 2.0%
* Upon obtaining any rent reduction under any Lease that is
not rejected under Section 365, Signature will earn a
commission equal to:
-- 5.0% of the Net Savings up to $500,000;
-- 4.0% of the Net Savings from $500,001 to $1,000,000;
and
-- 3.0% of Net Savings above $1,000,000.
In no event will Signature's fee for any rent reduction
transaction be less than $5,000.
* For reductions of any landlord claim under Section
502(b)(6) with respect to any Lease rejected, Signature
will earn a fee equal to the greater of (a) the Fixed
Claim Reduction Fee and (b) the cash equivalent, as
determined by the Debtors, of a fee equal to 10.0% of the
Claim Reduction Distribution Amount.
The "Fixed Claim Reduction Fee" will be between $1,000 to
$5,000 per Lease, depending on the Claim Reduction Amount,
the amount by which the landlord's claim under Section
502(b)(6) is so reduced minus the net realizable value to
the Debtors of any equipment abandoned to the landlord in
connection with a Claim Reduction Agreement:
Claim Reduction Amount Claim Reduction Fee
---------------------- -------------------
less than $100,000 $1,000 per Lease
$100,000 to $500,000 $3,000 per Lease
$500,001 to $1,000,000 $4,000 per Lease
greater than $1,000,000 $5,000 per Lease
The "Claim Reduction Distribution Amount" will be equal to
the value of the pro rata distribution afforded to a
general unsecured creditor holding a claim in an amount
equal to the Claim Reduction Amount under a confirmed plan
of reorganization for the Debtor lessee.
* Upon execution of a lease for a Property where one of the
Debtors acts as landlord, the Debtors will pay Signature
6% of the aggregate value of lease commitment over the
first five years of a lease term and (b) 3% of the
aggregate value of the lease commitment over the second
five years of a lease term.
If a Cooperating Broker is owed a commission in connection
with the execution of the lease, Signature will pay the
commission owed to the Cooperating Broker up to 50% of the
of the Lease Commission Fee. If the fee payable to the
Broker exceeds 50% of the aggregate Lease Commission Fee,
then the Debtors will directly pay the Broker the
additional fee.
C. Acquisition and Leasing of Properties
The Debtors will not be responsible for the payment of any
expenses, fees or other compensation, other than the
Reimbursable Expenses, to Signature for its assistance in:
* the acquisition of new Properties;
* the leasing of new Properties; and
* the renewal or extension of any Lease.
D. Expert Witness Fees
The Debtors will pay the hourly fees for each representative
of Signature that may be requested to testify to the Court
for purposes of seeking Court approval of a renegotiation of
a Lease, or a disposition transaction for any Property:
Professional Hourly Fee
------------ ----------
John Gordy $450
John Salsberry $350
Dave Miller $350
E. Expenses
Signature will be entitled to reimbursement for all
out-of-pocket expenses, including, without limitation,
reasonable expenses of coach travel and transportation and
the cost of out-of-town travel arrangements.
John Gordy, Signature's senior vice president, attested that the
firm has in the past and will likely in the future be working
with or against professionals involved in the Debtors' cases in
matters unrelated to the Debtors or their Chapter 11 cases.
Mr. Gordy, however, assured the Court that Signature (a) does not
hold or represent any interest adverse to the Debtors or their
estates and (b) is a "disinterested person" as that term is
defined in Section 101(14) of the Bankruptcy Code.
Toledo, OH-based Dana Corp. -- http://www.dana.com/-- designs and
manufactures products for every major vehicle producer in the
world, and supplies drivetrain, chassis, structural, and engine
technologies to those companies. Dana employs 46,000 people in 28
countries. Dana is focused on being an essential partner to
automotive, commercial, and off-highway vehicle customers, which
collectively produce more than 60 million vehicles annually. The
company and its affiliates filed for chapter 11 protection on
Mar. 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354). Corinne Ball,
Esq., and Richard H. Engman, Esq., at Jones Day, in Manhattan and
Heather Lennox, Esq., Jeffrey B. Ellman, Esq., Carl E. Black,
Esq., and Ryan T. Routh, Esq., at Jones Day in Cleveland, Ohio,
represent the Debtors. Henry S. Miller at Miller Buckfire & Co.,
LLC, serves as the Debtors' financial advisor and investment
banker. Ted Stenger from AlixPartners serves as Dana's Chief
Restructuring Officer. Thomas Moers Mayer, Esq., at Kramer Levin
Naftalis & Frankel LLP, represents the Official Committee of
Unsecured Creditors. Fried, Frank, Harris, Shriver & Jacobson,
LLP serves as counsel to the Official Committee of Equity Security
Holders. When the Debtors filed for protection from their
creditors, they listed $7.9 billion in assets and $6.8 billion in
liabilities as of Sept. 30, 2005. (Dana Corporation Bankruptcy
News, Issue No. 20; Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
DEATH ROW: Bankruptcy Court Sets Claims Deadline on October 31
--------------------------------------------------------------
A Los Angeles bankruptcy judge ordered that parties asserting
claims against either Death Row Records or Marion "Suge" Knight
must file those claims with the U.S. Bankruptcy Court for the
Central District of California by Oct. 31, 2006, or risk being
barred from participating in the cases or from asserting claims
against Death Row or Knight. Knight and Death Row filed voluntary
petitions for relief under Chapter 11 of the U.S. Bankruptcy Code
on April 4, 2006 in Los Angeles, California.
Chapter 11 allows a company to continue its business operations
while it restructures. Death Row is being operated by a Court
appointed trustee. Knight continues to manage his bankruptcy
estate as a debtor-in-possession. Having a full understanding of
the liabilities of Death Row and Knight is critical to a
comprehensive reorganization.
"We believe that it is vital that all parties asserting claims
come forward and assert them in a timely manner so that Death Row
can come out of Chapter 11 quickly," said Todd Neilson, the Death
Row chapter 11 trustee.
Headquartered in Compton, California, Death Row Records Inc. --
http://www.deathrowrecords.net/-- is an independent record
producer. The company and its owner, Marion Knight, Jr., filed
for chapter 11 protection on April 4, 2006 (Bankr. C.D. Calif.
Case No. 06-11205 and 06-11187). Daniel J. McCarthy, Esq., at
Hill, Farrer & Burrill, LLP, and Robert S. Altagen, Esq.,
represent the Debtors in their restructuring efforts. R. Todd
Neilson serves as Chapter 11 Trustee for the Debtor's estate. The
Official Creditors Committee is represented by Pachulski, Stang,
Ziehl, Young, Jones, & Weintraub. When the Debtors filed for
protection from their creditors, they listed total assets of
$1,500,000 and total debts of $119,794,000.
DEG DEVELOPMENT: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: DEG Development, LLC
3510 Leesburg Road
Columbia, SC 29209
Bankruptcy Case No.: 06-03902
Chapter 11 Petition Date: September 4, 2006
Court: District of South Carolina (Columbia)
Debtor's Counsel: William E. Calloway, Esq.
Robinson, Barton, McCarthy,
Calloway & Johnson, P.A.
1715 Pickens Street, P.O. Box 12287
Columbia, SC 29211
Tel: (803) 256-6400
Fax: (803) 779-0267
Estimated Assets: $1 Million to $10 Million
Estimated Debts: $1 Million to $10 Million
Debtor's 20 Largest Unsecured Creditors:
Entity Claim Amount
------ ------------
Mable Ganassi $75,200
1133 4th Avenue
Elizabeth, PA 15037-1017
PFJJ Construction Co. $11,600
[no address provided]
Richland County Treasurer $6,878
P.O. Box 11947
Columbia, SC 29211-1947
Vernon Farms $6,460
701 Smyrna Church Road
Elgin, SC 29045
Bell South Advertising $6,003
P.O. Box 105024
Atlanta, GA 30348-5048
General Steel Corp. $5,500
Genaro Torres $5,000
Core General Contractors $3,500
Rogers Townsend $3,343
American Recovery Service Advertising $2,421
Advance Concrete Cutting Inc. $2,200
Brandi Petroleum $1,800
Carolina Personnel Services $1,060
Safeco Business Insurance $958
Dipietro Enterprises $771
Birch Telecom $725
Grainger $603
Elizabeth Shelley $600
Donna Julian CPA $534
Amaz-N-Tow $500
DELTA AIR: Court Approves Termination of Pilot Pension Plan
-----------------------------------------------------------
The Hon. Adlai Hardin of the U.S. Bankruptcy Court for the
Southern District of New York overseeing its Chapter 11
restructuring granted, on Sept. 5, 2006, Delta Air Lines Inc.'s
motion seeking court approval to terminate its pilot defined
benefit pension plan.
Because the Pension Benefit Guaranty Corp., the federal agency
charged with insuring the nation's pension plans, has the
responsibility for plan termination under ERISA, Delta now must
secure the pension agency's approval before the pilot plan can be
terminated. While a timetable to attempt to secure PBGC approval
has not yet been established, Delta plans to establish Sept. 2,
2006, as the effective date of termination of the pilot plan.
Judge Hardin issued his ruling, following the carrier's advising
the bankruptcy court that over the weekend the last remaining
group opposing termination of the pilot plan withdrew its
objection.
The group, consisting of about 100 Delta retired pilots known as
DP2, which until now had been objecting to the termination, joined
the PBGC, Delta's Unsecured Creditor's Committee, the Air Line
Pilots Association, and another group of approximately 2,850
retired Delta pilots known as DP3, Inc., in not opposing the
termination of the pilot plan.
"The Court's order, together with the broad-based consensus not to
oppose the termination of the pilot pension plan, is significant
and validates the company's need to take this course of action in
order to survive," said Edward H. Bastian, Delta's executive vice
president, chief financial officer and head of the company's in-
court restructuring efforts. "It is a move Delta does not take
lightly. It is an unfortunate but necessary step in Delta's
restructuring, and we regret the impact of termination on active
and retired pilots."
In connection with the DP2 group's decision to withdraw its
objection, Delta will pay DP2 approximately $500,000 on account of
the pilot retiree group's legal fees and other expenses.
Delta has said that while the Pension Protection Act of 2006,
signed into law Aug. 17, would give the company the opportunity to
preserve the defined benefit pension plan for its approximately
91,000 active and retired flight attendant and ground employees,
the legislation's airline provisions did not provide the same
opportunity for its pilot plan because of the plan's key features
and unsupportable costs.
Under the terms of Delta's pilot defined benefit pension plan,
pilots may retire at age 50 and take out half of their total
retirement benefit in a lump sum payment and receive the rest as
an annuity.
"Unfortunately, the Airline Relief Act provisions provide no
relief from the unaffordable costs resulting from the pilot plan's
lump sum feature -- expected to exceed more than $1 billion in the
near term alone -- that would confront Delta upon emergence from
bankruptcy and beyond were the pilot plan not terminated," Mr.
Bastian said.
The company has estimated that even with the termination of the
pilot plan, current Delta pilot retirees will receive on average
approximately $75,200 in annualized pension benefits, including
the value of the lump sum.
Delta said it is on track to realize more than two-thirds of its
business plan's approximately $3 billion in annual financial
improvements by the end of this year, and "barring any unforeseen
disruptions," plans to emerge from bankruptcy by mid-2007.
About Delta Air Lines
Headquartered in Atlanta, Georgia, Delta Air Lines (Other
OTC: DALRQ) -- http://www.delta.com/-- is the world's second-
largest airline in terms of passengers carried and the leading
U.S. carrier across the Atlantic, offering daily flights to 502
destinations in 88 countries on Delta, Song, Delta Shuttle, the
Delta Connection carriers and its worldwide partners. The Company
and 18 affiliates filed for chapter 11 protection on Sept. 14,
2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923). Marshall S.
Huebner, Esq., at Davis Polk & Wardwell, represents the Debtors in
their restructuring efforts. Timothy R. Coleman at The Blackstone
Group L.P. provides the Debtors with financial advice. Daniel H.
Golden, Esq., and Lisa G. Beckerman, Esq., at Akin Gump Strauss
Hauer & Feld LLP, provide the Official Committee of Unsecured
Creditors with legal advice. John McKenna, Jr., at Houlihan Lokey
Howard & Zukin Capital and James S. Feltman at Mesirow Financial
Consulting, LLC, serve as the Committee's financial advisors. As
of June 30, 2005, the Company's balance sheet showed $21.5 billion
in assets and $28.5 billion in liabilities.
ECOLOCLEAN IND: Balance Sheet Upside-Down by $2 Mil. at June 30
---------------------------------------------------------------
Ecoloclean Industries, Inc., incurred $421,448 net loss on $73,003
of revenues for the second quarter ending June 30, 2006, the
Company disclosed on a Form 10-SQB report filed with the
Securities and Exchange Commission.
As of June 30, 2006, the Company's balance sheet showed $1,436,563
in assets and $3,453,833 in liabilities. The Company's equity
deficit widened to $2,017,270 as of June 30, 2006, from a
$1,875,367 equity deficit at Dec. 31, 2005. At June 30, 2006, the
Company has $400,398 in current assets to pay $2,009,674 in
current debts.
According to Royis Ward, the Company's Chief Executive Officer,
the Company is currently dependent on funding from the President
and an employee of the Company to continue the Company's
operations. The discontinuance of that funding and the
unavailability of outside financing to replace that funding could
result in the Company ceasing operations.
A full-text copy of the regulatory filing is available for free
at http://ResearchArchives.com/t/s?111a
Going Concern Doubt
Baum & Company, P.A., the Company's auditor, expressed substantial
doubt about the Company's ability to continue as a going concern
after auditing the Company's financial statements for the year
ending Dec. 31, 2005. The auditor pointed to the Company's
recurring losses from operations and net capital deficiency.
About Ecoclean
Ecoloclean Industries, Inc., through its subsidiaries --
Ecoloclean, Inc., World Environmental Technologies, Inc., and
Aquatronics Industries, Inc. -- designs and manufactures portable
electro coagulation system which are mounted within or on enclosed
trailers. These systems treats liquid solutions containing a wide
variety of contaminants, including heavy metals, oil and grease,
suspended and dissolved solids, as well as bacteria and algae,
without the use of chemicals.
ENZON PHARMACEUTICALS: Has $48.4 Mil. Capital Deficit at June 30
----------------------------------------------------------------
Enzon Pharmaceuticals, Inc., reported its financial results for
the second quarter of 2006. For the three months ended June 30,
2006, Enzon reported net income of $11 million compared with a net
loss of $85.5 million in 2005.
At June 30, 2006, the Company's balance sheet showed
$516.1 million in total assets and $564.6 million in total
liabilities, resulting in a $48.4 million stockholders' deficit.
"Our results this quarter were strong, but more importantly, we
are committed to our long-term goal of building a novel oncology
business," said Jeffrey H. Buchalter, chairman and chief executive
officer of Enzon.
"We are continuing to maximize the value of our oncology products
and have broadened our pipeline by licensing compounds utilizing
the broad LNA(R) technology platform in an effort to drive long-
term, sustainable growth."
Second quarter highlights include:
-- The Company entered into a strategic collaboration with
Santaris Pharma A/S to develop and commercialize a series of
innovative RNA Antagonists based on Santaris's LNA(R)
(locked nucleic acid) technology.
-- The Company repored two updates from its oncology pipeline;
first, the start of a phase I trial with Oncaspar(R) in
combination with Gemzar(R) (gemcitabine HCl for Injection)
in patients with advanced solid tumors and lymphomas and
second, IND approval to begin a phase I/II trial with rhMBL
in immunosuppressed patients with multiple myeloma who are
undergoing chemotherapy or stem cell transplantation.
-- The Company recently disclosed on July 25, 2006, that the
U.S. Food and Drug Administration approved an expanded label
for Oncaspar to include use as a first-line treatment for
patients with acute lymphoblastic leukemia (ALL).
-- The Company successfully refinanced the majority of its debt
position. Enzon raised $275.0 million in an offering of new
4% convertible notes due 2013 (4% Notes) and repurchased
$133.8 million of its existing 4 1/2% convertible notes due
2008 (4.5% Notes) during the quarter and an additional
$137.6 million of 4.5% Notes in July 2006.
Products Segment
Products segment sales, comprised of sales of Oncaspar(R),
Depocyt(R), Abelcet(R), and Adagen(R), increased to $24.5 million
for the three months ended June 30, 2006, from $23.5 million for
the three months ended June 30, 2005. The improved sales are
mainly attributable to an increase in volume for all products,
except Abelcet.
Oncaspar (a PEG-enhanced version of a naturally occurring enzyme
called L-asparaginase) sales grew to $7.6 million or 29% for the
three months ended June 30, 2006, as compared to $5.9 million for
the three months ended June 30, 2005. On July 25, 2006, the
company announced it received approval of its supplemental
Biologics License Application for Oncaspar for use in the first-
line treatment of patients with ALL. In addition, Enzon is
continuing to progress the new clinical program for Oncaspar by
initiating its first trial in a variety of solid tumors.
Sales of Depocyt, a sustained-release formulation of the
chemotherapeutic agent cytarabine arabinoside or ara-C used for
the treatment of lymphomatous meningitis, increased to
$1.9 million or 17% for the three months ended June 30, 2006, as
compared to $1.7 million for the three months ended June 30, 2005.
Sales of Abelcet in the U.S. and Canada, a lipid complex
formulation of amphotericin B used primarily in the hospital to
treat immuno-comprised patients with invasive fungal infections,
for the three months ended June 30, 2006, were $9.3 million, down
17% as compared to $11.3 million for the three months ended
June 30, 2005. The decrease was primarily the result of continued
competition that resulted in a decline in volume. The Company
anticipates increased competition from new therapeutics entering
the market later this year.
Sales of Adagen, an enzyme replacement therapy used to treat
adenosine deaminase deficiency in patients with severe combined
immunodeficiency disease, increased 22% to $5.7 million for the
three months ended June 30, 2006, as compared to $4.6 million for
the three months ended June 30, 2005. This market has a very
small number of patients so quarter-to-quarter variability is not
uncommon.
Royalties Segment
Revenues from the Company's Royalties segment for the three months
ended June 30, 2006 were $18 million, as compared to $16.9 million
for the three months ended June 30, 2005, an increase of 6%. This
includes the proceeds of $1 million on the sale of the Company's
SS1P program, an immunotoxin fusion protein, to Cambridge Antibody
Technology. Royalties on PEG-INTRON, marketed by Schering-Plough,
continue to comprise the majority of our royalty revenue.
Contract Manufacturing Segment
The Company's revenues from its Contract Manufacturing segment
were $5.1 million for the three months ended June 30, 2006, as
compared to $3.4 million in the corresponding period of the prior
year. This includes contract-manufacturing revenues related to
services the Company provides for customers who require injectable
products, such as Abelcet for markets outside of Canada and the
U.S. The 55% increase in revenue was mainly attributable to the
timing of third party shipments as stated last quarter. The
availability of certain raw materials in March 2006 delayed the
production in the first quarter of 2006 and the resulting revenues
of products that the Company manufactures. It is not uncommon for
the timing of the shipments to cause quarter-over-quarter
fluctuations.
Cost of Sales and Contract Manufacturing
Cost of product sales and contract manufacturing as a percentage
of revenues from product sales and contract manufacturing,
decreased to 42% for the three months ended June 30, 2006, as
compared to 51% for the three months ended June 30, 2005. This
decrease relative to revenues was primarily attributable to
increased contract manufacturing volumes as well as favorable
changes in product mix period over period.
Research and Development
The Company's research and development expenses were $9.5 million
for the three months ended June 30, 2006, as compared to
$5.5 million for the three months ended June 30, 2005. The
increase was attributable to initiation of new clinical programs
in 2006, as compared to organizational and research and
development portfolio restructuring that occurred in the second
quarter of 2005. Enzon is committed to investing in research and
development to build a leading oncology business through the
continued development of its current portfolio, reinforcing its
position as a scientific leader in PEGylation through its
Customized Linker Technology(TM) platforms and strategic in-
licensing of innovative cancer programs.
Selling, General and Administrative
Selling, general and administrative expenses decreased to
$15.3 million or 13% for the three months ended June 30, 2006, as
compared to $17.5 million for the three months ended June 30,
2005. The reduction is mainly attributable to more focused
marketing spending in 2006. The Company will continue to invest
in new selling, marketing, and other initiatives to further its
objective of delivering long-term value, including improving its
top-line performance by investing in its commercial operations.
Amortization of Acquired Intangible Assets
Amortization expense decreased by $3.2 million to $200,000 for the
three months ended June 30, 2006, as compared to $3.4 million for
the three months ended June 30, 2005. This reduction was due to
the impairment of Abelcet-related intangible assets recorded in
the quarter ended December 2005.
Other Income (Expense)
Net other income (expense) is comprised of investment income,
interest expense, and other non-operating expenses. The Company
reported other income of approximately one million dollars for the
three months ended June 30, 2006, as compared to other expense of
nearly seven million dollars in the same period in the prior year.
The improvement resulted primarily from the debt re-financing as
the Company recorded a gain of $4.4 million on the repurchase of
the 4.5% Notes at a discount to par. This income was reduced by
the partial write-off of the 4.5% Notes offering costs of
$1.3 million.
Income Taxes
For the three months ended June 30, 2006, the Company recognized a
nominal amount of state and Canadian tax, whereas in the quarter
ended June 30, 2005, the Company recorded a non-cash charge of
$80.2 million including a deferred tax asset reserve of
$68.2 million and the establishment of a deferred tax liability of
$10.6 million associated with goodwill. For 2006, the estimated
effective annual U.S. income tax rate is zero due to the Company's
projected taxable income and availability of net operating loss
carryforwards.
Cash and Investments
Total cash reserves are $369.6 million as of June 30, 2006, as
compared to $226.6 million as of Dec. 31, 2005. The net increase
in cash reserves was the result of the $275 million debt
refinancing, as well as cash inflows from operating activities and
the first-quarter 2006 sale of Nektar shares. This increase in
cash has been partially offset by associated payments for the
extinguishment of $133.8 million of the 4.5% Notes as well as the
payment to Sanofi-Aventis related to the previously announced
reduction of the royalty rates that the Company pays on Oncaspar
sales. Cash reserves include cash, cash equivalents, short-term
investments, and marketable securities. Subsequent to the quarter
ended June 30, 2006, the Company repurchased the $137.6 million of
its existing 4.5% Notes.
Full-text copies of the Company's second quarter financials are
available for free at http://ResearchArchives.com/t/s?111d
About Enzon
Headquartered in Bridgewater, New Jersey, Enzon Pharmaceuticals,
Inc. (Nasdaq: ENZN) -- http://www.enzon.com/-- is a
biopharmaceutical company dedicated to the development and
commercialization of therapeutics to treat patients with cancer
and adjacent diseases. Enzon's specialized sales force markets
Abelcet(R), Oncaspar(R), Adagen(R), and Depocyt(R) in the United
States. In addition, Enzon also receives royalties on sales of
PEG-INTRON(R), marketed by Schering-Plough Corporation, and
MACUGEN(R), marketed by OSI Pharmaceuticals and Pfizer Inc.
Enzon's product-driven strategy includes an extensive drug
development program that leverages its proprietary technologies,
including a Customized Linker Technology(TM) PEGylation platform
that utilizes customized linkers designed to release compounds at
a controlled rate. Enzon complements its internal research and
development efforts with strategic initiatives, such as
partnerships designed to broaden its revenue base or provide
access to promising new technologies or product development
opportunities. The Company has also engaged in contract
manufacturing opportunities with third parties to improve its
efficiency.
FORD MOTOR: Names Alan Mulally as President and CEO
---------------------------------------------------
Ford Motor Company has elected Alan Mulally as president and chief
executive officer. He has also been elected to the Board of
Directors.
Bill Ford will continue his duties as executive chairman of the
company.
"One of the three strategic priorities that I've focused on this
year is company leadership. While I knew that we were fortunate
to have outstanding leaders driving our operations around the
world, I also determined that our turnaround effort required the
additional skills of an executive who has led a major
manufacturing enterprise through such challenges before," Bill
Ford wrote in an e-mail message to Ford employees.
"That's why I'm very pleased to announce that Alan Mulally, who
turned around the Commercial Airplanes division of The Boeing
Company, will become our president and CEO, effective immediately.
Alan has deep experience in customer satisfaction, manufacturing,
supplier relations and labor relations, all of which have
applications to the challenges of Ford. He also has the
personality and team-building skills that will help guide our
Company in the right direction."
Bill Ford, who said he would remain "extremely active" in the
business, praised Mr. Mulally as "an outstanding leader and a man
of great character." He noted that Mr. Mulally had applied many
of the lessons from Ford's success in developing the Taurus to
Boeing's creation of the revolutionary Boeing 777 airliner. That
experience, chronicled in the book, "Working Together," by James
P. Lewis, tells how the leadership principles Mr. Mulally learned
from Ford and developed at Boeing may be applied to other
businesses.
"Clearly, the challenges Boeing faced in recent years have many
parallels to our own," Bill Ford said.
Mr. Mulally, 61, has spent 37 years at The Boeing Company, most
recently as executive vice president. In addition, he has also
been president and chief executive officer of Boeing Commercial
Airplanes since 2001. In that position he was responsible for all
of the company's commercial airplane programs and related
services, which in 2005 generated record orders for new business
and sales of more than $22.6 billion. Mr. Mulally was named
president of Commercial Airplanes in September 1998. The
responsibility of chief executive officer for the business unit
was added in March 2001.
"I think the opportunity to work with Bill Ford and Ford Motor
Company is the only thing that could have attracted me to a job
other than Boeing, where I have so many great friends and
memories," Mr. Mulally said. "I'm looking forward to working
closely with Bill in the ongoing turnaround of this great Company.
I'm also eager to begin engagement with the leadership team. I
believe strongly in teamwork and I fully expect that our efforts
will be a productive collaboration."
Mr. Mulally noted that many of the challenges he encountered in
commercial airplane manufacturing are analogous to the issues at
Ford.
"Just as I thought it was appropriate to apply lessons learned
from Ford to Boeing, I believe the reverse is true as well,"
Mr. Mulally said. "I also recognize that Ford has a strong
foundation upon which we can build. The Company's long tradition
of innovation, developing new markets, and creating iconic
vehicles that represent customer values is a great advantage that
we can leverage for our future."
Bill Ford said he expected Mr. Mulally would assist Mark Fields
and the Way Forward team as they accelerate their business plan.
"After dealing with the troubles at Boeing in the post-9/11 world,
Alan knows what it's like to have your back to the wall -- and
fight your way out with a well-conceived plan and great
execution," Bill Ford said in his note to employees. "He also
knows how to deal with long product cycles, changing fuel prices
and difficult decisions in a turnaround."
Prior to his current position, Mr. Mulally served as president of
Boeing Information, Space & Defense Systems, and senior vice
president of The Boeing Company. Appointed to that role in
February 1997, he was responsible for Boeing's defense, space and
government business.
Beginning in 1994, he was senior vice president of Airplane
Development for Boeing Commercial Airplanes Group, responsible for
all airplane development activities, flight test operations,
certification and government technical liaison.
Mr. Mulally serves as co-chair of the Washington Competitiveness
Council, and sits on the advisory boards of NASA, the University
of Washington, the University of Kansas, Massachusetts Institute
of Technology, and the U.S. Air Force Scientific Advisory Board.
He is a member of the United States National Academy of
Engineering and a fellow of England's Royal Academy of
Engineering.
Mr. Mulally holds bachelor's and master's of science degrees in
aeronautical and astronautical engineering from the University of
Kansas, and earned a master's in management from the Massachusetts
Institute of Technology as a 1982 Alfred P. Sloan fellow.
A member of the board since 1988, Bill Ford, 49, was elected
chairman in September 1998, and took office on Jan. 1, 1999. He
also serves as chairman of the board's Environmental and Public
Policy Committee and as a member of the Finance Committee. He was
named Chief Executive Officer on Oct. 30, 2001.
Bill Ford, who led the Company to three straight years of
profitability through 2005, told employees in his e-mail message
that he looked forward to an excellent working partnership with
Mr. Mulally on global strategic issues.
"Let me assure you: I'm not going anywhere," Bill Ford wrote to
Ford workers. "As executive chairman, I intend to remain
extremely active in the direction of this Company. I'll be here
every day and I will not rest until a prosperous future for this
Company is secured."
Headquartered in Dearborn, Michigan, Ford Motor Company (NYSE: F)
-- http://www.ford.com/-- manufactures and distributes
automobiles in 200 markets across six continents. With more than
324,000 employees worldwide, the company's core and affiliated
automotive brands include Aston Martin, Ford, Jaguar, Land Rover,
Lincoln, Mazda, Mercury and Volvo. Its automotive-related
services include Ford Motor Credit Company and The Hertz
Corporation.
* * *
As reported in the Troubled Company Reporter on Aug. 22, 2006,
Dominion Bond Rating Service placed long-term debt rating of Ford
Motor Company Under Review with Negative Implications following
announcement that Ford will sharply reduce its North American
vehicle production in 2006. DBRS lowered on July 21, 2006, Ford
Motor Company's long-term debt rating to B from BB, and lowered
its short-term debt rating to R-3 middle from R-3 high. DBRS also
lowered Ford Motor Credit Company's long-term debt rating to
BB(low) from BB, and confirmed Ford Credit's short-term debt
rating at R-3(high).
Fitch Ratings also downgraded the Issuer Default Rating of Ford
Motor Company and Ford Motor Credit Company to 'B' from 'B+'.
Fitch also lowered the Ford's senior unsecured rating to 'B+/RR3'
from 'BB-/RR3' and Ford Credit's senior unsecured rating to 'BB-
/RR2' from 'BB/RR2'. The Rating Outlook remains Negative.
Standard & Poor's Ratings Services also placed its 'B+' long-term
and 'B-2' short-term ratings on Ford Motor Co., Ford Motor Credit
Co., and related entities on CreditWatch with negative
implications.
As reported in the Troubled Company Reporter on July 24, 2006,
Moody's Investors Service lowered the Corporate Family and senior
unsecured ratings of Ford Motor Company to B2 from Ba3 and the
senior unsecured rating of Ford Motor Credit Company to Ba3 from
Ba2. The Speculative Grade Liquidity rating of Ford has been
confirmed at SGL-1, indicating very good liquidity over the coming
12 month period. The outlook for the ratings is negative.
FORD MOTOR: Looks at New Business Models to Ensure Recovery
-----------------------------------------------------------
Ford Motor Co.'s chief executive officer Bill Ford informed
employees in a memo issued last week that "the business model that
sustained [the Company] for decades is no longer sufficient to
sustain profitability," the Associated Press reports.
Mr. Ford plans to revitalize the ailing automaker by locking in on
three key areas of change -- accelerating the "Way Forward" plan,
leveraging global assets and strengthening leadership, AP adds.
The admission came as Ford gears up for an aggressive reduction of
North American production as part of broader efforts to accelerate
the pace of its "Way Forward" turnaround. The North American
restructuring calls for, among other things:
-- material cost reductions of at least $6 billion by 2010;
-- a 26% capacity reduction by 2008; and
-- a reduction of plant-related employment by 25,000 - 30,000
in 2006 to 2012.
As reported in the Troubled Company Reporter on Aug. 21, 2006, the
revised plan will cut fourth-quarter production by 21% -- or
168,000 units -- compared with the fourth quarter a year ago, and
reduce third-quarter production by approximately 20,000 units.
Recently, Ford disclosed that it has started exploring strategic
options for the Aston Martin sports-car unit, including a
potential sale of the brand. Mr. Ford had stated that Aston
Martin may be an attractive opportunity to raise capital and
generate value for the Company.
Last month, talks also surfaced about the possible sale of the
Company's Jaguar unit to Sir Anthony Bamford, JC Bamford
Excavators Ltd.'s Chairman. Along with Volvo, Land Rover, and
Aston Martin, Jaguar forms Ford's Premier Automotive Group. The
PAG segment incurred a $180 million net loss in the second quarter
of 2006.
About Ford Motor
Headquartered in Dearborn, Michigan, Ford Motor Company (NYSE: F)
-- http://www.ford.com/-- manufactures and distributes
automobiles in 200 markets across six continents. With more than
324,000 employees worldwide, the company's core and affiliated
automotive brands include Aston Martin, Ford, Jaguar, Land Rover,
Lincoln, Mazda, Mercury and Volvo. Its automotive-related
services include Ford Motor Credit Company and The Hertz
Corporation.
* * *
As reported in the Troubled Company Reporter on Aug. 22, 2006,
Dominion Bond Rating Service placed long-term debt rating of Ford
Motor Company Under Review with Negative Implications following
announcement that Ford will sharply reduce its North American
vehicle production in 2006. DBRS lowered on July 21, 2006, Ford
Motor Company's long-term debt rating to B from BB, and lowered
its short-term debt rating to R-3 middle from R-3 high. DBRS also
lowered Ford Motor Credit Company's long-term debt rating to
BB(low) from BB, and confirmed Ford Credit's short-term debt
rating at R-3(high).
Fitch Ratings also downgraded the Issuer Default Rating of Ford
Motor Company and Ford Motor Credit Company to 'B' from 'B+'.
Fitch also lowered the Ford's senior unsecured rating to 'B+/RR3'
from 'BB-/RR3' and Ford Credit's senior unsecured rating to 'BB-
/RR2' from 'BB/RR2'. The Rating Outlook remains Negative.
Standard & Poor's Ratings Services also placed its 'B+' long-term
and 'B-2' short-term ratings on Ford Motor Co., Ford Motor Credit
Co., and related entities on CreditWatch with negative
implications.
As reported in the Troubled Company Reporter on July 24, 2006,
Moody's Investors Service lowered the Corporate Family and senior
unsecured ratings of Ford Motor Company to B2 from Ba3 and the
senior unsecured rating of Ford Motor Credit Company to Ba3 from
Ba2. The Speculative Grade Liquidity rating of Ford has been
confirmed at SGL-1, indicating very good liquidity over the coming
12 month period. The outlook for the ratings is negative.
FRIEDE GOLDMAN: Liquidating Trust Life Extended for 3 More Years
----------------------------------------------------------------
The Honorable Edward Gaines of the U.S. Bankruptcy Court for the
Southern District of Mississippi extended the duration of The
Consolidated FGH Liquidating Trust.
Under the terms of Friede Goldman Halter, Inc.'s Fourth Amended
Joint Plan or Reorganization and the Court's Confirmation Order,
the Liquidating Trust was created on the effective date, which was
Jan. 13, 2004.
Under the terms of the Plan, the Liquidating Trust will exist for
three years from the effective date of the Plan. However, with
approval of the Bankruptcy Court, an extension of the three-year
term can be granted.
The Liquidating Trust is continuing its efforts to finalize
pending actions and make distributions. The Liquidating Trustees
said it is in the best interest of the estates and creditors to
continue the duration of the Liquidating Trust.
Headquartered in Gulfport, Mississippi, Friede Goldman Halter,
Inc., was a world leader in the design and manufacture of
equipment for the maritime and offshore energy industries. Friede
Goldman and its debtor-affiliates filed for chapter 11 protection
on Apr 19, 2001 (Bankr. D. Ms. Case No. 01-52173). When the
Debtors filed for chapter 11 protection, they listed assets
totaling $802 million and liabilities totaling $704 million. The
Bankruptcy Court confirmed the Debtors' Fourth Amended Joint Plan
or Reorganization on Dec. 30, 2003. The Plan became effective on
Jan. 13, 2004. A Liquidating Trust was created to liquidate the
Debtors' assets; make distributions, and wind down the Debtors
affairs. Oakridge Consulting, Inc., and Ocean Ridge Capital
Advisors, L.L.C., were appointed as Liquidation Trustees.
Douglas S. Draper, Esq., Leslie A. Collins, Esq., and Greta M.
Brouphy, Esq., at Heller, Draper, Hayden, Patrick & Horn, LLC,
represent the Liquidation Trustees.
GLOBAL HOME: Court Approves WearEver Sale to Groupe SEB for $36MM
-----------------------------------------------------------------
The Honorable Kevin Gross of the U.S. Bankruptcy Court for the
District of Delaware approved the sale of certain assets of the
WearEver Debtors to Groupe SEB USA for approximately
$36.5 million.
The WearEver Debtors are affiliates of Global Home Products LLC.
The WearEver Debtors are:
* Mirro Acquisition, Inc.,
* Mirro PuertoRico, Inc., and
* Mirro Operating Company LLC.
Mirro WearEver, through its trademarks Mirro in the entry price
range and WearEver and Air Bake in the mid price range, generated
cookware and bakeware sales of approximately $120 million in 2005.
Mirro WearEver manufactures certain of its products in Nuevo
Laredo, Mexico. Mirro WearEver currently sells its products
through mass retail distribution channels in the United States.
The scope of the acquisition includes all inventories, trade
receivables, and equipment in Nuevo Laredo, and trademarks.
This transaction fits in Groupe SEB's strategy to reinforce its
presence in the American cookware market, complementing its
All-Clad presence in the premium price range and its T-Fa1 brand
in the mid price range. Additionally, these new trademarks will
reinforce the Group's presence in all distribution channels within
the United States.
The acquisition of Mirro WearEver will be financed through debt
and is expected to have a positive impact on Groupe SEB earnings
in 2007.
"This acquisition reflects the capacity of the Group to seize
strategic opportunities when they arise," Thierry de La Tour
d'Artaise, Groupe SEB's chairman and chief executive officer
commented on the acquisition.
"It allows us to pursue our international development and to
consolidate our presence in the American cookware market, where
Groupe SEB now becomes an undisputed leader."
Headquartered in Westerville, Ohio, Global Home Products, LLC
-- http://www.anchorhocking.com/and http://www.burnesgroup.com/
-- sells houseware and home products and manufactures high
quality glass products for consumers and the food services
industry. The company also designs and markets photo frames,
photo albums and related home decor products. The company and
16 of its affiliates, including Burnes Puerto Rico, Inc., and
Mirro Puerto Rico, Inc., filed for Chapter 11 protection on
Apr. 10, 2006 (Bankr. D. Del. Case No. 06-10340). Laura Davis
Jones, Esq., Bruce Grohsgal, Esq., James E. O'Neill, Esq., and
Sandra G.M. Selzer, Esq., at Pachulski, Stang, Ziehl, Young, Jones
& Weintraub LLP, represent the Debtors. Bruce Buechler, Esq., at
Lowenstein Sandler, P.C., represents the Official Committee Of
Unsecured Creditors. When the company filed for protection from
their creditors, they estimated assets between $50 million and
$100 million and estimated debts of more than $100 million.
GLOBAL HOME: WearEver Sale Incentive Program Gets Court's Nod
-------------------------------------------------------------
The Honorable Kevin Gross of the U.S. Bankruptcy Court for the
District of Delaware approved a performance-based management
incentive plan of Global Home Products LLC and its debtor-
affiliates, conditioned on the going concern sale of substantially
all assets of these WearEver Debtors:
* Mirro Acquisition, Inc.,
* Mirro PuertoRico, Inc., and
* Mirro Operating Company LLC.
The WearEver Debtors sell metal cookware, bakeware and related
accessories throughout North America.
As reported in the Troubled Company Reporter on Aug. 30, 2006, the
WearEver Debtors' business is not profitable under its current
capital structure. The Debtors will be unable to continue the
business as a going concern beyond the near term. The Debtors
have already asked permission to sell the business for at least
$21 million.
To provide appropriate incentives for the employees of the
WearEver Debtors to effectuate the proposed sale, the Debtors want
to implement a multi-tiered performance-based management sale
incentive program conditioned on the successful closing of the
proposed sale and other benchmarks.
The Incentive Plan will cover the 11 principal employees involved
in the proposed sale. The Debtors believe that these employees
require additional incentives to close the proposed sale, given
the hard work and dedication that they have displayed from the
time of the decision to sell the assets through the approval of
the sale procedures, and given the additional hard work and
dedication that will be required of those employees through the
closing of the sale.
Under the proposed multi-tiered Incentive Plan:
(a) on the closing of the going concern sale of the WearEver
business, each of the WearEver Sale Employees who fulfilled
his or her obligations to the Debtors through the closing
will be entitled to receive a one-time incentive payment
ranging from 20% to 40% of the employee's annual salary; or
(b) on the closing of the proposed sale and in the event
that the gross proceeds are equal to or greater than
$25 million, each WearEver Sale Employees will receive a
one-time incentive payment ranging from 25% to 50% of the
employee's annual salary; or
(c) on the closing of the proposed sale and in the event that
the gross proceeds are equal to $30 million, each WearEver
Sale Employees will receive a one-time incentive payment
ranging from 30% to 55% of the employee's annual salary; or
(d) on the closing of the proposed sale and in the event that
the gross proceeds are greater than $30 million, each
WearEver Sale Employees will receive:
(i) a one-time incentive payment ranging from 30% to 55% of
the employee's annual salary; and
(ii) for each $1 million of gross proceeds received in
excess of $30 million, the aggregate payments to all
WearEver Sale Employees would increase by 1%, subject
to a maximum increase of 15% if the aggregate gross
sale proceeds equals or exceed $45 million.
Total payments under the Incentive Plan will not exceed $538,142
in the aggregate.
Headquartered in Westerville, Ohio, Global Home Products, LLC
-- http://www.anchorhocking.com/and http://www.burnesgroup.com/
-- sells houseware and home products and manufactures high
quality glass products for consumers and the food services
industry. The company also designs and markets photo frames,
photo albums and related home decor products. The company and
16 of its affiliates, including Burnes Puerto Rico, Inc., and
Mirro Puerto Rico, Inc., filed for Chapter 11 protection on
Apr. 10, 2006 (Bankr. D. Del. Case No. 06-10340). Laura Davis
Jones, Esq., Bruce Grohsgal, Esq., James E. O'Neill, Esq., and
Sandra G.M. Selzer, Esq., at Pachulski, Stang, Ziehl, Young, Jones
& Weintraub LLP, represent the Debtors. Bruce Buechler, Esq., at
Lowenstein Sandler, P.C., represents the Official Committee Of
Unsecured Creditors. When the company filed for protection from
their creditors, they estimated assets between $50 million and
$100 million and estimated debts of more than $100 million.
GS MORTGAGE: Fitch Lowers Class B-2 Certificates' Rating to BB+
---------------------------------------------------------------
Fitch Ratings took rating actions on these GS Mortgage Securities
Corp. residential mortgage pass-through certificates:
Series 2003-HE1:
-- Class M-1 affirmed at 'AA'
-- Class M-2 affirmed at 'A+'
-- Class M-3 affirmed at 'A-'
-- Class B-1 downgraded to 'BBB-' from 'BBB'
-- Class B-2 downgraded to 'BB+' from 'BBB-'
The affirmations, affecting approximately $53.37 million of the
outstanding certificates, reflect a stable relationship between
credit enhancement and expected loss. The downgrades, affecting
approximately $10.25 million of the outstanding certificates, are
taken as a result of deterioration in the relationship between
credit enhancement and future expected losses. The downgraded
bonds have been on Rating Watch Negative for six months.
Since classes B-1 and B-2 were placed on Rating Watch Negative,
the transaction has passed both triggers and $4.1 million of
overcollateralization was released to class X. Monthly losses
have generally exceeded excess spread over the last twelve months
causing the OC to deteriorate below its target before and after
its step-down date.
Although cumulative losses as a percentage of the initial pool
balance are expected to be lower than initially expected, excess
spread available to cover losses is currently less than initially
anticipated due to fast collateral prepayments and rising interest
rates. As the bond coupons are floating rate, the available
excess spread has been further squeezed as the pool has become
significantly more weighted towards fixed-rate mortgages.
The percentage of the pool composed of fixed-rate mortgages has
increased from 40% at issuance to approximately 63% of the current
pool balance.
The collateral of the transaction consists of sub-prime, closed-
end, first-lien, fixed-rate and adjustable-rate mortgage loans
that are separated into two groups. Group 1 consists of loans
with original principal balances that conform to Freddie Mac and
Fannie Mae principal balance limit guidelines and Group 2 consists
of all other loans.
Approximately 59% of the loans were originated to the underwriting
guidelines of New Century Mortgage Corp. and approximately 41% of
the loans were originated to the underwriting guidelines of
Finance America. The loans are serviced by Ocwen Financial Corp.,
which is rated 'RPS2' by Fitch.
Series 2003-HE1 is seasoned 39 months and has a pool factor (i.e.,
current mortgage loans outstanding as a percentage of the initial
pool) of approximately 15%.
HOLLINGER INC: Ontario Ct. Issues Asset Freeze Order on Lord Black
------------------------------------------------------------------
The Honorable Colin Campbell of the Ontario Superior Court placed
a $20,000 monthly allowance restriction for Lord Conrad Black and
his wife, Barbara Amiel.
The restriction is part of a Mareva order freezing all of Lord
Black's assets, Elena Cherney writes for The Wall Street Journal.
The Blacks may apply for additional funds after they file a sworn
affidavit listing the value of their assets.
Hollinger Inc. asked the Court to issue the freeze order last
month on fears that it may not be able to recover damages from the
Blacks if it wins in a lawsuit filed against Lord Black, the
National Post reports. Trial is slated to begin in March next
year.
Hollinger Inc. is accusing Lord Black of breach of contract,
conspiracy and unjust enrichment. Hollinger claims it was
stripped of its assets when the media baron transferred his
holdings to U.S.-based Hollinger International Inc. Hollinger
Inc. wants to recover $700 million from Lord Black.
About Hollinger Inc.
Toronto, Ontario-based Hollinger Inc.'s (TSX: HLG.C)(TSX:
HLG.PR.B) -- http://www.hollingerinc.com/-- principal asset is
its 66.8% voting and 17.4% equity interest in Hollinger
International, a newspaper publisher with assets, which include
the Chicago Sun-Times and a large number of community newspapers
in the Chicago area. Hollinger also owns a portfolio of
commercial real estate in Canada.
Litigation Risks
Hollinger, Inc., faces various court cases and investigations:
(1) a consolidated class action complaint filed in Chicago,
Illinois;
(2) a class action lawsuit that was filed in the Saskatchewan
Court of Queen's Bench on September 7, 2004;
(3) a $425,000,000 fraud and damage suit filed in the State
of Illinois by Hollinger International;
(4) a lawsuit seeking enforcement of a November 15, 2003,
restructuring proposal to uphold a Shareholders' Rights
Plan, a declaration that corporate by-laws were invalid and
to prevent the closing of a certain transaction;
(5) a lawsuit filed by Hollinger International seeking
injunctive relief for the return of documents of which it
claims ownership;
(6) a $5,000,000 damage action commenced by a lessor of an
aircraft lease, in which Hollinger was the guarantor;
(7) an action commenced by the United States Securities and
Exchange Commission on November 15, 2004, seeking
injunctive, monetary and other equitable relief; and
(8) investigation by the enforcement division of the OSC
Hollinger Inc. has also been unable to file its annual financial
statements, Management's Discussion & Analysis and Annual
Information Form for the years ended Dec. 31, 2003, 2004 and 2005
on a timely basis as required by Canadian securities legislation.
Hollinger has not filed its interim financial statements for the
fiscal quarters ended March 31, June 30 and Sept. 30 in each of
its 2004 and 2005 fiscal years. Also, Hollinger has not filed its
financial statements for the period ended March 31, 2006.
INCO LTD: Terminates Merger Agreement with Phelps Dodge
-------------------------------------------------------
Inco Limited agreed with Phelps Dodge Corporation to terminate the
Combination Agreement the parties entered into on June 25, 2006.
Inco also cancelled the special meeting of Inco shareholders
called for Sept. 7, 2006.
Consistent with the terms of the agreement entered into between
the parties, Inco will pay Phelps Dodge a termination fee of
$125 million and a further $350 million if Inco consummates an
alternative take-over bid or similar transaction on or prior to
Sept. 7, 2007. Inco would have paid these same amounts had the
agreement been terminated after Inco shareholders failed to
approve the Phelps Dodge transaction at the special meeting.
"It was very clear from the proxies we received that Inco
shareholders were not going to support the Phelps Dodge
transaction, so the two companies agreed that it was in our
respective best interests to move on," Scott Hand, Chairman and
Chief Executive Officer of Inco, stated.
"We have enjoyed working with the Phelps Dodge team," Mr. Hand
said. "It is a great company and we wish them all the best in the
future."
Following the termination of the Combination Agreement, Inco is no
longer restricted in its ability to solicit acquisition proposals
from, provide confidential information to or enter into
negotiations or agreements with interested parties concerning
potential value enhancing alternatives. The Board has authorized
Inco's senior management and its advisors to explore these
alternatives consistent with the company's commitment to maximize
value to Inco shareholders. Inco also continues to be open to
entering into discussions or negotiations with Companhia do Vale
Rio Doce with regard to its offer of Aug. 14, 2006. Inco cautions
that there can be no assurance that such actions will lead to Inco
entering into discussions or negotiations resulting in a binding
agreement with respect to any transaction with any party.
About Phelps Dodge
Headquartered in Phoenix, Arizona, Phelps Dodge Corp. (NYSE: PD)
-- http://www.phelpsdodge.com/-- produces copper and molybdenum
and is the largest producer of molybdenum-based chemicals and
continuous-cast copper rod. The company and its two divisions,
Phelps Dodge Mining Co. and Phelps Dodge Industries, employ
approximately 13,500 people worldwide.
About CVRD
Headquartered in Rio de Janeiro, Brazil, Companhia Vale do Rio
Doce -- http://www.cvrd.com.br/-- engages primarily in mining
and logistics businesses. It engages in iron ore mining, pellet
production, manganese ore mining, and ferroalloy production, as
well as in the production of nonferrous minerals, such as
kaolin, potash, copper, and gold.
About Inco Ltd.
Headquartered in Sudbury, Ontario, Inco Limited (TSX, NYSE:N) --
http://www.inco.com/-- produces nickel, which is used primarily
for manufacturing stainless steel and batteries. Inco also
mines and processes copper, gold, cobalt, and platinum group
metals. It makes nickel battery materials and nickel foams,
flakes, and powders for use in catalysts, electronics, and
paints. Sulphuric acid and liquid sulphur dioxide are produced
as byproducts. The company's primary mining and processing
operations are in Canada, Indonesia, and the U.K.
* * *
Inco Limited's 3-1/2% Subordinated Convertible Debentures due
2052 carry Moody's Investors Service's Ba1 rating.
INTEL CORP: Plans to Cut 10,500 Jobs by Mid-2007
------------------------------------------------
Intel Corporation plans to restructure following an analysis of
the company's structure and efficiency. As a result of the
restructuring, the company expects to generate savings in costs
and operating expenses of approximately $2 billion in 2007. In
2008, the company expects savings from this restructuring to grow
to approximately $3 billion annually.
The savings are a combination of non-workforce related steps and a
significant reduction in Intel's workforce. The company's
employee population will decline to approximately 95,000 by the
end of this year, resulting from workforce reductions, attrition
and previously announced actions. The workforce will decline to
approximately 92,000 by the middle of 2007 -- 10,500 fewer than
the company's employee population at the end of the second quarter
of 2006. In addition to the savings from the workforce reduction,
the company expects savings in merchandising expenses, capital and
materials.
"These actions, while difficult, are essential to Intel becoming a
more agile and efficient company, not just for this year or the
next, but for years to come," said Paul Otellini, Intel president
and chief executive officer.
Most job reductions this year will occur in management, marketing
and information technology functions, reductions related to the
previously announced sale of businesses, and attrition. In 2007,
the reductions will be more broadly based as Intel improves labor
efficiency in manufacturing, improves equipment utilization,
eliminates organizational redundancies, and improves product
design methods and processes.
In 2008, the company expects the cost and operating expense
savings from this restructuring to grow to $3 billion as it
achieves the full-year run rate on the projects implemented in
2007. In addition, Intel expects to achieve a capital expenditure
avoidance of $1 billion by better utilizing manufacturing
equipment and space. The company expects that approximately 25%
of the project's savings in 2007 will reduce cost of sales, and
the rest will reduce operating expenses.
The company expects severance costs to total $200 million,
offsetting some of the expected savings from the project's
implementation.
Headquartered in Santa Clara, California, Intel Corporation --
http://www.intel.com/-- manufactures computer, networking, and
communications products.
INTELSAT LTD: June 30 Stockholder's Deficit Widens to $331 Million
------------------------------------------------------------------
Intelsat Ltd.'s total shareholder's deficit at June 30, 2006,
increased by $40,630,000, to $331,172,000 from $290,542,000 in the
previous quarter.
At June 30, 2006, the Company had $5,149,314,000 in total assets
and $5,480,486,000 in total liabilities compared with total assets
of $5,162,113,000 and total liabilities of $5,452,655,000 at
March 31, 2006.
For the three months ended June 30, 2006, the Company's net loss
narrowed to $42,685,000 from a $90,110,000 net loss in the quarter
ended March 31, 2006, while its total revenues increased to
$310,534,000 from the $280,446,000 total revenue in the first
quarter of 2006.
Full text copies of Intelsat's financial statements for the
quarter ended June 30, 2006, are available for free at:
http://researcharchives.com/t/s?1112
Full text copies of Intelsat's financial statements for the
quarter ended March 31, 2006, is available for free at:
http://researcharchives.com/t/s?afe
Intelsat, Ltd. -- http://www.intelsat.com/-- offers telephony,
corporate network, video and Internet solutions around the globe
via capacity on 25 geosynchronous satellites in prime orbital
locations. Customers in approximately 200 countries rely on
Intelsat's global satellite, teleport and fiber network for high-
quality connections, global reach and reliability.
* * *
As reported in the Troubled Company Reporter on June 19, 2006,
Fitch upgraded the Issuer Default Rating for Intelsat to 'B' from
'B-' pro forma for its pending acquisition of PanAmSat. The
ratings were also removed from Rating Watch Negative, where they
had originally been placed on Aug. 30, 2005. Fitch said the
Rating Outlook is Stable.
As reported in the Troubled Company Reporter on June 13, 2006,
Moody's Investors Service affirmed the B2 corporate family rating
of Intelsat, Ltd., and downgraded the corporate family rating of
PanAmSat Corporation to B2, given the greater clarity regarding
the final capital structure and the near-term completion of the
PanAmSat acquisition by Intelsat.
INTERNATIONAL PAPER: Closes Sale of Brazilian Units to Stora
-------------------------------------------------------------
International Paper has completed the sale of its Brazilian coated
papers business to Stora Enso Oyj for approximately $420 million,
subject to certain post-closing adjustments. The business
includes a coated paper mill and lumber mill in Arapoti, Parana
State, Brazil, as well as 50,000 hectares (approximately 124,000
acres) of forestland in Parana. Industria de Papel Arapoti Ltda.
and Inpacel Agroflorestal Ltda., subsidiaries of International
Paper, formerly owned these assets.
The Brazilian coated papers business had sales of approximately
$230 million in 2005. It produces approximately 200,000 metric
tonnes of coated paper for catalog, magazine and retail insert
markets, and approximately 83 million board feet of lumber each
year. Included among the 50,000 hectares of forestlands are
25,000 hectares of pine plantation and 5,000 hectares of
eucalyptus plantation. The business employs 711 people.
About Stora Enso
Stora Enso -- http://www.storaenso.com/-- is an integrated paper,
packaging, and forest products company, producing publication and
fine paper, packaging board, and wood products -- all areas in
which the Group is a global market leader. Stora Enso's sales
totalled EUR13.2 billion in 2005. The Group has about 46,000
employees in more than 40 countries on five continents.
About International Paper
Based in Stamford, Connecticut, International Paper Company (NYSE:
IP) -- http://www.internationalpaper.com/-- is in the forest
products industry for more than 100 years. The company is
currently transforming its operations to focus on its global
uncoated papers and packaging businesses, which operate and serve
customers in the U.S., Europe, South America and Asia. These
businesses are complemented by an extensive North American
merchant distribution system. International Paper is committed to
environmental, economic and social sustainability, and has a long-
standing policy of using no wood from endangered forests.
* * *
Moody's Investors Service assigned a Ba1 senior subordinate rating
and Ba2 Preferred Stock rating on International Paper Company on
Dec. 5, 2005.
KAISER ALUMINUM: Settles Dispute Over 3 Products Coverage Insurers
------------------------------------------------------------------
Judge Judith K. Fitzgerald of the U.S. Bankruptcy Court for the
District of Delaware approves Kaiser Aluminum & Chemical Corp.'s
settlement agreements with Republic Indemnity Company, Transport
Insurance Company, and Hudson Insurance Company.
As reported in the Troubled Company Reporter on July 20, 2006,
KACC and the three insurers have engaged in separate negotiations
to resolve their disputes regarding the subject policies,
Kimberly D. Newmarch, Esq., at Richards, Layton & Finger, in
Wilmington, Delaware, related.
Under their respective Settlement Agreements with KACC,
(a) Republic agrees to make a $1,500,000 settlement payment
within 14 days after the Court grants final approval to
the Settlement;
(b) Transport will pay $1,000,000 as settlement amount no
later than 30 days after execution of the Settlement
Agreement; and
(c) Hudson agrees to pay $500,000 before or on October 15
each year from 2007 to 2012, for a total of $3,000,000 as
settlement payment.
All three insurers will pay their Settlement Amounts to the U.S.
Bank National Association, as settlement account agent, unless the
Trigger Date has occurred, in which case, to Wells Fargo Bank,
N.A., as insurance escrow agent, for distribution to the Funding
Vehicle Trust.
Judge Fitzgerald directs KACC to dismiss, without prejudice, its
claims, counterclaims or cross-claims against the three insurers
in the action filed before the Superior Court of California,
County of San Francisco, within 14 days after the Court orders
become final. Upon the occurrence of the Trigger Date, the
dismissals will be deemed to be dismissals with prejudice.
The insurers' full payment of their respective settlement amounts
will satisfy and extinguish in full their obligations with respect
to all:
-- claims under the subject insurance policies they issued to
KACC; and
-- tort claims under the other insurance policies they issued
to KACC.
Headquartered in Foothill Ranch, California, Kaiser Aluminum
Corporation -- http://www.kaiseraluminum.com/-- is a leading
producer of fabricated aluminum products for aerospace and high-
strength, general engineering, automotive, and custom industrial
applications. The Company filed for chapter 11 protection on Feb.
12, 2002 (Bankr. Del. Case No. 02-10429), and has sold off a
number of its commodity businesses during course of its cases.
Corinne Ball, Esq., at Jones Day, represents the Debtors in their
restructuring efforts. Lazard Freres & Co. serves as the Debtors'
financial advisor. Lisa G. Beckerman, Esq., H. Rey Stroube, III,
Esq., and Henry J. Kaim, Esq., at Akin, Gump, Strauss, Hauer &
Feld, LLP, and William P. Bowden, Esq., at Ashby & Geddes
represent the Debtors' Official Committee of Unsecured Creditors.
The Debtors' Chapter 11 Plan became effective on July 6, 2006. On
June 30, 2004, the Debtors listed $1.619 billion in assets and
$3.396 billion in debts. (Kaiser Bankruptcy News, Issue No. 104;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 609/392-0900)
KAISER ALUMINUM: Says Agrium's Move to Pursue Claim is Meritless
----------------------------------------------------------------
Kaiser Aluminum & Chemical Corp. and Kaiser Aluminum Properties,
Inc., assert that the request filed by Agrium, Inc., and Agrium
U.S. Inc. is meritless and should be denied in all respects.
As reported in the Troubled Company Reporter on Aug. 8, 2006, the
Agrium Companies asked the U.S. Bankruptcy Court for the District
of Delaware to:
(a) declare that the automatic stay does not apply;
(b) interpret Kaiser Aluminum & Chemical Corp.'s Plan to
determine the appropriate treatment of their claim; and
(c) modify the discharge injunction to permit them to
liquidate their claims against the estate, or the
Reorganized Debtors, and pursue their claims against any
available insurance.
Kimberly D. Newmarch, Esq., at Richards, Layton & Finger in
Wilmington, Delaware, says that the Agrium Companies' contingent
contribution claim fails to meet these requirements to be entitled
to administrative priority:
-- the administrative expense arose out of a postpetition
transaction with the debtor-in-possession; and
-- the expense directly and substantially benefited the
estate.
The Agrium Companies' contribution claim did not arise from any
postpetition transaction but from the Reorganized Debtors'
operation of a facility in Cantrall, Illinois, decades ago,
Ms. Newmarch points out.
Moreover, the Reorganized Debtors did not cause or commit any
wrongdoing; any harm caused was the result of operations of the
Cantrall Facility decades before the Chapter 11 cases were even
commenced, thus the Agrium Companies' claim could not possibly be
considered to have conferred a benefit on, or be a necessary
expense of, the Reorganized Debtors' estates, Ms. Newmarch
explains.
The Agrium Companies' claim is contingent because neither the
Agrium Companies nor KACC or KAPI have been found liable with
respect to the alleged injuries of Daniel Freeman and the Estate
of Savannah Olson, nor have the Agrium Companies made any payment
to the Personal Injury Claimants, Ms. Newmarch tells the Court.
Accordingly, even if it had been filed as required under the
Court's bar date order, the claim would have to be disallowed
pursuant to Section 502(e)(1)(B) of the Bankruptcy Code,
Ms. Newmarch contends, citing In re Ecco D'Oro Food Corp., 249
B.R. 300, 302 (Bankr. N.D.Ill.2000), among others.
As for the Agrium Companies' requested relief from the discharge
injunction to pursue potentially available insurance, the
Reorganized Debtors say that the insurance policies that could
even arguably provide coverage are those that have been bought out
under Court-approved settlement agreements.
And as the Court just recently recognized in connection with the
Personal Injury Claimants' objection to the settlement with ACE
Property & Casualty Company and its affiliates, the coverage under
those policies has been allocated to the various tort claims,
Ms. Newmarch discloses.
Thus, the Reorganized Debtors assert, there is no reason to grant
any relief from the injunctions in the Confirmation Order to
permit the Agrium Companies to pursue insurance.
Headquartered in Foothill Ranch, California, Kaiser Aluminum
Corporation -- http://www.kaiseraluminum.com/-- is a leading
producer of fabricated aluminum products for aerospace and high-
strength, general engineering, automotive, and custom industrial
applications. The Company filed for chapter 11 protection on Feb.
12, 2002 (Bankr. Del. Case No. 02-10429), and has sold off a
number of its commodity businesses during course of its cases.
Corinne Ball, Esq., at Jones Day, represents the Debtors in their
restructuring efforts. Lazard Freres & Co. serves as the Debtors'
financial advisor. Lisa G. Beckerman, Esq., H. Rey Stroube, III,
Esq., and Henry J. Kaim, Esq., at Akin, Gump, Strauss, Hauer &
Feld, LLP, and William P. Bowden, Esq., at Ashby & Geddes
represent the Debtors' Official Committee of Unsecured Creditors.
The Debtors' Chapter 11 Plan became effective on July 6, 2006. On
June 30, 2004, the Debtors listed $1.619 billion in assets and
$3.396 billion in debts. (Kaiser Bankruptcy News, Issue No. 104;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 609/392-0900)
KANSAS CITY SOUTHERN: S&P Affirms B Corporate Credit Rating
-----------------------------------------------------------
Standard & Poor's Ratings Services affirmed its ratings, including
the 'B' corporate credit rating, on Kansas City Southern and
removed the ratings from CreditWatch.
Ratings were initially placed on CreditWatch on April 4, 2006, and
lowered to current levels on April 10, 2006. The outlook is
negative.
The rating affirmation follows a review of the company's current
liquidity position and operating prospects.
"The ratings reflect Kansas City Southern's constrained liquidity,
highly leveraged capital structure, and challenges associated with
the integration of Kansas City Southern de Mexico S.A. de C.V.
[previously TFM S.A. de C.V.], the Mexican railroad it acquired in
April 2005, offset by the favorable characteristics of the U.S.
freight railroad industry and the company's strategically located
rail network," said Standard & Poor's credit analyst Lisa Jenkins.
"We expect that favorable industry conditions will enable Kansas
City Southern to strengthen its currently extended financial
profile and improve its liquidity position over the near to
intermediate term."
Kansas City Southern is a Class 1 (large) U.S. freight railroad.
It is significantly smaller and less diversified than its peers,
but operates a very strategically located rail network. With its
north-south orientation, Kansas City Southern is well positioned
to take advantage of NAFTA trade opportunities.
KCSM serves the three largest cities in Mexico, representing a
majority of the Mexican population and GDP. Its rail lines
connect with the principal border gateway and largest freight
exchange point between the U.S. and Mexico at Nuevo Laredo/Laredo
and serves three of the four principal seaports in Mexico. Kansas
City Southern's rail lines run through 10 states in the southern
and midwestern U.S. and interconnect with many of the larger,
Class 1 North American railroads.
Kansas City Southern had previously maintained a 49% voting
interest in KCSM. Now that it owns 100% of the company, Kansas
City Southern is more fully integrating its operations with those
of KCSM and is expected to achieve marketing and cost synergies
over time.
Although Kansas City Southern now influences the management of
day-to-day operations at KCSM, the two companies have retained
separate legal identities and are continuing to finance their
operations separately.
With the exception of the automotive sector, most end markets
served by the two companies have favorable outlooks at present.
This should translate into improved revenues and earnings over the
near-to-intermediate term.
Ratings assume that Kansas City Southern will improve its
liquidity position over the near to intermediate term and
refinance upcoming debt maturities. Failure to do so could lead
to a downgrade.
If the company improves its liquidity position and sustains
improved credit protection measures, the outlook could be revised
to stable or positive, depending upon the magnitude of the
improvement.
KIWA BIO-TECH: Capital Infusion Narrows Equity Deficit at June 30
-----------------------------------------------------------------
Kiwa Bio-Tech Products Group Corporation incurred a $1,017,482 net
loss on $13,351 of revenues for the second quarter ending June 30,
2006, the Company disclosed on a Form 10-QSB report filed with the
Securities and Exchange Commission.
As of June 30, 2006, the Company's balance sheet showed assets
amounting to $3,929,468 and debts totaling $4,079,343. The
Company's equity deficit narrowed to $149,875 as of June 30, 2006,
from a $564,993 deficit at Dec. 31, 2005.
Lian jun Luo, the Company's chief financial officer, disclosed
that since inception of the agri-biotech business in 2002, the
Company has relied on the proceeds from the sale of its equity
securities and loans from both unrelated and related parties to
provide the resources necessary to fund its operations and the
execution of its business plan.
During the six months ended June 30, 2006, the Company raised
$75,633 in debt financing from two related parties, $745,416 for
the issuance of 5,000,000 shares of common stock under a stock
purchase agreement dated as of March 10, 2006, and $700,000 for
the first payments in respect of the issuance of 6% secured
convertible notes of which the total commitment $2,450,000.
According to Mr. Luo, these funds are most likely insufficient to
execute our business plan and we expect that we will need to seek
other sources of funding to sustain our operations.
A full-text copy of the regulatory filing is available for free
at http://ResearchArchives.com/t/s?1114
Going Concern Doubt
Mao & Company, CPAs, Inc., in New York, New York, raised
substantial doubt about Kiwa Bio-Tech Products Group Corporation's
ability to continue as a going concern after auditing the
Company's consolidated financial statements for the year ended
Dec. 31, 2005. The auditing firm pointed to the Company's
operating losses and working capital and net capital deficits.
About Kiwa Bio-Tech Products Group
Headquartered in City of Industry, California, Kiwa Bio-Tech
Products Group Corporation (OTCBB: KWBT.OB) --
http://www.kiwabiotech.com/-- develops, manufactures,
distributes, and markets innovative, cost-effective and
environmentally safe bio-technological products for agriculture,
natural resources and environmental conservation.
LE GOURMET: Gets 45 Days extension to File Required Schedules
-------------------------------------------------------------
The U.S. Bankruptcy Court for the District of New Jersey, granted
the request of Le Gourmet Chef, Inc. for a 45-day extension,
within which it can file its schedules of assets and liabilities,
statements of financial affairs, lists of equity security holders
and lists of executory contracts and leases.
The requested 45-day extension is in addition to the 15-day
automatic extension to file the schedules provided for by
Bankruptcy Rule 1007(c).
The Debtor says that due to its complex business and limited
staffing to complete the required schedules, the 15-day automatic
extension is not sufficient to prepare and complete the required
schedules.
Headquartered in Shrewsbury, New Jersey, Le Gourmet Chef, Inc.,
-- http://www.legourmetchef.com/-- is a retailer specializing in
solutions for entertaining and gift giving. The Company filed for
bankruptcy on Aug. 8, 2006 (Bankr. D. N.J. Case No. 06-17364).
John DiIorio, Esq., at Shapiro & Croland, and Wendy G. Marcari,
Esq., at Traub, Bonacquist, & Fox, LLP, represent the Debtor.
When the Debtor filed for bankruptcy, the Debtor estimated its
assets and debts at $10 million to $50 million.
MDWERKS INC: June 30 Balance Sheet Upside-Down by $1.9 Million
--------------------------------------------------------------
MDwerks, Inc., incurred a $1.9 million net loss on $71,905 of net
revenues for the three months ended June 30, 2006, compared with a
$379,131 net loss on $9,976 of net revenues in 2005, the Company
disclosed in a Form 10-QSB report filed with the Securities and
Exchange Commission.
At June 30, 2006, the Company's balance sheet showed $1.3 million
in total assets and $3.2 million in total liabilities, resulting
in a $1.9 million stockholders' deficit.
The Company's June 30 balance sheet also showed strained liquidity
with $1.1 million in total current assets available to pay
$3 million in total current liabilities coming due within the next
12 months.
A full-text copy of the Company's Quarterly Report is available
for free at http://researcharchives.com/t/s?1117
Going Concern Doubt
Goldstein Golub Kessler LLP, raised substantial doubt about
MDwerks, Inc.'s ability to continue as a going concern after
auditing the Company's consolidated financial statements for the
year ended Dec. 31, 2005. The auditor pointed to the Company's
recurring losses from operations and net capital deficiency.
About MDwerks
Based in Deerfield Beach, Florida, MDwerks, Inc. (OTCBB: MDWK) --
http://www.mdwerks.com/-- provides healthcare professionals with
automated electronic insurance claims management solutions and
advance funding of medical claims, as submitted, through a
revolving line of credit. MDwerks(TM) solutions comprise an
innovative Web-based, HIPAA-compliant system of comprehensive
administrative and financial services designed for physician
practices of all sizes and specialties whether in a single or
multi-location operation. Financial lenders, healthcare payers
and other related business, including mobile diagnostic companies,
billing companies and clearinghouses, also benefit from MDwerks
solutions.
MICROHELIX INC: Working Capital Deficit Tops $1.8 Mil. at June 30
-----------------------------------------------------------------
microHelix, Inc., filed its financial statements for the second
quarter ended June 30, 2006, with the Securities and Exchange
Commission on Aug. 21, 2006.
The Company reported a $102,656 net loss on $3,949,315 of sales
for the second quarter of 2006 compared with a $980,113 net loss
on $2,443,595 of sales for the same period in 2005.
At June 30, 2006, the Company's balance sheet showed $6,671,226 in
total assets, $6,632,003 in total liabilities, and a de minimis
$39,224 shareholders' equity.
The Company's June 30 balance sheet showed strained liquidity with
$3,447,272 in total current assets available to pay $5,289,069 in
total current liabilities coming due within the next 12 months.
Full-text copies of the Company's second quarter financials are
available for free at http://ResearchArchives.com/t/s?1121
Going Concern Doubt
Stonefield Josephson, Inc., in Los Angeles, California, raised
substantial doubt about microHelix, Inc.'s ability to continue as
a going concern after auditing the company's consolidated
financial statements for the year ended Dec. 31, 2005. The
auditor pointed to the company's operating losses since inception,
and accumulated and working capital deficiencies.
About microHelix
microHelix, Inc. (OTCBB: MHLX) -- http://www.microhelix.com/--
designs and manufactures cable assemblies for original equipment
manufacturers. The company's products are used in medical
ultrasound probes, patient monitoring devices, aerospace
components and video surveillance assemblies.
MILLER PETROLEUM: Rodefer Moss Raises Going Concern Doubt
---------------------------------------------------------
Rodefer Moss & Co, PLLC, in Knoxville, Tenn., raised substantial
doubt about Miller Petroleum, Inc.'s ability to continue as a
going concern after auditing the Company's consolidated financial
statements for the year ended April 30, 2006, and 2005. The
auditor pointed to the Company's recurring operating losses and
common stock subject to put option, which the Company does not
have the current capability of funding.
The Company reported a net loss of $3,589,934 on $2,538,772 of
total revenues for the year ended April 30, 2006, compared with a
net loss of $261,424 on $1,030,036 of total revenues for the same
period in 2005.
At April 30, 2006, the Company's balance sheet showed $5,227,298
in total assets, $716,470 in total liabilities, $4,350,000 in
common stock subject to put rights, and a de minimis $160,828
stockholder's equity.
A full-text copy of the Company's annual report is available for
free at http://ResearchArchives.com/t/s?1122
Miller Petroleum Inc. -- http://www.millerpetroleum.com/-- which
has been drilling in the southern Appalachian region since 1967,
operates oil and gas wells, organizes joint drilling ventures with
partners, and rebuilds and sells oil field equipment.
NATURADE INC: Files for Reorganization Under Chapter 11
-------------------------------------------------------
Naturade, Inc., filed for reorganization under Chapter 11 of the
Bankruptcy Code on Aug. 31, 2006. The Troubled Company Reporter
published a case summary of Naturade's bankruptcy filing and a
list of its 20 largest unsecured creditors on Sept. 4, 2006.
Naturade anticipates submitting a Plan of Reorganization next
week. Laurus Master Fund has agreed to continue their revolving
line of credit during Chapter 11. Naturade, Inc., is majority
owned by Redux Holdings, Inc.
"Naturade will file their Plan of Reorganization next week to
effect an expedited emergence from Chapter 11 within 90 to 120
days," according to Naturade's new CEO Richard Munro, who took
over as CEO of the Company concurrent with Redux Holding's
acquisition of a majority control of Naturade last month. Mr.
Munro is an experienced reorganization specialist, who will run
Naturade during the reorganization process, and will be
responsible for overseeing the implementation of its
reorganization plan.
"Chapter 11 provides to Naturade a vehicle for resolving its
problems brought on by an under-financed and aggressive
acquisition program," stated Mr. Munro. "We believe that we have
made this difficult but necessary decision to help ensure that
Naturade will have the financial strength to grow and prosper."
Mr. Munro added that, "Naturade has a solid management team,
strong sales, great products, and loyal customers. Naturade
already has funding in place to continue its normal business
operations during the reorganization, with absolutely no
disruption to marketing, product development, and manufacturing.
We will continue our plans to launch innovative new products in
early 2007 and continue to build our highly valued retailer
relationships."
About Naturade
Headquartered in Brea, California, Naturade Inc. (OTC BB:NRDCE.OB)
-- http://www.naturade.com/-- distributes nutraceutical
supplements. The Company filed for chapter 11 protection on
Aug. 31, 2006 (Bankr. C.D. Calif. Case No. 06-11493). Richard H.
Golubow, Esq., Robert E. Opera, Esq. and Sean A. O'Keefe, Esq., at
Winthrop Couchot P.C., in Newport Beach, California, represent the
Debtor. When the Debtor filed for protection from its creditors,
it listed assets of $10,255,402 and debts of $18,427,161.
OWENS CORNING: Court Consents to G-I Holdings Compromise
--------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware allowed
Owens Corning and its debtor-affiliates to enter into an agreement
with G-I Holdings, Inc., and its affiliates resolving asbestos
related-claims.
G-I Holdings and its affiliates filed Chapter 11 petitions with
the U.S. Bankruptcy Court for the District of New Jersey in
January 2001.
G-I Holdings filed 36 claims against the Debtors, of which only
four remain:
* Claim Nos. 8149 and 8996 against Owens Corning; and
* Claim Nos. 8940 and 8152 against Fibreboard Corporation.
Owens Corning has not filed claims against G-I Holdings, but has
made known its potential unliquidated, unsecured claims against
G-I Holdings for, among others, contribution and indemnification
arising out of asbestos property damage and personal injury
liability and potential derivative asbestos claims.
The Settlement resolves the parties' claims against each other
without the substantial cost of continued litigation.
Pursuant to the Settlement, G-I Holdings' remaining claims are
disallowed and expunged in their entirety, with prejudice. Any
asbestos-related prepetition claims that were or could have been
filed by the Debtors against G-I Holdings will also be disallowed
with prejudice.
The parties agree to mutually release each other from any
asbestos-related prepetition claims that they have filed or may
have against each other in their Chapter 11 cases.
Owens Corning (OTC: OWENQ.OB) -- http://www.owenscorning.com/--
manufactures fiberglass insulation, roofing materials, vinyl
windows and siding, patio doors, rain gutters and downspouts.
Headquartered in Toledo, Ohio, the Company filed for chapter 11
protection on Oct. 5, 2000 (Bankr. Del. Case. No. 00-03837).
Norman L. Pernick, Esq., at Saul Ewing LLP, represents the
Debtors. Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered,
represents the Official Committee of Asbestos Creditors. James J.
McMonagle serves as the Legal Representative for Future Claimants
and is represented by Edmund M. Emrich, Esq., at Kaye Scholer LLP.
(Owens Corning Bankruptcy News, Issue No. 139; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000)
OWENS CORNING: Court Approves Blue Ridge Settlement Agreement
-------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware approves
the settlement agreement between Owens Corning, its debtor
affiliates and Blue Ridge Investments, LLC.
Norman L. Pernick, Esq., at Saul Ewing LLP, in Wilmington,
Delaware, relates that on December 29, 1997, Owens Corning and
Blue Ridge, entered into a Share Purchase Agreement pursuant to
which Blue Ridge purchased from Owens Corning:
-- 2,000 shares of preferred stock of Faloc, Inc., now known
as Integrex, for $40,000,000; and
-- 14 shares of common stock of Integrex for $100,000.
Under the Share Purchase Agreement, Blue Ridge had the right,
from December 31, 1999, through and including December 31, 2002,
to require Owens Corning to repurchase or cause to be repurchased
the Shares. If the Put Option was exercised for all of the
Shares, Owens Corning would be obligated to pay an amount equal
to the sum of the purchase price for the Shares, plus the dollar
amount of accrued dividends that had not been paid with respect
to the Shares.
To exercise the Put Option, Blue Ridge was required to give Owens
Corning seven days' notice specifying the put date, the Shares
being put, the applicable put price and the account to which the
put price was being paid.
Blue Ridge says it provided that notice by written communications
to Owens Corning dated September 18, 2000. Owens Corning
disputes the contention.
The Share Purchase Agreement also provided that the Put Option
would be deemed exercised, without notice or other demand, upon
the commencement of a voluntary bankruptcy case by Owens Corning,
Integrex or any other significant subsidiary of Owens Corning as
an Event of Put Acceleration.
On April 15, 2002, Blue Ridge filed Claim No. 7964 for
$40,100,000, plus interest, fees and other costs and expenses,
for Owens Corning's alleged breach of the Put Option, as later
supplemented and amended.
Blue Ridge and Owens Corning engaged in various discussions with
respect to the issues raised. Subsequently, Owens Corning and
Blue Ridge reached a compromise and settlement.
The terms of the parties' Settlement Agreement are:
a. Blue Ridge will be deemed to hold an allowed OCD General
Unsecured Claim for $25,000,000, which will be classified
in Class A6-A, provided that Blue Ridge will receive a
distribution under the Plan -- except with respect to the
Subscription Documents and Rights Offering -- based on a
reduced deemed allowed OCD General Unsecured Claim in Class
A6-A for $20,000,000. Solely for the purpose of the
distribution calculation, Blue Ridge will be deemed to have
waived $5,000,000 of its agreed allowed OCD General
Unsecured Claim in Class A6-A.
b. In accordance with, and subject to the terms of the
Debtors' Sixth Amended Plan of Reorganization and the
Subscription Documents, Blue Ridge will be offered the
right to subscribe to purchase up to its pro rata share of
72,900,000 shares of the New OCD Common Stock at a purchase
price of $30 per share.
c. Blue Ridge will disgorge the New OCD Common Stock purchased
pursuant to the Rights Offering and Owens Corning will
contemporaneously return to Blue Ridge an amount equal to
the purchase price of the New OCD Common Stock so purchased
and disgorged -- at the parties' request -- if the Court
does not approve the Settlement Agreement. Until a final,
binding and non-appealable order approving the Settlement
Agreement is obtained, Blue Ridge may not dispose of the
New OCD Common Stock without Owens Corning's prior consent.
d. The Settlement is in full, final and complete satisfaction
of all rights and claims of Blue Ridge against the Debtors
existing as of the date of the entry of the order approving
the Settlement Agreement.
e. Blue Ridge will file an amended claim for $25,000,000 that
will supercede and replace Claim No. 7964.
f. Upon the Effective Date of the Sixth Amended Plan, the
Debtors will file the requisite documents necessary to
dismiss with prejudice two adversary proceedings against
Bank of America Corporation currently pending before the
Court -- Adversary Proceeding Nos. 02-05819 and 02-05820.
g. Blue Ridge will support confirmation of the Sixth Amended
Plan.
Owens Corning (OTC: OWENQ.OB) -- http://www.owenscorning.com/--
manufactures fiberglass insulation, roofing materials, vinyl
windows and siding, patio doors, rain gutters and downspouts.
Headquartered in Toledo, Ohio, the Company filed for chapter 11
protection on Oct. 5, 2000 (Bankr. Del. Case. No. 00-03837).
Norman L. Pernick, Esq., at Saul Ewing LLP, represents the
Debtors. Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered,
represents the Official Committee of Asbestos Creditors. James J.
McMonagle serves as the Legal Representative for Future Claimants
and is represented by Edmund M. Emrich, Esq., at Kaye Scholer LLP.
(Owens Corning Bankruptcy News, Issue No. 139; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000)
PARMALAT: BofA, et al., Balk at Planned Permanent Injunction Order
------------------------------------------------------------------
Five creditors and parties-in-interest filed with the U.S.
Bankruptcy Court for the Southern District of New York their
objections to Dr. Enrico Bondi's request for a permanent
injunction order in Parmalat's ancillary proceedings.
Dr. Bondi is the authorized foreign representative of Parmalat
Finanziaria S.p.A. and certain of its affiliates.
In his request, Dr. Bondi filed with the Court a proposed
permanent injunction order pursuant to Section 304 of the
Bankruptcy Code. Dr. Bondi also submitted with the Court a
memorandum of law supporting his permanent injunction request.
A full-text copy of the proposed Permanent Injunction Order is
available for free at http://researcharchives.com/t/s?e22
Creditors BankBoston, N.A., FleetBoston Financial, Bank of America
Corporation, Bank of America National Trust & Savings
Association, Banc of America Securities, LLC, and Bank of
America, N.A., tell the Court that the proposed Permanent
Injunction Order cannot be approved because it would constitute
an inappropriate anti-foreign suit injunction.
For BofA, et al., Thomas McC. Souther, Esq., at Sidley Austin LLP,
in New York argues that the Foreign Debtors' request for extra-
territorial application of the Permanent Injunction would unduly
limit the ability of domestic and foreign creditors to pursue all
appropriate remedies outside of the United States in accordance
with applicable foreign law.
Mr. Souther points out that the Foreign Debtors have made no
showing -- nor can they -- that the equity interests in their
largely insolvent subsidiaries are entitled to protection under
Section 304(b)(1) of the Bankruptcy Code.
The Pension Benefit Guaranty Corporation, which provides
termination insurance for all of the Debtors' Pension Plans, says
the proposed Permanent Injunction Order contains illegal
discharges, releases, exculpations and injunctions.
The PBGC is willing to withdraw its objections if the proposed
Permanent Injunction Order clarifies that:
-- no provisions of or proceeding within the Foreign Debtors'
reorganization cases in Italy and the Section 304 cases
before the U.S. Bankruptcy Court will in any way be
construed as discharging, releasing, limiting or relieving
the Foreign Debtors, or any other party from any liability
with respect to the Pension Plans or any other defined
benefit pension plan; and
-- the PBGC and the Pension Plans will not be enjoined or
precluded from enforcing liability resulting from any of
the provisions of the Foreign Debtors' restructuring plan
approved by the Italian court, or the entry of a Permanent
Injunction Order.
Grant Thornton International does not want the Permanent
Injunction to apply to it in any manner in the conduct of:
-- a securities fraud class action pending before the U.S.
District Court for the Southern District of New York;
-- three actions initiated by Dr. Bondi against banks and
accounting firms; and
-- actions commenced by the trustees of the U.S. Debtors and
two liquidators of Parmalat SpA's Cayman Islands
affiliates.
Grant Thornton is a defendant in those actions.
On behalf of Israel Discount Bank of New York, Bruce S. Nathan,
Esq., at Lowenstein Sandler PC, in New York, argues that in
seeking entry of a permanent injunction order, the Foreign
Debtors must demonstrate that claimholders in the Italian
proceedings are receiving "just treatment" and not experiencing
"prejudice and inconvenience" in the claims administration
process. The Foreign Debtors cannot meet this burden as to IDB,
Mr. Nathan says.
IDB's claims arise from promissory notes totaling $6,000,000 in
principal plus interest, guaranteed by Parmalat S.p.A.
Hermes Focus Asset Management Europe, Ltd.; Cattolica
Partecipazioni, S.p.A.; Capital & Finance Asset Management S.A.;
Societe Monderne des Terrassements Parisiens; and Solarat -- the
lead plaintiffs in a securities class action -- want the proposed
Permanent Injunction Order modified to clarify that it does not
impact their rights to pursue claims against Reorganized
Parmalat.
In July 2006, the District Court granted the Hermes Focus, et al.
leave to file an amended complaint against Reorganized Parmalat.
The U.S. Bankruptcy Court will convene a hearing on Sept. 12,
2006, at 10:00 a.m., to consider entry of the Permanent
Injunction.
Headquartered in Wallington, New Jersey, Parmalat USA Corporation
-- http://www.parmalatusa.com/-- generates more than 7 billion
euros in annual revenue. The Parmalat Group's 40-some brand
product line includes milk, yogurt, cheese, butter, cakes and
cookies, breads, pizza, snack foods and vegetable sauces, soups
and juices and employs over 36,000 workers in 139 plants located
in 31 countries on six continents. The Company filed for chapter
11 protection on February 24, 2004 (Bankr. S.D.N.Y. Case No.
04-11139). Gary Holtzer, Esq., and Marcia L. Goldstein, Esq., at
Weil Gotshal & Manges LLP, represent the Debtors. When the U.S.
Debtors filed for bankruptcy protection, they reported more than
$200 million in assets and debts. The U.S. Debtors emerged from
bankruptcy on April 13, 2005. (Parmalat Bankruptcy News, Issue
No. 76; Bankruptcy Creditors' Service, Inc., 215/945-7000,
http://bankrupt.com/newsstand/)
PARMALAT USA: Finanziara S.p.A., et al., Seek Stay Pending Appeal
-----------------------------------------------------------------
Parmalat Finanziara S.p.A. and affiliated entities, and the
reorganized company formed in the Foreign Debtors' Italian
insolvency proceedings ask Judge Lewis A. Kaplan of the U.S.
District Court for the Southern District of New York for an order
granting injunctive relief or a stay.
The Foreign Debtors want any proceedings concerning Reorganized
Parmalat in the securities litigation suspended pending
determination of an appeal from a District Court order permitting
the filing of a Third Amended Complaint.
In July 2006, the District Court permitted the investor plaintiffs
to file the Third Amended Complaint naming Reorganized Parmalat as
a defendant. The Foreign Debtors and Reorganized Parmalat have
taken an appeal to the U.S. Court of Appeals for the Second
Circuit from the July 2006 Order insofar as it (i) modified or
dissolved the prior injunctive relief that had been granted
pursuant to Section 304 of the Bankruptcy Code, or (ii) denied the
Section 304 relief.
Citing In re Sonnax Industries, Inc., 907 F.2d 1280, 1283 (2d
Cir. 1990), Howard B. Comet, Esq., at Weil, Gotshal & Manges LLP,
in New York, asserts that the rule is well-settled in bankruptcy
cases that immediate appeals may be taken of orders that finally
dispose of discrete disputes within the larger case.
Mr. Comet contends that the July 2006 Order may be immediately
appealed because it finally resolves the dispute as to whether
the Foreign Debtors and Reorganized Parmalat are entitled to
Section 304 relief regarding the investors' claims in the
Securities Litigation.
The Foreign Debtors and Reorganized Parmalat believe that a
District Court order dissolving or denying Section 304 injunctive
relief has the same finality as an order lifting the automatic
stay. Since courts have considered an order lifting stay to be
final and appealable, Mr. Comet says that the July 2006 Order may
be appealed.
Pending the determination of the appeal, Mr. Comet asserts that
the District Court may enjoin or stay the proceedings against
Reorganized Parmalat pursuant to Rule 62 of the Federal Rules of
Civil Procedures. Mr. Comet argues that:
a. if the Section 304 relief previously granted is not
restored pending appeal, the Foreign Debtors and
Reorganized Parmalat will incur the very harm that the
statute is designed to prevent -- they will be subjected
to massive U.S. litigation on claims that belong in the
Italian bankruptcy court;
b. the only harm the investors will incur if the appeal is
unsuccessful is that they will have been temporarily
delayed in the prosecution of claims, which delay provides
no basis for denying the relief pending appeal;
c. the appeal is likely to be successful; and
d. public interest weighs heavily in favor of a stay pending
appeal.
Credit Suisse Wants 3rd Amended Suit Dismissed
Since filing their first amended consolidated complaint, the
investors have taken 20 months to specify which Credit Suisse
entities they seek to sue despite this deficiency having been
brought to their attention, Michael S. Feldberg, Esq., at Allen &
Overly LLP, in New York, tells the Court.
In the Third Amended Complaint, the investors alleged, among
others, that Credit Suisse, Credit Suisse International, and
Credit Suisse Securities (Europe), Limited, structured and
participated in a transaction to provide financing to the
Brazilian subsidiary of Parmalat, knowing that Parmalat would use
it to conceal debt on its financial statements.
According to Mr. Feldberg, Credit Suisse stands on a different
footing with Credit Suisse International and Credit Suisse
Securities.
Mr. Feldberg contends that the Third Amended Complaint is devoid
of any facts that detail with specificity Credit Suisse's role in
the challenged transaction. Credit Suisse believes that the
Complaint fails adequately to plead a primary violation of the
securities laws under the particularity requirements of Rule 9(b)
of the Federal Rules of Civil Procedure.
There is no allegation in the Third Amended Complaint that Credit
Suisse committed a deceptive or manipulative act, Mr. Feldberg
points out. Instead, he continues, investors meld Credit Suisse
into the umbrella term "Credit Suisse Entities" without detailing
the nature of its participation in the alleged fraudulent scheme.
Credit Suisse also believes that the investors' references to it
as the corporate parent of Credit Suisse International and Credit
Suisse Securities do not advance their position. Mere allegation
of a status as a corporate parent of alleged wrongdoers does not
suffice, Mr. Feldberg says.
Mr. Feldberg also notes that the investors did not allege that
Credit Suisse acted scienter with particularity, as required by
the Reform Act and Second Circuit decisional law. To plead
scienter, the plaintiff must allege a purpose to harm by
intentionally deceiving, manipulating or defrauding, Mr. Feldberg
explains, citing Ernst & Ernst v. Hochfelder, 425 U.S. 185, 193,
96 S. Ct. 1375, 1381 (1976).
The Third Amended Complaint adds a new claim for controlling
person liability against Credit Suisse. However, Credit Suisse
says the claim is deficient.
Mr. Feldberg argues that the Third Amended Complaint's
allegations of control "do not show that Credit Suisse had actual
control over the transaction at issue."
"No amendment could cure the deficiencies identified in the third
amended complaint," Mr. Feldberg insists. "Credit Suisse simply
had no involvement in the Parmalat matters at issue . . . and
there are no facts that could support the legal conclusion of
[it's participation] in the alleged fraudulent scheme or actively
controlled the . . . entities which are alleged to have
participated."
Credit Suisse asks the District Court to dismiss the Third
Amended Complaint as against it and reject all claims against it,
with prejudice.
Grant Thornton LLP also asks the District Court to dismiss the
Third Amended Complaint. It filed a memorandum of law supporting
its dismissal motion under seal.
BofA Wants Liquidators' Suit Dismissed
The lawsuit initiated by Gordon I. MacRae and James Cleaver, as
the Joint Official Liquidators of Parmalat Capital Finance
Limited, against various Bank of America entities was transferred
to the U.S. District Court for the Southern District of New York
and consolidated with other suits before Judge Kaplan.
BofA asks Judge Kaplan to dismiss the Liquidators' complaint and
reject the Liquidators' claims, with prejudice.
The Liquidators' real complaint is with Parmalat Capital's
corrupt corporate parent, not BofA, Daniel A. McLaughlin, Esq.,
at Sidley Austin LLP, in New York, asserts. Because of the
preliminary injunction granted under Section 304, however, the
Liquidators cannot sue Parmalat SpA in the U.S.
BofA alleges that the Liquidators concocted claims that are
nothing more than a transparent attempt to find a solvent entity
to pay for Parmalat's wrongdoing -- notwithstanding that BofA
happens to be a victim itself.
The Liquidators' Complaint should be dismissed because the
Liquidators lack standing to bring the suit, Mr. McLaughlin
argues. The Complaint, he notes, does not allege that Parmalat
Capital had any operations of its own, or any value as an ongoing
business. Parmalat Capital was not an operating entity, rather
it was a financing entity.
Hence, BofA contends, any harm caused by Parmalat's actions was
not suffered by Parmalat Capital. In fact, Mr. McLaughlin points
out, the Liquidators admit that they are claiming losses
allegedly suffered by Parmalat Capital's creditors.
BofA also believes that the Liquidators are barred from bringing
claims under the doctrine of in pari delicto, which forecloses
recovery by a claimant that was a participant in the complained-
of wrong.
Because the Complaint makes clear that Parmalat Capital was a
financing entity created as an instrumentality of Parmalat's
wrongdoing, Mr. McLaughlin asserts that in pari delicto bars the
Liquidators' claims.
The Complaint fails to allege the essential elements of each
cause of action asserted, necessitating dismissal of each claim,
Mr. McLaughlin adds.
Distilled to its essence, BofA asserts that the Complaint is an
attempt to hold the bank liable for Parmalat's use of its wholly
owned subsidiary as an instrumentality to perpetuate its fraud.
Liquidators Want Dismissal Motion Denied
Messrs. MacRae and Cleaver insist that BofA helped certain
Parmalat Capital and Parmalat SpA insiders steal from Parmalat
Capital for over a number of years.
Contrary to BofA's arguments, the Liquidators assert that they
have standing to bring the suit.
"[BofA's] argument ignores the reality of [Parmalat Capital's]
corporate existence," Richard I. Janvey, Esq., at Janvey Gordon
Herlands Randolph & Cox LLP, notes. "Moreover, 'financing
entities' routinely bring claims to recover damages they have
suffered."
According to Mr. Janvey, BofA's in pari delicto argument seeks to
pervert an equitable doctrine to achieve the inequitable result
of letting a wrongdoer go free at the expense of Parmalat
Capital's creditors.
Parmalat Capital, Mr. Janvey points out, is under the control of
the Liquidators appointed by the Cayman Court seeking recovery
for the benefit of its creditors, not the original bad actors.
Moreover, Parmalat Capital's culpable insiders acted completely
adverse to Parmalat Capital's interests, and thus the wrongful
knowledge of those insiders cannot be imputed to it.
Accordingly, the Liquidators ask the Court to reject BofA's
arguments and deny the dismissal request.
BofA Talks Back
BofA insists that Parmalat Capital's Liquidators lack standing to
bring the claims in the Complaint.
Citing Wight v. BankAmerica Corp., 219 F.3d 79, 86 (2d Cir.
2000), Mr. McLaughlin contends that a plaintiff cannot assert the
interests or rights of third parties.
BofA also maintains that the in pari delicto doctrine applies to
Parmalat Capital and the Liquidators.
Mr. McLaughlin further points out that In re Parmalat Sec.
Litig., 383 F. Supp. 2d 587, 594 (S.D.N.Y. 2005), the District
Court rejected a similar argument raised by Parmalat Capital that
its role in Parmalat SpA's fraud is irrelevant because its
corrupt management resigned in favor of the Liquidators.
As Parmalat Capital admitted in the Complaint, Parmalat was its
ultimate operating parent, Parmalat engaged in a massive fraud,
and Parmalat Capital was an "instrumentality" used to carry out
that fraud, Mr. McLaughlin notes.
Headquartered in Wallington, New Jersey, Parmalat USA Corporation
-- http://www.parmalatusa.com/-- generates more than 7 billion
euros in annual revenue. The Parmalat Group's 40-some brand
product line includes milk, yogurt, cheese, butter, cakes and
cookies, breads, pizza, snack foods and vegetable sauces, soups
and juices and employs over 36,000 workers in 139 plants located
in 31 countries on six continents. The Company filed for chapter
11 protection on February 24, 2004 (Bankr. S.D.N.Y. Case No.
04-11139). Gary Holtzer, Esq., and Marcia L. Goldstein, Esq., at
Weil Gotshal & Manges LLP, represent the Debtors. When the U.S.
Debtors filed for bankruptcy protection, they reported more than
$200 million in assets and debts. The U.S. Debtors emerged from
bankruptcy on April 13, 2005. (Parmalat Bankruptcy News, Issue
No. 76; Bankruptcy Creditors' Service, Inc., 215/945-7000,
http://bankrupt.com/newsstand/)
PELTS & SKINS: Court Okays Huval's Retention as Special Counsel
---------------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of Louisiana
authorized Pelts & Skins, LLC, to employ Huval, Veazey, Felder &
Aertker, LLC, as its special counsel.
Huval Veazey will litigate any and all of the Debtor's claims to
recover money or property of the estate from the Debtor's former
chief executive officer, Zack Casey or proofs of claim filed by
Mr. Casey.
The Debtor selected Huval Veazey because of the firm's experience
and expertise in general civil litigation and commercial
litigation.
Thomas H. Huval, Esq., a partner at Huval, Veazey, Felder &
Aertker, LLC, discloses that the Firm's professional bill:
Attorneys Designation Hourly Rate
--------- ----------- -----------
Thomas H. Huval, Esq. Partner $225
Stephen Aertker, Esq. Partner $225
Brad Felder, Esq. Partner $225
Professionals Hourly Rate
------------- -----------
Attorneys $225
Associates up to $140
Paralegals up to $75
Mr. Huval assures the Court that the Firm does not hold any
interest adverse to the Debtors, its creditors, or the estate and
is a "disinterested person" as that term is defined in Section
101(14) of the Bankruptcy Code.
Headquartered in Covington, Louisiana, Pelts & Skins, L.L.C. --
http://www.pelts.com/-- produces, processes, and sells alligator
skins to tanneries. The Company filed its chapter 11 petition on
Aug. 1, 2006 (Bankr. E.D. La. Case No. 06-10742). Douglas S.
Draper, Esq., at Heller, Draper, Hayden, Patrick & Horn, L.L.C.,
represents the Debtor. Pelts & Skins estimated its assets and
debts at $10 million to $50 million when it filed for protection
from its creditors.
PINNACLE AIRLINES: Earns $19.5 Mil. in Second Qtr. Ended June 30
----------------------------------------------------------------
Pinnacle Airlines Corp. reported second quarter 2006 earnings.
Operating income and net income were $19.5 million and
$11.9 million, respectively. Operating income and net income were
$41 million and $25.2 million, respectively.
Operating income during the second quarter was negatively affected
by a one-time, non-cash charge of $1.4 million related to the
previously unrecorded obligation for Pilot post-retirement health
care benefits. Pinnacle provides a benefit for its Pilots, which
enables them to continue coverage under the Company's health care
plan after reaching the mandatory retirement age of 60 and prior
to their eligibility for Medicare coverage. The amounts were not
material for any prior period. In addition, Pinnacle recorded a
pre-tax charge of $1.4 million during the second quarter related
to a change in estimate in its provision for sublease losses
associated with the return of eleven Saab 340 aircraft from Mesaba
Aviation, Inc.
During the first quarter of 2005, the Company recorded a pre-tax
gain of $18.0 million ($11.3 million net of related income taxes)
associated with the repurchase of its note payable to Northwest
Airlines.
For the three months ended June 30, 2006, Pinnacle recorded
operating revenue of $204.5 million, a decrease of $8.4 million,
or 4%, over the same period in 2005. Pinnacle completed 103,471
block hours and 63,053 cycles, decreases of 6% and 2%,
respectively, over the same periods in 2005. The decrease in
revenue, block hours and cycles was attributable to the decrease
in fleet size after Northwest removed 15 aircraft from its CRJ
fleet in November 2005. During the second quarter 2005, Pinnacle
accepted deliveries of 14 aircraft and had an average fleet size
of 131 aircraft, as opposed to the second quarter 2006 in which it
maintained a fleet size of 124 throughout the quarter.
For the six months ended June 30, 2006, Pinnacle recorded
operating revenue of $411.6 million, an increase of $4 million, or
1%, over the same period in 2005. For the six months ended June
30, 2006, Pinnacle completed 206,068 block hours and 124,318
cycles, a decrease of 2% and an increase of 3%, respectively, over
the same periods in 2005. While block hours decreased due to the
decrease in fleet size, cycles increased due to a decrease in the
average length of Pinnacle's flights.
Pinnacle's operating margin for the three months ended June 30,
2006 was 9.5%. Excluding the aforementioned charges related to
the pilot post-retirement liability and the bankruptcies of
Northwest and Mesaba, Pinnacle's margin for the quarter was 10.9%,
as compared to an operating margin of 10.7% for the three months
ended June 30, 2005. This margin increase was primarily
attributable to annual rate increases under the Company's airline
services agreement with Northwest that was greater than Pinnacle's
year-over-year unit cost increase. In addition, there was a
reduction in costs related to services provided by outside
vendors.
Pinnacle repaid in full the $17.0 million drawn under its
revolving credit facility upon its expiration in June 2006.
Pinnacle ended the quarter with cash and short-term investments
totaling $78.2 million. Management believes that the Company's
current liquidity is adequate, and the Company does not have
immediate plans to seek a replacement credit facility.
A time frame for discussions to resolve the status of Pinnacle's
contractual relationship with Northwest has still not been set,
although Northwest has indicated that they expect such discussions
will begin soon. Pinnacle also continues to negotiate with the
Airline Pilots Association to amend the collective bargaining
agreement between the Company and ALPA, and believes that
successful conclusion of this negotiation is necessary to complete
discussions with Northwest.
"I want to thank our People for another successful quarter," said
Phil Trenary, Pinnacle's president and chief executive officer.
"We have continued to exceed our already high standards, and our
strong operating performance will help us retain Northwest
Airlines as a Customer. Satisfactory conclusion of discussions
with both Northwest and the negotiating committee representing our
Pilots remains our top priority."
Going Concern Doubt
As reported in the Troubled Company Reporter on March 9, 2006,
Ernst & Young LLP expressed substantial doubt about Pinnacle
Airlines' ability to continue as a going concern after reviewing
the Company's financial statements for the years ended Dec. 31,
2005, and 2004. Ernst & Young pointed to uncertainty regarding
the future of Pinnacle's contract with its primary customer,
Northwest Airlines, due to its filing of chapter 11 protection in
September 2005.
About Pinnacle Airlines
Headquartered in Memphis, Tennessee, Pinnacle Airlines, Corp.
(NASDAQ: PNCL) fka Express Airlines I operates through its wholly
owned subsidiary, Pinnacle Airlines, Inc., as a regional airline
that provides airline capacity to Northwest Airlines, Inc.
Pinnacle operates as a Northwest Airlink carrier at Northwest's
domestic hub airports in Detroit, Minneapolis/St. Paul and Memphis
and the focus city of Indianapolis. Pinnacle currently operates
an all-jet fleet of 124 Canadair Regional Jets and offers
scheduled passenger service with 709 daily departures to 110
cities in 36 states and three Canadian provinces. Pinnacle
Airlines employs approximately 3,450 People.
PINNACLE ENTERTAINMENT: Buying Sands & Traymore Sites for $270MM
----------------------------------------------------------------
Pinnacle Entertainment, Inc., and Atlantic Coast Entertainment
Holdings, Inc., have signed a definitive agreement under which
Pinnacle agreed to purchase the entities that own The Sands and
Traymore sites in Atlantic City, N.J. from entities affiliated
with financier Carl Icahn for approximately $250 million, plus an
additional $20 million for certain tax-related benefits and
additional real estate.
Together, the land being acquired comprises approximately 18
contiguous acres at the heart of Atlantic City, with extensive
frontage along the Boardwalk, Pacific Avenue and Brighton Park.
Pinnacle plans to design and build an entirely new casino hotel on
the site, which would be among the largest and most spectacular
resorts in the region.
As part of the agreement, Pinnacle required that the sellers
proceed to close the existing hotel-casino, which is anticipated
to occur within approximately 70 days of the signing of the
agreement. The closure will facilitate the construction of a new,
much larger facility as quickly as possible. The 26-year-old
Sands, which was one of the first gaming resorts to open in
Atlantic City, is one of the city's smallest properties.
"Atlantic City is one of the top U.S. gaming destinations, and
we're looking forward to being a part of the world-famous
Boardwalk," said Daniel R. Lee, Pinnacle's Chairman and Chief
Executive Officer. "This major new resort will be a key component
in our plan to build a national network of gaming properties. It
will also help extend our development pipeline and our Company's
growth through 2010 and beyond. In connection with our
longstanding interest in Atlantic City, we submitted our initial
license application in New Jersey several months ago. The
regulatory investigation is ongoing.
"The success of recent Atlantic City developments has proven that
customers in the Northeast respond positively to state-of-the-art
gaming resort design and amenities," Mr. Lee continued. "While we
regret the necessity of closing the Sands to create an exciting
new resort, we look forward to working with gaming regulators,
state and local authorities on this project to create more jobs,
tax revenues and other lasting benefits for the region."
Under Federal law, employees soon will receive 60 days' notice of
the expected closing. Among its provisions for employees, the
agreement provides for severance benefits in accordance with union
agreements, as well as severance pay for nonunion employees who
stay through the 60-day closing period.
Mr. Icahn stated, "After spending many months reviewing various
projects for this property, it became patently clear that a
shutdown of The Sands was necessary and inevitable to make room
for a great new casino. We also concluded that this was the most
propitious time to undertake this shutdown given the robust
employment environment in Atlantic City. This new casino will be
a great plus for Atlantic City and the state of New Jersey."
Mr. Icahn has seen to it that ACE Hi, the parent company of The
Sands, although not legally required, will fund an additional one
week of severance for eligible employees for each year of service
over two years. In addition, through his negotiations with
Pinnacle, Pinnacle has agreed that full-time employees who have
been with The Sands for at least six months will be eligible for
two weeks' severance funded by Pinnacle. Pinnacle also has agreed
to provide outplacement services to all Sands employees, and those
willing to relocate will be considered for positions at other
properties operated by Pinnacle or Mr. Icahn.
The transaction is subject to the satisfaction of customary
closing conditions. The transaction is not subject to financing.
The majority stockholder of ACE Hi, AREP Sands Holding, LLC, which
owns approximately 58% of the outstanding stock of ACE Hi, has
delivered a stockholder written consent approving the sale of The
Sands. AREP Sands is a wholly-owned subsidiary of American Real
Estate Holdings Limited Partnership.
The acquisition agreement contains non-solicitation, fiduciary out
and termination fee provisions. ACE Hi is not permitted to
solicit other acquisition proposals, but for 45 days may negotiate
with anyone that submits unsolicited proposals if the ACE Hi board
believes that such a proposal is, or is reasonably likely to
result in, a proposal that is more favorable to the ACE Hi
stockholders. If within such 45-day period, the ACE Hi board
determines that an alternative proposal is more favorable to the
ACE Hi stockholders, ACE Hi is permitted to terminate the
acquisition agreement with Pinnacle upon payment of a $10 million
termination fee. In addition, entities affiliated with Mr. Icahn,
including AREH and AREP Sands, have agreed to pay to Pinnacle all
of any additional value received by such entities through an
overbid.
Pinnacle expects to close its purchase of The Sands/Traymore site
by the end of the year.
About Atlantic Coast Entertainment
Atlantic Coast Entertainment Holdings, Inc. is a Delaware
corporation formed in October 2003. ACE Gaming, LLC, a New Jersey
limited liability company and wholly-owned subsidiary of Atlantic
Holdings, is the owner and operator of The Sands Hotel and Casino
in Atlantic City, New Jersey.
About Pinnacle
Headquartered in Las Vegas, Nevada, Pinnacle Entertainment, Inc.
(NYSE: PNK) -- http://www.pnkinc.com/-- owns and operates casinos
in Nevada, Louisiana, Indiana and Argentina, owns a hotel in
Missouri, receives lease income from two card club casinos in the
Los Angeles metropolitan area, has been licensed to operate a
small casino in the Bahamas, and owns a casino site and has
significant insurance claims related to a hurricane-damaged casino
previously operated in Biloxi, Mississippi. Pinnacle opened a
major casino resort in Lake Charles, Louisiana in May 2005 and a
new replacement casino in Neuquen, Argentina in July 2005.
* * *
As reported in the Troubled Company Reporter on May 24, 2006,
Standard & Poor's Ratings Services revised its CreditWatch
implications on Las Vegas-based casino owner and operator Pinnacle
Entertainment Inc. to positive from negative.
As reported in the Troubled Company Reporter on March 20, 2006,
Moody's Investors Service placed the ratings of Pinnacle
Entertainment, Inc. on review for possible upgrade. Pinnacle
ratings affected include its B2 corporate family rating, B1 senior
secured bank loan rating, and Caa1 senior subordinated debt
rating.
As reported in the Troubled Company Reporter on Mar. 15, 2006,
Fitch Ratings has placed the ratings of Pinnacle Entertainment on
Rating Watch Negative. The ratings affected include 'B' issuer
default rating; 'BB/RR1' senior secured credit facility rating;
and 'CCC+/RR6' senior subordinated note rating.
PINNOAK RESOURCES: Weak Performance Prompts S&P's Negative Watch
----------------------------------------------------------------
Standard & Poor's Ratings Services placed its ratings, including
its 'B-' corporate credit rating, on Canonsburg, Pennsylvania-
based metallurgical coal producer PinnOak Resources LLC on
CreditWatch with negative implications.
"The action reflects the company's weak performance and liquidity
in the second quarter of 2006 because of lower customer demand and
difficult mining conditions," said Standard & Poor's credit
analyst Marie Shmaruk.
Due to high metallurgical coal prices, PinnOak's customers have
been substituting lower-cost, lower-quality coal, resulting in
lower sales volume for the company. The effect of this problem
has been magnified by difficult geologic conditions in the
company's longwall mining operation that has slowed production and
caused higher maintenance requirements. These problems led to a
28% decrease in revenues and a 66% drop in EBITDA during the
quarter ended June 30, 2006, from the prior quarter.
Standard & Poor's is concerned that the company's liquidity will
be inadequate if these problems persist. For the first half of
2006, cash from operations was around $25 million. However, this
amount includes $15 million in nonrecurring insurance proceeds.
Without this inflow and after $17 million in capital expenditures
and taking tax-related dividends to the owners into consideration,
we estimate that the company would have generated a cash deficit.
At June 30, 2006, PinnOak had approximately $34 million available
on its $50 million revolving credit facility maturing in November
2011. However, Standard & Poor's believes the amount available
has subsequently declined.
To resolve the CreditWatch listing, Standard & Poor's will review
the company's liquidity forecasts and evaluate its plans for
dealing with its operating challenges.
PLATFORM LEARNING: Court OKs Pact Resolving JPMorgan's $615K Claim
------------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
approved a stipulation between Platform Learning Inc. and JPMorgan
Chase Bank, N.A., resolving JPMorgan's claim.
In its schedules of assets and debts, the Debtor identified as
potential property of the estate, two certificates of deposit
collateralizing two separate irrevocable standby letters of credit
issued in October 2004 by JPMorgan Chase Bank N.A. to:
-- AXA Corporate Solutions Reinsurance, as security for the
Debtor's leasehold at 17 State Street in New York City, New
York and in the amount of $518,616; and
-- Dell Financial Services L.P., as security for leased
equipment and in the amount of $96,119.
The Letters of Credit were secured by deposit accounts in the form
of certificates of deposit, and those deposits were assigned and
pledged to JPMorgan Chase pursuant to an assignments of deposit
agreements also executed in October 2004.
After the Debtor's bankruptcy filing, both AXA and Dell, as the
beneficiaries of the Letters of Credit, presented draw requests
that were honored by JPMorgan Chase, with AXA making a draw in the
amount of $519,134 on July 20, 2006, and Dell drawing $96,619 on
July 25, 2006. The aggregate balance due to JPMorgan Chase as a
result of the draws on the Letters of Credit totaled $615,753.
As of Aug. 17, 2006, the Debtor's accounts with JPMorgan Chase,
inclusive of the certificates of deposit, contain an aggregate
balance of approximately $677,672.
The Debtor and JPMorgan Chase have agreed to a lifting of the
automatic stay for purposes of allowing JPMorgan Chase to apply
the proceeds of the certificates of deposit to reimburse the draws
of the Letters of Credit, but with the balance remaining,
approximately $62,000 as of Aug. 17, 2006, to be remitted to the
Debtor.
Accordingly, the parties agree that:
1. the automatic stay under Section 362 of the Bankruptcy Code
is lifted to allow JPMorgan Chase to liquidate the
certificates of deposit and apply the proceeds to the
reimbursement of the prior draws on the Letters of Credit
totaling $615,753;
2. the $62,000 remaining balance will be remitted to the
Debtor; and
3. upon JPMorgan Chase's liquidation of the certificates of
deposit and reimbursement of the sum of $615,753, it will
waive and release any claims it has or may have against the
Debtor or its estate.
Based in Broad Street, New York, Platform Learning Inc. --
http://www.platformlearning.com/-- provides supplemental
educational services through its Learn-to-Succeed tutoring
program to students attending public schools. The Company filed
for chapter 11 protection on June 21, 2006 (Bankr. S.D.N.Y. Case
No. 06-11391). David M. Bass, Esq., and Eric W. Sleeper, Esq., at
Herrick Feinstein LLP represent the Debtor in its restructuring
efforts. Edward Joseph LoBello, Esq., at Blank Rome LLP
represents the Official Committee of Unsecured Creditors. When
the Debtor filed for protection from its creditors, it listed
total assets of $21,026,148, and total debts of $36,933,490.
PLYMOUTH RUBBER: Emerges from Chapter 11 Protection
---------------------------------------------------
Plymouth Rubber Company, Inc., and its wholly-owned subsidiary,
Brite-Line Technologies, Inc., emerged from Chapter 11, supported
by an infusion of new equity from Chrysalis Capital Partners, LP,
a private equity firm, and a new senior credit facility provided
by Wells Fargo Business Credit. The companies' Plan of
Reorganization, which became effective Aug. 31, 2006, was approved
by the U.S. Bankruptcy Court on July 26, 2006.
The businesses will continue to operate under the Plymouth and
Brite-Line names, and the current management team -- led by
Maurice J. Hamilburg, President and CEO -- will run the companies.
"This is an important and exciting day for all of us, as it marks
our emergence from the bankruptcy process, and a new beginning,"
said Mr. Hamilburg. "Chrysalis's financial support will enable us
to focus once again on delivering outstanding products and service
to our customers."
This transaction is a solid fit with our investment rationale,"
said Greg Segall, Managing Partner of Chrysalis. "We quickly
recognized the strong underlying business at Plymouth Rubber and
Brite-Line, as well as the opportunity in partnering with its
management team to take the company out of bankruptcy and pursue
operational improvement. We look forward to working with
management as they continue to execute on their business plan."
Plymouth has already relocated its US vinyl tape manufacturing
operations to its joint venture in China, and plans to shift its
US rubber tape manufacturing to a lower cost site in 2007.
Manufacture of vinyl tapes at Plymouth's European operations and
of reflective tapes at Brite-Line's plant in Denver will continue.
Plymouth and Brite-Line both filed for Chapter 11 protection in
July 2005, due to the inability of their secured lenders and the
Pension Benefit Guaranty Corporation to reach agreement regarding
the priorities of their respective liens. This uncertainty has
been eliminated by the bankruptcy settlement, under which
Plymouth's Pension Plan has been terminated and its liabilities
assumed by the PBGC.
About Plymouth Rubber
Headquartered in Canton, Massachusetts, Plymouth Rubber Company,
Inc., manufactures and distributes plastic and rubber products,
including automotive tapes, insulating tapes, and other industrial
tapes, mastics and films. Through its Brite-Line Technologies
subsidiary, Plymouth manufactures and supplies highway marking
products. The Company and its subsidiary filed for chapter 11
protection on July 5, 2005 (Bankr. D. Mass. Case Nos. 05-16088
through 05-16089). Victor Bass, Esq., at Burns & Levinson LLP,
represents the Debtors in their restructuring efforts. John J.
Monaghan, Esq., at Holland & Knight LLP, represents the Official
Committee of Unsecured Creditors. When the Debtors filed for
protection from their creditors, they estimated assets and debts
between $10 million to $50 million.
PORTRAIT CORP: Has Interim Access to Wells Fargo DIP Loan
---------------------------------------------------------
The Honorable Adlai S. Hardin, Jr., of the U.S. Bankruptcy Court
for the Southern District of New York gave Portrait Corporation of
America, Inc., and its debtor-affiliates, interim authority to
obtain debtor-in-possession financing from Wells Fargo Foothill,
Inc. Judge Hardin also allows the Debtors to use cash collateral
securing repayment of their obligations to Wells Fargo.
The interim DIP financing order grants the Debtors access to loans
of up to $10 million, inclusive of a letter of credit sub-facility
in the amount of $5 million. However, until certain conditions
embodied in the DIP term sheet are met, the Debtors will only be
able to borrow up to $3 million, inclusive of a $1 million letter
of credit sub-facility. The Debtors are seeking to borrow up to
$45 million from Wells Fargo.
Amounts outstanding under the DIP facility will bear interest, at
the Debtors' option, at a per annum rate equal to:
a) the Base Rate plus 3 percentage points; or
b) the LIBOR Rate plus 5 percentage points.
At no time shall any portion of the indebtedness owing under the
DIP Facility bear interest at a per annum rate less than 6%.
All obligations arising from the DIP facility will be secured by a
first priority perfected lien and security interest against the
Debtors' assets.
Cash Collateral Use
The Debtors owe Wells Fargo approximately $11 million on account
of loans made under a $30 million prepetition revolving line of
credit. The line of credit is secured by a first priority lien
and security interest on all of the Debtors' property and assets.
The Debtors also owe an aggregate of approximately $255 million
from holders of various notes issued by Debtors PCA LLC and PCA
Finance Corp. The Noteholders hold junior liens on all of the
Debtors' assets.
Judge Hardin permits the Debtors to use Wells Fargo and the
Noteholders' cash collateral until Sept. 30, 2006, subject to a
budget. A copy of the Budget is available for free at:
http://researcharchives.com/t/s?111f
Wells Fargo and the Noteholders are entitled, pursuant to sections
361 and 363 of the Bankruptcy Code, to adequate protection of
their interests in the collateral for any diminution in the value
resulting from the Debtors' use of their collateral.
About Portrait Corporation
Portrait Corporation of America, Inc. -- http://pcaintl.com/--
provides professional portrait photography products and services
in North America. The Company operates portrait studios within
Wal-Mart stores and Supercenters in the United States, Canada,
Mexico, Germany and the United Kingdom. The Company also operates
a modular traveling business providing portrait photography
services in additional retail locations and to church
congregations and other institutions.
Portrait Corporation and its debtor-affiliates filed for Chapter
11 protection on Aug. 31, 2006 (Bankr S.D. N.Y. Case No.
06-22541). John H. Bae, Esq., at Cadwalader Wickersham & Taft
LLP, represents the Debtors in their restructuring efforts.
Berenson & Company LLC serves as the Debtors' Financial Advisor
and Investment Banker. At June 30, 2006, the Debtor had total
assets of $153,205,000 and liabilities of $372,124,000.
Eisner LLP raised substantial doubt about Portrait Corporation of
America, Inc.'s ability to continue as a going concern after
auditing the Company's consolidated financial statements for the
year ended Jan. 29, 2006. The auditor pointed to the Company's
substantial net loss, negative working capital, stockholders'
deficiency, default of certain obligations, which were due on
June 15, 2006, and insufficient liquidity to meet those
obligations.
PRIDE BUSINESS: Posts $5.3 Mil. Net Loss in Second Quarter of 2006
------------------------------------------------------------------
Pride Business Development Holdings, Inc., filed its financial
statements for the second quarter ended June 30, 2006, with the
Securities and Exchange Commission on Aug. 23, 2006.
The Company reported a $5,302,021 net loss on $393,231 of sales
for the three months ended June 30, 2006, compared with a $439,324
net loss on $53,343 of sales for the same period in 2005.
At June 30, 2006, the Company's balance sheet showed $1,159,244 in
total assets and $3,512,394 in total liabilities, resulting in a
$2,353,150 stockholders' deficit. The Company had a $1,940,637
deficit at Dec. 31, 2005.
The Company's June 30 balance sheet showed strained liquidity with
$735,529 in total current assets available to pay $3,501,923 in
total current liabilities coming due within the next 12 months.
Full-text copies of the Company's second quarter financials are
available for free at http://ResearchArchives.com/t/s?111c
Going Concern Doubt
As reported in the Troubled Company Reporter on June 22, 2006,
Malone & Bailey, P.C., in Houston, Texas, raised substantial doubt
about Pride Business Development Holdings, Inc.'s ability to
continue as a going concern after auditing the Company's
consolidated financial statements for the year ended Dec. 31,
2005. The auditor pointed to the Company's recurring operating
net losses and working capital deficit.
About Pride Business Development Holdings
Based in Camarillo, California, Pride Business Development
Holdings, Inc. (OTC: PDVG.PK) -- http://www.pridegroup.org/-- is
a specialty and protective clothing and materials manufacturer for
the domestic and international law enforcement, military, and
dangerous materials handling markets with its brand of
Bodyguard(R) products. The Company's current focus is the
manufacture and sale of personal soft body armor (bullet-resistant
vests) and ballistic and projectile fragment covers such as
ballistic blankets and bomb blast blankets. The Company, through
its wholly owned subsidiary Bodyguard, Inc., is the holder of the
worldwide exclusive license to utilize the Smith & Wesson
trademarks on personal body armor (and related apparel) and
ballistic blankets.
RADNOR HOLDINGS: Taps Skadden Arps as Bankruptcy Counsel
--------------------------------------------------------
Radnor Holdings Corporation and its debtor-affiliates ask the U.S.
Bankruptcy Court for the District of Delaware for permission to
employ Skadden, Arps, Slate, Meagher & Flom LLP as their
bankruptcy counsel, nunc pro tunc to Aug. 21, 2006.
Skadden Arps will:
a. advise the Debtors with respect to their powers and duties
as debtors and debtors-in-possession in the continued
management and operation of their business and properties;
b. attend meetings and negotiate with representatives of
creditors and other parties-in-interest and advise and
consult on the conduct of the Debtors cases, including all
of the legal and administrative requirements of operating
in chapter 11;
c. take all necessary action to protect and preserve the
Debtors' estates, including the prosecution of actions on
behalf of the Debtors' estates, and the defense of any
actions commenced against the estates, negotiations
concerning litigation in which the Debtors may be involved
and objections to claims filed against the estates;
d. prepare, on behalf of the Debtors, motions, applications,
answers, orders, reports, applications, answers, orders,
reports and papers necessary to the administration of the
estates;
e. prepare and negotiate on the Debtors' behalf a plan of
reorganization, disclosure statement and all related
agreements or documents and take all necessary action on
behalf of the Debtors to obtain confirmation of the plan;
f. advise the Debtors in connection with any sale of assets;
g. perform other necessary legal services and provide other
necessary legal advice to the Debtors in connection with
their chapter 11 cases; and
h. appear before the Court, any appellate courts, and the U.S.
Trustee and protect the interests of the Debtors' estates
before these courts and the U.S. Trustee.
The Debtors tell the Court that the firm's professionals bill:
Professional Hourly Rate
------------ -----------
Partners & Of-Counsel $585 - $835
Associates & Counsel $295 - $640
Legal Assistants $90 - $230
Gregg M. Galardi, Esq., a partner at Skadden Arps, assures the
Court that his firm is disinterested as that term is defined in
Section 101(14) of the Bankruptcy Code.
Headquartered in Radnor, Pennsylvania, Radnor Holdings Corporation
-- http://www.radnorholdings.com/-- manufactures and distributes
a broad line of disposable food service products in the United
States, and specialty chemicals worldwide. The Debtor and its
affiliates filed for chapter 11 protection on Aug. 21, 2006
(Bankr. D. Del. Case No. 06-10894). Gregg M. Galardi, Esq., and
Mark L. Desgrosseilliers, Esq., at Skadden, Arps, Slate, Meagher,
represent the Debtors. When the Debtors filed for protection from
their creditors, they listed total assets of $361,454,000 and
total debts of $325,300,000.
RADNOR HOLDINGS: Proposes $700K Incentive Plan for Top Executives
-----------------------------------------------------------------
Radnor Holdings Corp. and its debtor-affiliates ask the U.S.
Bankruptcy Court for the District of Delaware for permission to
pay sale-related incentives to its top executives.
The Debtors are in the process of selling substantially all of
their assets and have secured a stalking horse bid from TR
Acquisition Company, Inc., an affiliate of Tennenbaum Capital
Partners, LLC, its prepetition term loan agent. Tennenbaum will
be offering the face amount of its debt as a substitute for some
of the cash at the auction of the Debtors' assets.
Lehman Brothers serves as the Debtors' financial advisor and
helped the Debtors to explore strategic alternatives for its
business. Lehman Brothers assisted the Debtors in reaching a
purchase agreement with their term loan lenders.
The Debtors say that as part of Lehman Brothers' efforts to
solicit interest in the possible sale or refinancing of their
business, many of its executives were called to do additional
work. The Debtors want to reward the executives for their
substantial contribution to Lehman Brothers' efforts and encourage
them to continue working in order to maximize the value of the
estates.
The Management Incentive Plan submitted by the Debtor is designed
to give participants greater compensation in the event that they
obtain greater value for the assets up for sale. Upon closing of
the sale of the Debtors' assets, a pool of funds will be earmarked
for plan participants.
The Debtors determined the initial amount of the compensation pool
at $700,000. Additional amounts will be earned for the
compensation pool if the Debtors' consummate a better deal than
the one proposed by TR Acquisition.
Approximately $625,000 of the compensation pool funds will be paid
to the Debtors':
-- Executive Vice President for Corporate Development;
-- Chief Financial Officer;
-- Chief Operating Office; and
-- General Counsel
The remaining $75,000 will be distributed to junior executives.
Headquartered in Radnor, Pennsylvania, Radnor Holdings Corporation
-- http://www.radnorholdings.com/-- manufactures and distributes
a broad line of disposable food service products in the United
States, and specialty chemicals worldwide. The Debtor and its
affiliates filed for chapter 11 protection on Aug. 21, 2006
(Bankr. D. Del. Case No. 06-10894). Gregg M. Galardi, Esq., and
Mark L. Desgrosseilliers, Esq., at Skadden, Arps, Slate, Meagher,
represent the Debtors. When the Debtors filed for protection from
their creditors, they listed total assets of $361,454,000 and
total debts of $325,300,000.
RADNOR HOLDINGS: Wants Until October 20 to File Schedules
---------------------------------------------------------
Radnor Holdings Corporation and its debtor-affiliates ask the U.S.
Bankruptcy Court for the District of Delaware to extend, until
Oct. 20, 2006, the deadline to file their Schedules of Assets and
Liabilities and Statement of Financial Affairs.
The Debtors relate that they are unable to complete their
schedules and statement on time due to the complexity and
diversity of their operations. The Debtors contend that the
extension is warranted citing:
a. the substantial burden already imposed on the Debtors'
management by the commencement of their chapter 11 cases;
b. the limited number of employees available to collect the
information;
c. the competing demands upon the employees; and
d. the time and attention the Debtors must devote to the sale
process.
The Debtors further contend that the extension will enhance the
accuracy of their schedules and statement and thus avoid the
necessity of substantial subsequent amendments.
Headquartered in Radnor, Pennsylvania, Radnor Holdings Corporation
-- http://www.radnorholdings.com/-- manufactures and distributes
a broad line of disposable food service products in the United
States, and specialty chemicals worldwide. The Debtor and its
affiliates filed for chapter 11 protection on Aug. 21, 2006
(Bankr. D. Del. Case No. 06-10894). Gregg M. Galardi, Esq., and
Mark L. Desgrosseilliers, Esq., at Skadden, Arps, Slate, Meagher,
represent the Debtors. When the Debtors filed for protection from
their creditors, they listed total assets of $361,454,000 and
total debts of $325,300,000.
REFCO INC: U.S. Trustee Objects to Houlihan Lokey's Fee Increase
----------------------------------------------------------------
Diana G. Adams, the Acting United States Trustee for Region 2,
complains that the Official Committee of Unsecured Creditors of
Refco Inc., and its debtor-affiliates' second amended application
proposes a 350% increase in the Transaction Fee, the continuation
of the Monthly Fee, plus two additional sources of compensation
for Houlihan. "The Application raises from two to four the number
of separate components of Houlihan's compensation, and makes the
payment scheme for the firm that much more byzantine."
The Creditors Committee had asked the U.S. Bankruptcy Court for
the Southern District of New York for permission to amend
Houlihan Lokey Howard & Zukin Capital, Inc.'s engagement as
investment bankers and financial advisors citing that as the
Debtors' Chapter 11 cases have progressed, its need for Houlihan
Lokey Howard & Zukin Capital, Inc.'s services, as investment
banker, has increased.
Andrew D. Velez-Rivera, Esq., the U.S. Trustee's trial attorney,
relates that the proposed form of order lodged with the
Application similarly provides that only the U.S. Trustee retains
the right to object to the payment of the Monthly Fees -- and now
the BAWAG Monthly Fees -- sought in Houlihan's interim and final
fee applications under Section 330 of the Bankruptcy Code.
Against this backdrop, the U.S. Trustee wants the proposed order
revised to retain her Section 330 rights to object to payment of
all components of compensation structure proposed for Houlihan,
without limitation to solely the Monthly Fees and the Monthly
BAWAG Fees.
Mr. Velez-Rivera argues that an unrestricted reservation of
Section 330 rights is warranted in light of:
-- the changed circumstances underlying Houlihan's proposed
retention scheme;
-- the $7,000,000 increase in the proposed Transaction Fee;
-- the introduction of both the BAWAG Monthly Fees and the
open-ended BAWAG Transaction Fee;
-- the general escalation of fees in the Refco cases, now
well over $60,000,000;
-- the wider and deeper scope of services expected of
Houlihan;
-- the more complicated payment structure that has been
negotiated; and
-- other parties' inability to object under Section 330.
Mr. Velez-Rivera maintains that a complete reservation of rights
would also render the proposed retention more consistent with the
"Blackstone Protocol" governing the employment of financial
advisors in Chapter 11 reorganization cases filed in the Southern
District of New York.
Under the Protocol, the U.S. Trustee's reservation of Section 330
rights is unrestricted, as it does not differentiate between
individual components of compensation packages often proposed by
financial advisors, like monthly fees vis-a-vis transaction fees.
About Refco Inc.
Based in New York, Refco Inc. -- http://www.refco.com/-- is a
diversified financial services organization with operations in
14 countries and an extensive global institutional and retail
client base. Refco's worldwide subsidiaries are members of
principal U.S. and international exchanges, and are among the most
active members of futures exchanges in Chicago, New York, London
and Singapore. In addition to its futures brokerage activities,
Refco is a major broker of cash market products, including foreign
exchange, foreign exchange options, government securities,
domestic and international equities, emerging market debt, and OTC
financial and commodity products. Refco is one of the largest
global clearing firms for derivatives.
The Company and 23 of its affiliates filed for chapter 11
protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006).
J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, represent the Debtors in their restructuring efforts. Luc A.
Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP, represents
the Official Committee of Unsecured Creditors. Refco reported
$16.5 billion in assets and $16.8 billion in debts to the
Bankruptcy Court on the first day of its chapter 11 cases.
Refco LLC, an affiliate, filed for chapter 7 protection on
Nov. 25, 2005 (Bankr. S.D.N.Y. Case No. 05-60134). Refco, LLC, is
a regulated commodity futures company that has businesses in the
United States, London, Asia and Canada. Refco, LLC, filed for
bankruptcy protection in order to consummate the sale of
substantially all of its assets to Man Financial Inc., a wholly
owned subsidiary of Man Group plc. Albert Togut, the chapter 7
trustee, is represented by Togut, Segal & Segal LLP.
On April 13, 2006, the Court appointed Marc S. Kirschner as Refco
Capital Markets Ltd.'s chapter 11 trustee. Mr. Kirschner is
represented by Bingham McCutchen LLP. RCM is Refco's operating
subsidiary based in Bermuda.
Three more affiliates of Refco, Westminster-Refco Management LLC,
Refco Managed Futures LLC, and Lind-Waldock Securities LLC, filed
for chapter 11 protection on June 6, 2006 (Bankr. S.D.N.Y. Case
Nos. 06-11260 through 06-11262). (Refco Bankruptcy News, Issue
No. 39; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
REFCO INC: Ch. 7 Trustee Wants 36 Claims Disallowed & Expunged
--------------------------------------------------------------
Albert Togut, the Chapter 7 trustee for the estate of Refco, LLC,
reports that as of August 10, 2006, more than 400 proofs of claim
have been filed and docketed against the Chapter 7 Debtor. Omni
Management, LLC, the claims agent appointed by the U.S. Bankruptcy
Court for the Southern District of New York, continues to process
numerous claims, which will be docketed shortly.
Mr. Togut informs the Court that he and his counsel and financial
advisors have been evaluating the proofs of claim docketed so far
to identify objectionable claims. The Refco LLC Trustee reviewed
each claim, the official claims register maintained by Omni and
Refco LLC's Schedules of Assets and Liabilities, and the Debtor's
books and records.
Based on this review, Mr. Togut found:
25 claims that are duplicative of other filed claims;
4 claims that have been superseded by an amended claim; or
7 claims that any documentation to support the claim.
Mr. Togut asks the Court to disallow and expunge the 36 disputed
claims.
If the Disputed Claims are not disallowed and expunged, the
holders of the claims would receive a windfall or excessive
recovery to the detriment of other creditors, Mr. Togut explains.
Mr. Togut also points out that holders of Lack Supporting
Documentation Claims do not have any legitimate claims against
Refco LLC's estate.
A schedule of the Duplicate Claims is available at no charge at
http://ResearchArchives.com/t/s?109e
A schedule of the Amended Claims is available at no charge at
http://ResearchArchives.com/t/s?109f
A schedule of the Lack Supporting Documentation Claims is
available at no charge at http://ResearchArchives.com/t/s?10a0
About Refco Inc.
Based in New York, Refco Inc. -- http://www.refco.com/-- is a
diversified financial services organization with operations in
14 countries and an extensive global institutional and retail
client base. Refco's worldwide subsidiaries are members of
principal U.S. and international exchanges, and are among the most
active members of futures exchanges in Chicago, New York, London
and Singapore. In addition to its futures brokerage activities,
Refco is a major broker of cash market products, including foreign
exchange, foreign exchange options, government securities,
domestic and international equities, emerging market debt, and OTC
financial and commodity products. Refco is one of the largest
global clearing firms for derivatives.
The Company and 23 of its affiliates filed for chapter 11
protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006).
J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, represent the Debtors in their restructuring efforts. Luc A.
Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP, represents
the Official Committee of Unsecured Creditors. Refco reported
$16.5 billion in assets and $16.8 billion in debts to the
Bankruptcy Court on the first day of its chapter 11 cases.
Refco LLC, an affiliate, filed for chapter 7 protection on
Nov. 25, 2005 (Bankr. S.D.N.Y. Case No. 05-60134). Refco, LLC, is
a regulated commodity futures company that has businesses in the
United States, London, Asia and Canada. Refco, LLC, filed for
bankruptcy protection in order to consummate the sale of
substantially all of its assets to Man Financial Inc., a wholly
owned subsidiary of Man Group plc. Albert Togut, the chapter 7
trustee, is represented by Togut, Segal & Segal LLP.
On April 13, 2006, the Court appointed Marc S. Kirschner as Refco
Capital Markets Ltd.'s chapter 11 trustee. Mr. Kirschner is
represented by Bingham McCutchen LLP. RCM is Refco's operating
subsidiary based in Bermuda.
Three more affiliates of Refco, Westminster-Refco Management LLC,
Refco Managed Futures LLC, and Lind-Waldock Securities LLC, filed
for chapter 11 protection on June 6, 2006 (Bankr. S.D.N.Y. Case
Nos. 06-11260 through 06-11262). (Refco Bankruptcy News, Issue
No. 39; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
SATELITES MEXICANOS: Court Adjourns Disclosure Hearing to Sept. 13
------------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York,
adjourned the hearing to consider approval of the Disclosure
Statement explaining the Plan of Reorganization filed by Satelites
Mexicanos, S.A. de C.V., to Sept. 13, 2006, at 10:00 a.m.
At the hearing, the Honorable Robert D. Drain, of the U.S.
Bankruptcy Court for the Southern District of New York, will also
consider the Debtor's proposed solicitation and tabulation
procedures, and will schedule a hearing and establish notice and
objection procedures with respect to confirmation of the Debtor's
Chapter 11 Plan of Reorganization.
Objections, if any, to the Disclosure Statement and the proposed
Solicitation Procedures must be filed by Sept. 7, 2006, and served
on:
(i) The Office of the United States Trustee for Region 2
33 Whitehall Street, 21st floor
New York, NY 10004
Attn: Tracy Hope Davis, Esq.
(ii) Counsel for Satelite Mexicanos
Milbank, Tweed, Hadley and McCloy LLP
One Chase Manhattan Plaza
New York , NY 10005
Attn: Luc A. Despins, Esq.
Matthew S. Barr, Esq.
Jessica L. Fink, Esq.
(iii) Counsel to the Ad Hoc Existing Bondholders' Committee
Akin Gump Strauss Hauer & Feld LLP
590 Madison Avenue
New York, NY 10022-2524
Attn: Steven Scheinman, Esq.
Shuba Satyaprasad, Esq.
Michael S. Stamer, Esq.
(iv) Counsel for the Ad Hoc Senior Secured
Noteholders' Committee
Wilmer Cutler Pickering Hale and Dorr LLP
60 State Street
Boston, MA 02109
Attn: Dennis Jenkins, Esq.
George W. Shuster, Jr., Esq.
About Satelites Mexicanos
Satelites Mexicanos, S.A. de C.V., provides fixed satellite
services in Mexico. Satmex provides transponder capacity via its
satellites to customers for distribution of network and cable
television programming, direct-to-home television service, on-site
transmission of live news reports, sporting events and other video
feeds. Satmex also provides satellite transmission capacity to
telecommunications service providers for public telephone networks
in Mexico and elsewhere and to corporate customers for their
private business networks with data, voice and video applications.
Satmex also provides the government of the United Mexican States
with approximately 7% of its satellite capacity for national
security and public purposes without charge, under the terms of
the Orbital Concessions.
The Debtor filed for chapter 11 petition on August 11, 2006
(Bankr. S.D.N.Y. Case No. 06-11868). Luc A. Despins, Esq., at
Milbank, Tweed Hadley & McCloy LLP represents the Debtor in the
U.S. Bankruptcy proceedings. Attorneys from Galicia y Robles,
S.C., and Quijano Cortina Lopez y de la Torre give legal advice in
the Debtor's Mexican Bankrutpcy proceedings. UBS Securities LLC
and Valor Consultores, S.A. de C.V., give financial advice to the
Debtor. Steven Scheinman, Esq., Michael S. Stamer, Esq., and
Shuba Satyaprasad, Esq., at Akin Gump Strauss Hauer & Feld LLP
give legal advice to the Ad Hoc Existing Bondholders' Committee.
Dennis Jenkins, Esq., and George W. Shuster, Jr., Esq., at Wilmer
Cutler Pickering Hale and Dorr LLP give legal advice to Ad Hoc
Senior Secured Noteholders' Committee. As of July 24, 2006, the
Debtor has $905,953,928 in total assets and $743,473,721 in total
liabilities.
On May 25, 2005, certain holders of Satmex's Existing Bonds and
Senior Secured Notes filed an involuntary chapter 11 petition
against the Company (Bankr. S.D.N.Y. Case No. 05-13862).
On June 29, 2005, Satmex filed a voluntary petition for a Mexican
reorganization, known as a Concurso Mercantil, which was assigned
to the Second Federal District Court for Civil Matters for the
Federal District in Mexico City.
On August 4, 2005, Satmex filed a petition, pursuant to Section
304 of the Bankruptcy Code to commence a case ancillary to the
Concurso Proceeding and a motion for injunctive relief seeking,
among other things, to enjoin actions against Satmex or its assets
(Bankr. S.D.N.Y. Case No. 05-16103). (Satmex Bankruptcy News,
Issue No. 2; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
SATELITES MEXICANOS: Court OKs Galicia y Robles as Special Counsel
------------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York,
allowed Satelites Mexicanos, S.A. de C.V., to employ, on an
interim basis, Galicia y Robles, S.C., as its special counsel for
matters pertaining to Mexican corporate law.
Carmen Ochoa Avendano, Esq., the Debtor's general counsel, relates
that Galicia is intimately familiar with the Debtor's business and
is, therefore, able to immediately and knowledgeably assist
Milbank, Tweed, Hadley & McCloy LLP, the Debtor's primary counsel,
in representing the Debtor.
Galicia has represented the Debtor since Feb. 2001 in various
matters pertaining to Mexican law, including those relating to its
restructuring efforts prior to the the Debtor's filing for chapter
11 protection, including the ancillary proceeding under Section
304 of the Bankruptcy Code, the Concurso Mercantil proceeding in
Mexico, and the negotiation and execution of the March 2006
Restructuring Agreement with Servicios Corporativos Satelitales,
S.A. de C.V.; Principia S.A. de C.V.; Loral Skynet Corporation and
Loral SatMex Ltd.; and the ad hoc committees of holders of the
Debtor's Senior Secured Floating Rate Notes due June 30, 2004, and
10-1/8% Unsecured Senior Notes due Nov. 1, 2004.
The firm also assisted the Debtor in preparing various documents
relating to the commencement of the Chapter 11 case and the
Chapter 11 Plan of Reorganization.
As special counsel, Galicia will:
(a) advise the Debtor with respect to its rights, powers and
duties;
(b) assist and advise the Debtor in its consultations with its
creditors;
(c) assist the Debtor in analyzing the claims of its creditors
and in negotiating with the creditors;
(d) assist the Debtor in its analysis of, and negotiations
with, its creditors or any third party concerning matters
related to, among other things, the terms of a
reorganization plan;
(e) assist and advise the Debtor with respect to its
communications with its creditors;
(f) represent the Debtor at all hearings and other
proceedings;
(g) assist the Debtor in preparing pleadings and applications
as may be necessary in furtherance of Satmex's interests
and objectives;
(h) draft and negotiate any agreements, documents,
resolutions, and other instruments necessary to, among
others, implement the Chapter 11 Plan in Mexico; and
(i) perform other legal services on Mexican law matters as may
be required or are deemed to be in the interests of
the Debtor.
Galicia will bill for its services at the firm's standard hourly
rates:
Position Hourly Rate
-------- -----------
Partners $270 - $330
Associates $150 - $240
Law Clerks $80 - $120
Ms. Avendano disclosed that on Aug. 3, 2006, the Debtor provided
Galicia with a $30,000 advance payment to establish a retainer to
pay for legal services rendered or to be rendered in connection
with the Debtor's Chapter 11 case. The Retainer is unapplied.
Ms. Avendano also noted that according to Galicia's books and
records for the year prior to the Debtor's filing for chapter 11
protection, Galicia was paid approximately $489,500 by the Debtor
for legal services performed and expenses incurred in
contemplation of or in connection with the Debtor's Chapter 11
case, including, among other things, the 304 Proceeding, the
Concurso Proceeding, the negotiation and execution of the
Restructuring Agreement, and the preparation of various corporate
documents relating to the restructuring of the Debtor as a Mexican
corporation.
Rafael Robles Miaja, Esq., at Galicia y Robles, S.C., in Mexico,
assures the Court that his firm does not represent or hold any
interest adverse to the Debtor or to the Debtor's estate with
respect to the matters on which it is being engaged.
Mr. Robles discloses that Galicia currently represents Citibank,
N.A., and its affiliates, and Grupo Carso, S.A., de C.V., and
Telefonos de Mexico, S.A., de C.V., in matters unrelated to the
Debtor's case. Citibank is the indenture trustee for the Senior
Secured Notes. Grupo Carso and Telmex have been identified as
"Approved Buyers" pursuant to the Restructuring Agreement in
connection with certain change of control provisions.
About Satelites Mexicanos
Satelites Mexicanos, S.A. de C.V., provides fixed satellite
services in Mexico. Satmex provides transponder capacity via its
satellites to customers for distribution of network and cable
television programming, direct-to-home television service, on-site
transmission of live news reports, sporting events and other video
feeds. Satmex also provides satellite transmission capacity to
telecommunications service providers for public telephone networks
in Mexico and elsewhere and to corporate customers for their
private business networks with data, voice and video applications.
Satmex also provides the government of the United Mexican States
with approximately 7% of its satellite capacity for national
security and public purposes without charge, under the terms of
the Orbital Concessions.
The Debtor filed for chapter 11 petition on August 11, 2006
(Bankr. S.D.N.Y. Case No. 06-11868). Luc A. Despins, Esq., at
Milbank, Tweed Hadley & McCloy LLP represents the Debtor in the
U.S. Bankruptcy proceedings. Attorneys from Galicia y Robles,
S.C., and Quijano Cortina Lopez y de la Torre give legal advice in
the Debtor's Mexican Bankrutpcy proceedings. UBS Securities LLC
and Valor Consultores, S.A. de C.V., give financial advice to the
Debtor. Steven Scheinman, Esq., Michael S. Stamer, Esq., and
Shuba Satyaprasad, Esq., at Akin Gump Strauss Hauer & Feld LLP
give legal advice to the Ad Hoc Existing Bondholders' Committee.
Dennis Jenkins, Esq., and George W. Shuster, Jr., Esq., at Wilmer
Cutler Pickering Hale and Dorr LLP give legal advice to Ad Hoc
Senior Secured Noteholders' Committee. As of July 24, 2006, the
Debtor has $905,953,928 in total assets and $743,473,721 in total
liabilities.
On May 25, 2005, certain holders of Satmex's Existing Bonds and
Senior Secured Notes filed an involuntary chapter 11 petition
against the Company (Bankr. S.D.N.Y. Case No. 05-13862).
On June 29, 2005, Satmex filed a voluntary petition for a Mexican
reorganization, known as a Concurso Mercantil, which was assigned
to the Second Federal District Court for Civil Matters for the
Federal District in Mexico City.
On August 4, 2005, Satmex filed a petition, pursuant to Section
304 of the Bankruptcy Code to commence a case ancillary to the
Concurso Proceeding and a motion for injunctive relief seeking,
among other things, to enjoin actions against Satmex or its assets
(Bankr. S.D.N.Y. Case No. 05-16103). (Satmex Bankruptcy News,
Issue No. 2; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
SATELITES MEXICANOS: FCC OKs SATMEX 6 Addition to Permitted List
----------------------------------------------------------------
The Federal Communications Commission granted Satelites Mexicanos,
S.A. de C.V.'s petition to add its in-orbit C- and Ku-band
satellite, SATMEX 6, to the Commission's Permitted Space Station
List.
The FCC also permitted each earth station with "ALSAT" designated
as a point of communication to provide Fixed Satellite Services
and FSS Direct-to-Home Service to, from, or within the United
States, by accessing SATMEX 6.
SATMEX 6 was launched into orbit on May 27, 2006. The satellite
is located at the 113 degrees W.L. orbital location.
A full-text copy of the FCC's order is available at no charge
at http://ResearchArchives.com/t/s?111b
About Satelites Mexicanos
Satelites Mexicanos, S.A. de C.V., provides fixed satellite
services in Mexico. Satmex provides transponder capacity via its
satellites to customers for distribution of network and cable
television programming, direct-to-home television service, on-site
transmission of live news reports, sporting events and other video
feeds. Satmex also provides satellite transmission capacity to
telecommunications service providers for public telephone networks
in Mexico and elsewhere and to corporate customers for their
private business networks with data, voice and video applications.
Satmex also provides the government of the United Mexican States
with approximately 7% of its satellite capacity for national
security and public purposes without charge, under the terms of
the Orbital Concessions.
The Debtor filed for chapter 11 petition on August 11, 2006
(Bankr. S.D.N.Y. Case No. 06-11868). Luc A. Despins, Esq., at
Milbank, Tweed Hadley & McCloy LLP represents the Debtor in the
U.S. Bankruptcy proceedings. Attorneys from Galicia y Robles,
S.C., and Quijano Cortina Lopez y de la Torre give legal advice in
the Debtor's Mexican Bankrutpcy proceedings. UBS Securities LLC
and Valor Consultores, S.A. de C.V., give financial advice to the
Debtor. Steven Scheinman, Esq., Michael S. Stamer, Esq., and
Shuba Satyaprasad, Esq., at Akin Gump Strauss Hauer & Feld LLP
give legal advice to the Ad Hoc Existing Bondholders' Committee.
Dennis Jenkins, Esq., and George W. Shuster, Jr., Esq., at Wilmer
Cutler Pickering Hale and Dorr LLP give legal advice to Ad Hoc
Senior Secured Noteholders' Committee. As of July 24, 2006, the
Debtor has $905,953,928 in total assets and $743,473,721 in total
liabilities.
On May 25, 2005, certain holders of Satmex's Existing Bonds and
Senior Secured Notes filed an involuntary chapter 11 petition
against the Company (Bankr. S.D.N.Y. Case No. 05-13862).
On June 29, 2005, Satmex filed a voluntary petition for a Mexican
reorganization, known as a Concurso Mercantil, which was assigned
to the Second Federal District Court for Civil Matters for the
Federal District in Mexico City.
On August 4, 2005, Satmex filed a petition, pursuant to Section
304 of the Bankruptcy Code to commence a case ancillary to the
Concurso Proceeding and a motion for injunctive relief seeking,
among other things, to enjoin actions against Satmex or its assets
(Bankr. S.D.N.Y. Case No. 05-16103). (Satmex Bankruptcy News,
Issue No. 2; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
SILICON GRAPHICS: Court Extends Exclusivity Period to Dec. 29
-------------------------------------------------------------
The U.S. Bankruptcy Court for the District of New York approved
the request of Silicon Graphics, Inc., and its debtor-affiliates
to extend their:
* Exclusive Plan Proposal Period through and including
Dec. 29, 2006; and
* Exclusive Solicitation Period through and including
Feb. 28, 2007.
As reported in the Troubled Company Reporter on Aug. 23, 2006,
Gary Holtzer, Esq., at Weil, Gotshal & Manges LLP, in New York,
told Judge Lifland that the Debtors' Chapter 11 cases were
sufficiently large and complex to warrant the requested extension.
Headquartered in Mountain View, California, Silicon Graphics, Inc.
(OTC: SGID) -- http://www.sgi.com/-- offers high-performance
computing. SGI helps customers solve their computing challenges,
whether it's sharing images to aid in brain surgery, finding oil
more efficiently, studying global climate, providing technologies
for homeland security and defense, enabling the transition from
analog to digital broadcasting, or helping enterprises manage
large data. The Debtor and 13 of its affiliates filed for chapter
11 protection on May 8, 2006 (Bankr. S.D.N.Y. Case Nos. 06-10977
through 06-10990). Gary Holtzer, Esq., and Shai Y. Waisman, Esq.,
at Weil Gotshal & Manges LLP, represent the Debtors in their
restructuring efforts. When the Debtors filed for protection from
their creditors, they listed total assets of $369,416,815 and
total debts of $664,268,602. The Debtors' exclusive plan-filing
period will expire on Dec. 29, 2006, and its exclusive
solicitation period will expire on Feb. 28, 2007. (Silicon
Graphics Bankruptcy News, Issue No. 16; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000)
SILICON GRAPHICS: Lampe Conway Opposes Plan Confirmation
--------------------------------------------------------
Lampe, Conway & Co., LLC, Silicon Graphics, Inc., its debtor-
affiliates, the SGI Noteholders and the Official Committee of
Unsecured Creditors has reached consensus concerning certain
components of a Chapter 11 plan in June 2006.
"Lampe Conway continues to support confirmation of the Plan and
the terms of the Global Settlement to which it already agreed.
However, the Debtors (at the insistence of the SGI Noteholders)
have breached certain terms of the Plan that were consistent with
the Global Settlement on key issues relating to the Lampe Conway
Rights Offering Option," Susheel Kirpalani, Esq., at Milbank,
Tweed, Hadley & McCloy LLP, asserts.
Specifically, Mr. Kirpalani says, both the Backstop Purchasers and
Lampe Conway were expressly promised in the Plan and the Global
Settlement that they would receive agreements governing their
participation in the Rights Offering.
Subsequently, the Debtors prepared an agreement for the Backstop
Purchasers, which was recently approved by the Court, but refused
to prepare any such agreement for Lampe Conway.
"It is fundamentally unfair," Mr. Kirpalani argues. "They have
violated not only the spirit and a key component of the Global
Settlement, but also the very terms of the Plan."
Furthermore, Mr. Kirpalani continues, the Plan should be modified
with respect to the mechanics of Plan and Plan Supplement
amendments:
(1) To reflect the Global Settlement, the Plan should provide
that Lampe Conway will receive notice with respect to
modifications and must consent to amendments that are
materially adverse to Lampe Conway; and
(2) The Plan provision which states that the Debtors need only
secure Lampe Conway's consent to modifications to the Plan
Supplement documents "where reasonably necessary" must be
deleted.
Headquartered in Mountain View, California, Silicon Graphics, Inc.
(OTC: SGID) -- http://www.sgi.com/-- offers high-performance
computing. SGI helps customers solve their computing challenges,
whether it's sharing images to aid in brain surgery, finding oil
more efficiently, studying global climate, providing technologies
for homeland security and defense, enabling the transition from
analog to digital broadcasting, or helping enterprises manage
large data. The Debtor and 13 of its affiliates filed for chapter
11 protection on May 8, 2006 (Bankr. S.D.N.Y. Case Nos. 06-10977
through 06-10990). Gary Holtzer, Esq., and Shai Y. Waisman, Esq.,
at Weil Gotshal & Manges LLP, represent the Debtors in their
restructuring efforts. When the Debtors filed for protection from
their creditors, they listed total assets of $369,416,815 and
total debts of $664,268,602. The Debtors' exclusive plan-filing
period will expire on Dec. 29, 2006, and its exclusive
solicitation period will expire on Feb. 28, 2007. (Silicon
Graphics Bankruptcy News, Issue No. 16; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000)
SOLUTIA INC: Wants Court to Approve Pharmacia Lease Agreement
-------------------------------------------------------------
Solutia Inc. and its debtor-affiliates ask the U.S. Bankruptcy
Court for the Southern District of New York to approve the Third
Amendment of the Pharmacia & Upjohn Lease Agreement and permit
Solutia to assume the Lease, as amended.
Solutia, Inc., and Pharmacia & Upjohn Company LLC, a wholly owned
subsidiary of Pfizer, Inc., are parties to a lease agreement
dated May 13, 2002. Pursuant to the Lease, Pharmacia sublets
around 91,000 square feet of vacant space located on the fifth
and sixth floors of Solutia's headquarters located in St. Louis,
Missouri.
The Lease is scheduled to expire Aug. 27, 2007, and Pharmacia
had the right to renew the Lease until July 27, 2006, by
delivering a written notice to Solutia.
Pharmacia plans to renew the Lease and has commenced negotiations
with Solutia. In July 2006, the two parties executed the second
amendment to the Lease, which extended the deadline by which
Pharmacia is required to provide notice of its intent to renew
the Lease from July 27 to Oct. 31, 2006.
Jonathan S. Henes, Esq., at Kirkland & Ellis LLP, in New York,
says that the parties agreed to the extension to obtain
sufficient time to:
-- complete their negotiation of the terms of the Lease
renewal;
-- obtain Court approval of the assumption of the Lease, as
amended; and
-- fulfill the other conditions precedent to the assumption
of the Lease all in a manner so that Pharmacia could
timely decide whether to renew the Lease or relocate to
alternative office space.
Third Amendment of the Lease
The parties' negotiations regarding the renewal resulted in an
agreement to amend the Lease for the third time. Salient terms
of the Third Amendment are:
(1) the term of the Lease will be extended until Aug. 31,
2012;
(2) Pharmacia will have three successive options to renew the
Lease, each for a period of three years, if there is no
uncured event of default under the Lease;
(3) Pharmacia's rent for the Premises will be adjusted
effective Aug. 28, 2007:
Annual Rate
Per Rentable Base Rent
Period Square Foot Monthly Annual
------ ------------ --------- ----------
Aug. 28, 2007
to Aug. 31, 2010 $23 $172,489 $2,069,865
Sept. 1, 2010
to Aug. 31, 2012 24 183,988 2,207,856
(4) Solutia will ensure that Pharmacia continues for the
duration of its tenancy to have use of certain furniture
that it currently subleases from Solutia. If Solutia is
unable to provide the same furniture, Pharmacia will
receive certain limited credits against the annual base
rent for the period of time the furniture is not available
to Pharmacia;
(5) Solutia will provide Pharmacia with a tenant improvement
allowance of up to $459,970 for refurbishing the Premises;
and
(6) If there are vacancies in other space in Solutia's
headquarters, Pharmacia will have the right of first offer
at a monthly base rent equivalent to the then applicable
fair market rental rate.
Mr. Henes says that the Third Amendment and the assumption of the
amended Lease, will become effective only if Solutia:
-- files the request for the approval of the Third Amendment
to the Court no later than 20 days before the Sept. 4,
2006 hearing scheduled in the case; and
-- obtains a recordable non-disturbance agreement from all
parties with a recorded interest in the land or building,
which is superior to the Lease or Third Amendment, no
later than five business days after the Court order
approving the Lease assumption becomes final and non-
appealable.
If these conditions are not satisfied, the Lease will remain in
full force and effect under its current terms.
Headquartered in St. Louis, Missouri, Solutia, Inc. (OTCBB:SOLUQ)
-- http://www.solutia.com/-- with its subsidiaries, make and sell
a variety of high-performance chemical-based materials used in a
broad range of consumer and industrial applications. The Company
filed for chapter 11 protection on Dec. 17, 2003 (Bankr. S.D.N.Y.
Case No. 03-17949). When the Debtors filed for protection from
their creditors, they listed $2,854,000,000 in assets and
$3,223,000,000 in debts. Solutia is represented by Richard M.
Cieri, Esq., at Kirkland & Ellis. Daniel H. Golden, Esq., Ira S.
Dizengoff, Esq., and Russel J. Reid, Esq., at Akin Gump Strauss
Hauer & Feld LLP represent the Official Committee of Unsecured
Creditors, and Derron S. Slonecker at Houlihan Lokey Howard &
Zukin Capital provides the Creditors' Committee with financial
advice. (Solutia Bankruptcy News, Issue No. 67; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000)
SOLUTIA INC: BOC Gases Wants Stay Lifted to Disassemble Facility
----------------------------------------------------------------
BOC Gases asks the U.S. Bankruptcy Court for the Southern District
of New York to lift the automatic stay so BOC can disassemble the
Hydrogen Plant and remove it from the Florida Location. BOC
further asks the Court to allow it to exercise all its rights and
grant it remedies that are applicable under non-bankruptcy law.
Solutia, Inc., and BOC Gases, a division of The BOC Group, Inc.,
entered into an On-Site Product Supply Agreement on Aug. 18,
1999. Under the Agreement, BOC constructed and operated a
dedicated hydrogen and steam production facility in Gonzalez,
Florida, to supply hydrogen and steam to a Solutia facility to be
constructed at the same location.
After the Hydrogen Plant was constructed, Solutia's business plan
changed and the manufacturing plant was not built. Solutia's
Agreement with BOC was rejected effective January 2004.
The Hydrogen Plant has been inoperative since at least 2003, and
remains at the Florida Location. Solutia has no interest in the
Hydrogen Plant and the facility is not necessary to Solutia's
effective reorganization as it has not been operating for years,
Scott A. Zuber, Esq., at Pitney Hardin LLP, in Florham Park, New
Jersey, relates.
Headquartered in St. Louis, Missouri, Solutia, Inc. (OTCBB:SOLUQ)
-- http://www.solutia.com/-- with its subsidiaries, make and sell
a variety of high-performance chemical-based materials used in a
broad range of consumer and industrial applications. The Company
filed for chapter 11 protection on Dec. 17, 2003 (Bankr. S.D.N.Y.
Case No. 03-17949). When the Debtors filed for protection from
their creditors, they listed $2,854,000,000 in assets and
$3,223,000,000 in debts. Solutia is represented by Richard M.
Cieri, Esq., at Kirkland & Ellis. Daniel H. Golden, Esq., Ira S.
Dizengoff, Esq., and Russel J. Reid, Esq., at Akin Gump Strauss
Hauer & Feld LLP represent the Official Committee of Unsecured
Creditors, and Derron S. Slonecker at Houlihan Lokey Howard &
Zukin Capital provides the Creditors' Committee with financial
advice. (Solutia Bankruptcy News, Issue No. 67; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000)
STARINVEST GROUP: Posts $654,914 Net Loss for Qtr. Ended June 30
----------------------------------------------------------------
For the three months ended June 30, 2006, StarInvest Group Inc.,
fka Exus Global Inc., reported total net losses of $654,914 and
gross profit of $15,740.
The Company's balance sheet at June 30, 2006, showed strained
liquidity with $139,459 in total current assets and $1,377,428 in
total current liabilities.
At June 30, 2006, the Company had total assets of $2,292,983,
total liabilities of $1,422,428, and total stockholders' equity of
$870,555.
Full text copies of the Company's financial statements for
the quarter ended June 30, 2006 are available for free
at http://researcharchives.com/t/s?1113
Going Concern Doubt
Larry O'Donnell, CPA, P.C., raised substantial doubt about
StarInvest Group, Inc.'s ability to continue as a going concern
after auditing the Company's consolidated financial statements for
the year ended Dec. 31, 2005. The auditor pointed to the
Company's negative working capital and accumulated deficit.
About StarInvest Group
Based in Midland, Texas, StarInvest Group Inc. fka Exus Global
Inc. -- http://www.starinvestgroup.com/-- provides capital and
other assistance to small- and medium-sized technology companies.
THREE-FIVE: Arizona Court Confirms Plan of Reorganization
---------------------------------------------------------
Three-Five Systems, Inc., received approval of its Plan of
Reorganization from the bankruptcy court overseeing its Chapter 11
proceeding in Phoenix, Arizona. The bankruptcy court entered the
Order confirming the Company's Plan on Aug. 30, 2006, and also
approved a comprehensive Settlement Agreement between the Company,
its subsidiary TFS Electronic Manufacturing Systems, Inc., the
Official Committee of Unsecured Creditors in the bankruptcy case
of EMS, and CGSNW-Willows, LLC, the primary landlord for EMS.
The bankruptcy court's decision came after a hearing held on
July 26, 2006. The bankruptcy court overruled objections to
confirmation of the Company's Plan and to approval of the
Settlement Agreement filed by the Official Committee of
Equityholders.
The Effective Date under the Plan is expected to be Sept. 11,
2006, at which time the board of directors of the Company will
consist of Lyron Bentovim (a current board member), G. Grant Lyon,
Peter S. Davis, Robert Nahom, and David Buchanan. Messrs. Lyon
and Davis are independent board members. The board of the
Company, after the Effective Date, will manage the wind down of
the Company.
A full-text copy of the Company's Disclosure Statement together
with the Plan of Reorganization is available for free at:
http://ResearchArchives.com/t/s?1128
Based in Tempe, Arizona, Three-Five Systems, Inc. (OTC: TFSIQ) --
http://tfsc.com/-- provides specialized electronics manufacturing
services to original equipment manufacturers. TFS offers a broad
range of engineering and manufacturing capabilities. The Company
filed for chapter 11 protection on Sept. 8, 2005 (Bankr. D. Ariz.
Case No. 05-17104). Thomas J. Salerno, Esq., at Squire, Sander &
Dempsey, LLP, represents the Debtor in its restructuring efforts.
Brian N. Spector, Esq., at Jennings Strouss & Slamon, PLC,
represents the Official Committee of Unsecured Creditors. The
Official Equityholders Committee is represented by Craig J.
Bolotn, Esq., at Jennings Haug & Cunningham. When the Debtor
filed for protection from its creditors, it listed $11,694,467 in
total assets and $2,880,377 in total debts.
UNISYS CORP: S&P Lowers Corp. Credit & Senior Debt Ratings to B+
----------------------------------------------------------------
Standard & Poor's Ratings Services lowered its corporate credit
and senior unsecured debt ratings on Blue Bell, Pennsylvania-based
Unisys Corp. to 'B+' from 'BB-'. The outlook is negative.
"The ratings on Unisys Corp. reflect deteriorating credit-
protection measures, coupled with uncertainties regarding the
company's ability to improve profitability and cash flows over the
near term, in light of challenging market conditions and
problematic contracts," said Standard & Poor's credit analyst
Philip Schrank.
Overall operating profitability has been affected by:
* the reduction of operating income from its high-margin legacy
enterprise server business;
* losses attributed to certain services contracts; and
* the effect that pension expense has had on recent results.
The technology sector, while less than 20% of sales, has
historically been responsible for the majority of Unisys'
operating profits, and Standard & Poor's expects ongoing revenue
declines in this segment.
Over the longer term, Standard & Poor's expects Unisys to focus on
high growth market areas and expand its Services segment to
compensate for the declining contribution from the Technology
segment. Profitability in both the Services and Technology
segments lags industry peers; segment operating margins were about
break-even and negative 8% respectively for the six months ended
June 2006.
Although Unisys will be challenged to increase revenues and profit
margins over the near term because of a very intense competitive
environment, results in fiscal 2007 and beyond should benefit as
the cost structure realignment continues and the financial impact
of problem contracts dissipates. The company has addressed
execution issues on certain business process outsourcing
contracts, and has taken actions to reduce its exposure under
these contracts.
By modifying its U.S. defined benefit plan, Standard & Poor's
expects this expense to decline further and be partially
accelerated by the changes.
Ratings support is provided by a contractual services backlog,
which adds a measure of earnings predictability. Additionally,
Unisys maintains a good competitive position, especially in the
Federal Government and public sector, strong client relationships,
and increasing global scale.
VESTA INSURANCE: Wants Balch & Bingham as Special Counsel
---------------------------------------------------------
Vesta Insurance Group Inc. and its debtor-affiliate seek
permission from the U.S. Bankruptcy Court for the Northern
District of Alabama to employ Balch & Bingham, LLP, as their
special counsel, effective as of the Debtors' bankruptcy filing.
Balch & Bingham, LLP, has served as counsel to the Debtors since
1993. Among other things, Balch has advised the Debtors in
general corporate matters, real estate, contracts, employment,
securities, financing, litigation and insurance regulation.
The partners, counsel and associates of Balch are uniquely
familiar with the corporate and business history of the Debtors.
They have considerable knowledge and experience in corporate law,
securities and public finance law, employment law and other areas
of law relevant to the Debtors. Balch is in a position to provide
valuable information and advice on a variety of potential legal
issues that may arise during the ordinary course of the Debtors'
business or otherwise.
Balch assures the Court that it will make every effort to avoid
duplication of services.
The firm will:
(a) advise the Debtors in the continued management and
operation of their business and properties;
(b) advise the Debtors on matters relating to the
renegotiation of their contracts and other business
relationships;
(c) advise the Debtors and prepare on behalf of the Debtors
all corporate filings required by state and federal
authorities, including those, if any, required by the
Securities and Exchange Commission;
(d) advise the Debtors with respect to employee compensation
and related issues;
(e) assist the Debtors with non-bankruptcy commercial matters,
including contract issues;
(f) negotiate and consummate any transaction concerning the
Debtors or the Debtors' assets;
(g) provide non-bankruptcy advice to the Debtors with respect
to their Board of Directors and executive management and
coordinate with Parker, Hudson, Rainer & Dobbs, LLP, on:
-- legal matters arising in or relating to the Debtors'
ordinary course of business, including attendance at
senior management meetings, meetings with the Debtors'
financial advisors, and meetings of the Board of
Directors; and
-- other matters as the Debtors or Parker Hudson deem
appropriate under the circumstances;
(h) attend meetings with third parties and participate in
negotiations with respect to the matters for which it is
retained;
(i) when deemed necessary and appropriate by Parker Hudson,
attend and participate in proceedings before the Court and
assist Parker Hudson in representing the Debtors in their
Chapter 11 cases;
(j) perform services on which the Debtors' general bankruptcy
counsel has a conflict of interest; and
(k) perform all other legal services for the Debtors which may
be desirable and necessary for the efficient and economic
administration of the Debtors' Chapter 11 cases.
Balch's hourly billing rates currently range from:
Position Hourly Rate
-------- -----------
Partners $280 - $600
Of Counsel $450 - $600
Associates $190 - $290
Paraprofessionals $110 - $160
The present hourly rates for the attorneys of the firm likely to
provide legal services for the Debtors are:
Professionals Hourly Rate
------------- -----------
James F. Hughey, Jr. $375
W. Clark Watson $375
Michael D. Waters $375
Lee H. Zell $375
Douglas B. Kauffman $285
Kimberly T. Powell $270
James W. King $250
Christie L. Dowling $235
Kelly G. Gwathney $215
Michael R. Ray $215
James L. Thornton $215
Brent T. Cobb $190
Jeremy L. Retherford $190
The hourly rates are subject to periodic adjustments.
On Aug. 2, 2006, Balch received a $35,000 retainer from J. Gordon
Gaines, Inc. On Aug. 4, 2006, Balch received a $45,000 retainer
from Vesta Insurance Group, Inc.
W. Clark Watson, Esq., a partner at Balch & Bingham, LLP, tells
the Court that with the exception of Walter M. Beale, Jr., no
attorney in Balch is now or has ever served as an officer,
director of the Debtors. John McCullough, a former partner of
Balch, serves as a vice president and associate general counsel
and assistant secretary of VIG, and as a senior vice president,
associate general counsel, assistant secretary and a member of
the Board of Directors of Gaines.
"Various attorneys and other employees of Balch may hold a direct
or indirect equity interest in [the Debtors] or a right to
acquire such an interest," Mr. Watson says.
Mr. Watson attests that Balch does not represent or hold any
interest adverse to the Debtors or to the estates with respect to
the matters on which Balch is to be employed.
About Vesta Insurance
Headquartered in Birmingham, Alabama, Vesta Insurance Group, Inc.
(Other OTC: VTAI.PK) -- http://www.vesta.com/-- is a holding
company for a group of insurance companies that primarily offer
property insurance in targeted states.
Wyatt R. Haskell, Luther S. Pate, UV, and Costa Brava Partnership
III, L.P., filed an involuntary chapter 7 petition against the
Company on July 18, 2006 (Bankr. N.D. Ala. Case No. 06-02517).
The case was converted to a voluntary chapter 11 case on Aug. 8,
2006 (Bankr. N.D. Ala. Case No. 06-02517). Eric W. Anderson,
Esq., at Parker Hudson Rainer & Dobbs, LLP, represents the Debtor.
R. Scott Williams, Esq., at Haskell Slaughter Young & Rediker,
LLC, represents the petitioning creditors. In its schedules of
assets and liabilities, Vesta listed $14,919,938 in total assets
and $214,278,847 in total liabilities.
J. Gordon Gaines, Inc., is a Vesta Insurance-owned unit that
manages the company's numerous insurance subsidiaries and employs
the headquarters workers. The Company filed for chapter 11
protection on Aug. 7, 2006 (Bankr. N.D. Ala. Case No. 06-02808).
Eric W. Anderson, Esq., at Parker Hudson Rainer & Dobbs, LLP,
represent the Debtor in its restructuring efforts. In its
schedules of assets and liabilities, Gaines listed $19,818,094 in
total assets and $16,046,237 in total liabilities.
On Aug. 1, 2006, the District Court of Travis County, Texas
entered the Order appointing the Texas Commissioner of Insurance
as Liquidator of Vesta Insurance's Texas-domiciled subsidiaries:
Vesta Fire Insurance Corporation; The Shelby Insurance Company;
Shelby Casualty Insurance Corporation; Texas Select Lloyds
Insurance Company; and Select Insurance Services, Inc. (Vesta
Bankruptcy News, Issue No. 3; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
VESTA INSURANCE: J. Gordon Wants Utility Cos. to Continue Services
------------------------------------------------------------------
J. Gordon Gaines Inc., an affiliate of Vesta Insurance Group,
Inc., asks the U.S. Bankruptcy Court for the Northern District of
Alabama to:
(a) deem utilities adequately assured of payment for
postpetition services;
(b) prohibit utilities from altering, refusing or
discontinuing services to the Debtor on account of the
commencement of its Chapter 11 case or the nonpayment of
prepetition invoices;
(c) authorize it to pay prepetition utility invoices in its
discretion; and
(d) establish uniform procedures for resolving disputes
regarding the adequate assurance of payment it provides.
J. Gordon uses various utilities essential to the continued
operation of its business, including:
Vendor Type of Service
------ ---------------
Alabama Power Power
Alabama Gas Corp. Gas and gas generator
Bell South Long distance, Internet, and
club service
The Debtor is highly computerized and extremely reliant on
electrical services for its continued operation. In addition to
back office operations including record keeping and accounting,
the Debtor uses computers to provide critical services and
processing for delivering services to various insurance
subsidiaries and VIG. Moreover, the Debtor conducts most of its
day-to-day communications and financial reporting via electronic
mail. Thus, the Debtor is also dependent on Internet and
telephone service to maintain its ability to send and receive
electronic communications and records.
"Any disruption in either telephone or electric service could
seriously hamper the Debtor's ability to conduct its business and
communicate with vendors and other critical third parties, and
could cause the loss of important computerized records and
information," C. Edward Dobbs, Esq., at Parker, Hudson, Rainer &
Dobbs, LLP, in Atlanta, Georgia, tells the Court.
Section 366 of the Bankruptcy Code protects a debtor against
termination of its utility service upon the commencement of its
Chapter 11 case, and simultaneously requires the debtor to
furnish utility companies with adequate assurance of payment for
postpetition utility service within 20 days from the Petition
Date.
According to Mr. Dobbs, prior to the Petition Date, the Debtor
generally was current and timely with respect to its invoices for
Utility Services. Any amounts the Debtor owes each Utility
Company for prepetition services are reflected in the schedules
of liabilities to be filed by the Debtor.
J. Gordon Gaines asserts that the Utility Companies are
adequately assured of future payment because:
(a) the Debtor should have sufficient liquidity to pay
postpetition utility invoices from the proceeds of its
business operations; and
(b) of the Debtor's provision of additional deposits with each
Utility Company in an amount equal to the average invoice
amount for the six months immediately preceding the
Petition Date, adjusted to account for the decrease in the
Debtor's demand for Utility Services as a result of the
scaling back of its operations since its bankruptcy
filing.
In the event a Utility Company asks for additional assurance, the
Debtor proposes to implement these procedures:
(a) Any Utility Company seeking adequate assurance from the
Debtor in the form of a deposit or other security must
make a request in writing, setting forth the location for
which utility services were provided. The Request must be
received by the Debtor's counsel no later than 20 days
after the Court approves the Utility Motion:
Parker, Hudson, Rainer & Dobbs, LLP
1500 Marquis Two Tower
285 Peachtree Center Avenue, N.E.
Atlanta, GA 30303
Attention: Rufus T. Dorsey, IV, Esq.
(b) Upon timely receipt of the Request, the Debtor will have
60 days to file a Motion for Determination of Adequate
Assurance of Payment, and will seek a hearing on that
motion within 20 days after the filing of the
Determination Motion, unless another hearing date is
agreed to by the parties or ordered by the Court.
(c) Any Request received by the Debtor after the Request
Deadline, or that is otherwise defective, will be deemed
as untimely and invalid, and that Utility Company will be
deemed adequately assured of payment by the terms of the
Order granting the Utility Motion.
(d) If a Determination Hearing is scheduled, the utility
provider will be deemed adequately assured of payment
until an Order is entered in connection with that
Determination Hearing.
About Vesta Insurance
Headquartered in Birmingham, Alabama, Vesta Insurance Group, Inc.
(Other OTC: VTAI.PK) -- http://www.vesta.com/-- is a holding
company for a group of insurance companies that primarily offer
property insurance in targeted states.
Wyatt R. Haskell, Luther S. Pate, UV, and Costa Brava Partnership
III, L.P., filed an involuntary chapter 7 petition against the
Company on July 18, 2006 (Bankr. N.D. Ala. Case No. 06-02517).
The case was converted to a voluntary chapter 11 case on Aug. 8,
2006 (Bankr. N.D. Ala. Case No. 06-02517). Eric W. Anderson,
Esq., at Parker Hudson Rainer & Dobbs, LLP, represents the Debtor.
R. Scott Williams, Esq., at Haskell Slaughter Young & Rediker,
LLC, represents the petitioning creditors. In its schedules of
assets and liabilities, Vesta listed $14,919,938 in total assets
and $214,278,847 in total liabilities.
J. Gordon Gaines, Inc., is a Vesta Insurance-owned unit that
manages the company's numerous insurance subsidiaries and employs
the headquarters workers. The Company filed for chapter 11
protection on Aug. 7, 2006 (Bankr. N.D. Ala. Case No. 06-02808).
Eric W. Anderson, Esq., at Parker Hudson Rainer & Dobbs, LLP,
represent the Debtor in its restructuring efforts. In its
schedules of assets and liabilities, Gaines listed $19,818,094 in
total assets and $16,046,237 in total liabilities.
On Aug. 1, 2006, the District Court of Travis County, Texas
entered the Order appointing the Texas Commissioner of Insurance
as Liquidator of Vesta Insurance's Texas-domiciled subsidiaries:
Vesta Fire Insurance Corporation; The Shelby Insurance Company;
Shelby Casualty Insurance Corporation; Texas Select Lloyds
Insurance Company; and Select Insurance Services, Inc. (Vesta
Bankruptcy News, Issue No. 3; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
VESTA INSURANCE: Court Sets Dec. 11 as General Claims Bar Date
--------------------------------------------------------------
The Honorable Thomas B. Bennett of the U.S. Bankruptcy Court for
the Northern District of Alabama set Dec. 11, 2006, as the
deadline for all creditors owed money by Vesta Insurance Group,
Inc., and J. Gordon Gaines, Inc., on account of prepetition claims
to file their proofs of claim.
Creditors must file written proofs of claim, and those forms must
be delivered to:
Clerk of the Bankruptcy Court
Northern District of Alabama, Southern Division
1800 5th Avenue North, Room 120
Birmingham, AL 35203
For governmental units, the Claims Bar Date is Feb. 5, 2007.
About Vesta Insurance
Headquartered in Birmingham, Alabama, Vesta Insurance Group, Inc.
(Other OTC: VTAI.PK) -- http://www.vesta.com/-- is a holding
company for a group of insurance companies that primarily offer
property insurance in targeted states.
Wyatt R. Haskell, Luther S. Pate, UV, and Costa Brava Partnership
III, L.P., filed an involuntary chapter 7 petition against the
Company on July 18, 2006 (Bankr. N.D. Ala. Case No. 06-02517).
The case was converted to a voluntary chapter 11 case on Aug. 8,
2006 (Bankr. N.D. Ala. Case No. 06-02517). Eric W. Anderson,
Esq., at Parker Hudson Rainer & Dobbs, LLP, represents the Debtor.
R. Scott Williams, Esq., at Haskell Slaughter Young & Rediker,
LLC, represents the petitioning creditors. In its schedules of
assets and liabilities, Vesta listed $14,919,938 in total assets
and $214,278,847 in total liabilities.
J. Gordon Gaines, Inc., is a Vesta Insurance-owned unit that
manages the company's numerous insurance subsidiaries and employs
the headquarters workers. The Company filed for chapter 11
protection on Aug. 7, 2006 (Bankr. N.D. Ala. Case No. 06-02808).
Eric W. Anderson, Esq., at Parker Hudson Rainer & Dobbs, LLP,
represent the Debtor in its restructuring efforts. In its
schedules of assets and liabilities, Gaines listed $19,818,094 in
total assets and $16,046,237 in total liabilities.
On Aug. 1, 2006, the District Court of Travis County, Texas
entered the Order appointing the Texas Commissioner of Insurance
as Liquidator of Vesta Insurance's Texas-domiciled subsidiaries:
Vesta Fire Insurance Corporation; The Shelby Insurance Company;
Shelby Casualty Insurance Corporation; Texas Select Lloyds
Insurance Company; and Select Insurance Services, Inc. (Vesta
Bankruptcy News, Issue No. 4; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
WASHINGTON MUTUAL: Fitch Lifts Class II-B-5 Certs.' Rating to BB
----------------------------------------------------------------
Fitch Ratings took rating actions on these Washington Mutual
residential mortgage-backed certificates:
Washington Mutual Mortgage pass-through certificates,
series 2002-MS1:
-- Class A affirmed at 'AAA'
-- Class C-B-1 affirmed at 'AAA'
-- Class C-B-2 affirmed at 'AAA'
-- Class C-B-3 affirmed at 'AAA'
-- Class C-B-4 upgraded to 'AAA' from 'AA'
-- Class C-B-5 upgraded to 'A+' from 'A'
WAMU, Mortgage Pass-Through Certificates, Series 2003-S5
Pool 1 & 3:
-- Class I-A, III-A affirmed at 'AAA'
WAMU, Mortgage Pass-Through Certificates, Series 2003-S5 Pool 2:
-- Class II-A affirmed at 'AAA'
-- Class II-B-2 upgraded to 'A+' from 'A-'
-- Class II-B-5 upgraded to 'BB' from 'B'
The affirmations, affecting approximately $439.8 million of the
outstanding certificates, are due to credit enhancement consistent
with future loss expectations. The upgrades, affecting
approximately $3.5 million of the outstanding certificates, are
being taken as a result of low delinquencies and losses, as well
as increased credit support levels.
The credit enhancement for the upgraded classes as of July 25,
2006 distribution date increased as much as 2 times the original
credit enhancement percentage.
The collateral for the above WAMU and WAMMS deals primarily
consists of 15- to 30-year fixed-rate mortgages secured by first
liens on one- to four-family residential properties. All of the
deals are master serviced by Washington Mutual Mortgage Securities
Corp., which is rated 'RMS2+' by Fitch.
The pool factors (i.e., current mortgage loans outstanding as a
percentage of the initial pool) for these deals are 5% (WAMU 2002-
MS1) 49% (WAMU 2003-S5 Pool 1 & 3) and 50% (WAMU 2003-S5 Pool 2).
WERNER LADDER: Seeks Court's OK on Rejection of Equipment Leases
----------------------------------------------------------------
Werner Holding Co. (DE), Inc., aka Werner Ladder Company, and its
debtor-affiliates, asks authority from the U.S. Bankruptcy Court
for the District of Delaware to reject three equipment leases,
effective as of July 13, 2006.
According to Robert S. Brady, Esq., at Young, Conaway, Stargatt &
Taylor, LLP in Wilmington, Delaware, the equipment leases, which
have a lease term of 60 months, are:
Non-Debtor Party Monthly Lease Lease Description
---------------- ------------- -----------------
International Vending $732 Supply Vending Agreement
Management Inc. between International
Vending and Werner Co.
dated April 4, 2003
Citicorp Dealer $755 Master Equipment Lease
Finance Sub-Agreement between
Citicorp and Werner Co.
dated Aug. 14, 2001
Citicorp Dealer $674 Master Equipment Lease
Finance Sub-Agreement between
Citicorp and Werner Co.
dated Sept. 12, 2001
Mr. Brady relates that the Debtors do not currently utilize the
leased equipment, they have no current or future need for the
equipment and they will realize no benefit from the equipment
leases by delaying their rejection.
Moreover, any delay in rejecting the equipment leases will cause
the Debtors to continue to accrue additional and potentially
administrative obligations and they believe the lease have no
more market value, Mr. Brady asserts.
About Werner Ladder
Headquartered in Greenville, Pennsylvania, Werner Co. --
http://www.wernerladder.com/-- manufactures and distributes
ladders, climbing equipment and ladder accessories. The company
and three of its affiliates filed for chapter 11 protection on
June 12, 2006 (Bankr. D. Del. Case No. 06-10578). The firm of
Willkie Farr & Gallagher LLP serves as the Debtors' counsel.
Kara Hammond Coyle, Esq., Matthew Barry Lunn, Esq., and Robert S.
Brady, Esq., Young, Conaway, Stargatt & Taylor, LLP, represents
the Debtors as its co-counsel. The Debtors have retained
Rothschild Inc. as their financial advisor.
At March 31, 2006, the Debtors reported total assets of
$201,042,000 and total debts of $473,447,000. (Werner Ladder
Bankruptcy News, Issue No. 7; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
WERNER LADDER: Wants Complainant's Demand to Lift Stay Denied
-------------------------------------------------------------
Werner Holding Co. (DE), Inc., aka Werner Ladder Company, and its
debtor-affiliates ask the U.S. Bankruptcy Court for the District
of Delaware to deny Erica Stewart's request to lift the automatic
stay.
On July 31, 2003, Ms. Stewart was injured by an extension ladder
manufactured by Werner Co. Ms. Stewart filed a complaint for
strict product liability, negligence, and breach of warranty
against, among others, the Debtors, before the Second Judicial
District Court of the State of Nevada in the County of Washoe in
July 2005.
The case was subsequently removed to federal court and is
presently pending in the United Stated District Court for the
District of Nevada, Case No. CV-N-05-656-LHR-RAM.
According to Kristen Healey Cramer Esq., at Cross & Simon, LLC,
in Wilmington, Delaware, mediation for the Nevada Action has been
scheduled in November 2006 and the trial before a jury is
scheduled to commence in February 2007. When the Debtors filed
for Chapter 11 protection, the Nevada Action was stayed pursuant
to Section 362 of the Bankruptcy Code.
Pursuant to Section 362(d)(1), Ms. Stewart asks the Bankruptcy
Court to modify the automatic stay to enable her:
(1) to proceed with the Nevada Action against the
Debtors through judgment and appeal; and
(2) to collect against any applicable insurance held
by the Debtors for her benefit who has been harmed by
the Debtors' acts.
Ms. Cramer asserts that the Debtors and their estates will not be
prejudiced if the stay is lifted because the Debtors are being
represented by a Nevada counsel in the Nevada Action. Thus, the
Debtors' bankruptcy attorneys and resources will not be diverted
from the Chapter 11 proceedings in the Delaware Bankruptcy Court.
Furthermore, allowing Ms. Stewart to liquidate her claims against
the Debtors in the Nevada Action will not result in her having an
advantage over other creditors because insurance coverage may be
available for her claims.
In contrast, Ms. Stewart, a Nevada resident, will be greatly
prejudiced if she is prevented from litigating her claims or is
forced to litigate her claims in Delaware because the liquidation
of her personal injury claim is barred in the Bankruptcy Court
pursuant to 28 U.S.C. Section 157(b)(5). Moreover, Ms. Stewart
had filed her Complaint in Nevada almost a year ago and further
delay would be prejudicial to her, Ms. Cramer says.
Therefore, allowing the Nevada Action to proceed is the most
expeditious and cost-effective means of liquidating Ms. Stewart's
claims and there is a risk of duplicative litigation if the
Nevada Action against the Debtors is stayed because there are
also other defendants in the Action, Ms. Cramer asserts.
Debtors Object
Rather than introducing evidence or alleging exigencies that
would require the stay to be lifted, Ms. Stewart relies on vague,
unsupported allegations to support her request, according to
Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor, LLP,
in Wilmington, Delaware.
If the Debtors are forced to participate in the Nevada Action on
a going-forward basis, they will need to allocate significant
resources for the proceedings at a time when their attention is
needed elsewhere, Mr. Brady relates. He adds that if the stay
were lifted, other product liability claimants would be
emboldened to pursue a similar action that could harm the
Debtors' restructuring efforts.
Mr. Brady also notes that bankruptcy courts have denied motions
for relief from the automatic stay even when no assets of the
estate are at risk, including instances when the movants have
agreed to pursue the debtors' insurers and their resources
exclusively.
Moreover, the Debtors, according to Mr. Brady have a significant
self-insured retention that has recently become $5,000,000. In
Ms. Stewart's case, the first $1,000,000 is self-insured, which
means granting relief from the stay will be a financial burden on
the Debtors.
Mr. Brady further notes that Ms. Stewart waited two years after
her alleged injury before filing her suit and a possible trial
date for the Nevada Action is still months away. Ms. Stewart
cannot show any evidence to prove that the automatic stay should
be lifted now in order to prevent her from being prejudiced by a
delay, Mr. Brady contends.
Moreover, Mr. Brady points out that that Ms. Stewart has not
informed the Debtors or the Court the pleadings filed in the
Nevada Action and the basis they will demonstrate probability of
success. The only pleadings that Ms. Stewart presented as
evidence is the complaint and notice of removal, which are not
enough to show the probability of success.
About Werner Ladder
Headquartered in Greenville, Pennsylvania, Werner Co. --
http://www.wernerladder.com/-- manufactures and distributes
ladders, climbing equipment and ladder accessories. The company
and three of its affiliates filed for chapter 11 protection on
June 12, 2006 (Bankr. D. Del. Case No. 06-10578). The firm of
Willkie Farr & Gallagher LLP serves as the Debtors' counsel.
Kara Hammond Coyle, Esq., Matthew Barry Lunn, Esq., and Robert S.
Brady, Esq., Young, Conaway, Stargatt & Taylor, LLP, represents
the Debtors as its co-counsel. The Debtors have retained
Rothschild Inc. as their financial advisor.
At March 31, 2006, the Debtors reported total assets of
$201,042,000 and total debts of $473,447,000. (Werner Ladder
Bankruptcy News, Issue No. 4; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
WINN-DIXIE: Shareholders Want Plan Modified to Receive New Stock
----------------------------------------------------------------
In a letter filed with the U.S. Bankruptcy Court for the Middle
District of Florida on Aug. 24, 2006, Frances A. Rogers asks Judge
Jerry A. Funk to rule that Winn-Dixie Stores, Inc., and its
debtor-affiliates' Joint Plan of Reorganization be modified to
give consideration to the company's current shareholders.
Similarly, Jose C. Hernandez, William and Geraldine Parker, and
Ronald and Carlotta Walsingham object to the cancellation of
their shares of common stock under the Plan. The Shareholders
implore the Court that they will be given shares of the new
company stock in exchange for the shares they currently own.
Headquartered in Jacksonville, Florida, Winn-Dixie Stores, Inc.
-- http://www.winn-dixie.com/-- is one of the nation's largest
food retailers. The Company operates 527 stores in Florida,
Alabama, Louisiana, Georgia, and Mississippi. The Company,
along with 23 of its U.S. subsidiaries, filed for chapter 11
protection on Feb. 21, 2005 (Bankr. S.D.N.Y. Case No. 05-11063,
transferred Apr. 14, 2005, to Bankr. M.D. Fla. Case Nos.
05-03817 through 05-03840). D.J. Baker, Esq., at Skadden
Arps Slate Meagher & Flom LLP, and Sarah Robinson Borders,
Esq., and Brian C. Walsh, Esq., at King & Spalding LLP,
represent the Debtors in their restructuring efforts.
Paul P. Huffard at The Blackstone Group, LP, gives
financial advisory services to the Debtors. Dennis F. Dunne,
Esq., at Milbank, Tweed, Hadley & McCloy, LLP, and John B.
Macdonald, Esq., at Akerman Senterfitt give legal advice to the
Official Committee of Unsecured Creditors. Houlihan Lokey &
Zukin Capital gives financial advisory services to the
Committee. When the Debtors filed for protection from their
creditors, they listed $2,235,557,000 in total assets and
$1,870,785,000 in total debts. (Winn-Dixie Bankruptcy News,
Issue No. 51; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
WINN-DIXIE: Judge Funk Issues Protective Order on E&A Discovery
---------------------------------------------------------------
The Honorable Jerry A. Funk of the U.S. Bankruptcy Court for the
Middle District of Florida grants the Official Committee of
Unsecured Creditors' request to enter a protective order in
connection with certain documentation requested by E&A Financing
II LP, E&A Southeast LP, E&A Acquisition Two LP, Shields Plaza
Inc., Woodberry Plaza (E&A) LLC, Villa Rica Retail Properties LLC,
West Ridge LLC, and Bank of America, as trustee of Betty Holland.
Judge Funk instructs the Committee to affix to each page of the
documents a "confidential" legend.
Judge Funk reminds the E&A Companies that they can only use the
information solely for the purpose of contested matters and
adversary proceedings in the Chapter 11 cases and they are
prohibited from disclosing the information to any third party.
Each party will remain bound by the terms of the Court order
until the Plan is confirmed or the Chapter 11 cases are converted
to Chapter 7 of the Bankruptcy Code, whichever occurs first.
Upon the termination date, the E&A Companies will return all
confidential information to the Creditors Committee or certify in
writing that all documents containing confidential information
have been destroyed.
The E&A Companies filed objections to the Debtors' Disclosure
Statement, asserting that it did not provide adequate information
regarding the deemed substantive consolidation proposed in the
Debtors' Joint Plan of Reorganization.
Subsequent to the Disclosure Statement Hearing, the E&A Companies
have requested the Creditors Committee for certain documentation.
John B. Macdonald, Esq., at Akerman Senterfitt, in Jacksonville,
Florida, says that the Creditors Committee desires to provide the
E&A Companies certain responsive confidential information upon
terms and conditions that will protect its work product and
privileges.
Headquartered in Jacksonville, Florida, Winn-Dixie Stores, Inc.
-- http://www.winn-dixie.com/-- is one of the nation's largest
food retailers. The Company operates 527 stores in Florida,
Alabama, Louisiana, Georgia, and Mississippi. The Company,
along with 23 of its U.S. subsidiaries, filed for chapter 11
protection on Feb. 21, 2005 (Bankr. S.D.N.Y. Case No. 05-11063,
transferred Apr. 14, 2005, to Bankr. M.D. Fla. Case Nos.
05-03817 through 05-03840). D.J. Baker, Esq., at Skadden
Arps Slate Meagher & Flom LLP, and Sarah Robinson Borders,
Esq., and Brian C. Walsh, Esq., at King & Spalding LLP,
represent the Debtors in their restructuring efforts.
Paul P. Huffard at The Blackstone Group, LP, gives
financial advisory services to the Debtors. Dennis F. Dunne,
Esq., at Milbank, Tweed, Hadley & McCloy, LLP, and John B.
Macdonald, Esq., at Akerman Senterfitt give legal advice to the
Official Committee of Unsecured Creditors. Houlihan Lokey &
Zukin Capital gives financial advisory services to the
Committee. When the Debtors filed for protection from their
creditors, they listed $2,235,557,000 in total assets and
$1,870,785,000 in total debts. (Winn-Dixie Bankruptcy News,
Issue No. 51; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
YUKOS OIL: Awaits Appellate Court Ruling on Bankruptcy Appeal
-------------------------------------------------------------
The Moscow Court of Appeals will convene a hearing on Sept. 19 to
consider Yukos Oil Co.'s request against a ruling on its
bankruptcy, RIA Novosti reports.
The Moscow Arbitration Court had previously rejected the oil
firm's appeal against an Aug. 1 bankruptcy ruling, upholding a
creditors' decision to liquidate the company.
Creditors voted on July 25 to liquidate what was once Russia's
biggest oil firm rejecting a management rescue plan that valued
the company's assets at about $30 billion. The vote came after
bankruptcy manager Eduard Rebgun said Yukos couldn't pay its debts
in the time allotted by law. Subsequently, the court declared the
oil firm bankrupt on Aug. 1 after three years of litigation over
back taxes.
The company is facing up to $16.6 billion in claims filed by
more than 20 creditors including, among others:
Yuganskneftegas $4.07 billion
Federal Tax Service $11.6 billion
OAO Rosneft Oil Co. $482 million
The Prosecutor General's Office launched a probe on Aug. 8 into
alleged fraud during the oil group's bankruptcy procedure.
Russian prosecutors have accused former Yukos officials of
embezzling money by securing a $4.5 billion loan from Yukos
Capital SARL, a Luxembourg-based unit and major creditor for
Yukos, through legal entities affiliated with the company.
Investigators alleged that the ex-Yukos officials masterminded a
plan to sell crude oil through trading companies Fargoil and
Ratibor under their control, acting both as fictitious owners
and buyers, RIA Novosti relates.
According to the Russian news agency, Mr. Rebgun agreed with
investigators that Yukos Capital had offered Yukos its own
assets. While Yukos was in external administration, Yukos
Capital filed a motion to participate in the first creditors'
meeting and filed claims against Yukos, which the court
subsequently rejected.
About Yukos
Headquartered in Moscow, Yukos Oil -- http://yukos.com/-- is an
open joint stock company existing under the laws of the Russian
Federation. Yukos is involved in energy industry substantially
through its ownership of its various subsidiaries, which own or
are otherwise entitled to enjoy certain rights to oil and gas
production, refining and marketing assets.
The Company filed for Chapter 11 protection Dec. 14, 2004
(Bankr. S.D. Tex. Case No. 04-47742), but the case was dismissed
on Feb. 24, 2005, by the Hon. Letitia Z. Clark. A few days
later, the Government sold its main production unit Yugansk, to
a little-known firm Baikalfinansgroup for $9.35 billion, as
payment for $27.5 billion in tax arrears for 2000- 2003.
Yugansk eventually was bought by state-owned Rosneft, which is
now claiming more than $12 billion from Yukos.
On March 10, a 14-bank consortium led by Societe Generale filed
a bankruptcy suit in the Moscow Arbitration Court in an attempt
to recover the remainder of a $1 billion debt under
outstanding loan agreements. The banks, however, sold the claim
to Rosneft, prompting the Court to replace them with the state-
owned oil company as plaintiff.
On April 13, court-appointed external manager Eduard Rebgun
filed a chapter 15 petition in the U.S. Bankruptcy Court for the
Southern District of New York (Bankr. S.D.N.Y. Case No.
06-0775), in an attempt to halt the sale of Yukos' 53.7% ownership
interest in Lithuanian AB Mazeikiu Nafta.
On May 26, Yukos signed a $1.49 billion Share Sale and
Purchase Agreement with PKN Orlen S.A., Poland's largest oil
refiner, for its Mazeikiu ownership stake. The move was made a
day after the Manhattan Court lifted an order barring Yukos from
selling its controlling stake in the Lithuanian oil refinery.
* Upcoming Meetings, Conferences and Seminars
---------------------------------------------
September 7, 2006
TURNAROUND MANAGEMENT ASSOCIATION
Business Mixer
TBA, Seattle, Washington
Contact: 503-223-6222 or http://www.turnaround.org/
September 7-8, 2006
EUROMONEY
Leveraged Finance
Hotel Rey Juan Carlos I, Barcelona, Spain
Contact: http://www.euromoneyplc.com/
September 7-8, 2006
TURNAROUND MANAGEMENT ASSOCIATION
Saratoga Regional Conference
Gideon Putnam Hotel, Saratoga Springs, New York
Contact: http://www.turnaround.org/
September 7-8, 2006
AMERICAN BANKRUPTCY INSTITUTE
Complex Financial Restructuring Program
Wynn Las Vegas, Las Vegas, NV
Contact: 1-703-739-0800; http://www.abiworld.org/
September 7-9, 2006
AMERICAN BANKRUPTCY INSTITUTE
Southwest Bankruptcy Conference
Wynn Las Vegas, Las Vegas, Nevada
Contact: 1-703-739-0800; http://www.abiworld.org/
September 8-9, 2006
AMERICAN BANKRUPTCY INSTITUTE
International Insolvency Symposium
London, England
Contact: http://www.turnaround.org/
September 9, 2006
TURNAROUND MANAGEMENT ASSOCIATION
ALS Walk 4 Life
Montrose Harbor, Chicago, IL
Contact: 815-469-2935 or http://www.turnaround.org/
September 11, 2006
AMERICAN BANKRUPTCY INSTITUTE / NEW YORK INSTITUTE OF CREDIT
Golf Outing
Montammy Golf Club, Alpine, NJ
Contact: http://www.abiworld.org/
September 12, 2006
TURNAROUND MANAGEMENT ASSOCIATION
ACG/TMA Joint Movie - Enron: The Smartest Guys in the Room
TBD, AZ
Contact: 623-581-3597 or http://www.turnaround.org/
September 13, 2006
TURNAROUND MANAGEMENT ASSOCIATION
Breakfast Meeting
Marriott Tyson's Corner, Vienna, Virginia
Contact: 703-912-3309 or http://www.turnaround.org/
September 13, 2006
TURNAROUND MANAGEMENT ASSOCIATION
Networking Breakfast
TBA, Secaucus, New Jersey
Contact: 908-575-7333 or http://www.turnaround.org/
September 13, 2006
TURNAROUND MANAGEMENT ASSOCIATION
LI Turnaround Formal Event
Long Island, New York
Contact: http://www.turnaround.org/
September 13, 2006
TURNAROUND MANAGEMENT ASSOCIATION
Networking Function
Sydney, Australia
Contact: 0438 653 179 or http://www.turnaround.org/
September 13, 2006
TURNAROUND MANAGEMENT ASSOCIATION
Formal Event - Major Speaker to be Announced
Long Island, New York
Contact: 631-251-6296 or http://www.turnaround.org/
September 13-15, 2006
TURNAROUND MANAGEMENT ASSOCIATION
Texas Regional Conference
Hyatt Regency Resort & Spa
Lost Pines, TX
Contact: 870-760-7116 or http://www.turnaround.org/
September 14, 2006
ASSOCIATION OF INSOLVENCY & RESTRUCTURING ADVISORS
Advanced Restructuring and Plan of Reorganization
Park Central, New York, NY
Contact: http://www.airacira.org/
September 14, 2006
TURNAROUND MANAGEMENT ASSOCIATION
Kick-Off Reception
Westin Buckhead, Atlanta, GA
Contact: 678-795-8103 or http://www.turnaround.org/
September 15, 2006
TURNAROUND MANAGEMENT ASSOCIATION
BOK Review - Management
Gardner Carton & Douglas, Chicago, IL
Contact: 815-469-2935 or http://www.turnaround.org/
September 17-24, 2006
NATIONAL ASSOCIATION OF BANKRUPTCY TRUSTEES
Optional Alaska Cruise
Seattle, Washington
Contact: 800-929-3598 or http://www.nabt.com/
September 19-20, 2006
STRATEGIC RESEARCH INSTITUTE
2nd Annual Euro Distressed Debt Summit
Le Meridien Parkhotel, Frankfurt, Germany
Contact: http://www.srinstitute.com/
September 20, 2006
TURNAROUND MANAGEMENT ASSOCIATION
South Florida Dinner
Bankers Club, Miami, Florida
Contact: 561-882-1331 or http://www.turnaround.org/
September 21, 2006
TURNAROUND MANAGEMENT ASSOCIATION
Young Professionals Group - "Conversations in Networking"
Dave & Buster's, Philadelphia, PA
Contact: 215-657-5551 or http://www.turnaround.org/
September 21, 2006
TURNAROUND MANAGEMENT ASSOCIATION
Restructuring Workshop With US
Bankruptcy Judges Hale, Nelms and Lynn
Belo Mansion - The Pavilion, Dallas, TX
Contact: http://www.turnaround.org/
September 24, 2006
TURNAROUND MANAGEMENT ASSOCIATION
Restructuring the Troubled High Tech Company
Arizona
Contact: http://www.turnaround.org/
September 25, 2006
TURNAROUND MANAGEMENT ASSOCIATION
10th Annual Turnaround Tee-off Golf Tournament & Fundraiser
Green Valley Country Club, Lafayette Hill, PA
Contact: 215-657-5551 or http://www.turnaround.org/
September 25, 2006
TURNAROUND MANAGEMENT ASSOCIATION
Carolinas Membership Luncheon featuring a presentation by
James Porter of Mesirow Financial
City Club, Charlotte, NC
Contact: 704-319-2288 or http://www.turnaround.org/
September 26, 2006
TURNAROUND MANAGEMENT ASSOCIATION
Luncheon
Centre Club, Tampa, Florida
Contact: 561-882-1331 or http://www.turnaround.org/
September 27, 2006
BEARD AUDIO CONFERENCES
Year One of BAPCPA: Lessons Learned and Outlook
A Look at the Business Provisions One Year Later
Contact: 240-629-3300
Or http://www.beardaudioconferences.com/
September 27, 2006
TURNAROUND MANAGEMENT ASSOCIATION
Joint Education Program with NYIC Joint Reception
CFA/RMA/IWIRC
Woodbridge Hilton, Iselin, NJ
Contact: http://www.turnaround.org/
September 26-27, 2006
EUROMONEY
Asia Pacific High Yield Debt Summit
JW Marriott Hotel, Hong Kong
Contact: http://www.euromoneyplc.com/
September 27, 2006
TURNAROUND MANAGEMENT ASSOCIATION
7th Annual Cross Border Business Restructuring and
Turnaround Conference
Banff, Alberta
Contact: http://www.turnaround.org/
September 27, 2006
ASSOCIATION OF INSOLVENCY & RESTRUCTURING ADVISORS
New York Luncheon - Pension Panel Program
Harmonie Club, New York, NY
Contact: 541-58-1665 or http://www.airacira.org/
October 3, 2006
TURNAROUND MANAGEMENT ASSOCIATION
Networking Organization of Women Networking Event/
Fundraiser
TBD, Philadelphia, PA
Contact: 215-657-5551 or http://www.turnaround.org/
October 3, 2006
TURNAROUND MANAGEMENT ASSOCIATION
3rd Annual Golf Outing
Fox Chapel Golf Club, Pittsburgh, PA
Contact: 412-644-8794 or http://www.turnaround.org/
October 5, 2006
TURNAROUND MANAGEMENT ASSOCIATION
Commercial Lenders Breakfast
Sydney, Australia
Contact: 0438 653 179 or http://www.turnaround.org/
October 6, 2006
AMERICAN BANKRUPTCY INSTITUTE
Bankruptcy 2006: Views from the Bench
Georgetown University Law Center, Washington, DC
Contact: 1-703-739-0800; http;//www.abiworld.org/
October 10, 2006
TURNAROUND MANAGEMENT ASSOCIATION
Breakfast Meeting
Center Club, Baltimore, Maryland
Contact: 703-912-3309 or http://www.turnaround.org/
October 11, 2006
TURNAROUND MANAGEMENT ASSOCIATION
Professional Development Meeting
Sydney, Australia
Contact: 0438 653 179 or http://www.turnaround.org/
October 12, 2006
TURNAROUND MANAGEMENT ASSOCIATION
UTS Fundamentals of Turnaround Management
Melbourne, Australia
Contact: 0438 653 179 or http://www.turnaround.org/
October 11-14, 2006
TURNAROUND MANAGEMENT ASSOCIATION
2006 Annual Conference
Milleridge Cottage, Long Island, New York
Contact: 312-578-6900; http://www.turnaround.org/
October 12, 2006
TURNAROUND MANAGEMENT ASSOCIATION
UTS Fundamentals of Turnaround Management
Mecure Hotel - Haymarket, Sydney, Australia
Contact: http://www.turnaround.org/
October 16, 2006
AMERICAN BANKRUPTCY INSTITUTE
A Year After BAPCPA
Georgetown University Law Center, Washington, DC
Contact: 1-703-739-0800; http://www.abiworld.org/
October 18-19, 2006
EUROMONEY
2nd Annual Latin America Syndicated Loans Conference
JW Marriott Hotel, Miami, FL
Contact: http://www.euromoneyplc.com/
October 17, 2006
TURNAROUND MANAGEMENT ASSOCIATION
Updates on the New Bankruptcy Law
Kansas City, Missouri
Contact: http://www.turnaround.org/
October 19, 2006
TURNAROUND MANAGEMENT ASSOCIATION
Billards Networking Night - Young Professionals
TBA, New Jersey
Contact: 908-575-7333 or http://www.turnaround.org/
October 26, 2006
TURNAROUND MANAGEMENT ASSOCIATION
Hedge Funds - Expanded Financing Opportunities in Business
Turnarounds
Arizona
Contact: http://www.turnaround.org/
October 26, 2006
TURNAROUND MANAGEMENT ASSOCIATION
Breakfast Speaker Series #3
TBA, Calgary, Alberta
Contact: 403-294-4954 or http://www.turnaround.org/
October 26, 2006
TURNAROUND MANAGEMENT ASSOCIATION
Breakfast Speaker Series #3
TBA, Calgary, Alberta
Contact: 403-294-4954 or http://www.turnaround.org/
October 27, 2006
TURNAROUND MANAGEMENT ASSOCIATION
Breakfast with Coach Dan Reeves
Westin Buckhead, Atlanta, GA
Contact: 678-795-8103 or http://www.turnaround.org/
October 28, 2006
TURNAROUND MANAGEMENT ASSOCIATION
BK/TMA Golf Tournament
Orange Tree Golf Resort, AZ
Contact: 623-581-3597 or http://www.turnaround.org/
October 30-31, 2006
Distressed Debt Summit: Preparing for the Next Default Cycle
Financial Research Associates LLC
Helmsley Hotel, New York, NY
Contact: http://www.frallc.com/
October 31, 2006
TURNAROUND MANAGEMENT ASSOCIATION
Luncheon
Citrus Club, Orlando, Florida
Contact: 561-882-1331 or http://www.turnaround.org/
October 31 - November 1, 2006
INTERNATIONAL WOMEN'S INSOLVENCY & RESTRUCTURING CONFEDERATION
IWIRC Annual Conference
San Francisco, California
Contact: http://www.iwirc.com/
November 1, 2006
TURNAROUND MANAGEMENT ASSOCIATION
Halloween Isn't Over! - Ghosts of turnarounds past who
remind you about what you should have done differently
Portland, Oregon
Contact: http://www.turnaround.org/
November 1-4, 2006
NATIONAL CONFERENCE OF BANKRUPTCY JUDGES
National Conference of Bankruptcy Judges
San Francisco, California
Contact: http://www.ncbj.org/
November 2, 2006
TURNAROUND MANAGEMENT ASSOCIATION
TMA UK Annual Conference
Millennium Gloucester Hotel, London, UK
Contact: http://www.turnaround.org/
November 2-3, 2006
BEARD GROUP & RENAISSANCE AMERICAN CONFERENCES
Third Annual Conference on Physician Agreements & Ventures
Successful Strategies for Medical Transactions and
Investments
The Millennium Knickerbocker Hotel - Chicago
Contact: 903-595-3800; 1-800-726-2524;
http://www.renaissanceamerican.com/
November 7, 2006
TURNAROUND MANAGEMENT ASSOCIATION
Networking Breakfast
Marriott, Bridgewater, New Jersey
Contact: 908-575-7333 or http://www.turnaround.org/
November 7-8, 2006
EUROMONEY
5th Annual Distressed Debt Investment Symposium
Hyatt Regency, London, UK
Contact: http://www.euromoneyplc.com/
November 8, 2006
TURNAROUND MANAGEMENT ASSOCIATION
Breakfast Meeting
Marriott Tyson's Corner, Vienna, Virginia
Contact: 703-912-3309 or http://www.turnaround.org/
November 8, 2006
TURNAROUND MANAGEMENT ASSOCIATION
TMA Australia National Conference
Sydney, Australia
Contact: http://www.turnaround.org/
November 14, 2006
TURNAROUND MANAGEMENT ASSOCIATION
Luncheon Program
St. Louis, Missouri
Contact: 815-469-2935 or http://www.turnaround.org/
November 15, 2006
TURNAROUND MANAGEMENT ASSOCIATION
Joint Reception with NYIC/NYTMA
TBA, New York
Contact: 908-575-7333 or http://www.turnaround.org/
November 15, 2006
LI TMA Formal Event
TMA Australia National Conference
Long Island, New York
Contact: http://www.turnaround.org/
November 15, 2006
TURNAROUND MANAGEMENT ASSOCIATION
South Florida Dinner
Citrus Club, Orlando, Florida
Contact: 561-882-1331 or http://www.turnaround.org/
November 16, 2006
TURNAROUND MANAGEMENT ASSOCIATION
Bankruptcy Judges Panel
Duquesne Club, Pittsburgh, Pennsylvania
Contact: http://www.turnaround.org/
November 16, 2006
TURNAROUND MANAGEMENT ASSOCIATION
Dinner Program
TBA, Seattle, Washington
Contact: 503-223-6222 or http://www.turnaround.org/
November 16-17, 2006
STRATEGIC RESEARCH INSTITUTE
8th Annual West Distressed Debt Investing Forum
Venetian Resort Hotel Casino, Las Vegas, NV
Contact: http://www.srinstitute.com
November 23, 2006
TURNAROUND MANAGEMENT ASSOCIATION
Martini Party
Vancouver, British Columbia
Contact: 403-294-4954 or http://www.turnaround.org/
November 27-28, 2006
BEARD GROUP & RENAISSANCE AMERICAN CONFERENCES
Thirteenth Annual Conference on Distressed Investing
Maximizing Profits in the Distressed Debt Market
The Essex House Hotel - New York
Contact: 903-595-3800; 1-800-726-2524;
http://www.renaissanceamerican.com/
November 28, 2006
TURNAROUND MANAGEMENT ASSOCIATION
Luncheon
Centre Club, Tampa, FL
Contact: 561-882-1331 or http://www.turnaround.org/
November 29, 2006
TURNAROUND MANAGEMENT ASSOCIATION
Special Program
TBA, New Jersey
Contact: 908-575-7333 or http://www.turnaround.org/
November 29, 2006
TURNAROUND MANAGEMENT ASSOCIATION
Turnaround Industry Trends
Jasna Polana, Princeton, NJ
Contact: http://www.turnaround.org/
November 30-December 2, 2006
AMERICAN BANKRUPTCY INSTITUTE
Winter Leadership Conference
Hyatt Regency at Gainey Ranch, Scottsdale, Arizona
Contact: 1-703-739-0800; http://www.abiworld.org/
December 6, 2006
TURNAROUND MANAGEMENT ASSOCIATION
Holiday Dinner
Portland, Oregon
Contact: 503-223-6222 or http://www.turnaround.org/
December 7, 2006
TURNAROUND MANAGEMENT ASSOCIATION
Networking Breakfast
The Newark Club, Newark, New Jersey
Contact: 908-575-7333 or http://www.turnaround.org/
December 13, 2006
TURNAROUND MANAGEMENT ASSOCIATION
LI TMA Holiday Party
TBA, Long Island, New York
Contact: 631-251-6296 or http://www.turnaround.org/
December 13, 2006
TURNAROUND MANAGEMENT ASSOCIATION
Christmas Function
GE Commercial Finance, Sydney, Australia
Contact: 0438 653 179 or http://www.turnaround.org/
December 20, 2006
TURNAROUND MANAGEMENT ASSOCIATION
Holiday Extravaganza - TMA, AVF & CFA
Georgia Aquarium, Atlanta, GA
Contact: 678-795-8103 or http://www.turnaround.org/
January 12, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Annual Lender's Panel Breakfast
Westin Buckhead, Atlanta, GA
Contact: http://www.turnaround.org/
February 8-11, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Certified Turnaround Professional (CTP) Training
NY/NJ
Contact: http://www.turnaround.org/
February 22, 2007
TURNAROUND MANAGEMENT ASSOCIATION
TMA PowerPlay - Atlanta Thrashers
Philips Arena, Atlanta, GA
Contact: 678-795-8103 or http://www.turnaround.org/
February 25-26, 2007
NORTON INSTITUTES
Norton Bankruptcy Litigation Institute
Marriott Park City, UT
Contact: http://www2.nortoninstitutes.org/
February 2007
AMERICAN BANKRUPTCY INSTITUTE
International Insolvency Symposium
San Juan, Puerto Rico
Contact: 1-703-739-0800; http://www.abiworld.org/
March 15, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Martini Madness Cocktail Reception with Geraldine Ferraro
Westin Buckhead, Atlanta, GA
Contact: 678-795-8103 or http://www.turnaround.org/
March 15-18, 2007
NATIONAL ASSOCIATION OF BANKRUTPCY TRUSTEES
NABT Spring Seminar
Ritz-Carlton Buckhead, Atlanta, GA
Contact: http://www.NABT.com/
March 27-31, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Spring Conference
Four Seasons Las Colinas, Dallas, Texas
Contact: http://www.turnaround.org/
March 29-31, 2007
ALI-ABA
Chapter 11 Business Reorganizations
Scottsdale, Arizona
Contact: 1-800-CLE-NEWS; http://www.ali-aba.org/
April 11-15, 2007
AMERICAN BANKRUPTCY INSTITUTE
ABI Annual Spring Meeting
J.W. Marriott, Washington, DC
Contact: 1-703-739-0800; http://www.abiworld.org/
April 20, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Breakfast meeting with Chapter President, Bruce Sim
Westin Buckhead, Atlanta, GA
Contact: 678-795-8103 or http://www.turnaround.org/
June 6-9, 2007
ASSOCIATION OF INSOLVENCY & RESTRUCTURING ADVISORS
23rd Annual Bankruptcy & Restructuring Conference
Westin River North, Chicago, Illinois
Contact: http://www.airacira.org/
June 14-17, 2007
AMERICAN BANKRUPTCY INSTITUTE
Central States Bankruptcy Workshop
Grand Traverse Resort, Traverse City, Michigan
Contact: 1-703-739-0800; http://www.abiworld.org/
June 28 - July 1, 2007
NORTON INSTITUTES
Norton Bankruptcy Litigation Institute
Jackson Lake Lodge, Jackson Hole, WY
Contact: http://www2.nortoninstitutes.org/
July 12-15, 2007
AMERICAN BANKRUPTCY INSTITUTE
Northeast Bankruptcy Conference
Marriott, Newport, RI
Contact: 1-703-739-0800; http://www.abiworld.org/
October 10-13, 2007
NATIONAL CONFERENCE OF BANKRUPTCY JUDGES
National Conference of Bankruptcy Judges
Orlando, Florida
Contact: http://www.ncbj.org/
October 16-19, 2007
TURNAROUND MANAGEMENT ASSOCIATION
TMA Annual Convention
Marriott Copley Place, Boston, Massachusetts
Contact: 312-578-6900; http://www.turnaround.org/
December 6-8, 2007
AMERICAN BANKRUPTCY INSTITUTE
Winter Leadership Conference
Westin Mission Hills Resort, Rancho Mirage, California
Contact: 1-703-739-0800; http://www.abiworld.org/
March 25-29, 2008
TURNAROUND MANAGEMENT ASSOCIATION
TMA Spring Conference
Ritz Carlton Grande Lakes, Orlando, Florida
Contact: http://www.turnaround.org/
September 24-27, 2008
NATIONAL CONFERENCE OF BANKRUPTCY JUDGES
National Conference of Bankruptcy Judges
Scottsdale, Arizona
Contact: http://www.ncbj.org/
October 28-31, 2008
TURNAROUND MANAGEMENT ASSOCIATION
TMA Annual Convention
Marriott Copley Place, Boston, Massachusetts
Contact: 312-578-6900; http://www.turnaround.org/
October 5-9, 2009
TURNAROUND MANAGEMENT ASSOCIATION
TMA Annual Convention
Marriott Desert Ridge, Phoenix, Arizona
Contact: 312-578-6900; http://www.turnaround.org/
2009 (TBA)
NATIONAL CONFERENCE OF BANKRUPTCY JUDGES
National Conference of Bankruptcy Judges
Las Vegas, Nevada
Contact: http://www.ncbj.org/
October 4-8, 2010
TURNAROUND MANAGEMENT ASSOCIATION
TMA Annual Convention
JW Marriott Grande Lakes, Orlando, Florida
Contact: http://www.turnaround.org/
2010 (TBA)
NATIONAL CONFERENCE OF BANKRUPTCY JUDGES
National Conference of Bankruptcy Judges
New Orleans, Louisiana
Contact: http://www.ncbj.org/
BEARD AUDIO CONFERENCES
Coming Changes in Small Business Bankruptcy
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Distressed Real Estate under BAPCPA
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
High-Yield Opportunities in Distressed Investing
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Fundamentals of Corporate Bankruptcy and Restructuring
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Reverse Mergers - the New IPO?
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Dana's Chapter 11 Filing
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Employee Benefits and Executive Compensation
under the New Code
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Validating Distressed Security Portfolios: Year-End Price
Validation and Risk Assessment
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Changing Roles & Responsibilities of Creditors' Committees
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Calpine's Chapter 11 Filing
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Healthcare Bankruptcy Reforms
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Changes to Cross-Border Insolvencies
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
The Emerging Role of Corporate Compliance Panels
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com
BEARD AUDIO CONFERENCES
Privacy Rights, Protections & Pitfalls in Bankruptcy
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com
BEARD AUDIO CONFERENCES
High-Yield Opportunities in Distressed Investing
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com
The Meetings, Conferences and Seminars column appears in the
Troubled Company Reporter each Wednesday. Submissions via e-mail
to conferences@bankrupt.com are encouraged.
*********
Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable. Those sources may not,
however, be complete or accurate. The Monday Bond Pricing table
is compiled on the Friday prior to publication. Prices reported
are not intended to reflect actual trades. Prices for actual
trades are probably different. Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind. It is likely that some entity
affiliated with a TCR editor holds some position in the issuers'
public debt and equity securities about which we report.
Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than $3 per
share in public markets. At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets. A company may establish reserves on its balance sheet for
liabilities that may never materialize. The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.
A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR. Submissions about insolvency-
related conferences are encouraged. Send announcements to
conferences@bankrupt.com/
On Thursdays, the TCR delivers a list of recently filed chapter 11
cases involving less than $1,000,000 in assets and liabilities
delivered to nation's bankruptcy courts. The list includes links
to freely downloadable images of these small-dollar petitions in
Acrobat PDF format.
Each Friday's edition of the TCR includes a review about a book of
interest to troubled company professionals. All titles are
available at your local bookstore or through Amazon.com. Go to
http://www.bankrupt.com/books/to order any title today.
Monthly Operating Reports are summarized in every Saturday edition
of the TCR.
For copies of court documents filed in the District of Delaware,
please contact Vito at Parcels, Inc., at 302-658-9911. For
bankruptcy documents filed in cases pending outside the District
of Delaware, contact Ken Troubh at Nationwide Research &
Consulting at 207/791-2852.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter is a daily newsletter co-published
by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland,
USA. Marie Therese V. Profetana, Robert Max Victor M. Quiblat II,
Shimero R. Jainga, Joel Anthony G. Lopez, Emi Rose S.R. Parcon,
Rizande B. Delos Santos, Cherry A. Soriano-Baaclo, Christian Q.
Salta, Jason A. Nieva, Lucilo M. Pinili, Jr., Tara Marie A. Martin
and Peter A. Chapman, Editors.
Copyright 2006. All rights reserved. ISSN: 1520-9474.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers. Information contained
herein is obtained from sources believed to be reliable, but is
not guaranteed.
The TCR subscription rate is $725 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same firm
for the term of the initial subscription or balance thereof are
$25 each. For subscription information, contact Christopher Beard
at 240/629-3300.
*** End of Transmission ***