/raid1/www/Hosts/bankrupt/TCR_Public/080723.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, July 23, 2008, Vol. 12, No. 174
Headlines
AINSWORTH LUMBER: Reveals Board Composition After Recapitalization
AMERICAN HOME: Court Allows Changes in Kroll Zolfo's Engagement
ARGUS CORPORATION: Receiver May Consent to Cease Trade Order
ARYANA/OLIVE GROVE: Case Summary & 20 Largest Unsecured Creditors
ASARCO LLC: Seeks to Extend Lease Decision Period to January 1
ASARCO LLC: Wants Settlement of Coeur d'Alene Claims Approved
ASARCO LLC: Wants Plan Confirmation Protocol Approved
ASPEN GRAPHICS: Case Summary & 10 Largest Unsecured Creditors
ATHERTON-NEWPORT: Case Summary & 20 Largest Unsecured Creditors
BALLY TECHNOLOGIES: Fitch Lifts Issuer Default Rating to BB-
BEARINGPOINT INC: Receives NYSE Notice on $1 Price Bid Deficiency
BLACK DIAMOND: Has Until November 10 to File Chapter 11 Plan
BROADLANE INC: Moody's Assigns B2 Corporate Family Rating
CMT AMERICA: Gets Initial OK to Access Clothing's $2.8 Mil. Loan
CMT AMERICA: Administar Services Approved as Claims Agent
COINMACH SERVICE: Moody's Junks Ratings on $1.47BB Sale to Babcock
CUSTOM ADVANTAGE: Voluntary Chapter 11 Case Summary
D & D UTILITY: Case Summary & 20 Largest Unsecured Creditors
DIAMOND GLASS: Changes Name to Reflect Belron Purchase Agreement
DRIGGS FARMS: Section 341(a) Meeting Set for July 24
DRIGGS FARMS: Wants to Use Up to $15MM KeyBank Cash Collateral
DRIGGS FARMS: Taps Skekloff Adelsperger as Counsel
DRIGGS FARMS: U.S. Trustee Names 12-Member Creditors Panel
DUNMORE HOMES: Files Supplements to Plan of Liquidation
DUNMORE HOMES: Enters Stipulations Reclassifying $3,285,240 Claims
DUNMORE HOMES: Court Okays Settlement, Agreement with Keybank N.A.
DUNMORE HOMES: Affinity Bank Withdraws $10,860,432 Claim
DYNAMERICA MANUFACTURING: Files Chapter 11 Petition in Delaware
DYNAMERICA MANUFACTURING: Voluntary Chapter 11 Case Summary
EL PASO CHILE: Section 341(a) Meeting Scheduled for August 14
EL PASO CHILE: U.S. Trustee Names 3-Member Creditors Panel
EL PASO CHILE: May Employ Beck & Given as Counsel
EMC MORTGAGE: S&P Cuts Class B Certificates Rating to BB from BBB
ERIK BENHAM: Files Schedules of Assets & Liabilities
FERRO CORP: Extends $200MM Senior Notes Offering Until August 15
FITCH OIL: Voluntary Chapter 11 Case Summary
GARDNER DENVER: S&P's 'BB-' Rating Unmoved by $395MM CompAir Deal
GEMINI AIR: Section 341(a) Meeting Scheduled for July 29
GREEKTOWN CASINO: To Hire 400 Workers for Permanent Casino Hotel
GREEKTOWN CASINO: Court Approves Kurtzman Carson as Claims Agent
GREEKTOWN CASINO: Can Hire Schafer & Weiner as Bankruptcy Counsel
GSRPM MORTGAGE: S&P Lowers Ratings on Six Classes of Certificates
HERITAGE BUILDING: Case Summary & 20 Largest Unsecured Creditors
INTEGRATED HEALTHCARE: Dr. Chaudhuri Provides Additional $10.7MM
INTERPUBLIC GROUP: Fitch Rates $335MM Credit Facility 'BB+'
LAFFERTY HOMES: Files for Bankruptcy Under Chapter 7 in California
LEINER HEALTH: Files Chapter 11 Plan and Disclosure Statement
LINENS N THINGS: Wants to Employ Ernst & Young as Auditors
MAJESTIC POINTE: Case Summary & Six Largest Unsecured Creditors
MAMMOTH CBO: S&P Withdraws Ratings After Full Redemption of Notes
NANDALALL SINGH: Case Summary & 11 Largest Unsecured Creditors
NEWPORT LIQUORS: Voluntary Chapter 11 Case Summary
NEW YORK HOME: Case Summary & 20 Largest Unsecured Creditors
OVERFIELD COUNTRY: Case Summary & Three Largest Unsec. Creditors
PHARMANET DEVELOPMENT: Lenders Agree to Restore $45MM Facility
PHONEX BROADBAND: Case Summary & 20 Largest Unsecured Creditors
PIERRE FOODS: Can Employ Kurtzman Carson as Claims Agent
PLASTECH ENGINEERED: Inks Pact Dismissing Tooling Order Appeal
PLASTECH ENGINEERED: Wants Plan-Filing Period Extended to Sept. 28
PMA CAPITAL: Fitch Affirms 'BB+' Senior Notes and Debts Ratings
PRICE FUNERAL: Case Summary & 16 Largest Unsecured Creditors
REXNORD LLC: S&P's Rating Unmoved by Parent's IPO Registration
SEMGROUP LP: Files for Chapter 11 Reorganization in Delaware
SEMGROUP LP: Case Summary & 30 Largest Unsecured Creditors
SEMGROUP LP: IDR Rating Tumbles to D Due to Bankruptcy Filing
SEMGROUP LP: Sunoco Logistics Says Credit Exposure is Minimal
SEMGROUP LP: Moody's Junk Ratings Affect Rated Debt at Other Units
SIRVA INC: Objects to Timing of Paying OOIDA's $1.25MM Claim
SIRVA INC: Wes Lucas Succeeds Robert Tieken as Chief Executive
TCHOTCHO PINCKNEY: Case Summary & Six Largest Unsecured Creditors
TESORO CORP: S&P Holds 'BB+' Rating and Changes Outlook to Stable
TOUSA INC: Panel Wants to Hire Robins Russel as Litigation Counsel
TROPICANA ENT: Panel Can Hire Epiq as Website Administration Agent
TROPICANA ENT: Court OKs Morris Nichols as Panel's Del. Co-Counsel
TWEETER HOME: Court Extends Plan-Filing Period to September 3
UNI IMAGING: Case Summary & 20 Largest Unsecured Creditors
UNI-MARTS LLC: Blank Rome Approved as Committee's Counsel
WACHOVIA CORP: Posts $8.9 Billion Net Loss; Reduces Dividends
WAVE SYSTEMS: Fails to Meet $50MM Minimum Common Stock Value
WERNER LADDER: Old Ladder Asks Court to Overrule Transfer Request
WHITEHALL JEWELERS: No Right to Consignment Goods, Consignors Say
WHITEHALL JEWELERS: Parties Balk at $80 Mil. DIP Financing Motion
WHITEHALL JEWELERS: FTI Not Disinterested, U.S. Trustee Says
WHITEHALL JEWELERS: Section 341(a) Meeting Slated for August 7
WISE METALS: S&P Holds 'CCC' Credit Rating with Developing Outlook
XM SATELLITE: 9.75% Senior Noteholders Waive Repurchase Obligation
* Allegheny Bankruptcy: Lesson to Healthcare Sector, Moody's Says
* Fitch: Most Student Loan ABS Collateral Have Stable Performance
* Fitch: Weak US Trends Leave Beverage Cos Relying on Int'l Growth
* Fitch: High Office & Retail Volatility Led to High Delinquencies
* Moody's Sees Continuous Fall of Commercial Real Estate Prices
* S&P Says Soaring Oil Prices & Housing Slump Raise Default Risk
* S&P Says US Defaults Increases in First Half of 2008
* S&P Says NA Auto Suppliers Almost Half-Way Through a Tough 2008
* S&P Places Ratings on 200 Classes from 57 CDO Under Neg. Watch
* Becker & Poliakoff Expands; Ryan Pinder Leads New Bahamas Branch
* MorrisAnderson-Chicago Office Welcomes Alpesh Amin as Consultant
* Keith Bishop Joins Allen Matkins' Orange County Unit as Partner
* Upcoming Meetings, Conferences and Seminars
*********
AINSWORTH LUMBER: Reveals Board Composition After Recapitalization
------------------------------------------------------------------
Ainsworth Lumber Co. Ltd. disclosed that pursuant to its
recapitalization, these individuals will be appointed to serve on
the new board of directors of the company upon the effective date
of recapitalization:
-- Robert Chadwick
-- Jay Gurandiano
-- Paul Houston
-- Morley Koffman
-- John Lacey
-- Gordon Lancaster
-- Jonathan I. Mishkin
The recapitalization will become effective pursuant to a Plan of
Arrangement. The board of directors of the company will be
replaced by the new board on the effective date of the
recapitalization, which is expected to occur by July 29, 2008.
Additional information on the new board is available for free at
http://bankrupt.com/misc/ainsworth.pdf
Headquartered in Vancouver, British Columbia, Ainsworth Lumber Co.
Ltd. (TSX: ANS) -- http://www.ainsworth.ca/-- is a manufacturer
of engineered wood products, such as oriented strand board (OSB)
and specialty overlaid plywood. The company owns six OSB
manufacturing facilities, three in Canada, and three in northern
Minnesota.
The company also has a 50% ownership interest in an OSB facility
located in High Level, Alberta. Due to market conditions, the
company is presently operating three OSB facilities in Canada and
one OSB facility in Minnesota.
Ainsworth Lumber Co. Ltd.'s consolidated balance sheet at March
31, 2008, showed C$1.05 billion in total assets and C$1.12 billion
in total liabilities, resulting in a roughly C$75.2 million total
stockholders' deficit.
* * *
As reported by Troubled Company Reporter on July 1, 2008, Moody's
Investors Service assigned 'Caa3' ratings to Ainsworth Lumber Co.
Ltd.'s proposed new senior unsecured debt and upgraded the
company's corporate family rating to 'Caa2' from 'Ca'. The
upgrade reflects the company's announcement of a recapitalization
transaction to convert its existing unsecured notes into equity
and new debt, and the issuance of new debt to enhance liquidity.
Going Concern Doubt
As reported by Troubled Company Reporter on June 18, 2008, the
company believes that there exists reasonable doubt about the
its ability to continue as a going concern because of the its
current liquidity position and forecasted operating cash flows and
capital requirements for the next 12 months.
In addition, the decline in demand for OSB in the U.S. residential
housing market and the significant appreciation of the Canadian
dollar against the U.S. dollar led to negative operating margins.
Under the company's existing long-term and current indebtedness,
over the remainder of 2008 the company must provide for interest
payments of approximately C$62.0 million and principal payments of
C$8.5 million. Under these circumstances, the company has
significant liquidity risk.
AMERICAN HOME: Court Allows Changes in Kroll Zolfo's Engagement
---------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware allowed the
modification of Kroll Zolfo Cooper LLC's engagement solely for the
appointment of Kevin Nystrom as the chief restructuring officer of
American Home Mortgage Investment Corp. to replace Stephen F.
Cooper, and Bret Fernandes as director of restructuring, effective
as of June 30, 2008.
On a special board meeting held on June 5, 2008, the Debtors'
board of directors accepted the resignation of Mr. Cooper as their
chief restructuring officer, effective as of June 30, 2008.
About American Home
Based in Melville, New York, American Home Mortgage Investment
Corp. (NYSE: AHM) -- http://www.americanhm.com/-- is a
mortgage real estate investment trust engaged in the business of
investing in mortgage-backed securities and mortgage loans
resulting from the securitization of residential mortgage loans
originated and serviced by its subsidiaries.
American Home Mortgage and seven affiliates filed for chapter 11
protection on Aug. 6, 2007 (Bankr. D. Del. Case Nos. 07-11047
through 07-11054). James L. Patton, Jr., Esq., Joel A. Waite,
Esq., and Pauline K. Morgan, Esq. at Young, Conaway, Stargatt &
Taylor LLP represent the Debtors. Epiq Bankruptcy Solutions LLC
acts as the Debtors' claims and noticing agent. The Official
Committee of Unsecured Creditors selected Hahn & Hessen LLP as
its counsel. As of March 31, 2007, American Home Mortgage's
balance sheet showed total assets of $20,553,935,000, total
liabilities of $19,330,191,000.
(American Home Bankruptcy News, Issue No. 41; Bankruptcy
Creditors' Service, Inc., Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
ARGUS CORPORATION: Receiver May Consent to Cease Trade Order
------------------------------------------------------------
Argus Corporation Limited, by its receiver and manager, interim
receiver and monitor, RSM Richter Inc., said that the Ontario
Superior Court of Justice (Commercial List) issued an order
authorizing the receiver, on behalf of Argus, to consent to a
cease trade order to be issued by the Ontario Securities
Commission.
The date upon which the Argus CTO will be issued has not yet been
determined.
The Argus CTO will apply to all securities of the company but will
contain carve-outs to permit trades in its securities that are
made:
(i) in connection with the Company's Companies' Creditors
Arrangement Act (Canada) proceedings or receivership
proceedings and as approved by the Court;
(ii) for nominal consideration for the purpose of permitting
a holder to crystallize a tax loss; or
(iii) by or to an entity that qualifies as an "accredited
investor" as that term is defined under applicable
Canadian securities laws.
Provided that with respect to (ii) and (iii) a copy of the Argus
CTO is provided and the seller receives an acknowledgment that the
Argus securities remain subject to the Argus CTO.
The Receiver is to maintain a transfer registry for exempt trades
until Jan. 31, 2010, which is to be funded from the Argus estate
account maintained by the Receiver.
The company has also been advised by the Toronto Stock Exchange
that, provided the Argus CTO is granted, the TSX will initiate a
process that will lead to the delisting of the company's Class A
Preference Shares Series $2.50, Class A Preference Shares Series
$2.60 and Cumulative Class B Preference Shares Series 1962 from
the TSX following the issuance of the Argus CTO.
The Argus CTO is being issued as a result of the company's failure
to:
(i) file audited annual financial statements, and other
financial information for years ended Dec. 31, 2005,
2006, and 2007;
(ii) interim financial statements for the fiscal periods
ended March 31 and June 30, 2008; and
(iii) comply with other regulatory requirements.
The Receiver also announced that in the interests of reducing
costs for the benefit of its stakeholders, it would be
discontinuing the preparation and filing on a bi-weekly basis the
status reports required under the terms of the Management Cease
Trade Order issued on June 1, 2004, by the OSC.
About Argus
Argus Corporation Limited (TSX: AR) based in Toronto, Ontario, is
an investment and holding company founded in 1945 by its President
E. P. Taylor with minority partners Colonel W. Eric Phillips and
Wallace McCutcheon and other investors.
The Ontario Superior Court of Justice on April 25, 2005, issued a
receivership order at the behest of Ravelston Corporation Limited
and Ravelston Management Inc., Argus Corporation Limited, 509643
N.B. Inc., 509644 N.B. Inc., 509645 N.B. Inc., 509646 N.B. Inc.,
and 509647 N.B. Inc. RSM Richter Inc. was appointed as receiver
effective April 20, 2005. At same date, the Court issued a
Companies' Creditors Arrangement Act (Canada) order, which took
effect on April 20, 2005.
The CCAA stay was extended several times. In mid-July, 2008, the
Court further extended the Debtors' CCAA stay to Nov. 30, 2008.
Documents on the CCAA proceeding can be obtained for free at
http://www.rsmrichter.com/Restructuring/Ravelston.aspx
ARYANA/OLIVE GROVE: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------------
Debtor: Aryana/Olive Grove Land Development, LLC
5 E Citrus, Suite 207
Redlands, CA 92373
Bankruptcy Case No.: 08-18926
Chapter 11 Petition Date: July 18, 2008
Court: Central District Of California (Riverside)
Judge: Meredith A. Jury
Debtors' Counsel: Sandford Frey, Esq.
(Sfrey@cmkllp.com)
Creim, Macias, Koenig & Frey LLP
633 W Fifth St., 51st Floor
Los Angeles, CA 90071
Tel: (213) 614-1944
Fax: (213) 614-1961
http://www.cmkllp.com
Estimated Assets: $1 million to $100 million
Estimated Debts: $1 million to $100 million
A list of the Debtor's largest unsecured creditors is available
for free at:
http://bankrupt.com/misc/califcb08-18926.pdf
ASARCO LLC: Seeks to Extend Lease Decision Period to January 1
--------------------------------------------------------------
ASARCO LLC and its debtor-affiliates ask the U.S. Bankruptcy Court
for the Southern District of Texas to further extend the time by
which they must decide on whether to assume or reject unexpired
non-residential real property leases until Jan. 1, 2009.
Judith W. Ross, Esq., at Baker Botts L.L.P., in Dallas, Texas,
says the extension of the lease decision deadline is necessary to
give the Debtors adequate time to evaluate the Leases in
anticipation of a Court-approved exit from bankruptcy.
Ms. Ross relates that the Debtors are in the final stages of
formulating their plan of reorganization, which must be filed by
July 31, 2008. The Debtors, she says, anticipate that
confirmation hearings and their successful exit from bankruptcy
will occur in December 2008.
About ASARCO LLC
Based 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 April 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's affiliates, AR Sacaton LLC, Southern Peru Holdings LLC,
and ASARCO Exploration Company Inc., filed for Chapter 11
protection on Dec. 12, 2006 (Bankr. S.D. Tex. Case No. 06-20774 to
06-20776).
ASARCO and its debtor-affiliates have until Aug. 1, 2008 to file a
plan of reorganization. (ASARCO Bankruptcy News, Issue No. 77;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
ASARCO LLC: Wants Settlement of Coeur d'Alene Claims Approved
-------------------------------------------------------------
ASARCO LLC wants the U.S. Bankruptcy Court for the Southern
District of Texas to approve a settlement agreement it entered
into with the U.S. Environmental Protection Agency, the state of
Idaho, and the Idaho Department of Environmental Quality to
resolve all claims asserted by the Government with respect to
Coeur d' Alene "Box" Site in Idaho.
The agreement provides, among others, that:
(a) the Government, the state of Idaho, and the IDEQ, will
have an allowed general unsecured claim totaling
$10,000,000, which will be placed in a trust fund;
(b) the Government will have an additional separate allowed
general unsecured claim totaling $6,800,000, which funds
will be used to conduct finance response actions at or in
connection with the Site, or to be transferred by EPA to
the EPA Hazardous Substance Superfund;
(c) ASARCO's obligations to perform work pursuant to the 1994
Consent Decree will be fully resolved and ASARCO will
be removed as a party to the Consent Decree, subject to
the approval by the U.S. District Court for the District
of Idaho;
(d) ASARCO agrees to convey real property it owns or controls
within the Site via quit-claim deed, but free any liens or
existing tax obligations and acceptable to the Government
pursuant to Section 3111 of Public Buildings, Property and
Works Code, contemporaneous with the Government's
acceptance of title to ASARCO's real properties within the
Site;
(e) the Government will transfer title to the ASARCO-owned
or controlled real properties within the Site and the
state of Idaho will accept the transfer, for performing
remedial action with the Site, as permanent location for
the disposal of excavated soils as a result of Site-
related Institutional Control program activities;
(f) the parties covenant not to sue or assert claims or causes
of actions against each other with respect to the Site or
the ASARCO-owned or controlled real properties within the
Site; and
(g) ASARCO is entitled to protection from contribution actions
or claims as provided by Section 113(f)(2) of
Comprehensive Environmental Response, Compensation, and
Liability Act, and Sections 9613(f)(2) of the Public
Health and Safety Code for all matters relating to the
Site.
The Settlement is subject to a 30-day public comment period, and
is conditioned on the entry of an order by the Idaho District
Court modifying the 1994 Box Consent Decree.
According to Jack L. Kinzie, Esq., at Baker Botts L.L.P., in
Dallas, Texas, the settlement is a product of the parties'
negotiations stemming from the series of mediation sessions they
participated in October 2007.
The settlement resolves partially Claim Nos. 8375 and 10746 filed
by the Government, and Claim No. 11051 filed by Idaho. Mr.
Kinzie says the settlement eliminates the substantial litigation
risks faced by both sides, and resolves many disputed technical
issues that would have significant impacts on the ultimate value
of any allowed claim.
About ASARCO LLC
Based 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 April 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's affiliates, AR Sacaton LLC, Southern Peru Holdings LLC,
and ASARCO Exploration Company Inc., filed for Chapter 11
protection on Dec. 12, 2006 (Bankr. S.D. Tex. Case No. 06-20774 to
06-20776).
ASARCO and its debtor-affiliates have until Aug. 1, 2008 to file a
plan of reorganization. (ASARCO Bankruptcy News, Issue No. 77;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
ASARCO LLC: Wants Plan Confirmation Protocol Approved
-----------------------------------------------------
ASARCO LLC and its debtor-affiliates propose and ask the U.S.
Bankruptcy Court for the Southern District of Texas to establish
these dates to govern the confirmation process of their plan of
reorganization, which, they say, will be filed by July 31, 2008:
* July 22, 2008 -- Record date for determining whether an
entity is a holder of a claim or interest
for the purposes of (a) receiving notice of
hearings on all disclosure statements and
plans of reorganization; and (b) voting to
accept or reject any reorganization plan;
* Sept. 10, 2008 -- Deadline to file Disclosure Statement
objections;
* Sept. 24, 2008 -- Hearing to consider the approval of any
Disclosure Statement filed on or before
Aug. 27, 2008;
* Nov. 17, 2008 -- Plan Confirmation Hearing.
The Debtors ask that the plan confirmation schedules and protocol
also apply to any disclosure statement or plan filed by Asarco
Incorporated.
The Debtors' reorganization plan will include the proposed sale
of substantially all of their assets to Sterlite Industries
(India) Limited for $2,600,000,000. Proceeds from the sale will
finance the Debtors' plan.
The Court had allowed Asarco Inc., the 100% equity owner of ASARCO
LLC, to file a competing reorganization plan. Asarco Inc. stated
that its plan will be a full-payment plan. Asarco Inc.'s Plan,
according to Bloomberg News, will be financed by a $2,700,000,000
guarantee from American Mining Corporation, and $1,000,000,000
cash ASARCO LLC has on hand.
The Debtors propose to provide copies of any plans and disclosure
statements filed in their Chapter 11 cases to their counsel,
counsel for the Official Committee of Unsecured Creditors for
ASARCO LLC, the Official Committee of the Asbestos Subsidiary
Debtors, the Future Claims Representative, the Examiner, Asarco
Inc. and Americas Mining Corporation, the U.S. Trustee for Region
7, the Securities and Exchange Commission, and any party-in-
interest who requests in writing a copy of the disclosure
statement or plan. The Balloting Agent will also serve notice of
the Disclosure Statement Hearing on each of the Debtors'
creditors, equity security holders and other parties-in-interest
who, as of the Record Date, either (i) has filed a proof of claim
or interest, (ii) is listed in the Debtors' Schedules of Assets
and Liabilities, or (iii) has filed a notice of appearance in the
Chapter 11 Cases requesting service of pleadings.
The Debtors propose to provide notice of the Disclosure Statement
Hearing to bondholders either through known record holders or
through the various indenture trustees. The Indenture Trustees
would then be responsible in forwarding materials to the
bondholders. Jack L. Kinzie, Esq., at Baker Botts, L.L.P., in
Dallas, Texas, explains that numerous individuals or corporations
hold the ASARCO LLC-issued bonds, thus identifying each of them
is difficult and time-consuming.
For tort claimants, the Debtors propose to serve the Disclosure
Statement Hearing Notice on the creditors' attorneys of record,
if known, in lieu of serving the individual creditors. If, to
the best of the Debtors' knowledge, a Tort Claimant is not
represented by legal counsel, the Debtors will serve the notice
directly to the creditor, Mr. Kinzie says.
About ASARCO LLC
Based 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 April 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's affiliates, AR Sacaton LLC, Southern Peru Holdings LLC,
and ASARCO Exploration Company Inc., filed for Chapter 11
protection on Dec. 12, 2006 (Bankr. S.D. Tex. Case No. 06-20774 to
06-20776).
ASARCO and its debtor-affiliates have until Aug. 1, 2008 to file a
plan of reorganization. (ASARCO Bankruptcy News, Issue No. 77;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
ASPEN GRAPHICS: Case Summary & 10 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: Aspen Graphics, Inc.
4795 Oakland Street
Denver, CO 80239
Bankruptcy Case No.: 08-20621
Type of Business: The Debtor offers printing services with its
digital prepress, large and small format
multicolor presses, in-house letterpress
services, complete bindery and vendor &
strategic partner relationships.
See http://www.aspengraphics.net/
Chapter 11 Petition Date: July 21, 2008
Court: District of Colorado (Denver)
Judge: Elizabeth E. Brown
Debtor's Counsel: Stephen C. Nicholls, Esq.
Email: charlene.clark@nichollslaw.com
1850 Race St.
Denver, CO 80206
Tel: (303) 329-9700
http://nichollslaw.com/
Estimated Assets: Less than $50,000
Estimated Debts: $1 million to $10 million
A list of the Debtor's largest unsecured creditors is available
for free at:
http://bankrupt.com/misc/cob08-20621.pdf
ATHERTON-NEWPORT: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Atherton-Newport Fund 126, LLC
23792 Rockfield Blvd., Suite 200
Lake Forest, CA 92630
Bankruptcy Case No.: 08-14143
Chapter 11 Petition Date: July 17, 2008
Court: Central District Of California (Santa Ana)
Judge: Erithe A. Smith
Debtors' Counsel: David W. Meadows, Esq.
(david@davidwmeadowslaw.com)
Law Offices of David W. Meadows
1801 Century Park East, Suite 1250
Los Angeles, CA 90067
Tel: (310) 557-8490
Fax: (310) 557-8493
http://davidwmeadowslaw.com/
Estimated Assets: Less than $50,000
Estimated Debts: $1 million to $10 million
A list of the Debtor's largest unsecured creditors is available
for free at
http://bankrupt.com/misc/califcb08-14143.pdf
BALLY TECHNOLOGIES: Fitch Lifts Issuer Default Rating to BB-
------------------------------------------------------------
Fitch Ratings has upgraded Bally Technologies, Inc.'s Issuer
Default Rating and senior secured bank debt ratings as:
-- IDR to 'BB-' from 'B';
-- Secured bank credit facilities to 'BB+' from 'BB/RR1'.
The secured credit facilities are comprised of a term loan with
$290 million outstanding as of March 31, 2008 and a $75 million
revolver.
The Rating Outlook remains Positive.
The two-notch IDR upgrade and Bally's credit profile continues to
be fueled by the significant improvement in its operating and
financial performance that has been driven by its substantially
improved product pipeline and solid acceptance of the Alpha
operating platform over the past couple of years. Bally's credit
profile continues to improve rapidly since Fitch previously
upgraded its IDR seven months ago, in December 2007.
As of March 31, 2008, Bally's latest twelve month reported
adjusted EBITDA increased to $249 million from $138.5 million as
of the end of its 2007 fiscal year (June 30, 2007). Bally's
leverage ratio according to its credit facility calculation as of
March 31, 2008 was 1.3 times versus a maximum allowable of 3.50x,
while Fitch calculates LTM interest coverage of roughly 8.8x.
Given Bally's current operating momentum, Fitch believes that
credit metrics as of fiscal year-end June 30, 2008 will show
further improvement.
Bally's credit metrics remain strong for the 'BB-' IDR level.
Many company-specific issues that weighed on Bally's IDR while it
was in the 'B' category are now largely resolved or incorporated
into a low 'BB' category risk profile, in Fitch's view. These
include:
-- Execution risk from an operating turnaround. Given the
company's continued market share gains in recent quarters,
Bally has completed a successful operating turnaround.
Still, there are segments that present additional
opportunities for improvement and growth, including video
products, progressives, and international. As a result,
Fitch believes the company's positive operating momentum can
continue in the near term, but believes it is also likely
that the considerable pressure facing casino operators may
dampen the momentum somewhat.
-- Accounting issues. Bally's accounting issues caused financial
restatements and significant delays in financial reporting.
The company's auditors have cited material weaknesses in the
company's internal control over financial reporting with
revenue recognition, inventory valuation, and personnel
resources. Fitch believes Bally has made adequate progress
with remediation activities and will review the auditor's
opinion when the fiscal 2008 year-end financial statements
are filed next month. Bally is now a timely SEC filer.
-- Refinancing risk. The company's $75 million untapped
revolver expires in September 2008 and its $290 million term
loan matures in September 2009. Given the operating and
financial improvement, Fitch believes Bally will not have
difficulty refinancing its bank facility at adequate terms.
-- Pending litigation risk. Fitch remains concerned about the
potential impact of an adverse outcome related to patent
litigation with industry leader, International Game
Technology. Given Bally's operational and financial
improvement and its strong credit metrics for its 'BB-' IDR,
current ratings incorporate the potential for some impact of
an adverse outcome. However, meaningful uncertainty remains
regarding the scope and impact of any resolution.
-- Execution risk with respect to the upcoming server-based
product cycle. The implementation and commercial rollout of
the server-based gaming product cycle has been pushed back
meaningfully, which enables Bally to continue to invest in
product and game development and protect its competitive
position. Due to its larger size, greater financial
resources, and broader product pipeline, Fitch remains
concerned that IGT could strengthen its competitive advantage
in a replacement cycle driven by server-based gaming.
However, Bally's product platform improvement over the past
couple of years, its strength in its systems business, and
recent success with products that offer some server-based
functionality mitigates this risk somewhat. Still, the
economics, timing, and market impact of server-based gaming
have yet to be determined.
The resolution of or additional comfort with the issues above,
combined with continued positive operational and financial
momentum, provides the basis for Fitch's Positive Outlook and the
potential for a further upgrade of the IDR.
Bally's bank facility rating was upgraded to 'BB+' from 'BB/RR1'
due to Fitch's continued view of strong over collateralization of
that debt. In accordance with Fitch's Recovery Rating
methodology, the Recovery Rating was removed because of the IDR
upgrade to 'BB-'. While concepts of Fitch's RR methodology are
considered for all companies, explicit recovery ratings are
assigned only to those companies with an IDR of 'B+' or below. At
the lower IDR levels, Fitch believes there is greater probability
of default so the impact of potential recovery prospects on issue-
specific ratings becomes more meaningful. Therefore, as a
company's IDR improves, there is compression with respect to the
notching from the IDR. As a result, an additional upgrade of the
IDR to 'BB' is unlikely to result in an upgrade to the bank
facility debt.
BEARINGPOINT INC: Receives NYSE Notice on $1 Price Bid Deficiency
-----------------------------------------------------------------
BearingPoint, Inc., received on July 16, 2008, a letter from the
New York Stock Exchange stating that it is not in compliance with
the NYSE listing standard requiring a listed common stock to
maintain a minimum average closing price of $1.00 per share for 30
consecutive trading days.
It is the company's intention to cure this deficiency, and it will
remain in communication with the NYSE throughout the process.
Under the NYSE's rules, the company has six months from the date
of the NYSE notice to cure this deficiency before the NYSE
initiates suspension and delisting procedures. During this
period, the company's common stock will continue to be listed on
the NYSE, subject to ongoing reassessment. The NYSE notification
will not affect the company's business operations, does not change
its SEC reporting requirements and has no effect under any of the
company's credit agreements or various debentures.
About BearingPoint, Inc.
Headquartered in McLean, Virginia, BearingPoint, Inc. (NYSE:BE) –
http://www.bearingpoint.com-- is a provider of management and
technology consulting services to Global 2000 companies and
government organizations in more than 60 countries worldwide. The
company's core services include management consulting, technology
solutions, application services and managed services. In North
America, BearingPoint delivers consulting services through its
Public Services, Commercial Services and Financial Services
industry groups (North American Industry Groups), which provides
industry-specific knowledge and service offerings. Outside of
North America, BearingPoint operates in Europe, the Middle East
and Africa (EMEA); the Asia Pacific region, and Latin America
(including Mexico).
BLACK DIAMOND: Has Until November 10 to File Chapter 11 Plan
------------------------------------------------------------
The Hon. William S. Howard of the United States Bankruptcy
Court for the Eastern District of Kentucky further extended the
exclusive periods of Black Diamond Mining Company LLC and its
debtor-affiliates to:
a) file a Chapter 11 plan until Nov. 10, 2008, and
b) solicit acceptances of that plan until Jan. 9, 2009.
Judge Howard held that the requested extension of time will not
harm the Debtors' creditors or other parties-in-interest. The
extension of time, he noted, will enable the plan process to move
forward within the meaning of Section 1121 of the Bankruptcy Code.
As reported in the Troubled Company Report on July 7, 2008, the
Debtors said that they need more time to overcome certain
challenges and restore value to their businesses. The Debtors
faced several difficulties in their business operations and the
administration of their Chapter 11 cases. "[Our] operations had
been shuttered for two weeks in February 2008, and lacked adequate
cash to continue to operate," the Debtors explained.
On June 26, 2008, CIT Capital USA, Inc., which provided the
Debtors $15 million in financing due Dec. 31, 2008, and the
Official Committee of Unsecured Creditors agreed not to file any
Chapter 11 plan until Aug. 8, 2008.
The Debtors' exclusive period to file a plan expired on July 9,
2008.
About Black Diamond
Headquartered in Pikeville, Kentucky, Black Diamond Mining Co.,
LLC, is a coal-mine operator. The company and seven of its
affiliates filed for Chapter 11 protection on March 4, 2008
(Bankr. E.D. Ky. Lead Case No.08-70109). David M. Cantor, Esq.,
at Seiller Waterman, LLC, represents the Debtors in these cases.
The U.S. Trustee for Region 8 appointed creditors to serve on an
Official Committee of Unsecured Creditors. Foley & Lardner LLP
represents the Committee in these cases.
Prudential Insurance Co. of America and subsidiaries of CIT Group
Inc., C.I.T. Capital U.S.A., Inc. and The C.I.T Group/Commercial
Services Inc., filed involuntary Chapter 11 petitions against FCDC
Coal Inc., Black Diamond Mining Co., Martin Coal Processing Corp.,
Spurlock Energy Corp., Turner Elkhorn Mining Co., Wolverine
Resources, Inc. and Black Diamond Land Co. LLC on Feb. 19, 2008
(Bankr. E.D. Ky. Case Nos. 08-50369 to 08-50372 and 08-70066 to
08-70067). Robert J. Brown, Esq., at Wyatt, Tarrant & Combs,
L.L.P., represent the petitioners. According to the petitioners,
the Debtors' owe them $150 million.
As reported in the Troubled Company Reporter on Feb. 25, 2008, the
petitioning creditors sought the appointment of a Chapter 11
trustee for the Debtors. The petitioners alleged that the
Debtors' controlling equity owner Harold E. Sergent and other
shareholders are "hopelessly conflicted." They insisted that the
company has no money since losing $25 million last year and they
had refused to dole out a single cent until a trustee assumes
control of the company and comes up with an appropriate budget.
The TCR on March 4, 2008, reported that the Court directed the
appointment of a chief restructuring officer -- either Ira Genser
or Steven Cohn from Alvarez & Marsal North America LLC -- for FCDC
Coal Inc. and Black Diamond Mining Co. The Court said the CRO
will "have the same powers as a trustee," which will include
retention and termination of workers, and the investigation of the
Debtors' officers.
BROADLANE INC: Moody's Assigns B2 Corporate Family Rating
---------------------------------------------------------
Moody's Investors Service assigned a B2 Corporate Family Rating to
Broadlane, Inc. Moody's also assigned a Ba3 rating to Broadlane's
proposed senior secured credit facilities, consisting of a $15
million revolver and a $135 million term loan. The rating outlook
is stable. This is the first time Moody's has assigned ratings to
Broadlane.
On June 20, 2008, TowerBrook Capital Partners entered into an
agreement to acquire Broadlane for $375 million, subject to
certain customary transaction adjustments. The transaction,
including estimated fees and expenses, is expected to be funded
with the $135 million senior secured term loan, $67.5 million
unsecured mezzanine notes (not rated by Moody's) and approximately
$188.8 million of equity.
The B2 Corporate Family Rating reflects the company's modest size
with revenue of only $145 million for the 12 months ended March
31, 2008. The company operates in a highly competitive but
growing industry as the fourth largest group purchasing
organization based on market share with the two largest--Novation
and Premier--claiming the largest market share positions. The
company also has significant concentration in its two largest
customers, Tenet Healthcare and Kaiser Permanente. However,
growth from other providers has helped to offset steady revenue
declines from Tenet over the last few years.
The rating is also limited by the considerable increase in
leverage that will result from the transaction. However, Moody's
expects the company to use free cash flow to delever.
Positive rating factors include a unique contracting approach and
high level of provider compliance, which supports better pricing
and higher margins. Broadlane is also expected to have good
liquidity, characterized by cash flow that should be more than
sufficient to fund all working capital needs, capital
expenditures, capitalized software costs and required debt
amortization as well as access to the proposed $15 million
revolver, which will be undrawn at the close of the transaction.
The stable rating outlook reflects our expectation that Broadlane
should be able to maintain solid operating margins and steady free
cash flow levels as it continues to grow its external revenue
base. We anticipate that the company will continue to take a
moderate approach to acquisitions and focus on building out its
differentiated service offerings. Moody's expects the company to
utilize excess cash flow to fund the optional prepayment of debt
and improve key credit metrics.
Ratings are subject to review of final documentation.
These ratings were assigned:
Broadlane, Inc.:
-- $15 million senior secured revolving credit facility due
2013, Ba3 (LGD3, 31%)
-- $135 million senior secured term loan due 2013, Ba3 (LGD3,
31%)
-- Corporate Family Rating, B2
-- Probability of Default Rating, B2
Headquartered in Dallas, Texas, Broadlane delivers supply chain
management and procurement services to thousands of acute care
hospitals, ambulatory care facilities, physician practices and
other healthcare providers in the United States. The company was
initially founded as the in-house supply chain group of Tenet
Healthcare (B3 CFR), which spun out the division to form Broadlane
in 1999.
CMT AMERICA: Gets Initial OK to Access Clothing's $2.8 Mil. Loan
----------------------------------------------------------------
The Hon. Christopher Sontchi of the U.S. Bankruptcy Court for the
District of Delaware authorized CMT America Corp. to obtain, on an
interim basis, up to $1,350,000 in postpetition financing with a
sublimit for letters of credit of $250,000, under a revolving
credit facility from lender Clothing for Modern Times Ltd.,
pursuant to a credit agreement dated July 15, 2008.
Judge Sontchi also authorized the Debtor to use the lender's cash
collateral.
The DIP agreement allows the Debtor to access up to $2,800,000 due
July 31, 2009, in financing on a final basis.
A hearing is set for Aug. 8, 2008, at 12:00 noon, in Courtroom No.
6 to consider final approval of the Debtor's DIP request.
Before the its bankruptcy filing, the Debtor entered into a loan
and security agreement dated May 15, 2006, as amended, with GMAC
Commercial Finance LLC. On July 15, 2008, GMAC Commercial
assigned all of its rights and interest in the prepetition
obligations to Clothing for Modern. At present, Clothing for
Modern owed about $4,077,948 in revolving loan principal
obligations -- including an outstanding stand-by letter of credit
of $250,000 plus interest, fees, costs and expenses -- under
prepetition credit agreement. The prepetition obligations are
secured by a security interest in substantially all of the assets
of the Debtor.
CMT America Holdings Inc., parent of the Debtor, guaranteed all of
the Debtor's obligations under the prepetition credit agreement.
CMT America Holdings is the Debtor's parent company. CMT America
Holdings acquired a significant equity stake in the Debtor in
2006.
Furthermore, CMT America Holdings provided $8,000,000 in term loan
due March 1, 2009, under a security agreement dated July 1, 2007,
to the Debtor that is secured by an interest in the Debtor's
personal property, but subordinate to the prepetition credit
agreement. As of July 13, 2008, approximately $4,077,948 remain
outstanding under the prepetition agreement.
The proceeds of the loan will be used solely for (i) working
capital and general corporate purposes; (ii) payments of costs of
administration of the case; and (iii) payment of prepetition
expenses.
The DIP facility is subject to a $630,000 carve-out for payment of
fees and expenses incurred by professional advisors employ by the
Debtor or the committee.
The DIP agreement contains customary and appropriate events of
default.
To secure its DIP obligations, the lender will be granted
superpriority expense status over all administrative expenses
pursuant to Section 503(b) or 507(b) of the Bankruptcy Code.
A full-text copy of the credit agreement is available for free
at http://ResearchArchives.com/t/s?2fc2
About CMT America
Headquartered in Farmington, Connecticut, CMT America Corp. aka
Fairvane Corp. is a 70-store women's clothing retailer. The
company filed for Chapter 11 protection on July 13, 2008 (Bankr.
D. Del. Case No.08-11434). Robert S. Brady, Esq., Young, Conaway,
Stargatt & Taylor LLP, represents the Debtor in its restructuring
efforts. The U.S. Trustee for Region 2 has yet to appoint an
Official Committee of Unsecured Creditors. When the Debtor filed
for protection against its creditors, it listed assets between
$10 million and $50 million, and debts between $10 million and
$50 million.
CMT AMERICA: Administar Services Approved as Claims Agent
---------------------------------------------------------
The Hon. Christopher Sontchi of the United States Bankruptcy Court
for the District of Delaware gave CMT America Corp. permission to
employ Administar Services Group LLC as its claims, notice
and balloting agent.
As the Debtor's claims agent, Administar Services is expected to:
a) assist the Debtor with all required notices in this case
including, among others:
-- notice of commencement of this Chapter 11 case and the
initial meeting of creditors under Section 341(a) of the
Bankruptcy Code;
-- notice of claims bar dates;
-- notice of objections of claims;
-- notices of any hearings on the Debtor's disclosure
statement and confirmations of its Chapter 11 plan; and
-- other miscellaneous notices as the Debtor or the Court
any deem necessary or appropriate for the orderly
administration of this Chapter 11 case;
b) file withe clerk's office a certificate or affidavit of
service that includes:
-- a copy of the notice served;
-- a list of persons upon whom the notice was served along
with their addresses; and
-- the date and manner of services;
c) receive, examine and maintain copies of all proofs of claim,
and proofs of interest filed in the case;
d) maintain an official claims register in the Debtor's case by
docketing all proofs of claim, and proofs of interest in the
applicable claims database that includes these information
for each claim or interest asserted:
-- name and address of the claimant or interest holder and
any agent thereof, if the proof of claim or proof of
interest was filed an agent;
-- date the proof of claim or proof of interest was received
by the firm or the Court;
-- claim number assigned to the proof of claim or proof of
interest; and
-- asserted amount and classification of the claim;
e) implement necessary security measures to ensure the
completeness and integrity of the claims register;
f) transmit to the clerk's office a copy of the claims
register on a weekly basis unless request by the clerk's
office on a more or less frequent basis;
g) maintain an updated mailing list for all entities that have
filed proofs of claim or proofs of interest and make the
list available upon request to the clerk's office or any
party-in-interest;
h) provide access to the public for examination of copies of
the proofs of claim or proofs of interest filed in the case
without charge during regular business hours;
i) record all transfers of claims pursuant to Bankruptcy Rule
3001(e) and provide notice of the transfers as required by
the Bankruptcy Rule 3001(e);
j) comply with applicable federal, state, municipal and local
statutes, ordinances, rules, regulations, orders and other
requirements;
k) comply with further conditions and requirements as the
clerk's office or the Court may at any time prescribe;
l) provide other claims processing, noticing and related
administrative services as may be requested from time to
time by the Debtors;
m) oversee the distribution of the applicable solicitation
material to each holder of a claim against or interest in
the Debtor;
n) respond to mechanical and technical distribution and
solicitation inquiries;
o) receive, review and tabulate the ballots cast, and make
determination with respect to each ballots as to its
timeliness, compliance with the Bankruptcy Code, Bankruptcy
Rules and procedures ordered by the Court subject, if
necessary, to review and ultimate determination by the
Court;
p) certify the results of the balloting to the Court; and
q) perform other related plan-solicitation services as may be
requested by the Debtor.
The firm's professionals and their compensation rates are:
Designation Hourly Rate
----------- -----------
President/Senior Vice President $185-$225
Vice President/Executive Consultant $150-$185
Bankruptcy Consultant/Sr. Bankruptcy Consultant $90-$150
Bankruptcy Analyst/Sr. Bankruptcy Analyst $75-$85
Administrative/Operations/Call Center Attendant $35-$65
Jeffrey L. Pirrung, senior vice president of the firm, assures the
Court that the firm does not hold any interest adverse to the
Debtor's estate and is a "disinterested person" as defined in
Section 101(14) of the Bankruptcy Code.
Mr. Pirrung can be reached at:
Jeffrey L. Pirrung
Senior Vice President
Administar Services Group LLC
8475 Western Way, Suite 110
Jacksonville, FL 32256
Tel: (904) 807-3000
Fax: (904) 807-3030
http://administarllc.com/
Headquartered in Farmington, Connecticut, CMT America Corp. aka
Fairvane Corp. is a 70-store women's clothing retailer. The
company filed for Chapter 11 protection on July 13, 2008 (Bankr.
D. Del. Case No.08-11434). Robert S. Brady, Esq., Young, Conaway,
Stargatt & Taylor LLP, represents the Debtor in its restructuring
efforts. The U.S. Trustee for Region 2 has yet to appoint
creditor serve on an Official Committee of Unsecured Creditors.
When the Debtor filed for protection against its creditors, it
listed assets between $10 million and $50 million, and debts
between $10 million and $50 million.
COINMACH SERVICE: Moody's Junks Ratings on $1.47BB Sale to Babcock
------------------------------------------------------------------
Moody's Investors Service assigned a B2 corporate family rating, a
B1 senior secured rating, a Caa1 senior unsecured rating, and a
Caa1 senior subordinated rating to Coinmach Service Corp. The
rating outlook is negative. The rating action was prompted by
Babcock & Brown and co-investors' acquisition of Coinmach for
approximately $1.47 billion. The acquisition consideration
includes $1.14 billion of funded debt.
These ratings were assigned:
-- Corporate Family Rating, B2;
-- Probability of Default Rating, B2;
-- Revolving Credit Facility due 2013, B1 (LGD3, 33%);
-- Delayed Draw Term Loan due 2014, B1 (LGD3, 33%);
-- Term Loan B due 2014, B1 (LGD3, 33%);
-- 10.125% Gtd. Senior Unsecured Loan due 2015, Caa1 (LGD5,
79%);
-- 11.68% Gtd. Senior Subordinated Loan due 2015, Caa1 (LGD6,
92%);
-- Speculative Grade Liquidity Rating, SGL-3;
-- Outlook is negative
The ratings and outlook reflect Coinmach's high leverage (8.0x
adjusted EBITDA/Debt) and weak interest coverage (0.5x adjusted
EBIT/Interest) for the 12 months ended March 31, 2008. The rating
also considers Coinmach's weak tangible asset coverage, the
potential for multiple tuck-in acquisitions, and relatively high
capital costs, including advanced payments. Moody's believes free
cash flow relative to total debt will remain modest, restricting
debt reduction over the intermediate term. In fact, Moody's
believes debt will increase over the next year due to the PIK
feature (from May 15, 2008 through May 15, 2009) of the senior
subordinated loan.
At the same time, the B2 corporate family rating reflects a longer
term view that favorably considers the company's stable operating
margins and cash flow. Coinmach's track record and stability are
driven by its large installed equipment base, geographic
diversity, long-term contracts, and high customer retention in a
business that is relatively protected from the general economic
cycle. As a result, revenues and EBITDA are fairly predictable,
which enables Coinmach to service debt in an up or down cycle as
well as pursue organic growth opportunities. Although high
vacancy rates have negatively impacted operating performance over
recent periods, the company's economies of scale, ability to raise
vend prices, and the contribution from small tuck-in acquisitions
and/or new initiatives have helped mitigate volatility.
Moody's believes a negative outlook is warranted at this time
given the current economic environment, the high level of
leverage, and the low interest coverage. The ratings do not
support any additional leverage to the company over the
intermediate term beyond the PIK interest of the subordinated loan
in 2009. Coinmach will likely fund tuck-in acquisitions with its
delayed draw term loan; however drawdowns are limited to pro forma
leverage of 7.25x. Moody's also believes that the earnings power
of the core route business may decline in FY 2009 (ending March
31st) as vacancy rates are not expected to improve over the next
12 months. Over the last three fiscal years, an increase to
vacancy rates was primarily responsible for reducing the company's
sales by 5.8%. Although Moody's believes Coinmach will generate
only modest internal cash relative to its debt load over the next
12 months, the company will have adequate availability under its
revolver and delayed draw term loan. Factors that could
negatively impact the ratings and/or outlook include an increase
in apartment vacancy rates or weaker than expected operating
performance, resulting in the inability to improve credit metrics
over the intermediate term. If the company fails to relatively
maintain its leverage on an adjusted basis during the next 12 to
18 months, the ratings may be downgraded.
Coinmach Service Corp., through its wholly owned subsidiaries, is
the single largest provider of outsourced laundry services for
multi-family housing properties in North America.
CUSTOM ADVANTAGE: Voluntary Chapter 11 Case Summary
---------------------------------------------------
Debtor: Custom Advantage Builders, Inc.
2928 Jefferson Street, Suite 2A
Carlsbad, CA 92008
Bankruptcy Case No.: 08-06543
Type of Business: The Debtor's stockholder and president,
Daniel Holbrook, filed for Chapter 11 protection
on April 7, 2008 (Bankr. S.D. Calif. Case
No. 08-02794).
Chapter 11 Petition Date: July 16, 2008
Court: Southern District of California (San Diego)
Judge: James W. Meyers
Debtor's Counsel: Raymond R. Lee, Esq.
(leesd@aol.com)
Suppa, Trucchi & Henein, LLP
3055 India Street
San Diego, CA 92103
Tel: (619) 297-7330
Estimated Assets: $1,000,000 to $10,000,000
Estimated Debts: $1,000,000 to $10,000,000
The Debtor does not have any unsecured creditors who are not
insiders.
D & D UTILITY: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: D & D Utility Construction Services, Inc.
P.O. Box 570
Sedalia, CO 80135
Bankruptcy Case No.: 08-20580
Type of Business: The Debtor is a Colorado-based company that is
engaged in construction services.
See http://www.danddutility.com/
Chapter 11 Petition Date: July 21, 2008
Court: District of Colorado (Denver)
Debtor's Counsel: Jeffrey L. Hill, Esq.
Email: jhilllaw@epitrustee.com
11911 S. Parker Road, Suite 207
Parker, CO 80134
Tel: (303) 805-1478
Fax: (720) 851-9551
Total Assets: $65,725
Total Debts: $1,360,364
A list of the Debtor's 20 largest unsecured creditors is available
for free at:
http://bankrupt.com/misc/cob08-20580.pdf
DIAMOND GLASS: Changes Name to Reflect Belron Purchase Agreement
----------------------------------------------------------------
Diamond Glass Inc. changed its name to DG Liquidation Corp.,
reports GlassBYTEs, citing documents filed with the U.S.
Bankruptcy Court for the District of Delaware.
The name change was effective on June 30, the day when Belron US,
a unit of Belron SA, closed its purchase of the Debtor. As
reported in the Troubled Company Reporter on July 3, 2008, the
acquisition will result in the transfer of the Debtor's at least
1,600 workers and 217 service center networks in 42 states to
Belron.
"[T]he transaction marks the beginning of a transition of the
Diamond Glass operating model to the Belron US operating model,"
Tom Feeney, US president and CEO of Belron, stated in a press
release. According to documents filed with the Court, the name
change is necessary to effectuate the acquisition.
Pursuant to the purchase agreement, the caption in the Debtor's
case is officially changed to "In re: DG LIQUIDATION CORP., et
al."
About Belron US
Headquartered in Columbus, Ohio, Belron US -- http://belronus.com/
-- is a multi-faceted vehicle glass and claims management service
organization. Belron US is a subsidiary of Belron SA --
http://www.belron.com/-- after the parent company's acquisition
of Safelite AutoGlass -- http://www.safelite.com/-- in March
2007. The company is composed of three major business operations
that include vehicle glass fulfillment services, operating under
the trade names Auto Glass Specialists(R), Elite Auto Glass(TM)
and Safelite AutoGlass(R); windshield manufacturing; and Safelite
Solutions(R) which offers fleet and insurance claims management
services. The company employs more than 7,000 people throughout
the United States and operates in 28 countries.
About Diamond Glass
Headquartered in Kingston, Pennsylvania, Diamond Glass Inc. --
http://www.diamongtriumph.com/and
http://www.daimondtriumphglass.com/-- provides automotive
glass replacement and repair services. Founded in 1923, Diamond
Glass had more than 1,600 employees as of March 15.
The company and and its debtor-affiliate DT Subsidiary Corp.,
filed for Chapter 11 bankruptcy petition on April 1, 2008 (Bankr.
D. Del. Lead Case No. 08-10601). Michael P. Richman, Esq., at
Foley & Lardner LLP, and Donald J. Bowman Jr., Esq., at Young
Conaway Stargatt & Taylor LLP, represent the Debtors in their
restructuring efforts. The U.S. Trustee for Region 3 appointed
five creditors to serve on an Official Committee of Unsecured
Creditors. John T. Carrol, III, Esq., and Jeffrey R. Waxman,
Esq., at Cozen O'Connor, represent the Committee in this case.
When the Debtors filed for bankruptcy protection, they listed
assets of between $10 million and $50 million and debts of between
$100 million and $500 million.
DRIGGS FARMS: Section 341(a) Meeting Set for July 24
----------------------------------------------------
The United States Trustee for Region 10 will convene a meeting of
Driggs Farms of Indiana Inc.'s creditors at 10:00 a.m., on
July 24, 2008, at Room 1194, 1300 South Harrison Street, Fort
Wayne, Ind. This is the first meeting of creditors required under
Section 341(a) of the Bankruptcy Code in all bankruptcy cases.
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 officer of the
Debtor under oath about his financial affairs and operations that
would be of interest to the general body of creditors.
Based in Decatur, Ind., Driggs Farms of Indiana Inc. manufactures
frozen desserts & novelties and dairy products. The company filed
for Chapter 11 protection on June 20, 2008 (N.D. Indiana Case No.
08-11955). Daniel J. Skekloff, Esq., at Skekloff, Adelsperger &
Kleven, LLP, represents the Debtor in its restructuring efforts.
Rothberg Logan & Warsco LLP is the Commitee of Unsecured
Creditors' proposed counsel. When the Debtor filed for protection
from its creditors, it listed estimated assets of between $10
million and $50 million and estimated debts of $10 million to $50
million.
DRIGGS FARMS: Wants to Use Up to $15MM KeyBank Cash Collateral
--------------------------------------------------------------
Driggs Farms of Indiana Inc. asks the U.S. Bankruptcy Court for
the Northern District of Indiana for authority to use KeyBank
N.A.'s cash collateral in the maximum amount of $15,055,755
pursuant to a budget, and subsequent budgets the Debtor produces,
through and including Sept. 13, 2008, to pay debts or obligations
of the Debtor which are directly related to its business
operations or the administration of the case.
KeyBank, N.A., the Debtor's chief secured lender, holds a secured
claim against the Debtor of approximately $13.4 million. The
KeyBank claim is secured by a blanket lien on assets of the Debtor
including inventory, equipment, accounts receivable and other
personal property. KeyBank also holds a mortgage on the Debtor's
real estate.
As further protection for KeyBank's security interest in the cash
collateral, on or before the last business day of each week during
the term of the proposed order, the Debtor shall provide KeyBank
with adequate protection payments in an amount equal to the weekly
interest which has accrued on account of the Debtor's pre-petition
debt obligation to KeyBank, subject to the condition that should
the Court later determine that KeyBank was not entitled to receive
the weekly payments because of the status of its allowed secured
claim under Section 506(a) of the Bankruptcy Code or the perfected
status of such claims, KeyBank is to repay such weekly payments to
the Debtor's estate.
As further adequate protection for KeyBank's security interest in
the cash collateral in connection with the Debtor's use thereof,
KeyBank is granted a replacement lien in:
a. The pre-petition collateral of KeyBank; and
b. All of the Debtor's other property and interest in property,
whether real or personal, tangible or intangible, whether
existing at the commencement of the case or acquired
thereafter, excluding, however, any bankruptcy causes of
action belonging to the Debtor under chapter 5 of the
Bankruptcy Code which constitutes voidance actions.
This notwithstanding, the proceeds of any avoidance action
shall be available to repay the amount secured by the KeyBank
replacement lien pari passu, with the highest priority
allowed claim against the Debtor which is entitled to a
distribution on account of such proceeds.
The Debtor's use of KeyBank's cash collateral shall be subject to
a "Carve-Out" from the bank's collateral for the reasonable fees
and expenses in this bankruptcy case of the unsecured creditors
committee counsel, Rothberg, Logan and Warsco, LLP as may be
allowed by the Court pursuant to Sections 330(a) and 331 of the
Bankruptcy Code in an aggregate amount not exceeding $35,000.
Such Carve-Out is allowed provided, however, that no such fees and
expenses are a claim for filing or prosecuting a contested matter
or an adversary proceeding in this case challenging KeyBank's
claim against the Debtor or its security interest in or liens on
any of KeyBank's collateral. Further, the proposed use of
KeyBank's cash collateral provides a Carve-Out provision for
quarterly fees of the United States Trustee.
The Debtor tells the Court that the Debtor's use of KeyBank's cash
collateral is in the best interests of the Debtor, the creditors,
and the bankruptcy estate.
Based in Decatur, Ind., Driggs Farms of Indiana Inc. manufactures
frozen desserts & novelties and dairy products. The company filed
for Chapter 11 protection on June 20, 2008 (N.D. Indiana Case No.
08-11955). Daniel J. Skekloff, Esq., at Skekloff, Adelsperger &
Kleven, LLP, represents the Debtor in its restructuring efforts.
Rothberg Logan & Warsco LLP is the Commitee of Unsecured
Creditors' proposed counsel. When the Debtor filed for protection
from its creditors, it listed estimated assets of between
$10 million and $50 million and estimated debts of $10 million and
$50 million.
DRIGGS FARMS: Taps Skekloff Adelsperger as Counsel
--------------------------------------------------
Driggs Farms of Indiana Inc. asks the U.S. Bankruptcy Court for
the Northern District of Indiana for authority to employ Daniel J.
Skekloff, Esq., Scot T. Skekloff, Esq., and the law firm of
Skekloff, Adelsperger & Kleven, LLP, under a general retainer to
represent the Debtor in its Chapter 11 bankruptcy case.
Danief J. Skekloff, Esq., a member at Skekloff Adelsperger,
assures the Court that the firm does not hold or represent any
interest adverse to the Debtor or its estate, and that the
employment of the firm would be in the best interest of the
estate.
Pursuant to Bankruptcy Rule 20 14(a), Mr. Skekloff tells the Court
that Yvette Gaff Kleven, a partner at Skekloff Adelsperger, is a
Chapter 7 Panel Trustee for the Northern District of Indiana, Fort
Wayne Division, appointed by the Office of the United States
Trustee, Region 10.
The Debtor did not provide a schedule of hourly fees to be paid to
the professionals of Skekloff Adelsperger.
Based in Decatur, Ind., Driggs Farms of Indiana Inc. manufactures
frozen desserts & novelties and dairy products. The company filed
for Chapter 11 protection on June 20, 2008 (N.D. Indiana Case No.
08-11955). Rothberg Logan & Warsco LLP is the Commitee of
Unsecured Creditors' proposed counsel. When the Debtor filed for
protection from its creditors, it listed estimated assets of
between $10 million and $50 million and estimated debts of
$10 million and $50 million.
DRIGGS FARMS: U.S. Trustee Names 12-Member Creditors Panel
-----------------------------------------------------------------
Pursuant to Section 1102(a)(1) of the Bankruptcy Code, Nancy J.
Gargula, the United States Trustee for Region 10, appointed twelve
members to the Official Committee of Unsecured Creditors in Driggs
Farms of Indiana Inc.'s Chapter 11 case.
The Creditors Committee consists of:
(1) Gavilon, LLC
f/k/a ConAgra Food Ingredients Inc.
Attn: Dwight Smith
Eleven ConAgra Drive
Omaha, NE 68102
Tel: (402) 595-5581
Fax: (402) 930-3489
(2) Denali Ingredients
Attn: Jerry Trancik
2400 S. Calhoun
New Berlin, WI 53151
Tel: (616) 877-4625
Fax: (616) 877-4558
(3) All American Foods Inc
Attn: Kevin Olson
P.O. Box 8242
Mankato, MN 56002-8242
Tel: (507) 387-6480
Fax: (507) 387-6111
(4) Berry Plastics Corp.
Attn: Ronda Hale
101 Oakley Street
Evansville, IN 47710
Tel: (812) 306-2354
Fax: (812) 434-9454
(5) T.C. Jacoby & Company, Inc.
Attn: Keith Kirchoff
1716 Hidden Creek Court
Saint Louis, MO 63131
Tel: (314) 821-4456 ext. 114
Fax: (314) 909-2055
(6) Malnove Inc. of Nebraska
Attn: Tim Gzehoviak
13434 F Street
Omaha, NE 68137
Tel: (402) 778-0568
Fax: (402) 334-4963
(7) Reindel Transport Inc.
Attn: Tom Reindel
21845 Lincoln Highway
Delphos, OH 45833
Tel: (419) 227-3423
Fax: (419) 695-0037
(8) Southwest Nut Company
Attn: Chris Spence
825 West Main Street
P.O. Box 3900
Fabens, TX 79838
Tel: (915) 764-4949
Fax: (915) 764-0247
(9) Zimmer Custom-Made Packaging
Attn: Charles E. Bullard
1450 East 20th Street
Indianapolis, IN 46201
Tel: (317) 263-3436
Fax: (317) 263-3427
(10) PS International, LTD
Attn: Dave Kuntarich
1414 Raleigh Road, Suite 205
Chapel Hill, NC 27517
Tel: (919) 933-7400
Fax: (919) 933-7441
(11) S.R. Schaefer Trucking LLC
Attn: Samuel R. Schaefer
2383 West Street Road 124
Bluffton, IN 46714
Tel: (260) 694-6980
Fax: (260) 694-7030
(12) Berkshire Dairy & Food Products Inc.
Attn: Mark Moyer
1258 Penn Avenue
Wyomissing, PA 19610
Tel: (610) 378-9999
Fax: (610) 378-4975
Based in Decatur, Ind., Driggs Farms of Indiana Inc. manufactures
frozen desserts & novelties and dairy products. The company filed
for Chapter 11 protection on June 20, 2008 (N.D. Indiana Case No.
08-11955). Daniel J. Skekloff, Esq., at Skekloff, Adelsperger &
Kleven, LLP, represents the Debtor in its restructuring efforts.
When the Debtor filed for protection from its creditors, it listed
estimated assets of between $10 million and $50 million and
estimated debts of $10 million and $50 million.
DUNMORE HOMES: Files Supplements to Plan of Liquidation
-------------------------------------------------------
Dunmore Homes, Inc., delivered to the U.S. Bankruptcy Court for
the Eastern District of California supplements to its Plan of
Liquidation, identifying three holders of general unsecured claims
who are to be members of the oversight committee pursuant to the
Plan. They are:
(1) Beutler Corporation;
(2) CVC Construction Corp.; and
(3) MacKay & Somps Civil Engineers.
The members of the Oversight Committee were agreed upon by the
Debtor and the Official Committee of Unsecured Creditors.
In the same filing, the Debtor disclosed its list of assumed
contracts. The contracts are:
Counterparty Description Termination
------------ ----------- -----------
Sidney B. Dunmore Modification of Note Not Applicable
& Loan Agreements
Constellation Accounting Software/ 30 days' notice
Homebuilder Maintenance Agreement
Systems, Inc.
Paramount Equity Lease & Sublease 9/30/2008
Mortgage Agreement
Intuitive Network Email Hosting 30 days' notice
Networks, Inc. Agreement
Parkway Plaza Consent to Sublease 9/30/2008
Investors & Agreement
Paramount Equity
Mortgage
Diepenbrock Attorney Engagement N/A
Harrison Agreement
Newmeyer & Attorney Contingency N/A
Dillion LLP Fee Agreement
Wilke Fleury Attorney Engagment N/A
Hoffelt Goul & Agreement
Birney
CIT Technology Equipment leases - 7/13/2010
Savin 4075SP copier
John Obronson Insurance Agreements 4/1/2008 - will
(Broker) Golden - Personal Property & extend upon
Eagle carrier auto coverage termination
annually.
Termination
results in
premium refund
John Obronson Insurance Agreements 4/1/2008 - will
(Broker) Hartford - Crime extend upon
termination
annually.
Termination
results in
premium refund
Crump Insurance Insurance Agreements 1/1/2008 to
services - General Liability 1/1/2009
$12,500 minimum
premium
Ace Insurance Agreements Cancel at any time
- Builders risk - no further
payment
State Fund Insurance Agreements Cancel at any time
- Workers comp - no further
payment
ADP-Payroll Payroll processing Cancel at any time
processing
Capital/Central Records storage Cancel at any time
records storage
Cintas Document shredding Cancel at any time
Surewest Phone and DSL new 1 year to
location 3/15/2009
Based in Granite Bay, California, Dunmore Homes Inc. is a
privately-owned homebuilder. The company filed for Chapter 11
protection on Nov. 8, 2007 (Bankr. S.D.N.Y. Case No. 07-13533).
Maria A. Bove, Esq., and Debra I. Grassgreen, Esq., at Pachulski
Stang Ziehl & Jones LLP, represent the Debtor in its restructuring
efforts. The Official Committee of Unsecured Creditors has
selected Morrison & Foerster LLP as its counsel in this bankruptcy
proceeding.
In January 2008, the U.S. Bankruptcy Court for the Southern
District of New York ordered the transfer of Debtor's Chapter 11
case to the U.S. Bankruptcy Court for the Eastern District of
California, Sacramento Division. The Debtor filed its plan of
liquidation and an accompanying disclosure statement on March 21,
2008.
The Debtor disclosed $20,743,147 in total assets and $250,252,312
in total debts in its schedules of assets and liabilities filed
with the Court.
(Dunmore Bankruptcy News; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
DUNMORE HOMES: Enters Stipulations Reclassifying $3,285,240 Claims
------------------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of California
approved stipulations between Dunmore Homes, Inc. and Claimants
for the reclassification of their subject claims totaling
$3,285,240 as general unsecured claims.:
Claimant Claim No. Claim Amount
-------- --------- ------------
MacKay & Somps Civil Engineers, Inc. 352 $2,070,865
SGN Construction, Inc. 334 526,323
Emerald Drywall 114 226,608
Placer Lumber 61 192,693
Kings Drywall, Inc. 250 86,180
IM Construction, Inc. 62 53,105
Arakelian, Inc. d/b/a Builders Flooring 187 38,667
Shawn-Mari McKinley 31 33,158
Western Insulation LP 49 18,898
Garza Landscaping 181 16,050
Vexillum, Inc. d/b/a EZ Electric 136 12,450
Inter Flora, Inc. 91 5,730
Residential Landscape Design 199 3,818
King Door Co. Inc. 292 695
After the Court approved the Debtor's Disclosure Statement
describing the First Amended Plan of Liquidation, the Debtor and
the Claimants determined that the Claims should be reclassified
as general unsecured claims, and that any ballot submitted by the
Claimants should be tabulated as a vote in Class 3 under the
Plan.
Based in Granite Bay, California, Dunmore Homes Inc. is a
privately-owned homebuilder. The company filed for Chapter 11
protection on Nov. 8, 2007 (Bankr. S.D.N.Y. Case No. 07-13533).
Maria A. Bove, Esq., and Debra I. Grassgreen, Esq., at Pachulski
Stang Ziehl & Jones LLP, represent the Debtor in its restructuring
efforts. The Official Committee of Unsecured Creditors has
selected Morrison & Foerster LLP as its counsel in this bankruptcy
proceeding.
In January 2008, the U.S. Bankruptcy Court for the Southern
District of New York ordered the transfer of Debtor's Chapter 11
case to the U.S. Bankruptcy Court for the Eastern District of
California, Sacramento Division. The Debtor filed its plan of
liquidation and an accompanying disclosure statement on March 21,
2008.
The Debtor disclosed $20,743,147 in total assets and $250,252,312
in total debts in its schedules of assets and liabilities filed
with the Court.
(Dunmore Bankruptcy News; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
DUNMORE HOMES: Court Okays Settlement, Agreement with Keybank N.A.
------------------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of California
approve a settlement and general release agreement Dunmore Homes,
Inc., entered into with Dunmore Laguna Reserve LLC, and KeyBank
National Association, pursuant to Rule 9019 of the Federal Rules
of Bankruptcy Procedure.
Before the Petition Date, KeyBank extended certain loans to
Dunmore Laguna aggregating $51,786,296 for the purpose of
acquiring, developing and constructing residential projects known
as The Villas and Cypress Cove in Elk Grove, California. The
amounts due under the Loans are secured solely by property owned
by Dunmore Laguna pursuant to certain deeds of trust executed by
Dunmore Laguna in connection with each of the Loans.
In connection with the Loans, Dunmore Homes, a California
corporation, entered into three unconditional guarantees in favor
of KeyBank.
The Guarantees are guaranteeing payments pursuant to:
(1) a Land Acquisition and Development Loan Agreement between
Dunmore Laguna and KeyBank in the maximum principal amount
of $30,750,000;
(2) a Revolving Residential Construction Loan Agreement
between Dunmore Laguna and KeyBank in the maximum
principal amount of $12,165,000; and
(3) a Revolving Residential Construction Loan Agreement
between Dunmore Laguna and KeyBank in the maximum
principal amount of $11,200,000.
The Debtor assumed the obligations under the Guaranties in
connection with the sale of Dunmore California's assets to the
Debtor.
According to Debra I. Grassgreen, Esq., at Pachulski Stang Ziehl
& Jones LLP, in San Francisco, California, Laguna Reserve
experienced technical and nontechnical defaults under the Loans
beginning in August 2007.
On March 13, 2008, KeyBank filed a proof of claim against the
Debtor for $25,524,412 in connection with the Loan Documents.
KeyBank notes that the amount will be reduced if KeyBank
forecloses upon the Property.
Pursuant to a Loan Sale Agreement, KeyBank agreed to sell the
Loans to BHT Investors LLC for $9,300,000. BHT assigned its
rights to purchase the Loans to its subsidiary BHT-Elk Grove KB
LLC. Subsequently, KeyBank and BHT-Elk Grove entered into an
Amendment of Loan Sale Agreement of the Original Loan Sale
Agreement on June 23, 2008.
Ms. Grassgreen tells the Court that the Loan Sale Agreement
provides for a release by BHT-Elk Grove of the Debtor from all
liabilities relating to the Loans, including the Debtor's
obligations under the Guaranties. In addition, BHT-Elk Grove
agrees, as a condition to the closing under the Loan Sale
Agreement, to deliver to KeyBank an instrument of release to
limit BHT-Elk Grove's recourse solely against the Property and
waive all rights to a deficiency judgment against any party
liable.
"Such waivers and releases will result in the elimination of an
unsecured deficiency claim against the Debtor arising from the
Guaranties in the approximate maximum amount of $25,500,000," Ms.
Grassgreen says. "In addition, KeyBank has agreed to pay the
Debtor a fee equal to one percent of the Purchase Price for the
purpose of reimbursing the estate for the transaction fee the
Debtor is required to pay Alvarez & Marsal Securities LLC in
connection with the sale of the Loans.
Ms. Grassgreen notes that in exchange for the release of claims
against the Debtor and payment of A&M's Fee, the Loan Sale
Agreement requires, as a condition to closing, that the Debtor
and its nondebtor subsidiary, Dunmore Laguna, release all claims
they hold against KeyBank.
"It is a condition to the effectiveness of the Agreement that
KeyBank deliver the executed Buyer Release to the Debtor," Ms.
Grassgreen says.
Based in Granite Bay, California, Dunmore Homes Inc. is a
privately-owned homebuilder. The company filed for Chapter 11
protection on Nov. 8, 2007 (Bankr. S.D.N.Y. Case No. 07-13533).
Maria A. Bove, Esq., and Debra I. Grassgreen, Esq., at Pachulski
Stang Ziehl & Jones LLP, represent the Debtor in its restructuring
efforts. The Official Committee of Unsecured Creditors has
selected Morrison & Foerster LLP as its counsel in this bankruptcy
proceeding.
In January 2008, the U.S. Bankruptcy Court for the Southern
District of New York ordered the transfer of Debtor's Chapter 11
case to the U.S. Bankruptcy Court for the Eastern District of
California, Sacramento Division. The Debtor filed its plan of
liquidation and an accompanying disclosure statement on March 21,
2008.
The Debtor disclosed $20,743,147 in total assets and $250,252,312
in total debts in its schedules of assets and liabilities filed
with the Court.
(Dunmore Bankruptcy News; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
DUNMORE HOMES: Affinity Bank Withdraws $10,860,432 Claim
--------------------------------------------------------
Affinity Bank, an unsecured creditor of Dunmore Homes, Inc., has
withdrawn Claim No. 267 worth $10,860,432.
The Claim was filed on March 14, 2008 and was a result of the
Debtor's guaranty of a loan made by the Bank to Dunmore-Orchard
LLC, a California limited liability, originally worth
$11,731,000. Sidney B. Dunmore also personally guaranteed the
Loan.
Craig A. Welin, Esq., at Frandzel Robins Bloom & Csato LC, in Los
Angeles, California, relates that in December 2007, the Bank
received a security interest in collateral from Mr. Dunmore
aggregating $3,000,000 to secure Mr. Dunmore's performance under
his guaranty.
As consideration for the Bank's receipt of the security interest
from Mr. Dunmore, the Bank agreed to withdraw its Claim against
the Debtor in its entirety.
Based in Granite Bay, California, Dunmore Homes Inc. is a
privately-owned homebuilder. The company filed for Chapter 11
protection on Nov. 8, 2007 (Bankr. S.D.N.Y. Case No. 07-13533).
Maria A. Bove, Esq., and Debra I. Grassgreen, Esq., at Pachulski
Stang Ziehl & Jones LLP, represent the Debtor in its restructuring
efforts. The Official Committee of Unsecured Creditors has
selected Morrison & Foerster LLP as its counsel in this bankruptcy
proceeding.
In January 2008, the U.S. Bankruptcy Court for the Southern
District of New York ordered the transfer of Debtor's Chapter 11
case to the U.S. Bankruptcy Court for the Eastern District of
California, Sacramento Division. The Debtor filed its plan of
liquidation and an accompanying disclosure statement on March 21,
2008.
The Debtor disclosed $20,743,147 in total assets and $250,252,312
in total debts in its schedules of assets and liabilities filed
with the Court.
(Dunmore Bankruptcy News; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
DYNAMERICA MANUFACTURING: Files Chapter 11 Petition in Delaware
---------------------------------------------------------------
DynAmerica Manufacturing LLC asked the U.S. Bankruptcy Court for
the District of Delaware in Wilmington for authority to tap
$1.77 million out of a $2.62 million debtor-in-possession
financing through Aug. 9, 2008, Mike Schoeck writes for The Deal.
The DIP financing will be provided by the Debtor's customers TRW
Vehicle Safety Systems Inc., Autoliv ASP Inc. and Quality Safety
Systems Co., The Deal says.
The Debtor sought bankruptcy protection three days after the
expiration of a forbearance pact with its secured lender, Comerica
Bank, The Deal relates. On April 7, DynAmerica missed a payment
on its $5.25 million prepetition debt owed to Comerica, according
to the report. Comerica informed the Debtor on May 6 to seek
another lender, The Deal notes. Based on the report, Comerica is
currently owed $2.8 million.
Muncie, Indiana-based DynAmerica Manufacturing LLC --
http://www.dynamericamfg.com/-- has been providing safety
components, such as seat belt buckles, motor housings and brake
parts, to the automotive industry for more than 20 years. Its
customers include Delphi Corp. and Visteon Corp. DynAmerica also
produces electrical parts. DynAmerica also operates a warehouse
in West Milton, Ohio, and a manufacturing facility in Monterrey,
Mexico. TMB Industries LLC --
http://www.tmbindustries.com/partners.html-- has been investing
in the company since 2005.
DynAmerica filed its chapter 11 petition on July 18, 2008 (Bankr.
D. Del. Case No. 08-11515). Marc S. Casarino, Esq., and James S.
Yoder, Esq., Robert A. Kargen, Esq., and Amy E. Vulpio, Esq., at
White and Williams LLP represent the Debtor in its restructuring
efforts.
DYNAMERICA MANUFACTURING: Voluntary Chapter 11 Case Summary
-----------------------------------------------------------
Debtor: DynAmerica Manufacturing, Inc.
401 South Blaine Street
Muncie, IN 47302
Bankruptcy Case No.: 08-11515
Related Information: Kelly Bodway, president and CEO, filed the
petition on the Debtor's behalf.
Type of Business: The Debtor has been providing safety
components, such as seat belt buckles, motor
housings and brake parts, to the automotive
industry for more than 20 years. Its customers
include Delphi Corp. and Visteon Corp.
DynAmerica also produces electrical parts.
DynAmerica also operates a warehouse in West
Milton, Ohio, and a manufacturing facility in
Monterrey, Mexico. See
http://www.dynamericamfg.com/
TMB Industries LLC has been investing in the
company since 2005. See
http://www.tmbindustries.com/partners.html
Chapter 11 Petition Date: July 18, 2008
Court: District of Delaware (Delaware)
Debtor's Counsel: Marc Stephen Casarino, Esq.
(casarinom@whiteandwilliams.com)
White and Williams LLP
824 Market Street, Suite 902
Wilmington, DE 19899
Tel: (302) 467-4520
Fax: (302) 467-4550
Estimated Assets: $1 million to $10 million
Estimated Debts: $1 million to $10 million
A list of the Debtor's largest unsecured creditors is available
for free at http://bankrupt.com/misc/deb08-11515.pdf
EL PASO CHILE: Section 341(a) Meeting Scheduled for August 14
-------------------------------------------------------------
The U.S. Trustee for Region 7 will convene a meeting of El Paso
Chile Company Inc. and its debtor-affiliate's creditors on Aug.
14, 2008, at 12:30 p.m., at the El Paso Suite 135, The Spectrum
Building, 8201 Lockheed, in El Paso, Texas.
This is the first meeting of creditors required under Section
341(a) of the U.S. Bankruptcy Code in all bankruptcy cases.
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.
Based in El Paso, Texas, El Paso Chile Company Inc. and its
affiliate Desert Pepper Trading Co. -- http://www.elpasochile.com/
-- pack and process food spices, condiments, and drinks. El Paso
Chile filed for Chapter 11 protection on June 25, 2008 (Bankr.
W.D. Tex. Case Nos. 08-30948 and 08-30949). Bernard R. Given, II,
Esq., at Beck & Given P.C., represents the Debtors in their
restructuring efforts. When the Debtors filed for protection from
their creditors, they listed estimated assets of $1 million to
$100 million, and estimated debts of $1 million to $100 million.
EL PASO CHILE: U.S. Trustee Names 3-Member Creditors Panel
----------------------------------------------------------
Pursuant to Section 1102(a)(1) of the Bankruptcy Code, Charles F.
McVay, the the United States Trustee for Region 7, appointed three
members to the Official Committee of Unsecured Creditors in El
Paso Chile Company and Desert Pepper Trading Co.'s Chapter 11
cases.
The Creditors Committee consists of:
(1) Kranson Industries, Inc.
dba TricorBraun, FNA Ryco Packaging
Attn: Dan Dunwiddie
10330 Old Olive Street
St. Louis, MO 63141
Tel: (314) 983-2055
Fax: (314) 995-5155
e-mail: ddunwiddie@tricorbraun.com
mweber@tricorbraun.com
(2) Pro-Liquitech International
Attn: David A. Dafoe
809 South 8th Street
Louisville, KY 40203
Tel: (502) 266-7377
Fax: (502) 266-7336
e-mail: snyder@flavorman.com
dafoe@flavorman.com
(3) Renfro Foods Inc.
Attn: Doug Renfro
815 E. Stella
Fort Worth, TX 76104
Tel: (817) 336-3849
Fax: (817) 336-7910 Fax
e-mail: dougrenfro@renfrofoods.com
bill_renfro@renfrofoods.com
Headquartered in El Paso, Texas, El Paso Chile Company Inc. and
its debtor-affiliate, Desert Pepper Trading Co.
-- http://www.elpasochile.com/-- pack and process food spices,
condiments, and driks. The Debtors filed separate Chapter 11
petitions on June 25, 2008 (W. D. Tex. Case Nos. 08-30949 and 08-
30948, respectively). Bernard R. Given, II, Esq., at Beck &
Given, P.C., represent the Debtors as counsel. When the Debtors
filed for protection from their creditors, they listed estimated
assets of between $1,000,000 to $100,000,000 and estimated debts
of between $1,000,000 and $100,000,000.
EL PASO CHILE: May Employ Beck & Given as Counsel
-------------------------------------------------
The U.S. Bankruptcy Court for the Western District of Texas
granted El Paso Chile Company Inc. and its debtor-affiliate,
Desert Pepper Trading Co., permission to employ Beck & Given, P.C.
as counsel.
Beck & Given will provide the Debtors legal advice pertaining to
their powers and duties as debtors-in-possession and the continued
operation of their businesses, as well as to perform other legal
services, including those necessary to effectuate confirmation of
a Plan of Reorganization and preparation of a Disclosure
Statement.
To the best of the Debtors' knowledge, Beck & Given, P.C. does not
represent any interest adverse to the Debtors or their estates,
and that the firm's employment would be to the best interest of
the Debtors' estates.
The Debtor did not provide a compensation schedule for Beck &
Given.
Headquartered in El Paso, Texas, El Paso Chile Company Inc. and
its debtor-affiliate, Desert Pepper Trading Co.
-- http://www.elpasochile.com/-- pack and process food spices,
condiments, and driks. The Debtors filed separate Chapter 11
petitions on June 25, 2008 (W. D. Tex. Case Nos. 08-30949 and 08-
30948, respectively). When the Debtors filed for protection from
their creditors, they listed estimated assets of between
$1,000,000 to $100,000,000 and estimated debts of between
$1,000,000 and $100,000,000.
EMC MORTGAGE: S&P Cuts Class B Certificates Rating to BB from BBB
-----------------------------------------------------------------
Standard & Poor's Ratings Services lowered its rating on the class
B mortgage pass-through certificates issued by EMC Mortgage Loan
Trust 2004-C to 'BB' from 'BBB'. At the same time, S&P affirmed
its ratings on three classes from the same series.
The downgrade reflects S&P's belief that this class has sustained
a decrease in credit support over the past few months.
Additionally, S&P's projected credit support indicates that this
class will become more susceptible to losses in the coming
remittance periods. Overcollateralization for series 2004-C is
currently $1,983,921.24, compared with a target of $2,259,037.58,
which represents a deficiency of approximately $275,116.
The affirmations are based on our analysis of the deal's
performance trends. Over the past year, monthly excess interest
for this series has outpaced monthly net losses in every period
(100% of the time), by an average multiple of approximately 2.07x.
S&P believe the credit support for these classes is sufficient to
maintain the ratings at the current levels.
As of the June 2008 remittance period, cumulative realized losses
were 5.71% of the original pool balance. Total delinquencies were
66.51% of the current pool balance, while severe delinquencies
were 43.36% of the current pool balance.
The high delinquency levels in this transaction are due to the
reperforming mortgage loans, which represent most of the
collateral for this transaction. Generally, the borrower of a
reperforming loan has filed for bankruptcy and is making payments
on the loan in accordance with a payment plan approved by a
bankruptcy court. While most of the borrowers are considered
delinquent under the original terms of the loan, they may be
current in terms of the bankruptcy payment plan.
This transaction is 42 months seasoned and has an outstanding pool
factor of 37.44%. O/C, excess spread, and subordination provide
credit support for this transaction.
The collateral for this transaction originally consisted of
reperforming mortgage loans that were acquired by EMC Mortgage,
including mortgage loans with payment plans approved by a
bankruptcy court under Chapter 11 or Chapter 13 of the Bankruptcy
Code. Other mortgage loans were performing or reperforming under
the auspices of a Chapter 7 liquidation proceeding.
Rating Lowered
EMC Mortgage Loan Trust 2004-C
Mortgage pass-through certificates
Rating
------
Class To From
----- -- ----
B BB BBB
Ratings Affirmed
EMC Mortgage Loan Trust 2004-C
Mortgage pass-through certificates
Class Rating
----- ------
A AAA
M-1 AA
M-2 A
ERIK BENHAM: Files Schedules of Assets & Liabilities
----------------------------------------------------
Erik Benham filed with the U.S. Bankruptcy Court for the Central
District of California, its schedules of assets and liabilities,
disclosing:
Name of Schedule Assets Liabilities
---------------- ----------- -----------
A. Real Property $2,000,750
B. Personal Property $34,805,382
C. Property Claimed as
Exempt
D. Creditors Holding
Secured Claims $1,125,418
E. Creditors Holding
Unsecured Priority
Claims $0
F. Creditors Holding
Unsecured Non-priority
Claims $27,255,505
G. Executory Contracts and
Unexpired Leases
H. Codebtors
I. Current Income of
Individual Debtor $2,150
J. Current Expenditures of
Individual Debtor $5,427
----------- -----------
TOTAL $36,806,132 $28,380,924
Erik Benham filed for Chapter 11 protection on June 24, 2008
(Bankr. C.D. Calif. Case No. 08-11432). Vaughn C. Taus, Esq.
represents him in his restructuring efforts. He listed estimated
assets of $10 million to $50 million, and estimated debts of
$10 million to $50 million when he filed for protection from his
creditors.
FERRO CORP: Extends $200MM Senior Notes Offering Until August 15
----------------------------------------------------------------
Ferro Corporation extended the expiration date of its tender offer
and consent solicitation with respect to its outstanding
$200 million aggregate principal amount of 9-1/8% Senior Notes due
2009. The expiration date has been extended to 5:00 p.m., New
York City time, Aug. 15, 2008.
As a result of the extension, holders of Notes must validly tender
their Notes and deliver their consents by the Expiration Date,
unless further extended or terminated earlier by the company, in
order to receive the tender offer consideration of $1,013.96 per
$1,000 aggregate principal amount of Notes validly tendered. All
holders of Notes who have validly tendered their Notes prior to
the Expiration Date will also receive accrued and unpaid interest
on their tendered Notes up to, but not including, the applicable
payment date, which is expected to occur promptly after the
Expiration Date in regard to Notes validly tendered prior to the
Expiration Date.
As of 5:00 p.m., New York City time, on July 18, 2008, the company
had received tenders and consents for $199,887,000.00 in aggregate
principal amount of the Notes, representing 99.444% of the Notes
outstanding.
The tender offer and consent solicitation remains open and is
scheduled to expire at the Expiration Date. The company reserves
the right to terminate, withdraw or amend the tender offer and
consent solicitation at any time subject to applicable law.
The company's obligation to accept for purchase and to pay for
Notes validly tendered and not withdrawn pursuant to the tender
offer and the consent solicitation is subject to the satisfaction
or waiver, in the company's discretion, of certain conditions,
including, among others, (i) the execution by the company and The
Bank of New York Trust company N.A., as trustee, of the
Supplemental Indenture which sets out the proposed amendments to
the indenture governing the Notes, (ii) holders of the Notes
having delivered by July 3, 2008, consents representing not less
than a majority in aggregate principal amount of the Notes, (iii)
holders of the Notes having tendered (and not withdrawn) by the
Expiration Date Notes representing not less than a majority in
aggregate principal amount of the Notes, and (iv) the company's
receipt of sufficient proceeds from a new issuance of senior debt
on or prior to the Early Acceptance Time or the Final Acceptance
Time, as the case may be, to fund substantially all of the tender
offer and the consent solicitation.
The complete terms and conditions of the tender offer and the
consent solicitation are set forth in the tender offer documents,
and no assurance can be given that the new issuance will be
completed, or the other conditions will be satisfied or waived, in
a timely manner or at all.
The company has retained Credit Suisse to serve as the dealer
manager and solicitation agent for the tender offer and the
consent solicitation. Questions regarding the tender offer and
the consent solicitation may be directed to 212-325-4951
(collect). Requests for documents may be directed to Morrow &
Co., the Information Agent for the tender offer, at 800-607-0088.
The tender offer and consent solicitation is being made solely by
means of the tender offer documents.
About Ferro Corporation
Based in Cleveland, Ohio, Ferro Corporation (NYSE: FOE) --
http://www.ferro.com/-- is a producer of specialty chemicals
including coatings, enamels, pigments, plastic compounds, and
specialty chemicals for use in industries ranging from
construction, pharmaceuticals and telecommunications. The company
has approximately 6,300 employees worldwide. Ferro operates
through these five primary business segments: Performance
Coatings, Electronic Materials, Color and Performance Glass
Materials, Polymer Additives, and Specialty Plastics. Ferro Corp.
has locations in Argentina, Australia, Belgium, Brazil, China,
among others.
* * *
As reported in the Troubled Company Reporter on June 25, 2008,
Moody's Investors Service assigned a B2 rating to Ferro
Corporation's new $200 million senior unsecured notes due 2016.
Moody's also affirmed the company's other ratings (B1 corporate
family rating).
FITCH OIL: Voluntary Chapter 11 Case Summary
--------------------------------------------
Debtor: Fitch Oil Company, Inc.
dba Fitch Oil Co., Inc.
P.O. Box 27
Holly Springs, MS 38635
Bankruptcy Case No.: 08-12812
Chapter 11 Petition Date: July 21, 2008
Court: Northern District of Mississippi (Aberdeen)
Debtor's Counsel: David J. Cocke, Esq.
(dcocke@bogatin.com)
1661 International Place Drive
Suite 300
Memphis, TN 38120-1431
Tel: (901) 767-1234
Fax: (901) 767-2803
Estimated Assets: $1,000,000 to $10,000,000
Estimated Debts: $1,000,000 to $10,000,000
The Debtor did not file a list of its 20 largest unsecured
creditors.
GARDNER DENVER: S&P's 'BB-' Rating Unmoved by $395MM CompAir Deal
-----------------------------------------------------------------
Standard & Poor's Ratings Services said that its ratings and
outlook on Gardner Denver Inc. (GDI; BB-/Positive/--) are not
affected by GDI's announcement that it has reached agreements to
acquire compressor manufacturer CompAir Holdings Ltd. for
approximately $395 million, including assumption of existing debt.
The transaction is expected to close in the fourth quarter of
fiscal 2008 and would enhance GDI's product and geographic
offering in the global industrial compressor market. The company
has indicated that it will finance the transaction with excess
available cash and new credit facilities. At this stage, S&P do
not expect this development to affect the existing 'BB-' issue-
level rating on GDI's $125 million unsecured notes. S&P will
review the recovery rating on these notes after the transaction
closes.
Over the past two years GDI has applied free cash flow toward debt
reduction, gradually building up capacity for acquisitions. Pro
forma for the CompAir transaction, GDI's credit measures as of
March 31, 2008, should be funds from operations to total debt of
about 35% and adjusted total to EBITDA slightly above 2.0x,
compared to S&P's expectations for the rating of 15%-20% and 3.5-
4.0x, respectively. The outlook remains positive. Although S&P
expects GDI will continue an aggressive growth strategy that
relies on debt-financed acquisitions, it could raise the rating by
one notch if management demonstrates a commitment to pursue
financial policies that are consistent with a higher rating.
GEMINI AIR: Section 341(a) Meeting Scheduled for July 29
--------------------------------------------------------
The U.S. Trustee for Region 21 will convene a meeting of Gemini
Air Cargo, Inc. and its debtor-affiliates' creditors on July 29,
2008, at 2:00 p.m., at the Claude Pepper Federal Building, 51
Southwest First Avenue, Room 1021, in Miami, Florida.
This is the first meeting of creditors required under Section
341(a) of the U.S. Bankruptcy Code in all bankruptcy cases.
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.
Based in Dulles Virginia, Gemini Air Cargo, Inc. --
http://www.geminiaircargo.com/-- provides airfreight services.
It operates cargo schedules and charters on a wet-lease basis.
The Debtor and its debtor-affiliates filed for Chapter 22
protection on June 18, 2008, (Bankruptcy S.D. Fla. Case No.: 08-
18175 to 08-18179) Paul Steven Singerman, Esq. at Berger Singerman
P.A. represents the Debtors in their restructuring efforts. The
Debtor's financial condition as of the petition date showed
estimated assets and debts of $100 million to $500 million.
The Debtor and its debtor-affiliate first filed for chapter 11
protection on March 15, 2006, (Bankr. S.D. Florida Case Nos. 06-
10870 and 06-10872). Kourtney P. Lyda, Esq., at Haynes and Boone,
LLP, represents the Debtor. The Debtors emerged from bankruptcy
five months later.
GREEKTOWN CASINO: To Hire 400 Workers for Permanent Casino Hotel
----------------------------------------------------------------
Greektown Casino Inc. and its debtor-affiliates began the process
of hiring about 400 full-time workers to staff its permanent
casino hotel, which will open early next year. Some of the
workers will start as early as August.
The Greektown Casino's 30-story hotel, currently under
construction, rises in the heart of Detroit's entertainment
district. The 400-room hotel is scheduled to open in early 2009
and will include restaurants, a fitness center, and state-of-the-
art meeting and convention space.
The casino has partnered with the Detroit Workforce Development
Department to recruit as many qualified Detroit residents as
possible. Starting immediately, DWDD staff will pre-screen
candidates for the casino hotel jobs at four DWDD service centers.
Applicants who meet pre-screening criteria will be invited to
attend a recruitment event later in the month where they will
be interviewed and receive professional image information, life
skills information, and more. Only pre-screened applicants will
be invited to the recruitment event and be considered for jobs in
the hotel.
"We're seeking high-caliber applicants from the City of Detroit
and elsewhere to staff what will be a world-class hotel resort,"
said Greektown Casino CEO Craig Ghelfi. "The people we hire to
staff our hotel must demonstrate an ability to deliver the
exemplary guest service for which we are known."
Positions are available in the areas of hotel services, catering,
banquet services, housekeeping and environmental services,
restaurant management, engineering and facilities, food and
beverage, security and safety, purchasing, sales and more.
"This partnership is another example of our ongoing efforts to
connect Detroiters with new careers opportunities in emerging
industries, said Mayor Kwame M. Kilpatrick. "Our Workforce
Development Department is working diligently to get as many
Detroit residents pre-screened as possible so they can be
considered for jobs that offer good pay and benefit packages."
Residents interested in applying need to visit one of the
DWDD locations for pre-screening:
DWDD Service Center Downtown
455 West Fort Street
Detroit, MI 48226
Tel: (313) 962-9675
DWDD Service Center East
5555 Conner
Detroit, MI 48213
Tel: (313) 579-4925
DWDD Service Center North/New Center
707 West Milwaukee
Detroit, MI 48202
Tel: (313) 873-7321
DWDD Service Center Southwest
9301 Michigan Avenue
Detroit, MI 48210
Tel: (313) 846-2240
Greektown Casino's expanded gaming floor is scheduled to open in
late August 2008, and the hotel is scheduled to open in early
2009.
In November 2007, Greektown Casino opened its new attached parking
structure, marking the completion of Phase 1 construction work on
the new permanent Greektown Casino. Phase 2 includes construction
of the casino's new 400-room hotel and expanded gaming floor. The
permanent casino and hotel will include a multi-purpose theater,
buffet, three restaurants, and 25,000 square feet of additional
gaming space. Total investment in the permanent Greektown Casino
project will be about $500 million.
About Greektown Casino
Based in Detroit, Michigan, Greektown Holdings, LLC and its
affiliates -- http://www.greektowncasino.com/-- operate world-
class casino gaming facilities located in Detroit's historic
Greektown district featuring over 75,000 square feet of casino
gaming space with more than 2,400 slot machines, over 70 tables
games, a 12,500-square foot salon dedicated to high limit gaming
and the largest live poker room in the metropolitan Detroit gaming
market.
Greektown Casino employs approximately 1,971 employees, and
estimates that it attracts over 15,800 patrons each day, many of
whom make regular visits to its casino complex and related
properties. In 2007, Greektown Casino achieved a 25.6% market
share of the metropolitan Detroit gaming market. Greektown Casino
has also been rated as the "Best Casino in Michigan" and "Best
Casino in Detroit" numerous times in annual readers' polls in
Detroit's two largest newspapers.
The company and seven of its affiliates filed for Chapter 11
protection on May 29, 2008 (Bankr. E.D. Mich. Lead Case No. 08-
53104). Daniel J. Weiner, Esq., Michael E. Baum, Esq., and Ryan
D. Heilman, Esq., at Schafer and Weiner PLLC, represent the
Debtors in their restructuring efforts. Judy B. Calton, Esq., at
Honigman Miller Schwartz and Cohn LLP, represents the Debtors as
their special counsel. The Debtors chose Conway MacKenzie &
Dunleavy as their financial advisor, and Kurtzman Carson
Consultants LLC serves as the Debtors' claims, noticing, and
balloting agent.
When the Debtor filed for protection from its creditors, it listed
consolidated estimated assets and debts of $100 million to
$500 million. (Greektown Casino Bankruptcy News, Issue No. 8;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
GREEKTOWN CASINO: Court Approves Kurtzman Carson as Claims Agent
----------------------------------------------------------------
Greektown Casino Inc. and its debtor-affiliates obtained authority
from the U.S. Bankruptcy Court for the Eastern District of
Michigan to employ and retain Kurtzman Carson Consultants LLC as
their claims, noticing and balloting agent.
The proposed counsel for Greektown Casino LLC and its debtor-
affiliates, Ryan Heilman, Esq., at Schafer and Weiner, PLLC, in
Bloomfield Hills, Michigan, said the Debtors have identified
hundreds of entities or persons to which notices must be given,
making the employment of an outside claims and noticing agent
necessary in the Debtors' bankruptcy cases.
The Debtors believe that the noticing and receiving, docketing
and maintaining of proofs of claim would impose heavy
administrative and other burdens upon the Court and the Office of
the Clerk of Court.
Mr. Heilman related that preparing and serving the notices on all
of the Debtors' creditors and parties in interest, and docketing
and maintaining the large number of proofs of claim that may be
filed in their Chapter 11 cases would strain the resources of the
Clerk's Office.
Mr. Heilman noted that Kurtzman is well-qualified to perform
claims processing and the various services to the Debtors because
the firm specializes in providing data processing services to
Chapter 11 debtors in connection with administration and
reconciliation of claims, as well as administration of plan
balloting.
As claims agent, Kurtzman is expected to, among others:
(a) prepare and serve required notices in the Debtors'
Chapter 11 cases, which include:
(1) notice of commencement of the Chapter 11 cases and
the initial meeting of creditors pursuant to
Section 341(a) of the Bankruptcy Code;
(2) notice of the claims bar date, if any;
(3) notice of objections to claims;
(4) notice of any hearings on a disclosure statement
and confirmation of a plan of reorganization; and
(5) other miscellaneous notices to any entities, as the
Debtors or the Court may deem necessary or appropriate
for an orderly administration of their Chapter 11
cases;
(b) prepare for filing with the Court a certificate or
affidavit of service that includes an alphabetical list of
persons to whom the mailing;
(c) receive and record proofs of claim and proofs of interest
filed;
(d) create and maintain official claims registers, including
these information for each proof of claim or proof of
interest:
(1) the name of the Debtor;
(2) the name and address of the claimant and any agent, if
the proof of claim or proof of interest was filed by an
agent;
(3) the date received;
(4) the claim number assigned; and
(5) the asserted amount and classification of the claim;
(e) implement necessary security measures to ensure the
completeness and integrity of the claims registers; and
(f) transmit to the Clerk's Office a copy of the claims
registers upon request or at agreed upon intervals.
(g) perform other administrative and support services related
to noticing, claims, docketing, solicitation and
distribution as the Debtors or the Clerk's Office may
request.
The Debtors further obtained the Court's authority to permit
Kurtzman to act as a noticing agent for any official committees
that will be formed in the Debtors' Chapter 11 cases. In
addition, the Debtors propose that any noticing expenses incurred
by an official committee to become an obligation of the Debtors'
estates.
The Debtors will retain Kurtzman pursuant to the compensation
rates of the Engagement Agreement dated May 28, 2008, between the
Debtors and Kurtzman.
The Debtors will pay a $50,000 retainer to Kurtzman for services
performed and expenses incurred. The Debtors will also pay
Kurtzman for reasonable expenses for transportation, lodging,
meals, publications, postage and other third-party charges. If
those expenses aggregate more than $10,000 in any month, Kurtzman
will require an advance payment from the Debtors.
To the best of the Debtors' knowledge, Kurtzman is a
"disinterested person" as that term defined in Section 101(14) of
the Bankruptcy Code, as modified by Section 1107(b), and does not
hold or represent an interest adverse to the Debtors' estates.
In a separate filing with the Court, Leslie K. Berg, Esq., in
behalf of the Office of the United States Trustee for Region 9,
told the Court that the U.S. Trustee gives it consent to the
Debtors' application to employ Kurtzman.
The Court said that Kurtzman is not required to file applications
for compensation with the Court. The Court, however, directed
Kurtzman to submit monthly invoices to the Debtors, with copies to
be provided to the Debtors' counsel, the Office of the United
States Trustee, and counsel for any official committees formed in
the Debtors' Chapter 11 cases. The Court authorized the Debtors
to pay Kurtzman's invoices if no objections to those invoices are
received within 15 days of service.
About Greektown Casino
Based in Detroit, Michigan, Greektown Holdings, LLC and its
affiliates -- http://www.greektowncasino.com/-- operate world-
class casino gaming facilities located in Detroit's historic
Greektown district featuring over 75,000 square feet of casino
gaming space with more than 2,400 slot machines, over 70 tables
games, a 12,500-square foot salon dedicated to high limit gaming
and the largest live poker room in the metropolitan Detroit gaming
market.
Greektown Casino employs approximately 1,971 employees, and
estimates that it attracts over 15,800 patrons each day, many of
whom make regular visits to its casino complex and related
properties. In 2007, Greektown Casino achieved a 25.6% market
share of the metropolitan Detroit gaming market. Greektown Casino
has also been rated as the "Best Casino in Michigan" and "Best
Casino in Detroit" numerous times in annual readers' polls in
Detroit's two largest newspapers.
The company and seven of its affiliates filed for Chapter 11
protection on May 29, 2008 (Bankr. E.D. Mich. Lead Case No. 08-
53104). Daniel J. Weiner, Esq., Michael E. Baum, Esq., and Ryan
D. Heilman, Esq., at Schafer and Weiner PLLC, represent the
Debtors in their restructuring efforts. Judy B. Calton, Esq., at
Honigman Miller Schwartz and Cohn LLP, represents the Debtors as
their special counsel. The Debtors chose Conway MacKenzie &
Dunleavy as their financial advisor, and Kurtzman Carson
Consultants LLC serves as the Debtors' claims, noticing, and
balloting agent.
When the Debtor filed for protection from its creditors, it listed
consolidated estimated assets and debts of $100 million to
$500 million. (Greektown Casino Bankruptcy News, Issue No. 8;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
GREEKTOWN CASINO: Can Hire Schafer & Weiner as Bankruptcy Counsel
-----------------------------------------------------------------
Greektown Holdings LLC and its debtor-affiliates obtained
permission from the U.S. Bankruptcy Court for the Eastern District
of Michigan to employ Schafer and Weiner PLLC as their general
bankruptcy counsel.
As general bankruptcy counsel, Schafer and Weiner is expected to
represent and assist the Debtors in all facets of their Chapter 11
cases and reorganization proceedings.
Pursuant to a Retention Letter Agreement dated May 28, 2008, the
Debtors will pay these Schafer attorneys these hourly rates:
Attorney Hourly Rate
-------- -----------
Daniel J. Weiner $390
Michael E. Baum $390
Howard M. Borin $295
Joseph K. Grekin $260
Michael R. Wernette $260
Ryan D. Heilman $260
Leon N. Mayer $195
Kim K. Hilary $180
Todd M. Schafer $150
Tracey L. Porter $145
John J. Stockdale $140
The Debtors also proposed that Schafer and Weiner's legal
assistants be paid $120 per hour. In addition, the Debtors noted,
the proposed fees for Schafer includes a $100,000 retainer, which
include the filing fees, plus an agreement to fund escrow
payments subject to Court approval in accordance with a budget
that has been approved by the Debtors, and their prepetition and
proposed postpetition lenders.
Daniel J. Weiner, Esq., a principal at Schafer and Weiner,
assured the Court that his firm does not hold or represent any
interest materially adverse to the interest of the Debtors and
their estates. He adds that the firm is a "disinterested person"
within the meaning of Section 101(14), as modified by Section
1107(b) of the U.S. Bankruptcy Code.
About Greektown Casino
Based in Detroit, Michigan, Greektown Holdings, LLC and its
affiliates -- http://www.greektowncasino.com/-- operate world-
class casino gaming facilities located in Detroit's historic
Greektown district featuring over 75,000 square feet of casino
gaming space with more than 2,400 slot machines, over 70 tables
games, a 12,500-square foot salon dedicated to high limit gaming
and the largest live poker room in the metropolitan Detroit gaming
market.
Greektown Casino employs approximately 1,971 employees, and
estimates that it attracts over 15,800 patrons each day, many of
whom make regular visits to its casino complex and related
properties. In 2007, Greektown Casino achieved a 25.6% market
share of the metropolitan Detroit gaming market. Greektown Casino
has also been rated as the "Best Casino in Michigan" and "Best
Casino in Detroit" numerous times in annual readers' polls in
Detroit's two largest newspapers.
The company and seven of its affiliates filed for Chapter 11
protection on May 29, 2008 (Bankr. E.D. Mich. Lead Case No. 08-
53104). Daniel J. Weiner, Esq., Michael E. Baum, Esq., and Ryan
D. Heilman, Esq., at Schafer and Weiner PLLC, represent the
Debtors in their restructuring efforts. Judy B. Calton, Esq., at
Honigman Miller Schwartz and Cohn LLP, represents the Debtors as
their special counsel. The Debtors chose Conway MacKenzie &
Dunleavy as their financial advisor, and Kurtzman Carson
Consultants LLC serves as the Debtors' claims, noticing, and
balloting agent.
When the Debtor filed for protection from its creditors, it listed
consolidated estimated assets and debts of $100 million to $500
million. (Greektown Casino Bankruptcy News, Issue No. 8;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
GSRPM MORTGAGE: S&P Lowers Ratings on Six Classes of Certificates
-----------------------------------------------------------------
Standard & Poor's Ratings Services lowered its ratings on six
classes of mortgage pass-through certificates issued by GSRPM
Mortgage Loan Trust 2007-1. In addition, S&P affirmed its rating
on the class A certificates from this series.
The lowered ratings reflect pool performance that has caused
actual and projected credit support for the affected classes to
decline. This transaction has experienced losses that have eroded
overcollateralization to $15,067,843.60 from its target level of
$21,791,102.24, which resulted in a deficiency of approximately
$6,723,258.
As of the June 2008 remittance period, cumulative realized losses
were 5.79%, up from 0.20% one year ago. Likewise, in June 2008,
total delinquencies were 46.73% of the current pool balance, in
contrast to 38.98% one year ago. While severe delinquencies
were 32.90% in the June period, they were 20.57% one year ago.
As a result of poor collateral performance and escalating
delinquencies, monthly net losses have outpaced monthly excess
interest in seven out of 12 remittance periods, or 58.33% over the
past year. Moreover, losses have averaged approximately 1.92x
monthly excess interest over the past year.
S&P believe that the deal's performance trends over the course of
the past six months are the main driver of its current loss
levels. This is indicated by the fact that losses outpaced excess
interest in six out of six remittance periods, or 100% of the
time. Moreover, losses have averaged approximately 3.11x monthly
excess interest over the past year.
These performance trends have caused projected credit support for
the transaction to fall below the required level. Standard &
Poor's will continue to closely monitor the performance of this
transaction. If the transaction incurs further losses and
delinquencies continue to erode projected credit support, S&P will
likely take further negative rating actions.
This transaction is 14 months seasoned and has a pool factor of
80.88%. Subordination, excess interest, and O/C provide credit
support for this transaction. The underlying collateral backing
the certificates originally consisted of a pool of scratch-and-
dent fixed- and adjustable-rate mortgage loans secured by first
and second liens on one- to four-family residential properties.
Ratings Lowered
GSRPM Mortgage Loan Trust 2007-1
Mortgage pass-through certificates
Rating
------
Class To From
----- -- ----
M-1 A+ AA+
M-2 BBB AA
B-1 BB- A
B-2 B+ BBB+
B-3 B BBB+
B-4 B- BBB
Rating Affirmed
GSRPM Mortgage Loan Trust 2007-1
Mortgage pass-through certificates
Class Rating
----- ------
A AAA
HERITAGE BUILDING: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------------
Debtor: The Heritage Building, L.L.C.
1628 N. Columbia Blvd.
Portland, OR 97217
Bankruptcy Case No.: 08-33599
Chapter 11 Petition Date: July 21, 2008
Court: District of Oregon
Judge: Trish M. Brown
Debtor's Counsel: Albert N. Kennedy, Esq.
Email: al.kennedy@tonkon.com
888 S.W. 5th Ave., Ste. 1600
Portland, OR 97204
Tel: (503) 802-2013
Total Assets: $4,828,350
Total Debts: $4,434,493
A copy of the Debtor's petition is available for free at:
http://bankrupt.com/misc/orb08-33599.pdf
INTEGRATED HEALTHCARE: Dr. Chaudhuri Provides Additional $10.7MM
----------------------------------------------------------------
Integrated Healthcare Holdings Inc. entered into a securities
purchase agreement with Kali P. Chaudhuri M.D. to provide
additional equity investment in the company. Under the securities
purchase agreement, Dr. Chaudhuri agreed to invest up to
$10,700,000 in additional equity in IHHI.
Dr. Chaudhuri has invested $3,731,732 through the exercise of
outstanding warrants to purchase 24,878,213 shares of common stock
at an exercise price of $0.15 per share. In addition,
Dr. Chaudhuri paid an additional $50,000 for the right to invest
up to an additional $6,968,268 in IHHI through the purchase of
63,347,891 additional shares of common stock at $0.11 per share.
The purchase right can be exercised by Dr. Chaudhuri from Aug. 1,
2008 through Jan. 10, 2009, and is subject to IHHI satisfying
certain conditions on or prior to closing. IHHI also agreed to
register for resale securities owned by Dr. Chaudhuri and
William E. Thomas after demand pursuant to the securities purchase
agreement.
The purchase agreement provides Dr. Chaudhuri and Mr. Thomas with
certain pre-emptive rights to maintain their respective levels of
ownership of IHHI's common stock by acquiring additional equity
securities concurrent with future issuances by IHHI of equity
securities or securities or rights convertible into or exercisable
for equity securities. These pre-emptive and registration rights
superseded and replaced their existing pre-emptive and
registration rights.
Concurrently with the execution of the securities purchase
agreement, IHHI and its subsidiaries entered into an early loan
payoff agreement with Medical Provider Financial Corporation III,
which holds a $10,700,000 convertible term note issued by IHHI on
Oct. 9, 2007. Under the early loan payoff agreement, IHHI used
the proceeds from the warrant exercise, and will use any
additional proceeds that it receives from Dr. Chaudhuri, to pay
down the $10,700,000 convertible term note.
Also under the early loan payoff agreement, Medical Provider
Financial Corporation I granted IHHI the right to extend the
maturity date under its $80 Million Credit Agreement by one year,
and Medical Provider Financial Corporation II granted IHHI the
right to extend the maturity date under its $50 Million Credit
Agreement by one year, subject to certain conditions including the
full early payoff of the $10,700,000 convertible term note. IHHI
also provided general releases, waivers and covenants not to sue
to its lenders following the payoff in full of the $80 million
credit agreement and $50 million credit agreement.
About Integrated Healthcare
Based in Santa Ana, California, Integrated Healthcare Holdings
Inc. (OTC BB: IHCH) is a partially physician-owned management
company that operates the following four hospital facilities in
Orange County, California: 282-bed Western Medical Center in Santa
Ana; 188-bed Western Medical Center in Anaheim; 178-bed Coastal
Communities Hospital in Santa Ana; and 114-bed Chapman Medical
Center in Orange.
At March 31, 2008, the company's selected balance sheet data
showed stockholders' deficit of $48.2 million.
INTERPUBLIC GROUP: Fitch Rates $335MM Credit Facility 'BB+'
-----------------------------------------------------------
Fitch Ratings has assigned a 'BB+' rating to the Interpublic Group
of Companies' $335 million three year revolving credit facility.
The Rating Outlook remains Positive.
Fitch's rates IPG as:
-- Issuer Default Rating 'BB+';
-- Enhanced Liquidity Facility 'BB+';
-- Credit Facility 'BB+';
-- Senior unsecured notes (including convertibles) 'BB+';
-- Cumulative convertible perpetual preferred stock 'BB-';
Fitch has rated the $335 million credit facility, due in 2011,
'BB+' as this facility is pari pasu with the existing $750 million
ELF and other unsecured indebtedness. The ELF is expected to
remain in place through its expiration in June 2009. In the past
five years IPG has only used bank and ELF capacity for letters of
credit. The new facility will provide $200 million in LOC
capacity. The establishment of the credit facility is in line
with Fitch's expectations that IPG would be proactive in
addressing its backup liquidity position in advance of the ELF
expiration.
The credit facility contains three key covenants which provide
limited room for deterioration in operating performance. First,
the facility includes a minimum Last Twelve Months EBITDA of
$600 million, which excludes up to $75 million of non-cash
impairments. On an LTM basis, this covenant is relatively tight
(Fitch estimates that all else equal, a 15% decline in EBITDA
could position the company to violate the covenant), however Fitch
expects further growth in EBITDA through 2008 and 2009 from cost
rationalization and operating leverage even amid a weakening
economy. The second covenant is a maximum total debt to LTM
EBITDA of 3.5times in 2008, stepping down to 3.25x in 2009 and to
3.0x in 2010. Based on Fitch calculations, leverage for the last
twelve months ended March 31, 2008 was 3.25x.
The company should have the flexibility to meet the step downs
through EBITDA growth and some modest debt repayment. The third
covenant is minimum LTM EBITDA to interest coverage of 4.5x.
Fitch notes the ratio is calculated on a net basis and includes
preferred dividends. Fitch's current estimate is approximately
4.8x, also providing limited room for deterioration. The facility
also allows for a restricted payments basket of $600 million that
can be used for capital expenditures, cash acquisitions, share
repurchases and dividends on common stock. If leverage is below
2.75x the company has the ability to roll $200 million of the
unused balance to the subsequent year.
As of March 31, 2008, IPG's liquidity position is supported by
$1.5 billion in cash and equivalents. Net of $223 million in LOC,
the company had approximately $527 million available under its
$750 million ELF. Near-term maturities include $250 million notes
due November 2009, and the ELF facility, which expires in June
2009.
Separately, Fitch also reiterates that while IPG's 2008 goals of
peer level organic growth and operating margin above 8.5% could be
attainable, Fitch recognize that there could be some slowdown in
client spending in the current economic environment. Taking on
low-margin business or cutting staff costs imprudently to meet
growth or margin targets may not be best for the longer term
health of the company. Fitch is satisfied with the trajectory of
progress even if IPG were to fall short of meeting its 2008 goals.
The prospect of an economic downturn is factored into our current
rating and outlook.
LAFFERTY HOMES: Files for Bankruptcy Under Chapter 7 in California
------------------------------------------------------------------
Christopher Scinta of Bloomberg News reports that Lafferty Home
Inc. filed a voluntary petition under Chapter 7 before the United
States Bankruptcy Court in Oakland, California, after lenders
opted to withdraw financing on the company's projects.
"Lafferty Homes had a large number of projects, many of which are
were in financial distress," Bloomberg quoted a person with
knowledge of the matter.
The company's owner, Richard Lafferty, also filed for bankruptcy,
Mr. Scinta notes.
According to papers filed with the Court, the company listed
assets of between $10 million and $50 million, and debt of between
$100 million and $500 million.
Lafferty Homes did not file a list of 20 largest unsecured
creditors, Bloomberg says. Unsecured creditors are expected to
recover nothing, the reports adds.
Lafferty Homes, the report says, has joined several homebuilders
that filed for bankruptcy including TOUSA Inc., Levitt & Sons LLC
and Kimball Hill Inc.
Headquartered in San Ramon, California, Lafferty Homes Inc. --
http://www.laffertyhomes.com/-- builds houses.
LEINER HEALTH: Files Chapter 11 Plan and Disclosure Statement
-------------------------------------------------------------
Leiner Health Products Inc. and its debtor-affiliates delivered to
the Hon. Kevin J. Carey of the United States Bankruptcy Court for
the District of Delaware a joint Chapter 11 plan of liquidation
and a disclosure statement describing that plan.
A hearing is set for Aug. 21, 2008, at 11:00 a.m., to consider the
adequacy of the Debtors' disclosure statement. Objections, if
any, are due Aug. 14, 2008, by 4:00 p.m. The hearing will take
place at 824 Market Street, 5th Floor, Courtroom No. 5 in
Wilmington, Delaware.
Overview of the Plan
The plan contemplates the liquidation of the each of the
Debtors' assets, the appointment of a liquidating trustee, and the
creation of a three-member liquidating trust committee, which
consist of one representative selected by the Debtors and two
members appointed by the Official Committee of Unsecured
Creditors.
Furthermore, the plan provides the creation of a liquidating trust
for, among other things, (i) resolving all disputed claims, (ii)
pursuing the causes of action, and (iii) making all distribution
to the beneficiaries provided under the plan
The plan classifies interests against and claims in the Debtors in
five classes. The classification of interests and claims are:
Treatment of Interests and Claims
Type Estimated Estimated
Class of Claims Treatment Amount Recovery
----- --------- --------- ---------- ---------
unclassified administrative $5,333,499 100%
claims
unclassified priority tax $885,792 100%
claims
unclassified other priority 100%
claims
1 secured lender impaired $285,538,106 100%
claims
2 other secured unimpaired $343,438 100%
claims
3 general impaired $211,886,293 6%
unsecured
claims
4 cancelled impaired $139,239,126 0%
intercompany
claims
5 equity interest impaired -- 0%
Class 1 and 3 are entitled to vote for the plan. Under Chapter 7
liquidation, Class 1 is expected to recover between 18% and 26%,
while Class 3 will get nothing.
Administrative, priority tax and other priority claims will be
paid in full.
Holder of Class 1 secured lender claims will receive on behalf of
itself and the senior secured lenders payment in cash equal to the
full amount of the allowed secured lender claim.
Each holder of Class 2 other secured claims will get receive
either (i) the collateral secured the claims, or (ii) cash in an
amount equal to the value of the claims, but not exceeding the
value of the collateral securing the claim.
Each holder of Class 3 general unsecured claims will receive in
full its pro rata share of the liquidating trust fund.
Class 4 and 5 will not receive any distribution on account of
their claims under the plan.
A full-text copy of the Debtors' Disclosure Statement is available
for free at
http://ResearchArchives.com/t/s?2fc4
A full-text copy of the Debtors' Joint Chapter 11 Plan of
Liquidation is available for free at
http://ResearchArchives.com/t/s?2fc5
Asset Sale & Settlements
On July 14, 2008, NBTY Inc., the designated stalking-horse bidder,
completed the sale of the Debtors' assets for $371,000,000 in
cash, plus the assumption of about $30,000,000 of trade payables
and a purchase price adjustment. According to court documents,
the sale proceeds may be sufficient to satisfy the claims of the
Debtors' senior secured lender in full, but it may not be enough
to provide a recovery to unsecured creditors.
Before the closing of the sale, the Court approved the Debtors'
proposed assets sale incentive program to pay $24,000,000 in
bonuses to nine insiders, who are members of the Debtors' senior
management team, pursuant to an asset sale incentive program dated
April 1, 2008. However, the Official Committee of Unsecured
Creditors asked the Court to reduce the amount of bonuses to
$10,000,000, which is to be awarded to the insiders.
As a result, the Debtors filed on July 10, 2008, a settlement
agreement before the Court seeking to approve, among other
things:
i) the payment of at most $8,000,000 that may result in an
reallocation of the proceeds of the incentive program to
ensure a guaranteed minimum distribution to holders of
unsecured claims, and
ii) the payment of at least $249,500,000 of the allowed secured
lender claims
Debtor-In-Possession Financing
On April 8, 2008, the Court authorized the Debtors to obtain, on a
final basis, up to $74,000,000 in postpetition financing from UBS
AG, Standford Branch, as issuing bank and administrative agent;
UBS Securities LLC and General Electric Capital Corporation as
joint lead arrangers; UBS Securities LLC as sole book-runner,
syndication agent and documentation agent; UBS Loan Finance LLC as
swingline lender.
The committed $74,000,000 financing was comprised of (a) a
$18,000,000 term A loan facility; (b) a $44,000,000 term B loan
facility; and (c) a $12,000,000 revolving loan facility including
availability for letters of credit and swingline loans.
On July 14, 2008, the DIP facility was terminated after the Debtor
paid in full the claims under the DIP agreement.
The Debtors asked the Court to further extend their exclusive
periods to (i) file a Chapter 11 plan until Sept. 30, 2008, and
(ii) solicit acceptances of that plan until Nov. 30, 2008. A
hearing is set for July 30, 2008, to consider the Debtors'
request.
About Leiner Health
Based in Carson, California, Leiner Health Products Inc. --
http://www.leiner.com/-- manufactures and supplies store brand
vitamins, minerals and nutritional supplements products, and over-
the-counter pharmaceuticals in the US food, drug and mass merchant
and warehouse club retail market. In addition to its primary
VMS and OTC products, they provide contract manufacturing
services. During the fiscal year ended March 31, 2007, the VMS
business comprised approximately 61% of net sales. On March 20,
2007, they voluntarily suspended the production and distribution
of all OTC products manufactured, packaged or tested at its
facilities in the US.
The company filed for Chapter 11 protection on March 10, 2008
(Bankr. D. Del. Lead Case No.08-10446). Jason M. Madron, Esq.,
and Mark D. Collins, Esq., at Richards, Layton & Finger, P.A.,
represent the Debtors. The Debtors selected Garden City Group
Inc. as noticing, claims and balloting agent. The U.S. Trustee
for Region 3 appointed creditors to serve on an Official Committee
of Unsecured Creditors in these cases. The Committee selects Saul
Ewing LLP as its counsel.
As reported in the Troubled Company Reporter on April 10, 2008,
the Debtors' schedules of assets and liabilities showed total
assets of $133,412,547 and total debts of $477,961,526.
LINENS N THINGS: Wants to Employ Ernst & Young as Auditors
----------------------------------------------------------
Linens 'N Things and its debtor-affiliates seek the authority of
the United States Bankruptcy Court for the District of Delaware to
employ Ernst & Young, LLP as accountants and auditors to provide
certain accounting and auditing services, pursuant to the terms of
an engagement letter dated May 14, 2008.
As accountants, Ernst & Young will:
(a) audit and report on the consolidated financial statements
of the Debtors for the year ended December 27, 2008; and
(b) review the Debtors' unaudited interim financial
information before the they file their Form 10-Q;
Mark D. Collins, Esq., at Richards, Layton & Finger P.A., in
Wilmington, Delaware, relates that Ernst & Young is familiar with
the Debtors' books and records, business operations and corporate
structure because the firm has been employed as accountant and
auditors to the Debtors since April 12, 2007. He contends that
the familiarity will allow Ernst & Young to serve the bankruptcy
estates more efficiently than any other accounting firm without
Ernst & Young's knowledge and experience.
Pursuant to the terms and conditions of the Engagement Letter,
Ernst & Young will be paid based on its discounted hourly rates:
Partners and Principals $441
Senior Managers/Managers $341
Seniors $210
Staff $126
In addition, the Debtors will also reimburse Ernst & Young for
any direct expenses incurred in connection with its retention,
including reasonable and customary out-of-pocket expenses for
travel, meals, and accommodations.
Timothy Tracy, a partner at Ernst & Young, assures the Court that
his firm is a "disinterested person" within the meaning of
Section 101(14) of the Bankruptcy Code, and holds no interest
materially adverse to the Debtors, their creditors, and
shareholders for the matters for which Ernst & Young is to be
employed.
Linens 'N Things has secured a $700 million debtor-in-possession
financing from General Electric Capital Corp. The company plans
to be out of chapter 11 by the end of the year, on this timetable:
09/14/2008 DIP Facility Deadline for Filing a Chapter 11 Plan
10/14/2008 DIP Facility Deadline for Disclosure Statement
Approval
11/18/2008 DIP Facility Deadline for Soliciting Votes on Plan
11/28/2008 DIP Facility Deadline for Entry of a Confirmation
Order
Linens 'N Things is represented by Richards, Layton & Finger,
P.A., and Morgan, Lewis & Bockius LLP. Conway, Del Genio, Gries &
Co., LLC serves as the retailer's restructuring advisor until
substantial consummation of a chapter 11 plan. Conway Del Genio's
Michael F. Gries acts as the Debtors' chief restructuring officer
and interim CEO. Kurtzman Carson Consultants LLC acts as the
Debtors' claims agent.
A Noteholder Committee has been formed and is represented by
Kasowitz, Benson, Torres & Friedman LLP, and Pachulski Stang Ziehl
& Jones.
(Bankruptcy News About Linens 'n Things, Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000)
MAJESTIC POINTE: Case Summary & Six Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Majestic Pointe Development Co., L.L.C.
1512 Old U.S. Hwy. 40 E.
Columbia, MO 65202
Bankruptcy Case No.: 08-21283
Chapter 11 Petition Date: July 22, 2008
Court: Western District of Missouri (Jefferson City)
Debtor's Counsel: Thomas G. Stoll, Esq.
Email: tstoll@browndunn.com
Brown & Dunn, P.C.
911 Main St., Ste. 2300
Kansas City, MO 64105
Tel: (816) 292-7000
Fax: (816) 292-7050
http://www.browndunn.com/
Estimated Assets: $10,000,000 to $50,000,000
Estimated Debts: $10,000,000 to $50,000,000
Debtor's Six Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Kidwell Construction, Inc. Construction $4,919,801
P.O. Box 100 expenses
Kingdom City, MO 65262
VanMatre, Harrison, Volkert & Legal fees $4,200
Hollis, P.C.
P.O. Box 1017
Columbia, MO 65205
Welsch, Flatness & Lutz Consulting services $2,803
P.O. Box 790379
Saint Louis, MO 63179-0379
Ganim, Meder, Childers & Legal fees $2,195
Hoering, P.C.
Evelyn Beaver Cleaning services $75
AT&T Phone bill $58
MAMMOTH CBO: S&P Withdraws Ratings After Full Redemption of Notes
-----------------------------------------------------------------
Standard & Poor's Ratings Services withdrew its ratings on the
class A-2L, A-3, B-1, B-1LA, B-1LB, and B-2 notes issued by
Mammoth CBO 2001-1 Ltd., a cash flow arbitrage corporate high-
yield collateralized bond obligation transaction.
The rating withdrawals follow the full redemption of the rated
notes.
Ratings Withdrawn
Mammoth CBO 2001-1 Ltd
Rating Balance
------ -------
Class To From Current Previous
----- -- ---- ------- --------
A-2L NR AAA 0.00 $3,326,000
A-3 NR AAA 0.00 $45,000,000
B-1 NR BBB- 0.00 $15,000,000
B-1LA NR BBB- 0.00 $9,500,000
B-1LB NR BBB- 0.00 $5,000,000
B-2 NR BB 0.00 $15,000,000
NR -- Not rated.
NANDALALL SINGH: Case Summary & 11 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: Nandalall Singh
22701 Ridge Road
Germantown, MD 20876
Bankruptcy Case No.: 08-19390
Chapter 11 Petition Date: July 21, 2008
Court: District of Maryland (Greenbelt)
Debtor's Counsel: Richard B. Rosenblatt, Esq.
Email: rrosenblatt@rosenblattlaw.com
30 Courthouse Square, Suite 302
Rockville, MD 20850
Tel: (301) 838-0098
Estimated Assets: $1 million to $10 million
Estimated Debts: $1 million to $10 million
A list of the Debtor's largest unsecured creditors is available
for free at:
http://bankrupt.com/misc/mdb08-19390.pdf
NEWPORT LIQUORS: Voluntary Chapter 11 Case Summary
--------------------------------------------------
Debtor: Newport Liquors, Inc.
dba L.G. Liquor
dba Richards Market
243 Atlantic Street
Quincy, MA 02171
Bankruptcy Case No.: 08-15327
Chapter 11 Petition Date: July 21, 2008
Court: District of Massachusetts (Boston)
Judge: Joan N. Feeney
Debtor's Counsel: Leonard Ullian, Esq.
(karen@ullianlaw.com)
The Law Office Of Ullian & Associates
220 Forbes Road
Suite 106
Braintree, MA 02184
Tel: (781) 848-5980
Fax: 9781) 848-0819
Estimated Assets: $1,000,000 to $10,000,000
Estimated Debts: $1,000,000 to $10,000,000
The Debtor did not file a list of its 20 largest unsecured
creditors.
NEW YORK HOME: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: New York Home Health Care Equipment, LLC
80 Hooper Street
Westbury, NY 11590
Bankruptcy Case No.: 08-73867
Type of Business: The Debtor provides medical equipment.
See: http://nyhhc.com/
Chapter 11 Petition Date: July 21, 2008
Court: Eastern District of New York (Central Islip)
Judge: Dorothy Eisenberg
Debtors' Counsel: Anthony F. Giuliano, Esq.
(afg@pryormandelup.com)
Pryor & Mandelup
675 Old Country Road
Westbury, NY 11590
Tel: (516) 997-0999
Fax: (516) 333-7333
Estimated Assets: Less than $50,000
Estimated Debts: $1 million to $10 million
A list of the Debtor's largest unsecured creditors is available
for free at http://bankrupt.com/misc/nyeb08-73867.pdf
OVERFIELD COUNTRY: Case Summary & Three Largest Unsec. Creditors
----------------------------------------------------------------
Debtor: Overfield Country Estates (2005), L.L.C.
221 N. Florence Street
Casa Grande, AZ 85222
Bankruptcy Case No.: 08-09001
Chapter 11 Petition Date: July 21, 2008
Court: District of Arizona (Tucson)
Debtors' Counsel: John F. Battaile, Esq.
(jfbattaile@abgattorneys.com)
Altfeld Battaile & Goldman, P.C.
250 N. Meyer Avenue
Tucson, AZ 85701
Tel: (520) 622-7733
Fax: (520) 622-7967
Total Assets: $2,300,200
Total Debts: $1,958,142
A list of the Debtor's largest unsecured creditors is available
for free at:
http://bankrupt.com/misc/arizb08-09001.pdf
PHARMANET DEVELOPMENT: Lenders Agree to Restore $45MM Facility
--------------------------------------------------------------
PharmaNet Development Group Inc. reached an agreement with its
bank lending group, consisting of UBS AG, Stamford Branch and
other financial institutions, to restore the availability of the
company's $45 million senior secured credit facility by obtaining
an amendment to waive and amend certain covenants and terms of the
credit agreement.
UBS AG, Stamford Branch, continues to serve as administrative
agent and collateral agent. As a result of this amendment,
certain financial covenants in the credit agreement, including
certain of the company's covenants to maintain certain financial
ratios, were either waived by the bank or amended by the parties
to reflect the company's current operations and business needs.
The obligations under the credit agreement are secured by
substantially all of the company's assets and are due on Dec. 22,
2009.
The amendment does not affect the total committed amount of the
credit line, potential interest rates on any borrowings or the
remaining term. At this time, the company has no outstanding
balance under the credit agreement and any potential future use
will be for general company purposes.
A copy of the amendment will be filed in the company's next
periodic report.
About PharmaNet Development Group Inc.
Headquartered Princeton, New Jersey, PharmaNet Development Group
Inc. (NASDAQ:PDGI) -- http://www.pharmanet.com/-- fka SFBC
International Inc., is a drug development services company that
provides services to the pharmaceutical, biotechnology, generic
drug, and medical device industries. The company offers clinical-
development solutions including early and late stage consulting
services, Phase I clinical studies and bioanalytical analyses, and
Phase II, III and IV clinical development programs. PharmaNet has
approximately 2,500 employees and more than 41 facilities
throughout the world.
PHONEX BROADBAND: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Phonex Broadband Corporation
6925 High Tech Drive
Midvale, UT 84047
Tel: (801) 566-0100
Bankruptcy Case No.: 08-24636
Type of Business: The Debtor designs, manufactures, and markets
technologies that transmit telephone, data,
audio, and video reliably over electrical wiring
for over 14 years. See http://www.phonex.com
Chapter 11 Petition Date: July 18, 2008
Court: District of Utah (Salt Lake City)
Judge: Judith A. Boulden
Debtor's Counsel: Joseph M. R. Covey, Esq.
Email: jcovey@pwlaw.com
Parr Waddoups Brown Gee & Loveless
185 S. State Street, Suite 1300
Salt Lake City, UT 84111
Tel: (801) 532-7840
Fax: (801) 532-7750
http://pwlaw.com/
Estimated Assets: $1 million to $10 million
Estimated Debts: $10 million to 50 million
A list of the Debtor's 20 largest unsecured creditors is available
for free at:
http://bankrupt.com/misc/utb08-24636.pdf
PIERRE FOODS: Can Employ Kurtzman Carson as Claims Agent
--------------------------------------------------------
Pierre Foods Inc. and its debtor-affiliates obtained permission
from the U.S. Bankruptcy Court for the District of Delaware to
employ Kurtzman Carson Consultants LLC as their claims, notice,
and solicitation agent.
Kurtzman Carson is expected to, among others, prepare and serve a
variety of documents including motions, applications, notices,
Chapter 11 plans or any disclosure statements, handling all proofs
of claim that are filed against the Debtors, and managing a
register of these claims.
Jonathan Carson, the president of Kurtzman Carson, told the Court
that the firm will bill the Debtors these hourly rates:
Clerical $45 - $65
Project Specialist $80 - $140
Consultant $165 - $245
Senior Consultant $255 - $275
Senior Managing Consultant $295 - $325
Technology/Programming Consultant $145 - $195
Mr. Carson assured the Court that the firm does not represent any
interest adverse to the Debtors' estates.
Based in Cincinnati, Ohio, Pierre Foods Inc. --
http://www.pierrefoods.com-- manufactures and sells ready-to-cook
and pre-cook products. The company and and 13 of its affiliates
filed for Chapter 11 protection on July 15, 2008 (Bankr. D. Del.
Lead Case No.08-11469). Paul Noble Heath, Esq., at Richards,
Layton & Finger P.A., represents the Debtors in their restucturing
efforts. The Debtors selected Kurtzman Carson Consultants LLC as
their claims agent. When the Debtors filed for protection against
their creditors, they listed estimated assets between $500 million
and $1 billion, and estimated debts between $100 million and $500
million.
PLASTECH ENGINEERED: Inks Pact Dismissing Tooling Order Appeal
--------------------------------------------------------------
The Honorable Avern Cohn of the U.S. District Court for the
Eastern
District of Michigan dismissed with prejudice an appeal filed by
Chrysler LLC from a decision by the U.S. Bankruptcy Court for the
Eastern District of Michigan denying the carmaker's request to
regain
tooling located in Plastech Engineered Products Inc. and its
debtor-affiliates' possession.
Judge Avern also dismissed the Debtors' cross-appeal.
The District Court's decision is pursuant to a stipulation between
Chrysler, LLC, Chrysler Motors, LLC, Chrysler Canada, Inc., and
the Debtors.
As reported in the Troubled Company Reporter on March 14, 2008,
Chrysler asked the District Court to find out if the tool dispute
rulings given by the Michigan Bankruptcy Court were in error.
Chrysler took an appeal under 28 U.S.C. Section 158(a) before the
District Court from the orders of the Bankruptcy Court that
denied:
i) the lifting of the automatic stay to allow Chrysler to
regain possession of tooling located in Plastech Engineered
Products Inc. and its debtor-affiliates' plants; and
ii) issuance of a preliminary injunction in connection with the
proposed recovery of tooling equipment.
The Bankruptcy Court held that the Debtors needed to keep the
tooling equipment to help them in their reorganization. The
balancing of interests favored Plastech, the Bankruptcy Court
said.
About Plastech Engineered
Based in Dearborn, Michigan, Plastech Engineered Products, Inc. --
http://www.plastecheng.com/-- is full-service automotive
supplier of interior, exterior and underhood components. It
designs and manufactures blow-molded and injection-molded plastic
products primarily for the automotive industry. Plastech's
products include automotive interior trim, underhood components,
bumper and other exterior components, and cockpit modules.
Plastech's major customers are General Motors, Ford Motor Company,
and Toyota, as well as Johnson Controls, Inc.
Plastech is a privately held company and is the largest family-
owned company in the state of Michigan. The company is certified
as a Minority Business Enterprise by the state of Michigan.
Plastech maintains more than 35 manufacturing facilities in the
midwestern and southern United States. The company's products are
sold through an in-house sales force.
The company and eight of its affiliates filed for Chapter 11
protection on Feb. 1, 2008 (Bankr. E.D. Mich. Lead Case No. 08-
42417). Gregg M. Galardi, Esq., at Skadden Arps Slate Meagher &
Flom LLP, and Deborah L. Fish, Esq., at Allard & Fish, P.C.,
represent the Debtors in their restructuring efforts. The Debtors
chose Jones Day as their special corporate and litigation counsel.
Lazard Freres & Co. LLC serves as the Debtors' investment bankers,
while Conway, MacKenzie & Dunleavy provide financial advisory
services. The Debtors also employed Donlin, Recano & Company as
their claims and noticing agent.
Joel D. Applebaum, Esq., at Clark Hill PLC, represents the
Official Committee of Unsecured Creditors.
As of Dec. 31, 2006, the company's books and records
reflected assets totaling $729,000,000 and total liabilities of
$695,000,000. (Plastech Bankruptcy News, Issue No. 28; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000)
PLASTECH ENGINEERED: Wants Plan-Filing Period Extended to Sept. 28
------------------------------------------------------------------
Plastech Engineered Products Inc. and its debtor-affiliates ask
the U.S. Bankruptcy Court for the Eastern District of Michigan to
extend, until Sept. 28, 2008, the exclusive period wherein they
can file a Chapter 11 plan of reorganization.
The Debtors relate that in the more than two months since they
sought to extend their exclusive periods:
(1) They have made progress in the development, negotiation
and consummation of a successful sale process of their
major business units, including the sale of other
miscellaneous assets and certain patents held.
(2) They have filed motions to reject leases and schedules on
numerous pieces of equipment but have been unable to
complete their analysis of all nonresidential real
property leases.
(3) They also have spent a significant amount of time
analyzing and responding to 75 reclamation demands
aggregating $17,800,000.
(4) After substantial efforts seeking the entry into
agreements for the orderly wind-down of LDM, their
Canadian affiliate, the Debtors have obtained the Court's
approval of a wind-down that would result in minimal
disruption to their customers' operation.
In addition, since the date of bankruptcy, the Debtors have
attempted to quantify the administrative, priority, and unsecured
claims against their estate. Additional time, however, will be
needed for them to further review and analyze the validity,
amount, and priority of those claims as the bar date has already
elapsed, relates Gregg M. Galardi, Esq., at Skadden, Arps, Slate,
Meagher & Flom LLP, in Wilmington, Delaware.
Moreover, the Debtors need more time to develop and negotiate a
plan of reorganization and a disclosure statement that contains
adequate information as required by Section 1125 of the U.S.
Bankruptcy Code, Mr. Galardi adds.
In light of these, and by the merits of the progress in their
bankruptcy proceedings, the Debtors ask the Court to:
(a) extend the Plan Period until Sept. 28, 2008,
a date that is 60 days after the expiration of the
current Plan Period;
(b) extend the Solicitation Period until Nov. 28, 2008,
a date that is 60 days after the expiration of the
proposed 79-day extension of the current Plan Period;
(c) prohibit any other party from filing a competing plan and
soliciting acceptances of the competing plan during the
extended Exclusive Periods.
Given the Debtors' substantial progress since the date of
bankruptcy filing, the Debtors should be granted additional time
to develop a plan without the distraction of competing plans filed
by other parties in interest, Mr. Galardi asserts.
About Plastech Engineered
Based in Dearborn, Michigan, Plastech Engineered Products, Inc. --
http://www.plastecheng.com/-- is full-service automotive
supplier of interior, exterior and underhood components. It
designs and manufactures blow-molded and injection-molded plastic
products primarily for the automotive industry. Plastech's
products include automotive interior trim, underhood components,
bumper and other exterior components, and cockpit modules.
Plastech's major customers are General Motors, Ford Motor Company,
and Toyota, as well as Johnson Controls, Inc.
Plastech is a privately held company and is the largest family-
owned company in the state of Michigan. The company is certified
as a Minority Business Enterprise by the state of Michigan.
Plastech maintains more than 35 manufacturing facilities in the
midwestern and southern United States. The company's products are
sold through an in-house sales force.
The company and eight of its affiliates filed for Chapter 11
protection on Feb. 1, 2008 (Bankr. E.D. Mich. Lead Case No. 08-
42417). Gregg M. Galardi, Esq., at Skadden Arps Slate Meagher &
Flom LLP, and Deborah L. Fish, Esq., at Allard & Fish, P.C.,
represent the Debtors in their restructuring efforts. The Debtors
chose Jones Day as their special corporate and litigation counsel.
Lazard Freres & Co. LLC serves as the Debtors' investment bankers,
while Conway, MacKenzie & Dunleavy provide financial advisory
services. The Debtors also employed Donlin, Recano & Company as
their claims and noticing agent.
Joel D. Applebaum, Esq., at Clark Hill PLC, represents the
Official Committee of Unsecured Creditors.
As of Dec. 31, 2006, the company's books and records
reflected assets totaling $729,000,000 and total liabilities of
$695,000,000. (Plastech Bankruptcy News, Issue No. 28; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000)
PMA CAPITAL: Fitch Affirms 'BB+' Senior Notes and Debts Ratings
---------------------------------------------------------------
Fitch Ratings has affirmed PMA Capital Corp.'s Issuer Default
Rating and senior debt rating of 'BBB-' and 'BB+' respectively.
Fitch also has affirmed the 'BBB+' Insurer Financial Strength
ratings of the three active primary insurance subsidiaries
collectively referred to as PMA Insurance Group,: Pennsylvania
Manufacturers Association Insurance Company; Pennsylvania
Manufacturers Indemnity Company; and Manufacturers Alliance
Insurance Company. Finally, Fitch has withdrawn the 'B-' IFS
rating of PMA Capital Insurance Company's run-off reinsurance
subsidiary. All Rating Outlooks are Stable.
Fitch's affirmation of PMAIG's ratings is a reflection of the
company's improved underwriting performance, enhanced
organizational risk profile, and strong capital position.
Offsetting these positives are Fitch's concerns of profitability
deterioration due to the competitive operating environment and the
company's growth during a softening market.
On March 28, 2008, PMACC entered into a stock purchase agreement
with Armour Reinsurance Group Limited, a Bermuda-based company for
the sale of the run-off operations. The purchase price was
structured in two parts: $10 million cash upon closing and a
$10 million contingent promissory note paid in 5 years.
The principal and interest of the note is subject to negative
adjustments in the net loss and ULAE (unallocated loss adjustment
expense) reserves in the consolidated financials of the purchased
entities up to and including the maturity of note. During the
first quarter of 2008, the company took adverse reserve
development of $4 million thereby reducing the expected cash to be
received and the contingent note to $6 million.
Fitch believes this transaction will likely close in the third
quarter. Fitch is withdrawing the rating on PMA Re due to a lack
of continuing information on a go-forward basis.
As of March 31, 2008, PMAIG had net premiums written of
$113.9 million, compared with $125.9 million for the same period
in the prior year. PMAIG reported a 94.5% GAAP combined ratio as
of March 31, 2008 compared with a 98.2% for March 31, 2007.
Fitch has affirmed these companies' IFS rating of 'BBB+' with a
Stable Outlook.
-- Manufacturers Alliance Insurance Co.
-- Pennsylvania Manufacturers' Association Insurance Co.
-- Pennsylvania Manufacturers Indemnity Co.
Fitch has withdrawn the IFS rating of this entity:
-- PMA Capital Insurance Company.
In addition, Fitch has affirmed these ratings:
PMA Capital Corp.
-- IDR at 'BBB-', with a Stable Outlook;
-- Senior debt rating at 'BB+'
-- $54.9 million senior notes, 8.5% due June 15, 2018 at 'BB+'
-- $0.455 million convertible debt, 4.25% due Sept. 9, 2022 at
'BB+'.
PRICE FUNERAL: Case Summary & 16 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: Price Funeral Home, Inc.
P.O. Box 37
Erwin, NC 28339
Bankruptcy Case No.: 08-04816
Type of Business: The Debtor is engaged in funeral and memorial
services.
Chapter 11 Petition Date: July 18, 2008
Court: Eastern District of North Carolina (Wilson)
Judge: A. Thomas Small
Debtor's Counsel: William P. Janvier, Esq.
Email: bill@EGHS.com
Everett Gaskins Hancock & Stevens, LLP
P.O. Box 911
Raleigh, NC 27602
Tel: (919) 755-0025
Fax: (919) 755-0009
http://www.eghs.com/
Estimated Assets: $1 million to $10 million
Estimated Debts: $100,000 to $500,000
A list of the Debtor's largest unsecured creditors is available
for free at:
http://bankrupt.com/misc/nceb08-04816.pdf
REXNORD LLC: S&P's Rating Unmoved by Parent's IPO Registration
--------------------------------------------------------------
Standard & Poor's Ratings Services said that its ratings and
outlook on Rexnord LLC. (B/Negative/--) are not immediately
affected by the filing of a registration statement by its ultimate
parent Rexnord Holdings Inc. in connection with a proposed IPO of
common stock. The majority of the proceeds from the offering
would be used to repay payment-in-kind debt held at the holding
company level.
While this would be a favorable development, Rexnord would
continue to be highly leveraged following the proposed transaction
and would continue to have the same controlling owner, Apollo
Group. Still, if the company is successful in executing the IPO
transaction S&P would reevaluate the situation and could consider
an outlook revision, as credit measures would improve.
SEMGROUP LP: Files for Chapter 11 Reorganization in Delaware
------------------------------------------------------------
SemGroup L.P. said that the company and certain of its North
American subsidiaries filed voluntary petitions for reorganization
under Chapter 11 in the U.S. Bankruptcy Court for the District of
Delaware. The company also filed an application for creditor
protection under the Companies' Creditors Arrangement Act in
Canada.
Bloomberg reported that trading losses in SemGroup's crude-oil
hedging business cramped its ability to support $3.1 billion in
debt.
As reported by the Troubled Company Reporter on July 18, 2008,
SemGroup experienced liquidity issues and was exploring various
alternatives, including raising additional equity, debt
capital or the filing of a voluntary petition for reorganization
under Chapter 11 of the Bankruptcy Code.
Bloomberg, citing Terry Ronan, SemGroup's acting president and
chief executive officer, added that SemGroup faced margin calls of
massive proportions on New York Mercantile Exchange and OTC
futures, and options positions.
The report stated that on July 16, the company transferred its
Nymex account to London-based bank Barclays Plc, with a loss of
more than $2.4 billion, and defaulted on its secured debt.
Bloomberg pointed out that a trading company controlled by co-
founder and former chief executive officer Thomas Kivisto owed
SemGroup $290 million.
The company's debt included $2 billion in secured debt and
$594 million of 8.75 percent unsecured senior notes, Bloomberg
added.
In a press statement, Mr. Ronan said: "Our core business in energy
distribution and storage remains strong, and we are taking
aggressive steps to address our financial challenge. We have
determined that the best way to maximize value for our creditors
is to undertake a sales process that will transition our valuable
businesses to well-established companies that can carry forward
the mission we undertook. We believe there will be significant
interest in our assets because of our talented and experienced
employees, unique industry position, expansive customer base and
premiere service capabilities."
Along with its voluntary petitions, SemGroup filed first-day
motions covering employees and business operations, post-filing
use of cash collateral, continuing supplier relations, customer
practices, taxes and related matters, utilities and case
administration matters. The company expects to receive Court
approval of its motions, including the continuation of all
employee wages and benefits.
According to Bloomberg, SemGroup L.P. asked the bankruptcy court
permission to extend to 60 days the usual 30-day window in which
it has to file a complete list of creditors, assets and
liabilities, citing numerous assets and contracts and more
than 1,500 creditors.
Supplier Protection Plan
SemGroup stated in statement that it created a Supplier Protection
Plan for suppliers, as a key part of its Chapter 11 filing. Under
the plan, certain suppliers who contractually commit to continue
doing business with SemGroup, on the same terms as before the
Chapter 11 filing, will be eligible to receive full payment, as
due, for goods and services that were delivered before the filing,
but for which the supplier has not yet been paid.
The Supplier Protection Program will not take effect until it has
been approved by the Bankruptcy Court. The company requested
approval of the Program on July 22.
Liquidity
SemGroup is in negotiations with lenders to secure sufficient
debtor-in-possession financing. The company anticipates obtaining
a DIP facility within a week. In the interim, the company is
working with its existing bank lenders -- led by Bank of America,
N.A., as administrative agent under an Amended and Restated Credit
Agreement dated as of October 18, 2005 -- to use cash collateral
which, upon Court approval, will enable SemGroup to utilize
existing cash and cash generated through normal business
operations to fund trade and employee obligations after the
Chapter 11 filing. The company expects to continue negotiations
with its banks regarding the terms on which the banks' interest
will be adequately protected during the proceedings.
The Debtors need immediate access to cash collateral to fund
payroll and other critical operating expenses.
Use of the cash collateral will terminate on the earliest of
August 15, 2008, or the effective date of a reorganization plan.
The Debtors propose to provide replacement liens to adequately
protect the interest of their prepetition lenders.
As of the bankruptcy filing date, the Debtors remained obligated
to the prepetition secured lenders for these amounts under the
BofA Loan Agreement:
$1,720,000,000 to the working capital lenders;
$665,000,000 to the revolving lenders;
$141,000,000 to the U.S. term lenders
$___________ to holders of Lender Swap Obligations
$___________ to holders of Secured Account Exposure for any
account funding or overdraft arrangement;
amount includes certain accrued and unpaid
interest and costs and expenses.
The Debtors granted first priority and second priority liens upon
and security interests in their assets to BofA for the lenders'
benefit.
The other members of the prepetition lending syndicate are:
* Banc of America Securities LLC, as joint lead arranger and
sole book manager;
* BNP Paribas, as joint lead arranger and co-syndication
agent;
* Bank of Montreal, dba Harris Nesbitt, as co-syndication
agent;
* Bank of Oklahoma, N.A. and Bank of Nova Scotia, as
co-documentation agents.
A full-text copy of the Debtors' request to use Cash Collateral,
including a copy of their four-week cash flow forecast until the
week ended August 15, 2008, is available at no charge at:
http://ResearchArchives.com/t/s?2fd3
Foreign Assets and SemGroup Energy Partners Unaffected
Affiliates of SemGroup L.P. in Mexico, the United Kingdom and Asia
were not included in the filing. These entities are self-funding
and profitable and will continue their business operations without
supervision from the U.S. Bankruptcy Court. SemGroup Energy
Partners L.P., is also not included in the Chapter 11 proceedings.
SemGroup Energy Partners is a Master Limited Partnership whose
units are traded on NASDAQ under the symbol SGLP.
Case Against Affiliate
General Electric Capital Corp., as agent for a lenders on a
$120 million loan has sued SemCrude Pipeline LLC, an affiliate, in
Delaware Chancery Court, Bloomberg reported. GECC said in the
suit that in January, it removed SemCrude as manager of White
Cliffs Pipeline LLC, which is 99.2% controlled by SemCrude,
Bloomberg related. GECC, according to Bloomberg, is seeking
affirmation from the Chancery Court of its decision to replace
SemCrude as manager.
About SemGroup L.P.
SemGroup L.P. -- http://www.semgrouplp.com/-- is a midstream
service company providing the energy industry means to move
products from the wellhead to the wholesale marketplace. SemGroup
provides diversified services for end users and consumers of crude
oil, natural gas, natural gas liquids, refined products and
asphalt. Services include purchasing, selling, processing,
transporting, terminaling and storing energy. SemGroup serves
customers in the United States, Canada, Mexico, Wales, Switzerland
and Vietnam.
SEMGROUP LP: Case Summary & 30 Largest Unsecured Creditors
----------------------------------------------------------
Lead Debtor: SemCrude, L.P.
aka Seminole Transportation & Gathering, L.P.
aka Notti Gathering Co., Inc.
aka SemCrude, L.P.
aka NOTTI Gathering Co., Inc.
aka Seminole Transportation & Gathering, L.P.
aka Dynegy Gathering Services, Inc.
aka Seminole Transportation & Gathering, Inc.
aka Seminole Transportation & Gathering, L.P.
aka STG
aka Dynegy Crude Gathering Services, Inc.
Two Warren Place
6120 South Yale Ave., Ste. 700
Tulsa, OK 74136-4216
Bankruptcy Case No.: 08-11525
Debtor-affiliates filing separate Chapter 11 petitions:
Entity Case No.
------ --------
Chemical Petroleum Exchange, Inc. 08-11526
Eaglwing, L.P. 08-11527
Grayson Pipeline, L.L.C. 08-11528
Greyhawk Gas Storage Co., L.L.C. 08-11529
K.C. Asphalt, L.L.C. 08-11530
SemCanada II, L.P. 08-11531
SemCanada L.P. 08-11532
SemCrude Pipeline, L.L.C. 08-11533
SemFuel Transport, L.L.C. 08-11534
SemMaterials Vietnam, L.L.C. 08-11535
SemGas Gathering, L.L.C. 08-11536
SemKan, L.L.C. 08-11537
SemFuel, L.P. 08-11538
SemManagement, L.L.C. 08-11539
SemGas Storage, L.L.C. 08-11540
SemMaterials, L.P. 08-11541
SemGas, L.P. 08-11542
SemTrucking, L.P. 08-11543
SemGroup Asia, L.L.C. 08-11544
SemStream, L.P. 08-11545
Steuben Development Co., L.L.C. 08-11546
SemGroup, L.P. 08-11547
SemOperating G.P., L.L.C. 08-11548
SemGroup Finance Corp. 08-11549
Type of Business: The Debtors provide gathering, transportation,
storage, distribution, marketing and other
midstream services primarily to independent
producers and refiners of petroleum products in
the North American energy corridor from the Gulf
Coast region to central Canada and along the
West Coast of the U.K. See
http://www.semgrouplp.com/
Chapter 11 Petition Date: July 22, 2008
Court: District of Delaware (Delaware)
Judge: Brendan Linehan Shannon
Debtors' Counsel: John H. Knight, Esq.
Email: knight@rlf.com
L. Katherine Good, Esq.
Email: good@rlf.com
Mark D. Collins, Esq.
Email: collins@RLF.com
Richards Layton & Finger
One Rodney Square
P.O. Box 551
Wilmington, DE 19899
Tel: (302) 651-7700
Fax: (302) 651-7701
http://www.rlf.com
-- and --
Harvey R. Miller, Esq.
Michael P. Kessler, Esq.
Sherri L. Toub, Esq.
Weil, Gotshal & Manges LLP
767 Fifth Ave.
New York, NY 10153
Tel: (212) 310-8000
Fax: (212) 310-8007
http://www.weil.com
-- and --
Martin A. Sosland, Esq.
Sylvia A. Mayer, Esq.
Weil, Gotshal & Manges LLP
200 Crescent Ct., Ste. 300
Dallas, TX 75201
Tel: (214) 746-7700
Fax: (214) 746-7777
http://www.weil.com
Claims Agent: Kurtzman Carson Consultants, L.L.C.
Financial Advisor: The Blackstone Group, L.P.
-- and --
A.P. Services LLC
Prepetition
Lenders'
Counsel: Margot B. Schonholtz, Esq.
Scott D. Talmadge, Esq.
Kaye Scholer, LLP
425 Park Avenue, New York
-- and --
Laurie Selber Silverstein, Esq.
Potter Anderson & Corroon, LLP
Hercules Plaza, 6th Floor
1313 North Market Street
Wilmington, Delaware
The Debtors' consolidated, unaudited financial conditions as of
June 30, 2007 showed $5,429,038,000 in total assets and
$5,033,214,000 in total debts. In their petition, they showed
more than $1,000,000,000 in estimated total assets and more than
$1,000,000,000 in total debts.
Debtors' Consolidated List of 30 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
BP Oil Supply Co. trade debt $159,004,586
Attn: Dan Rosen
28301 Ferry Rd., 126 P.
Warrenville, IL 60555
Tel: (630) 836-4544
Fax: (630) 836-4600
Sunoco Partners Marketing & trade debt $88,894,558
Terminals, LP
Attn: Tony Gallo
1801 Market St., 25th Fl.
Philadelphia, PA 19103
Tel: (215) 977-6897
PIMCO bond debt $86,000,000
Attn: Mark Afrasiabi
840 Newport Ctr. Dr.,
Ste. 300
Newport Beach, CA 92660
Tel: (949) 720-6052
Fax: (949) 720-6244
Valero, L.P. trade debt $79,256,580
Attn: Belinda Haecker
P.O. Box 696000
San Antonio, TX 78269
Tel: (210) 345-2064
Fax: (210) 444-8511
Western Asset Management Co. bond debt $77,000,000
Attn: Gibson Cooper
385 East Colorado Blvd.
Tel: (626) 844-9672
Fax: (626) 844-9909
ConocoPhillips trade debt $74,178,604
Attn: Craig Cooper
315 Johnstone, 1350C P.O. Box
Bartlesville, OK 74004
Tel: (918) 661-1559
Fax: (918) 661-6143
Noble Energy, Inc. trade debt $60,606,786
Attn: Dan Cooper
100 Glenbourgh Dr., Ste. 100,
13th Fl.
Houston, TX 77067
Tel: (281) 876-8844
Fax: (281) 876-8845
Plans All Americna Pipeline, trade debt $59,810,095
LP
Attn: Mike McBride
333 Clay St., Ste. 1600
Houston, TX 77002
Tel: (713) 646-4178
Fax: (713) 646-4564
Merrill Lynch Asset Management bond debt $55,000,000
Attn: Paul Sharkey
4 World Financial Ctr.,
7th Fl.
New York, NY 10080
Tel: (212) 449-9208
Fax: (212) 449-7148
National Refinery Assn. trade debt $53,733,667
Attn: Mary Minor
1391 Iron Horse Rd.
McPherson, KS 67460
Tel: (620) 241-2340
Central Crude Corp. trade debt $52,196,576
Attn: Sally Phillips
2020 N. Bramblewood
Wichita, KS 67206
Tel: (316) 337-8378
Fax: (316) 265-8690
Husky Energy Marketing, Inc. trade debt $50,137,776
Attn: Steve Downing
707-8th Ave. S.W.
Box 6525, Station D.
Calgary, Alberta T2P 3G7
Tel: (403) 298-6727
Fax: (403) 298-6178
Crescent Point Energy Trust trade debt $42,528,685
Attn: Barb Berry, Consultant
111-5th Ave. S.W., Ste. 2800
Calgary, Alberta T2P 3Y6
Tel: (403) 815-4839
Crude Marketing & trade debt $40,841,569
Transportation
Attn: Credit Dept.
16 E. 16th St., Ste. 300
Tulsa, OK 74119
Tel: (918) 585-6790
ChevronTexaco Corp. trade debt $37,239,528
Attn: Brian DePriest
1500 Louisiana St., 4th Fl.
Houston, TX 77002
Tel: (832) 854-5278
Alon USA, L.P. trade debt $36,455,472
Attn: Michael Dodson
7616 LBJ Freeway, Ste. 300
Dallas, TX 75251
Tel: (972) 367-3621
Fax: (972) 367-3737
Eaton Vance Management bond debt $28,000,000
Attn: David Zimmerman
225 State St.
Boston, MA 02109
Tel: (617) 598-8107
Fax: (617) 482-6811
Bain Capital/Sankaty bond debt $27,500,000
Attn: David Stein
111 Huntington Ave.
Boston, MA 02199
Tel: (617) 516-2690
Fax: (617) 516-2710
Apache Canada, Ltd. trade debt $27,150,273
Attn: John Chung, Houston
Office
700-9th Ave., S.W.
Calgary, Alberta T2P 3V4
Tel: (713) 296-6615
Fax: (713) 296-6675
Fountain Capital Management bond debt $27,000,000
Attn: Zachary Hamel
10801 Mastin Blvd., Ste. 220
Overland Park, KS 66210
Tel: (913) 345-2766
Fax: (913) 345-2763
Arc Energy Trust trade debt $26,248,628
Attn: Credit Dept.
2100-440 2nd Ave. S.W.
Calgary, Alberta T2P 5E0
Tel: (403) 503-8600
Fax: (403) 503-8705
Muzinich & Co. bond debt $25,000,000
Attn: Anthony Iorfino
450 Park Ave.
New York, NY 10022
Tel: (212) 204-0092
Fax: (212) 888-4368
Legal & General Investment bond debt $25,000,000
Management
Attn: David North
3 Queens Victoria St.
London, England EC4N 8NH
Tel: 44-20-7528-6676
Teppo Crude Oil, LLC trade debt $24,872,656
Attn: Gary Yager
1100 Louisiana St., Ste. 8160
Houston, TX 77002
Tel: (713) 381-3639
Fax: (713) 381-7907
Deutsche Capital bond debt $24,000,000
Attn: Angelo D'Urso
60 Wall St.
New York, NY 10005
Tel: (212) 250-5843
Pioneer Natural Resources USA, trade debt $23,206,840
Inc.
Attn: Jamie Fuselier
5205 N. O'Connor Blvd.,
Ste. 1400
Dallas, TX 75039
Tel: (972) 969-3671
Fax: (972) 969-3590
Cimmaron Transportation, LLC trade debt $22,816,846
Attn: John Schmitz
3314 E. Hwy. 82
Gainesville, TX 76240
Tel: (940) 665-4373
Nexen Marketing, Inc. trade debt $22,348,621
Attn: Fred Pacione
801-7th Ave. S.W., Ste. 1700
Calgary, Alberta T2P 3P7
Tel: (403) 699-4075
Fax: (403) 303-2230
Central Kansas Crude, LLC trade debt $21,778,329
920 East First St.
Pratt, KS 67124
Tel: (620) 672-9484
Royal Dutch Petroleum Co. trade debt $17,492,529
(Shell)
Attn: Miguel Correa
Plaza Level One
909 Fannin St.
Houston, TX 77010
Tel: (713) 230-5120
Fax: (713) 265-5120
SEMGROUP LP: IDR Rating Tumbles to D Due to Bankruptcy Filing
-------------------------------------------------------------
Fitch Ratings lowered the Issuer Default Ratings of SemGroup L.P.,
SemCrude L.P, and SemCAMS Midstream Co. to 'D' following the
bankruptcy petition by SemGroup and most of units on July 22,
2008.
These ratings are removed from Rating Watch where they were placed
on July 17, 2008. The bank facility and securities ratings of
SemGroup and units remain on Rating Watch Negative pending a
review of the bankruptcy court petition. Ratings affected by this
action are as follows:
SemGroup L.P.
SemCrude L.P.
SemCAMS Midstream Co.
--IDR lowered to 'D' from 'B-'.
Ratings remaining on Rating Watch Negative:
SemGroup L.P.
--Senior unsecured 'B/RR3'.
SemCrude L.P.
--Senior secured working capital facility 'BB-/RR1';
--Senior secured revolving credit facility 'B+/RR1';
--Senior secured term loan B 'B+/RR1'.
SemCAMS Midstream Co. (SemCAMS)
--Senior secured working capital facility 'BB-/RR1';
--Senior secured revolving credit facility 'B+/RR1';
--Senior secured term loan B 'B+/RR1'.
SemGroup L.P. is a privately held midstream energy partnership
focused on providing gathering, transportation, processing, and
marketing services for crude oil and refined products in the U.S.
Midcontinent region and Canada. SemGroup Energy Partners L.P., a
publicly traded Master Limited Partnership affiliate, was not
included in the bankruptcy petition and is not rated by Fitch.
SEMGROUP LP: Sunoco Logistics Says Credit Exposure is Minimal
-------------------------------------------------------------
Sunoco Logistics Partners L.P. relates that it has minimal credit
exposure to SemGroup LP and its affiliates. Affiliates of Sunoco
Logistics conduct business with SemCrude LP for the purchase and
sale of crude oil.
SemCrude LP is one of the affiliates of SemGroup LP, which filed
petitions for reorganization under Chapter 11 of the U.S.
Bankruptcy Code.
Sunoco Logistics has a net-out agreement with SemCrude LP,
pursuant to which receivables and payables are set-off. As of the
Chapter 11 filing date, Sunoco Logistics estimates that it is in a
net payable position with SemCrude LP, with limited credit
exposure, if any.
In the July 22, 2008, press statement, SemGroup LP stated that
SemGroup created a Supplier Protection Plan for suppliers. Under
the plan, certain suppliers who contractually commit to continue
doing business with SemGroup, on the same terms as before the
Chapter 11 filing, will be eligible to receive full payment, as
due, for goods and services that were delivered before the filing,
but for which the supplier has not yet been paid.
The Supplier Protection Program will not take effect until it has
been approved by the Bankruptcy Court. The company requested
approval of the Program on July 22.
About Sunoco Logistics Partners L.P.
Headquartered in Philadelphia, Sunoco Logistics Partners L.P. --
http://www.sunocologistics.com/-- (NYSE: SXL) is a master limited
partnership formed to acquire, own and operate refined product and
crude oil pipelines and terminal facilities, including those of
Sunoco Inc.
About SemGroup L.P.
SemGroup L.P. -- http://www.semgrouplp.com/-- is a midstream
service company providing the energy industry means to move
products from the wellhead to the wholesale marketplace. SemGroup
provides diversified services for end users and consumers of crude
oil, natural gas, natural gas liquids, refined products and
asphalt. Services include purchasing, selling, processing,
transporting, terminaling and storing energy. SemGroup serves
customers in the United States, Canada, Mexico, Wales, Switzerland
and Vietnam.
SEMGROUP LP: Moody's Junk Ratings Affect Rated Debt at Other Units
------------------------------------------------------------------
Moody's Investors Service downgraded SemGroup's Corporate Family
Rating to Caa2 from B2, its Probability of Default Rating to Caa3
from B2; its senior unsecured rating to Ca (LGD 4; 69%) from Caa1
(LGD 5; 79%), and its first secured bank facilities to B3 (LGD 2;
21%) from B1 (LGD 3; 39%). These actions affect rated cross
guaranteed debt at parent SemGroup, SemCams Holding Company, and
SemCrude, L.C. The ratings had been under review for downgrade
and remain on review for further downgrade.
Moody's first downgraded SemGroup's ratings on July 17, 2008 after
receiving on July 15, 2007 SemGroup's May 2008 consolidating
financial statements. Subsequently, SemGroup reported that it was
evaluating filing Chapter 11 bankruptcy protection and continuing
negotiations to raise new capital. The review for further
downgrade will continue to assess the possibility of a Chapter 11
filing, SemGroup's covenant coverage and liquidity profile, and
the prospects for losses for creditors. Preferably after
receiving information more current than that received on July 15,
2008, the ratings review may result in either further downgrade, a
ratings confirmation, or an upgrade.
In Moody's view, a major part of SemGroup's liquidity crisis was
the large rapid rise in oil prices this year and that the extreme
volatility of those prices, which would have been particularly
challenging to its hedged trading business.
Additionally, "it would appear that SemGroup's cash margin
requirements exceed what Moody's would have expected given the
scale and other characteristics of SemGroup's hedged trading
activity in the past," Andrew Oram, Moody's vice president and
senior credit officer, commented.
SemGroup's ratings have always been restrained by SemGroup's
comparatively large proportion of earnings from volatile merchant
activity; the highly working capital intensive, price sensitive,
and market confidence sensitive nature of that merchant activity;
very large liquidity needs for cash margin deposits and working
capital funding during surging oil, natural gas liquids, refined
product, and natural gas markets, which consumed virtually all
cash flow after capital spending in first half 2006; and elevated
leverage when including its funding for working capital and margin
deposits.
These rating actions also reflect Moody's concern for SemGroup's
ability to meet its bank covenant tests at a time when higher oil
prices had already driven major increases in borrowing
requirements under expanded bank facilities. If SemGroup were to
breach covenants, given conditions in the debt, equity, and
commodity markets Moody's believes it would be a difficult time to
seek covenant waivers and arrange more borrowing capacity or
alternative equity funding.
In support of SemGroup's hedged middleman functions in the oil,
refined product, natural gas, and asphalt businesses, it is
constantly hedging long positions by using futures and other hedge
products to lock in hydrocarbon prices. When prices rise above
the hedged price, hedges effected through the futures exchanges
are subject to daily cash margin calls. Oil prices rose from
approximately $97 per barrel at the end of first quarter 2008, to
$122 per barrel at the end of May, $128 per barrel at the end of
June and peaked at roughly $147 per barrel before settling back to
a still high $129 per barrel so far this week. Moody's does note
that SemGroup would realize substantial cash from declining
working capital and margin deposits needs if hydrocarbon prices
were to retreat back to first quarter 2008 let alone still low
fourth quarter 2007 levels.
The bank facilities are first secured by all working capital and
fixed assets. All bank debt is borrowed under bank monitored
working capital secured borrowing bases, providing important
protections, and risk of loss should there be a shortfall in value
coverage receives important support from the banks' first security
in fixed assets. Most of those fixed assets have long served
important regional roles in the midstream functions of moving
hydrocarbons from point of production to point of consumption. To
date,
SemGroup, L.P. is headquartered in Tulsa, Oklahoma.
SIRVA INC: Objects to Timing of Paying OOIDA's $1.25MM Claim
------------------------------------------------------------
Sirva Inc. and its debtor-affiliates oppose the motion of the
Owner Operator Independent Drivers Association for an order
directing the Debtors to comply with the distribution provisions
under the confirmed First Amended Prepackaged Joint Plan of
Reorganization.
Marc Kieselstein, P.C., at Kirkland and Ellis LLP in Chicago,
Illinois, states that the dispute is about the timing of
payments, and nothing more. The Debtors do not contest their
obligation to satisfy the full amount of OOIDA's claim in the
ordinary course, and as its matures in less than one year,
pursuant to the Plan. This is consistent with the settlement
agreed to by OOIDA, the Official Committee of Unsecured
Creditors, and other Class 5 creditors, which resolved their
objections and led to the amendment of the terms of the Plan.
Mr. Kieselstein says that OOIDA improperly demands the immediate
full payment of an unmatured and undiscounted claim,
notwithstanding the clear terms of the Settlement, the Plan, and
the Plan Confirmation Order. He adds that OOIDA's position is
inconsistent with the Bankruptcy Code's requirement that the
"full amount" of the claim must reflect the time value of money,
either by payment over time or by payment of its present value as
of the Petition Date.
Mr. Kieselstein asserts that OOIDA has disavowed its previous
agreements and representations upon which the compromise in the
Plan was achieved. According to Mr. Kieselstein, OOIDA has taken
the position that the Plan no longer means what it says, and that
the agreement, entered into by all parties including OOIDA, no
longer exists.
The Debtors submit that nothing supports OOIDA's demand for an
immediate distribution of an unmatured claim; neither does the
Settlement, the Plan that embodies that settlement, the Plan
Confirmation order, nor the Bankruptcy Code. The Debtors insist
that OOIDA's inequitable conduct should not be countenanced, and
the Motion should be denied.
OOIDA Insists on Payment
In response to the Debtors' objection, OOIDA tells the U.S.
Bankruptcy Court for the Southern District of New York that
OOIDA's $1,250,000 undisputed claim was due for payment on the
Plan Effective Date. OOIDA does not concede that its claim is an
unmatured claim that must be discounted.
OOIDA relates that at the Debtors' demand, it has forfeited 75%
of its liquidated claim in exchange for the Debtors' commitment
to pay the remaining 25%, or $1,250,000. OOIDA insists that the
Debtors should pay the full amount of the distribution due on its
claim.
About Sirva Inc.
The company and 61 of its affiliates filed separate petitions
for Chapter 11 protection on Feb. 5, 2008 (Bankr. S.D.N.Y. Case
No. 08-10433). Marc Kieselstein, Esq. at Kirkland & Ellis,
L.L.P. is representing the Debtor. When the Debtors filed for
bankruptcy, it reported total assets of US$924,457,299 and total
debts of US$1,232,566,813 for the quarter ended Sept. 30, 2007.
The Court confirmed the Debtor's First Amended Prepackaged Plan on
May 7, 2008. The Debtors' First Amended Prepackaged Joint Plan of
Reorganization became effective on May 12, 2008.
(Sirva Inc. Bankruptcy News; Bankruptcy Creditors' Services Inc.
http://bankrupt.com/newsstand/or 215/945-7000).
SIRVA INC: Wes Lucas Succeeds Robert Tieken as Chief Executive
--------------------------------------------------------------
SIRVA, Inc. appointed Wes Lucas as its new chief executive officer
and member of its board of directors. Mr. Lucas succeeds Robert
W. Tieken, who led SIRVA through its successful financial
reorganization.
Kevin Dowd, SIRVA's chairman of the board, said, "[Mr. Lucas']
strong leadership, deep operational experiences, and capabilities
to grow businesses will serve the company well as we continue to
improve our operational performance, competitive position, and
increase the value we provide our customers. The board is
unanimous in its decision that Wes is the right person to provide
the sound leadership to build on SIRVA's core strengths and
successfully grow our company. We are pleased to welcome Wes to
SIRVA."
Mr. Lucas said, "I am honored to have the opportunity to join
SIRVA's team. It is a testament to the quality of SIRVA's
people, and the longstanding excellence of service to customers
and agents, that SIRVA is well positioned for success in the
future. Under the leadership of the board and the management
team, SIRVA has recently taken decisive actions, and I am
delighted to build on that progress and work with this highly
talented team. In SIRVA, I see a company with great strengths
and outstanding potential to create value for our customers and
our agents."
Mr. Lucas is a seasoned executive with strong leadership
experiences as CEO, chairman, and president, and with world-class
companies, Fortune 500 corporations, and small private companies.
Mr. Lucas comes with a deep experience in growing companies,
building execution capabilities, and developing superior customer
value. A significant example is his tenure as the chairman,
president, and CEO for Sun Chemical, the world's largest color
company, with about $4 billion in sales and 300 plants, from 2001
up to 2006. Another significant leadership position during this
period was as the co-chairman of Kodak Polychrome, a joint
venture with Kodak and the world's largest provider of imaging
equipment and materials for commercial media. Other substantial
leadership experiences include holding the positions of: the CEO
and president of Quebecor World (a $6 billion printing services
company); the president of Sytrenics, Nova Chemicals (a leader in
plastics and materials); vice president at AlliedSignal (a multi-
billion dollar leading industrial company); and also a management
consultant with McKinsey & Company. Mr. Lucas received his MBA
from the Harvard Business School, and a BS in finance and
accounting from the University of California, Berkeley.
Mr. Dowd stated, "I also want to thank Bob Tieken for his service
as SIRVA's CEO; we have been very fortunate to have his leadership
and support during our financial restructuring. [Mr. Tieken] was
instrumental in positioning SIRVA for success in the future."
Mr. Tieken has served on the company's board since July 2006 and
became SIRVA's CEO in August 2007, after holding the role on an
interim basis since March 2007. Mr. Tieken assumed the position
of CEO to lead SIRVA through a successful financial restructuring
which was completed on May 12, 2008 and resulted in an improved
debt profile for SIRVA.
About Sirva Inc.
The company and 61 of its affiliates filed separate petitions
for Chapter 11 protection on Feb. 5, 2008 (Bankr. S.D.N.Y. Case
No. 08-10433). Marc Kieselstein, Esq. at Kirkland & Ellis,
L.L.P. is representing the Debtor. When the Debtors filed for
bankruptcy, it reported total assets of US$924,457,299 and total
debts of US$1,232,566,813 for the quarter ended Sept. 30, 2007.
The Court confirmed the Debtor's First Amended Prepackaged Plan on
May 7, 2008. The Debtors' First Amended Prepackaged Joint Plan of
Reorganization became effective on May 12, 2008.
(Sirva Inc. Bankruptcy News; Bankruptcy Creditors' Services Inc.
http://bankrupt.com/newsstand/or 215/945-7000).
TCHOTCHO PINCKNEY: Case Summary & Six Largest Unsecured Creditors
-----------------------------------------------------------------
Debtor: Tchotcho Mensah Pinckney
aka
Tchotcho Mensah Negalokpe
14607 Dawn Court
Bowie, MD 20721
Bankruptcy Case No.: 08-19385
Chapter 11 Petition Date: July 21, 2008
Court: District of Maryland (Greenbelt)
Judge: Wendelin I. Lipp
Debtor's Counsel: John Douglas Burns, Esq.
Email: burnslaw@burnslaw.algxmail.com
6303 Ivy Lane, Suite 102
Greenbelt, MD 20770
Tel: (301) 441-8780
Estimated Assets: $1 million to $10 million
Estimated Debts: $1 million to $10 million
A list of the Debtor's six largest unsecured creditors is
available for free at:
http://bankrupt.com/misc/mdb08-19385.pdf
TESORO CORP: S&P Holds 'BB+' Rating and Changes Outlook to Stable
-----------------------------------------------------------------
Standard & Poor's Ratings Services revised the outlook on refining
and marketing company Tesoro Corp. to stable from positive and
affirmed the ratings, including the 'BB+' corporate credit
rating, on the company.
"The outlook revision reflects the difficult market conditions in
the company's West Coast markets, which will continue to pressure
refining margins and credit measures over the next six to nine
months," said Standard & Poor's credit analyst Paul Harvey. "This
has diminished the likelihood of an upgrade in the near term,
despite expectations for improved second-quarter results, after a
dismal first quarter."
The current margin environment remains unstable, battered by
continued high crude oil prices and falling gasoline demand during
the typically strong summer season. Ratings are supported by
various initiatives Tesoro has undertaken to preserve cash flows
and decrease debt levels, including working capital management,
reduced capital spending, as well as operating cost reductions.
The ratings on Tesoro are based on a satisfactory business risk
profile that reflects the company's strong asset quality,
traditionally favorable characteristics of its PADD V (the West
Coast, Alaska, and Hawaii) market, and its ability to access
multiple crude oil grades and sources. Nevertheless, ratings also
encompass Tesoro's position in the extremely volatile and
erratically profitable refining industry, exposure to volatile
hydrocarbon prices, and considerable fixed costs.
Tesoro operates seven refineries of varying complexity, with total
throughput capacity of 663,000 barrels per day. In addition,
Tesoro has a network of about 920 retail gasoline stations and
convenience stores in the western U.S. Tesoro also benefits from
the ability to process heavy crude grades, around 30% of current
throughput, as well as access waterborne crude sources that limit
overdependence on a single source.
TOUSA INC: Panel Wants to Hire Robins Russel as Litigation Counsel
------------------------------------------------------------------
The Official Committee of Unsecured Creditors in TOUSA Inc. and
its debtor-affiliates' Chapter 11 cases seeks authority from the
U.S. Bankruptcy Court for the Southern District of Florida to
retain Robins Russel Englert Orseck Untereiner & Sauber LLP, as
its special litigation counsel, nunc pro tunc to June 19, 2008.
The Creditors Committee relates the Court has approved the
retention of Akin Gump Strauss Hauer & Feld as its co-counsel. In
May 2008, the Court approved the Committee's Standing Motion,
authorizing it to prosecute certain causes of action arising from
a series of transactions consummated by the Debtors during the
Summer of 2007 in connection with a settlement among numerous
parties. However, in a June 2008 telephonic hearing, Akin Gump
disclosed to the Court and significant parties-in-interest that
certain of its existing clients had asserted that the prosecution
of the certain claims by Akin Gump, on behalf of the Creditors
Committee, constituted an actual conflict and that those clients
were unwilling to waive that conflict or agree to the use of
conflicts counsel, Tara Lynn Tonens, vice president of Capital
Research and Management Company, as co-chair of the Creditors
Committee, relates.
Akin Gump thus advised the Court that it believed it is in the
best interests of the Debtors' estates and their unsecured
creditors for the Creditors Committee to retain special
litigation counsel to prosecute the litigation against certain
parties.
Accordingly, the Committee chose to retain Robbins Russel as its
special litigation counsel in light of the firm's considerable
experience in complex commercial litigation, according to Ms.
Tonens. The firm is representing or has represented litigants in
complex cases, including In re Heilig-Muers; Adams v. Bellsouth;
Calabrese et al. v. csc Holdings et al; and Hechinger Investment
Co. v. Fleet Retail Finance.
As the Committee's special litigation counsel, Robbins Russel
will, among other things:
a) assist the Creditors Committee in analysis of claims
described in its Standing Motion;
b) prosecute those Claims described in the Standing Motion;
and
c) perform other legal services as may be required or are
otherwise deemed to be in the interests of the Creditors
Committee in accordance with its powers and duties set
forth in the Bankruptcy Code, Bankruptcy Rules or other
applicable law.
The Creditors Committee asks the Court that fees and related
costs and expenses incurred by it on account of services rendered
by Robbins Russell be paid as administrative expenses of the
Debtors' estates pursuant to sections 328, 330(a), 331, 503(b)
and 507(a)(1) of the Bankruptcy Code. The firm's rates are
subject to periodic adjustments to reflect economic and other
conditions. Robbins Russell's current hourly rates are:
Partners $550 - $750
Associates $300 - $510
Paraprofessionals $150 - $225
Lawrence S. Robbins, Esq., a partner at Robbins Russell, relates
that his firm does not hold directly any claim, debt or equity
security of the Debtors. Robbins Russell does not have an
interest materially adverse to the interests of the Debtors'
estates or of any class of creditors or equity security holders
of the Debtors, or for any other reason, he assures the Court.
Mr. Robbins says that his firm does not represent the Debtors or
any of their related parties, affiliates, partners or
subsidiaries. Robbins Russell will not undertake the
representation of the Debtors or related entities during its
engagement with the Committee, he tells the Court.
Mr. Robbins discloses that the firm currently represents, or has
represented in the past, certain clients in matters wholly
unrelated to the Debtors' Chapter 11 cases. The only current
client that is a known potential defendant in a litigation
involving the Debtors is Bank of America. The firm has received
a waiver from BofA, which allows Robbins Russell to sue the Bank,
Mr. Robbins adds.
About TOUSA Inc.
Headquartered in Hollywood, Florida, TOUSA Inc. (Pink Sheets:
TOUS) -- http://www.tousa.com/-- fka Technical Olympic
U.S.A. Inc., dba Technical U.S.A., Inc., Engle Homes, Newmark
Homes L.P., TOUSA Homes Inc. and Newmark Homes Corp. is a leading
homebuilder in the United States, operating in various
metropolitan markets in 10 states located in four major geographic
regions: Florida, the Mid-Atlantic, Texas, and the West. TOUSA
designs, builds, and markets high-quality detached single-family
residences, town homes, and condominiums to a diverse group of
homebuyers, such as "first-time" homebuyers, "move-up" homebuyers,
homebuyers who are relocating to a new city or state, buyers of
second or vacation homes, active-adult homebuyers, and homebuyers
with grown children who want a smaller home. It also provides
financial services to its homebuyers and to others through its
subsidiaries, Preferred Home Mortgage Company and Universal Land
Title Inc.
The Debtor and its debtor-affiliates filed for separate Chapter 11
protection on Jan. 29, 2008. (Bankr. S.D. Fla. Case No.:
08-10928). The Debtors have selected M. Natasha Labovitz, Esq.,
Brian S. Lennon, Esq., Richard M. Cieri, Esq. and Paul M. Basta,
Esq., at Kirkland & Ellis LLP and Paul Steven Singerman, Esq., at
Berger Singerman to represent them in their restructuring efforts.
Lazard Freres & Co. LLC is the Debtors' investment banker and
financial advisor. Ernst & Young LLP is selected as the Debtors'
independent auditor and tax services provider. Kurtzman Carson
Consultants LLC acts as the Debtors' Notice, Claims & Balloting
Agent. The Official Committee of Unsecured Creditors hired
Patricia A. Redmond, Esq., and the law firm Stearns Weaver
Weissler Alhadeff & Sitterson, P.A., as its local counsel. TOUSA
Inc.'s financial condition as of Sept. 30, 2007, showed total
assets of $2,276,567,000 and total debts of $1,767,589,000. Its
consolidated detailed balance sheet as of Feb. 29, 2008 showed
total assets of $1,961,669,000 and total liabilities of
$2,278,106,000.
TOUSA's Exclusive Plan Filing Period expires October 25, 2008.
(TOUSA Bankruptcy News, Issue No. 16; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000).
TROPICANA ENT: Panel Can Hire Epiq as Website Administration Agent
------------------------------------------------------------------
The Official Committee of Unsecured Creditors in Tropicana
Entertainment LLC and its debtor-affiliates' Chapter 11 cases
obtained authority from the U.S. Bankruptcy Court for the District
of Delaware to:
(i) establish procedures for compliance with Section
1102(b)(3) of the Bankruptcy Code; and
(ii) retain Epiq Bankruptcy Solutions LLC as its Web site
administration agent.
As reported in the Troubled Company Reporter on July 7, 2008, the
procedures will allow the Creditors Committee to satisfy its
statutory obligations to provide access to information to the
Debtors' general unsecured creditors and to solicit and receive
comments from unsecured creditors.
Epiq will establish and maintain the Committee Web site to serve
as an access point for unsecured creditors to receive certain non-
confidential and non-privileged information, and allow the
Creditors Committee to solicit and receive comments from unsecured
creditors regarding the Debtors and their Chapter 11 cases.
In addition to the Committee Web site, the Creditors Committee's
e-mail address to allow unsecured creditors to send questions and
comments.
Epiq's fees and expenses will be payable by the Debtors in the
ordinary course and treated as administrative expenses pursuant to
Section 503(b) of the Bankruptcy Code, Mr. Fights says.
The Creditors Committee, however, will be permitted, but not
required, to provide access to Privileged Information to any
party, provided that the Privileged Information is not
Confidential Information, and the relevant privilege is either
held or controlled (i) solely by the Creditors Committee, or (ii)
jointly by the committee and the other parties, all of whom
consent to the disclosure of the Privileged Information.
About Tropicana Entertainment
Based in Crestview Hills, Kentucky, Tropicana Entertainment LLC --
http://www.tropicanacasinos.com/-- is an indirect subsidiary of
Tropicana Casinos and Resorts. The company is one of the largest
privately-held gaming entertainment providers in the United
States. Tropicana Entertainment owns eleven casino properties in
eight distinct gaming markets with premier properties in Las
Vegas, Nevada and Atlantic City, New Jersey.
Tropicana Entertainment LLC filed for Chapter 11 protection on
May 5, 2008, (Bankr. D. Del. Case No. 08-10856) Its debtor-
affiliates filed for separate Chapter 11 petitions but with no
case numbers assigned yet. Kirkland & Ellis LLP and Mark D.
Collins, Esq. at Richards Layton & Finger represent the Debtors in
their restructuring efforts. Their financial advisor is Lazard
Ltd. Their notice, claims, and balloting agent is Kurtzman Carson
Consultants LLC. The Debtors' consolidated financial condition as
of Feb. 29, 2008, showed $2,845,847,596 in total assets and
$2,429,890,642 in total debts.
(Tropicana Bankruptcy News, Issue No. 11; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000)
TROPICANA ENT: Court OKs Morris Nichols as Panel's Del. Co-Counsel
------------------------------------------------------------------
The Official Committee of Unsecured Creditors in Tropicana
Entertainment LLC and its debtor-affiliates' Chapter 11 cases
obtained authority from the U.S. Bankruptcy Court for the District
of Delaware to retain Morris Nichols Arsht & Tunnell LLP, as its
Delaware co-counsel, nunc pro tunc to the Debtors' bankruptcy
filing.
As reported in the Troubled Company Reporter on June 16, 2008,
Morris Nichols is expected to:
(a) advise the Creditors Committee with respect to its rights,
duties and powers in the Debtors' Chapter 11 cases;
(b) assist and advise the Creditors Committee in its
consultations with the Debtors relative to the
administration of these bankruptcy cases;
(c) assist the Creditors Committee in analyzing the claims of
the Debtors' creditors in negotiating with those
creditors;
(d) assist with the Creditors Committee's investigation of the
acts, conduct, assets liabilities and financial condition
of the Debtors and of the operation of their business; and
(e) perform other legal services as may be required and are
deemed to be in the interests of the Creditors Committee
in accordance with the committee's powers and duties.
The Creditors Committee, Morris Nichols, and the committee's
proposed counsel, Stroock & Stroock & Lavan LLP, assured the Court
that they will undertake every effort to avoid duplicative
efforts and to represent the Debtors' unsecured creditors in an
efficient and cost-effective manner.
Morris Nichols will be paid at its normal and customary hourly
rates and reimbursed for actual, necessary expenses. The firm's
current hourly rates, and the professionals who will be
responsible for the representation of the Creditors Committee,
are:
Partners $440 to $725
Associates $250 to $415
Paraprofessionals $180 to $195
Robert J. Dehney, partner $725
Thomas F. Driscoll III, associate $315
John A. Sensing, associate $335
Case clerks $120
Robert J. Dehney, Esq., a partner at Morris Nichols, assured the
Court that his firm is a disinterested person, as the term is
defined in Section 101(14) of the Bankruptcy Code.
About Tropicana Entertainment
Based in Crestview Hills, Kentucky, Tropicana Entertainment LLC --
http://www.tropicanacasinos.com/-- is an indirect subsidiary of
Tropicana Casinos and Resorts. The company is one of the largest
privately-held gaming entertainment providers in the United
States. Tropicana Entertainment owns eleven casino properties in
eight distinct gaming markets with premier properties in Las
Vegas, Nevada and Atlantic City, New Jersey.
Tropicana Entertainment LLC filed for Chapter 11 protection on
May 5, 2008, (Bankr. D. Del. Case No. 08-10856) Its debtor-
affiliates filed for separate Chapter 11 petitions but with no
case numbers assigned yet. Kirkland & Ellis LLP and Mark D.
Collins, Esq. at Richards Layton & Finger represent the Debtors in
their restructuring efforts. Their financial advisor is Lazard
Ltd. Their notice, claims, and balloting agent is Kurtzman Carson
Consultants LLC. The Debtors' consolidated financial condition as
of Feb. 29, 2008, showed $2,845,847,596 in total assets and
$2,429,890,642 in total debts.
(Tropicana Bankruptcy News, Issue No. 11; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000)
TWEETER HOME: Court Extends Plan-Filing Period to September 3
-------------------------------------------------------------
The Honorable Peter J. Walsh of the U.S. Bankruptcy Court for the
District of Delaware has extended, until Sept. 3, 2008, the period
wherein Tweeter Home Entertainment Group Inc. and its debtor-
affiliates have the exclusive right to file a plan of
reorganization. The Court has also given the Debtors, until Nov.
5, 2008, the exclusive right to solicit acceptances of that plan.
The Debtors previously asserted that they need the time to
develop a plan that will maximize returns to their creditors.
The Debtors are evaluating alternatives in relation to any plan
of liquidation. They have sold substantially all of their assets
to Tweeter Newco, LLC.
No objections were filed against the Debtors' extension request.
About Tweeter Home
Based in Canton, Mass., Tweeter Home Entertainment Group Inc.
-- http://www.tweeter.com/-- retails mid-to high-end audio and
video consumer electronics products. Tweeter and seven of its
affiliates filed for Chapter 11 protection on June 11, 2007
(Bankr. D. Del. Case Nos. 07-10787 through 07-10796). Gregg M.
Galardi, Esq., Mark L. Desgrosseilliers, Esq., and Sarah E.
Pierce, Esq., at Skadden, Arps, Slate, Meagher & Flom, LLP,
represent the Debtors. Kurtzman Carson Consultants LLC acts as
the Debtors' claims and noticing agent.
Bruce Grohsgal, Esq., William P. Weintraub, Esq., and Rachel Lowy
Werkheiser, Esq., at Pachulski Stang Ziehl & Jones LLP; and Scott
L. Hazan, Esq., Lorenzo Marinuzzi, Esq., and Todd M. Goren, Esq.,
at Otterbourg, Steindler, Houston & Rosen, P.C., represent the
Official Committee of Unsecured Creditors.
As of Dec. 21, 2006, Tweeter had total assets of $258,573,353 and
total debts of $190,417,285. The Debtors exclusive period to file
a plan of reorganization expired on June 5, 2008. (Tweeter
Bankruptcy News, Issue No. 22, Bankruptcy Creditors' Service,
Inc., http://bankrupt.com/newsstand/or 215/945-7000).
UNI IMAGING: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: Uni Imaging Holdings, LLC
114 Southside Dr.
Oneonta, NY 13820
Bankruptcy Case No.: 08-61716
Chapter 11 Petition Date: July 21, 2008
Court: Northern District of New York (Utica)
Judge: Stephen D. Gerling
Debtor's Counsel: Jeffrey A. Dove, Esq.
Email: jdove@menterlaw.com
Menter, Rudin & Trivelpiece, P.C.
308 Maltbie St., Ste. 200
Syracuse, NY 13204-1498
Tel: (315) 474-7541
Fax: (315) 474-4040
http://www.menterlaw.com/
Estimated Assets: $500,000 to $1,000,000
Estimated Debts: $1,000,000 to $10,000,000
A copy of 's petition is available for free at:
http://bankrupt.com/misc/nynb08-61716.pdf
UNI-MARTS LLC: Blank Rome Approved as Committee's Counsel
---------------------------------------------------------
The United States Bankruptcy Court for the District of Delaware
gave the Official Committee of Unsecured Creditors of Uni-Marts
LLC and its debtor-affiliates permission to retain Blank Rome LLP
as its counsel.
On June 9, 2008, the U.S. Trustee for Region 3 appointed three
creditors to the Committee including:
i) BP Products North America Inc.,
ii) Mclane Company Inc.,
iii) Bottling Group LLC dba Pepsi Bottling Group,
iv) Petroleum Products Corp.,
v) Farm & Home Oil Co., LLC,
vi) National Retail Properties Trust, and
v) ExxonMobile Oil Corporation.
Separately, the Committee also asked the Court to retain Mesirow
Financial Consulting LLC as its financial advisor.
Blank Rome is expected to represent the Committee and perform
services for it in connection with carrying out its fiduciary
duties and responsibilities under Section 1103(c) of the
Bankruptcy Code.
The firm's professionals will bill at these rates:
Designation Hourly Rate
----------- -----------
Partners and counsel $300-$675
Associates $245-$475
Paralegals $105-$265
Professional Hourly Rate
------------ -----------
Michael Z. Brownstein, Esq. $665
Bonnie Glantz Fatell, Esq. $600
Jason Staib, Esq. $425
David W. Carickhoff, Esq. $420
Marcie D. Seiler, Esq. $245
Bonnie Glantz, Esq., a partner at firm, assures the Court that the
firm does not hold any interest adverse to the Debtor's estates
and is a "disinterested person" as defined in Section 101(14) of
the Bankruptcy Code.
Mr. Glantz can be reached at:
Bonnie Glantz, Esq.
Blank Rome LLP
1201 Market Street, Suite 800
Wilmington, DE 19801
Tel: (302) 425-6400
Fax: (302) 425-6464
http://www.blankrome.com/
About Uni-Marts
Headquartered in State College, Pennsylvania, Uni-Marts LLC sells
consumer goods. The company and six of its affiliates filed for
Chapter 11 protection on May 29, 2008 (Bankr. D. Del. Lead Case
No.08-11037). Michael Gregory Wilson, Esq., at Hunton & Williams
LLP represents the Debtors in their restructuring efforts. The
Debtor selected Epiq Bankruptcy Solutions LLC as their claims,
noticing and balloting agent. The U.S. Trustee for Region 3
appointed seven creditors to serve on an Official Committee of
Unsecured Creditors. When the Debtors filed for protection, they
listed assets and debts between $50 million and $100 million.
WACHOVIA CORP: Posts $8.9 Billion Net Loss; Reduces Dividends
-------------------------------------------------------------
Wachovia Corporation disclosed yesterday its financial results for
the second quarter ended June 30, 2008. Wachovia also disclosed
that it is reducing its quarterly common stock dividend to $0.05
per share from $0.375 per share. The $0.05 per share dividend
will be payable on Sept. 15, 2008 to Wachovia's common stock
shareholders of record as of Aug. 29, 2008.
The company said that consistent with previously announced
expectations, Wachovia reported a net loss in the second quarter
of 2008 of $8.9 billion, including a $6.1 billion noncash goodwill
impairment charge in commercial-related subsegments reflecting
declining market valuations and asset values. The company said
that the goodwill impairment charge has no impact on its tangible
capital levels, regulatory capital ratios or on liquidity.
Wachovia added $5.6 billion to its loan loss reserve to cover net
charge-offs and increase the reserve by $4.2 billion.
Excluding goodwill impairment and other notable items that drove
the quarter's loss, Wachovia reported that it generated solid
underlying growth on $7.5 billion in revenue. This compares with
$8.7 billion in revenue in 2007. Revenue was driven by higher
loans and deposits and strength in traditional banking fees, while
strong fiduciary and asset management fees and brokerage
commissions largely reflected the A.G. Edwards acquisition.
"These bottom-line results are disappointing and unacceptable,"
said Lanty L. Smith, Wachovia's board chairman, who served as
interim chief executive officer beginning June 1. "While to some
degree they reflect industry headwinds and weaker macroeconomic
conditions, they also reflect performance for which we at Wachovia
accept responsibility. Our company is facing up to these issues,
is addressing the challenges head-on and has redirected near-term
strategic priorities."
Two immediate actions were announced: First, reducing the
quarterly common stock dividend to five cents per share, which
will conserve approximately $700 million of capital per quarter.
The dividend is payable on Sept. 15, 2008, to shareholders of
record on Aug. 29, 2008. The second immediate action is exiting
the General Bank wholesale mortgage origination channel. Earlier
the company ceased offering the negative amortization option for
the Pick-a-Pay mortgage product and committed to work with
customers to refinance existing Pick-a-Pay mortgages into
conventional mortgage products. Approximately 1,000 Wachovia
mortgage origination personnel are being redeployed in the
company's efforts to assist customers to refinance and restructure
Pick-a-Pay mortgages. The objective is to assist customers in
avoiding foreclosures and meaningfully reduce the company's risks
in the mortgage area.
Robert K. Steel, chief executive officer and president said, "In
the short term, the entire organization is focused on protecting,
preserving and generating capital; reinforcing Wachovia's strong
liquidity position; and reducing risk." Steel, who was named to
his new post on July 9, further commented that, even as the
company focuses on and addresses its credit-related challenges,
Wachovia's underlying businesses are performing well: "Wachovia
has an exceptionally attractive franchise, footprint and set of
businesses. Revenue in our general banking business grew 8
percent over last year and we maintained industry-leading customer
satisfaction. The securities brokerage business continues its
excellent performance, with increases in both the number and
quality of brokers and with industry-leading margins. Our
corporate and investment bank has reduced its exposure to further
market disruption charges. We had a record quarter in our Wealth
Management business."
Wachovia outlined additional initiatives that are under way,
ranging from reducing expense growth and capital expenditures,
reducing earning assets, repositioning the certificate of deposit
book and generating further growth in low-cost core deposits and
other deposits. Also, the company is taking actions to reduce the
number of credit-only commercial borrowers and to sell selected
noncore assets.
Steel summarized by saying: "Our balance sheet and liquidity
position are strong, and we are committed to keeping them that
way. The actions taken and initiatives under way are expected to
generate or preserve more than $5 billion of capital. We ended
the quarter with approximately $50 billion in regulatory capital
and a tier 1 ratio of 8 percent, and we will be intensely focused
on improving that level between now and the end of 2009."
Steel said, "As we consider the company's position, it is clearly
prudent and necessary to further reduce our common dividend.
While this is a difficult decision, it is the best course for our
shareholders over the long term. I am confident of the commitment
of the Wachovia team to manage successfully through this period as
we continue to diligently serve our customers and communities. I
am impressed by the work the Wachovia leadership group has
undertaken, the clarity around the issues we face and the
direction Wachovia is headed as we focus on being good stewards of
the company."
The second quarter 2008 net loss compared with earnings of
$2.34 billion in the second quarter of 2007. Excluding goodwill
impairment of $6.1 billion and net merger-related and
restructuring expense of $128 million, results in the second
quarter of 2008 were a net loss available to common stockholders
of $2.67 billion. Results included the A.G. Edwards Inc.
acquisition from Oct. 1, 2007.
The pre-tax loss stemmed from:
-- The $6.1 billion in noncash goodwill impairment reflecting
declining market valuations and the resulting effect on
commercial, corporate lending and investment banking
subsegments. The goodwill impairment charge has no impact on
Wachovia's tangible capital levels or regulatory capital
ratios, because goodwill is deducted when computing those
ratios.
-- A $5.6 billion loan loss provision, which increased reserves
by $4.2 billion, including $3.3 billion for the payment
option mortgage portfolio;
-- A $975 million noncash charge announced previously related to
the tax treatment of certain leasing transactions widely
referred to as "sale in, lease out" or SILO transactions;
-- $936 million in market disruption-related losses;
-- $590 million in legal reserves primarily related to
previously disclosed matters; and
-- $391 million in losses related to planned discretionary
securities sales.
Other key trends in the second quarter of 2008 compared with the
second quarter of 2007 included:
-- A decline in fee and other income due to net market
disruption-related valuation losses, which overshadowed
strength in traditional banking. Fiduciary and asset
management fees and brokerage commissions reflected the A.G.
Edwards acquisition.
-- A net interest margin of 2.58 percent, or 3.15 percent
excluding the effect of the SILO charge. The SILO charge
diminished net interest income, offset by growth in average
commercial loans, up 25 percent, and average consumer loans,
up 6 percent, as well as solid core deposit growth, up 3
percent. Average loan growth included the impact of the
first quarter 2008 transfer of $6.9 billion of commercial and
consumer loans to the loan portfolio from held-for-sale as
well as strength in commercial, commercial real estate and
traditional conforming mortgage loans. Deposit growth was
led by strength in IRAs and money market accounts.
-- An increase in noninterest expense largely reflecting the
impact of A.G. Edwards, as well as growth in credit-related
sundry expense and legal reserves. A renewed expense
reduction initiative is under way throughout the company.
-- Provision for credit losses of $5.6 billion, which included a
reserve build of $4.2 billion. The provision largely
reflected current and anticipated severe deterioration in the
residential housing market, particularly in specific markets
in California and Florida. Net charge-offs were $1.3
billion, or an annualized 1.10 percent of average net loans.
Total nonperforming assets including loans held for sale were
$12.0 billion, or 2.41 percent of loans, foreclosed
properties and loans held for sale, largely reflecting
increases in consumer real estate-related nonperforming
assets due to the effects of the weakened housing industry.
At June 30, 2008, the company's consolidated balance sheet showed
$812.4 billion in total assets, $733.9 billion in total
liabilities, $3.1 billion in minority interest in net assets of
consolidated ventures, and $75.4 billion in total stockholders'
equity.
Wachovia's consolidated balance sheets and consolidated statements
of income are available for free at:
http://researcharchives.com/t/s?2fd2
Shares Performance
Shares of Wachovia closed up $3.61, or 27%, at $16.79 yesterday,
on volume of 238 million after the bank said it would work its way
out of a credit quagmire without diluting current shareholders'
stake in the company, according to MarketWatch.
About Wachovia Corporation
Based in Charlotte, North Carolina, Wachovia Corporation (NYSE:WB)
-- http://www.wachovia.com/-- is one of the nation's diversified
financial services companies, with assets of $812.4 billion at
June 30, 2008.
Wachovia provides a broad range of retail banking and brokerage,
asset and wealth management, and corporate and investment banking
products and services to customers through 3,300 retail financial
centers in 21 states from Connecticut to Florida and west to Texas
and California, and nationwide retail brokerage, mortgage lending
and auto finance businesses. Clients are served in selected
corporate and institutional sectors and through more than 40
international offices. Its retail brokerage operations under the
Wachovia Securities brand name manage more than $1.1 trillion in
client assets through 18,600 registered representatives in 1,500
offices nationwide. Online banking is available at wachovia.com;
online brokerage products and services at wachoviasec.com; and
investment products and services at evergreeninvestments.com.
As reported in the Troubled Company Reporter on July 22, 2008,
reports say that a team of regulators from more than five states
investigated the St. Louis headquarters of Wachovia Corp.'s
securities division in relation to its auction-rate bonds sales,
reports say. The regulators were from Missouri, Illinois,
Massachusetts, Pennsylvania, New Jersey and other states.
Missouri Secretary of State Robin Carnahan said in a statement the
investigation was prompted because Wachovia hasn't "fully
complied" with a Missouri probe on the matter. Investors have
filed complaints after they were unable to access money frozen
when firms in the auction-rate bonds market abandoned their
operations in February.
The team delivered more than a dozen subpoenas to the unit's
executives and agents on July 17 as part of its probe into sales
practices, internal evaluations of the auction-rate securities
market and marketing strategies.
Bloomberg News reports that up to $218 billion of auction-rate
bonds sold by student-loan providers, municipalities and closed-
end mutual funds remained frozen.
WAVE SYSTEMS: Fails to Meet $50MM Minimum Common Stock Value
------------------------------------------------------------
Wave Systems Corp. received a notice from the Listing
Qualifications division of The Nasdaq Stock Market indicating that
the company's common stock is subject to potential delisting from
The Nasdaq Global Market because the market value of the company's
common stock was below $50 million for 10 consecutive business
days, and, therefore, did not meet the requirement set forth in
Nasdaq Marketplace Rule 4450(b)(1)(A). The notice further stated
that the company is not in compliance with an alternative test,
Nasdaq Marketplace Rule 4450(b)(1)(B), which requires total assets
and total revenue of $50 million each for the most recently
completed fiscal year or two of the last three most recently
completed fiscal years.
In accordance with Nasdaq Marketplace Rule 4450(e)(4), Wave
Systems will be provided a period of 30 calendar days, or until
August 18, 2008, to regain compliance with the Rule. If at
anytime before August 18, 2008, the market value of Wave Systems'
common stock is $50 million or more for a minimum of 10
consecutive business days (or such longer period of time as the
Nasdaq staff may require in some circumstances), the company will
achieve compliance with the Rule.
If Wave Systems has not regained compliance with the Rule by
August 18, 2008, the Nasdaq staff will issue a letter notifying
the company that its common stock will be delisted. At that time,
the company may appeal the determination to delist its common
stock to a Listings Qualifications Panel. Alternatively, if the
company cannot meet the requirements for continued listing on The
Nasdaq Global Market, it may apply to transfer to The Nasdaq
Capital Market.
Wave Systems plans to exercise diligent efforts to maintain the
listing of its common stock on The Nasdaq Global Market, but there
is no assurance that it will be successful in doing so. If the
company does not resolve the listing deficiency, the company may
apply for listing on The Nasdaq Capital Market.
About Wave Systems Corp.
Headquartered in Lee, Massachussetts, Wave Systems Corp. (NASDAQ:
WAVX) -- http://www.wave.com-- develops, produces and markets
products for hardware-based digital security, including security
applications and services that are complementary to and work with
the specifications of the Trusted Computing Group (TCG).
Specifications developed by the TCG are designed to address a
range of digital security issues. These issues include identity
protection, data security, digital signatures, electronic
transaction integrity, platform trustworthiness, network security
and regulatory compliance. The EMBASSY Trust Suite is a set of
applications and services that are designed to bring functionality
and user value to TPM-enabled products. The Wave TCG-Enabled
Toolkit is a compilation of software designed to assist
application developers writing new applications or modifying
existing ones to function on TCG-compliant platforms.
WERNER LADDER: Old Ladder Asks Court to Overrule Transfer Request
-----------------------------------------------------------------
Old Ladder Litigation Co., LLC, the Liquidation Trust's litigation
designee appointed to investigate and prosecute causes of action
against third parties, including those held by Werner Holding Co.
(DE) Inc. aka Werner Ladder Co. and its debtor-affilates against
former shareholders, officers, directors, managers and
professionals, pursuant to the Second Amenmed Plan of Liquidation,
as confirmed on Oct. 25, 2007, asks the U.S. District Court for
the Southern District of New York, to overrule Investcorp Bank,
B.S.C. and the other defendants' requests to transfer the
litigation's venue to the U.S. Bankruptcy Court for the District
of Delaware and to dismiss the case.
As reported in the Troubled Company Reporter on June 16, 2008,
Investcorp Bank, B.S.C., and the other defendants named in the
$1,000,000,000 damage lawsuit commenced by Old Ladder Litigation
Co., LLC, sought the transfer of the litigation to the U.S.
Bankruptcy Court for the District of Delaware where the Werner
Ladder Co. bankruptcy cases have been pending for two years.
Fundamentally, the transfer request only asks if the litigation
should proceed in New York or Delaware, and if it is to proceed
in New York, what claims are properly pleaded against which
Defendants, Mr. Shore notes.
"They have not identified a single Defendant, non-party fact
witness with material knowledge of the subject transactions, or
relevant document located in [Delaware]," Mr. Shore says. "Nor
have they established that any court in Delaware has, or will
have, involvement with the complex issues surrounding the claims
framed in the complaint or the ability to compel any material
witness to testify there."
Mr. Shore relates that some courts have found the convenience of
witnesses to be the most important factor in venue analysis; and
in assessing factors favoring transfer, the court generally
considers only those witnesses residing in the proposed
transferee district. He emphasizes that the moving party must
clearly specify the key witnesses to be called and must make a
general statement of what their testimony will cover. Since the
Defendants did not identify a single witness who resides in
Delaware whose testimony would be relevant, they fail to meet the
court's requirements, he maintains.
Mr. Shore also contends that the New York Litigation is not about
Old Werner's business operations, but rather on three financial
transactions, which substantially took place in New York:
(1) $330,000,000 paid out to shareholders in 1997;
(2) $150,000,000 paid out to shareholders in 2003; and
(3) a 2005 refinance of Old Werner's debt.
"With respect to venue, New York is indisputably the 'center of
gravity' for the transactions at issue," Mr. Shore insists.
In addition, Mr. Shore points out that the District Court in
Delaware lacks subpoena power over many witnesses as Wilmington,
Delaware is 120 miles from Manhattan and 390 miles from
Greenville, Pennsylvania. A plaintiff's choice of venue in an
adversary proceeding overrides any presumption that the
Bankruptcy Court is the appropriate forum for all adversary
proceedings, he says.
* * *
The U.S. District Court for the Southern District of New York
dismissed National City Bank as defendant from the New
York Litigation without prejudice. The Litigation will remain
open as to the other remaining Defendants.
About Werner Ladder
Based in Greenville, Pennsylvania, Werner Holding Co. (DE) Inc.
aka Werner Ladder 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 Debtors are represented by the firm of Willkie Farr &
Gallagher LLP as lead counsel and the firm of Young, Conaway,
Stargatt & Taylor LLP as co-counsel. Rothschild Inc. is the
Debtors' financial advisor. The Official Committee of Unsecured
Creditors is represented by the firm of Winston & Strawn LLP as
lead counsel and the firm of Greenberg Traurig LLP as co-counsel.
Jefferies & Company serves as the Creditor Committee's financial
advisor. At March 31, 2006, the Debtors reported total assets of
$201,042,000 and total debts of $473,447,000.
Earlier, on June 19, 2007, the Creditors Committee submitted its
Liquidating Plan and Disclosure Statement for Werner. On Sept.
10, 2007, the Committee filed an Amended Plan and Disclosure
Statement. On Sept. 13, 2007, the Committee filed its 2nd Amended
Plan and on September 14, the Court approved the adequacy of the
Amended Disclosure Statement explaining the 2nd Amended Plan. The
Court confirmed the 2nd Amended Plan on October 25. New Werner
Holding Co. (DE), LLC, a newly formed corporation, purchased
substantially all the Debtors' assets in 2007. New Werner is a
separate operating company.
(Werner Ladder Bankruptcy News, Issue No. 54; Bankruptcy
Creditors' Service Inc.; http://bankrupt.com/newsstand/or
215/945-7000).
WHITEHALL JEWELERS: No Right to Consignment Goods, Consignors Say
-----------------------------------------------------------------
Various entities filed objections to the motion of Whitehall
Jewelers Holdings, Inc. and Whitehall Jewelers, Inc. to: (a)
continue to sell consigned goods in the ordinary course of
business and use cash collateral of consignment vendors on an
interim basis, (b) grant adequate protection to consignment
vendors on an interim basis, and (c) schedule final hearing with
respect to the motion.
A. Jewel Source, Inc., et al.
Consignors Jewel Source, Inc., Paul Winston-Eurostar, LLC, K.
Girdharlal, Inc. and STS Jewels, Inc. related to the U.S.
Bankruptcy Court for the District of Delaware that they entered
into various consignment agreements with the Debtors. Each
consignor filed financing statements to perfect their interests in
the consigned merchandise. The Debtors currently possess the
consigned merchandise, which appear to be a subject to the terms
and conditions of a sale motion, the consignors said.
On the bankruptcy filing, the Debtors had about $224 million
inventory balance, $63 million of which was supplied by numerous
vendors that may assert secured interests as consignors.
The consignors do not agree to the sale of consigned merchandise
below-cost. They also want the Debtors to segregate the consigned
merchandise before selling them and hold in escrow the proceeds of
the sale in order to obtain protection from the Court under an
interim consignment order.
The consignors said they believe that the Debtors have no legal
right, title or interest in the consigned merchandise. The
Debtors are generally known by their creditors to be substantially
engaged in the sale of goods on consignment, the consignors
claimed.
Christopher P. Simon, Esq., and Erica N. Finnegan, Esq., at Cross
& Simon, LLC, is counsel to Jewel Source, Inc., et al.
B. Steora and Orli
Steora USA and Orli Diamonds, Inc. told the Court that they oppose
to the Debtors' sale of consigned goods with respect to the
inclusion of goods that Steora and Orli own. They told the Court
that Section 363(f)(4) of the U.S. Bankruptcy Code does not
authorize sale of consigned goods, even if applicable to the
present cases.
Steora and Orli noted that according to the Debtors' memorandum of
law, the Debtors have two tiers of prepetition secured debt,
comprised of (i) a $71.5 million senior secured revolving credit
facility, and (ii) a $40 million junior secured term loan. Both
loans, totaling $111.5 million, are secured by a first priority
lien on substantially all of the Debtors' assets.
Bank of America, N.A., is the managing agent for the senior
secured lenders. Junior secured lender, PWJ Lending II LLC is a
lending affiliate of the Debtors' majority shareholders, Prentice
Capital Management, LP.
Peter Michielutti, Whitehall executive vice president and chief
financial officer, said at a July 10, 2008 hearing that the
consigned goods are not included in the borrowing base for the
senior secured debt or for the Debtors' postpetition financing,
which is also held by the senior secured lenders.
Under an interim court order, the Debtors have received
$20 million in postpetition financing from their prepetition
senior secured lenders. The Debtors are seeking final approval of
an $80 million postpetition financing, which will be used to repay
senior secured debt in full. Hence, the Debtor will then owe a
total of $120 million to senior and junior secured lenders. The
final hearing on the postpetition motion has been set for July 24,
2008.
Steori and Orli said that the Debtors are operating in a wind-down
mode. They added that the Debtors are not obtaining new inventory
postpetition and are currently self-liquidating the existing
inventory, which are supplied under consignment basis. Steori and
Orli provided goods on consignment to the Debtors prior to the
bankruptcy under the terms of vendor trade agreements. Steori and
Orli argued that they retain title to and ownership of the
consigned goods until they are sold to any of the Debtors' retail
customer.
The objectors said that the Debtors did not indicate in its sale
motion whether consigned goods owned by the consignors would be
included in the sale. The sale is a liquidation of questionable
benefit to the Debtors' estates, Steora and Orli asserted.
Steori and Orli said that prior to the bankruptcy filing, they
demanded the return of all goods provided to the Debtors on
consignment. The Debtors then issued return authorization numbers
acknowledging Steora's right to obtain a return of its property.
Both Steora and Orli have perfected their claims against the
Debtors.
Steora and Orli said that at the time of the sale, it is
anticipated that $120 million is owed to senior and junior secured
lenders. As of the bankruptcy filing, the Debtors held about
$224 million of inventory, of which $63 million is consigned
goods. As stated by Mr. Michielutti, the approximate return
offered by a certain stalking horse bidder for the Debtors'
inventory is 54.1% of the cost of inventory, resulting in at most
$121.1 million for the Debtors' estates, even if all of the
consigned goods are included in the sale, the objectors related.
Of this amount, $1.2 million has been carved out for professionals
fees.
Further, Steora and Orli alleged that they were not notified of
the change in the Debtor's name from Whitehall Jewellers, Inc. to
Whitehall Jewelers, Inc. on or about June 21, 2008. The Debtors,
according to the objectors, continued to use memoranda, invoices,
stationary and other similar items using the double LL spelling of
their names in communications with consignors. Steora and Orli
said they only knew of the name change from their counsel after
the first day hearing of the bankruptcy case on June 24, 2008.
Lawrence P. Gottesman, Esq., and Michelle McMahon, Esq., at Bryan
Cave LLP, represent Steora and Orli.
C. Merit Diamond
Merit Diamond Corporation filed a joinder to Steora and Orli's
limited objection to an entry of final orders on the Debtors' DIP
motion and consignment motion.
William P. Bowden, Esq., at Ashby & Geddes, represents Merit
Diamond.
D. Bulova Corporation, et al.
Bulova Corporation; Tache USA, Inc.; United Jewelry Brothers,
Inc.; Rosy Blue Jewelry, Inc.; Uni-Design (USA); Frederick
Goldman, Inc.; Leo Schacter Diamonds, Inc.; Suberi Brothers, LLC;
Cybel Trading Corp.; Sumit Diamond Corp.; Continental Jewelry
(USA), Inc.; and Nelson Jewellry (USA), Inc. collectively filed a
joinder motion to the objection of Jewel Source, Inc., et al. to
the Debtors' consignment motion.
Bulova Corporation, et al. are represented by Elihu E. Allinson,
III, Esq., at Sullivan Hazeltine Allinson LLC, and Joseph M. Vann,
Esq., and Ira R. Abel, Esq., at Cohen Tauber Spievack & Wagner
P.C.
E. BHMulticon Corp., et al.
BHMulticon Corp.; Diamond Direct LLC; MaxMark, Inc.; and Thien Po
Jewelry Ltd. filed a joinder motion to Steora and Orli's objection
to the Debtors' DIP motion and consignment motion.
Carl N. Kunz, III, Esq., and Thomas M. Horan, Esq., at Morris
James LLP, represent BHMulticon Corp., et al. Thomas J. Lallier,
Esq., at Foley & Mansfield PLLP, also represents BHMulticon.
Daniel Y. Gielchinsky, Esq., at Herten, Burstein, Sheridan,
Cevasco, Bottinelli, Litt & Harz, LLC, also represents Diamond
Direct. Jill K. Hauff, Esq., at Morrison Mahoney, LLP, also
represents Thein Po.
F. SDC Designs, et al.
SDC Designs, LLC; Diamour Inc.; Kiran Jewels Inc.; Paras Diamond
Corporation, dba Amikan; Sierra Diamonds Limited filed limited
objections to the Debtors' motion to obtain DIP financing.
SDC Designs, et al., also filed joinder motion to Steora and
Orli's objection to the Debtors' consignment motion.
Consigned Goods
The Troubled Company Reporter said on July 17, 2008, that the
disposal of the Debtor's $63 million consigned items has not been
resolved yet. Judge Kevin Gross will decide on this matter at a
July 24 hearing, according to a court document. Counsel to the
Official Committee of Unsecured Creditors, Alan Kolod, Esq., at
Moses & Singer LLP, said that Judge Gross allowed the Debtor to
proceed with the sale amid uncertainties on the consignment good.
About Whitehall Jewelers
Headquartered in Chicago, Illinois, Whitehall Jewelers Holdings,
Inc. -- http://www.whitehalljewellers.com/-- own and operate 375
stores jewelry stores in 39 states. Whitehall is owned by hedge
funds Prentice Capital Management and Millennium Partners LP, both
of New York, and Holtzman Opportunity Fund LP of Wilkes-Barre, Pa.
The company operates stores in regional and regional shopping
malls under the names Whitehall and Lundstrom. The Debtors'
retail stores operate under the names Whitehall (271 locations),
Lundstrom (24 locations), Friedman's (56 locations, and Crescent
(22 locations). As of June 23, 2008, the Debtors have about 2,852
workers.
The company and its affiliates, Whitehall Jewelers Inc., filed for
Chapter 11 protection on June 23, 2008 (Bankr. D. Del. Lead Case
No. 08-11261). James E. O'Neill, Esq., Kathleen P. Makowski,
Esq., and Laura Davis Jones, Esq., at Pachulski Stang Ziehl &
Jones, LLP, and Scott K. Rutsky, Esq., at Proskauer Rose LLP,
represent the Debtors in their restructuring efforts. The Debtors
selected Epiq Bankruptcy Solutions LLC as their claims, noticing
and balloting agent. Alan Kolod, Esq., at Moses & Singer LLP,
represents The Official Committee of Unsecured Creditors.
When the Debtors' filed for protection against their creditors,
they listed total assets of total assets of $207,100,000 and total
debts of $185,400,000.
WHITEHALL JEWELERS: Parties Balk at $80 Mil. DIP Financing Motion
-----------------------------------------------------------------
Various entities oppose to a motion of Whitehall Jewelers
Holdings, Inc. and Whitehall Jewelers Inc. to obtain debtor-in-
possession financing and use cash collateral.
Under an interim court order, the Debtors received $20 million in
postpetition financing from their prepetition senior secured
lenders, Bank of America, N.A., and Wells Fargo Retail Finance,
LLC. The Debtors are seeking final approval of an $80 million
postpetition financing, which will be used to repay senior secured
debt in full. Hence, the Debtor will then owe a total of $120
million to senior and junior secured lenders. The final hearing
on the postpetition motion has been set to continue for July 24,
2008.
A. Local Texas Tax Authorities
Bexar County, Dallas County, Ector CAD, Fort Bend County, Frisco,
Harris County, Katy ISD, McAllen, McAllen ISD, Round Rock ISD,
South Texas College, South Texas ISD, Tarrant County and the City
of Memphis told the U.S. Bankruptcy Court for the District of
Delaware that the proponents of the financing motion have failed
to demonstrate that the liens of the Tax Authorities are
adequately protected. The Tax Authorities reasoned that the
proponent of a motion seeking a super priority lien has the burden
of proof on that issue pursuant to Section 364(d)(2) of the U.S.
Bankruptcy Code.
The Local Tax Authorities are political subdivisions of the States
of Texas or Tennessee, each of which is authorized to assess and
collect ad valorem taxes pursuant to the laws of the State. The
Tax Authorities have filed secured claims totaling approximately
$150,000 for ad valorem taxes owed on the Debtors' personal
property for the 2008 tax year.
The Texas and Tennessee taxes are secured with a security interest
that is superior to any other secured claim pursuant to applicable
State law.
The DIP liens and adequate protection replacement liens granted to
the prepetition lenders, the Tax Authorities asserted, are subject
to permitted prior liens. However, permitted prior liens is
defined with reference to a prepetition credit agreement to which
the local tax authorities are not parties. So arguably, the
prepetition credit agreements must permit local tax liens since
they cannot be subordinated, the Tax Authorities argued.
The Tax Authorities also said that they do not consent to the
Debtors' use of their cash collateral. They said that the Debtor
failed to file a separate motion seeking to use of that cash
collateral, which must be segregated.
Elizabeth Weller, Esq., at Linebarger Goggan Blair & Sampson, LLP,
represents the Tax Authorities.
B. Steora USA and Orli Diamonds, Inc. noted that according to the
Debtors' memorandum of law, the Debtors have two tiers of
prepetition secured debt, comprised of (i) a $71.5 million senior
secured revolving credit facility, and (ii) a $40 million junior
secured term loan. Both loans, totaling $111.5 million, are
secured by a first priority lien on substantially all of the
Debtors' assets.
Bank of America, N.A., is the managing agent for the senior
secured lenders. Junior secured lender, PWJ Lending II LLC is a
lending affiliate of the Debtors' majority shareholders, Prentice
Capital Management, LP.
Peter Michielutti, Whitehall executive vice president and chief
financial officer, said at a July 10, 2008 hearing that the
consigned goods are not included in the borrowing base for the
senior secured debt or for the Debtors' postpetition financing,
which is also held by the senior secured lenders.
The Debtors have asked the Court for authority to sell inventory
in their possession.
Steora and Orli told the Court that they oppose to the Debtors'
sale of consigned goods with respect to the inclusion of goods
that Steora and Orli own. They told the Court that Section
363(f)(4) of the U.S. Bankruptcy Code does not authorize sale of
consigned goods, even if applicable to the present cases.
Steori and Orli said that the Debtors are operating in a wind-down
mode. They added that the Debtors are not obtaining new inventory
postpetition and are currently self-liquidating the existing
inventory, which are supplied under consignment basis. Steori and
Orli provided goods on consignment to the Debtors prior to the
bankruptcy under the terms of vendor trade agreements. Steori and
Orli argued that they retain title to and ownership of the
consigned goods until they are sold to any of the Debtors' retail
customer.
The objectors said that the Debtors did not indicate in its sale
motion whether consigned goods owned by the consignors would be
included in the sale. The sale is a liquidation of questionable
benefit to the Debtors' estates, Steora and Orli asserted.
Steori and Orli said that prior to the bankruptcy filing, they
demanded the return of all goods provided to the Debtors on
consignment. The Debtors then issued return authorization numbers
acknowledging Steora's right to obtain a return of its property.
Both Steora and Orli have perfected their claims against the
Debtors.
Steora and Orli said that at the time of the sale, it is
anticipated that $120 million is owed to senior and junior secured
lenders. As of the bankruptcy filing, the Debtors held about
$224 million of inventory, of which $63 million is consigned
goods. As stated by Mr. Michielutti, the approximate return
offered by a certain stalking horse bidder for the Debtors'
inventory is 54.1% of the cost of inventory, resulting in at most
$121.1 million for the Debtors' estates, even if all of the
consigned goods are included in the sale, the objectors related.
Of this amount, $1.2 million has been carved out for professionals
fees.
Further, Steora and Orli alleged that they were not notified of
the change in the Debtor's name from Whitehall Jewellers, Inc. to
Whitehall Jewelers, Inc. on or about June 21, 2008. The Debtors,
according to the objectors, continued to use memoranda, invoices,
stationary and other similar items using the double LL spelling of
their names in communications with consignors. Steora and Orli
said they only knew of the name change from their counsel after
the first day hearing of the bankruptcy case on June 24, 2008.
Lawrence P. Gottesman, Esq., and Michelle McMahon, Esq., at Bryan
Cave LLP, represent Steora and Orli.
C. SDC Designs, et al.
Consignors SDC Designs, LLC; Diamour Inc.; Kiran Jewels Inc.;
Paras Diamond Corporation, dba Amikan; Sierra Diamonds Limited
filed limited objections to the Debtors' motion to obtain DIP
financing.
SDC Designs, et al., also filed joinder motion to Steora and
Orli's objection to the Debtors' consignment motion.
The consignment objectors asserted that the term lenders under a
term loan credit agreement with the Debtors are insiders and that
the Debtors are in liquidation mode.
SDC Designs, et al., do not consent to any provision in the
proposed final DIP order that waives the rights of the consignment
objectors or any other party-in-interest to bring suit against the
term lenders within 60 days of an appointment of the Official
Committee of Unsecured Creditors. That provision, according to
the consignment objectors, is woefully inadequate.
Marla Rosoff Eskin, Esq., and Mark T. Hurford, Esq., at Campbell &
Levine, LLC and Alan D. Halperin, Esq., Christopher J. Battaglia,
Esq., and Julie D. Dyas, Esq., at Halperin Battaglia Raicht, LLP,
represent SDC Designs, et al.
D. Arlington ISD, et al.
Arlington ISD, City of Hurst, Midland County, Lubbock CAD, Hidalgo
County, Hidalgo County Drainage District #1, Clear Creek ISD,
Alief ISD, Humble ISD, Spring Branch ISD, City of Wichita Falls,
Wichita Falls ISD, Wichita County, Cooke County, Gainesville
Hospital District, N. Central Texas College, Lateral Road Cooke
County, Gainesville ISD, and Potter County Tax Office filed
limited objection to the Debtors' motion to obtain DIP financing.
Arlington ISD, et al. are political subdivisions of the State of
Texas and are required by the constitution of the State to levy
and assess ad valorem taxes on all business personal property
located within their respective taxing jurisdictions as of January
1 of each tax year. Pursuant to Texas law, a lien automatically
attached to Debtors' business personal property located within
Arlington ISD, et. al.'s taxing jurisdictions on Jan. 1, 2008, to
secure payment of all taxes, penalties, and interest ultimately
imposed on the Debtors' property. Arlington ISD, et al., hold
claims for approximately $150,000. Their claims are secured by
prior perfected continuing enforceable tax liens upon the property
of the Debtor.
Arlington ISD, et al. asserted a limited objection to the motion
to the extent that any liens of DIP lenders or other junior
secured lien-holders attempt to prime Arlington ISD, et al.'s ad
valorem tax liens. Arlington ISD, et al. asserted their secured
lien position would be compromised if their secured tax liens are
not adequately protected.
Arlington ISD, et al. further asserted that any proceeds from any
sale of business personal property that is encumbered by Arlington
ISD, et al.'s ad valorem tax liens should be used to satisfy
Arlington ISD, et al.'s secured tax liens prior to other junior
secured lien-holders.
Elizabeth Banda, Esq., at Perdue, Brandon, Fielder, Collins &
Mott, L.P., represent Arlington ISD, et al.
E. Pyramid Walden, et al.
Landlords Pyramid Walden Company, L.P.; EklecCo NewCo LLC; Crystal
Run NewCo, LLC; Macon Mall, LLC; and Martinsburg Mall, LLC filed
limited objection to issuance of a final order on the Debtors's
DIP motion.
The objecting landlords lease nonresidential real property to the
Debtors under five separate leases.
According to the objecting landlords, the DIP agreement grants DIP
lenders liens against the leases. They related that the leases
contain provisions prohibiting the transfer of rights under the
leases, including the grant of liens.
Also, the objecting landlords said that the collateral is pledged
to the Debtors' prepetition lenders as adequate protection against
the diminution in value of the prepetition collateral. It is
unclear whether the DIP agreement provides for liens against the
objecting landlords' leases.
Tobey M. Daluz, Esq., and Leslie C. Heilman, Esq., at Ballard
Spahr Andrews & Ingersoll, LLP, and Kevin M. Newman, Esq., at
Menter, Rudin & Trivelpiece, P.C., and represent Pyramid Walden,
et al.
F. LISD
Lewisville Independent School District filed a limited objection
against the Debtors' motion to obtain DIP financing saying its
liens are not adequately protected.
LISD said it holds claims for 2008 business personal property
taxes, and is a secured creditor by virtue of its statutory tax
liens. LISD estimated its claims to be about
$15,000.
Pursuant to Texas law, on Jan. 1, 2008, a lien automatically
attached to Debtors' business personal property located within
LISD's taxing jurisdiction to secure payment of all taxes,
penalties, and interest ultimately imposed for the 2008 tax year.
Andrea Sheehan, Esq., at the Law Offices of Robert E. Luna, P.C.,
represents LISD.
G. Simon Golub, et al.
Simon Golub & Sons, Inc.; L.J. International, dba Lorenzo Jewelry
Ltd.; Legend Jewelry Co., Ltd.; and Shrenuj USA, LLC, joined with
Steora and Orli, and SDC Designs, et al. in their objections to
the Debtors' DIP motion.
Henry A. Heiman, Esq., at Heiman, Gouge & Kaufman, LLP, represents
Simon Golub, et al.
H. Centro Properties, et al.
Centro Properties Group, Kimco Realty Corporation, UBS Realty
Investors LLC, Kravco Simony Company, Aronov Realty and Developers
Diversified Realty Corporation joined with Pyramid Walden, et al.
in their objection to the Debtors' DIP motion.
Tobey M. Daluz, Esq., Leslie C. Heilman, Esq., David L. Pollack,
Esq., and Jeffrey Meyers, Esq., at Ballard Spahr Andrews &
Ingersoll, LLP, represent Centro Properties, et al.
I. Macerich and Passco
Landlords Macerich Company and Passco Companies, LLC joined with
Pyramid Walden, et al. in their objection to the Debtors' motion
to obtain DIP financing.
Tobey M. Daluz, Esq., and Leslie C. Heilman, Esq., at Ballard
Spahr Andrews & Ingersoll, LLP, and Thomas J. Leanse, Esq., and
Dustin P. Branch, Esq., at Katten Muchin Rosenman LLP, represent
Macerich and Passco.
J. Taubman Landlords
The Taubman Landlords joined in the limited objection of Pyramid
Walden, et al. to the Debtors' motion to obtain DIP financing.
The Taubman Landlords are the owners of certain retain shopping
centers which consist of:
-- TRG Charlotte LLC owner of Northlake Mall,
-- Taubman Regency Square Associates LLC owner of Regency
Square,
-- Sunvalley Shopping Center LLC owner of Sunvalley in
Concord, California,
-- Twelve Oaks Mall LLC, owner of Twelve Oaks Mall in Novi,
Michigan,
-- TJ Palm Beach Associates LP owner of The Mall at
Wellington Green in West Palm Beach Florida,
-- West Farms Mall LLC owner of West Farms Mall in
Farmington, Connecticut,
-- Woodfield Mall LLC owner of Woodfield Mall in Schaumburg,
Illinois,
-- Fairlane Town Center LLC owner of Fairlane Town Center in
Dearborn, Michigan, and
-- Dolphin Mall Associates LLC owner of Dolphin Mall in
Miami, Florida.
Susan E. Kaufman, Esq., at Heiman, Gouge & Kaufman LLP, and Andrew
S. Conway, Esq., at The Taubman company, represent the Taubman
Landlords.
About Whitehall Jewelers
Headquartered in Chicago, Illinois, Whitehall Jewelers Holdings,
Inc. -- http://www.whitehalljewellers.com/-- own and operate 375
stores jewelry stores in 39 states. Whitehall is owned by hedge
funds Prentice Capital Management and Millennium Partners LP, both
of New York, and Holtzman Opportunity Fund LP of Wilkes-Barre, Pa.
The company operates stores in regional and regional shopping
malls under the names Whitehall and Lundstrom. The Debtors'
retail stores operate under the names Whitehall (271 locations),
Lundstrom (24 locations), Friedman's (56 locations, and Crescent
(22 locations). As of June 23, 2008, the Debtors have about 2,852
workers.
The company and its affiliates, Whitehall Jewelers Inc., filed for
Chapter 11 protection on June 23, 2008 (Bankr. D. Del. Lead Case
No. 08-11261). James E. O'Neill, Esq., Kathleen P. Makowski,
Esq., and Laura Davis Jones, Esq., at Pachulski Stang Ziehl &
Jones, LLP, and Scott K. Rutsky, Esq., at Proskauer Rose LLP,
represent the Debtors in their restructuring efforts. The Debtors
selected Epiq Bankruptcy Solutions LLC as their claims, noticing
and balloting agent. Alan Kolod, Esq., at Moses & Singer LLP,
represents The Official Committee of Unsecured Creditors.
When the Debtors' filed for protection against their creditors,
they listed total assets of total assets of $207,100,000 and total
debts of $185,400,000.
WHITEHALL JEWELERS: FTI Not Disinterested, U.S. Trustee Says
------------------------------------------------------------
Roberta A. DeAngelis, acting United States Trustee for Region 3
told the U.S. Bankruptcy Court for the District of Delaware that
the engagement of FTI Consulting, Inc., as financial advisor to
Whitehall Jewelers Holdings, Inc. and Whitehall Jewelers, Inc. has
an actual conflict of interest. Hence, FTI is not a disinterested
person, the U.S. Trustee said.
The U.S. Trustee said that FTI's representation of other entities
in which the Debtors' majority shareholder holds a significant or
controlling interest may render FTI not disinterested.
Based on a supporting affidavit of Robert J. Duffy, FTI has had
certain relationships in connection with Prentice Capital
Management LP, the Debtors' majority shareholder. FTI's corporate
finance practice has been engaged by certain companies where
Prentice has a controlling or majority interest. FTI provided
certain financial advisory services to Fabrikant Inventory LLC and
Fabrikant Receivables LLC, both of which are unsecured creditors
of Whitehall Jewellers prior to the bankruptcy filing. Whitehall
listed more than $3.5 million in unsecured debt owed to M.
Fabrikant & Sons, Inc. Hence, Fabrikant is among the largest
creditors of the estate, the U.S. Trustee argued.
Prentice holds 64.93% of Whitehall's equity.
About Whitehall Jewelers
Headquartered in Chicago, Illinois, Whitehall Jewelers Holdings,
Inc. -- http://www.whitehalljewellers.com/-- own and operate 375
stores jewelry stores in 39 states. Whitehall is owned by hedge
funds Prentice Capital Management and Millennium Partners LP, both
of New York, and Holtzman Opportunity Fund LP of Wilkes-Barre, Pa.
The company operates stores in regional and regional shopping
malls under the names Whitehall and Lundstrom. The Debtors'
retail stores operate under the names Whitehall (271 locations),
Lundstrom (24 locations), Friedman's (56 locations, and Crescent
(22 locations). As of June 23, 2008, the Debtors have about 2,852
workers.
The company and its affiliates, Whitehall Jewelers Inc., filed for
Chapter 11 protection on June 23, 2008 (Bankr. D. Del. Lead Case
No. 08-11261). James E. O'Neill, Esq., Kathleen P. Makowski,
Esq., and Laura Davis Jones, Esq., at Pachulski Stang Ziehl &
Jones, LLP, and Scott K. Rutsky, Esq., at Proskauer Rose LLP,
represent the Debtors in their restructuring efforts. The Debtors
selected Epiq Bankruptcy Solutions LLC as their claims, noticing
and balloting agent. Alan Kolod, Esq., at Moses & Singer LLP,
represents The Official Committee of Unsecured Creditors.
When the Debtors' filed for protection against their creditors,
they listed total assets of total assets of $207,100,000 and total
debts of $185,400,000.
WHITEHALL JEWELERS: Section 341(a) Meeting Slated for August 7
--------------------------------------------------------------
Roberta A. DeAngelis, acting United States Trustee for Region 3
will convene a meeting of creditors of Whitehall Jewelers
Holdings, Inc. and Whitehall Jewelers, Inc. at 10:00 a.m., on
Aug. 7, 2007, at J. Caleb Boggs Federal Courthouse, 844 King
Street, Second Floor, Room 2112 in Wilmington, Delaware.
This is the first meeting of creditors required under Section
341(a) of the Bankruptcy Code in all bankruptcy cases.
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.
About Whitehall Jewelers
Headquartered in Chicago, Illinois, Whitehall Jewelers Holdings,
Inc. -- http://www.whitehalljewellers.com/-- own and operate 375
stores jewelry stores in 39 states. Whitehall is owned by hedge
funds Prentice Capital Management and Millennium Partners LP, both
of New York, and Holtzman Opportunity Fund LP of Wilkes-Barre, Pa.
The company operates stores in regional and regional shopping
malls under the names Whitehall and Lundstrom. The Debtors'
retail stores operate under the names Whitehall (271 locations),
Lundstrom (24 locations), Friedman's (56 locations, and Crescent
(22 locations). As of June 23, 2008, the Debtors have about 2,852
workers.
The company and its affiliates, Whitehall Jewelers Inc., filed for
Chapter 11 protection on June 23, 2008 (Bankr. D. Del. Lead Case
No. 08-11261). James E. O'Neill, Esq., Kathleen P. Makowski,
Esq., and Laura Davis Jones, Esq., at Pachulski Stang Ziehl &
Jones, LLP, and Scott K. Rutsky, Esq., at Proskauer Rose LLP,
represent the Debtors in their restructuring efforts. The Debtors
selected Epiq Bankruptcy Solutions LLC as their claims, noticing
and balloting agent. Alan Kolod, Esq., at Moses & Singer LLP,
represents The Official Committee of Unsecured Creditors.
When the Debtors' filed for protection against their creditors,
they listed total assets of total assets of $207,100,000 and total
debts of $185,400,000.
WISE METALS: S&P Holds 'CCC' Credit Rating with Developing Outlook
------------------------------------------------------------------
Standard & Poor's Ratings Services affirmed the 'CCC' corporate
credit rating on Wise Metals Group LLC. The outlook is
developing.
At the same time, S&P assigned a recovery rating of '6' to the
$150 million senior secured notes due 2012 issued by Wise Metals
Group LLC and Wise Alloys Finance Corp. The '6' recovery rating
indicates the expectation for negligible (0% to 10%) recovery in
the event of a payment default. The issue-level rating of 'CC'
was also affirmed.
Under the company's current capital structure, Wise Metals
maintains a $278 million borrowing-based revolving credit
facility, which S&P do not rate.
XM SATELLITE: 9.75% Senior Noteholders Waive Repurchase Obligation
------------------------------------------------------------------
XM Satellite Radio Holdings Inc. entered into a written agreement
with holders of a majority of XM Satellite Radio Inc.'s
outstanding 9.75% Senior Notes due 2014. Pursuant to the
agreement, these holders have agreed to waive XM's change of
control repurchase obligation of the 9.75% Notes with respect to
the consummation of the merger of XM Satellite Radio and Sirius
Satellite Radio Inc. Pursuant to the terms of the indenture
governing the 9.75% Notes, the waiver is effective for all holders
of the 9.75% Notes.
The waiver provides that, promptly after the closing of the
merger, XM will commence an offer to exchange the 9.75% Notes for
a combination of at least $400 million of cash and up to
$200 million aggregate principal amount of a new series of senior
notes to be issued by XM. The waiver is subject to the
consummation of the merger and the satisfaction of certain
conditions in connection with various other merger-related
refinancing transactions to be undertaken by XM prior to Aug. 31,
2008. If the merger and the satisfaction of such other conditions
have not occurred by Aug. 31, 2008, the waiver, unless extended,
will cease to be effective.
The exchange notes will mature in 2014, or 2013 in certain
circumstances. The yield to maturity on the exchange notes,
calculated solely on the basis of interest rate on the exchange
notes and the price at which they are offered in exchange for
9.75% Notes, will be calculated on the basis of the selling price
of and interest rate on certain other senior notes expected to be
issued by XM in connection with its merger-related refinancing
transactions. The effective yield on the exchange notes will not
be less than 13.92% per annum. In the event that XM issues less
than $150 million aggregate principal amount of other senior notes
in connection with its merger related refinancing transactions,
the effective yield on the exchange notes will not be less than
15% per annum.
Any offer to exchange, purchase or sell any of XM's or XM
Satellite Radio Holdings Inc.'s securities will be made only upon
the terms and conditions.
About XM Satellite Radio
Headquartered in Washington, D.C., XM Satellite Radio Holdings
Inc. (Nasdaq: XMSR) -- http://www.xmradio.com/-- is a satellite
radio company. The company broadcasts live daily from studios in
Washington, DC, New York City, Chicago, Nashville, Toronto and
Montreal.
The company also provides satellite-delivered entertainment and
data services for the automobile market through partnerships with
General Motors, Honda, Hyundai, Nissan, Porsche, Subaru, Suzuki
and Toyota.
At March 31, 2008, the company's consolidated balance sheet showed
$1.7 billion in total assets, $2.7 billion in total liabilities,
$60.2 million in minority interest, resulting in a $1.1 billion
total stockholders' deficit.
* * *
As reported in the Troubled Company Reporter on March 28, 2008,
Standard & Poor's Ratings Services said its ratings on XM
Satellite Radio Holdings Inc. and XM atellite Radio Inc.
(CCC+/Watch Developing/--) remain on CreditWatch with developing
implications, where S&P originally placed them on March 4, 2008,
due to S&P's concerns over standalone refinancing risks XM might
face if its merger with Sirius Satellite Radio Inc. (CCC+/Watch
Developing/--) wasn't approved.
* Allegheny Bankruptcy: Lesson to Healthcare Sector, Moody's Says
-----------------------------------------------------------------
The historic bankruptcy filing and payment default of Allegheny
Health and Education Research Foundation (AHERF) on July 21, 1998,
continues to teach important lessons to the non-profit healthcare
sector, according a special report issued by Moody's Investors
Service to mark the tenth anniversary of AHERF's fall.
"The AHERF collapse is a cautionary tale for today as hospitals
currently face a growing number of industry-wide pressures, which,
while different from a decade ago, make it increasingly difficult
to maintain financial health and good bond ratings," Lisa Martin,
Moody's senior vice president and author of the report, which
looks back on some of the particulars of AHERF's collapse in light
of current challenges, said.
Pennsylvania-based AHERF remains the largest bankruptcy ever in
the portfolio of Moody's-rated not-for-profit healthcare entities.
With $2 billion in revenue and $555 million of outstanding debt,
AHERF's downfall was due to both external, industry-wide forces as
well as the organization's own management and governance failures.
"However, instead of just a look back at history, the report looks
at those aspects of AHERF's downfall that are applicable in
today's environment to determine which health systems will be able
to navigate future challenges," Ms. Martin said. "We tie these
factors to current credit conditions, especially those challenges
that are making it increasingly difficult for the financial
viability and creditworthiness of sector participants."
The report identifies five chief lessons for not-for-profit
healthcare providers that were clearly at work in the AHERF case,
and which have, if anything, only become more important in the
decade since.
"We begin with the need for strong governance and oversight of
management to ensure accountability, and the importance of
disciplined growth strategies that are supported by rigorous
financial planning and feasibility analysis," Ms. Martin said.
"Also critical is physician integration to grow market share--an
effort that must be methodical and measured."
She said robust information systems are also necessary to manage
costs, maximize revenue and provide quality and clinical outcomes
that can be gauged and which the institution can point to as
competitive, even superior.
"And finally, it is vital to make full and timely disclosure of
the financial performance of all operations, including non-
obligated entities," Ms. Martin said. "This creates greater
transparency and builds a health system's credibility."
* Fitch: Most Student Loan ABS Collateral Have Stable Performance
-----------------------------------------------------------------
Most U.S. student loan ABS collateral continues to demonstrate
stable performance in the face of the negative funding issues
plaguing the student loan industry over the past year, according
to Fitch Ratings' new Student Loan Indices. In addition, the
weakening economic environment has not yet visibly affected
collateral performance as student loan delinquencies and losses
tend to lag economic cycles. As a result, Fitch does not
anticipate significant negative rating actions on FFELP student
loan ABS, though certain private student loan ABS ratings remain
at elevated risk.
The stable performance of the collateral remains at odds with
recent headlines commenting on the decreased availability of
funding for student loans and increased expense of origination.
While the Federal Government continues to take steps to alleviate
this condition, most recently in its Ensuring Continued Access to
Student Loans Act of 2008, investors have questioned whether
funding pressures will affect student loan ABS performance. To
date, Fitch has not observed any direct connection between these
market issues and collateral performance.
In addition, concern remains with regard to the impact of the
current economic environment on student loan performance, though
according to Managing Director Gary Santo, 'Student loan
performance typically lags negative economic cycles as more
students tend to defer their loan and remain in school longer or
obtain economic hardship forbearance through their servicer during
these periods.' Providing correlation, Fitch's FFELP SLI
indicates that 60+ day delinquencies actually dropped by more than
15% in first-quarter 2008, while deferment levels increased
approximately 11% during the same period.
Private student loan performance on the other hand shows some
potential signs of deterioration, said Senior Director Andrea
Murad. '60+ day delinquencies, forbearances and claims levels
have risen by an average of 22% during the same period, though
such upward movement is at least partially explained by historical
seasonal patterns,' said Murad. Additionally, significant
performance deterioration tends to be issuer-specific rather than
broad based as demonstrated by Fitch's selective negative actions
in the private SLABS sector.
Fitch's SLIs, which will be published starting in August, track
performance on 111 FFELP transactions and 48 private student loan
transactions on a quarterly basis. The indices track a number of
key performance indicators including loan status, deferment and
forbearance usage, delinquency, and default claims filed.
* Fitch: Weak US Trends Leave Beverage Cos Relying on Int'l Growth
------------------------------------------------------------------
Fitch Ratings believes that the large beverage companies will
struggle to grow organically in the United States, and that future
growth is likely to come from abroad, according to a new report.
The U.S. non-alcoholic ready-to-drink beverage market is mature,
given the industry's concentrated structure, low volume growth and
high per capita beverage consumption trends. The weakened U.S.
economy has constrained consumer spending impacting nearer term
U.S. volume growth. Longer term, it is unlikely that consumers
will make a noticeable positive shift in behaviors; i.e., drinking
more NARTD products than currently consumed due to the already
high level of beverage consumption when compared to consumption in
other developed markets. Fitch also believes that achieving
significant year-over-year U.S. growth through an acquisition
strategy will be difficult due to the limited number of potential
acquisition targets being smaller industry players.
'There are takeover candidates in the U.S. energy drink and tea
segments where large beverage companies' portfolios can be
strengthened through acquisitions. However, meaningful continued
volume growth potential is limited,' said Wesley E. Moultrie II,
Senior Director, Fitch Ratings.
To continue to grow internationally, beverage companies will have
to either make acquisitions of established local brands and
distribution networks or introduce company-owned brands and make
capital outlays to establish comprehensive local distribution
systems. Fitch believes that these strategies present execution
risks, and how companies fund growth should be a concern for
debtholders.
'The beverage companies are being pressured to grow
internationally while also returning cash to shareholders,' said
Christopher Collins, Associate Director, Fitch Ratings.
'Debtholders should anticipate potentially higher debt levels and
possibly increased leverage to fund these imperatives.'
Fitch notes that while U.S. growth may be limited, margins remain
healthy with substantial cash flow from operations.
* Fitch: High Office & Retail Volatility Led to High Delinquencies
------------------------------------------------------------------
Increased volatility in the office and retail sectors have led to
a two basis point increase in U.S. CMBS delinquencies to 0.41% in
June, according to the latest Fitch Ratings loan delinquency
index. While overall delinquencies increased only mildly for the
fifth consecutive month, the retail and office sectors led the
index with net increases of $70.5 million and $62.2 million,
respectively.
Fitch maintains that the retail sector remains under pressure.
'An increase in retail bankruptcies and a continued decline in
consumer disposable income are evident, though they have yet to
impact retail performance,' said Susan Merrick, Managing Director.
Retail loan delinquencies increased 25.7% month-over-month, due to
the addition of 15 newly delinquent loans located across 12
different states. Loans secured by retail properties represent
28.1% of the Fitch rated universe, and 13.2% of the overall loan
delinquency index. Isolating the delinquent retail loans and
comparing them to all retail loans in the Fitch-rated universe,
the sector's delinquency index has ticked up slightly to 0.21%,
from 0.17% in May. Despite relatively stable performance to date,
Fitch remains concerned about the retail sector.
'High energy and commodity prices, rising unemployment, housing
market weakness, and lower credit availability continue to
negatively impact retail sales and are expected to dampen retail
sector growth going forward', said Merrick. 'Recent store
closings, including continued bankruptcy filings of tenants such
as specialty retailer Linens 'n Things and discount-apparel
retailer Steve & Barry's, will impact retail performance.'
The uptick in delinquencies within the office sector represents a
32% increase over May's total of $222.3 million. However, the
sector continues to perform relatively well, with only 0.19% of
all office loans in the Fitch rated universe delinquent. Loans
secured by office properties comprise 29.9% of the Fitch rated
universe, but represent less than 13% of all loan delinquencies.
'Though rent growth has slowed and vacancy rates are beginning to
climb slightly, most major metropolitan office markets continue to
perform as expected,' stated Merrick. 'Office market weakness to
date has been most evident in smaller cities and suburban markets
hit hardest by challenging economic conditions.'
Hotel delinquencies rose slightly in June, as three loans ranging
in size from $2.3 to $5.4 million were added to the index. Hotel
loans comprise 10.3% of the Fitch rated universe and 5.0% of the
overall loan delinquency index. Of all hotels in Fitch-rated
transactions, 0.22% were delinquent in June.
Multifamily properties continue to represent a disproportionate
number of delinquencies. Though they represent only 14.6% of the
Fitch rated universe, multifamily properties accounted for 57.0%
of all delinquencies in June. Approximately $1.3 billion of
delinquent multifamily loans remained outstanding, giving the
sector a delinquency index of 1.77%.
Fitch notes that of the newly delinquent loans, approximately one-
third came as a result of maturity default, with borrowers unable
to refinance precisely at their maturity date. Approximately
11.1% of all loans delinquent in June were classified as non-
performing matured. A majority of non-performing matured loans
continue to pay in full or to extend their terms within 60 days of
their maturity date.
The seasoned delinquency index, which omits transactions with less
than one year of seasoning, rose by one basis point, ending the
month at 0.47%. Five transactions totaling $20.5 billion became
newly seasoned. Currently there are three delinquent loans
totaling $19.5 million which correspond to the newly seasoned
deals.
* Moody's Sees Continuous Fall of Commercial Real Estate Prices
---------------------------------------------------------------
Commercial real estate prices as measured by Moody's/REAL
Commercial Property Price Indices (CPPI) decreased 3.5% in May,
Moody's Investors Service reported. The CPPI is now 5.7% below
what it was a year earlier.
May was the 3rd month in a row that the index declined. The CPPI
now stands 8.8% below its peak in October 2007.
Moody's also notes that the average holding period between the
repeat sales that the CPPI measures has increased over the last
two years. In May it was 88 months, up from a low of just over 62
months in July 2006.
The average transaction price has also been steadily falling, with
almost 75% of all transactions on assets priced less than
$7.5 million in May, compared to 50% in May 2007.
The CPPI
Moody's/REAL Commercial Property Prices Indices are based on the
repeat sales of the same properties across the U.S. at different
points in time. Analyzing price changes measured in this way
provides maximum transparency and methodological rigor. This
approach also circumvents the distortions that can occur with
other commercial property value measurements such as appraisals or
average prices, Moody's said.
* S&P Says Soaring Oil Prices & Housing Slump Raise Default Risk
----------------------------------------------------------------
Looking at the additions to Standard & Poor's U.S. weakest links
in each month since January, the transportation, finance
companies, and homebuilders/real estate sectors show the greatest
vulnerability on an incremental basis, said an article. (Note that
weakest links are defined as entities rated 'B-' or lower with
either a negative outlook or with ratings on CreditWatch with
negative implications.) The article, which is titled "U.S. Credit
Comment: Oil And Housing Generate Incremental Default Risk By
Sector (Premium)," says that means these sectors are incrementally
adding to default risk exposure this year.
"Media and entertainment continues to lead in terms of the total
number of weakest-link additions based on count," said Diane
Vazza, head of Standard & Poor's Global Fixed Income Research
Group. "This year, the sector has added an average of 3.4 issuers
per month to the weakest-links list."
Note that appearance on the weakest links list is associated with
much higher default vulnerability for issuers than is broadly
associated with speculative-grade rated issuers overall. The
proportion of defaulters from the portfolios of U.S. weakest links
going back to 1999 in any one- or three-year period is higher than
the proportion of defaulters from the entire speculative-grade
pool.
* S&P Says US Defaults Increases in First Half of 2008
------------------------------------------------------
Through July 14, 2008, 42 companies have defaulted, affecting debt
worth $33.6 billion, said an article published by Standard &
Poor's. The article, which is titled "Global Bond Markets'
Weakest Links And Monthly Default Rates (Premium)," said this
already surpassed the 22 defaults recorded in all of 2007 and 30
defaults in 2006. Of the 41 defaults, 40 are domiciled in the
U.S., and one is from Canada. The U.S. also leads in the number
of weakest links' entities that are closest to the default
threshold - with 118 (81%) of the 145 entities.
"Through the first half of 2008, defaults have increased
significantly in the U.S. but remain scarce elsewhere," noted
Diane Vazza, head of Standard & Poor's Global Fixed Income
Research Group. The 12-month trailing global corporate
speculative-grade bond default rate declined marginally to 1.44%
in June from 1.45% in May, remaining below its long-term (1981-
2007) average of 4.35% for 53 consecutive months. The U.S.
speculative-grade default rate continued to increase, reaching
1.92% in June from 1.89% in May and a 25-year low of 0.97% at the
end of 2007. The Europe default rate declined to zero, as there
have been no publicly rated defaults in the last 12 months. The
emerging markets default rate held steady at 0.17% for the fourth
consecutive month.
"Our most recent mean baseline U.S. speculative-grade default rate
forecast is 4.7%, a sharp increase from a 25-year low of 0.97%
recorded at the end of 2007," Ms. Vazza added. "We also simulate
the default-rate impact under two alternative economic scenarios,
with one worse than the baseline and one better, both of which
have an estimated 20% chance of occurring." The pessimistic
scenario yields a mean 12-month default rate of 8.5%, nearly
double the long-term average of 4.4% but still below the peak in
2001-2002. The optimistic scenario yields an average default rate
of 3.7%, below the long-term average. S&P are in the process of
revisiting its default forecasts and expect to release a report on
it in the coming weeks.
* S&P Says NA Auto Suppliers Almost Half-Way Through a Tough 2008
-----------------------------------------------------------------
North American auto suppliers are almost half-way through a tough
2008, but the real pain has just begun, according to an Industry
Report Card. The report, titled, "North American And European
Auto Suppliers Are Facing A Difficult Second-Half 2008," Standard
& Poor's Ratings Services says it expects U.S. light-vehicle sales
to be down dramatically from 2007 levels and to remain sluggish
through the end of the year.
Low-end speculative-grade companies dominate the rated North
American auto supplier universe, and by definition these companies
are more susceptible to liquidity pressures from production cuts
at the U.S.-based automakers. "The watchword for suppliers in
2008 remains 'liquidity,'" said Standard & Poor's credit analyst
Robert Schulz, "and we will be reviewing results carefully during
the upcoming quarters."
In Europe, the sharp rise in oil prices has had a limited effect
on car purchases so far, but it is expected to have a larger
impact as time goes on. Consumers are starting to prefer smaller,
more fuel-efficient cars, even in the luxury car segments, and are
paying increasing attention to emissions. Fuel-efficiency and
carbon dioxide emissions will be crucial issues in the
relationships between automakers and auto suppliers. Closer
cooperation between the two seems the only way to face the
increasing regulatory pressure.
* S&P Places Ratings on 200 Classes from 57 CDO Under Neg. Watch
----------------------------------------------------------------
Standard & Poor's Ratings Services placed on CreditWatch negative
its ratings on 200 classes from 57 U.S. cash flow and hybrid
collateralized debt obligation of asset-backed securities and CDO
of CDO transactions. The affected classes represent an original
issuance amount of approximately $25.96 billion.
The CreditWatch negative placements reflect continued
deterioration in the credit quality of the residential mortgage-
backed securities backing the CDO transactions, as evidenced by
the increase in the number of downgrade actions Standard & Poor's
has taken on the RMBS and CDO of ABS securities held or referenced
in the transactions' portfolios.
While 22 of the 57 affected CDO transactions are mezzanine CDO of
ABS transactions, 29 are high-grade CDOs of ABS, and the remaining
six are CDOs of CDOs. Mezzanine CDOs are CDOs of ABS
collateralized at origination primarily by 'A' through 'BB' rated
tranches of RMBS and other structured finance assets, while high-
grade CDOs are CDOs of ABS typically collateralized at origination
primarily by 'AAA' through 'A' rated tranches of RMBS and other
structured finance transactions. CDOs of CDOs are collateralized
predominantly by tranches of other CDO transactions.
S&P had previously lowered 175 of the ratings S&P placed on
CreditWatch. Standard & Poor's expects to resolve the CreditWatch
placements on the affected transactions within the next several
weeks.
S&P will continue to review CDO of ABS and CDO of CDO transactions
for deterioration in collateral credit quality and will place
ratings on CreditWatch negative as appropriate.
Ratings Placed on Creditwatch Negative
Rating
Transaction Class To From
Altius III Funding Ltd. A-1a BBB/Watch Neg BBB
Altius III Funding Ltd. A-2 B+/Watch Neg B+
Altius III Funding Ltd. B CCC-/Watch Neg CCC-
Altius III Funding Ltd. S AAA/Watch Neg AAA
Altius III Funding Ltd. A-1b-1F BBB-/Watch Neg BBB-
Altius III Funding Ltd. A-1b-1B BBB-/Watch Neg BBB-
Altius III Funding Ltd. A-1a-2 BBB-/Watch Neg BBB-
Altius III Funding Ltd. A-1a-3 BBB-/Watch Neg BBB-
Altius III Funding Ltd. A-1b-V BBB-/Watch Neg BBB-
Ambassador Structured Finance CDO B AA/Watch Neg AA
Ambassador Structured Finance CDO C A-/Watch Neg A-
Ambassador Structured Finance CDO D BBB/Watch Neg BBB
Athos Funding Ltd. ABCP A+/A-1+/WatchNeg A+/A-1+
Athos Funding Ltd. A-1 A+/Watch Neg A+
Athos Funding Ltd. A-2 BB+/Watch Neg BB+
Athos Funding Ltd. B B-/Watch Neg B-
Barrington CDO Ltd. A-2 A+/Watch Neg A+
Barrington CDO Ltd. B BBB/Watch Neg BBB
Barrington CDO Ltd. C BB+/Watch Neg BB+
Barrington CDO Ltd. D BB-/Watch Neg BB-
Barrington CDO Ltd. A-1J AA+/Watch Neg AA+
Belle Haven ABS CDO 2006-1 Ltd. A-1 BBB-/Watch Neg BBB-
Belle Haven ABS CDO 2006-1 Ltd. A-2 CCC/Watch Neg CCC
Bernoulli High Grade CDO I Ltd. A-1A AA-/Watch Neg AA-
Bernoulli High Grade CDO I Ltd. A-1B AA-/Watch Neg AA-
Bernoulli High Grade CDO I Ltd. A-2 BBB+/Watch Neg BBB+
Bernoulli High Grade CDO I Ltd. B BB+/Watch Neg BB+
Bernoulli High Grade CDO I Ltd. C BB/Watch Neg BB
Bernoulli High Grade CDO I Ltd. D CCC/Watch Neg CCC
Buckingham CDO II Ltd. E BBB-/Watch Neg BBB-
Buckingham CDO III Ltd. B B/Watch Neg B
Buckingham CDO III Ltd. C CCC+/Watch Neg CCC+
Buckingham CDO III Ltd. D CCC-/Watch Neg CCC-
Buckingham CDO III Ltd. A ST BB+/Watch Neg BB+
Davis Square Funding I Ltd. A-2 AA+/Watch Neg AA+
Dunhill ABS CDO Ltd. B BBB/Watch Neg BBB
Dunhill ABS CDO Ltd. C B+/Watch Neg B+
Fort Dearborn CDO I Ltd. A-1LB AA/Watch Neg AA
Fort Dearborn CDO I Ltd. A-2L BBB/Watch Neg BBB
Fort Dearborn CDO I Ltd. A-3L BBB-/Watch Neg BBB-
Fort Dearborn CDO I Ltd. B-1L B+/Watch Neg B+
Fort Duquesne CDO 2006-1 Ltd. X AAA/Watch Neg AAA
Fort Duquesne CDO 2006-1 Ltd. A-1A AAA/Watch Neg AAA
Fort Duquesne CDO 2006-1 Ltd. A-2 BBB/Watch Neg BBB
Fort Duquesne CDO 2006-1 Ltd. B B+/Watch Neg B+
Fort Duquesne CDO 2006-1 Ltd. C CCC+/Watch Neg CCC+
Fort Duquesne CDO 2006-1 Ltd. D CCC-/Watch Neg CCC-
Fort Duquesne CDO 2006-1 Ltd. A-1B AAA/Watch Neg AAA
Fortius I Funding Ltd. B AA/Watch Neg AA
Fortius I Funding Ltd. C A/Watch Neg A
Fortius I Funding Ltd. D BBB/Watch Neg BBB
Fortius I Funding Ltd. E BB+/Watch Neg BB+
Fox Trot CDO Ltd. A B/Watch Neg B
Fox Trot CDO Ltd. B CCC/Watch Neg CCC
Fulton Street CDO Ltd. A-2 BBB+/Watch Neg BBB+
Fulton Street CDO Ltd. B-1 B/Watch Neg B
Fulton Street CDO Ltd. B-2 B/Watch Neg B
Gemstone CDO II Ltd. E BBB/Watch Neg BBB
Gemstone CDO II Ltd. F BB/Watch Neg BB
Glacier Funding CDO III Ltd. B BB+/Watch Neg BB+
Harp High Grade CDO I Ltd. A-2 AA/Watch Neg AA
Harp High Grade CDO I Ltd. B A/Watch Neg A
Harp High Grade CDO I Ltd. C BBB+/Watch Neg BBB+
Harp High Grade CDO I Ltd. D CCC/Watch Neg CCC
Hereford Street ABS CDO I Ltd. D BBB/Watch Neg BBB
Hillcrest CDO I Ltd. A-2 AA+/Watch Neg AA+
Hillcrest CDO I Ltd. B-1 A-/Watch Neg A-
Hillcrest CDO I Ltd. B-2 A-/Watch Neg A-
Hillcrest CDO I Ltd. C B+/Watch Neg B+
Hillcrest CDO I Ltd. D CCC-/Watch Neg CCC-
Hout Bay 2006-1 Ltd. A-1 A+/Watch Neg A+
Hout Bay 2006-1 Ltd. A-2 BBB/Watch Neg BBB
Hout Bay 2006-1 Ltd. B BB-/Watch Neg BB-
Hout Bay 2006-1 Ltd. C B+/Watch Neg B+
Hout Bay 2006-1 Ltd. D CCC-/Watch Neg CCC-
Kent Funding II Ltd. A-1A AA-/Watch Neg AA-
Kent Funding II Ltd. A-2 BBB-/Watch Neg BBB-
Kent Funding II Ltd. B BB/Watch Neg BB
Kent Funding II Ltd. C CCC-/Watch Neg CCC-
Kent Funding II Ltd. X AAA/Watch Neg AAA
Kent Funding II Ltd. A-1B AA-/Watch Neg AA-
Kleros Preferred Funding II Ltd. D BB+/Watch Neg BB+
Kleros Preferred Funding II Ltd. E B-/Watch Neg B-
Lancer Funding Ltd. A1J A+/Watch Neg A+
Lancer Funding Ltd. A2 BBB/Watch Neg BBB
Lancer Funding Ltd. A3 B/Watch Neg B
Liberty Harbour CDO Ltd. 2005-1 C CCC+/Watch Neg CCC+
Liberty Harbour CDO Ltd. 2005-1 D CCC-/Watch Neg CCC-
Liberty Harbour II CDO Ltd. ACP BBB/A-2/Watch Neg BBB/A-2
Liberty Harbour II CDO Ltd. A-1 CCC/Watch Neg CCC
Longshore CDO Funding 2006-1 Ltd. C BB/Watch Neg BB
Longshore CDO Funding 2006-1 Ltd. D CCC-/Watch Neg CCC-
Madaket Funding I Ltd. A1M AAA/Watch Neg AAA
Madaket Funding I Ltd. A1Q AAA/Watch Neg AAA
Madaket Funding I Ltd. A2 AA/Watch Neg AA
Madaket Funding I Ltd. A3 A-/Watch Neg A-
Madaket Funding I Ltd. A4 BBB/Watch Neg BBB
Madaket Funding I Ltd. B BB/Watch Neg BB
Madaket Funding I Ltd. C B-/Watch Neg B-
Marathon Structured Finance CDO I D BBB-/Watch Neg BBB-
Marathon Structured Finance CDO I E CCC+/Watch Neg CCC+
McKinley II Funding Ltd. A-1 AA-/Watch Neg AA-
McKinley II Funding Ltd. A-2 BBB+/Watch Neg BBB+
Mercury CDO II Ltd. A-2 AA+/Watch Neg AA+
Mercury CDO II Ltd. B BBB/Watch Neg BBB
Mercury CDO II Ltd. C CCC+/Watch Neg CCC+
Millerton ABS CDO Ltd. B A-/Watch Neg A-
Millerton ABS CDO Ltd. C BB/Watch Neg BB
Millerton II High Grade ABS CDO A-2 A-/Watch Neg A-
Millerton II High Grade ABS CDO B BBB-/Watch Neg BBB-
Millerton II High Grade ABS CDO C BB/Watch Neg BB
Millerton II High Grade ABS CDO D CCC+/Watch Neg CCC+
Millstone III CDO Ltd. A-1A BB+/Watch Neg BB+
Millstone III CDO Ltd. A-1B B-/Watch Neg B-
Millstone III CDO Ltd. A-2 CCC+/Watch Neg CCC+
Millstone III CDO Ltd. B CCC-/Watch Neg CCC-
MKP CBO III Ltd. C B+/Watch Neg B+
MKP CBO III Ltd. B/C Combo BBB/Watch Neg BBB
MKP CBO IV Ltd. B A+/Watch Neg A+
MKP CBO IV Ltd. C BBB-/Watch Neg BBB-
Monterey CDO Ltd. A-3 A+/Watch Neg A+
Monterey CDO Ltd. B BB+/Watch Neg BB+
Monterey CDO Ltd. C BB/Watch Neg BB
Monterey CDO Ltd. D B/Watch Neg B
Monterey CDO Ltd. E CCC/Watch Neg CCC
North Cove CDO Ltd. B AA/Watch Neg AA
North Cove CDO Ltd. C BBB/Watch Neg BBB
North Cove CDO Ltd. D BB/Watch Neg BB
Northlake CDO I Ltd. I-A AA/Watch Neg AA
Northlake CDO I Ltd. II B/Watch Neg B
Oceanview CBO I Ltd. A-1B BBB-/Watch Neg BBB-
Oceanview CBO I Ltd. Comb Sec BBB-/Watch Neg BBB-
Oceanview CBO I Ltd. A-2 CCC-/Watch Neg CCC-
Opus CDO I Ltd. C BBB/Watch Neg BBB
Opus CDO I Ltd. D BB+/Watch Neg BB+
Opus CDO I Ltd. Sub Notes B-/Watch Neg B-
Opus CDO I Ltd. Combo Note BBB/Watch Neg BBB
Orchid Structured Finance CDO II A-2 AA+/Watch Neg AA+
Orchid Structured Finance CDO II A-3 BBB/Watch Neg BBB
Orchid Structured Finance CDO II B BB/Watch Neg BB
Orient Point CDO Ltd. A-1V AA+/Watch Neg AA+
Orient Point CDO Ltd. A-2 A-/Watch Neg A-
Orient Point CDO Ltd. B BBB/Watch Neg BBB
Orient Point CDO Ltd. C BBB-/Watch Neg BBB-
Orient Point CDO Ltd. D BB+/Watch Neg BB+
Orient Point CDO Ltd. E B+/Watch Neg B+
Orient Point CDO Ltd. A-1NVA AA+/Watch Neg AA+
Orient Point CDO Ltd. A-1NVB AA+/Watch Neg AA+
Sheffield CDO II Ltd. A-3 A/Watch Neg A
Sheffield CDO II Ltd. B BBB-/Watch Neg BBB-
Sheffield CDO II Ltd. C B+/Watch Neg B+
Solstice ABS CBO II Ltd. B BB/Watch Neg BB
Solstice ABS CBO II Ltd. C CCC-/Watch Neg CCC-
Solstice ABS CBO III Ltd. B A/Watch Neg A
Solstice ABS CBO III Ltd. C-1 B-/Watch Neg B-
Solstice ABS CBO III Ltd. C-2 B-/Watch Neg B-
STAtic ResidenTial CDO 2005-A Ltd D BBB/Watch Neg BBB
Stockbridge CDO Ltd. A-2 AA+/Watch Neg AA+
Stockbridge CDO Ltd. A-3 A+/Watch Neg A+
Stockbridge CDO Ltd. B BBB+/Watch Neg BBB+
Straits Global ABS CDO I Ltd. A-2 AAA/Watch Neg AAA
Straits Global ABS CDO I Ltd. B-1 BBB-/Watch Neg BBB-
Straits Global ABS CDO I Ltd. B-2 BBB-/Watch Neg BBB-
Straits Global ABS CDO I Ltd. C-1 B/Watch Neg B
Straits Global ABS CDO I Ltd. C-2 B/Watch Neg B
Straits Global ABS CDO I Ltd. A Combo BB+/Watch Neg BB+
Straits Global ABS CDO I Ltd. B Combo BB+/Watch Neg BB+
Structured Finance Advisors ABS B BBB-/Watch Neg BBB-
CDO III Ltd.
Structured Finance Advisors ABS C CCC-/Watch Neg CCC-
CDO III Ltd.
Summer Street 2005-1 Ltd. A-2 AA/Watch Neg AA
Summer Street 2005-1 Ltd. A-3 BBB+/Watch Neg BBB+
Summer Street 2005-1 Ltd. B BB+/Watch Neg BB+
Summer Street 2005-1 Ltd. C B/Watch Neg B
TIAA Structured Finance CDO II LtdB BBB/Watch Neg BBB
Tierra Alta Funding I Ltd. A-1 AAA/Watch Neg AAA
Tierra Alta Funding I Ltd. A-2 AA-/Watch Neg AA-
Tierra Alta Funding I Ltd. A3A A+/Watch Neg A+
Tierra Alta Funding I Ltd. A3B A+/Watch Neg A+
Tierra Alta Funding I Ltd. B1A BBB/Watch Neg BBB
Tierra Alta Funding I Ltd. B1B BBB/Watch Neg BBB
Tierra Alta Funding I Ltd. C BB-/Watch Neg BB-
West Coast Funding I Ltd. A-1a AAA/Watch Neg AAA
West Coast Funding I Ltd. A-1b AA/Watch Neg AA
West Coast Funding I Ltd. A-1v AA/Watch Neg AA
West Coast Funding I Ltd. A-2 A/Watch Neg A
West Coast Funding I Ltd. A-3 BBB/Watch Neg BBB
West Coast Funding I Ltd. B B/Watch Neg B
West Coast Funding I Ltd. C CCC/Watch Neg CCC
West Coast Funding I Ltd. D CCC-/Watch Neg CCC-
Whately CDO I Ltd. A-1BV A+/Watch Neg A+
Whately CDO I Ltd. A-1BF A+/Watch Neg A+
Whately CDO I Ltd. A-2 BB+/Watch Neg BB+
Whately CDO I Ltd. A-3 B+/Watch Neg B+
Zais Investment Grade Ltd. IX B A+/Watch Neg A+
Zais Investment Grade Ltd. IX C BBB-/Watch Neg BBB-
Zais Investment Grade Ltd. IX D B+/Watch Neg B+
Zais Investment Grade Ltd. X A-4 A-/Watch Neg A-
Zais Investment Grade Ltd. X B BBB-/Watch Neg BBB-
Zais Investment Grade Ltd. X C CCC+/Watch Neg CCC+
Zais Investment Grade Ltd. X D CCC-/Watch Neg CCC-
* Becker & Poliakoff Expands; Ryan Pinder Leads New Bahamas Branch
------------------------------------------------------------------
Becker & Poliakoff P.A. disclosed that Ryan Pinder, a shareholder
and Board Certified Tax attorney in the firm's Corporate & Tax Law
Group, has been named to head the firm's new office in Nassau,
Bahamas.
Mr. Pinder, a Bahamian native admitted to the Florida Bar in 2000,
holds Juris Doctor and Master of Tax Law degrees from the
University of Miami where he also earned BBA and MBA degrees in
Business and Finance. Recently named a Board Certified expert in
Tax Law by the Florida Bar, Mr. Pinder also serves as the editor
of Tax Alert, the firm's newsletter on tax issues.
Mr. Pinder will be available to provide U.S. counsel to companies
and individuals doing business in the Bahamas well as to Bahamians
seeking U.S. legal advice. Specifically, he will advise U.S.
based service providers and contractors who are looking at
opportunities related to the wide-scale investment boom in various
infrastructure, hospitality and other projects approved by the
Bahamas Government.
Mr. Pinder will be supported in the firm's Ft. Lauderdale office
by Yolanda Cash Jackson, a firm shareholder and experienced
Government Law attorney with family ties to the Bahamas, who
represents South Florida cities as well as higher education
institutions and health care providers.
"Becker & Poliakoff is very pleased to name [Mr.] Pinder to head
our new office in the Bahamas," Alan Becker, managing partner,
Becker & Poliakoff, said. "With the growing number of foreign
investors, banks and trust companies with business in the region,
there is a substantial market for U.S. legal counsel."
"[Mr. Pinder's] extensive experience in U.S. corporate and tax law
in addition to his family background and educational experience in
the Bahamas makes him the perfect person to launch this office and
take advantage of the natural ties between the Florida and
Bahamian economies," Mr. Becker said.
"I'm excited at this opportunity to return to Nassau to help
contribute to the growth of industry and business interests in the
Bahamas and positively impact the Bahamian community,"
Mr. Pinder said. "The Bahamian government has approved more than
$40 billion of direct foreign investment over the last six years
and with much of that tied to the United States in some capacity,
our services will satisfy the growing need for legal counsel felt
by Bahamian individuals and companies, their U.S.-based partners
and investors in the Bahamas."
"Becker & Poliakoff's entrance into the Bahamian legal marketplace
does not mean the firm will compete with local law firms, but
instead will look to provide assistance with legal and taxation
matters related to the US," Mr. Pinder said.
About Becker & Poliakoff P.A.
Becker & Poliakoff P.A. is a diversified commercial law firm based
in Ft. Lauderdale with more than 125 attorneys in 15 Florida
offices and U.S. and offices in New York, Czech Republic, Germany,
China, France and Israel. Founded in South Florida in 1973,
Becker & Poliakoff opened its first foreign office in Prague in
1993. The firm provides its clients with a full range of legal
services in areas such as homeowner and community association law;
civil and complex commercial litigation; construction law; real
estate law; bankruptcy and financial restructuring; international
business, customs and trade law; entertainment, sports and gaming
law; government law and lobbying; land use, planning and zoning;
immigration law; technology and telecommunications law;
intellectual property; corporate, tax and securities law; offshore
asset protection and estate planning; collections and foreclosure;
and more.
* MorrisAnderson-Chicago Office Welcomes Alpesh Amin as Consultant
------------------------------------------------------------------
Alpesh Amin has joined MorrisAnderson's Chicago office as a
consultant.
Howard Korenthal, principal, says "We are very happy to have
[Mr. Amin] as part of the MorrisAnderson team. [Mr. Amin] brings
to MorrisAnderson over nine years of experience in the areas of
corporate finance, restructuring and banking in a broad range of
industries, well as experience working on large Chapter 7 and
Chapter 11 bankruptcy projects. He will be a great asset to our
organization."
Mr. Amin has served in the advisory capacity for both company
management and for creditors. His background includes Chapter 11
bankruptcy process management, business plan development and
analysis, debt restructurings, asset sales and liquidations, cash
flow management and forecasting and due diligence assignments.
Mr. Amin's bankruptcy experience includes working on the financial
advisory team for the Chapter 7 trustee for Refco LLC, a commodity
futures broker where he assisted the United States Trustee in
reconciling approximately $4.7 billion in claims against the
estate, realizing value for assets and collecting proceeds for
receivables and disposing of remaining assets.
Additionally, Mr. Amin worked on the financial advisory team to
the Chapter 11 trustee of Epic Resorts, a time share developer,
implementing a number of performance improvements where he helped
stabilize operations, resulting in the company's ability to secure
financing and the eventual successful sale of the company.
Prior to joining MorrisAnderson, Mr. Amin held consulting
positions in Chicago with Huron Consulting Group's Corporate
Advisory Services office, focusing on restructuring and turnaround
engagements, and Bridge Associates, specializing in turnaround,
interim and wind down management services. Previously, Mr. Amin
held positions with Merrill Lynch's Investment Banking group in
Chicago, providing mergers and acquisitions advisory in a variety
of industries, and with LaSalle Bank's Leveraged Finance and
Syndications groups in Chicago.
Mr. Amin holds a bachelor's degree in Business Administration,
Finance and Management Information Systems, from Miami University.
He is a member of the Turnaround Management Association and the
American Bankruptcy Institute.
About MorrisAnderson
Chicago-based MorrisAnderson has offices in New York, Atlanta,
Milwaukee, Los Angeles, Cleveland, Nashville and St. Louis. The
firm's service offerings include performance improvement,
financial advisory, investment banking, interim management, lender
services, turnarounds, workouts, litigation support, valuation,
information technology services, and insolvency services and wind-
downs. MorrisAnderson emphasizes hands-on involvement for
companies with $20 million to $200 million in annual sales.
MorrisAnderson's health-care division is based in Nashville,
Tennessee.
* Keith Bishop Joins Allen Matkins' Orange County Unit as Partner
-----------------------------------------------------------------
Allen Matkins Leck Gamble Mallory & Natsis LLP discloses the
addition of Keith Paul Bishop as a partner in the firm's Orange
County office.
Mr. Bishop joins Allen Matkins' corporate and securities practice
group. He represents clients in a range of corporate finance
transactions, including public and private securities offerings of
debt and equity, mergers and acquisitions, corporate governance
matters and federal and state securities laws, including the
Sarbanes-Oxley Act of 2002, investment adviser and financial
services regulation, and California administrative law.
He regularly advises clients on compliance, licensing, regulatory
and civil enforcement issues. He has advised clients in
connection with several internal corporate investigations,
including investigations of stock option backdating.
"We are excited about having [Mr. Bishop] join Allen Matkins," Joe
Davidson, chair of Allen Matkins' corporate practice group, said.
"He will expand our growing corporate securities practice. Known
for his expertise on federal and state securities law and
corporate governance issues, he regularly serves as outside
corporate counsel to a number of leading international, national
and California businesses."
"[Mr. Bishop] is highly regarded in the business community and has
vast experience working on corporate and securities law issues,"
Bob Hamilton, managing partner of Allen Matkins' Orange County
office, said. "He will be a major asset to the firm and our
clients."
He has held several significant California government positions
including Commissioner of Corporations for the State of California
(1996-1997); Deputy Secretary for Business Regulations and General
Counsel to the California Business Transportation and Housing
Agency (1993-1996); and Interim Savings and Loan Commissioner for
the State of California (1993-1996). In 1991, Mr. Bishop was
appointed by the Rules Committee of the California Senate to the
California Senate Commission on Corporate Governance, Shareholder
Rights and Securities Transactions.
As Commissioner of Corporations, he was responsible for the
administration and enforcement of the laws governing the offer and
sale of securities, securities broker-dealers, investment
advisers, financial lenders, mortgage lenders, credit unions, the
offer and sale of franchises, escrow companies, and health
maintenance organizations. As Deputy Secretary and General
Counsel to the Business, Transportation and Housing Agency, he was
responsible for policy of the business regulatory departments with
the agency.
He is a past co-chair of the Corporations Committee of the
Business Law Section of the California State Bar and a past member
of the Executive Committee of the Business Law Section. He has
also served as Chairman of the Business and Corporate Law Section
of the Orange County Bar Association and a member of the
Administration of Justice Committee of the Orange County Bar
Association. Mr. Bishop is the California liaison to the American
Bar Association's Committee on the State Regulation of Securities.
Mr. Bishop has written numerous articles on corporate and
securities laws and is the author of a treatise on the corporate
law of Nevada, "Nevada Law of Corporations and Business
Organizations." He is a practice consultant to "Marsh & Volk,
Practice under the California Securities Laws."
He is also a frequent speaker on securities and corporate law
topics and for the last several years has been an adjunct
professor of law at Chapman University Law School.
He was a partner with the law firm of Buchalter Nemer and managing
partner of Buchalter's Orange County office. Mr. Bishop received
his Juris Doctorate from University of Southern California Law
School and his Bachelor of Arts from Harvard University.
About Allen Matkins
Based in Los Angeles, California, Allen Matkins Leck Gamble
Mallory & Natsis LLP -- http://www.allenmatkins.com/-- is a law
firm with approximately 240 attorneys practicing out of seven
offices in Los Angeles, Orange County, San Francisco, San Diego,
Century City, Del Mar Heights and Walnut Creek. Founded in 1977,
the firm's broad-based areas of practice include real estate,
construction, real estate finance, land use, business litigation,
environmental, corporate, taxation, bankruptcy and creditors'
rights, and employment and labor law.
* Upcoming Meetings, Conferences and Seminars
---------------------------------------------
July 29, 2008
TURNAROUND MANAGEMENT ASSOCIATION
Employment Issues Following Hurricanes & Disasters
Centre Club, Tampa, Florida
Contact: http://www.turnaround.org/
July 31 - Aug. 2, 2008
AMERICAN BANKRUPTCY INSTITUTE
4th Annual Mid-Atlantic Bankruptcy Workshop
Hyatt Regency Chesapeake Bay
Cambridge, Maryland
Contact: http://www.abiworld.org/
Aug. 16-19, 2008
AMERICAN BANKRUPTCY INSTITUTE
13th Annual Southeast Bankruptcy Workshop
Ritz-Carlton, Amelia Island, Florida
Contact: http://www.abiworld.org/
Aug. 20-24, 2008
NATIONAL ASSOCIATION OF BANKRUPTCY JUDGES
NABT Convention
Captain Cook, Anchorage, Alaska
Contact: http://www.nabt.com/
Aug. 26, 2008
TURNAROUND MANAGEMENT ASSOCIATION
Do's and Don'ts of Investing in a Turnaround
Citrus Club, Orlando, Florida
Contact: http://www.turnaround.org//
Sept. 4-5, 2008
AMERICAN BANKRUPTCY INSTITUTE
Complex Financial Restructuring Program
Four Seasons, Las Vegas, Nevada
Contact: http://www.abiworld.org/
Sept. 4-6, 2008
AMERICAN BANKRUPTCY INSTITUTE
Southwest Bankruptcy Conference
Four Seasons, Las Vegas, Nevada
Contact: http://www.abiworld.org/
Sept. 17, 2008
TURNAROUND MANAGEMENT ASSOCIATION
Real Estate / Condo Restructuring Panel
Marriott North, Fort Lauderdale, Florida
Contact: http://www.turnaround.org//
Sept. 24-26, 2008
INTERNATIONAL WOMEN'S INSOLVENCY & RESTRUCTURING CONFEDERATION
IWIRC 15th Annual Fall Conference
Scottsdale, Arizona
Contact: http://www.ncbj.org/
Sept. 24-27, 2008
NATIONAL CONFERENCE OF BANKRUPTCY JUDGES
National Conference of Bankruptcy Judges
Desert Ridge Marriott, Scottsdale, Arizona
Contact: http://www.iwirc.org/
Sept. 30, 2008
TURNAROUND MANAGEMENT ASSOCIATION
Private Equity Panel
Centre Club, Tampa, Florida
Contact: http://www.turnaround.org//
Oct. 9, 2008
TURNAROUND MANAGEMENT ASSOCIATION
TMA Luncheon - Chapter 11
University Club, Jacksonville, Florida
Contact: http://www.turnaround.org/
Oct. 28, 2008
TURNAROUND MANAGEMENT ASSOCIATION
State of the Capital Markets
Citrus Club, Orlando, Florida
Contact: http://www.turnaround.org//
Oct. 28-31, 2008
TURNAROUND MANAGEMENT ASSOCIATION
TMA Annual Convention
Marriott New Orleans, Louisiana
Contact: 312-578-6900; http://www.turnaround.org/
Oct. 30 & 31, 2008
BEARD GROUP & RENAISSANCE AMERICAN CONFERENCES
Physicians Agreements and Ventures
Contact: 800-726-2524; 903-595-3800;
http://www.renaissanceamerican.com/
Nov. 19, 2008
TURNAROUND MANAGEMENT ASSOCIATION
Interaction Between Professionals in a
Restructuring/Bankruptcy
Bankers Club, Miami, Florida
Contact: 312-578-6900; http://www.turnaround.org/
Dec. 3-5, 2008
AMERICAN BANKRUPTCY INSTITUTE
20th Annual Winter Leadership Conference
Westin La Paloma Resort & Spa
Tucson, Arizona
Contact: http://www.abiworld.org/
July 16-19, 2009
AMERICAN BANKRUPTCY INSTITUTE
Northeast Bankruptcy Conference
Mt. Washington Inn
Bretton Woods, New Hampshire
Contact: http://www.abiworld.org/
Sept. 10-12, 2009
AMERICAN BANKRUPTCY INSTITUTE
17th Annual Southwest Bankruptcy Conference
Hyatt Regency Lake Tahoe, Incline Village, Nevada
Contact: http://www.abiworld.org/
Oct. 5-9, 2009
TURNAROUND MANAGEMENT ASSOCIATION
TMA Annual Convention
Marriott Desert Ridge, Phoenix, Arizona
Contact: 312-578-6900; http://www.turnaround.org/
Dec. 3-5, 2009
AMERICAN BANKRUPTCY INSTITUTE
21st Annual Winter Leadership Conference
La Quinta Resort & Spa, La Quinta, California
Contact: 1-703-739-0800; http://www.abiworld.org/
Oct. 4-8, 2010
TURNAROUND MANAGEMENT ASSOCIATION
TMA Annual Convention
JW Marriott Grande Lakes, Orlando, Florida
Contact: http://www.turnaround.org/
BEARD AUDIO CONFERENCES
2006 BACPA Library
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com
BEARD AUDIO CONFERENCES
BAPCPA One Year On: Lessons Learned and Outlook
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
Carve-Out Agreements for Unsecured Creditors
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
Changing Roles & Responsibilities of Creditors' Committees
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Chinas New Enterprise Bankruptcy Law
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Clash of the Titans -- Bankruptcy vs. IP Rights
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Coming Changes in Small Business Bankruptcy
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Corporate Bankruptcy Bootcamp: A Nuts & Bolts Primer
for Navigating the Restructuring Process
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
Deepening Insolvency Widening Controversy: Current Risks,
Latest Decisions
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Diagnosing Problems in Troubled Companies
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Distressed Claims Trading
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Distressed Market Opportunities
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
Employee Benefits and Executive Compensation under the New
Code
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Equitable Subordination and Recharacterization
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Examining the Examiners: Pros and Cons of Using
Examiners in Chapter 11 Proceedings
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
Handling Complex Chapter 11
Restructuring Issues
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
High-Yield Opportunities in Distressed Investing
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Homestead Exemptions under BAPCPA
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Hospitals in Crisis: The Insolvency Crisis Plaguing
Hospitals Across the U.S.
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
IP Rights In Bankruptcy
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
KERPs and Bonuses under BAPCPA
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
New 'Red Flag' Identity Theft Rules
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com
BEARD AUDIO CONFERENCES
Non-Traditional Lenders and the Impact of Loan-to-Own
Strategies on the Restructuring Process
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Partnerships in Bankruptcy: Unwinding The Deal
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
Real Estate Bankruptcy
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Reverse Mergersthe New IPO?
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Second Lien Financings and Intercreditor Agreements
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Surviving the Digital Deluge: Best Practices in E-Discovery
and Records Management for Bankruptcy Practitioners
and Litigators
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Technology as a Competitive Advantage For Todays Legal
Processes
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
The Battle of Green & Red: Effect of Bankruptcy
on Obligations to Clean Up Contaminated Property
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
The Subprime Sector Meltdown:
Legal Developments and Latest Opportunities
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Twenty-Day Claims
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Using Virtual Data Rooms to Expedite Corporate Restructuring
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com
BEARD AUDIO CONFERENCES
Using Virtual Data Rooms to Expedite M&A and Insolvency
Proceedings
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
When Tenants File -- A Landlord's BAPCPA Survival Guide
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. Raphael M. Palomino, Shimero R. Jainga, Ronald C. Sy, Joel
Anthony G. Lopez, Cecil R. Villacampa, Melanie C. Pador, Ludivino
Q. Climaco, Jr., Loyda I. Nartatez, Tara Marie A. Martin, Joseph
Medel C. Martirez, Ma. Cristina I. Canson, Christopher G.
Patalinghug, and Peter A. Chapman, Editors.
Copyright 2008. 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 $775 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 ***