/raid1/www/Hosts/bankrupt/TCR_Public/080918.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Thursday, September 18, 2008, Vol. 12, No. 223
Headlines
505 CLO: Moody's Assigns 'Ba2' Rating on $18MM Class D Jr. Notes
1540 FULLERTON: Case Summary & 16 Largest Unsecured Creditors
A-BEST PLUMBING: Case Summary & 18 Largest Unsecured Creditors
ABITIBIBOWATER: NWQ Investment & Lord Abbett Disclose Equity Stake
ACCENTIA BIOPHARMA: Files Amended Registration Statement With SEC
AMEREX GROUP: Receives Two Default Judgments Totaling $1.7 Million
AMEREX GROUP: Meeting With Potential Investors Set for This Month
AMERICAN MORTGAGE: Board Defers Dividend Payment to Preserve Funds
APP PHARMACEUTICALS: NASDAQ Removes Listing of Common Stock
ASARCO LLC: Files First Amended Joint Chapter 11 Plan
ASARCO LLC: Asbestos Panel Wants Parent to Deposit $2.7 Billion
ASARCO LLC: Govt., Creditors Find Disclosure Statement Inadequate
ASARCO LLC: Liquidation Analysis Under Amended Plan
ASARCO LLC: Claims Treatment & Classification Under Amended Plan
BEACH LANE: Sale of Hamptons Estate Approved; Bids Due Nov. 4
ASARCO LLC: Robert Pate Wants to Employ Oppenheimer as Counsel
ASARCO LLC: Asbestos Panel Wants to Employ Stutzman as Counsel
ASPEN EXECUTIVE: To File Plan, Disclosure Statement By Sept. 23
ASSET SECURITIZATION: Fitch Keeps 'C/DR2' Rtng on Class A-4 Certs.
AVISTAR COMM: Signs Licensed Works & Patent License Pacts With IBM
BAKERS FOOTWEAR: Posts $2.2 Million Net Loss in Qtr. Ended Aug. 2
BEAZER HOMES: Citigroup Discloses 3.8% Equity Stake
BERKELEY PREMIUM: Files for Chapter 11 Bankruptcy in Ohio
BERKELEY PREMIUM: Case Summary & 18 Largest Unsecured Creditors
BKF CAPITAL: Catalyst Fund Appoints Directors to Board
BON-TON STORES: Files Form 10-Q With SEC
BOOM DRILLING: Court Okays Payment of Pre-Bankruptcy Wages
BOSCOV'S INC: Can Hire Jones Day as Lead Bankruptcy Counsel
BOSCOV'S INC: Can Hire Richards Layton as Bankruptcy Co-Counsel
BOSCOV'S INC: Court Extends Lease Decision Period Until March 2
CANADIAN TRUST: Investor Arranges $85MM Loan Facility with HSBC
CANADIAN TRUST: Noteholders Appeal Plan Order to High Court
CANADIAN TRUST: Panel Says Appeal Unimportant for Supreme Court
CANADIAN TRUST: Court Extends CCAA Protection Until Sept. 30
CANADIAN TRUST: Plan Implementation Extended to October 31
CANADIAN TRUST: Court Extends CCAA Protection Until Sept. 30
CANNERY CASINO: Moody's Affirms Corporate Family Rating at 'B2'
CANNERY CASINO: Moody's Changes Loan Ratings from B2 to B1
CAPITAL GROWTH: Posts $7.2MM Net Loss in Qtr Ended June 30
CAPITAL GROWTH: Global Capacity Unit Sells NexVu Technologies
CAPITAL GROWTH: Global Capacity Unit Sells NexVu Technologies
CAPITOL PERFORMING: Files for Bankruptcy Protection
CAPRIUS INC: AWM Investment Co. Discloses 81.1% Equity Stake
CARBIZ INC: July 31 Balance Sheet Upside-Down by $15,647,041
CARBONE COS: Wins Bankruptcy Court Approval to Use Cash Collateral
CARBONE COS: Wants Time to File Schedules Extended to Oct. 3
CARLSON MINING: Voluntary Chapter 11 Case Summary
CARUSO HOMES: Meeting of Creditors Slated for September 22
CARUSO HOMES: Files Schedules of Assets and Liabilities
CASH SYSTEMS: Morgan Stanley, FrontPoint No Longer Own Stocks
CELERON CORPORATION: Case Summary & 20 Largest Unsecured Creditors
CENTRAL SUN: Signs Term Sheet for $22.5 Million Debt Funding
CITY CAPITAL: June 30 Balance Sheet Upside-Down by $1,261,973
COMSTOCK HOMEBUILDING: Signs Forbearance Pact With Regions Bank
COMSTOCK HOMEBUILDING: Gets Default Notices From Bank of America
CONPOREC: Closes C$1.5MM Interim Loan from European Contractor
CONTINENTAL AIRLINES: August 2008 Load Factor at 84.9 Percent
COREL CORP: To Reduce Global Workforce by 90 Employees
CROSSPOINT ENERGY: Case Summary & 19 Largest Unsecured Creditors
CV THERAPEUTICS: Mazama Capital Discloses 3.8% Equity Stake
DAVID KEMPTON: Case Summary & 20 Largest Unsecured Creditors
DAVID RUSSELL: Case Summary & 20 Largest Unsecured Creditors
DELUXE ENTERTAINMENT: Moody's Affirms 'B1' CF and POD Ratings
DIAMOND GLASS: Plainfield Wants Ex-CEO Claim Re-characterized
DONALD FELDMAN: Case Summary & 35 Largest Unsecured Creditors
DORADO BECKVILLE: Plan Declared Effect After $74MM Asset Sale
DRESSER INC: Moody's Holds Ratings on Completed Fin'l Statements
ECOVENTURE WIGGINS: Wants to Sell Unit, Boat Slip for $3.1MM
ELCOM INTERNATIONAL: Dec. 31 Balance Sheet Upside Down by $1.1MM
EMILY MAESTAS: Case Summary & 15 Largest Unsecured Creditors
ENCAP GOLF: Can Terminate Meadowlands Deal With Trump Organization
ENRON CORP: Bankruptcy Court Won't Address Securities Issues
ENRON CORP: Texas Court Okays $7.2 Billion Allocation Plan
ENRON CORP: Coughlin Gets $688MM in Fees From Shareholder Suit
EPICEPT CORP: Compensation Panel Okays Grant of 205,000 Options
EPIX PHARMA: Collaboration With Bayer Schering Ends March 2009
FANNIE MAE: Regulator Opposes Ex-CEO's Severance Payment
FOCUS ENHANCEMENTS: Files for Ch. 11 Bankruptcy in California
FOCUS ENHANCEMENTS: Case Summary & 20 Largest Unsecured Creditors
FORD MOTOR: Tracinda Corp. Discloses 6.43% Equity Stake
FORD MOTOR: June 30 Balance Sheet Upside-Down by $1.7 Billion
FREDDIE MAC: Regulator Opposes Ex-CEO's Severance Payment
FREMONT GENERAL: Nov. 10 Set as Deadline for Filing Claims
GENERAL MOTORS: Southeastern Asset Discloses 2.3% Equity Stake
HARRINGTON TOOLS: Case Summary & 20 Largest Unsecured Creditors
H&H MEAT: Court Approves Reorganization Plan
HILEX POLY: Shuts Down Plant in Old Mount Olive Highway
HOVNANIAN ENTERPRISES: Posts $674.1MM Loss for Q3 Ended July 31
IDEARC INC: Hotchkis and Wiley Disclose Minimal Equity Stake
IMPAX MANAGEMENT: Loan Default Cues Foreclosure of 2MM Trust Units
INLET RETAIL: Selling Mall to Pay Lender, Avoid Foreclosure
INNOPHOS HOLDINGS: Moody's Lifts Corp. Family Rating to Ba3
INSMED INC: NASDAQ Panel May Grant Request to Remain Listed
INTERSTATE BAKERIES: Pact with 16 Taxing Authorities Approved
JEFFERSON COUNTY: Says Wall Street Crisis May Slow Debt Talks
JP MORGAN: Fitch to Rate $6.37MM Class E Trust 'BB'
KNOLOGY INC: Moody's Holds 'B2' Rating; Changes Outlook to Pos.
LB-UBS COMMERCIAL: Moody's Reviews Ratings for Possible Cuts
LEHMAN BROTHERS: Case Summary & 31 Largest Unsecured Creditors
LEHMAN BROTHERS: Bankruptcy Filing Cues S&P to Change Indices
LEHMAN BROTHERS: Fitch Trims 260 Tender Options Bonds Ratings to D
LISA-CLAIRE SANWALL: Case Summary & 20 Largest Unsec. Creditors
LODGENET INTERACTIVE: Names Young as Chief Marketing Officer
LOLA: Files for Chapter 11 Bankruptcy Protection
MARY WICKMAN: Largest Creditor Takes Over New River Marina
MATRIX DEVELOPMENT: May Use Cash Collateral in Orenco Project
MATRIX DEVELOPMENT: May Use Cash Collateral in Walnut Creek
MATRIX DEVELOPMENT: May Use Cash Collateral in Williamette
MATRIX DEVELOPMENT: May Use Cash Collateral in Q Condominiums
MEDIACOM COMM: To Buy Back 30% of Outstanding Shares from Shivers
MERCURY COS: Files Schedules of Assets and Liabilities
METRO ONE DEVELOPMENT: Registers September Stock Option Plan
MICHAEL JEWETT: Case Summary & Eight Largest Unsecured Creditors
MICHAEL STORES: Moody's Cuts Rating Ratings to B3 from B2
MICROMET INC: Names Barclay Phillips as Chief Financial Officer
MIDWEST AIRLINES: Workers Rally to Protest Agreement with Republic
MILLENNIUM TRANSIT: Wants to Employ JTW as Bankruptcy Counsel
MYG MANAGEMENT: Voluntary Chapter 11 Case Summary
MORGAN STANLEY: Fitch Puts 'CC/DR4' Rating on $6.3MM Cl. L Certs.
NATIONAL CITY: Has Sufficient Capital CEO Assures Shareholders
NJD LEASING: Case Summary & 20 Largest Unsecured Creditors
NORTHAMPTON GENERATING: Fitch Junks $153MM Revenue Bonds Rating
ON TOP COMMS: Court Okays Sale of Assets to Power Broadcasting
OPEN ENERGY: Needs More Time to File Annual Report
PATIENT SAFETY: Compass Global Discloses 1,600,000 Stake
PERKINS & MARIE: Moody's Cuts Ratings to Caa3 on Likely Default
REDDY ICE: Suspends Quarterly Dividend, Puts Ben Key on Leave
REMOTEMDX INC: Winfried Kill Discloses 21.1% Equity Stake
RIVER ROCK: Moody's Holds 'B2' Corp. Family Rating; Outlook Neg.
SENSUS METERING: Moody's Holds 'B2' CF and POD Ratings
SENSUS METERING: Moody's Revises Debt & Facilities Ratings to Ba2
SIMON WORLDWIDE: Everest Special Discloses 17.02% Equity Stake
SIRIUS XM: Will Refinance $300 Million in Convertible Bonds
SOUTHWEST CHARTER: Can Utilize Arizona Bank's Cash Collateral
STANDARD PACIFIC: MatlinPatterson Gets 27MM Shares in Offering
STEVE & BARRY'S: Discloses Go-Forward Plan for Existing Stores
SUN PRODUCTS: Moody's Lifts Credit Facilities Rtng to Ba3 from B1
SYMPHONY CLO: Moody's Rates $14MM Class D Deferrable Notes 'Ba2'
TRONOX INC: Sued by Government for $280 Mil. in Clean-Up Costs
TRONOX INC: Undecided on NYSE Delisting Notice
UMMBA 1 LLC: Case Summary & 20 Largest Unsecured Creditors
VICTOR INSULATORS: Case Summary & 20 Largest Unsecured Creditors
VINEYARD CHRISTIAN: Case Summary & 20 Largest Unsecured Creditors
VTA OKLAHOMA: Files Chapter 11 Bankruptcy in Oklahoma
WELLMAN INC: Gets More Time to Challenge Committee Probe
WEST END: Case Summary & 18 Largest Unsecured Creditors
WIDEOPENWEST FINANCE: Moody's Affirms Corp. Family Rating at 'B3'
YOUNG BROADCASTING: Mario Gabelli et. al Discloses 9.82% Stake
* Moody's Cuts and Reviews Ratings on 36 Tranches of TruPs
* Fitch Weighs Potential Rtngs Impact on CDOs of LBHI's Bankruptcy
* Fitch Encyclo-Media Report Outlines Key Media Market Trends
* Moody's Cuts Rtngs on 147 Housing Finance Agency Exposed to AIG
* Chapter 11 Cases with Assets & Liabilities Below $1,000,000
*********
505 CLO: Moody's Assigns 'Ba2' Rating on $18MM Class D Jr. Notes
----------------------------------------------------------------
Moody's Investors Service assigned ratings to the Notes issued by
505 CLO I LTD.:
(1) Aaa to the $562,000,000 Class A Senior Notes due 2015;
(2) A2 to the $67,000,000 Class B Deferrable Mezzanine Notes due
2015;
(3) Baa2 to the U.S. $23,000,000 Class C Deferrable Mezzanine
Notes due 2015; and
(4) Ba2 to the U.S. $18,000,000 Class D Deferrable Junior Notes
due 2015.
The Moody's ratings of the Notes address the ultimate cash receipt
of all required interest and principal payments, as provided by
the Notes' governing documents, and are based on the expected loss
posed to Noteholders, relative to the promise of receiving the
present value of such payments.
The ratings reflect the risks due to the diminishment of cash flow
from the underlying portfolio consisting of leveraged loans due to
defaults, the transaction's legal structure and the
characteristics of the underlying assets.
The pool of assets is static with limited disposition of
collateral permitted. CIT Asset Management LLC will manage such
disposition of collateral on behalf of the Issuer.
1540 FULLERTON: Case Summary & 16 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: 1540 Fullerton, LLC
1043 Florida Lane
Elk Grove Village, IL 60007
Bankruptcy Case No.: 08-24329
Chapter 11 Petition Date: September 14, 2008
Court: Northern District of Illinois (Chicago)
Judge: Bruce W. Black
Debtor's Counsel: Gregory K. Stern, Esq.
gstern1@flash.net
Gregory K. Stern, P.C.
53 West Jackson Blvd., Suite 1442
Chicago, IL 60604
Tel: (312) 427-1558
Fax: (312) 427-1289
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/ilnb08-24329.pdf
A-BEST PLUMBING: Case Summary & 18 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: A-Best Plumbing, Inc.
15454 Tradesman Drive
San Antonio, TX 78249
Bankruptcy Case No.: 08-52703
Type of Business: The Debtor provides plumbing services, serving
these homebuilders -- KB HOMES, FIELDSTONE
BUILDERS, PLANTATION HOMES, TOUCHMARK, and PULTE
HOMES OF HOUSTON. The Debtor also carries a
complete inventory of fixtures, supplies and
equipment. See http://www.abestplumbing.com/
Chapter 11 Petition Date: September 16, 2008
Court: Western District of Texas (San Antonio)
Judge: Ronald B. King
Debtor's Counsel: William R. Davis, Jr., Esq.
wrdavis@langleybanack.com
Langley & Banack, Inc
745 E Mulberry Avenue, Suite 900
San Antonio, TX 78212
Tel: (210) 736-6600
Fax: (210) 735-6889
Estimated Assets: $1 million to $10 million
Estimated Debts: $1 million to $10 million
Debtor's list of its 18 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Morrison Supply Co. - Houston Goods $2,577,116
6867 Wynnwood
Houston, TX 77008
Hughes Supply, Inc. Goods & Services $162,462
c/o Jonathan "Trey" Young
Baker & Hostetler, LLP
1000 Louisiana, Suite 2000
Houston, TX 77002
Northside Plumbing Supply, Inc. Goods & Services $150,992
11501 W. Hardy Street
Houston, TX 77076
West Houston Winnelson-SA Goods & Services $141,655
Standard Pacific Homes Warranty Disputes $60,000
Transportation Insurance Company Insurance $55,185
ACT Pipe & Supply - SA Goods & Services $43,352
West Houston Winnelson-Hou Goods & Services $33,352
Southwestern Bell Yellow Goods & Services $30,288
Pages, Inc.
Moore Supply Company Goods & Services $26,391
Ferguson Ent. Goods & Services $23,971
ACT Pipe & Supply - Houston Goods & Services $9,990
Texas Insurance Agency Insurance $5,534
AT Road, Inc. Services $4,432
Gardner Law Firm Attorney Fees $3,412
Texas Workforce Commission Taxes $2,649
Allied Administration Services $413
Internal Revenue Service Taxes $35
ABITIBIBOWATER: NWQ Investment & Lord Abbett Disclose Equity Stake
------------------------------------------------------------------
NWQ Investment Management Company, LLC, disclosed in a regulatory
filing with the Securities and Exchange Commission that it may be
deemed to beneficially own 2,792,842 shares of Abitibibowater
Inc.'s common stock, which represents 4.96% of the outstanding
shares.
In a separate filing, Lord, Abbett & Co. LLC also disclosed that
it may be deemed to beneficially own 3,801,260 shares of
Abitibibowater Inc.'s common stock, which represents 6.75% of the
outstanding shares.
About AbitibiBowater Inc.
Headquartered in Montreal, Canada, AbitibiBowater Inc. --
http://www.abitibibowater.com/-- produces a wide range of
newsprint, commercial printing papers, market pulp and wood
products. It is the eighth largest publicly traded pulp and paper
manufacturer in the world. AbitibiBowater owns or operates 27
pulp and paper facilities and 34 wood products facilities located
in the United States, Canada, the United Kingdom and South Korea.
Marketing its products in more than 90 countries, the company is
also among the world's largest recyclers of old newspapers and
magazines, and has more third-party certified sustainable forest
land than any other company in the world. AbitibiBowater's shares
trade under the stock symbol ABH on both the New York Stock
Exchange and the Toronto Stock Exchange.
AbitibiBowater Inc. still carries Fitch's 'CCC+' Issuer Default
Rating assigned on April 1, 2008. Outlook is Negative.
ACCENTIA BIOPHARMA: Files Amended Registration Statement With SEC
-----------------------------------------------------------------
Accentia Biopharmaceuticals, Inc., delivered to the Securities and
Exchange Commission on Sept. 10, 2008, Amendment No. 1 to its Form
S-3 Registration Statement.
Accentia's prospectus covers a total of up to 6,999,187 shares of
its common stock, par value $.001 per share, which may be offered
from time to time by certain selling shareholders. The 6,999,187
shares being offered consist of common stock underlying securities
issued in the company's June 2008 private placement, including:
-- up to 3,647,254 shares issuable upon the conversion of the
principal and interest of its 8% Original Issue Discount
Secured Convertible Debentures; and
-- up to 3,351,933 shares issuable upon the exercise of its
warrants, issued by the company to selling shareholders.
The company said that on September 9, 2008, the last reported sale
price of its common stock was $0.61 per share.
A full-text copy of the Amended Form S-3 is available for free at:
http://researcharchives.com/t/s?3218
About Accentia BioPharmaceuticals Inc.
Based in Tampa, Florida, Accentia BioPharmaceuticals Inc. (Nasdaq:
ABPI) -- http://www.accentia.net/-- is a vertically integrated
biopharmaceutical company focused on the development and
commercialization of drug candidates that are in late-stage
clinical development and typically are based on active
pharmaceutical ingredients that have been previously approved by
the FDA for other indications. The company's lead product
candidate is SinuNase(TM), a novel application and formulation of
a known therapeutic to treat chronic rhinosinusitis.
Additionally, the company has acquired the majority ownership
interest in Biovest International Inc. and a royalty interest in
Biovest's lead drug candidate, BiovaxID(TM) and any other biologic
products developed by Biovest. The company also has a specialty
pharmaceutical business, which markets products focused on
respiratory disease and an analytical consulting business that
serves customers in the biopharmaceutical industry.
Accentia Biopharmaceuticals Inc.'s consolidated balance sheet at
March 31, 2008, showed $29.0 million in total assets,
$97.0 million in total liabilities, $4.7 million in
non-controlling interest in variable interest entities, and
$111,963 in convertible redeemable preferred stock, resulting in a
$72.8 million total stockholders' deficit.
Going Concern Doubt
Aidman, Piser & Company, P.A., in Tampa, Florida, expressed
substantial doubt about Accential Biopharmaceuticals Inc.'s
ability to continue as a going concern after auditing the
company's consolidated financial statements for the years ended
Sept. 30, 2007, and 2006. The auditing firm reported that the
company has incurred cumulative net losses of approximately
$164.1 million during the three years ended Sept. 30, 2007,
$57.8 million of which was attributable to their 76% owned
subsidiary, and, as of that date, had a working capital deficiency
of approximately $53.1 million.
The company incurred net losses of $33.1 million, used cash from
operations of approximately $16.1 million during the six months
ended March 31, 2008, and has a working capital deficit of
approximately $67.5 million at March 31, 2008. Net losses for
Biovest, whose results are consolidated with the company, were
approximately $7.8 million, during the same six month period.
AMEREX GROUP: Receives Two Default Judgments Totaling $1.7 Million
------------------------------------------------------------------
In separate regulatory filings with the Securities and Exchange
Commission, Amerex Group, Inc., disclosed that:
(a) On August 27, 2008, the company was notified that, on
August 26, 2008, a Default Judgment against the company,
and for the benefit of Professional Offshore Opportunity
Fund, Ltd., was granted by The Honorable Shira A.
Scheindlin, Federal District Court Judge in the United
States District Court for the Southern District of New
York, amounting to $1,577,231.51, with interest after
July 24, 2008 at the rate of $867.12 per day until entry
of the Default Judgment and thereafter at the judgment
rate of interest allowed by law.
The notice to the company was accompanied by a Restraining
Notice, prepared and served upon the company by the
attorneys for the Judgment-Creditor pursuant to Rule 64 of
the Federal Rules of Civil Procedure and Section 5222(b)
of the New York Civil Practice Law and Rules, purporting
to advise the company that it is "forbidden to make or
suffer any sale, assignment, transfer, or interference
with any property in which the company has an interest,
except upon direction of the sheriff or pursuant to an
order of the court or until the judgment is satisfied or
vacated."
A full-text copy of the default judgment is available for
free at http://researcharchives.com/t/s?3219
A full-text copy of the restraining notice is available
for free at http://researcharchives.com/t/s?321a
(b) On September 5, 2008, the company was notified that, on
September 2, 2008, a Judgment by Default Upon Assessment
of Damages was entered against the company, for the
benefit of Clean Harbors Environmental Services, Inc., in
the Superior Court, County of Norfolk, in the Commonwealth
of Massachusetts, amounting to $119,393.75, plus statutory
interest, and costs of the action.
A full-text copy of the default judgment is available for
free at http://researcharchives.com/t/s?321c
About Amerex Group Inc.
Headquartered in New York City, Amerex Group Inc. (OTC BB:
AEXG.OB) -- http://www.amerexgroup.com/-- is a hazardous waste
transportation and logistics firm with capabilities to provide
emergency response to environmental emergencies. The company has
multiple facilities including a hazardous waste treatment, storage
and disposal facility licensed under the Resource Conservation and
Recovery Act Part B and a trucking fleet to transport hazardous
waste throughout the USA. Amerex has administrative headquarters
in Tulsa, Oklahoma.
Going Concern Doubt
Sartain Fischbein & Co., in Tulsa, Oklahoma, expressed substantial
doubt about Amerex Group Inc.'s ability to continue as a going
concern after auditing the company's consolidated financial
statements for the year ended Dec. 31, 2007. The auditing firm
reported that the company incurred a net loss of $7,114,098 during
the year ended Dec. 31, 2007, and, as of that date, had a working
capital deficiency of $3,537,914 and stockholders' deficit of
$7,688,449. Additionally, the company has experienced significant
cash flow difficulties and is currently in default on its note
agreements.
The Troubled Company Reporter reported on May 29, 2008, that
Amerex Group Inc.'s consolidated balance sheet at March 31, 2008,
showed $6,726,105 in total assets, $14,344,006 in total
liabilities, and $735,000 in redeemable common stock, resulting in
a $8,352,901 total stockholders' deficit. At March 31, 2008, the
company's consolidated balance sheet also showed strained
liquidity with $2,797,682 in total current assets available to pay
$6,915,696 in total current liabilities. The company reported a
net loss of $1,193,562, on revenue of $1,607,422, for the first
quarter ended March 31, 2008, compared with a net loss of
$1,314,993, on revenue of $2,147,872, in the same period last
year.
AMEREX GROUP: Meeting With Potential Investors Set for This Month
-----------------------------------------------------------------
Amerex Group Inc. disclosed in a regulatory filing with the
Securities and Exchange Commission that on September 3, 2008, the
company met and, in the next 30 days the company intends to meet,
with potential investors. In connection with these meetings, the
company has presented or intends to present colorful slides to
convince investors that putting their money in Amerex is a good
idea. Amerex will point out that there's a large market
opportunity; midwestern and western markets are currently
underserved; there are plenty of geographic and expansion
opportunities with existing and new clients; its revenue potential
could reach more than $200 million; among others.
A full-text copy of Amerex's presentation materials is available
for free at http://researcharchives.com/t/s?321b
Headquartered in New York City, Amerex Group Inc. (OTC BB:
AEXG.OB) -- http://www.amerexgroup.com/-- is a hazardous waste
transportation and logistics firm with capabilities to provide
emergency response to environmental emergencies. The company has
multiple facilities including a hazardous waste treatment, storage
and disposal facility licensed under the Resource Conservation and
Recovery Act Part B and a trucking fleet to transport hazardous
waste throughout the USA. Amerex has administrative headquarters
in Tulsa, Oklahoma.
Going Concern Doubt
Sartain Fischbein & Co., in Tulsa, Oklahoma, expressed substantial
doubt about Amerex Group Inc.'s ability to continue as a going
concern after auditing the company's consolidated financial
statements for the year ended Dec. 31, 2007. The auditing firm
reported that the company incurred a net loss of $7,114,098 during
the year ended Dec. 31, 2007, and, as of that date, had a working
capital deficiency of $3,537,914 and stockholders' deficit of
$7,688,449. Additionally, the company has experienced significant
cash flow difficulties and is currently in default on its note
agreements.
The Troubled Company Reporter reported on May 29, 2008, that
Amerex Group Inc.'s consolidated balance sheet at March 31, 2008,
showed $6,726,105 in total assets, $14,344,006 in total
liabilities, and $735,000 in redeemable common stock, resulting in
a $8,352,901 total stockholders' deficit. At March 31, 2008, the
company's consolidated balance sheet also showed strained
liquidity with $2,797,682 in total current assets available to pay
$6,915,696 in total current liabilities. The company reported a
net loss of $1,193,562, on revenue of $1,607,422, for the first
quarter ended March 31, 2008, compared with a net loss of
$1,314,993, on revenue of $2,147,872, in the same period last
year.
AMERICAN MORTGAGE: Board Defers Dividend Payment to Preserve Funds
------------------------------------------------------------------
American Mortgage Acceptance Company disclosed that in the
interest of preserving the company's capital, AMAC's board of
trustees has not declared a dividend on the company's 7.25% Series
A Cumulative Convertible Preferred Shares or common shares for the
third quarter of 2008.
Headquartered in New York, American Mortgage Acceptance Company
(AMEX: AMAC) -- http://www.americanmortgageco.com/-- is a real
estate investment trust that specializes in originating and
acquiring mortgage loans and other debt instruments secured by
multifamily and commercial properties throughout the United
States. The company invests in mezzanine, construction and first
mortgage loans, subordinated interests in first mortgage loans,
bridge loans, subordinate commercial mortgage backed securities,
and other real estate assets.
At June 30, 2008, the company's balance sheet showed total assets
of $567,130,000 and total liabilities of $ 579,310, resulting in a
shareholders' deficit of 12,180,000.
APP PHARMACEUTICALS: NASDAQ Removes Listing of Common Stock
-----------------------------------------------------------
NASDAQ Stock Market LLC disclosed in a Form 25-NSE filing with the
Securities and Exchange Commission that it has removed from
listing and registration APP Pharmaceuticals, Inc.'s common stock.
Forms 25-NSE are notifications filed by a national security
exchange to report the removal from listing and registration of
matured, redeemed or retired securities.
Headquartered in Schaumburg, Illinois, APP Pharmaceuticals Inc. is
a hospital-based injectable pharmaceutical company, focusing on
oncology, anti-infective, anesthetic/analgesic and critical care
markets. The company develops, produces and markets a
comprehensive portfolio of over 100 hospital-based injectable
products and operates three manufacturing facilities producing a
comprehensive range of dosage formulations, including
lyophilization.
At March 31, 2008, the company's balance sheet showed total assets
of $1,087,100,000 and total liabilities of $1,160,010,000,
resulting in a total stockholders' deficit of $72,910,000.
The Troubled Company Reporter reported on July 11, 2008, that
Standard & Poor's Ratings Services affirmed APP Pharmaceuticals
Inc.'s 'BB' long-term corporate ratings. The outlook on APP is
stable.
ASARCO LLC: Files First Amended Joint Chapter 11 Plan
-----------------------------------------------------
ASARCO LLC and its debtor-affiliates delivered to the United
States Bankruptcy Court for the Southern District of Texas a
first amended Joint Plan of Reorganization and a Disclosure
Statement explaining the Plan on September 12, 2008.
The Amended Plan maintains the sale of substantially all of the
Debtors' tangible and intangible operating assets to Sterlite
(USA), Inc.
The Amended Plan, however, says the sale does not include, among
other sites, the copper smelter in El Paso, Texas, the Globe,
Colorado facility, the East Helena, Montana facility, the AR
Sacaton site, or the Perth Amboy, New Jersey site. Those assets
will be transferred to Environmental Custodial Trusts under the
Plan unless ASARCO reaches an agreement with the concurrence of
the governments for the sale of those assets prior to the
Effective Date.
The Amended Plan provides for the Subsidiary Debtors other than
Covington Land Company, to be substantively consolidated with and
into ASARCO LLC. Alternatively, the Debtors reserve the right to
consolidate those debtors into ASARCO pursuant to Section
1123(a)(5)(C) of the Bankruptcy Code, in which case, votes on the
Plan will be counted on a Debtor-by-Debtor basis. As a third
alternative, the Debtors reserve the right to proceed with the
Plan as to only ASARCO, Covington, ASARCO Master, Inc., and the
Asbestos Subsidiary Debtors, with the Other Subsidiary Debtors
hereafter by filing one or more separate plans under chapter 11
of the Bankruptcy Code or converting their cases to liquidation
cases under chapter 7 of the Bankruptcy Code.
The Amended Plan also incorporates the global resolution of the
Debtors' asbestos and environmental liabilities. ASARCO LLC
entered into separate agreements with the U.S. Government and
various states, on the one hand, and the Official Committee of
Unsecured Creditors for the Asbestos Debtors and the Future
Claims Representative, on the other hand.
A full-text copy of the Amended Plan's blacklined version is
available for free at http://ResearchArchives.com/t/s?3222
A full-text copy of the blacklined version of the Disclosure
Statement explaining the First Amended Plan is available for free
at http://ResearchArchives.com/t/s?3223
Asbestos Settlement Agreement
The Asbestos Settlement Agreement provides for the establishment
of an Asbestos Trust; the channeling of the Unsecured Asbestos
Personal Injury Claims and Demands to the Asbestos Trust,
pursuant to Section 524(g); the Debtors' contribution of the
Asbestos Trust Assets. The Asbestos Settlement also provides for
the release by the Asbestos Subsidiary Committee and the FCR, on
behalf of each of the Asbestos Debtors, of the ASARCO Protected
Parties from:
(i) all claims and causes of action that the Asbestos Debtors
may now have or have in the future based on Alter Ego
Theories or similar theories seeking to impose liability
on any ASARCO Protected Party for asbestos PI Claims
asserted against the Asbestos Subsidiary Debtors; and
(ii) all claims relating to intercompany transactions or
dealings between ASARCO and the Asbestos Debtors relating
to Unsecured Asbestos Personal Injury Claims and Demands.
A list of the ASARCO Protected Parties is available for free at
http://bankrupt.com/misc/exhibit01.pdf
The Asbestos Settlement also provides for the dismissal with
prejudice of all claims in Adversary Proceeding No. 05-02048 and
the contested matter seeking to resolve the issues of ASARCO
LLC's liability for the Derivative Asbestos Claims and the
aggregate amount of any liability.
Jack F. Lapinsky, ASARCO LLC's chief executive officer, related
that the Asbestos Subsidiary Committee has agreed to recommend
that holders of Unsecured Asbestos Personal Injury Claims vote in
favor of the Plan and specifically in favor of the creation of
the Asbestos Trust and the entry of the Permanent Channeling
Injunction; and agreed, together with the FCR, to support
confirmation of the Plan.
The Debtors will transfer to the Asbestos Trust:
-- up to $750,000,000 in Cash, referred to in the Plan as the
Asbestos Trust's share of the Class 5 and Class 9 Primary
Payment;
-- up to an additional $102,000,000 that may be available
after paying other creditors in accordance with the Plan,
referred to in the Plan as the Asbestos Trust's share of
the Class 5 and Class 9 as Supplemental Distribution;
-- the Asbestos Insurance Recoveries, including all of the
Debtors' rights to avoid any liens or assignments asserted
by any claimant on any portion of the Asbestos Insurance
Recoveries;
-- the Asbestos Trust's Priority Litigation Proceeds, which is
the payment of up to $100,000,000 of the Litigation
Proceeds after Class 3, 4, 6, 7 and 8 Litigation Proceeds
are paid, plus 50% of the Litigation Trust Interests to be
distributed by the Litigation Trustees;
-- assignment of all of the Debtors' rights, title and
interest in the Debtors' Privileges associated with the
Asbestos PI Claims and other recoveries; and
-- 100% of the interests in reorganized Covington.
A list of the Asbestos Insurance Recoveries is available for free
at http://bankrupt.com/misc/exhibit15.pdf
A full-text copy of the Asbestos Trust Agreement is available for
free at http://bankrupt.com/misc/exhibit05.pdf
A full-text copy of the Global Asbestos Settlement is available
for free at http://bankrupt.com/misc/exhibit06.pdf
Environmental Claims Settlement
The Amended Plan also incorporates three residual environmental
settlements of environmental claims filed against the Debtors.
The Amended Plan provides that:
* environmental Claims relating to the Previously Settled
Environmental Sites as to which settlements were reached
prior to the scheduled estimation hearings, will be
classified as Class 7 Previously Settled Environmental
Claims, with Allowed Unsecured Claims totaling $529 million;
* environmental Claims relating to the vast majority of
remaining state and federal environmental Claims, including
two sites listed in the First Case Management Order that
were neither settled nor estimated, will be classified as
Class 8 Miscellaneous Federal and State Environmental
Claims, with Allowed Unsecured Claims totaling $103 million;
and
* environmental Claims of the United States and the State of
Washington relating to the Residual Environmental Settlement
Sites will be classified as Class 9 Residual Environmental
Claims, with Allowed Unsecured Claims that will be satisfied
by a distribution of up to $750 million, supplemental
distributions of $102 million, and Litigation Trust
Interests.
The Residual Environmental Settlement Sites consist of the Coeur
d'Alene, Idaho site, the Omaha, Nebraska lead site, and the
Tacoma, Washington smelter plume site. Under the global
settlement, the combined distributions that the Government and
the State of Washington are expected to receive for these sites
total at least $750 million, not including their right to 50% of
the Litigation Trust Interests.
These claimants are granted allowed general unsecured claims
against ASARCO LLC in settlement of their environmental claims:
Claimant Site Claim Amount
-------- ---- ------------
Government Omaha Site $187,500,000
State of Washington Tacoma Site 80,370,000
Government Coeur d'Alene Site 41,464,000
EPA Tacoma Site 27,000,000
Government IBWC Site 19,000,000
EPA Jack Waite Site 11,300,000
EPA Richardson Flat Site 7,400,000
EPA Circle Smelting Site 6,052,390
Forest Service Monte Cristo Site 5,500,000
State of Washington Monte Cristo Site 5,500,000
State of Washington Van Stone Site 3,000,000
State of Oklahoma Kusa Site 1,780,000
EPA Vasquez Boulevard 1,500,000
EPA Terrible Mine Site 1,400,000
State of New Jersey South Plainfield Site 1,000,000
State of Arizona Helvetia Site 880,000
EPA Stephenson/Bennett Site 550,000
Forest Service Combination Mine Site 542,000
Forest Service Flux Mine Site 487,000
State of Colorado Bonanza Site 400,000
State of Washington Golden King Site 400,000
State of Washington Chollet Mine 300,000
EPA Coy Site 200,000
Forest Service Black Pine Site 190,000
State of Oklahoma Henryetta Site 109,000
State of Colorado Summitville Site 86,000
State of Colorado Permit & emissions fees 2,800
The Successor Coeur d'Alene Custodial and Work trust will be paid
$373,179,000 on the Effective Date of the Plan. The Successor
Coeur d'Alene Custodial and Work trust will create two
subaccounts:
(1) one general work account funded initially with
$344,250,000, which will be used to perform work at the
Site; and
(2) a specialized work account funded initially with
$28,929,000, which will be used to perform work selected
by EPA as part of its comprehensive remedy at the Site.
The Government, on behalf of the Department of the Interior and
the USDA/FS , will have a $67,500,000 to be deposited into the
DOI Natural Resource Damages Account. The Government will also
receive the Supplemental Distribution for the Site to the extent
provided in the Plan.
In settlement of the State of Nebraska's claim in connection with
the Omaha Site, the State will not have an allowed general
unsecured nor receive any distribution from the Debtors. But, in
the event that any proceeds from the Debtors remain in EPA's Site
specific account when the clean-up is complete, EPA will pay to
the State 3.5% of the remaining proceeds.
The allowed environmental claims will not subordinated to other
general unsecured claims. Although the claims granted to the
Government are described as general unsecured claims, the
description is without prejudice to the Government's alleged
secured right to set-off against ASARCO's claim for tax refunds.
A full-text copy of the Federal/State Environmental Claims
Settlement is available for free at:
http://bankrupt.com/misc/exhibit09.pdf
A full-text copy of the Miscellaneous Environmental Claims
Settlement is available for free at:
http://bankrupt.com/misc/exhibit10.pdf
SPT Settlement
Under the Amended Plan, Seaboard Surety Company and St. Paul Fire
& Marine Insurance Company agree to pay $1,300,000 to ASARCO in
satisfaction of ASARCO's reclamation obligations covered by the
Mission Bonds. SPT is granted an allowed administrative expense
claim against ASARCO for $501,163 with respect to SPT's payment
on the TCEQ bond.
SPT will also be granted a $2,310,392 allowed general unsecured
claim against ASARCO, which reflects SPT's initial ORIC Bond
payment less the Impress Fund plus past due premiums owed by
ASARCO related to the ORIC Bond.
In accordance with the SPT Settlement Agreement, and except as
otherwise provided in Article 9.10 of the Plan in regards to SPT
Bond Nos. 394729 and 403998, ASARCO's obligations under and
relating to the Flow Through Bonds and the SPT Indemnity
Agreement as it relates to the Flow Through Bonds will not be
discharged by Confirmation of the Plan.
A full-text copy of the SPT Release and Agreement is available
for free at http://bankrupt.com/misc/exhibit13.pdf
Mitsui Consent and Tag-Along Rights
Pursuant to the Plan Sponsor Purchase and Sale Agreement, the
Silver Bell Interests owned by any of the Debtors are included
among the Sold Assets. Under the terms of the Silver Bell LLC
Agreement, ARSB's sale, assignment, and transfer of its Silver
Bell Interests is subject to the consent of the other members of
Silver Bell. However, the Plan Sponsor and the Debtors agreed
that if the consent of the other members of Silver Bell is not
obtained prior to Closing, then:
(a) the Silver Bell Interests and the Debtors' right in and to
the Silver Bell LLC Agreement will each be an Excluded
Asset and the shares of capital stock of ARSB will be a
Purchased Asset; and
(b) references in the Plan Sponsor PSA to Silver Bell
Interests will be deemed to refer to the capital stock of
ARSB.
In addition, as a result of the transactions contemplated by the
Plan Sponsor PSA, Mitsui, which owns 25% of the outstanding
limited liability company interests of Silver Bell, has asserted
that certain provisions of the Silver Bell LLC Agreement or, in
the event of a sale of the capital stock of ARSB, certain
provisions of a letter agreement dated February 5, 1996,
supplementing the Silver Bell LLC Agreement, give Mitsui the
right to require the Plan Sponsor to acquire from Mitsui all or a
portion of Mitsui's membership interest in Silver Bell, as Mitsui
may elect in its absolute discretion.
Mitsui has further asserted that the February 1996 letter
agreement is not an executory contract and the Debtors may not
reject it. Mr. Lapinsky said Mitsui is currently reviewing the
Plan and Disclosure Statement and its rights and remedies under
the Silver Bell LLC Agreement and the supplemental letter
agreement. The Debtors, he added, have not taken a formal
position with respect to the rights asserted by Mitsui and
specifically reserve all rights and remedies against Mitsui and
its affiliates, including all rights and remedies that any of
them may have to object to any request of Mitsui to have all or a
portion of its membership interest purchased by the Plan Sponsor.
Postpetition Interests
Postpetition Interest will be paid at the federal judgment rate
of 3.84%. Interest will be compounded annually. Pursuant to the
Plan, a Claimant is entitled to Postpetition Interest on an
Allowed Claim or any unpaid portion thereof, from August 10, 2005
to and including five Business Days immediately prior to the date
a distribution is made, until those amounts are fully satisfied.
After the Effective Date, interest will accrue on any unpaid
portion of an Allowed Claim and on any unpaid Postpetition
Interest at the same rate and to the same extent.
Mitsui asserts that it is entitled to a 7.5% contractual rate of
interest on its asserted Secured Claim. The Debtors and Mitsui
specifically reserve all rights and remedies that any of them may
have concerning the appropriate rate of interest on Mitsui's
asserted Claim.
Risks Relating to the Sale Process
The Debtors currently expect that the sale of the Sold Assets
will culminate in a sale to the Plan Sponsor or an alternative
purchaser with a higher or better offer. Mr. Lapinsky said the
Debtors will incur considerable costs and expenses in connection
with the sale process and may ultimately be obligated to pay the
Break-Up Fee. The Plan Sponsor may terminate the Plan Sponsor
PSA if these deadlines are not met:
* The Bankruptcy Court must enter an order approving the
Disclosure Statement by October 15, 2008, which date may be
extended until October 30, 2008, if the Plan Sponsor
consents;
* The Confirmation Order must be entered by December 15, 2008,
which date may be extended until January 17, 2009, if the
Plan Sponsor consents; and
* The Closing must occur by December 31, 2008, which date may
be extended until January 28, 2009 in certain circumstances.
Plan Exhibits
The Debtors also submitted Plan Exhibits, including:
* a list of prepetition contacts and leases to be assumed by
ASARCO LLC and assigned to the Plan Sponsor, available for
free at http://bankrupt.com/misc/exhibit02.pdf
* a list of prepetition contracts and leases to vest in
reorganized ASARCO or reorganized Covington, available for
free at http://bankrupt.com/misc/exhibit03.pdf
* a full-text copy of the Plan Administration Agreement,
available for free at http://bankrupt.com/misc/exhibit04.pdf
* a schedule of Custodial Trust Properties and their funding,
available for free at http://bankrupt.com/misc/exhibit07.pdf
* a schedule of Previously Settled Environmental Claims,
available for free at http://bankrupt.com/misc/exhibit08.pdf
* a list of litigation to vest in reorganized ASARCO,
available for free at http://bankrupt.com/misc/exhibit11.pdf
* a schedule of Secured Tax Claims, available for free at
http://bankrupt.com/misc/exhibit12.pdf
* the Debtors' selected historical financial information, a
copy of which is available for free at:
http://bankrupt.com/misc/exhibit14.pdf
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. Sander L.
Esserman, Esq., at Stutzman, Bromberg, Esserman & Plifka, APC, in
Dallas, Texas, represents the Official Committee of Unsecured
Creditors for the Asbestos Debtors. Former judge Robert C. Pate
has been appointed as the future claims representative. 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).
Six of ASARCO's affiliates, Wyoming Mining & Milling Co., Alta
Mining & Development Co., Tulipan Co., Inc., Blackhawk Mining &
Development Co., Ltd., Peru Mining Exploration & Development Co.,
and Green Hill Cleveland Mining Co. filed for Chapter 11
protection on April 21, 2008. (Bank. S.D. Tex. Case No. 08-20197
to 08-20202).
The Debtors submitted to the Court a joint plan of reorganization
and disclosure statement on July 31, 2008. The plan incorporates
the sale of substantially all of the Debtors' assets to Sterlite
Industries, Ltd., for $2,600,000,000.
Americas Mining Corporation, an affiliate of Grupo Mexico SAB de
CV, submitted a reorganization plan to retain its equity interest
in ASARCO LLC, by offering full payment to ASARCO's creditors in
connection with ASARCO's Chapter 11 case. AMC would provide up to
$2.7 billion in cash as well as a $440 million guarantee to assure
payment of all allowed creditor claims, including payment of
liabilities relating to asbestos and environmental claims. AMC's
plan is premised on the estimation of the approximate allowed
amount of the claims against ASARCO.
Asarco Inc. and AMC are represented by Luc A. Despins, Esq., at
Milbank, Tweed, Hadley & McCloy LLP, in New York.
(ASARCO Bankruptcy News Issue No. 84; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000).
ASARCO LLC: Asbestos Panel Wants Parent to Deposit $2.7 Billion
---------------------------------------------------------------
The Official Committee of Asbestos Claimants asks the United
States Bankruptcy Court for the Southern District of Texas to
require Asarco Incorporated and Americas Mining Corporation to
deposit the $2,700,000,000 funds necessary to consummate the Plan
of Reorganization they filed for ASARCO LLC, Southern Peru
Holdings, LLC, and AR Sacaton, LLC.
The Parent's Plan is premised almost completely on a proposed
$2.7 billion contribution by the Parent. If this contribution is
not made, the Plan collapses and the Debtors must begin the plan
process anew, Sander L. Esserman, Esq., at Stutzman, Bromberg,
Esserman & Plifka, APC, in Dallas, Texas, proposed counsel for
the Asbestos Committee asserts.
Mr. Esserman points out that the Parent's Plan and the Parent's
conduct in the Debtors' Chapter 11 cases raise serious concerns
regarding whether the Parent intends to fund the plan at all or
is simply seeking to delay and derail confirmation of the
Debtors' competing plan of reorganization. Regardless of whether
the Parent's Plan has been submitted in good faith or for
nefarious purposes like delay, the concerns regarding whether the
Parent's Plan will be adequately funded on the unlikely
circumstance of its confirmation can only be addressed by
requiring the Parent to place its money in the hands of the
Court, he asserts.
Although the Parent has repeatedly made bold assertions in open
court that it will fund its proposed plan with a $2.7 billion
contribution, the plan itself says otherwise, Mr. Esserman
complains. The Parent's Plan does not impose an obligation on
the Parent to make the financial contributions it has continued
to use as a "proverbial carrot" in the Debtors' bankruptcy cases,
he notes. Instead, the Parent's Plan allows the Parent to avoid
funding at any time and essentially for any reason.
Mr. Esserman further asserts that even if the Parent could be
trusted to not walk away from its plan -- which is not at all
certain given the Parent's conduct thus far in the Debtors'
Chapter 11 cases -- the Parent's Plan nonetheless requires an
estimation of asbestos claims that serves no other purpose than
to further delay any Parent obligation to pay the Debtors'
asbestos personal injury creditors.
The Court, at the very least, should require the Parent to place
its $2.7 billion plan contribution into the Court's registry, the
Asbestos Committee maintains. Only by the requirement of a plan
deposit may the Court insure that the Court itself is not drawn
into a waste of time and effort by parties who are not
meaningfully committed to seeing their plan consummated, Mr.
Esserman asserts.
The Asbestos Committee, according to Bloomberg News, has "serious
concerns regarding whether the parent intends to fund the plan at
all or is simply seeking to delay and derail confirmation of
Asarco's competing plan."
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. Sander L.
Esserman, Esq., at Stutzman, Bromberg, Esserman & Plifka, APC, in
Dallas, Texas, represents the Official Committee of Unsecured
Creditors for the Asbestos Debtors. Former judge Robert C. Pate
has been appointed as the future claims representative. 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).
Six of ASARCO's affiliates, Wyoming Mining & Milling Co., Alta
Mining & Development Co., Tulipan Co., Inc., Blackhawk Mining &
Development Co., Ltd., Peru Mining Exploration & Development Co.,
and Green Hill Cleveland Mining Co. filed for Chapter 11
protection on April 21, 2008. (Bank. S.D. Tex. Case No. 08-20197
to 08-20202).
The Debtors submitted to the Court a joint plan of reorganization
and disclosure statement on July 31, 2008. The plan incorporates
the sale of substantially all of the Debtors' assets to Sterlite
Industries, Ltd., for $2,600,000,000.
Americas Mining Corporation, an affiliate of Grupo Mexico SAB de
CV, submitted a reorganization plan to retain its equity interest
in ASARCO LLC, by offering full payment to ASARCO's creditors in
connection with ASARCO's Chapter 11 case. AMC would provide up to
$2.7 billion in cash as well as a $440 million guarantee to assure
payment of all allowed creditor claims, including payment of
liabilities relating to asbestos and environmental claims. AMC's
plan is premised on the estimation of the approximate allowed
amount of the claims against ASARCO.
Asarco Inc. and AMC are represented by Luc A. Despins, Esq., at
Milbank, Tweed, Hadley & McCloy LLP, in New York.
(ASARCO Bankruptcy News Issue No. 84; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000).
ASARCO LLC: Govt., Creditors Find Disclosure Statement Inadequate
-----------------------------------------------------------------
The U.S. Government; the Official Committee of Asbestos
Claimants, joined by Robert C. Pate, Future Claims Representative;
environmental claimants; insurance companies; and individuals
complained that the Disclosure Statement explaining the Plan of
Reorganization filed by Asarco Incorporated and Americas Mining
for ASARCO LLC, Southern Copper Holdings, LLC, and AR Sacaton LLC,
does not provide "adequate information."
(a) U.S. Government
The United States Government, on behalf of the U.S. Environmental
Protection Agency, the United States Department of the Interior,
and the United States Department of Agriculture, asks the United
States Bankruptcy Court for the Southern District of Texas to deny
approval of the Parent's Disclosure Statement unless the Parent
amend its Disclosure Statement so that environmental and other
creditors can make an informed judgment about their treatment
under the Parent's Plan.
Ronald J. Tenpas, Esq., assistant attorney general for the
Environmental and natural Resources Division, tells the Court
that the Parent and AMC have squandered the opportunity given to
them by the Court to file a proposed Plan and Disclosure
Statement that would address in a meaningful way the bulk of
Debtors' massive unsettled environmental liabilities to protect
health and safety.
Instead, Mr. Tenpas says, the Parent has filed a Litigation plan
that does not propose any specific amount of payment of these
liabilities. A litigation Plan, which does not not propose a
real resolution of the largest claims in the bankruptcy case,
does not justify the extensive time commitment of the Court and
parties that would be necessary for a two-Plan process, Mr.
Tenpas declares.
(b) Asbestos Committee
The Asbestos Committee asks the Court to disapprove the Parent's
Disclosure Statement, arguing that the Parent's Plan provides no
reorganization for the many ASARCO Debtors needing it, and leaves
the Subsidiary Debtors and their creditors in a reorganizational
limbo never envisioned by the Bankruptcy Code.
The Asbestos Committee's proposed counsel, Jacob L. Newton, Esq.,
at Stutzman, Bromberg, Esserman & Plifka, APC, in Dallas, Texas,
tells the Court that because of the activities of Americas Mining
Corporation, the Debtors' bankruptcy cases has lasted longer than
it should have, much to the detriment of injured asbestos
claimants.
AMC and its parent Grupo Mexico, S.A.B. de C.V., may have
directly cause the Debtors' bankruptcy through their improper
prepetition stripping of the Debtors' assets, their prepetition
saddling of the Debtors with crippling amounts of debt, and the
hostile labor relationship the created during AMC's and Grupo
Mexico's reign, which directly led to a crippling labor strike,
Mr. Newton asserts.
(c) Environmental Claimants
The Texas Commission on Environmental Quality complains that the
Parent's Disclosure Statement does not provide adequate
information about the Environmental Liquidation Trust, which the
Parent proposes to establish and fund with certain designated
properties, including, among others, the El Paso Smelter and the
Amarillo Zinc Refinery, and $10 million to facilitate, oversee
and fund environmental clean up efforts of the designated
properties. The TCEQ also complains that the Parent's Disclosure
Statement does not contain any contingency for dealing with the
Federated Metals State Superfund Site.
The TCEQ further objects to the Parent's Disclosure Statement to
the extent the Parent is seeking a determination that
environmental claims are not impaired. The TCEQ asserts that
environment regulatory authorities' claims are impaired pursuant
to Section 1124 of the Bankruptcy Code.
The Department of Public Health and Environment, Hazardous
Materials and Waste Management Division of the State of Colorado
joins in the objection of the TCEQ insofar as the Objection
pertains to the inadequacies of the Parent's disclosures
regarding the proposed Environmental Liquidation Trust.
The City of El Paso, Texas, complains that the Debtors'
Disclosure Statement is deficient in some key informational areas
relating to the El Paso Smelter and the El Paso Metals Site. The
City tells the Court that it has an important interest in seeing
that the sites are timely and properly cleaned up.
Union Pacific Railroad Company asks the Court to deny approval of
the Parent's Disclosure Statement, arguing that it does not
comply with Section 1125 of the Bankruptcy Code because:
(i)the Disclosure Statement fails to provide accurate and
adequate information that the parent Plan payments to
creditors could be less than 100%;
(ii) the Disclosure Statement fails to inform the creditors
that the Parent Plan impairs claims and does not allow
them to vote;
(iii) the Disclosure Statement fails to inform that the Parent
Plan releases of non-Debtors will prevent confirmation if
creditors object.
PA-PDC Perth Amboy Urban Renewal, LLC, asks the Court to deny
approval of the Parent's Disclosure Statement in its current form
because it (i) does not address the Parent's plan's treatment of
or impact upon PA-PDC's Designated Redeveloper rights and
obligations; (ii) does not disclose how and when and where Asarco
Inc.'s liability for environmental contamination of the property
will be ascertained; (iii) does not disclosure the funding amount
that the Parent anticipates; and (iv) does not disclose how and
when the liability will be paid.
Montana Resources, Inc., says it supports a resolution of the
Debtors' bankruptcy cases that pays creditors in full or
reinstates them. However, MRI complains that the Parent's
Disclosure Statement fails to address several issues of
importance to creditors, including the explain the the Parent's
treatment of:
* Debtors who are not being reorganized, and the claims of
their creditors;
* the pending fraudulent transfer claim against MRI by ASARCO
and ASARCO Master, Inc.;
* MRI's pending environmental reclamation claim against ASARCO
and ASARCO Master; and
* the U.S. District Court of the Southern District of Texas'
recent finding that Americas Mining Corporation and Grupo
Mexico S.A.B. de C.V. perpetrated an actual fraudulent
transfer of Debtors' shares of Southern Peru Copper
Corporation with the intent to hinder or delay ASARCO's
creditors, and the damages that may result.
(d) Insurance Companies
Fireman's Fund Insurance Company complains that the Parent's
Disclosure Statement fails to provide adequate information
regarding material aspects of the Plan that affect FFIC and fails
to disclose material risks associated with the Parent's Plan.
American Home Assurance Company and Lexington Insurance Company
jointly complain that the Debtors' Disclosure Statement fails to
meet the legally accepted definition of containing "adequate
information" due to, among others, (i) the omission of any
exhibit setting forth Section 524(g) trust or the trust
distribution procedures; and (ii) the lack of adequate
information concerning which executory contracts are to be
assumed or rejected.
Mt. McKinley Insurance Company and Everest Reinsurance Company,
object to the Parent's Disclosure Statement because it does not
contain exhibits that are material for MMIC's consideration of
the Parent's Plan.
Century Indemnity Company complains that the Parent has not
provided Century with copies of certain Plan-related documents,
which define the procedures for liquidating and paying Asbestos
Claims.
(e) Miguel Hernandez
Miguel Hernandez, a former ASARCO LLC employee, asserted that the
Disclosure Statement does not contain "adequate information"
because it does not state whether it is Debtors' intention that
the Plan discharge or relieve the Debtors from complying with any
Equitable Relief that may be entered in the Adversary Proceeding
initiated by Mr. Hernandez, including injunctive relief and
reinstatement of Mr. Hernandez, should that relief be awarded by
the Court.
(f) Ron and Linda Deen
Ron and Linda Deen, occupants of the Debtors' property in Pinal
County, Arizona, asks the Court to disapprove the Parent's
Disclosure Statement because it does not make clear how its Plan
will treat the Deens' adverse possession ownership claim to the
property.
(g) ASM Capital and Contrarian Funds
ASM Capital, L.P., and Contrarian Funds, L.L.C., holders of about
$8,000,000 of trade claims against the Debtors, ask the Court to
deny approval of the Parent's Disclosure Statement because the
Parent's Plan label the Trade Claimholders as unimpaired,
notwithstanding that the Plan does not provide the holders of
Trade Claims with the postpetition interest on their claims to
which they are legally and contractually entitled.
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. Sander L.
Esserman, Esq., at Stutzman, Bromberg, Esserman & Plifka, APC, in
Dallas, Texas, represents the Official Committee of Unsecured
Creditors for the Asbestos Debtors. Former judge Robert C. Pate
has been appointed as the future claims representative. 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).
Six of ASARCO's affiliates, Wyoming Mining & Milling Co., Alta
Mining & Development Co., Tulipan Co., Inc., Blackhawk Mining &
Development Co., Ltd., Peru Mining Exploration & Development Co.,
and Green Hill Cleveland Mining Co. filed for Chapter 11
protection on April 21, 2008. (Bank. S.D. Tex. Case No. 08-20197
to 08-20202).
The Debtors submitted to the Court a joint plan of reorganization
and disclosure statement on July 31, 2008. The plan incorporates
the sale of substantially all of the Debtors' assets to Sterlite
Industries, Ltd., for $2,600,000,000.
Americas Mining Corporation, an affiliate of Grupo Mexico SAB de
CV, submitted a reorganization plan to retain its equity interest
in ASARCO LLC, by offering full payment to ASARCO's creditors in
connection with ASARCO's Chapter 11 case. AMC would provide up to
$2.7 billion in cash as well as a $440 million guarantee to assure
payment of all allowed creditor claims, including payment of
liabilities relating to asbestos and environmental claims. AMC's
plan is premised on the estimation of the approximate allowed
amount of the claims against ASARCO.
Asarco Inc. and AMC are represented by Luc A. Despins, Esq., at
Milbank, Tweed, Hadley & McCloy LLP, in New York.
(ASARCO Bankruptcy News Issue No. 84; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000).
ASARCO LLC: Liquidation Analysis Under Amended Plan
---------------------------------------------------
ASARCO LLC and its debtor affiliates prepared a liquidation
analysis of their assets in the context of a Chapter 7
liquidation to evaluate whether claimants under their First
Amended Joint Plan of Reorganization receives distribution that
is not less than the value those holders may received if the
Debtors were liquidated under Chapter 7.
The Liquidation Analysis was prepared by AlixPartners, LLP. The
analysis used a number of estimates that are inherently subject
to significant economic, competitive, and operational
uncertainties and contingencies beyond the Debtors' control.
ASARCO LLC, et al.
Liquidation Analysis
(In $Millions)
High Low
---------------- ---------------
Book Liq. Liq. Liq. Liq.
Value Factor Value Factor Value
----- ------ ----- ------ -----
Assets
Cash & Marketable Securities $1,160.7 120.6% $1,399.8 120.6%$1,399.8
Non-Debtor Intercompany &
Intersegment Receivables 67.3 68.2% 45.9 63.9% 43.0
Trade Accounts Receivable 155.3 83.9% 130.3 60.8% 94.5
Other Receivables 12.2 96.7% 11.8 91.0% 11.1
Inventory and Supplies 308.9 79.4% 245.2 72.1% 222.8
Prepaid Expenses 20.5 77.6% 15.9 74.6% 15.3
Deferred Income Taxes 41.0 151.0% 61.9 136.6% 56.0
Investments 22.8 5.7% 1.3 4.4% 1.0
Property, Plant & Equip. 551.5 210.0% 1,157.9 142.5% 785.9
Other Misc. Assets 39.6 28.8% 11.4 23.5% 9.3
-------- --------
Est. Assets Available
for Distribution 3,083.4 2,638.7
Chapter 7 Admin. Claims
Trustee Fees 50.4 37.2
Professional Fees 11.8 14.8
Wind Down Costs 3.7 4.3
Environmental Claims 261.3 274.0
-------- --------
Subtotal Claims 327.2 330.3
Recovery Percentage 100% 100%
-------- --------
Estimated Assets Available
for Further Distribution 2,754.2 2,308.4
Superpriority Secured Claims
DIP Facility N/A N/A
Accrued DIP Interest N/A N/A
-------- --------
Subtotal Claims - -
Recovery Percentage N/A N/A
-------- --------
Estimated Assets Available
for Further Distribution 2,754.2 2,308.4
Secured Claims
Chapter 11 Secured Claims 28.3 33.3
-------- --------
Subtotal Claims 28.3 33.3
Recovery Percentage 100% 100%
-------- --------
Estimated Assets Available
for Further Distribution 2,725.9 2,275.1
Chapter 11 Admin. Claims
Postpetition Tax Claims 511.8 511.8
Postpetition Professional Fees 34.8 34.8
Postpetition Tolling Claims 42.8 42.8
Key Employee Retention Plan Claims 1.2 1.2
Other Admin. Claims 73.3 73.3
Postpetition Wage Claims 16.6 16.6
Postpetition Accounts Payable Claims 113.2 113.2
-------- --------
Subtotal Claims 793.7 793.7
Recovery Percentage 100% 100%
-------- --------
Estimated Assets Available
for Further Distribution 1,932.2 1,481.4
Tax and Priority Claims
Tax and Priority Claims 5.4 5.4
-------- --------
Subtotal Claims 5.4 5.4
Recovery Percentage 100% 100%
-------- --------
Estimated Assets Available
for Further Distribution 1,926.8 1,476.0
General Unsecured Claims
Trade and Gen. Unsecured Claims 75.0 79.3
Bondholder Claims 447.7 553.1
Unsecured Asbestos PI Claims 750.0 750.0
Toxic Tort Claims 58.6 68.6
Previously Settled Env. Claims 512.5 512.5
Misc. Federal/State Env. Claims 103.0 103.0
PRP-Only Claims 28.5 452.5
Residual Env. Claims 750.0 750.0
Other Misc. Env. Claims 8.3 8.3
Late Filed Claims 9.7 25.6
Site Reclamation Claims 44.5 100.0
Underfunded Pension Obligations 29.7 127.7
Other Pension Claims 13.8 14.1
Deferred Income Benefit Claims 2.3 2.3
Workers Compensation Claims 21.0 21.0
Retiree Medical Obligations 239.0 239.0
Surety Claims 5.0 48.0
-------- --------
Subtotal Claims 3,098.6 3,855.0
Percentage of Claim Recovered 62.2% 38.3%
-------- --------
Estimated Assets Available
for Further Distribution - -
Shareholder Interests
Interests of ASARCO LLC - -
Interests of Asbestos Debtors - -
Interests of Other Subsidiary Debtors - -
-------- --------
Subtotal Interests - -
Recovery Percentage 0% 0%
A full-text copy of the Liquidation Analysis is available for
free at http://bankrupt.com/misc/liquidationanalysis.pdf
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. Sander L.
Esserman, Esq., at Stutzman, Bromberg, Esserman & Plifka, APC, in
Dallas, Texas, represents the Official Committee of Unsecured
Creditors for the Asbestos Debtors. Former judge Robert C. Pate
has been appointed as the future claims representative. 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).
Six of ASARCO's affiliates, Wyoming Mining & Milling Co., Alta
Mining & Development Co., Tulipan Co., Inc., Blackhawk Mining &
Development Co., Ltd., Peru Mining Exploration & Development Co.,
and Green Hill Cleveland Mining Co. filed for Chapter 11
protection on April 21, 2008. (Bank. S.D. Tex. Case No. 08-20197
to 08-20202).
The Debtors submitted to the Court a joint plan of reorganization
and disclosure statement on July 31, 2008. The plan incorporates
the sale of substantially all of the Debtors' assets to Sterlite
Industries, Ltd., for $2,600,000,000.
Americas Mining Corporation, an affiliate of Grupo Mexico SAB de
CV, submitted a reorganization plan to retain its equity interest
in ASARCO LLC, by offering full payment to ASARCO's creditors in
connection with ASARCO's Chapter 11 case. AMC would provide up to
$2.7 billion in cash as well as a $440 million guarantee to assure
payment of all allowed creditor claims, including payment of
liabilities relating to asbestos and environmental claims. AMC's
plan is premised on the estimation of the approximate allowed
amount of the claims against ASARCO.
Asarco Inc. and AMC are represented by Luc A. Despins, Esq., at
Milbank, Tweed, Hadley & McCloy LLP, in New York.
(ASARCO Bankruptcy News Issue No. 84; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000).
ASARCO LLC: Claims Treatment & Classification Under Amended Plan
----------------------------------------------------------------
The Amended Joint Chapter 11 Plan of Reorganization filed
on September 12, 2008, by Asarco LLC and its debtor-affiliates
contemplates the sale of substantially all of their assets to
Sterlite (USA), Inc.
Majority of the proceeds from that sale, together with
Distributable Cash and Subsequent Distributions, will be paid to
holders of Allowed Claims in accordance with the priorities
established by the Bankruptcy Code, as follows:
Class Description Treatment & Recovery
----- ----------- --------------------
N/A Administrative Administrative Claims will receive
Claims the Allowed Amount of the holders'
Claim, in cash on the Effective Date.
Estimated Range of Claims:
$937,000,000 to $950,000,000
Estimated Recovery: 100%
N/A Priority Tax Priority Tax Claims will be paid in
Claims full on the Effective Date.
Estimated Range of Claims:
$5,000,000 to $6,000,000
Estimated Recovery: 100%
1 Priority Claims Priority Claims will be paid in full
on the Effective Date or, if later,
the date on which a Priority Claim
becomes due in the ordinary course.
Unimpaired. Deemed to accept the
Plan. Not entitled to vote.
Estimated Range of Claims: de minimis
Estimated Recovery: 100%
2 Secured Claims Secured Claims, at the election of the
Debtors, either (a) be paid in full,
or (b) be reinstated on the Effective
Date.
Will vote, but only the votes of
claimants whose claims will be
reinstated will be counted.
Estimated Range of Claims:
$28,000,000 to $33,000,000
Estimated Recovery: 100%
3 Trade & General Trade and General Unsecured Claims
Unsecured Claims will be paid in Cash (a) the allowed
amount of the holder's claim or a pro
rata share of available funds, and (b)
to the extent of any funds remaining
after the payment of $750 million each
to the Asbestos Trust and the Class 9
Residual Environmental Claims, post-
petition interest at the federal
judgment rate.
Impaired. Entitled to vote.
Estimated Range of Claims:
$281,000,000 to $440,000,000
Estimated Recovery: 100%
4 Bondholders' Bondholders' Claims will be paid in
Claims Cash (a) the Allowed Amount of the
holder's Claim or a pro rata share of
available funds, and (b) to the extent
of any funds remaining after the
payment of $750 million each to the
Asbestos Trust and the Class 9
Residual Environmental Claims,
postpetition interest at the federal
judgment rates.
Impaired. Entitled to vote.
Estimated Range of Claims:
$448,000,000 to $553,000,000
Estimated Recovery: 100%
5 Demands and Will be channeled to the Asbestos
Unsecured Asbestos Trust and processed, liquidated, and
Personal Injury paid pursuant to the terms and
Claims provisions of the Asbestos TDP and the
Asbestos Trust Agreement.
Impaired. Entitled to vote.
Estimated Range of Claims:
More than $1.3 billion to $2.1 billion
Estimated Recovery: $750,000,000, plus
Litigation Trust Interests and other
consideration
6 Toxic Tort Claims Will be paid in Cash (a) the Allowed
Amount of the holder's claims, or a
pro rata share of available funds, and
(b) to the extent of any funds
remaining after the payment of
$750,000,000 each to the Asbestos
Trust and the Class 9 Residual
Environmental Claims, postpetition
interest at the federal judgment rate.
Impaired. Entitled to vote.
Estimated Range of Claims:
$56,000,000 to $69,000,000
Estimated Recovery: 100%
7 Previously Settled Will be paid in Cash (a) the Allowed
Environmental Amount, or a pro rata share of
Claims available funds, and (b) to the extent
of any funds remaining after the
payment of $750 million each to the
Asbestos Trust and the Class 9
Residual Environmental Claims,
postpetition interest at the federal
judgment rate.
Impaired. Entitled to vote.
Estimated Range of Claims:
$512,500,000
Estimated Recovery: 100%
8 Miscellaneous Will be paid in Cash (a) the Allowed
Federal and State Amount, or a pro rata share of
Environmental available funds, and (b) to the extent
Claims of any funds remaining after the
payment of $750 million each to the
Asbestos Trust and the Class 9
Residual Environmental Claims,
postpetition interest.
Impaired. Entitled to vote.
Estimated Range of Claims:
$103,000,000
Estimated Recovery: 100%
9 Residual Will be paid (a) up to $750 million,
Environmental to the extent of available funds after
Claims payment of Classes 3, 4, 6, 7, and 8
Claims; (b) up to $102 million, to the
extent of any remaining funds after
payment of Classes 3, 4, 6, 7, and 8
are paid postpetition interest; and
(c) half of the Litigation Trust
Interests, subject to the right of
Class 3, 4, 6, 7, and 8 Claims to
receive Litigation Proceeds if needed
for their Claims to be Paid in Full
and the Asbestos Trust's right to the
first $100 million of the Litigation
Proceeds distributed with respect to
the Litigation Trust Interests.
Impaired. Entitled to vote.
Estimated Range of Claims:
$1,130 billion to $3.1 billion
Estimated Recovery: $750 million, plus
Litigation Trust Interests
10 Late-Filed Claims To the extent the funds remaining
after Class 9 Claims and the Asbestos
Trust have each been paid $102 million
will first be paid the Allowed Amount
and then the postpetition interest.
Impaired. Entitled to vote.
Estimated Range of Claims:
$10,000,000 to $26,000,000
Estimated Recovery: 0%
11 Subordinated To the extent of funds remaining after
Claims Class 10 Claims have been paid in
full, will first be paid the Allowed
Amount and the postpetition interest.
Impaired. Entitled to vote.
Estimated Range of Claims: TBD
Estimated Recovery: 0%
12 Interests in Canceled and will not receive nor
ASARCO LLC retain any property.
Impaired. Deemed to reject the Plan.
Not entitled to vote.
Estimated Range of Claims: N/A
Estimated Recovery: 0%
13 Interests in Canceled and will not receive nor
Asbestos Debtors retain any property.
Impaired. Deemed to reject the Plan.
Not entitled to vote.
Estimated Range of Claims: N/A
Estimated Recovery: 0%
14 Interests in Canceled and will not receive nor
Other Subsidiary retain any property under the Plan.
Debtors
Impaired. Deemed to reject the Plan.
Not entitled to vote.
Estimated Range of Claims: N/A
Estimated Recovery: 0%
Joseph F. Lapinsky, ASARCO LLC's chief executive officer, said
that, in formulating the Estimated Recovery, the Debtors made a
projection of Cash anticipated to be on hand at the end of the
year from operations and other sources, added the Cash expected
from the Plan Sponsor, and considered projected uses of Cash
between now and the end of the year.
Although no assurances can be given, the Debtors believe that
Classes 3, 4, 6, 7, and 8 could receive a 100% recovery on the
principal amount of their Claims. The Debtors also believe that
Classes 5 and 9 will receive $750 million under the Plan,
although, under a conservative estimate, these Classes would
receive at least 95% of $750 million each; in either case, these
Classes would also receive Litigation Trust Interests and other
consideration.
The distribution percentages, Mr. Lapinsky added, are based on
many assumptions and estimates, and actual results could be
significantly higher or lower for a number of reasons. He cited
that the Debtors' Cash at the end of the year is dependent on
copper prices which have been, and continue to be, volatile.
Sources of payments to be made to Claimants pursuant to the Plan
include the Debtors' Distributable Cash, which as of December 31,
2008, is expected to total $1,372,000,000; and the Available Plan
Sales Proceeds, which are expected to total $2,525,000,000,
assuming a $75 million Adjustment Payment Reserve, Mr. Lapinsky
related.
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. Sander L.
Esserman, Esq., at Stutzman, Bromberg, Esserman & Plifka, APC, in
Dallas, Texas, represents the Official Committee of Unsecured
Creditors for the Asbestos Debtors. Former judge Robert C. Pate
has been appointed as the future claims representative. 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).
Six of ASARCO's affiliates, Wyoming Mining & Milling Co., Alta
Mining & Development Co., Tulipan Co., Inc., Blackhawk Mining &
Development Co., Ltd., Peru Mining Exploration & Development Co.,
and Green Hill Cleveland Mining Co. filed for Chapter 11
protection on April 21, 2008. (Bank. S.D. Tex. Case No. 08-20197
to 08-20202).
The Debtors submitted to the Court a joint plan of reorganization
and disclosure statement on July 31, 2008. The plan incorporates
the sale of substantially all of the Debtors' assets to Sterlite
Industries, Ltd., for $2,600,000,000.
Americas Mining Corporation, an affiliate of Grupo Mexico SAB de
CV, submitted a reorganization plan to retain its equity interest
in ASARCO LLC, by offering full payment to ASARCO's creditors in
connection with ASARCO's Chapter 11 case. AMC would provide up to
$2.7 billion in cash as well as a $440 million guarantee to assure
payment of all allowed creditor claims, including payment of
liabilities relating to asbestos and environmental claims. AMC's
plan is premised on the estimation of the approximate allowed
amount of the claims against ASARCO.
Asarco Inc. and AMC are represented by Luc A. Despins, Esq., at
Milbank, Tweed, Hadley & McCloy LLP, in New York.
(ASARCO Bankruptcy News Issue No. 84; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000).
BEACH LANE: Sale of Hamptons Estate Approved; Bids Due Nov. 4
-------------------------------------------------------------
By order of the U.S. Bankruptcy Court for the Southern District of
New York, Keen Consultants -- The Real Estate Division of KPMG
Corporate Finance LLC -- is selling Spectacular Hamptons Estate
located at 74 Beach Lane, Westhampton Beach, New York.
The house is 9,000+ sq. ft and sits on 2+ beautifully manicured
acres. There are 8 bedrooms and 7.5 baths along with a guest
house, Gunite pool and pagoda.
Offers are due November 4, 2008. KPMG's Matthew Bordwin says
offers are being accepted immediately and upon the receipt of an
acceptable offer, the Debtor will sell the property, subject to
Bankruptcy Court procedures.
For more information:
Matthew Bordwin
E-mail: mbordwin@kpmg.com
Managing Director & Group Head - Real Estate Services
KPMG Corporate Finance LLC
Keen Consultants - The Real Estate Division of KPMG Corporate
Finance LLC
1305 Walt Whitman Road, Suite 200
Melville, NY 11747
Tel: (631) 351-7800 (Main)
(631) 421-8282 (Direct)
Fax: (631) 794-2448
On the Net:
http://www.keenconsultants.com
http://www.KPMGCorporateFinance.com
Headquartered in New York City, Beach Lane Estate Corp. owns and
manages real estate. The Debtor filed for Chapter 11 protection
on April 10, 2008, (Bank. S.D. N.Y. Case No.: 08-11296). Mark A.
Frankel, Esq., at Backenroth Frankel & Krinsky LLP, represents the
Debtor in its restructuring efforts. The Debtor related that no
receiver, trustee or examiner has been appointed nor have any
official committees been appointed in this case. When the Debtor
filed for protection from its creditors, it has estimated assets
and debts of $1 million to $100 million.
ASARCO LLC: Robert Pate Wants to Employ Oppenheimer as Counsel
--------------------------------------------------------------
Judge Robert Pate, as Future Claims Representative for ASARCO LLC
and its debtor affiliates, seeks permission from the U.S.
Bankruptcy Court for the Southern District of Texas Court to
retain Oppenheimer, Blend, Harrison & Tate, Inc., as his counsel.
According to the FCR, OBHT is well qualified to represent him as
FCR for the Debtors because OBHT's shareholders and associates
have experience in matters concerning future claims.
As counsel to the FCR, OBHT is expected, among others things, to:
-- give the FCR legal advice with respect to his duties and
obligations in the Debtors' bankruptcy cases as the legal
representatives of future claimants who may assert
demands against the Debtors;
-- prepare in behalf of the FCR necessary application,
notices, answers adversaries, orders, reports, legal
papers;
-- advise the FCR concerning the administration of the case;
-- assist the FCR in his investigation of the Debtors'
business, and any other matter relevant to the
formulation of a plan; and
-- provide advice and assistance regarding the tax, trust,
litigation, and other non-bankruptcy law aspects that
may be required in the performance of the duties of the
FCR.
For its services as counsel to the FCR, OBHT is compensated on an
hourly basis:
Professional Rate per hour
------------ -------------
John H. Tate, II $450
Raymund W. Battaglia 450
Debra L. Innocenti 275
The FCR says other OBHT lawyers may be needed from time to time.
John H. Tate, Esq., an attorney and a shareholder of OBHT,
assures the Court that OBHT is a "disinterested person" as the
term is defined in Section 101(14), modified by Section 1107(b),
of the Bankruptcy Code.
Moreover, Mr. Tate declares that OBHT does not hold or represent
any interest adverse to ASARCO or the Additional Debtors, their
estates or the entities whom OBHT would represent with respect to
the matters relating OBHT's retention as counsel for the FCR.
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. Sander L.
Esserman, Esq., at Stutzman, Bromberg, Esserman & Plifka, APC, in
Dallas, Texas, represents the Official Committee of Unsecured
Creditors for the Asbestos Debtors. Former judge Robert C. Pate
has been appointed as the future claims representative. 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).
Six of ASARCO's affiliates, Wyoming Mining & Milling Co., Alta
Mining & Development Co., Tulipan Co., Inc., Blackhawk Mining &
Development Co., Ltd., Peru Mining Exploration & Development Co.,
and Green Hill Cleveland Mining Co. filed for Chapter 11
protection on April 21, 2008. (Bank. S.D. Tex. Case No. 08-20197
to 08-20202).
The Debtors submitted to the Court a joint plan of reorganization
and disclosure statement on July 31, 2008. The plan incorporates
the sale of substantially all of the Debtors' assets to Sterlite
Industries, Ltd., for $2,600,000,000.
Americas Mining Corporation, an affiliate of Grupo Mexico SAB de
CV, submitted a reorganization plan to retain its equity interest
in ASARCO LLC, by offering full payment to ASARCO's creditors in
connection with ASARCO's Chapter 11 case. AMC would provide up to
$2.7 billion in cash as well as a $440 million guarantee to assure
payment of all allowed creditor claims, including payment of
liabilities relating to asbestos and environmental claims. AMC's
plan is premised on the estimation of the approximate allowed
amount of the claims against ASARCO.
Asarco Inc. and AMC are represented by Luc A. Despins, Esq., at
Milbank, Tweed, Hadley & McCloy LLP, in New York.
(ASARCO Bankruptcy News Issue No. 82; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000).
ASARCO LLC: Asbestos Panel Wants to Employ Stutzman as Counsel
--------------------------------------------------------------
Pursuant to Section 1103(a) of the Bankruptcy Code, the Official
Committee of Asbestos Claimants against ASARCO LLC and its debtor-
affiliates asks the U.S. Bankruptcy Court for the Southern
District of Texas for authority to retain Stutzman, Bromberg,
Esserman & Plifka, as its counsel.
On behalf of the Asbestos Committee, Alan R. Brayton tells the
Court that the Asbestos Committee has selected SBEP because of
its experience in representing various parties in numerous other
reorganization cases. In addition, the Asbestos Committee has
selected SBEP because it is currently counsel for the Official
Committee of Unsecured Creditors for the Asbestos Debtors and is
therefore already intimately familiar with the intricacies of the
complex cases and the issues surrounding the asbestos-related
claims against the Debtors.
As counsel to the Asbestos Committee, SBEP is expected to:
-- advise the Asbestos Committee regarding matters of
bankruptcy law and procedure and its statutory powers and
duties to its constituents, including rights and remedies
of the Asbestos Committee and its constituents with
regard to assets of, and claims against, the Debtors and
other creditors of the Debtors' estates;
-- represent the Asbestos Committee at any proceeding or
hearing before the Court and in any action in any other
court where the rights or interests of the Asbestos
Committee or its constituency may be litigated or
affected;
-- to prepare any pleadings, motions, answers, notices,
orders and reports that are required for the Asbestos
Committee to assist the Court in the orderly
administration of the Debtors' estates;
-- advise, consult with, and assist the Asbestos Committee
in its investigation of the Debtors' businesses and the
desirability of the continuance of Debtors' businesses,
and any other matter relevant to this case; and
-- assist the Asbestos Committee in the negotiation of and
opposition to a plan or plans of reorganization.
SBEP will be compensated on an hourly basis and reimbursed of
reasonable necessary out-of-pocket expenses incurred in the
performance of its services. SBEP's hourly rates are:
Professional Hourly rate
------------ -----------
Steven A. Felsenthal $725
Sander L. Esserman 700
Robert T. Brousseau 550
Peter C. D'Apice 525
Richard E. Wallach 500
David A. Klinger 425
Jo E. Hartwick 395
Jacob L. Newton 375
Andrea L. Niedermeyer 365
David J. Parsons 365
Terrie D. Khoshbin 325
Douglas D. Gutsell 325
Cliff I. Taylor 325
Briana L. Cioni 275
Heather J. Panko 250
Cindy L. Jeffrey 175
Mellanie R. Fain 95
Mr. Brayton narrates that prior to the Asbestos Debtors' Petition
Date, ASARCO provided SBEP with a $50,000 retainer with respect to
SBEP's representation of an ad hoc committee of asbestos claimants
who were subsequently appointed as members of the Subsidiary
Committee and who now are members of the Asbestos Committee.
As of the April 11, 2005 Petition Date for the Asbestos Debtors,
SBEP had applied the entire retainer for services rendered
prepetition. After drawing down on the entire amount of the
retainer to pay for prepetition services, there remained a $10,235
balance due from ASARCO for additional prepetition
services. Subsequent to the Petition date, ASARCO paid off the
prepetition balance.
SBEP has also filed ten interim applications for compensation for
services rendered and reimbursement of out-of-pocket expenses
incurred as counsel for the Subsidiary Committee. The first nine
of the interim applications for compensation have been approved by
the Court. The tenth interim application for compensation was
filed on August 19, 2008.
SBEP currently represents some of the law firms who were members
of the Ad Hoc Committee in other matters not related to the
Debtors' Chapter 11 cases, including:
* Baron & Budd, P.C.,
* Silber Pearlman, L.L.P.,
* James F. Humphrey & Assoc.,
* Hissey Keintz & Herron,
* Campbell Cherry Harrison Davis & Dove,
* Ryan A. Foster & Associates,
* Williams Bailey Law Firm,
* Brent Coon & Associates,
* Brayton Purcell,
* Kazan McClain Abrams Lyons Greenwood & Harley, PLC, and
* Provost Umphrey Law Firm, L.L.P.
Additionally, SEBP also represents Simmons Cooper, LLC, a firm
which serves as attorney for and representative of a member of
the Subsidiary Committee but was not a member of the Ad Hoc
Committee.
SBEP will continue to represent the Subsidiary Committee,
consistent with the Asbestos Committee's bylaws, for purposes of
fulfilling the Subsidiary Committee's obligations in connection
with ASARCO's asbestos-related liability.
Sander L. Esserman, Esq., a shareholder of the law firm SBEP,
assures the Court that his firm does not represent any other
entity having adverse interest in the Debtors. He declares that
he owns a certain number of shares of stock in Lehman Brothers
Inc., a firm authorized to render services to ASARCO as Financial
Advisor and investment Banker. He declares further that SBEP does
not believe that his purchase of the Lehman Brothers stock creates
disqualifying conflict as SBEP does not hold interest adverse to
the Debtors or the Debtors' estates and is a "disinterested
person" as the term is defined in Section 101(14) of the
Bankruptcy Code.
Mr. Esserman assures the Court that SBEP will continue to monitor
its connections and the connections of its attorneys to the
Debtors, other creditors, or any other party-in-interest to
ensure that no conflicts or other disqualifying circumstances
arise, and will file supplemental disclosures as needed.
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. Sander L.
Esserman, Esq., at Stutzman, Bromberg, Esserman & Plifka, APC, in
Dallas, Texas, represents the Official Committee of Unsecured
Creditors for the Asbestos Debtors. Former judge Robert C. Pate
has been appointed as the future claims representative. 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).
Six of ASARCO's affiliates, Wyoming Mining & Milling Co., Alta
Mining & Development Co., Tulipan Co., Inc., Blackhawk Mining &
Development Co., Ltd., Peru Mining Exploration & Development Co.,
and Green Hill Cleveland Mining Co. filed for Chapter 11
protection on April 21, 2008. (Bank. S.D. Tex. Case No. 08-20197
to 08-20202).
The Debtors submitted to the Court a joint plan of reorganization
and disclosure statement on July 31, 2008. The plan incorporates
the sale of substantially all of the Debtors' assets to Sterlite
Industries, Ltd., for $2,600,000,000.
Americas Mining Corporation, an affiliate of Grupo Mexico SAB de
CV, submitted a reorganization plan to retain its equity interest
in ASARCO LLC, by offering full payment to ASARCO's creditors in
connection with ASARCO's Chapter 11 case. AMC would provide up to
$2.7 billion in cash as well as a $440 million guarantee to assure
payment of all allowed creditor claims, including payment of
liabilities relating to asbestos and environmental claims. AMC's
plan is premised on the estimation of the approximate allowed
amount of the claims against ASARCO.
Asarco Inc. and AMC are represented by Luc A. Despins, Esq., at
Milbank, Tweed, Hadley & McCloy LLP, in New York.
(ASARCO Bankruptcy News Issue No. 82; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000).
ASPEN EXECUTIVE: To File Plan, Disclosure Statement By Sept. 23
---------------------------------------------------------------
Bloomberg News reports that Aspen Executive Air, LLC, has promised
the U.S. Bankruptcy Court for the District of Delaware that it
will file a proposed Chapter 11 plan and explanatory disclosure
statement "well in advance" of a Sept. 23 hearing, where it will
ask for an extension of the exclusive right to propose a plan.
The Debtor says it has "substantially finalized" the Plan
documents, the report specifies. The assets were sold earlier
this year to an insider named John P. Calamos who was to invest in
Pinnacle Air LLC, become Pinnacle's controlling shareholder, and
have Pinnacle buy Aspen's assets, the report notes.
Based in Basalt, Colorado, Aspen Executive Air, L.L.C., aka AEXJet
-- http://www.aexjet.com/-- is a private jet travel company. The
company filed for chapter 11 protection on
Sept. 14, 2007 (Bankr. D. Del. Case No. 07-11341). Laura Davis
Jones, Esq., Bruce Grohsgal, Esq., and Curtis A. Hehn, Esq., at
Pachulski Stang Ziehl & Jones LLP, represent the Debtor. The
Debtors have selected Administar Services Group LLC as claims,
noticing and balloting agent. Donald J. Bowman, Jr., Esq., and
Michael R. Nestor, Esq., at Young, Conaway, Stargatt & Taylor,
represent the Official Committee of Unsecured Creditors. When the
Debtor filed for protection form its creditors, it listed assets
between $1 million and $100 million. The Debtor's list of 20
largest unsecured creditors showed claims of more than $20
million.
ASSET SECURITIZATION: Fitch Keeps 'C/DR2' Rtng on Class A-4 Certs.
------------------------------------------------------------------
Fitch Ratings affirmed these classes of Asset Securitization
Corp.'s commercial mortgage pass-through certificates, series
1997-MDVII:
-- $25.1 million class A-3 at 'AAA';
-- Interest-only class PS-1 at 'AAA'.
In addition, Fitch maintains the $5.7 million class A-4 at
'C/DR2'. Classes A-1A, A-1B, and A2 have paid in full. A-5 and A-
6 have been reduced to zero due to realized losses. Fitch does
not rate classes B-1 and B-1H.
The affirmations are the result of the continued performance under
the terms of the defeasance. Class A-4 remains at 'C/DR2' due to
already incurred realized losses.
AVISTAR COMM: Signs Licensed Works & Patent License Pacts With IBM
------------------------------------------------------------------
On September 8, 2008, Avistar Communications Corporation entered
into a Licensed Works Agreement and a Statement of Work Agreement
and on September 9, 2008, Avistar entered into a Patent License
Agreement with International Business Machines Corporation.
Avistar agreed to integrate its bandwidth management technology
and related IP into future Lotus Unified Communications offerings.
An initial cash payment of $3 million will be made by IBM to
Avistar within 60 days of the Agreement's execution, followed by
two additional non-refundable payments of $1.5 million, each
associated with scheduled phases of delivery. IBM has agreed to
make future royalty payments to Avistar of two percent of the
world-wide net revenue derived by IBM from Lotus Unified
Communications products sold, and maintenance payments from
existing customers, which incorporate Avistar's technology after
an initial threshold of revenue is recorded by IBM.
The Agreements have a five-year term and are non-cancelable except
for material default by either party. The Agreements also convey
to IBM a non-exclusive world-wide license to Avistar's patent
portfolio existing at the time of the Agreements and for all
subsequent patents issued with an effective filing date of up to
five years from the date of the Agreements' execution, and a
release for any and all claims of past infringement.
About Avistar Communications
Headquartered in San Mateo, California, Avistar Communications
Corporation (Nasdaq: AVSR) -- http://www.avistar.com/-- holds a
portfolio of 80 patents for inventions in video and network
technology and licenses IP to videoconferencing, rich-media
services, public networking and related industries. Current
licensees include Sony Corporation, Sony Computer Entertainment
Inc. (SCEI), Polycom Inc., Tandberg ASA, Radvision Ltd. and
Emblaze-VCON.
The Troubled Company Reporter reported on July 28, 2008, that at
June 30, 2008, the company's consolidated balance sheet showed
$10.2 million in total assets and $25.0 million in total
liabilities, resulting in a $14.8 million stockholders' deficit.
The company's consolidated balance sheet at June 30, 2008, also
showed strained liquidity with $9.0 million in total current
assets available to pay $16.0 million in total current
liabilities. The company reported a net loss of $1.6 million for
the second quarter ended June 30, 2008, as compared to net income
of $388,000 in the same period last year.
BAKERS FOOTWEAR: Posts $2.2 Million Net Loss in Qtr. Ended Aug. 2
-----------------------------------------------------------------
Bakers Footwear Group Inc. delivered its Form 10-Q to the
Securities and Exchange Commission on Sept. 10, 2008. The company
posted a net loss of $2,261,710 for the 13 weeks ended Aug. 2,
2008, on net sales of $43,568,099.
As of Aug. 2, 2008, the company's balance sheet showed total
assets of $65,466,041, total liabilities of $47,459,802, and total
shareholders' equity of $18,006,239.
The company disclosed that as of September 5, 2008, it was in
compliance with all of its financial and other covenants and
expects to remain in compliance throughout fiscal year 2008 based
on the expected execution of its business plan.
The company's business plan for the remainder of fiscal year 2008
is based on moderate increases in comparable store sales through
the remainder of the year. The business plan also reflects
improved inventory management with a greater emphasis on core
lines and on focused promotional activity. This increased focus
on inventory should improve overall gross margin performance
compared to fiscal year 2007. The company has adjusted its
business plan in light of year-to-date sales and its current
liquidity position and has taken actions considered necessary to
maintain adequate liquidity and meet the financial covenants under
debt agreements. However, there is no assurance that the Company
will meet the sales or margin levels contemplated in the business
plan.
The company's $7.5 million three-year subordinated secured term
loan includes certain financial covenants which require it to
maintain specified levels of adjusted EBITDA and tangible net
worth each fiscal quarter and provides for annual limits on
capital expenditures. The company met all financial covenants as
of the end of the second quarter of fiscal year 2008. The minimum
adjusted EBITDA covenant for the first quarter of fiscal year 2008
was reduced as part of the amendment made on May 9, 2008 in order
to maintain compliance at May 3, 2008.
A full-text copy of the company's Form 10-Q is available for free
at http://researcharchives.com/t/s?3224
About Bakers Footwear
Based in St. Louis, Mo., Bakers Footwear Group Inc. (Nasdaq: BKRS)
-- http://www.bakersshoes.com/-- is a national, mall-based,
specialty retailer of distinctive footwear and accessories for
young women. The company's merchandise includes private label and
national brand dress, casual and sport shoes, boots, sandals and
accessories. The company currently operates over 240 stores
nationwide.
At May 3, 2008, the company's balance sheet showed $71.4 million
in total assets, $51.4 million in total liabilities, and roughly
$20.0 million in total stockholders' equity.
Going Concern Doubt
Ernst & Young LLP, in St. Louis, Missouri, expressed substantial
doubt about Bakers Footwear Group Inc.'s ability to continue as a
going concern after auditing the company's financial statements
for the years ended Feb. 2, 2008, and Feb. 3, 2007. The auditing
firm reported that the company has incurred substantial losses
from operations in recent years. In addition, the company is
dependent on its various debt agreements to fund its working
capital needs. The debt agreements contain certain financial
covenants with which the company must comply, and compliance
cannot be assured.
BEAZER HOMES: Citigroup Discloses 3.8% Equity Stake
---------------------------------------------------
Pursuant to the restructuring of Old Lane Partners, LLC, a
Citigroup Inc. subsidiary, on June 12, 2008, and effected on
June 26, 2008, Citigroup filed a Schedule 13G with the Securities
and Exchange Commission to reflect securities beneficially owned
by both Citigroup and Old Lane in Beazer Homes USA, Inc.
Citigroup discloses that it may be deemed to beneficially own
shares of Beazer Homes' common stock, which represents
approximately 3.8% of the outstanding shares:
Entity Shares Owned Percentage
------ ------------ ----------
Citigroup Financial Products Inc. 1,520,372 3.8%
Citigroup Global Markets Holdings Inc. 1,520,372 3.8%
Citigroup Inc. 1,522,401 3.8%
According to Riqueza V. Feaster, assistant secretary for the
three Citigroup companies, the number of shares owned assumes
conversion and exercise of certain securities held. As to the
Shares owned by Citigroup Inc., Riqueza Feaster said those include
shares held by Citigroup Financial Products and Citigroup Global
Markets Holdings.
About Beazer Homes
Headquartered in Atlanta, Beazer Homes USA Inc., (NYSE: BZH) --
http://www.beazer.com/-- is a single-family homebuilder with
operations in Arizona, California, Colorado, Delaware, Florida,
Georgia, Indiana, Maryland, Nevada, New Jersey, New Mexico, New
York, North Carolina, Ohio, Pennsylvania, South Carolina,
Tennessee, Texas, Virginia and Virginia.
* * *
As disclosed in the Troubled Company Reporter on June 12, 2008,
Fitch Ratings downgraded Beazer Homes USA Inc.'s Issuer Default
Rating to 'B' from 'B+'; Secured revolving credit facility to 'BB-
/RR1' from 'BB/RR1'; Senior notes to 'B-/RR5' from 'B/RR5';
Convertible senior notes to 'B-/RR5' from 'B/RR5'; and Junior
subordinated debt to 'CCC/RR6' from 'CCC+/RR6'.
BERKELEY PREMIUM: Files for Chapter 11 Bankruptcy in Ohio
---------------------------------------------------------
Erik Larson of Bloomberg News relates that Berkeley Premium
Nutraceuticals, Inc., filed for Chapter 11 bankruptcy protection
on September 16, 2008, with the U.S. Bankruptcy Court for the
Southern District of Ohio (Case No. 08-15012), blaming a
$474.5 million penalty in a criminal case.
Eleven of the Debtor's executives, including its owner, Steven
Warshak, have been convicted or pleaded guilty since the
government began investigating it in 2004, the report specifies.
The company asked the bankruptcy court to name a trustee to take
over its management, says the report.
The government accused the Debtor and its executives of making
false medical claims about products, lying about money-back
guarantees and creating a fictitious customer-care director,
ensuring complaints would be ignored, the report claims.
A jury on Feb. 22 found the Debtor guilty of bank fraud and mail
fraud for wrongfully taking million of dollars from customers by
charging credit cards without permission and sending products that
weren't ordered, the report recalls.
Criminal Penalty
A Cincinnati, Ohio federal court on Aug. 22 issued a forfeiture
judgment of $459.5 million plus a criminal penalty of $15 million
against the Debtor, the report says, citing court papers.
Mr. Warshak was sentenced on Aug. 27 by the federal court to 25
years in prison on four counts and ordered to forfeit $44.8
million in profit from money-laundering, the report says. His
mother, Harriet Warshak, was sentenced to two years in prison for
her role as director of Berkeley Premium's credit department,
according to the report.
The Debtor's in-house lawyer, Paul Kellogg, Esq., was sentenced on
Aug. 29 to one year and one day in prison, the report continues.
Other executives received sentences of 12 to 13 months, the report
says court records show.
Cincinnati, Ohio-based Berkeley Premium Nutraceuticals, Inc. --
http://www.berkeleypremiumnutraceuticals.com/-- makes dietary
supplements. Kim Martin Lewis, Esq., and Patrick Burns, Esq., at
Dinsmore & Shohl LLP represent the Debtor in its restructuring
efforts. The Debtor listed estimated assets between $1,000,000 to
$10,000,000 and liabilities between $100,000,000 to $500,000,000.
BERKELEY PREMIUM: Case Summary & 18 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Berkeley Premium Nutraceuticals, Inc.
1661 Waycross Road
Cincinnati, OH 45240
Bankruptcy Case No.: 08-15012
Type of business: The Debtor makes and sells natural health
supplements.
See:
http://www.berkeleypremiumnutraceuticals.com
Chapter 11 Petition Date: September 16, 2008
Court: Southern District of Ohio (Cincinnati)
Judge: J. Vincent Aug Jr.
Debtor's Counsel: Kim Martin Lewis, Esq.
kim.lewis@dinslaw.com
Patrick Burns, Esq.
patrick.burns@dinslaw.com
Dinsmore & Shohl LLP
1900 Chemed Center
255 East Fifth Street
Cincinnati, OH 45202
Tel: (513) 977-8200
Fax: (513) 977-8141
Estimated Assets: $1 million to $10 million
Estimated Debts: $100 million to $500 million
Debtor's XX Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Federal Government government judgment $464,540,000
Office of the U.S. Attorney
221 E. 4th st., Suite 400
Cincinnati, OH 45202
Tel: (513) 684-3711
Class Action Settlement $1,459,498
Mediavest Worldwide Inc. civil judgment $551,836
DBA Halogen Response Media
1675 Broadway
New York, NY 10019
NBC Universal trade debt $462,500
Fox News Channel trade debt $312,644
Rodale trade debt $270,891
Bieser, Greer and Landis LLP trade debt $192,857
Attorney General of Texas settlement $149,333
Martin G. Weinberg, PC trade debt $75,000
Time Warner Telecom trade debt $61,148
Black Box Network Services trade debt $52,540
Robert M. Goldstein trade debt $50,000
Wood Herron & Evans trade debt $44,063
Attorney General of Ohio settlement $42,666
Target Litigation Consulting trade debt $40,299
Attorney General of Illinois settlement $40,000
Attorney General of North settlement $40,000
Carolina
Hearst Magazines trade debt $39,710
BKF CAPITAL: Catalyst Fund Appoints Directors to Board
------------------------------------------------------
BKF Capital Group, Inc. disclosed in a Securities and Exchange
Commission filing on Aug. 27, 2008, that it entered into an
agreement with Catalyst Fund, L.P. which owns approximately 47.5%
of the Company's outstanding common stock, Catalyst's Fund
Manager, Steven N. Bronson, and each of its current directors and
officers.
Under the terms of the Agreement, the Board of Directors and
management of the Company retired on Sept. 8, 2008, with the
current Board being replaced with directors designated by
Catalyst.
The Agreement requires for at least a two-year period that a
majority of the Board be comprised of directors who are
independent of both the Company and Catalyst and that all
transactions and relationships between the Company and Catalyst or
its affiliates, and all other major transactions, be on an arm's-
length basis and be approved by the Company's independent
directors.
The new directors will take office after distribution of certain
information to stockholders, as required under the federal
securities laws. These directors include:
-- Mr. Bronson, who is expected to be elected as chairman
and chief executive officer to succeed Harvey Bazaar;
-- John A. Brunjes, a corporate and securities lawyer and a
partner in the law firm of Bracewell & Giuliani; and
-- Leonard Hagan, a certified public accountant and a
principal in the firm of Hagan & Burns CPA's PC.
Going Concern Doubt
As reported in the Troubled Company Reporter on March 18, 2008,
Holtz Rubenstein Reminick LLP, in New York, expressed substantial
doubt about BKF Capital Group Inc.'s ability to continue as a
going concern after auditing the company's consolidated financial
statements for the year ended Dec. 31, 2007.
The auditing firm stated that the company experienced a total loss
of assets under management and as a result the company has had a
significant decline in revenues in 2007 and no longer has an
operating business.
The company continues to evaluate strategic alternatives: either
commence a new business or liquidate. Historically, the company
has funded its cash and liquidity needs through cash generated
from operations; however, in light of the above, the company
expects that cash generated from current operations will not be
sufficient to fund operations and that the company will use its
existing working capital to fund operations.
About BKF Capital
New York City-based BKF Capital Group Inc. (OTHER OTC: BKFG.PK)
does not have significant operations. Previously, the company was
engaged in the provision of investment advisory and asset
management services in the United States.
BON-TON STORES: Files Form 10-Q With SEC
----------------------------------------
The Bon-Ton Stores, Inc., delivered its Form 10-Q, containing
financial statements for the three months ended August 2, 2008, to
the Securities and Exchange Commission on September 10, 2008. A
full-text copy of the company's Form 10-Q is available for free at
http://researcharchives.com/t/s?3217
The Troubled Company Reporter reported on Aug. 28, 2008, that for
the 13-week period ended Aug. 2, 2008, the company reported a net
loss of $33.8 million, including a $17.8 million non-cash pre-
tax goodwill impairment charge, compared with a net loss of
$15.0 million for the thirteen-week period ended Aug. 4, 2007.
For the 26-week period ended Aug. 2, 2008, the company reported a
net loss of $67.9 million compared with a net loss of
$44.3 million for the comparable period last year.
At Aug. 2, 2008, the company's balance sheet showed total assets
of $2.0 billion, total liabilities of $ 1.7 billion and
shareholders' equity of approximately $300 million.
About The Bon-Ton Stores
York, Pennsylvania-based The Bon Ton Stores Inc. (Nasdaq: BONT) --
http://www.bonton.com/-- operates 280 department stores, which
includes 11 furniture galleries, in 23 states in the Northeast,
Midwest and upper Great Plains under the Bon-Ton, Bergner's,
Boston Store, Carson Pirie Scott, Elder-Beerman, Herberger's and
Younkers nameplates and, under the Parisian nameplate, three
stores in the Detroit, Michigan area. The stores offer a broad
assortment of brand-name fashion apparel and accessories for
women, men and children, as well as cosmetics and home
furnishings.
* * *
Moody's Investors Service placed The Bon-Ton Stores Inc.'s senior
unsecured debt rating at Caa1 in February 2008. The rating still
holds to date with a stable outlook.
BOOM DRILLING: Court Okays Payment of Pre-Bankruptcy Wages
----------------------------------------------------------
The Hon. Richard L. Bohanon of the U.S. Bankruptcy Court for the
Western District of Oklahoman approved Boom Drilling Inc.'s
request to pay wages due to its employees, Marie Price of The
Journal Record reported Tuesday.
Judge Bohanon allowed the Debtor to pay pre-bankruptcy wages and
benefits for the period Aug. 27 to Sept. 2, up to $390,000, with
no payment for any individual worker to exceed $10,950. Wage
payments do not include bonuses, commissioners or severance.
Boom may also pay pre-petition out-of-pocket business expenses for
all employees, not to exceed a total of $5,000, up to $89,950 for
health, workers' compensation and other types of insurance and
$4,500 in employer/employee 401(k) contributions, Ms. Price
disclosed.
The Court also approved the request of Laurus Master Fund, Ltd.,
to examine a representative of Boom Drilling, directing the
bankrupt company to produce certain documents and allowing Laurus
to inspect certain collateral.
Laurus is owed $77 million, making it the Debtor's largest listed
creditor.
Ms. Price, citing information provided by the company's attorney,
says that Boom Drilling is currently valued at between
$120 million and $140 million, and has between $86 million and
$97 million in liabilities.
The $77 million claim by Laurus Master Fund was for acquisition of
equipment such as oil rigs and for refinancing other equipment.
Boom is contesting the amount claimed by Laurus, including the
validity of liens granted to secure repayment.
In its Chapter 11 filings, Boom Drilling listed about 144 total
creditors, including $3.7 million in payroll taxes owed to the
Internal Revenue Service in Philadelphia.
About Boom Drilling
Headquartered in Woodward, Oklahoma, Boom Drilling Inc. --
http://www.boomdrilling.com/-- owns and operates 12 oil and gas
drilling rigs together with associated parts, components and
drilling related equipment. It has approximately 400 employees.
The company and its affiliates filed for Chapter 11 protection on
Sept. 8, 2008 (Bankr. W.D. Okla. Lead Case No. 08-13941). Stephen
J. Moriarty, Esq., at Andrews Davis, PC, represents the Debtors in
their restructuring efforts. When the Debtor filed for protection
from its creditors, it listed assets of between $100 million and
$500 million, and debts of between $50 million and $100 million.
BOSCOV'S INC: Can Hire Jones Day as Lead Bankruptcy Counsel
-----------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware authorized
Boscov's Inc. and its affiliated debtors to employ Jones Day as
their counsel.
As reported in the Troubled Company Reporter on Aug. 13, 2008,
Jones Day is expected to:
(a) advise the Debtors of their rights, powers and duties in
continuing to operate and manage their respective
businesses and properties under Chapter 11 of the
Bankruptcy Code;
(b) prepare on behalf of the Debtors all necessary and
appropriate applications, motions, draft orders, other
pleadings, notices, schedules and other documents, and
reviewing all financial and other reports to be filed in
the Chapter 11 cases;
(c) advise the Debtors concerning, and prepare responses to,
applications, motions, other pleadings, notices and
other papers that may be filed by other parties;
(d) advise the Debtors with respect to, and assist in the
negotiation and documentation of, financing agreements
and related transactions;
(e) review the nature and validity of any liens asserted
against the Debtors' property and advise the Debtors
concerning the enforceability of the liens;
(f) advise the Debtors regarding their ability to initiate
actions to collect and recover property for the benefit
of their estates;
(g) advise the Debtors in connection with the formulation,
negotiation and promulgation of a plan or plans of
reorganization and related transactional documents;
(h) advise and assist the Debtors in connection with any
asset sales and potential property dispositions;
(i) advise the Debtors concerning executory contract and
unexpired lease assumptions, assignments and rejections
and lease restructurings and recharacterizations;
(j) assist the Debtors in reviewing, estimating and
resolving claims asserted against the Debtors' estates;
(k) commence and conduct litigation necessary and
appropriate to assert rights held by the Debtors,
protect assets of the Debtors' Chapter 11 estates or
otherwise further the goal of completing the Debtors'
successful reorganization;
(l) provide non-bankruptcy services for the Debtors to the
extent requested by the Debtors; and
(m) perform all other necessary and appropriate legal
services in connection with the Chapter 11 cases for or
on behalf of the Debtors.
The Debtors will pay Jones Day and its professionals according to
their customary hourly rates. The Debtors anticipate that the
Jones Day professionals will take the lead in the Debtors'
Chapter 11 cases:
Professional Hourly Rate
------------ ------------
David G. Heiman, Esq. $875
Brad B. Erens, Esq. $700
Marc F. Skapof, Esq. $495
Robert E. Krebs, Esq. $425
Steven A. Domanowski, Esq. $425
Timothy Hoffman, Esq. $400
Daniel M. Syphard, Esq. $250
The Debtors will also reimburse Jones Day for any necessary out-
of-pocket expenses it incurs.
Brad B. Erens, Esq., a partner at Jones Day, in Chicago,
Illinois, related in an affidavit filed with the Court that his
firm do not sue current clients in connection with representing a
debtor in a chapter case. He said that if the Debtors file a
lawsuit against a party-in-interest in their Chapter 11 cases who
is a current Jones Day client, the Debtors must retain another
professional or conflict counsel. Mr. Erens told the Court that
the Debtors have no current plans to sue a party-in-interest in
their cases that is a current Jones Day client.
Mr. Erens further informed that Jones Day holds $420,000 as
remaining amount from the retainer it received from the Debtor.
The amount will be deemed converted into an evergreen retainer
for purposes of the Debtors' Chapter 11 cases that constitute
property of the Debtors' estates.
Mr. Erens, a partner at Jones Day, assured the Court that his
firm is a "disinterested person" as that term is defined in
Section 101(14) of the Bankruptcy Code, as modified by Section
1107(b). He adds that his firm does not represent any interest
adverse to the Debtors, their estates, and their creditors.
About Boscov's Inc.
Headquartered in Reading, Pennsylvania, Boscov's Inc. --
http://www.boscovs.com-- is America's largest family-owned
independent department store, with 49 stores in Pennsylvania, New
York, New Jersey, Maryland, Delaware and Virginia.
Boscov's Inc. and its debtor-affiliates filed for Chapter 11
protection on Aug. 4, 2008 (Bankr. D. Del. Case No.: 08-11637).
Judge Kevin Gross presides over the cases.
David G. Heiman, Esq., and Thomas A. Wilson, Esq., at Jones Day,
serve as the Debtors' lead counsel. Daniel J. DeFranceschi, Esq.,
and L. Katherine Good, Esq. at Richards, Layton & Finger, P.A.,
serve as the Debtors' local Delaware counsel. The Debtors'
financial advisor is Capstone Advisory Group and their investment
banker is Lehman Brothers Inc. The Debtors' claims agent is
Kurtzman Carson Consultants, L.L.C.
Boscov's listed assets of $538 million and liabilities of
$479 million in its bankruptcy filing. (Boscov's Bankruptcy News;
Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
BOSCOV'S INC: Can Hire Richards Layton as Bankruptcy Co-Counsel
---------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware authorized
Boscov's Inc. and its affiliated debtors to employ Richards Layton
& Finger P.A., as their co-counsel.
As reported in the Troubled Company Reporter on Aug. 18, 2008,
Richards Layton is expected to:
(a) advise the Debtors of their rights, powers and duties as
debtors and debtors-in-possession in the continued
operation of their business and management of their
properties;
(b) take all necessary action to protect and preserve the
Debtors' estates, including the prosecution of actions
on the Debtors' behalf, the defense of any actions
commenced against the Debtors, the negotiation of
disputes in which the Debtors are involved, and the
preparation of objections to claims filed against the
Debtors' estates;
(c) prepare on behalf of the Debtors all necessary motions,
applications, answers, orders, reports and papers in
connection with the administration of their estates;
(d) attend meetings and negotiations with representatives of
creditors, equity holders, prospective investors or
acquirers, and other parties-in-interest;
(e) appear before the Court, any appellate court and the
Office of the U.S. Trustee to protect the interests of
the Debtors;
(f) pursue approval of confirmation of a plan of
reorganization and approval of the corresponding
solicitation procedures and disclosure statement; and
(g) perform all other necessary legal services in connection
with the Debtors' Chapter 11 cases.
The Debtors will pay Richards Layton according to its customary
hourly rates. The Debtors anticipate these professionals to take
a lead in the bankruptcy cases:
Professional Hourly Rate
------------ -----------
Daniel J. DeFranceschi, Esq. $550
Paul N. Neath, Esq. $475
Lee E. Kaufman, Esq. $275
L. Katherine Good, Esq. $275
Cory D. Kandestin, Esq. $245
Ann Jerominski $185
The Debtors will also reimburse Richards Layton for any necessary
out-of-pocket expenses.
In an affidavit filed with the Court, Daniel J. DeFranceschi,
Esq., a director at Richards Layton, in Wilmington, Delaware,
said applicable laws or rules of ethics may prevent his firm from
being adverse to certain parties-in-interest in the Debtors' cases
based on the firm's past or current representation of those
parties-in-interest. His firm does not maintain a separate policy
in making these determinations, Mr. DeFranceschi said.
Mr. DeFranceschi assured the Court that his firm does not
represent any interest adverse to the Debtors or their estates,
and is a "disinterested person" as the term is defined in Section
101(14) of the Bankruptcy Code.
About Boscov's Inc.
Headquartered in Reading, Pennsylvania, Boscov's Inc. --
http://www.boscovs.com-- is America's largest family-owned
independent department store, with 49 stores in Pennsylvania, New
York, New Jersey, Maryland, Delaware and Virginia.
Boscov's Inc. and its debtor-affiliates filed for Chapter 11
protection on Aug. 4, 2008 (Bankr. D. Del. Case No.: 08-11637).
Judge Kevin Gross presides over the cases.
David G. Heiman, Esq., and Thomas A. Wilson, Esq., at Jones Day,
serve as the Debtors' lead counsel. The Debtors' financial
advisor is Capstone Advisory Group and their investment banker is
Lehman Brothers Inc. The Debtors' claims agent is Kurtzman Carson
Consultants L.L.C.
Boscov's listed assets of $538 million and liabilities of
$479 million in its bankruptcy filing. (Boscov's Bankruptcy News;
Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
BOSCOV'S INC: Court Extends Lease Decision Period Until March 2
---------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware extended
until March 2, 2009, the period within which Boscov's Inc. and its
affiliated debtors may decide to assume or reject their real
property leases.
The Debtors, however, are required to decide on Dec. 2, 2008,
whether to assume or reject their leases with:
-- WG Park-Anchor B, LP, at their retail store in Willow
Grove Park Shopping Center, Willow Grove, in Montgomery
County, Pennsylvania; and
-- PR Financing Limited Partnership at the North Hanover
Mall, at 1155 Carlisle Street, in Hanover, York County,
Pennsylvania, without prejudice to the Debtors' right to
ask for an extension to decide on the two leases.
As reported in the Troubled Company Reporter on Aug. 21, 2008, the
Debtors assured the Court that they will perform all undisputed
postpetition lease obligations pursuant to Section 365(d)(3).
About Boscov's Inc.
Headquartered in Reading, Pennsylvania, Boscov's Inc. --
http://www.boscovs.com-- is America's largest family-owned
independent department store, with 49 stores in Pennsylvania, New
York, New Jersey, Maryland, Delaware and Virginia.
Boscov's Inc. and its debtor-affiliates filed for Chapter 11
protection on Aug. 4, 2008 (Bankr. D. Del. Case No.: 08-11637).
Judge Kevin Gross presides over the cases.
David G. Heiman, Esq., and Thomas A. Wilson, Esq., at Jones Day,
serve as the Debtors' lead counsel. The Debtors' financial
advisor is Capstone Advisory Group and their investment banker is
Lehman Brothers Inc. The Debtors' claims agent is Kurtzman Carson
Consultants L.L.C.
Boscov's listed assets of $538 million and liabilities of
$479 million in its bankruptcy filing. (Boscov's Bankruptcy News;
Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
CANADIAN TRUST: Investor Arranges $85MM Loan Facility with HSBC
--------------------------------------------------------------
Redcorp Ventures Ltd., an ABCP investor, disclosed in a press
statement that it has arranged an $85 million non-revolving loan
facility with HSBC Bank Canada, which will be secured as a first
charge against, and applied against the redemption of, new long
term notes expected to be issued to Redcorp in replacement of its
existing $91.4 million ABCP notes pursuant to the court approved
proposal of the Pan-Canadian Investors Committee for Third-Party
Structured ABCP Investments. Once issued, the Loan may be repaid
at any time by Redcorp and will be due in any event on December
20, 2016. The Loan will bear interest at HSBC Bank Canada's prime
rate per annum.
Advance of the Loan is subject to satisfaction of a number of
conditions, including:
(a) Written confirmation of a final determination by the
Supreme Court of Canada, or refusal of leave to appeal,
permitting the issuance of the New Notes;
(b) A release by Redcorp of all claims against HSBC Bank
Canada in relation to Redcorp's acquisition of the
Investments; and
(c) Confirmation that Redcorp has obtained all necessary
approvals and consents required under the Note Indenture
dated as of July 10, 2007, between Redcorp and CIBC
Mellon, as note trustee, with respect to the Loan and
the execution and delivery of the security in favor of
HSBC Bank Canada.
The $85 million Facility, on the satisfaction of the conditions
precedent, will replace the previous $64 million loan facility
from HSBC Bank Canada, announced on April 21, 2008, and provide
Redcorp with access to an additional $21 million of funding.
About Redcorp Ventures Ltd.
Headquartered in Vancouver, Canada, Redcorp Ventures Ltd. --
http://www.redcorp-ventures.com/and http://www.redfern.bc.ca/--
is a mineral exploration and development company with active
projects in British Columbia, Canada and Portugal.
About ABCP
Apollo Trust, Apsley Trust, Aria Trust, Aurora Trust, Comet Trust,
Devonshire Trust, Encore Trust, Gemini Trust, Ironstone Trust,
MMAI-1 Trust, Newshore Canadian Trust, Opus Trust, Planet Trust,
Rocket Trust, Selkirk Funding Trust, Silverstone Trust, Slate
Trust, Structured Asset Trust, Structured Investment Trust III,
Symphony Trust, Whitehall Trust are entities based in Canada that
issue securities called third-party structured finance asset-
backed commercial paper. As of Sept. 14, 2007, these 21 Canadian
Trusts had approximately C$33 billion of outstanding ABCP.
As reported by the Troubled Company Reporter on March 18, 2008,
Justice Colin Campbell of the Ontario Superior Court of Justice
granted an application filed on March 17 by The Pan-Canadian
Investors Committee for Third-Party Structured ABCP under the
provisions of the Companies' Creditors Arrangement Act.
The Committee asked the Court to call a meeting of ABCP
noteholders to vote on a plan to restructure 20 trusts affecting
C$32 billion of notes. The trusts were covered by the Montreal
Accord, an agreement entered by international banks and
institutional investors on Aug. 16, 2007 to work out a solution
for the ABCP crisis in Canada. Justice Campbell appointed Ernst &
Young, Inc., as the Applicants' monitor, on March 17, 2008.
(Canadian ABCP Trusts Bankruptcy News, Issue No. 15; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000)
CANADIAN TRUST: Noteholders Appeal Plan Order to High Court
-----------------------------------------------------------
About 21 noteholders asked the Supreme Court of Canada on
Sept. 2, 2008, to grant them leave to take an appeal from a
judgment of the Court of Appeal for Ontario dated Aug. 18, 2008.
The Court of Appeal upheld an order issued by the Superior Court
of Justice (Commercial List) for the Province of Ontario,
sanctioning the Plan of Compromise & Arrangement proposed by the
Pan-Canadian Investors Committee for Third Party Structured Asset
Backed Commercial Paper.
The Appellants are The Jean Coutu Group (PJC) Inc. -- together
with Giro Inc., Air Jazz LP, Domtar Inc., Domtar Pulp
and Paper Products Inc., Societe generale de financement du
Quebec, R.G.R. Sportswear Inc., 131519 Canada Inc.,
Petrifond Foundation Company Limited, Petrifond Foundation
Midwest Limited, Services Hypothecaires la Patrimoniale Inc.,
Tecsys Inc., Vibrosystm Inc. -- Jura Energy Corporation; Ivanhoe
Mines Ltd.; Webtech Wireless Inc.; Wynn Capital Corporation Inc.;
Sabre Energy Ltd.; Hy Bloom Inc.; and Cardacian Mortgage Services
Inc.
Supreme Court Justices Louis LeBel, Morris Fish, and Louise
Charron will consider whether the Appellants may appeal to the
high court, the National Post reported.
All of the Appellants pointed out that the Ontario Court of
Appeal's decision is in direct conflict with a decision issued by
the Quebec Court of Appeal in Michaud v. Steinberg, [1993] RJ.Q.
1684, 1993 CarswellQue 2055, Quebec Court of Appeal, which stated
that immunity was illegal. In allowing the ABCP restructuring to
go ahead, the Ontario Court of Appeal held that the Quebec Court
was wrong.
The Appellants, according to Reuters, own more than C$600 million
of Affected ABCP and have various reasons for filing the Supreme
Court Appeal:
A. Jean Coutu, et al.
Among other things, Jean Coutu, et al., asked the Supreme Court
to review whether:
-- the CCAA provides Canadian courts with jurisdiction to
confiscate substantive civil rights which creditors have
against solvent third parties, and which are independent
of their claims against the insolvent debtor? In the
affirmative, what rules govern the exercise of the
jurisdiction?
-- the Constitution Act, specifically Sections 91(21) and
92(13), allow for an interpretation of the CCAA
validating broad releases extinguishing rights of
creditors against solvent third parties?
-- the Plan is fair and reasonable with regard to Ironstone
Trust Noteholders and Air Jazz, given the total absence
of any proof of benefit for the Noteholders under the
Plan?
It is imperative that the Supreme Court clarify the law
concerning these important issues because of their importance and
the very significant impact their resolution will have on the
Canadian economy, Jean Coutu, et al., stated. This presents an
opportunity for the Supreme Court to put an end to conflicting
jurisprudence originating from competing decisions of provincial
appellate courts, particularly in light of the Ontario Court of
Appeal's Judgment which contains palpable and overriding errors of
law and facts that warrant intervention, the Appellants said.
B. Ivanhoe Mines
Ivanhoe Mines wants the Supreme Court to determine the same
contentions as pointed out by Jean Coutu, et al. Also, Ivanhoe
Mines asks the Supreme Court to specifically review whether a
"plan that offends public policy [can] be sanctioned by Canadian
courts as fair and reasonable."
Ivanhoe Mines complained that the ABCP Plan confiscated its
"rights to property," referring to a possible lawsuit it may file
against Bank of Montreal and HSBC Bank of Canada, the Financial
Post reported. Bank of Montreal and HSBC Bank which sold Ivanhoe
Mines the commercial paper.
C. Webtech Wireless
Webtech Wireless and Wynn Capital ask the Supreme Court to review
whether the Ontario Court of Appeal erred in holding that the CCAA
permits the Applicants to expropriate the claims of WebTech and
WCCI against them, including claims based on
misrepresentations, whether negligent or fraudulent.
Webtech Wireless and Wynn Capital insisted that (i) the CCAA does
not permit compromises of claims of creditors against solvent
third parties based on direct misrepresentations to those
creditors, and (ii) no attempt was made, and no evidence exists,
to measure the relative contributions of the parties to, and hence
the fairness and reasonableness of, the restructuring plan in
issue.
D. Hy Bloom
Hy Bloom and Cardacian Mortgage echoed the rest of the
Appellants' statements. The decision of the Ontario Court of
Appeal will create a dichotomy in bankruptcy and insolvency law
and practice between, at a minimum, the provinces of Quebec and
Ontario; lead to acute uncertainty on a national scale as to the
security of commercial transaction and relationships; and open the
door to abuse of the CCAA mechanism designed solely for insolvent
debtor companies, Hy Bloom and Cardacian Mortgage
argued.
E. Jura Energy and Sabre Energy
Jura Energy and Sabre Energy take the same position as Ivanhoe
Mines and Jean Coutu, et al.
Sabre Energy stated that the decisions of the lower courts
conflict with the Quebec Court of Appeal, "which remains good and
binding law in the province of Quebec." Canadians should not be
subject to vastly different rights pursuant to a federal statute,
depending upon where a debtor company is headquartered, Sabre
Energy maintained.
About the ABCP Trusts
Apollo Trust, Apsley Trust, Aria Trust, Aurora Trust, Comet Trust,
Devonshire Trust, Encore Trust, Gemini Trust, Ironstone Trust,
MMAI-1 Trust, Newshore Canadian Trust, Opus Trust, Planet Trust,
Rocket Trust, Selkirk Funding Trust, Silverstone Trust, Slate
Trust, Structured Asset Trust, Structured Investment Trust III,
Symphony Trust, Whitehall Trust are entities based in Canada that
issue securities called third-party structured finance asset-
backed commercial paper. As of Sept. 14, 2007, these 21 Canadian
Trusts had approximately C$33 billion of outstanding ABCP.
As reported by the Troubled Company Reporter on March 18, 2008,
Justice Colin Campbell of the Ontario Superior Court of Justice
granted an application filed on March 17 by The Pan-Canadian
Investors Committee for Third-Party Structured ABCP under the
provisions of the Companies' Creditors Arrangement Act.
The Committee asked the Court to call a meeting of ABCP
noteholders to vote on a plan to restructure 20 trusts affecting
C$32 billion of notes. The trusts were covered by the Montreal
Accord, an agreement entered by international banks and
institutional investors on Aug. 16, 2007 to work out a solution
for the ABCP crisis in Canada. Justice Campbell appointed Ernst &
Young, Inc., as the Applicants' monitor, on March 17, 2008.
(Canadian ABCP Trusts Bankruptcy News, Issue No. 15; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000)
CANADIAN TRUST: Panel Says Appeal Unimportant for Supreme Court
---------------------------------------------------------------
Investors represented on the Pan-Canadian Investors Committee for
Third-Party Structured Asset-Backed Commercial Paper do not agree
that the points that ABCP noteholders seek to raise in an appeal
to defeat or obstruct the ABCP restructuring are of sufficient
importance to warrant the Supreme Court of Canada's attention.
As reported in today's Troubled Company Reporter, about 21
noteholders asked the Supreme Court for leave to take an appeal
from a judgment of the Court of Appeal for Ontario dated Aug. 18,
2008. The Court of Appeal upheld an order issued by the Superior
Court of Justice (Commercial List) for the Province of Ontario,
sanctioning the Plan of Compromise & Arrangement proposed by the
Applicants.
Should the Supreme Court decide to grant the Appellants leave to
appeal, the Pan-Canadian Committee asks the Supreme Court to
proceed on an agreed-upon, accelerated timetable. The Pan-
Canadian Committee urges the Supreme Court to set September 22 as
the hearing date to consider the Appeal.
The Applicants agree with the Noteholders that the restructuring,
if successful, is important to Noteholders and will have important
effects for Canadian capital markets.
However, the Applicants remind the Appellants that recent
decisions of the Supreme Court completely settle the proper
principles of statutory interpretation to be applied to the
question of whether the CCAA permits a plan of compromise and
arrangement to include releases of claims against third parties,
where those claims are related to the restructuring. The Court of
Appeal followed those principles in determining that it does, the
Applicants maintain. The Applicants also point out that in
erroneously suggesting other principles should have been used, the
Appellants raised no issue of national importance.
In asking the Supreme Court to review the question of whether the
Plan including the releases is fair and reasonable, the
Appellants are simply asking the Supreme Court to review an
exercise of discretion by Mr. Justice Campbell which was
appropriately entitled to deference and was upheld by the Court
of Appeal, the Applicants elaborate. "This is a fact-specific
inquiry which raises no issues of national importance and is of
no precedent value," the Applicants say.
The Applicants argue that in Michaud v. Steinberg, the case was
decided by the Quebec Court of Appeal without reference to a
seminal 1976 decision of the Supreme Court. Steinberg pre-dates
recent leading cases on statutory interpretation, the Applicants
aver. Third party releases have been commonly found in CCAA plans
and have been approved by courts of various provinces over the
last eight years, they point out. The principles that lead to
this conclusion are grounded in jurisprudence settled by the
Supreme Court and applied in this case by the Ontario Court of
Appeal, the Applicants note. Accordingly, there is no remaining
uncertainty in the law which needs to be settled, the Applicants
maintain.
The Applicants complain to the extent that the Appellants seek to
mischaracterize the Noteholders' compromise, the quid pro quo of
the Plan, as "confiscation." The Applicants reiterate that they,
together with 96% of affected Noteholders who support the Plan are
making the same compromise. "They are all giving up their rights
to sue in order to obtain the benefits of the Plan. The majority
is not confiscating anything from the reluctant few. They will all
suffer the same prejudice -- the fact that restructured notes
will likely trade at a discount and no Noteholder will be able to
sue parties referred to in the Plan to try to make up the
difference."
The Applicants aver that the interpretation arrived at by the
Ontario Court of Appeal was consistent with the purpose of the
CCAA. "The ability to include third party releases in a
compromise or arrangement encourages third parties to contribute
to restructurings to make them possible, and enhances the ability
to have a comprehensive resolution with the debtor by encompassing
the resolution of related claims by creditors against third
parties including those who may claim-over against the debtor."
Constitutional law issues cannot be raised, the Applicants add.
They emphasize that the Court of Appeal has stated that if the
CCAA "encompasses the authority to sanction a plan containing
third party releases . . . the provisions of the CCAA, as valid
federal legislation, are paramount over provincial legislation".
One of the Appellants' contention is that the Applicants bought
the votes of certain Noteholders to reflect that 96% the
Noteholders approved the Plan. The Pan-Canadian Committee denies
the Appellants' assertions. "These challenges to findings of fact
do not raise issues of national importance," the Applicants said.
The Ad Hoc Committee of Holders of Non-Bank Sponsored Asset-
Backed Commercial Paper and the Ad Hoc Committee of Retail
Noteholders support the Applicants' arguments.
Asset Providers Also Challenge Appeal
Asset Providers Bank of America, N.A.; Citibank, N.A.; Citibank
Canada, in its capacity as credit derivative swap counterparty;
Deutsche Bank AG; HSBC Bank Canada; HSBC Bank USA, National
Association; Merrill Lynch International; Merrill Lynch Capital
Services, Inc.; Swiss Re Financial Products Corporation; and UBS
AG complain that the Appellants have not accurately summarized or
dealt with:
-- the evidentiary record before the CCAA court;
-- the arguments of those supporting the Plan; or
-- the actual decision of the Ontario Court of Appeal,
including its analysis and the cases it considered.
The Asset Providers are the secured creditors of the Applicants.
"The criticism of the CCAA Judge and the [Ontario Court of
Appeal] for use of the term Third Party ABCP market is unfair,"
the Asset Providers contend. "That term is a compendious short
form for the problem to be solved - the multi-party and
interrelated contracts that exist between the Issuer Trustee
debtors, Noteholders, Liquidity Providers, Asset Providers,
Sponsors, Conduits, ABCP Dealers, Satellite Trusts, Indenture
Trustees and others - in which contractual market the Issuer
Trustee debtors occupy a central place."
"The reality of the complexity of the relationships that exist
with the debtors that need to be addressed in the contractual
alternative is the correct starting point for designing the Plan
and for analyzing it," the Asset Providers maintain.
The Asset Providers note that the Appellants have hypothesized a
potential for abuse -- that an interpretation of the CCAA that
permits an arrangement to include third party releases would allow
a Plan to be constructed artificially involving an
insolvent debtor but really designed to do something else for
solvent persons. "Th[at] argument is not tenable," the Asset
Providers dispute. "An attempt at artificiality would not pass
the 'fair and reasonable' review by the supervising judge on the
particular facts of any case."
All Noteholders are treated equally in the Plan qua Noteholders,
the Asset Providers assert. The Plan, they add, is the option
designed to fix the problems of the debtors that impact all the
participants in the Third Party ABCP Market.
In contrast, the Asset Providers argue, the real complaint of the
Appellants is, as it always is, essentially that they want a
better deal for themselves.
The Asset Providers support all of the arguments presented by the
Applicants.
Canadian Banks Support Applicants
Canadian Banks Bank of Montreal, Canadian Imperial Bank of
Commerce, Royal Bank of Canada, the Bank of Nova Scotia, and The
Toronto-Dominion Bank noted that Mr. Justice Campbell and the
Court of Appeal panel composed of Honourable Justices Robert A.
Blair, J.I. Laskin, and E.A. Cronk have extensive expertise and
experience in CCAA matters.
The Canadian Banks reiterate that they will make an essential and
voluntary contribution to the ABCP restructuring. Specifically,
they will contribute financing by participating as lenders in a
marginal funding facility, which is a critical element of the
Plan. The MF Facility provides additional collateral needed to
facilitate the plan.
The Canadian Banks explain that if they do not provide the MF
Facility, the ABCP Plan would not be viable and the restructuring
of the ABCP market would not be possible.
The Canadian Banks say that, as Mr. Justice Blair has noted, the
financing they proposed through the MF Facility is at below-market
rates. In exchange for the voluntary contribution, the Plan
provides for the release of the Canadian Banks from potential
claims in respect of the ABCP market. "The other parties who
would be released have similarly made essential contributions to
the Plan," the Canadian Banks aver.
The Canadian Banks contend that the Appellants' issues do not
warrant a Supreme Court Appeal. The Canadian Banks support the
position of the Applicants.
Supreme Court Appeal is Warranted,
Appellants Maintain
Representing Jean Coutu, et al., James A. Wood, Esq., at Woods,
LLP, in Montreal, Quebec, insists that the Supreme Court Appeal
raises issues of public and national importance, which will
impact on many Canadian companies, individuals, debtors,
creditors, and investors, as well as numerous other participants
in the Canadian investment and business community.
Mr. Woods argues that not only are the issues concerning the
Supreme Court Appeal important, but the scope of the challenge to
the Plan, with aggrieved Appellants coming from, among other
provinces, Nova Scotia (Jazz Air), Quebec (Jean Coutu, et al.),
Alberta (Sabre Energy and Jura Energy) and British Columbia
(Ivanhoe Mines, Webtech Wireless and Wynn Capital) and
represented by law firms from across the country, is an
unequivocal demonstration of the national importance of the
appropriate resolution of the issues on Appeal. "These issues
cannot be left to the sole determination of the Ontario courts
basing themselves on a self-attributed unlimited jurisdiction
under the CCAA," Mr. Woods emphasizes.
With respect to the constitutional aspects of the case, Mr. Woods
says, the Applicants seem to have misunderstood the Appellants'
argument which relies on those principles as an interpretive guide
-- and not an effort to strike down some provision of the CCAA.
Mr. Woods also notes that the Applicants make no attempt to deal
with the unchallenged evidence of Jazz and the Iron Trust
Noteholders that the Plan provides no benefit, while requiring
them to forfeit their claims against solvent Third Parties.
The Pan-Canadian Committee's statement that Appellants are not
suffering confiscation of their rights since the Appellants are
simply making the same compromise as the other 96% of Noteholders
with respect to the release of their claims against solvent Third
Parties is patently wrong, Mr. Woods contends.
In contrast to the claims all Noteholders have against the
Conduits which have some commonality, Mr. Woods says, the claims
the Appellants have against solvent Third Parties are unique to
them and depend on the specific circumstances surrounding their
relationships with the Third Parties, including the nature and
content of the representations made, contractual and fiduciary
obligations of ABCP Dealers, gross negligence, fraud and the like.
"The extent of the Appellants' Third Party claims, indeed their
very existence, varies from one Noteholder to another," Mr. Woods
clarifies.
Restructuring Delay
In Toronto, Federal Finance Minister Jim Flaherty expressed his
concerns about the delays on the ABCP restructuring, Tara Perkins
at ReportonBusiness.com disclosed. "Delays are always a concern
because the investors, I'm sure, want to have their assets become
liquid again," Mr. Flaherty told Ms. Perkins.
According to the report, Mr. Flaherty commended Purdy Crawford,
chairman of the Pan-Canadian Committee, for "leading the way on a
plan that did not require public funds to resolve the issue."
Accountants across Canada are awaiting the Supreme Court's
decision on whether to allow the Appellants to appeal, Ken Mark
of The Bottom Line related in a separate report.
"With the likelihood of further legal proceedings, auditors will
have to soldier on trying to use appropriate methods of valuating
such investments as they have in the past year," says Peter
Martin, a Toronto-based director of accounting standards for the
Canadian Institute of Chartered Accountants, told The Bottom Line.
"It has been a difficult time establishing fair value for ABCP
investments without a functioning market setting prices. What they
need to do is to continue applying the existing standards in the
CICA handbook."
Meanwhile, Ontario-based independent financial analyst Diane
Urquhart told Mr. Mark that had the Canadian banks originally
taken back the ABCP investments they sold there would never had
been a massive restructuring problem. "Based on my research,
they would have taken as much as a 25 per cent hit to their
balance sheets," Mr. Mark quoted Ms. Urquhart, as saying. "But
they still would have been able to handle it. They all had the
balance sheet capacity to accept substantial losses. No bank
would have needed to be bailed out."
About the ABCP Trusts
Apollo Trust, Apsley Trust, Aria Trust, Aurora Trust, Comet Trust,
Devonshire Trust, Encore Trust, Gemini Trust, Ironstone Trust,
MMAI-1 Trust, Newshore Canadian Trust, Opus Trust, Planet Trust,
Rocket Trust, Selkirk Funding Trust, Silverstone Trust, Slate
Trust, Structured Asset Trust, Structured Investment Trust III,
Symphony Trust, Whitehall Trust are entities based in Canada that
issue securities called third-party structured finance asset-
backed commercial paper. As of Sept. 14, 2007, these 21 Canadian
Trusts had approximately C$33 billion of outstanding ABCP.
As reported by the Troubled Company Reporter on March 18, 2008,
Justice Colin Campbell of the Ontario Superior Court of Justice
granted an application filed on March 17 by The Pan-Canadian
Investors Committee for Third-Party Structured ABCP under the
provisions of the Companies' Creditors Arrangement Act. The
Committee asked the Court to call a meeting of ABCP noteholders to
vote on a plan to restructure 20 trusts affecting
C$32 billion of notes. The trusts were covered by the Montreal
Accord, an agreement entered by international banks and
institutional investors on Aug. 16, 2007 to work out a solution
for the ABCP crisis in Canada. Justice Campbell appointed Ernst &
Young, Inc., as the Applicants' monitor, on March 17, 2008.
The Ontario Superior Court of Justice sanctioned the Second
Amended Plan of Compromise and Arrangement proposed by the
Investors represented the Pan-Canadian Investors Committee for
Third Party Structured Asset Backed Commercial Paper on June 5,
2008.
(Canadian ABCP Trusts Bankruptcy News, Issue No. 15; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000)
CANADIAN TRUST: Court Extends CCAA Protection Until Sept. 30
------------------------------------------------------------
Investors represented the Pan-Canadian Investors Committee for
Third Party Structured Asset Backed Commercial Paper sought and
obtained an order from the Superior Court of Justice (Commercial
List) for the Province of Ontario, extending the stay protection
from certain creditors under the Companies' Creditors Arrangement
Act, R.S.C. 1985, c. C-36, as amended.
Pursuant to the Stay Extension Order, the Honorable Justice
Colin Campbell ruled that until and including Sept. 30, 2008, no
proceeding or enforcement process in any court or tribunal will be
commenced or continued against the CCAA Parties, Ernst & Young
Inc., as the Court-appointed Monitor, or affecting the CCAA
Parties' business or property except with leave of the CCAA Court.
All proceedings currently under way against or in respect of the
CCAA Parties or their representatives are stayed and suspended
pending further Court order.
Ernst & Young Inc., as monitor of the Applicants' CCAA
proceedings, supports the Stay extension.
Apollo Trust, Apsley Trust, Aria Trust, Aurora Trust, Comet Trust,
Devonshire Trust, Encore Trust, Gemini Trust, Ironstone Trust,
MMAI-1 Trust, Newshore Canadian Trust, Opus Trust, Planet Trust,
Rocket Trust, Selkirk Funding Trust, Silverstone Trust, Slate
Trust, Structured Asset Trust, Structured Investment Trust III,
Symphony Trust, Whitehall Trust are entities based in Canada that
issue securities called third-party structured finance asset-
backed commercial paper. As of Sept. 14, 2007, these 21 Canadian
Trusts had approximately C$33 billion of outstanding ABCP.
As reported by the Troubled Company Reporter on March 18, 2008,
Justice Colin Campbell of the Ontario Superior Court of Justice
granted an application filed on March 17 by The Pan-Canadian
Investors Committee for Third-Party Structured ABCP under the
provisions of the Companies' Creditors Arrangement Act. The
Committee asked the Court to call a meeting of ABCP noteholders to
vote on a plan to restructure 20 trusts affecting C$32 billion of
notes. The trusts were covered by the Montreal Accord, an
agreement entered by international banks and institutional
investors on Aug. 16, 2007 to work out a solution for the ABCP
crisis in Canada. Justice Campbell appointed Ernst & Young, Inc.,
as the Applicants' monitor, on March 17, 2008.
The Ontario Superior Court of Justice sanctioned the Second
Amended Plan of Compromise and Arrangement proposed by the
Investors represented the Pan-Canadian Investors Committee for
Third Party Structured Asset Backed Commercial Paper on June 5,
2008.
(Canadian ABCP Trusts Bankruptcy News, Issue No. 15; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000)
CANADIAN TRUST: Plan Implementation Extended to October 31
----------------------------------------------------------
The Ontario Superior Court of Justice sanctioned the Second
Amended Plan of Compromise and Arrangement proposed by the
Investors represented the Pan-Canadian Investors Committee for
Third Party Structured Asset Backed Commercial Paper on June 5,
2008.
Pursuant to the Plan, if the scheduled implementation date for
the Plan has not occurred on or before 60 days following the date
of the Sanction Order, the Plan will automatically terminate and
would be of no further force and effect, unless the Pan-Canadian
Committee, Ernst & Young, Inc., as Monitor of the Applicants' CCAA
proceedings and certain Plan participants have agreed, in writing,
to extend the Termination Date.
The Plan Implementation Date had previously been extended to
Aug. 29, 2008.
The Plan Parties now agree to extend the Plan Implementation Date
through October 31, 2008.
The Pan-Canadian Committee Members are:
(1) John Crichton, President & Chief Executive Officer of
NAV CANADA,
(2) Alban D'Amours, President and Chief Executive Officer of
Desjardins Group,
(3) Gordon J. Fyfe, President and Chief Executive Officer of
PSP Investments,
(4) Doug Greaves, Vice President Pension Fund and Chief
Investment Officer of Canada Post,
(5) Rowland Kelly, Interim CEO of Credit Union Central of
British Columbia, representing Credit Union Central of
Canada,
(6) Karen Kinsley, President and Chief Executive Officer of
Canada Mortgage and Housing Corporation,
(7) Mark Maybank, President & Chief Operating Officer of
Canaccord Capital Corporation (Canadian Operating
Subsidiary),
(8) Dave Mowat, President and Chief Executive Officer of ATB
Financial,
(9) Ricardo Pascoe, Co-President and Co-Chief Executive
Officer of National Bank Financial Group,
(10) David G. Patterson, Chair and Chief Executive Officer of
Northwater Capital Management,
(11) Henri-Paul Rousseau, President and Chief Executive
Officer of Caisse de Depot et placement du Quebec, and
(12) Jim Scopick, President and Chief Executive Officer of
Credit Union Central Alberta.
The rest of the Plan Participants are:
(a) the ABCP Trusts -- Apollo Trust, Apsley Trust, Aria
Trust, Aurora Trust, Comet Trust, Encore Trust, Gemini
Trust, Ironstone Trust, MMAI-1 Trust, Newshore Canadian
Trust, Opus Trust, Planet Trust, Rocket Trust, Selkirk
Funding Trust, Silverstone Trust, Slate Trust,
Structured Asset Trust, Structured Investment Trust III,
Symphony Trust and Whitehall Trust;
(b) the ABCP Issuer Trustees -- 4446372 Canada Inc., 6932819
Canada Inc., Metcalfe & Mansfield Alternative
Investments II Corp., Metcalfe & Mansfield Alternative
Investments III Corp., Metcalfe & Mansfield Alternative
Investments V Corp., Metcalfe & Mansfield Alternative
Investments XI Corp. and. Metcalfe & Mansfield
Alternative Investments XII Corp; and
(c) the Asset Providers -- Bank of America, N.A.; Citibank,
N.A.; Citibank Canada; Deutsche Bank AG; HSBC Bank
Canada; HSBC Bank USA, N.A.; Merrill Lynch
International; Merrill Lynch Capital Services, Inc.;
Swiss Re Financial Products Corporation; and UBS AG.
About the ABCP Trusts
Apollo Trust, Apsley Trust, Aria Trust, Aurora Trust, Comet Trust,
Devonshire Trust, Encore Trust, Gemini Trust, Ironstone Trust,
MMAI-1 Trust, Newshore Canadian Trust, Opus Trust, Planet Trust,
Rocket Trust, Selkirk Funding Trust, Silverstone Trust, Slate
Trust, Structured Asset Trust, Structured Investment Trust III,
Symphony Trust, Whitehall Trust are entities based in Canada that
issue securities called third-party structured finance asset-
backed commercial paper. As of Sept. 14, 2007, these 21 Canadian
Trusts had approximately C$33 billion of outstanding ABCP.
As reported by the Troubled Company Reporter on March 18, 2008,
Justice Colin Campbell of the Ontario Superior Court of Justice
granted an application filed on March 17 by The Pan-Canadian
Investors Committee for Third-Party Structured ABCP under the
provisions of the Companies' Creditors Arrangement Act. The
Committee asked the Court to call a meeting of ABCP noteholders to
vote on a plan to restructure 20 trusts affecting
C$32 billion of notes. The trusts were covered by the Montreal
Accord, an agreement entered by international banks and
institutional investors on Aug. 16, 2007 to work out a solution
for the ABCP crisis in Canada. Justice Campbell appointed Ernst &
Young, Inc., as the Applicants' monitor, on March 17, 2008.
The Ontario Superior Court of Justice sanctioned the Second
Amended Plan of Compromise and Arrangement proposed by the
Investors represented the Pan-Canadian Investors Committee for
Third Party Structured Asset Backed Commercial Paper on June 5,
2008.
(Canadian ABCP Trusts Bankruptcy News, Issue No. 15; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000)
CANADIAN TRUST: Court Extends CCAA Protection Until Sept. 30
------------------------------------------------------------
Investors represented the Pan-Canadian Investors Committee for
Third Party Structured Asset Backed Commercial Paper sought and
obtained an order from the Superior Court of Justice (Commercial
List) for the Province of Ontario, extending the stay protection
from certain creditors under the Companies' Creditors Arrangement
Act, R.S.C. 1985, c. C-36, as amended.
Pursuant to the Stay Extension Order, the Honorable Justice
Colin Campbell ruled that until and including Sept. 30, 2008, no
proceeding or enforcement process in any court or tribunal will be
commenced or continued against the CCAA Parties, Ernst & Young
Inc., as the Court-appointed Monitor, or affecting the CCAA
Parties' business or property except with leave of the CCAA Court.
All proceedings currently under way against or in respect of the
CCAA Parties or their representatives are stayed and suspended
pending further Court order.
Ernst & Young Inc., as monitor of the Applicants' CCAA
proceedings, supports the Stay extension.
Apollo Trust, Apsley Trust, Aria Trust, Aurora Trust, Comet Trust,
Devonshire Trust, Encore Trust, Gemini Trust, Ironstone Trust,
MMAI-1 Trust, Newshore Canadian Trust, Opus Trust, Planet Trust,
Rocket Trust, Selkirk Funding Trust, Silverstone Trust, Slate
Trust, Structured Asset Trust, Structured Investment Trust III,
Symphony Trust, Whitehall Trust are entities based in Canada that
issue securities called third-party structured finance asset-
backed commercial paper. As of Sept. 14, 2007, these 21 Canadian
Trusts had approximately C$33 billion of outstanding ABCP.
As reported by the Troubled Company Reporter on March 18, 2008,
Justice Colin Campbell of the Ontario Superior Court of Justice
granted an application filed on March 17 by The Pan-Canadian
Investors Committee for Third-Party Structured ABCP under the
provisions of the Companies' Creditors Arrangement Act. The
Committee asked the Court to call a meeting of ABCP noteholders to
vote on a plan to restructure 20 trusts affecting C$32 billion of
notes. The trusts were covered by the Montreal Accord, an
agreement entered by international banks and institutional
investors on Aug. 16, 2007 to work out a solution for the ABCP
crisis in Canada. Justice Campbell appointed Ernst & Young, Inc.,
as the Applicants' monitor, on March 17, 2008.
The Ontario Superior Court of Justice sanctioned the Second
Amended Plan of Compromise and Arrangement proposed by the
Investors represented the Pan-Canadian Investors Committee for
Third Party Structured Asset Backed Commercial Paper on June 5,
2008.
(Canadian ABCP Trusts Bankruptcy News, Issue No. 15; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000)
CANNERY CASINO: Moody's Affirms Corporate Family Rating at 'B2'
---------------------------------------------------------------
Moody's Investors Service affirmed Cannery Casino Resorts, LLC's
B2 corporate family rating and upgraded the senior first lien bank
loans to B1 (LGD 3, 42%) from B2 (LGD 3, 44%). The rating outlook
remains positive. The upgrade of the senior first lien bank
facilities reflects a slight change in the company's capital
structure, namely the addition of senior unsecured obligations
including the company's pension obligation and new equipment
financing pursuant to the application of Moody's Loss Given
default methodology.
The rating affirmation reflects completion of the redevelopment of
the Cannery Eastside casino located on the Boulder Strip in Las
Vegas and solid operating performance at the PA Meadows casino
located in western Pennsylvania. The pending acquisition of
Cannery by Crown Limited appears on track to close over the next
quarter.
Ratings upgraded:
-- Senior first lien term loan to B1 (LGD 3, 42%) from B2
(LGD 3, 44%)
-- Senior first lien delayed draw term loan to B1 (LGD 3, 42%)
from B2 (LGD 3, 44%)
-- Senior first lien revolving credit facility to B1
(LGD 3, 42%) from B2 (LGD 3, 44%)
Ratings affirmed and assessments updated:
-- Corporate family rating at B2
-- Probability of default rating at B2
-- Second Lien term loan at Caa1, (LGD 6, 92%) from Caa1,
(LGD 6, 93%)
Cannery Casino Resorts, LLC is a privately held gaming company
owned by an entity managed by Oaktree Capital Management, LLC
(42%) and Millennium Gaming, Inc. (58%). Through its wholly owned
subsidiary, PA Meadows, LLC, CCR is constructing a temporary
casino in western Pennsylvania, and also owns and operates three
casinos in Las Vegas, Nevada. CCR is redeveloping its Nevada
Palace casino (to be renamed East Side Cannery) located on the
Boulder Strip in Las Vegas, Nevada.
CANNERY CASINO: Moody's Changes Loan Ratings from B2 to B1
----------------------------------------------------------
Moody's Investors Service has revised debt ratings for the bank
credit facilities of two companies - Sensus Metering Systems and
Cannery Casino Resorts. The revisions follow a review of the
rating impact of implementing the current version of Moody's Loss
Given Default template.
Since the introduction of its LGD methodology for rating non-
financial speculative-grade corporate obligors in the U.S. and
Canada in September 2006, Moody's has employed an LGD template as
an additional input to its broader rating methodology. The
template, which provides analysts with an indication of the most
likely ratings for debt instruments, has been refined several
times since its introduction.
In reviewing the impact of converting LGD templates to the current
version, it was determined that ratings for some issuers had not
been reevaluated using the new version of the LGD template. Use
of the new version suggested that the rating committee should
consider changes to the ratings of Sensus and Cannery. Rating
committees subsequently revised these ratings:
Sensus Metering Systems Inc.
* Senior Secured Revolver -- to Ba2 (LGD2, 18%) from Ba3
(LGD2, 23%)
* Senior Secured Term Loan B -- to Ba2 (LGD2, 18%) from Ba3
(LGD2, 23%)
Sensus Metering Systems (Luxco 2) S.a.r.l.
* Senior Secured Revolver -- to Ba2 (LGD2, 18%) from Ba3
(LGD2, 23%)
* Senior Secured Term Loan B -- to Ba2 (LGD2, 18%) from Ba3
(LGD2, 23%)
Cannery Casino Resorts, LLC
* Senior Secured Revolver -- to B1 (LGD3, 42%) from B2
(LGD3, 44%)
* Senior Secured Term Loan B -- to B1 (LGD3, 42%) from B2
(LGD3, 44%)
* Senior Secured Delayed Draw Term Loan -- to B1 (LGD3, 42%)
from B2 (LGD3, 44%)
* All other ratings for the affected companies remain unchanged.
CAPITAL GROWTH: Posts $7.2MM Net Loss in Qtr Ended June 30
----------------------------------------------------------
Capital Growth Systems, Inc., posted a $7.2 million net loss on
$8.7 million in revenues for the three months ended June 30, 2008.
The company said revenues increased 107% from $4.2 million for the
same period in 2007. This increase is primarily due to the
recognition of revenue in the second quarter of 2008 in connection
with a significant new contract in its Optimization Solutions line
of business.
The company disclosed $37.7 million in total assets, $59.1 million
in total liabilities, and $21.3 million in shareholders' deficit
as of June 30, 2008.
A full-text copy of the company's Form 10-Q report for the period
ended June 30, 2008, is available at no charge at:
http://ResearchArchives.com/t/s?322b
About Capital Growth
Based in Chicago, Capital Growth Systems Inc. (OTC BB: CGSY) doing
business as Global Capacity Group Inc., delivers telecom
integration services to systems integrators, telecommunications
companies, and enterprise customers worldwide. It provides an
integrated supply chain management system that streamlines and
accelerates the process of designing, building, and managing
customized communications networks. The company also provides
connectivity services for network integrators who bundle
telecommunication solutions to enterprise customers; offers global
pricing and quotation software and management services for data
communications; and assists customers to reduce connectivity costs
and attain understanding and control of their deployed
communications network.
Going Concern Doubt
Plante & Moran, PLLC, in Elgin, Ill., expressed substantial doubt
about Capital Growth Systems Inc.'s ability to continue as a going
concern after auditing the company's consolidated financial
statements for the year ended Dec. 31, 2007. The auditing firm
pointed to the company's recurring losses, negative cash flows
from operations and net working capital deficiency.
The company has incurred net losses from continuing operations of
$3,653,000 and $6,965,000 for the three months ended
March 31, 2008, and 2007, respectively.
CAPITAL GROWTH: Global Capacity Unit Sells NexVu Technologies
-------------------------------------------------------------
Capital Growth Systems, Inc. filed with the Securities and
Exchange Commission amendments to its previously filed:
-- Annual Report (Form 10-KSB) for the year ended
December 31, 2007, a copy of which is available for
free at:
http://ResearchArchives.com/t/s?322d
-- Quarterly Report (Form 10-QSB) for the quarter ended
March 31, 2008, a copy of which is available for free at:
http://ResearchArchives.com/t/s?322e
The Amendments reflect the restatements for each interim period.
The restatements reflect reclassifications between liabilities and
equity as well as between interest expense and gain/loss on
warrants and derivatives.
Capital Growth filed a Registration Statement on Form S-1 on
April 29, 2008, that incorporated its most recent financial
statements. The filing was made in connection with certain
contractual obligations arising from a certain Securities Purchase
Agreement. Jim McDevitt, the Company's Chief Financial Officer,
related in July 2008 that the Company received comment letters
dated May 23, 2008, from the staff of the U.S. Securities and
Exchange Commission on its Form 10-KSB for the year ended December
31, 2007, its Form 10-QSB for the period ended March 31, 2008, and
its Form S-1. The comment letters requested additional information
and enhanced disclosures and alerted the Company to possible
incorrect applications of certain accounting principles.
On June 30, 2008, the audit committee of the Company concluded
that, due to the accounting treatment applied in the consolidated
financial statements for the third quarter of calendar 2006, the
financial statements should be restated. Each interim and annual
period thereafter -- i.e., the financial statements from December
31, 2007 and 2006 as well as the quarters ended March 31, June 30,
and September 30, 2007 -- would also be effected by the
restatement as well as the mark-to-market adjustment within a
given period.
According to Mr. McDevitt, the restatement adjustments
indicate that a material weakness existed in the Company's
internal control over financial reporting for the years ended
December 31, 2007 and 2006.
Current management advised that the Company's previously issued
consolidated financial statements for these periods should no
longer be relied upon. Management also disclosed that its report
on internal control over financial reporting as of December 31,
2007, should no longer be relied upon.
Capital Growth Systems' audit committee and management discussed
their conclusions with its independent registered public
accounting firm, Plante & Moran, LLP.
Mr. McDevitt said the change in accounting creates an instance of
non-compliance in the Company's senior secured convertible
debenture agreement. However, he said, the Company received
verbal assurances from holders of 82% of the currently outstanding
principal amount of the debentures that they would deliver waivers
of these instances of non-compliance and the related right to
acceleration with respect to this event.
About Capital Growth
Based in Chicago, Capital Growth Systems Inc. (OTC BB: CGSY) doing
business as Global Capacity Group Inc., delivers telecom
integration services to systems integrators, telecommunications
companies, and enterprise customers worldwide. It provides an
integrated supply chain management system that streamlines and
accelerates the process of designing, building, and managing
customized communications networks. The company also provides
connectivity services for network integrators who bundle
telecommunication solutions to enterprise customers; offers global
pricing and quotation software and management services for data
communications; and assists customers to reduce connectivity costs
and attain understanding and control of their deployed
communications network.
Going Concern Doubt
Plante & Moran, PLLC, in Elgin, Ill., expressed substantial doubt
about Capital Growth Systems Inc.'s ability to continue as a going
concern after auditing the company's consolidated financial
statements for the year ended Dec. 31, 2007. The auditing firm
pointed to the company's recurring losses, negative cash flows
from operations and net working capital deficiency.
The company has incurred net losses from continuing operations of
$3,653,000 and $6,965,000 for the three months ended
March 31, 2008, and 2007, respectively.
CAPITAL GROWTH: Global Capacity Unit Sells NexVu Technologies
-------------------------------------------------------------
Global Capacity, Inc., a wholly owned unit of Capital Growth
Systems, Inc., has completed the sale of its NexVu Technologies
business unit to NexVu APM, LLC, based in Naperville, IL. Under
the terms of this transaction, Global Capacity will retain an
ownership stake in NexVu APM.
Global Capacity has been seeking a strategic partner to continue
development of the NexVu platform. The transaction and retained
ownership stake provide NexVu APM with a platform for continued
development, while enabling Global Capacity to continue to
leverage the NexVu technology in the company's portfolio of
network logistics product offerings.
"We will continue to work with NexVu APM in an effort to expand
our Network Optimization and Strategic Sourcing solutions," said
Patrick Shutt, Chief Executive Officer of Global Capacity. "The
performance monitoring and network planning capabilities of the
NexVu technology offer significant leverage to our logistics
solutions, and we are pleased that this deal enables the further
development of the technology."
About Capital Growth
Based in Chicago, Capital Growth Systems Inc. (OTC BB: CGSY) doing
business as Global Capacity Group Inc., delivers telecom
integration services to systems integrators, telecommunications
companies, and enterprise customers worldwide. It provides an
integrated supply chain management system that streamlines and
accelerates the process of designing, building, and managing
customized communications networks. The company also provides
connectivity services for network integrators who bundle
telecommunication solutions to enterprise customers; offers global
pricing and quotation software and management services for data
communications; and assists customers to reduce connectivity costs
and attain understanding and control of their deployed
communications network.
Going Concern Doubt
Plante & Moran, PLLC, in Elgin, Ill., expressed substantial doubt
about Capital Growth Systems Inc.'s ability to continue as a going
concern after auditing the company's consolidated financial
statements for the year ended Dec. 31, 2007. The auditing firm
pointed to the company's recurring losses, negative cash flows
from operations and net working capital deficiency.
The company has incurred net losses from continuing operations of
$3,653,000 and $6,965,000 for the three months ended
March 31, 2008, and 2007, respectively.
CAPITOL PERFORMING: Files for Bankruptcy Protection
---------------------------------------------------
Christina Kauffman at The York Dispatch reports that Capitol
Performing Arts Center has filed for Chapter 11 bankruptcy
protection.
Capitol Performing's Artistic Producer Sharon Hillegas said that
the theater will remain open as its operators try to repay over
$140,000 in debt, The Dispatch states. According to the report,
Ms. Hillegas and her husband, Michael, are the unpaid operators of
the theater. The Dispatch relates that actors, who received a
stipend for their work until the theater could no longer afford
it, are all volunteers.
Ms. Hillegas said that Capitol Performing is having trouble paying
its bills, the largest of which is a loan from Commerce Bank, The
Dispatch states.
Capitol Performing's financial problems began in 2006, when it had
to relocate from the space it had been leasing in an old church on
Wayne Street in Harrisburg, because the owner planned to sell the
property for $1 million but the theater couldn't afford it, The
Dispatch says, citing Ms. Hillegas.
The Dispatch states that the Hillegas couple decided to buy the
Fishing Creek Road building, a former warehouse, expecting to
spend about $200,000 in renovations and equipment. Ms. Hillegas
said that the theater "was dogged by zoning rules and struggled to
meet the necessary requirements, and the renovation cost
$340,000," according to The Dispatch. "We opened the doors (in May
2007) upside down by $140,000," the report quoted Ms. Hillegas as
saying.
According to The Dispatch, theater organizers reduced the price of
tickets to $10. Theater was no longer as much of a regular past
time as it had been, but while seats were filled, the admission
price did little to increase profits, The Dispatch says, citing
Ms. Hillegas.
Pennlive.com relates that artist Thomas Kinkade will auction an
original sketch to benefit children's programs at Capitol
Performing Arts Center.
About Capitol Performing
The nonprofit theater Capitol Performing Arts Center is located in
450 Fishing Creek Road in Fairview Township. The theater produces
several dinner and non-dinner shows per year, including
programming for youth and shows for adults. The theater has three
paid staff members.
CAPRIUS INC: AWM Investment Co. Discloses 81.1% Equity Stake
------------------------------------------------------------
Austin W. Marxe and David M. Greenhouse disclosed in a regulatory
filing with the Securities and Exchange Commission that they may
be deemed to beneficially own 13,057,718 shares of Caprius, Inc.,
common stock, representing 81.1% of outstanding shares.
Messrs. Marxe and Greenhouse share sole voting and investment
power over:
-- 27,790 shares of Common stock, 2,080 shares of Preferred
Stock convertible for 130,606 shares of Common Stock and
272,767 Warrants to purchase 96,462 shares of Common stock
owned by Special Situations Fund III, L.P.,
-- 404,597 shares of Common Stock, 23,914 shares of Preferred
Stock convertible for 1,500,562 shares of Common Stock and
3,115,807 Warrants to purchase 1,104,467 shares of Common
Stock owned by Special Situations Fund III QP, L.P., and
-- 1,297,162 shares of Common stock, 77,983 shares of
Preferred Stock convertible for 4,893,361 shares of Common
Stock and 10,165,647 Warrants to purchase 3,602,711 shares
of Common stock owned by Special Situations Private Equity
Fund, L.P.
Messrs. Marxe and Greenhouse are the controlling principals
of AWM Investment Company, Inc., the general partner of MGP
Advisers Limited Partnership, the general partner of and
investment adviser to Special Situations Fund III, L.P. and the
general partner of Special Situations Fund III QP, L.P. Messrs.
Marxe and Greenhouse are also members of MG Advisers L.L.C., the
general partner of Special Situations Private Equity Fund, L.P.
AWM serves as the investment adviser to SSFQP and SSPE.
About Caprius Inc.
Headquartered in Hackensack, N.J., Caprius Inc. (OTC BB: CAPS) --
-- http://www.caprius.com/-- is a manufacturer of proprietary
equipment for the on-site disinfection of infectious medical waste
through its subsidiary, M.C.M. Environmental Technologies Inc.
The company's technology simultaneously shreds and disinfects
solid and liquid regulated medical waste, reducing the volume by
up to 90% and rendering it harmless for disposal as ordinary
waste.
The company has incurred substantial recurring losses. In
addition, the company is a defendant in an action seeking damages
in excess of $400,000. Although management believes the company
has a meritorious defense against such a lawsuit, an unfavorable
outcome of such action could have a materially adverse impact on
our business. In order to fund the additional cash requirements
of the company, the company continues to pursue efforts to
identify additional funds through various funding options. If the
company is unable to generate sufficient cash flows from its
business operations or raise additional funding to continue its
operations, the company will have to implement a plan to
drastically curtail operations to reduce operating costs until
sufficient additional capital is raised. These factors, the
company believes, raise substantial doubt about its ability to
continue as a going concern.
The Troubled Company Reporter reported on Sept. 15, 2008, that
Caprius Inc. reported a net loss of $1,360,644 on total revenues
of $795,492 for the third quarter ended June 30, 2008, compared
with a net loss of $466,012 on total revenues of $675,756 in the
same period ended June 30, 2007. At June 30, 2008, the company's
consolidated balance sheet showed $4,407,245 in total assets,
$2,028,514 in total liabilities, and $2,378,731 in total
stockholders' equity.
CARBIZ INC: July 31 Balance Sheet Upside-Down by $15,647,041
------------------------------------------------------------
CarBiz Inc.'s balance sheet at July 31, 2008, showed total assets
of $31,330,980 and total liabilities of $46,978,021, resulting in
a shareholders' deficit of $15,647,041.
Carl Ritter, chairman and CEO of CarBiz disclosed the company's
second-quarter results. In the three months ended July 31, 2008,
revenues increased by $7,840,557 compared to the same period ended
July 31, 2007. This was due to the acquisition of a number of buy
here-pay here credit centers. Net profit for the period was
$1,530,838; an increase by $4,242,936 compared to the same period
ended July 31, 2007.
The software operation was sold on July 2, 2008. As of July 1,
2008, ongoing revenue stream from consulting will consist of new
sales and monthly revenue from consulting products, training
products, buy here - pay here performance groups, seminars, other
one time dealer assistance, and supply sales.
According to Mr. Ritter, "Business was comparable with the first
quarter. The adoption of our tier two loans across our car lots,
which are loans at the $10,000 range, is going very well. We can
expect to see the results of the tier two adoption in the third
quarter impact our top line revenue in a positive way."
About CarBiz Inc.
Headquartered in Sarasota, Florida, CarBiz Inc. (OTC BB: CBZFF)
-- http://www.carbiz.com/-- owns and operates a chain of buy-here
pay-here dealerships through its CarBiz Auto Credit division. The
company is also a provider of software, training and consulting
solutions to the buy-here pay-here auto dealers in the United
States. CarBiz's suite of business solutions includes dealer
software products focused on the buy-here pay-here, sub-prime
finance and automotive accounting markets.
Capitalizing on expertise developed over 10 years of providing
software and consulting services to buy-here pay-here businesses
across the United States, CarBiz entered the buy-here pay-here
business in 2004 with a location in Palmetto, Florida. CarBiz has
added two more credit centers since - in Tampa and St. Petersburg
- and recently acquired a large regional chain in the Midwest,
bringing the total number of dealerships to 26 in eight states.
Going Concern Doubt
Aidman, Piser & Company P.A., in Tampa, Florida, expressed
substantial doubt about Carbiz Inc.'s ability to continue as a
going concern after auditing the company's consolidated financial
statements for the year ended Jan. 31, 2008.
The company has incurred losses in the current period (exclusive
of gains on derivative instruments) and in each of the past
several years. In addition, the company had a working capital
deficiency of $10,386,186 and a stockholders' deficit of
$17,289,387 at April 30, 2008.
CARBONE COS: Wins Bankruptcy Court Approval to Use Cash Collateral
------------------------------------------------------------------
Erik Larson of Bloomberg News reports that Carbone Cos., Inc., and
its debtor-affiliates, have -- despite objections from creditor
Fifth Third Bancorp -- obtained temporary approval from the U.S.
Bankruptcy Court for the Northern District of Ohio, on September
12, 2008, to use cash collateral for operations.
The Debtors, the report says, need the funds to avoid irreparable
harm to its business. A final hearing on the use of the cash
collateral was set for Sept. 30, according to the report.
A year ago, the Debtors defaulted on a $15 million loan from Fifth
Third, the report recalls. Fifth Third claims that the Debtors
are being mismanaged and last week sought a court order forcing
them to liquidate instead of reorganize, the report states.
On Aug. 1, the Debtors lost a $15.2 million judgment over the loan
in an Ohio state court, the report quotes Fifth Third as saying.
The Debtors are using deceptive financing practices and wrongfully
transferring funds to non-bankrupt units, Fifth Third argued in
court documents, according to the report.
The Debtors, the reports quotes, said it wants to use Fifth
Third's funds to pay salaries and other post-petition obligations.
Cleveland, Ohio-based Carbone Companies, Inc., dba R.P. Carbone
Company, provides construction management services. Carbone,
together with Carbone Properties, LLC and Rancho Manana Ventures,
LLC, filed chapter 11 petition on Sept. 4, 2008 (Bankr. N.D. Oh.
Lead Case No. 08-16786). Judge Randolph Baxter presides over the
case. Harry W. Greenfield, Esq., at Buckley King, A Legal
Professional Association, represents the Debtors in their
restructuring efforts.
The Debtors estimated $10 million to $50 million in assets and
$10 million to $50 million in debts when they filed for
bankruptcy. William Rochelle says that the Debtor listed
$35 million in assets and $40.7 million in liabilities. The
Debtors listed Pillman, LLC as their largest unsecured creditor,
owed $4,000,000.
CARBONE COS: Wants Time to File Schedules Extended to Oct. 3
------------------------------------------------------------
Carbone Companies, Inc. and Carbone Properties, LLC ask the U.S.
Bankruptcy Court for the Northern District of Ohio to extend
through Oct. 3, 2008, the time in which they must file their
Statements of Financial Affairs and Schedules of Assets and
Liabilities. Pursuant to Bankruptcy Rule 1007(c), a Chapter 11
debtor must file, within 15 days of the commencement of its
Chapter 11 case, schedules of assets and liabilties and a
statement of financial affairs. The current deadline, unless
extended, is Sept. 19, 2008.
The Debtors present the following reasons in support of their
request:
a) The gathering, verifying and synthesizing the information
needed to complete the Schedules will take time to prepare;
and
b) Since the Petition Date, the Debtors and their professionals
have spent considerable time preparing for contested hearings
on (i) the Debtors' use of cash collateral and (ii) the
motion to convert these cases to Chapter 7 or alternatively
to appoint a chapter 11 trustee filed by Fifth Third Bank.
As reported in the Troubled Company Reporter on Sept. 15, 2008,
Fifth Third Bank asked the Court to convert the Debtors' chapter
11 case to a chapter 7 liquidation proceeding.
The bank argued that the Debtors' companies were mismanaged and
that the Debtors only sought bankruptcy protection to evade a
$15.2 million judgment. On Aug. 1, the Debtors lost a judgment
over the loan in an Ohio state court, Bloomberg News reports.
About Carbone Companies
Cleveland, Ohio-based Carbone Companies, Inc., dba R.P. Carbone
Company, provides construction management services. Carbone
Companies, Inc. and Carbone Properties, LLC filed for Chapter 11
relief on Sept. 4, 2008 (Bankr. N.D. Oh. Lead Case No. 08-16786).
Judge Randolph Baxter presides over the case. Harry W.
Greenfield, Esq., at Buckley King, A Legal Professional
Association, represents the Debtors in their restructuring
efforts. When the Debtors filed for protection from their
creditors, both listed assets of between $10 million and
$50 million, and debts of between $10 million to $50 million.
The Debtors disclosed in court documents that two other
affiliates, Rancho Manana Ventures, LLC and Carbone Properties of
Audubon, LLC have pending bankruptcy cases filed in other District
Courts.
Based in Cave Creek, Ariz., Rancho Manana Ventures, LLC filed for
Chapter 11 relief of Aug. 13, 2008 (D. Ariz. Case No. 08-10441).
Thomas E. Littler, Esq., at Warnicke & Littler, P.L.C., represents
the Debtor as counsel. When the Debtor filed for protection from
its creditors, it listed assets of between $1 million and
$10 million, and debts of between $10 million and $50 million.
The U.S. Trustee told the Court that as there has not been a
sufficient showing of creditor interest, a committee of unsecured
creditors has not been appointed in the Debtor's bankruptcy case.
Based in New Orleans, La., Carbone Properties of Audubon, LLC
filed for Chapter 11 relief on Dec. 12, 2007 (Bankr. E.D. La.
07-12470). Douglas S. Draper, Esq., at Heller, Draper, Hayden,
Patrick & Horn, L.L.C., represents the Debtor as counsel. When
the Debtor filed for protection from its creditors, it listed
assets of between $1 million and $10 million, and debts of between
$10 million and $50 million.
CARLSON MINING: Voluntary Chapter 11 Case Summary
-------------------------------------------------
Debtor: Carlson Mining, a Pennsylvania General Partnership
166 Mt. Herman Church Road
New Castle, PA 16101
Bankruptcy Case No.: 08-26089
Type of Business: The Debtor operates a coal mining business.
Chapter 11 Petition Date: September 15, 2008
Court: Western District of Pennsylvania (Pittsburgh)
Debtor's Counsel: Robert O. Lampl, Esq.
rol@lampllaw.com
960 Penn Avenue, Suite 1200
Pittsburgh, PA 15222
Tel: (412) 392-0330
Fax : 412-392-0335
Estimated Assets: $1 million to $10 million
Estimated Debts: $1 million to $10 million
The Debtor did not file a list of its 20 Largest Unsecured Creditors.
CARUSO HOMES: Meeting of Creditors Slated for September 22
----------------------------------------------------------
The United States Trustee for the District of Maryland will
convene a continuance of meeting of creditors of Caruso Homes Inc.
and its debtor-affiliates at 10:00 a.m., on Sept. 22, 2008, in 341
Meeting Room #2650 at 101 W. Lombard St., in Baltimore, Maryland.
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.
Headquartered in Crofton, Maryland, Caruso Homes Inc. --
http://www.carusohomes.com/-- is a custom home builder. The
company and 24 of its debtor-affiliates filed for Chapter 11
protection on June 23, 2008 (D. Md. Lead Case No. 08-18254). Joel
I. Sher, Esq., at Shapiro Sher Guinot & Sandler, represents the
Debtors as counsel.
CARUSO HOMES: Files Schedules of Assets and Liabilities
-------------------------------------------------------
Caruso Homes Inc. and its debtor-affiliates delivered to the
United States Bankruptcy Court for the District of Maryland its
schedules of assets and liabilities disclosing:
Name of Schedule Assets Liabilities
---------------- ----------- -----------
A. Real Property $0
B. Personal Property $16,105,716
C. Property Claimed
as Exempt
D. Creditors Holding $5,500,000
Secured Claims
E. Creditors Holding $180,973
Unsecured Priority
Claims
F. Creditors Holding $110,128,384
Unsecured Nonpriority
Claims
----------- ------------
TOTAL $16,105,716 $115,809,357
Headquartered in Crofton, Maryland, Caruso Homes Inc. --
http://www.carusohomes.com/-- is a custom home builder. The
company and 24 of its debtor-affiliates filed for Chapter 11
protection on June 23, 2008 (D. Md. Lead Case No. 08-18254). Joel
I. Sher, Esq., at Shapiro Sher Guinot & Sandler P.A, represents
the Debtors as counsel.
CASH SYSTEMS: Morgan Stanley, FrontPoint No Longer Own Stocks
-------------------------------------------------------------
In separate regulatory filings with the Securities and Exchange
Commission, Morgan Stanley and FrontPoint Partners LLC, and
Gilder, Gagnon, Howe & Co. LLC disclosed that they no longer own
any shares of Cash Systems Inc.'s common stock.
Based in Las Vegas, Cash Systems Inc. (Nasdaq: CKNN) --
http://www.cashsystemsinc.com/-- is a provider of cash-access and
related services to the retail and gaming industries. Cash
Systems' products include its proprietary cash advance systems,
ATMs and check cashing solutions. Cash Systems Inc.'s
consolidated balance sheet at March 31, 2008, showed $58.2 million
in total assets and $60.1 million in total liabilities, resulting
in a $1.9 million total stockholders' deficit.
As reported in the Troubled Company Reporter on April 29, 2008,
Virchow, Krause & Company LLP, in Minneapolis, expressed
substantial doubt about Cash Systems Inc.'s ability to continue as
a going concern after auditing the company's consolidated
financial statements for the year ended Dec. 31, 2007. The
auditing firm pointed to the company's recurring operating losses,
negative cash flows from operations, negative working capital and
accumulated deficit.
On August 8, 2008, Cash Systems, Inc., completed its merger with
Card Acquisition Subsidiary, Inc., as a result of which the
Company is now a wholly-owned subsidiary of Global Cash Access,
Inc.. The Merger was effected pursuant to an Agreement and Plan
of Merger, dated as of June 13, 2008, by and among the Company,
GCA and Merger Sub.
CELERON CORPORATION: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------------
Debtor: Celeron Corporation
111 Presidential Blvd., Suite 200
Bala Cynwyd, PA 19004
Bankruptcy Case No.: 08-12132
Chapter 11 Petition Date: September 12, 2008
Court: District of Delaware (Delaware)
Debtor's Counsel: Anthony M. Saccullo, Esq.
asaccullo@ciardilaw.com
Ciardi, Ciardi & Astin, P.C.
919 N. Market Street, Suite 725
Wilmington, DE 19899-2323
Tel: (302) 472-9039
Fax: (302) 397-8282
Estimated Assets: $500,000 to $1 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/deb08-12132.pdf
CENTRAL SUN: Signs Term Sheet for $22.5 Million Debt Funding
------------------------------------------------------------
Central Sun Mining Inc. has signed an indicative term sheet for a
total debt package of $22,500,000 million over a four-year term.
Closing of the facility is subject to the bank's internal credit
approval process, the conclusion of a satisfactory due diligence
process, satisfactory definitive documentation and the obtaining
of all the required regulatory approvals.
The debt package is to be structured as a $20,000,000 million
senior debt facility and a $2,500,000 million standby debt
facility and will be secured by way of a first ranking security
interest over the Orosi project assets and corporate support from
Central Sun until the project has reached its projected steady
state of production. The senior debt facility will be used to
finance the development, capital works and commissioning of the
Orosi Mine mill project. The standby debt facility will be
available to fund up to 50% of additional capital and/or operating
costs to a maximum of
$2.5 million with the Company injecting a matching amount plus any
remaining working capital which may be required. The Company is
aiming to have the debt package in place before the end of
November 2008.
Central Sun is currently converting the Orosi Mine from a heap
leach operation to a conventional milling operation. Based on
extensive metallurgical testing, once the conversion is complete
recoveries are anticipated to increase from 38% previously being
achieved from heap leaching to over 90% with the new conventional
milling. Commissioning of the new mill is expected in the first
quarter of 2009 with production at a rate of approximately 85,000
ounces of gold per year. A positive feasibility study was
completed in May 2008 by Scott Wilson Roscoe Postle Associates
Inc. The mill construction is progressing as planned and all
permits required for production are in place.
About Central Sun
Headquartered in Toronto, Ontario, Central Sun Mining Inc. (TSX:
CSM)(TSX: CSM.WT)(AMEX: SMC)-- http://www.centralsun.ca/-- is a
gold producer with mining and exploration activities focused in
Nicaragua. The company operates the Limon Mine and is in the
process of converting the Orosi Mine (formerly the Libertad Mine)
to a conventional milling operation. Both properties are located
in Nicaragua. The Bellavista Mine in Costa Rica is currently
being reclaimed. The company also has an option to acquire the
Mestiza exploration property in Nicaragua. Central Sun's growth
strategy is focused on optimizing current operations, expanding
mineral resources and reserves at existing mines, and looking for
merger and acquisition opportunities in the Americas. In early
2007, the company commenced a major project to convert the heap-
leach process at the Orosi Mine to a conventional milling
operation (Mill Project). Mining activities at the company's
Bellavista Mine ceased during the third quarter of 2007. Since
that time, reclamation activities have begun and it is not
expected that mining activities will resume.
Going Concern Doubt
Management of Central Sun Mining Inc. believes there exists
substantial doubt about the company's ability to continue as a
going concern. As at March 31, 2008, the company had used
$3,344,000 in operating cash flows, reported a net loss of
$5,022,000 and had an accumulated deficit of $87,501,000. The
company says it may not have sufficient cash to fully fund ongoing
2008 capital expenditures, exploration activities and complete the
development of the Orosi Mine - mill project and therefore will
require additional funding which, if not raised, would result in
the curtailment of activities and project delays.
At March 31, 2008, the company's consolidated balance sheet showed
$68,844,000 in total assets, $20,065,000 in total liabilities, and
$48,779,000 in total stockholders' equity.
CITY CAPITAL: June 30 Balance Sheet Upside-Down by $1,261,973
-------------------------------------------------------------
City Capital Corp.'s consolidated balance sheet at June 30, 2008,
showed $2,406,041 in total assets and $3,668,014 in total
liabilities, resulting in $1,261,973 total stockholders' deficit.
At March 31, 2008, the company's consolidated balance sheet also
showed strained liquidity with $2,078,845 in total current assets
available to pay $3,589,084 in total current liabilities.
The company reported a net loss of $644,140, on revenues of
$116,679, for the quarter ended June 30, 2008.
Based in Franklin, Tenn., City Capital Corporation (OTC BB: CTCC)
-- http://www.citycapitalcorp.net/-- acquires and renovates
distressed properties in multiple industry segments, reselling
them at a profit.
Going Concern Doubt
As reported in the Troubled Company Reporter on May 19, 2008,
Spector & Wong, LLP, in Pasadena, Calif., expressed substantial
doubt about City Capital Corporation's ability to continue as a
going concern after auditing the company's consolidated financial
statements for the year ended Dec. 31, 2007. The auditing firm
said that the company's ability to continue in the normal course
of business is dependent upon the success of future operations.
The auditing firm added that the company has recurring losses,
substantial working capital deficiency, stockholders' deficit and
negative cash flows from operations. The auditing firm also
pointed to the company's default in certain notes payable, recent
withdrawal as a business development company and commencement of
new operations.
COMSTOCK HOMEBUILDING: Signs Forbearance Pact With Regions Bank
---------------------------------------------------------------
On September 4, 2008, Comstock Homes of Atlanta, Comstock James
Road, LLC, Highland Station Partners, LLC, as borrowers and
Comstock Homebuilding Companies, Inc., as guarantor and obligor,
entered into a Forbearance and Conditional Release Agreement with
Regions Bank relating to approximately $5,300,000 of outstanding
debts owed by the Borrowers to Regions. Under the terms of the
Agreement, Regions agreed to release the Obligors from their
obligations and guarantees relating to the Debts upon the earlier
of successful foreclosure by Regions on all collateral pledged to
secure the Debts or December 15, 2008.
The assets pledged include developed building lots, developed land
and/or speculative single family homes at:
-- James Road, a single family home project in Atlanta,
Georgia;
-- Post Road, a townhome development in Atlanta, Georgia; and
-- Highland Station, a single family home development in
Atlanta, Georgia.
Regions is expected to complete foreclosure proceedings on the
Collateral on or before December 15, 2008. Upon completion of the
foreclosures, conditioned on the Company being cooperative,
Regions will issue the Company the unconditional Release within
ten days and the Debts will be considered paid in full with no
deficiency liability post foreclosure.
The Agreement covers four loans from Regions to the Borrowers for
which the Company is Guarantor. The loans include:
-- an acquisition loan to CHOA relating to the Post Road
Collateral with $699,775 outstanding;
-- an acquisition, development and construction loan to James
Rd relating to the James Rd project with $1,650,000
outstanding; and
-- an acquisition loan and a construction loan to Highland
relating to the Highland Station project with a combined
total of $2,955,830 outstanding.
The company's secured debt as of June 30, 2008, totaled
$144 million.
"The agreement we entered into with Regions today is the result of
our continued focus on restructuring a significant portion of our
debt and positioning Comstock to survive the current downturn in
housing," said Christopher Clemente, Comstock's Chairman and Chief
Executive Officer. "We are satisfied with the outcome of our
negotiation with Regions and believe it is another important step
in our plan to reposition our company to meet the challenges of
the current market. While we have more work to do in this regard
with certain other lenders, the Regions agreement, along with the
recently announced similar agreement with BB&T, are in keeping
with our objective. We remain optimistic regarding the potential
for a positive outcome of our restructuring efforts."
The Company, in anticipation of the agreement, had recorded
impairment charges related to the Regions collateral in the
quarter ending June 30, 2008, and as a result the Company does not
anticipate any material future write-offs as a result of the
Agreement or the foreclosures.
In its Form 10-Q filed with the Securities and Exchange Commission
in mid-August, the company reported total assets of $224,311,000,
total liabilities of $186,715,000, and total shareholders' equity
of $37,368,000. For the three months ended June 30, 2008, the
company posted a net loss of $$16,618,000 on total revenues of
$12,003,000.
About Comstock Homebuilding
Based in Reston, Viginia, Comstock Homebuilding Companies, Inc.
(NasdaqGM: CHCI) -- http://www.comstockhomebuilding.com--
develops, builds and markets single-family homes, townhouses and
condominiums in the Washington D.C., Raleigh, North Carolina and
Atlanta, Georgia metropolitan markets. The company also provides
certain management and administrative support services to certain
related parties.
The Troubled Company Reporter reported on July 11, 2008, that
Comstock retained FTI Consulting Inc. as advisor to the company
with respect to strategic and financial alternatives in the face
of a prolonged real estate downturn.
Going Concern Doubt
As reported in the Troubled Company Reporter on April 3, 2008,
PricewaterhouseCoopers LLP raised substantial doubt about the
ability of Comstock Homebuilding Companies, Inc., to continue as a
going concern after it audited the company's financial statements
for the year ended Dec. 31, 2007. The auditor pointed stated that
the company has experienced declining market conditions and has
significant debt maturing during 2008.
COMSTOCK HOMEBUILDING: Gets Default Notices From Bank of America
----------------------------------------------------------------
On September 8, 2008, Comstock Homebuilding Companies, Inc., and
Highland Avenue Properties, LLC, a wholly owned subsidiary of the
company, received a notice of default and demand from Bank of
America, N.A. under a Loan Agreement in the original principal
amount of $4,851,235. The Highland Ave Note is secured by land at
the company's Highland Avenue project in Atlanta, Georgia.
According to the notice of default, the outstanding balance under
the Highland Note at the time of the notice was $4,341,004.35.
On September 8, 2008, the company and Comstock Homes of Atlanta,
LLC, a wholly owned subsidiary of the company, received a notice
of default and demand from BofA under a Loan Agreement in the
original principal amount of $10,000,000. The CHOA Note is
secured by land at the company's Brentwood Estates and Senator's
Ridge projects in Atlanta, Georgia. According to the notice of
default, the outstanding balance under the CHOA Note at the time
of the notice was $1,522,345.81.
On September 8, 2008, the company received a notice of default and
demand from BofA under a Loan Agreement in the original principal
amount of $15,000,000. The CHCI Note is unsecured. According to
the notice of default, the outstanding balance under the CHCI Note
at the time of the notice was $3,270,254.85.
In the event the company and its subsidiaries are deemed to be in
default under the any of the notes or any future notices, each of
the lenders may be entitled to exercise a variety of rights,
including:
(i) accelerating the loans,
(ii) terminating the loans,
(iii) reducing its claims to judgments, and
(iv) exercising all other legal and equitable remedies it may
have.
In addition, in the event the company and its subsidiaries are
deemed to be in default under the notes, the company, directly or
indirectly through additional subsidiaries could be deemed to be
in default under other credit facilities, which would potentially
give the company's other lenders the right to exercise their
rights with respect to the remainder of the company's outstanding
indebtedness.
About Comstock Homebuilding
Based in Reston, Viginia, Comstock Homebuilding Companies, Inc.
(NasdaqGM: CHCI) -- http://www.comstockhomebuilding.com--
develops, builds and markets single-family homes, townhouses and
condominiums in the Washington D.C., Raleigh, North Carolina and
Atlanta, Georgia metropolitan markets. The company also provides
certain management and administrative support services to certain
related parties.
The Troubled Company Reporter reported on July 11, 2008, that
Comstock retained FTI Consulting Inc. as advisor to the company
with respect to strategic and financial alternatives in the face
of a prolonged real estate downturn.
Going Concern Doubt
As reported in the Troubled Company Reporter on April 3, 2008,
PricewaterhouseCoopers LLP raised substantial doubt about the
ability of Comstock Homebuilding Companies, Inc., to continue as a
going concern after it audited the company's financial statements
for the year ended Dec. 31, 2007. The auditor pointed stated that
the company has experienced declining market conditions and has
significant debt maturing during 2008.
CONPOREC: Closes C$1.5MM Interim Loan from European Contractor
--------------------------------------------------------------
Conporec said that it has concluded a debtor-in-possession
financing of C$1.5M from a leading European renewable waste-to-
energy contractor, involved in fields of activities that are
complementary to Conporec's, after having obtained the protection
of the Superior Court under the terms of the Companies' Creditors
Arrangement Act August 8.
The DIP financing is guaranteed by a first rank mortgage on all of
company's assets. The company has also obtained from the Court a
60 days extension of the initial ordinance, thus extending it
until November 7, 2008.
The DIP financing allows the company to concentrate on the
implementation of its restructuring as well as creditors'
arrangement plans. It also makes it possible to work on the
resumption of the Canada-based facilities, while maintaining the
activities of its subsidiary companies Conporec S.A.S. from France
and Conporec PTY from Australia which are not affected by the
CCAA.
The identity of this financial partner will be announced in the
next weeks, once the partnering discussions are finalized.
About Conporec Inc.
Headquartered in Quebec, Canada, Conporec Inc. (CA:CNX)
(ALTERNEXT: ALCNX) -- http://www.conporec.com/-- specializes in
the treatment and recovery of household waste and organic
materials. Conporec offers municipalities an alternative solution
to landfill use. The sorting composting technology developed by
Conporec allows its clients to recover more than 70% of waste that
would otherwise be sent to landfills. In addition, through its
Biomax solutions, the company also offers its clients organic
waste recovery solutions.
CONTINENTAL AIRLINES: August 2008 Load Factor at 84.9 Percent
-------------------------------------------------------------
Continental Airlines Inc. disclosed in a Securities and Exchange
Commission filing that its August 2008 consolidated (mainline plus
regional) load factor was 83.9 percent, 1.4 points below the
August 2007 consolidated load factor, and a mainline load factor
of 84.9 percent, 1.0 point below the August 2007 mainline load
factor. In addition, the carrier reported a domestic mainline
August load factor of 86.3 percent, 1.7 points below the August
2007 domestic mainline load factor, and an international mainline
load factor of 83.4 percent, 0.3 points below August 2007.
During the month, Continental recorded a U.S. Department of
Transportation on-time arrival rate of 73.8 percent and a mainline
segment completion factor of 99.4 percent.
In August 2008, Continental flew 9.1 billion consolidated revenue
passenger miles (RPMs) and 10.9 billion consolidated available
seat miles (ASMs), resulting in a consolidated traffic increase of
0.7 percent and a capacity increase of 2.4 percent as compared to
August 2007. In August 2008, Continental flew 8.2 billion
mainline RPMs and 9.7 billion mainline ASMs, resulting in a
mainline traffic increase of 0.7 percent and a mainline capacity
increase of 2.0 percent as compared to August 2007. Domestic
mainline traffic was 4.2 billion RPMs in August 2008, down 3.3
percent from August 2007, and domestic mainline capacity was 4.8
billion ASMs, down 1.4 percent from August 2007.
For August 2008, consolidated passenger revenue per available seat
mile (RASM) is estimated to have increased between 4.5% and 5.5%
compared to August 2007, while mainline passenger RASM is
estimated to have increased between 5.5 and 6.5 percent compared
to August 2007. For July 2008, consolidated passenger RASM
increased 4.8 percent compared to July 2007, while mainline
passenger RASM increased 4.9 percent compared to July 2007.
Continental's regional operations had an August load factor of
76.4 percent, 3.8 points below the August 2007 regional load
factor. Regional RPMs were 917.3 million and regional ASMs were
1,200.8 million in August 2008, resulting in a traffic increase of
0.5 percent and a capacity increase of 5.5 percent versus August
2007.
About Continental Airlines
Based in Houston, Texas, Continental Airlines Inc. (NYSE: CAL)
-- http://continental.com/-- is the world's fifth largest
airline. Continental, together with Continental Express and
Continental Connection, has more than 3,000 daily departures
throughout the Americas, Europe and Asia, serving 140 domestic and
139 international destinations. More than 550 additional points
are served via SkyTeam alliance airlines. With more than 46,000
employees, Continental has hubs serving New York, Houston,
Cleveland and Guam, and together with Continental Express, carries
approximately 69 million passengers per year.
* * *
The Troubled Company Reporter said on Aug. 13, 2008, that Standard
& Poor's Ratings Services took various actions on its ratings on
Continental Airlines Inc. (B/Negative/B-3). S&P affirmed its 'B'
long-term corporate credit rating, 'B-3' short-term corporate
credit rating, all ratings on unsecured debt and on selected
enhanced equipment trust certificates. S&P lowered S&P's ratings
on other enhanced equipment trust certificates, particularly those
secured by regional jets, and raised other ratings. All ratings
were removed from CreditWatch, where they were placed with
negative implications May 22, 2008, as part of an industrywide
review. The rating outlook is negative.
COREL CORP: To Reduce Global Workforce by 90 Employees
------------------------------------------------------
Corel Corporation (NASDAQ:CREL) (TSX:CRE) is streamlining its
global operations in order to become more operationally efficient
and to increase its investment in key growth opportunities,
including emerging markets and eCommerce. As part of this effort,
the Company will reduce its global workforce by approximately 8%
or 90 employees worldwide.
The Company estimates that, as a result of these actions, it will
incur a one-time restructuring charge in the fourth quarter in the
amount of $2.8 million. Subject to completion of usual review
procedures regarding quarterly financial results, the Company also
announced its expectation to report revenue and non-GAAP adjusted
net income and earnings per share, consistent with its Q3 guidance
communicated on July 3, 2008.
"Corel, like any company, must make periodic adjustments to ensure
we are running as efficiently as possible and that we are focusing
our teams and resources on the areas we believe offer the best
opportunities for growth,"said Kris Hagerman, Interim CEO of
Corel. "The actions we are taking today will enable us to expand
our sales and marketing activity in emerging markets and enhance
our eCommerce offerings – just two of the areas where we believe
incremental investment will improve both our financial performance
and our long-term competitive position in the market."
As indicated in a statement issued on August 20, 2008, the Company
is in discussions with a third party regarding a potential sale of
Corel. No agreement has been reached regarding a potential sale
and there can be no assurance that such an agreement will be
reached. In addition, there can be no assurance that any
transaction will be completed or, if completed, of its terms,
price or timing.
Will Release Third Quarter Financials on Oct. 3
The Company will issue its earnings release for the third quarter
ended August 31, 2008, before markets open on Friday, October 3,
2008. Corel will host a conference call to discuss its financial
results at 8:00 AM Eastern time on the same day.
About Corel Corp.
Corel Corp. (NASDAQ:CREL) (TSX:CRE) -- http://www.corel.com/-- is
one of the world's top software companies with more than 100
million active users in over 75 countries. The company provides
high quality, affordable and easy-to-use Graphics and Productivity
and Digital Media software. The company's products products are
sold through a scalable distribution platform comprised of
Original Equipment Manufacturers (OEMs), the company's global e-
Stores, and the company's international network of resellers and
retail vendors.
The company's award-winning product portfolio includes some of the
world's most widely recognized and popular software brands,
including CorelDRAW(R) Graphics Suite, Corel(R) Paint Shop Pro(R)
Photo, Corel(R) Painter(TM), VideoStudio(R), WinDVD(R), Corel(R)
WordPerfect(R) Office and WinZip(R). The company's global
headquarters are in Ottawa, Canada, with major offices in the
United States, United Kingdom, Germany, China, Taiwan and Japan.
CROSSPOINT ENERGY: Case Summary & 19 Largest Unsecured Creditors
----------------------------------------------------------------
Debtor: CrossPoint Energy Company
25 Highland Park Village, Suite 100-344
Dallas, TX 75205
Bankruptcy Case No.: 08-34664
Debtor-affiliates filing separate Chapter 11 petitions:
Entity Case No.
------ --------
CrossPoint Acquisition, LLC 08-34665
CrossPoint Energy Holdings, LLC 08-34666
Dallas Operating Corp. 08-34667
Type of Business: The Debtors are engaged in oil and gas
operations for third parties.
Chapter 11 Petition Date: September 16, 2008
Court: Northern District of Texas (Dallas)
Judge: Harlin DeWayne Hale
Debtor's Counsel: Mark Xavier Mullin, Esq.
mark.mullin@haynesboone.com
Haynes & Boone, LLP
901 Main Street, Suite 3100
Dallas, TX 75202-3789
Tel: (214)651-5539
Fax: (214)200-0695
Total Assets: $79,452
Total Debts: $6,718,333
A list of the Debtor's largest unsecured creditors is available
for free at http://bankrupt.com/misc/txnb08-34664.pdf
CV THERAPEUTICS: Mazama Capital Discloses 3.8% Equity Stake
-----------------------------------------------------------
Mazama Capital Management Inc. disclosed in a regulatory filing
with the Securities and Exchange Commission that it may be deemed
to beneficially own 2,318,241 shares of CV Therapeutics Inc.'s
Class A Common Stock, which represents 3.86% of the outstanding
shares.
Mazama has the sole power to vote or to direct the vote of
1,309,125 shares while it has the sole power to dispose or to
direct the disposition of 2,318,241 shares.
Headquartered in Palo Alto, California, CV Therapeutics Inc.
(NasdaqGM: CVTX) -- http://www.cvt.com/-- is a biopharmaceutical
company focused on applying molecular cardiology to the discovery,
development and commercialization of novel, small molecule drugs
for the treatment of cardiovascular diseases.
CV Therapeutics' approved products include Ranexa(R) (ranolazine
extended-release tablets), indicated for the treatment of chronic
angina in patients who have not achieved an adequate response with
other antianginal drugs, and Lexiscan(TM) (regadenoson) injection
for use as a pharmacologic stress agent in radionuclide myocardial
perfusion imaging in patients unable to undergo adequate exercise
stress.
At March 31, 2008, the company's consolidated balance sheet showed
$228.0 million in total assets and $436.1 million in total
liabilities, resulting in a $208.1 million total stockholders'
deficit.
DAVID KEMPTON: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: David L. Kempton, Inc.
16 D'Alfonso Road
Newburgh, NY 12550
Bankruptcy Case No.: 08-36969
Type of Business: The Debtor is a mechanical contracting firm.
Chapter 11 Petition Date: September 11, 2008
Court: Southern District of New York (Poughkeepsie)
Debtor's Counsel: Harvey S. Barr, Esq.
info@bplegalteam.com
Barr, Post & Associates
664 Chestnut Ridge Road
Spring Valley, NY 10977
Tel: (845) 352-4080
Fax: (845) 352-6777
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/nysb08-36969.pdf
DAVID RUSSELL: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: David Russell Foley
311 Santa Rosa Drive
Los Gatos, CA 95032
Bankruptcy Case No.: 08-55137
Chapter 11 Petition Date: September 12, 2008
Court: Northern District of California (San Jose)
Judge: Roger L. Efremsky
Debtor's Counsel: David A. Boone, Esq.
ecfdavidboone@aol.com
Law Offices of David A. Boone
1611 The Alameda
San Jose, CA 95126
Tel: (408) 291-6000
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/califnb08-55137.pdf
DELUXE ENTERTAINMENT: Moody's Affirms 'B1' CF and POD Ratings
-------------------------------------------------------------
Moody's Investors Service affirmed Deluxe Entertainment Services
Group, Inc.'s B1 Corporate Family Rating and its B1 Probability of
Default Rating and revised its outlook to negative from stable.
In addition, Moody's upgraded the company's $760 million first
lien credit facility ($150 million revolving credit facility and
$610 million term loan) to Ba3 from B1 and affirmed the B3 rating
on the company's $110 million second lien term loan facility.
The negative outlook reflects Deluxe's weaker operating
performance in the first half of 2008 relative to expectations and
plans partly due to the impact of the writers' strike and the SAG
negotiations impasse. In addition, the outlook also reflects
Moody's concerns regarding the ability of the company to remain in
compliance with its financial maintenance covenants under its
first lien credit facility especially in light of the quarterly
tightening of the covenants.
Moody's upgrade of the first lien facility rating is in accordance
with its Loss Given Default Methodology. Given the meaningful
amortization of the first lien term loan, the first lien debt now
comprises a smaller portion of the overall debt capital structure,
leading to a one notch upgrade of the first lien debt.
Moody's has taken these rating actions:
* Corporate Family Rating -- Affirmed B1
* Probability of Default Rating -- Affirmed B1
* Secured First Lien Credit Facility -- Upgraded to Ba3 from B1
(to LGD 3, 40% from LGD 3, 43%)
* Secured Second Lien Credit Facility -- Affirmed B3
(to LGD 5, 87% from LGD 6, 91%)
* Outlook - Revised to Negative from Stable.
Deluxe's B1 corporate family rating reflects its inherent business
risk, including customer concentration; execution risk as Deluxe
seeks to grow its Creative Services business to offset a potential
decline in its core film processing business as the rollout of
digital technology progresses; and volatility of cash flows
related to cash advance contract payments required to secure
business. In addition, Moody's remains concerned over Deluxe's
increased leverage mainly due to a weak performance relative to
expectations in the first half of 2008 and uncertain covenant
compliance under its first lien financial maintenance covenants.
Deluxe's rating is supported by it ability to generate strong free
cash flow, conservative capital structure and favorable terms of
the credit agreement. Deluxe's long term relationship with its
studio customers and expectations for it to maintain its leading
market share throughout its offerings also support the rating.
Deluxe Entertainment Services Group Inc. supplies worldwide film
processing, distribution and creative services to the major
producers and distributors of motion pictures and television
programs. It maintains headquarters in Los Angeles, California,
and generated revenues of approximately $995 million for the
trailing twelve months ended June 30, 2008.
DIAMOND GLASS: Plainfield Wants Ex-CEO Claim Re-characterized
-------------------------------------------------------------
glassBYTEs (Va.) reports that Plainfield Special Situations Master
Fund Ltd. has filed a complaint against Ken Levine, former chief
executive officer of Diamond Glass Inc. and the company's largest
shareholder before the U.S. Bankruptcy Court for the District of
Delaware on Sept. 5.
The report relates that Mr. Levine has filed a secured claim
against the Debtor for more than $10 million, which consists of
his contribution plus interest. Plainfield challenges the claim
and has asked the Court to re-characterize and disallow it as
equity. In the alternative, Plainfield wants the claim "equitably
subordinated to the claims of all unsecured creditors," the report
says.
According to the report, Plainfield alleges that Mr. Levine caused
the delay of the Debtor's bankruptcy filing in an effort to
protect the $10 million he invested in the company. Plainfield,
the report says, disclosed that Levine originally contributed
$6 million in equity to Diamond in January 2007, as part of a
Credit Agreement with Guggenheim Corporate Funding, LLC. In late
April and early May 2007, Diamond sought from Guggenheim reprieve
under the Credit Agreement to borrow more money. Guggenheim
agreed on the condition that Levine make another $4 million
capital contribution.
Guggenheim issued a notice of default to Diamond in July 2007,
glassBYTEs says.
The report says Mr. Levine as board member decided with fellow
directors to pass a resolution authorizing filing for bankruptcy
protection in December 2007, but delayed filing until April 1,
2008. According to Plainfield, had Diamond filed for bankruptcy
within 90 days of the decision to do so, Guggenheim could have
been classified as an unsecured creditor.
"As a result of the default on the Guggenheim loan, the company
could have at any time collected Levine's $10 million
contribution-but did not, and continued financing the company,
despite the default," glassBYTEs says, citing papers filed in
court.
Russell C. Silberglied, Esq. of Richards Layton & Finger, which
represents Mr. Levine, dismissed the complaint as without merit,
and promised to fight it, glassBYTEs says. Robert J. Dehney,
Esq., at Morris, Nichols, Arsht & Tunnell LLP, represents
Plainfield, the report adds.
About Diamond Glass
Headquartered in Kingston, Pennsylvania, Diamond Glass Inc. --
http://www.diamongtriumph.com/or
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.
The Court has extended the exclusive periods by which the Debtors
may file a Chapter 11 plan and to solicit acceptances of such a
plan through November 28, 2008 and January 27, 2009, respectively.
DONALD FELDMAN: Case Summary & 35 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: Donald Roy Feldman
Hannah Cantrell Feldman
50 Brays Island Drive
Sheldon SC 29941
Tel: (843) 896-6949
Bankruptcy Case No.: 08-05682
Chapter 11 Petition Date: September 16, 2008
Court: District of South Carolina (Charleston)
Judge: John E. Waites
Debtor's Counsel: D. Nathan Davis, Esq.
nathan.dlf@knology.net
1124 Sam Rittenberg Boulevard, Suite 8
Charleston, SC 29407
Tel: (843) 571-4042
Fax: (843) 763-5619
Estimated Assets: $1 million to $10 million
Estimated Debts: $1 million to $10 million
The copy of the Debtor's petition that includes the list of its 35
Largest Unsecured Creditors is
available at:
http://bankrupt.com/misc/scb08-05682.pdf
DORADO BECKVILLE: Plan Declared Effect After $74MM Asset Sale
-------------------------------------------------------------
Bloomberg News reports that the chapter 11 bankruptcy plan of Dorado
Beckville Partners I, L.P.,
and its subsidiary Dorado Operating, Inc., was declared effective on
Sept. 9, 2008. The plan,
according to Bloomberg, provides for the payment in full of $19.75
million in secured claims, $3.2
million in unsecured claims, and another $5.6 million in claims filed by
suppliers who had the right
to file liens. The plan was confirmed by the United States Bankruptcy
Court for the Northern
District of Texas has approved late August, Bloomberg says.
William Rochelle at Bloomberg News reported in July that the Debtors
were granted permission by
the Court to sell their assets to two buyers for $74 million in the
aggregate:
1. Chesapeake Exploration LLC bought certain properties for
$39 million; and
2. NFR East Texas Basin LLC bought another group of properties
for $35 million.
Mr. Rochelle noted that the company has interests in 13 wells in Panola
and Rusk counties, Texas,
and that 11 wells are producing. According to Mr. Rochelle, the Debtors
owe $15.6 million to
secured lender DB Zwrin Special Opportunities Fund LP plus $8.6 million
to an affiliate, and
another $7.9 million is owed to suppliers and trade creditors.
Mr. Rochelle said the Debtors got a $24.7 million offer in November 2007
for some of their
properties, but that sale didn't close after the company refused to pay
a $4 million "exit fee" it says
the lenders demanded.
Dallas, Texas-based Dorado Beckville Partners I LP and Dorado
Operating Inc. -- http://www.doradoexploration.com/-- are
diversified oil and gas exploration and production companies
active in the East Texas Basin, the inland waters of South
Louisiana, and Western Alabama.
Beckville owns 64% to 75% of the working interest in each owned
gas unit. The properties owned by Beckville are operated by
Dorado Operating, a 99% limited partner of Beckville and a wholly owned
unit of Dorado
Exploration Inc.
Beckville and Dorado Operating sought chapter 11 protection on April 15,
2008 (Bankr. N.D. Texas
Case Nos. 08-31796 and 08-31800). Judge Barbara J. Houser presided the
case. Marcus Alan Helt,
Esq., and Richard McCoy Roberson, Esq., at Gardere Wynne Sewell LLP act
as counsel to Dorado
Beckville. Cox Smith Matthews Incorporated is counsel to Dorado
Operating. Dorado Beckville's
schedules showed total assets of $32,289,155 and total liabilities of
$31,419,576 and Dorado
Operating's schedules show total assets of $831,387 and total
liabilities of $13,122,417.
DRESSER INC: Moody's Holds Ratings on Completed Fin'l Statements
----------------------------------------------------------------
Moody's Investors Service affirmed Dresser, Inc.'s ratings (B2
Corporate Family Rating) and changed the rating outlook to stable
from negative. The outlook change follows the company's
completion of its audited annual financial statements through the
year ending 2007. Moody's had maintained a negative outlook on
Dresser's ratings due to the concern that the time to complete the
audited financial statements could be considerable and the
possibility that additional material accounting or internal
control issues would be identified during the process.
Dresser has completed the restatement of its 2003 and 2004 annual
financial statements, which represented its third round of
financial restatements since being spun off from Halliburton
Company in 2001, and has become current on its 2005, 2006 and 2007
annual financials. Reasons for the restatement included: (1)
hedge accounting documentation for derivatives, (2) foreign
currency translation, (3) income tax associated with intercompany
transfers, (4) timing of recognition of certain revenue items, (5)
deferred tax computation, (6) inventory valuation errors, (7)
consolidation elimination issues and (8) presentation issues
associated with segment reporting.
While Moody's notes that the financial impact of the restatements
was modest and that no other material matters surfaced during the
restatement process, Moody's believes that ongoing financial
statement filing delays created significant management
distractions.
Dresser's filing delays and restatements stemmed from the
company's material weaknesses in financial reporting processes and
internal controls, as well as a history of acquisitions paired
with a lack of investments in systems, controls and accounting
personnel. Dresser has made notable progress in remediating a
number of its material weaknesses; however, the company still has
substantial work to do in fully resolving remaining material
weaknesses, and these efforts will likely remain a distraction for
management.
While Moody's believes that management has sufficient information
to run the business, there is not an integrated IT platform across
all business lines that would enable tighter, more centralized
control of the business. Dresser is making efforts to address the
material weaknesses, including developing a more integrated system
for the company's various operations and investing in accounting
personnel.
Until the material weaknesses are fully resolved, some uncertainty
remains regarding the company's financial reporting, particularly
given the company's substantial international exposure and
decentralized operating structure. Moody's notes that these
weaknesses would be much more problematic if management were
facing a more challenging market environment.
Moody's affirmed these ratings of Dresser with a stable outlook:
B2 Corporate Family Rating, B2 Probability of Default Rating, B2
(LGD 3, 47%) rated senior secured revolving credit facility, B2
(LGD 3, 47%) rated first lien term loan, and B3 (LGD 5, 72%) rated
second lien term loan.
Moody's last rating action on Dresser was April 11, 2007, at which
time Moody's assigned Dresser's -- Current Ratings with a
negative rating outlook.
Dresser, Inc. is headquartered in Addison, Texas.
ECOVENTURE WIGGINS: Wants to Sell Unit, Boat Slip for $3.1MM
------------------------------------------------------------
Bloomberg News reports that Ecoventure Wiggins Pass, Ltd., and its
debtor-affiliates are asking the U.S. Bankruptcy Court for the
Middle District of Florida for authority to sell one unit plus a
boat slip at the luxury condominium project in Naples,
Florida, for $3.1 million.
The project is known as The Aqua at Pelican Isle Yacht Club, the
report specifies.
Headquartered in Tampa, Florida, Ecoventure Wiggins Pass, Ltd.
develops real estate. The company and two of its affiliates, Aqua
at Pelican Isle Yacht Club Marina Inc. and Pelican Isle Yacht Club
Partners, Ltd., filed for Chapter 11 protection on June 24, 2008
(Bankr. M.D. Fla. Lead Case No.08-09197). Harley E. Riedel, Esq.,
and Stephen R. Leslie, Esq., at Stichter, Riedel, Blain & Prosser,
represent the Debtors in their restructuring efforts. When the
Debtors filed for protection against their creditors, they listed
assets of $134,000,000 and debts of $101,000,000.
ELCOM INTERNATIONAL: Dec. 31 Balance Sheet Upside Down by $1.1MM
----------------------------------------------------------------
Elcom International Inc. reported that for the year ended
Dec. 31, 2007, it posted a net loss of $3,765,000 on revenues of
$5,377,000.
At Dec. 31, 2007, the company's balance sheet showed total assets
of $3,851,000, total liabilities of $5,041,000, and stockholders'
deficit of $1,190,000.
Malone Bailey, PC, in Houston, Texas, expressed substantial doubt
about Elcom International Inc.'s ability to continue as a going
concern after auditing the company's consolidated financial
statements for the year ended Dec. 31, 2007. The auditing firm
pointed to the company's recurring losses from operations and
accumulated deficit.
Elcom has incurred net losses every year since 1998. As of
December 31, 2007, Elcom had approximately $947,000 of cash and
cash equivalents and current assets of approximately $3,166,000.
Current liabilities amounted to approximately $4,858,000. Elcom
has incurred significant losses and has used cash in operating
activities in each of the last several years, including $3,744,000
in 2007, which raises substantial doubt about Elcom's ability to
continue as a going concern.
Elcom's ability to continue as a going concern is primarily
dependent upon its ability to grow revenue and attain further
operating efficiencies and, if necessary, to also attract
additional capital. Elcom believes that as a result of its recent
issuances of convertible loan notes, that it has the funds
required to perform under its current contracts. During October
and November 2007, Elcom received bridge loans from a non-US
investor of GBP750,000 -- approximately $1,551,000. The loans are
repayable upon demand and convertible at the option of the Payee
into shares of common stock, at the price of 3.5p per share,
subject to adjustment, downwards only, in the event that Common
Stock or any equity instruments are issued at a price lower than
3.5p at anytime. The loans are expected to be converted into
shares at some stage in the future. The convertible notes that
were issued in connection with these bridge loans were issued in
reliance on the exemption from registration under Regulation S
promulgated under the Securities Act of 1993, as amended. A
discount of $653,969 was recorded for the imputed interest rate
upon issuance of the convertible notes. The discount is amortized
utilizing the effective interest method over the period commencing
on the issuance date to the stated maturity date.
About Elcom International
Elcom International Inc. -- http://www.elcom.com/-- develops
online managed services for eProcurement and eMarketplaces that
enable buyers and sellers to transact seamlessly over the Internet
and create additional sources of revenue and increase market share
for partners. Its core products and services include application
software designed to automate the entire procurement process from
sourcing to spend analysis, hosting and application management
services including all hardware and software required to operate
an eProcurement and eMarketplace system and ongoing support to
manage catalogues and designated end users.
Elcom is headquartered outside of Boston, in Norwood,
Massachusetts. Its main country of operation is the U.S., however
it also provides additional support to its U.K. customer base
through home based employees. Elcom International Inc.'s stock
trades on the Pink Sheets in the United States under the symbol
ELCO.
EMILY MAESTAS: Case Summary & 15 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: Emily Maestas, Inc.
dba La Cosina Restaurant
dba La Cocina
dba Los Arcos
310 Old Los Alamos Highway
Espanola, NM 87532
Bankruptcy Case No.: 08-13042
Type of Business: The Debtor owns and operates restaurants.
Chapter 11 Petition Date: September 16, 2008
Court: New Mexico (Albuquerque)
Judge: James S. Starzynski
Debtor's Counsel: Moore, Berkson & Gandarilla, P.C.
Arin Elizabeth Berkson, Esq.
George M. Moore, Esq.
mbglaw@swcp.com
P.O. Box 216
Albuquerque, NM 87103-0216
Tel: (505) 242-1218
Fax: 505-242-2836
Estimated Assets: $500,000 to $1,000,000
Estimated Debts: $1,000,000 to $10,000,000
A copy of the Debtor's petition that includes its list of 15 Largest
Unsecured Creditors is available
at:
http://bankrupt.com/misc/nmb08-13042.pdf
ENCAP GOLF: Can Terminate Meadowlands Deal With Trump Organization
------------------------------------------------------------------
Newsday.com reports that the U.S. Bankruptcy Court for the
District of New Jersey gave EnCap Golf Holdings, LLC, permission
to terminate the Meadowlands Development Venture, a deal with the
Trump Organization to transform polluted wetlands in New Jersey
into a housing and golf complex.
According to Newsday.com, Trump assumed control of the project in
November 2007, after the state's inspector general spotted
problems in the project.
The attorneys for EnCap Golf told The Record of Bergen County that
the company doesn't have the money to go through with the Trump
deal. Newsday.com relates that the lawyers said the company
hasn't ruled out negotiating with Trump.
EnCap Golf has until Sept. 30 to file its Chapter 11
reorganization plan, Newsday.com reports.
About EnCap Golf
Headquartered in East Rutherford, New Jersey, EnCap Golf
Holdings, LLC, a subsidiary of Cherokee Investment Partners of
North Carolina, develops closed landfills and other brownfield
properties into golf courses.
The company and its affiliate, NJM Capital LLC, filed for Chapter
11 protection on May 8, 2008 (Bankr. D. N.J. Lead Case No. 08-
18581). Michael D. Sirota, Esq., at Cole, Schotz, Meisel, Forman
& Leonard, P.A., in Hackensack, New Jersey, represents the
Debtors. The U.S. Trustee for Region 3 appointed five creditors
to serve on an Official Committee of Unsecured Creditors.
Greenberg Traurig LLP represents the Committee in this case. The
Debtors' schedules disclose total assets of $70,056,038 and total
liabilities of $458,587,968.
ENRON CORP: Bankruptcy Court Won't Address Securities Issues
------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
granted in part and denied in part a request by Goldman, Sachs,
& Co. to exclude Enron Creditors Recovery Corp.'s Securities
Acts Arguments in the requests for summary judgment.
Goldman and other defendants argued that the doctrine of judicial
estoppel precluded Enron from asserting its Securities Act
Arguments in its objection to the requests for Summary Judgment.
Alternatively, Goldman and the Defendants asked the Bankruptcy
Code to refer the Summary Judgment Motions to the U.S. District
Court for the Southern District of New York.
Enron argued that the Bankruptcy Court can consider the
application of the Securities Act Arguments in relation to
whether the Enron Commercial Paper was deemed a security at the
time of its purported retirement.
The Court held that judicial estoppel might not apply the
issue of the Summary Judgment Motions if a party has a good
explanation for pursuing an incompatible theory, if no one
was misled, and if a party's prior position was based on
inadvertence or mistake. The Court held that Enron was not
"playing fast and loose" with the system and the integrity of the
judicial process was not compromised even if Enron first made
representations with the District Court about the relevance of the
Securities Act Arguments. Therefore, the Court said that the
concerns underlying the judicial estoppel does not apply in the
dispute between Enron and Goldman.
The Court held that the Bankruptcy Court has no jurisdiction over
the Securities Act Arguments issues in relation to the Summary
Judgment Motions. The Court held that it is premature for the
summary judgment request to be referred to the District Court as
there are certain preliminary issues that may result in never
reaching any Securities Act issues.
The Court denied Goldman's request to strike portions of Enron's
brief or opposition containing issues related to the Securities
Act Arguments and Goldman's alternative relief to refer the
summary judgment requests to the District Court is denied.
However, the Court granted Goldman's request not to consider the
Securities Act Arguments in the summary judgment requests.
Before the hearing on the Securities Act dispute, UBS AG, UBS
Global Asset Management (Americas) Inc., Central American Bank
for Economic Integration, and Banco de Guatemala; EchoStar
Corporation; Dell Computer Products Europe, Ltd.; WinCo Holdings,
Inc.; Banca Serfin, S.A.; Piper Jaffray & Co.; New Castle County;
Banco Provincial Overseas, N.V.; AIM Floating Rate Fund; Cascade
Investment, L.L.C.; and Abercombrie & Fitch Co., Abercombrie &
Fitch Stores, Inc., and Abercombrie & Fitch Management Co.; in
separate filings, join in the requests to exclude:
(a) the expert reports, proposed testimony, and opinions of
Enron Creditors Recovery Corp.'s seven putative experts,
Joseph Franco, James Rogers, Charles Mooney, Susanne
Trimbath, Nikunj Kapadia, Paul Wachtel, and Thomas Blake,
asserting that the Enron Experts lack sufficient
reliability to be considered admissible in the Motions
for Summary Judgment; and
(b) Enron's Securities Acts Arguments in the Motions for
Summary Judgment because Enron is barred by the
doctrine of judicial estoppel.
Michael Schatzow, Esq., at Venable LLP, in Baltimore, Maryland,
on behalf of Enron, argued that Goldman Sachs' judicial estoppel
argument fails because both Enron and the Southern New York
District Court have clearly stated that withdrawal of the
reference was not necessary since Enron's claims could be decided
by the Bankruptcy Court without ever reaching the Securities Law
Argument.
Enron has asked the Court to deny Goldman's Motion to Exclude the
Experts' Opinions because its accusations in the request are
baseless and it fails in numerous levels.
Goldman Sachs asserted that the merits of Enron's Securities Act
Arguments is nothing more than a repeat of Goldman's argument of
whether Enron has established a genuine dispute of material fact
regarding transparent manipulation. Goldman also argued that
Enron failed to raise the Securities Act Argument in its answers
to Goldman's contention interrogatories and therefore, Enron has
waived the right to raise the Argument in its objection to
Goldman's Motion for Summary Judgment.
In a separate order, the Court allowed the Securities and
Exchange Commission to intervene in the Enron adversary
proceeding, after determining that SEC's intervention in the
Adversary Proceeding will not prejudice Enron. The Court also
allowed the SEC to file a brief in support of the Defendants'
Summary Judgment Requests.
Enron opposed the SEC's intervention in the Adversary Proceeding,
arguing that Enron has already proven that the Defendants had no
expectation of finality for the commercial paper transfers as they
were repeatedly advised and warned that the Enron CP prepayments
were subject to preference risk and could be avoided if Enron
filed for bankruptcy. Therefore, the goals relied upon by the SEC
to support its summary judgment request has not valid relevance to
the Enron CP prepayments.
About Enron Corp.
Based in Houston, Texas, Enron Corporation filed for chapter 11
protection on Dec. 2, 2001 (Bankr. S.D.N.Y. Case No. 01-16033)
following controversy over accounting procedures, which caused
Enron's stock price and credit rating to drop sharply.
Albert Togut, Esq., at Togut Segal & Segal LLP, Brian S. Rosen,
Esq., Martin Soslan, Esq., Melanie Gray, Esq., Michael P. Kessler,
Esq., Sylvia Ann Mayer, Esq., at Weil, Gotshal & Manges LLP,
Frederick W.H. Carter, Esq., Michael Schatzow, Esq., Robert L.
Wilkins, Esq., at Venable, Baetjer and Howard, LLP, and Mark C.
Ellenberg, Esq., at Cadwalader, Wickersham & Taft, LLP,
represented the Debtors. Jeffrey K. Milton, Esq., Luc A. Despins,
Esq., Matthew Scott Barr, Esq., and Paul D. Malek, Esq., at
Milbank, Tweed, Hadley & McCloy LLP represented the Official
Committee of Unsecured Creditors.
The Debtors filed their Chapter Plan and Disclosure Statement on
July 11, 2003. On Jan. 9, 2004, they filed their fifth Amended
Plan and on the same day the Court approved the adequacy of the
Disclosure Statement. On July 15, 2004, the Court confirmed the
Debtors' Modified Fifth Amended Plan and that plan was declared
effective on Nov. 17, 2004. (Enron Bankruptcy News, Issue No.
210; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
ENRON CORP: Texas Court Okays $7.2 Billion Allocation Plan
----------------------------------------------------------
The Hon. Melinda Harmon of the U.S. District Court for the
Southern District of Texas approve a plan of allocation proposed
by the Regents of the University of California, as lead plaintiff
in a class action suit commenced by a group of Enron Corp.
shareholders against Enron's former lenders and officers.
The allocation plan contemplates a distribution of $7,227,000,000
in settlement amounts UC obtained from several defendants in the
suit on behalf of Enron's investors.
The case is In re Mark Newby, et al., vs. Enron Corporation (Case
No. H-01-3624).
The settlement fund is comprised of these recoveries:
CIBC $2,400,000,000
Citigroup 2,000,000,000
JPMorgan Chase 2,200,000,000
Lehman Brothers 222,500,000
Outside Directors/Harrison 168,000,000
Arthur Andersen 72,500,000
Bank of America 69,000,000
LJM2 51,900,000
Andersen Worldwide 33,330,000
Kirkland & Ellis 10,160,000
--------------
$7,227,000,000
Judge Harmon found that the Regents has given the best notice
practicable under the circumstances and has fully satisfied all
applicable notice requirements under Rules 23(e) and 23(c)(2) of
the Federal Rules of Civil Procedure. The Plan of Allocation,
according to the Regents, was described in detail in a notice sent
to all persons and their beneficiaries who purchased or acquired
any Enron securities or Enron-related securities by any method
from September 9, 1997, to December 2, 2001.
The Plan of Allocation, among other things, outlines procedures
to distribute the settlement proceeds to about 1,500,000
individual and institutional investors, including pension funds.
The Plan requires that eligible investors must have purchased
Enron stock between September 9, 1997, and
December 2, 2001.
Under the Plan, investors will receive an average of $6.79 per
share of common stock and an average of $168.50 per share of
preferred stock. The Plan also provides that the actual recovery
received by class members depends on the timing of their purchases
and sales of Enron securities as well as other factors.
Several parties objected to the Plan, arguing among other things,
that (a) the eligible period for reimbursement of December 2,
2001, was too early; (b) the Plan excludes persons who acquired
Enron securities during or prior to the eligible period by means
of a gift, inheritance or operation of law and held them during
the eligible period; and (c) the Plan improperly intermingles
funds from different settlements and thereby unfairly dilutes the
recovery of of certain class member owners.
Objections filed by several class members, including the J.
Corman Family Limited Partnership, the Ruben Parties, and
Nathanial Pulsifer, as Trustee of the Shooter's Hill Revocable
Trust, have been resolved. Objections raised by the Stanley
Majors, Larry Fenstad and Dorothy Lancaster McCoppin, the
Silvercreek Plaintiffs, Wiley M. Cauthen, the Fiduciary
Counselors, and P.E. Ilavia, were overruled, after Judge Harmon
found that, among other things, that the Plan was negotiated at
arm's length, with no evidence or allegations of collusion, and
that the allocation of settlement proceeds is fair, reasonable
and adequate for class members.
The $7,227,000,000 settlement, according to The Houston
Chronicle, is the largest ever in U.S. securities litigation.
The second largest was in WorldCom's securities litigation with a
$6,100,000,000 settlement, the Chronicle said, citing a report
prepared by the Securities Class Action Clearinghouse at Stanford
University.
About Enron Corp.
Based in Houston, Texas, Enron Corporation filed for chapter 11
protection on Dec. 2, 2001 (Bankr. S.D.N.Y. Case No. 01-16033)
following controversy over accounting procedures, which caused
Enron's stock price and credit rating to drop sharply.
Albert Togut, Esq., at Togut Segal & Segal LLP, Brian S. Rosen,
Esq., Martin Soslan, Esq., Melanie Gray, Esq., Michael P. Kessler,
Esq., Sylvia Ann Mayer, Esq., at Weil, Gotshal & Manges LLP,
Frederick W.H. Carter, Esq., Michael Schatzow, Esq., Robert L.
Wilkins, Esq., at Venable, Baetjer and Howard, LLP, and Mark C.
Ellenberg, Esq., at Cadwalader, Wickersham & Taft, LLP,
represented the Debtors. Jeffrey K. Milton, Esq., Luc A. Despins,
Esq., Matthew Scott Barr, Esq., and Paul D. Malek, Esq., at
Milbank, Tweed, Hadley & McCloy LLP represented the Official
Committee of Unsecured Creditors.
The Debtors filed their Chapter Plan and Disclosure Statement on
July 11, 2003. On Jan. 9, 2004, they filed their fifth Amended
Plan and on the same day the Court approved the adequacy of the
Disclosure Statement. On July 15, 2004, the Court confirmed the
Debtors' Modified Fifth Amended Plan and that plan was declared
effective on Nov. 17, 2004. (Enron Bankruptcy News, Issue No.
210; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
ENRON CORP: Coughlin Gets $688MM in Fees From Shareholder Suit
--------------------------------------------------------------
The Hon. Melinda Harmon of the U.S. District Court for the
Southern District of Texas, granted payment of $688,000,000, plus
interest, to Coughlin Stoia Rudman & Robbins LLP, the lead
counsel for the class of shareholders in their lawsuit against
Enron Corp.
Coughlin's fees represents 9.52% of the $7,227,000,000 total
recovery, in accordance with a fee agreement negotiated with the
Regents of the University of California at the outset of the
litigation. Judge Harmon held that the fee agreement was
negotiated at arm's length, is fair and reasonable, and should be
enforced as a matter of law under the Private Securities
Litigation Reform Act of 1995.
Judge Harmon, in a 209-page opinion, noted that the shareholders'
litigation has been going since the fall of 2001, over six years,
and the record attests to a long, difficult fight that justifies
honoring the fee agreement's 9.52%. The sheer size, the diversity
of Enron securities and investors, and the risks posed by a
lengthy duration of a complex litigation were daunting, especially
because under the fee agreement Coughlin agreed to advance all
costs and to look only to an uncertain recovery for reimbursement
of expenses and payment of attorneys' fees in what was bound to be
a long and difficult litigation, Judge Harmon further noted.
Judge Harmon also found that Coughlin's heavy use of experienced
and skilled partner-level attorneys, which was objected to, was
appropriate. The Court found that the evidence does not indicate
overstaffing, but instead reflects a most efficient use of staff.
Judge Harmon said, with Coughlin's subsequent substantial
work up to and including December 15, 2007, including the Plan of
Allocation, Coughlin and co-counsel collectively have spent
a total of 289,593.35 hours on the Enron shareholder litigation
at a blended hourly rate of $456, resulting in a lodestar of
$131,971,583.20, and they request a multiplier of 5.2.
Judge Harmon noted that only the Fiduciary Counselors acting on
behalf of the Enron Savings Plan and the Enron Stock Option Plan
has voiced objections to the fee request. She found that general
acceptance of the requested fee amount by all the pension funds
and all but one institutional investor strongly supports the
reasonableness of enforcing the fee agreement.
"We're pleased that the Court recognizes the tremendous amount of
work, skill and determination required to overcome significant
obstacles in this complicated case and recover over $7 billion for
defrauded investors," said Patrick Coughlin, chief trial counsel
for the firm that ran the litigation, told The Houston Chronicle.
Coughlin's $688,000,000 of legal fees is the largest fees
ever paid in the history of U.S. securities litigation, the
Chronicle said.
About Enron Corp.
Based in Houston, Texas, Enron Corporation filed for chapter 11
protection on Dec. 2, 2001 (Bankr. S.D.N.Y. Case No. 01-16033)
following controversy over accounting procedures, which caused
Enron's stock price and credit rating to drop sharply.
Albert Togut, Esq., at Togut Segal & Segal LLP, Brian S. Rosen,
Esq., Martin Soslan, Esq., Melanie Gray, Esq., Michael P. Kessler,
Esq., Sylvia Ann Mayer, Esq., at Weil, Gotshal & Manges LLP,
Frederick W.H. Carter, Esq., Michael Schatzow, Esq., Robert L.
Wilkins, Esq., at Venable, Baetjer and Howard, LLP, and Mark C.
Ellenberg, Esq., at Cadwalader, Wickersham & Taft, LLP,
represented the Debtors. Jeffrey K. Milton, Esq., Luc A. Despins,
Esq., Matthew Scott Barr, Esq., and Paul D. Malek, Esq., at
Milbank, Tweed, Hadley & McCloy LLP represented the Official
Committee of Unsecured Creditors.
The Debtors filed their Chapter Plan and Disclosure Statement on
July 11, 2003. On Jan. 9, 2004, they filed their fifth Amended
Plan and on the same day the Court approved the adequacy of the
Disclosure Statement. On July 15, 2004, the Court confirmed the
Debtors' Modified Fifth Amended Plan and that plan was declared
effective on Nov. 17, 2004. (Enron Bankruptcy News, Issue No.
210; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
EPICEPT CORP: Compensation Panel Okays Grant of 205,000 Options
---------------------------------------------------------------
On September 8, 2008, the Compensation Committee of the Board of
Directors of EpiCept Corporation approved the grant of 205,000
options to purchase shares of the company's common stock, par
value $0.0001, to certain of the company's executive officers
pursuant to the company's 2005 Equity Incentive Plan. The Options
expire on September 8, 2018, have an exercise price of $0.63 per
share, and vest immediately.
The Option grants were given to:
Executive No. of Options
--------- --------------
John V. Talley
President and Chief Executive Officer 75,000
Robert W. Cook
Chief Financial Officer and
Senior Vice President, Finance and Administration 15,000
Stephane Allard
Chief Medical Officer 50,000
Ben Tseng
Chief Scientific Officer 15,000
Dileep Bhagwat
Senior Vice President, Pharmaceutical Development 50,000
About EpiCept Corporation
Based in Tarrytown, New York, EpiCept Corporation (NASDAQ:EPCT) --
http://www.epicept.com/-- is a specialty pharmaceutical company
focused on the development of pharmaceutical products for the
treatment of cancer and pain. The company has a portfolio of five
product candidates in active stages of development. It includes
an oncology product candidate submitted for European registration,
two oncology compounds, a pain product candidate for the treatment
of peripheral neuropathies and another pain product candidate for
the treatment of acute back pain. The two wholly owned
subsidiaries of the company are Maxim, based in San Diego,
California, and EpiCept GmbH, based in Munich, Germany, which are
engaged in research and development activities.
EpiCept Corp.'s consolidated balance sheet at March 31, 2008,
showed a stockholders' deficit of $15,570,000, compared to a
deficit of $14.1 million at Dec. 31, 2007.
Going Concern Doubt
Deloitte & Touche LLP, in Parsippany, New Jersey, expressed
substantial doubt about EpiCept Corp.'s ability to continue as a
going concern after auditing the company's consolidated financial
statements for the year ended Dec. 31, 2007. The auditing firm
pointed to the company's recurring losses from operations and
stockholders' deficit.
The company disclosed in its Form 10-Q for the first quarter ended
March 31, 2008, that to date it has not generated any meaningful
revenues from the sale of products and may not generate any such
revenues for a number of years, if at all. As a result, the
company has an accumulated deficit of $176,926,000 as of March 31,
2008, and may incur operating losses for a number of years.
EPIX PHARMA: Collaboration With Bayer Schering Ends March 2009
--------------------------------------------------------------
On September 4, 2008, EPIX Pharmaceuticals, Inc. disclosed in a
regulatory filing with the Securities and Exchange Commission that
Bayer Schering Pharma AG, Germany notified the Company that it is
terminating the Amended and Restated Strategic Collaboration
Agreement by and between the Company and Bayer Schering, dated as
of June 9, 2000 and amended as of December 22, 2000, effective
March 1, 2009. Accordingly, the worldwide commercial rights for
the Company's blood pool magnetic resonance angiography agent,
Vasovist, will be transferred back to the Company on that date.
The parties are negotiating the final terms of the transfer of
those commercial rights.
Under the Agreement, the Company granted Bayer Schering an
exclusive license to co-develop and market Vasovist worldwide.
Generally, each party to the Agreement shares equally in Vasovist
costs and profits in the United States. Pursuant to the terms of
the Agreement, the Company retained responsibility for completing
clinical trials and filing for U.S. Food and Drug Administration
approval in the United States and Bayer Schering retained
responsibility for clinical and regulatory activities for Vasovist
outside the United States. In addition, the Company is entitled to
receive a royalty on products sold outside the United States and,
if Vasovist is approved and launched in the United States, a
percentage of Bayer Schering's operating profit margin on products
sold in the United States.
Under the Agreement, Bayer Schering had the right to terminate the
Agreement at any time on a region-by-region basis or in its
entirety, upon six months written notice to the Company, which
right was exercised as described above. In addition, either party
may terminate the Agreement while still in effect upon thirty days
notice if there is a material breach.
In a press release, the company said that until March 1, 2009,
Bayer Schering Pharma will continue to provide continued supply of
Vasovist in the 19 countries where it is currently marketed.
"We are pleased to regain complete worldwide commercial rights for
Vasovist which has a PDUFA date of December 31, 2008," said Elkan
Gamzu, Ph.D., interim chief executive officer of EPIX. "Pending
FDA approval, Vasovist is positioned to become the first MRA
contrast agent approved in the United States and it could be
launched in 2009. Our goal remains to maximize the commercial
value of Vasovist and we are committed to executing our
monetization strategy which includes finding a marketing and
commercialization partner for Vasovist."
"Vasovist is a first-in-class blood specific MRA contrast agent
with several distinctive characteristics that we believe may allow
it to become a market leader in the United States," added Chen
Schor, chief business officer of EPIX. "Vasovist has demonstrated
good resolution angiography, a high signal per dose, a long
imaging window timeframe and single-dose imaging of multiple
vessel beds. We believe these characteristics coupled with a
streamlined commercial rights profile should make this an
appealing opportunity for a company interested in building or
strengthening its competitive position in the MRA market."
According to Bayer Schering Pharma, the company is committed to
ensuring that patients and physicians in the countries where
Vasovist is currently marketed have continued access to Vasovist
during this transition period.
About EPIX Pharmaceuticals
Headquartered in Lexington, Mass., EPIX Pharmaceuticals Inc.
(NasdaqGM: EPIX) -- http://www.epixmed.com/-- is a
biopharmaceutical company focused on discovering and developing
novel therapeutics through the use of its proprietary and highly
efficient in silico drug discovery platform. The company has a
pipeline of internally-discovered drug candidates currently in
clinical development to treat diseases of the central nervous
system and lung conditions. EPIX also has collaborations with
leading organizations, including GlaxoSmithKline, Amgen, Cystic
Fibrosis Foundation Therapeutics, and Bayer Schering Pharma AG,
Germany.
The Troubled Company Reporter reported on Aug. 27, 2008, that at
June 30, 2008, the company's balance sheet showed total assets of
$63.6 million and total liabilities of $139.2 million, resulting
in a stockholders' deficit of $75.6 million. Net loss for the
second quarter ended June 30, 2008 was $2.3 million, compared with
$18.0 million for the quarter ended June 30, 2007.
FANNIE MAE: Regulator Opposes Ex-CEO's Severance Payment
--------------------------------------------------------
James R. Hagerty at the Wall Street Journal reports that the
Federal Housing Finance Agency, the regulator of Fannie Mae and
Freddie Mac which has assumed control of the companies, said on
Sunday that it disagrees to the companies' severance payments for
their ousted chief executive officers -- Fannie Mae's CEO Daniel
H. Mudd, and Freddie Mac's Richard F. Syron.
According to WSJ, FHFA cited "applicable statute and regulation"
for its decision not to allow Freddie Mac and Fannie Mae to make
the severance payments.
Published reports say that the former CEOs would have received
millions of dollars in severance payments under their contracts.
ABI World reports that Senator Barack Obama and two other
Democrats have urged federal housing regulators to cut the exit-
compensation package of the former CEOs.
If the regulator hadn't intervened, Mr. Mudd's exit package could
total up to $8 million, and Mr. Syron could have $15 million, WSJ
says, citing James F. Reda & Associates LLC senior consultant,
David Schmidt. WSJ states that the severance payments include
pensions, continuing benefits, and other payments the companies'
boards might grant.
According to WSJ, an FHFA official said on Monday that Messrs.
Mudd and Syron are still eligible for the pensions and 401k
savings plans they built up while working at the two giant
mortgage investors. Mr. Mudd's pension and 401k plan has an
estimated value of $5.6 million, and for Mr. Syron the figure is
$4 million, WSJ says, citing the official.
The FHFA, WSJ reports, won't allow additional severance payments
of about $2.3 million that could have gone to Mr. Mudd and $10.3
million for Mr. Syron.
About Fannie Mae
The Federal National Mortgage Association -- (FNMA) (NYSE: FNM) --
commonly known as Fannie Mae, is a shareholder-owned U.S.
government-sponsored enterprise. Fannie Mae has a federal charter
and operates in America's secondary mortgage market, providing
mortgage bankers and other lenders funds to lend to home buyers at
low rates.
Fannie Mae was created in 1938, under President Franklin D.
Roosevelt, at a time when millions of families could not become
homeowners, or risked losing their homes, for lack of a consistent
supply of mortgage funds across America. The government
established Fannie Mae to expand the flow of mortgage funds in all
communities, at all times, under all economic conditions, and to
help lower the costs to buy a home.
In 1968, Fannie Mae was re-chartered by the U.S. Congress as a
shareholder-owned company, funded solely with private capital
raised from investors on Wall Street and around the world.
Fannie Mae is the U.S. largest mortgage buyer, according to The
New York Times.
FOCUS ENHANCEMENTS: Files for Ch. 11 Bankruptcy in California
-------------------------------------------------------------
Focus Enhancements Inc. filed a voluntary petition for relief
under Chapter 11 of the United States Bankruptcy Code in the
United States Bankruptcy Court for the Northern District of
California. The company will continue to operate its business as
a "debtor-in-possession" under the jurisdiction of the Court.
On Sept. 15, 2008, the company received notification from the
NASDAQ Listing Qualifications Panel that the Panel has determined
to delist the company's securities from The NASDAQ Capital Market,
effective at the open of business on Sept. 17, 2008.
The company had presented a plan of compliance on Sept. 4, 2008,
to the NASDAQ Listing Qualifications Panel and requested
additional time to regain compliance with the minimum
stockholders' equity and bid price requirements for continued
listing on The NASDAQ Capital Market.
On Sept. 15, 2008, six of the company's seven Board members,
having approved a resolution to file a voluntary petition for
relief under Chapter 11 of the United States Bankruptcy Code,
submitted their letters of resignation, effective immediately.
Brett A. Moyer, President and Chief Executive Officer of Focus
Enhancements Inc. remained as the company's sole Board member.
Second Quarter 2008 Financial Results
The company's revenue for the second quarter of 2008 was $4.0
million, compared to $8.4 million reported for the same quarter of
2007. The decrease is primarily attributable to lower DTE disk
recorder sales. Operating expenses for the second quarter of 2008
were $7.4 million, compared with $7.6 million in the second
quarter of 2007. R&D expenses were $4.2 million, compared to
$4.0 million in 2007. Net loss for the second quarter was $6.7
million versus a net loss of $4.0 million in the same quarter of
2007.
Revenue for the six months ended June 30, 2008 was $7.9 million,
compared to $15.4 million reported for the same period of 2007.
Net loss for the six month period was $12.7 million versus a net
loss of $8.4 million in the same period of 2007.
A full-text copy of the company's Second Quarter 2008 Financial
Results is available for free at:
http://ResearchArchives.com/t/s?3231
Headquartered in Campbell, California, Focus Enhancements, Inc.
(NASDAQ:FCSE) -- http://www.videonics.com/-- designs video and
wireless AV technologies. Its semiconductor group develops
wireless IC chip sets based on WiMedia UWB and 802.11a standards,
and design as well as markets portable ICs to the video
convergence, portable media, navigation systems and smartphone
markets. The company's system group develops video products for
the digital media markets, with customers in the broadcast, video
production, digital signage and digital asset management markets.
FOCUS ENHANCEMENTS: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------------
Debtor: Focus Enhancements, Inc.
1370 Dell Ave.
Campbell, CA 95008
Bankruptcy Case No.: 08-55216
Type of Business: The Debtor designs video and wireless
technology.
See: http://www.videonics.com/
Chapter 11 Petition Date: September 16, 2008
Court: Northern District of California (San Jose)
Judge: Roger L. Efremsky
Debtor's Counsel: Gregory A. Rougeau, Esq.
rougeau@mrlawsf.com
Law Offices of Manasian and Rougeau
400 Montgomery St. #1000
San Francisco, CA 94104
Tel: (415) 291-8425
Total Assets: $9,695,000
Total Debts: $37,429,000
Debtor's 20 Largest Unsecured Creditors:
Entity Claim Amount
------ ------------
FurtherTech $292,728
8F, No 421, Sung Han Road
Taipei, Taiwan, ROC
Tel: 886-2-2759-2608
Samsung Semiconductor $281,204
3655 N. First St.
San Jose, CA 95134
Tel: (408) 544-4071
Manatt Phelps Phillips $270,034
1001 Page Mill Rd., Bldg 2
Palo Alto, CA 94304
Tel: (310) 312-4000
Synopsys Inc. $212,611
BTW Inc. $249,269
ARM Ltd. $210,000
Fastrack Design $170,000
Bell Microproducts $166,710
Avent Electronics Marketing $126,184
Toshiba $86,000
IBM $85,500
MIPSABG Chipidea, LDA $80,000
Marketing by Design $72,118
Arden Realty Ltd. $70,644
Synplicity Inc. $68,325
Arrow Electronics Inc. $53,261
H-K & Associates $51,784
Burr, Pilger & Mayer LLP $44,140
Nexergy, Inc. $41,827
G-Met Solutions $33,920
FORD MOTOR: Tracinda Corp. Discloses 6.43% Equity Stake
-------------------------------------------------------
Tracinda Corporation and Kirk Kerkorian disclosed in a Schedule
13D filing with the U.S. Securities and Exchange Commission that
they may be deemed to beneficially own 140,800,000 shares of Ford
Motor Co. common stock or 6.43% of the outstanding shares.
Percentage calculated on the basis of 2,190,498,174 shares of
common stock issued and outstanding as of July 29, 2008.
As of Aug. 28, 2008, Tracinda entered into Value Sharing
Agreements with Christensen, Glaser, Fink, Jacobs, Weil & Shapiro,
LLP, Jerome B. York and Alex Yemenidjian. The Value Sharing
agreement for Mr. York references an existing Agreement for
Services between Tracinda and Mr. York pursuant to which Mr. York
provides consulting services.
Copies of the Value Sharing Agreements are available for free at:
-- Value Sharing Agreement between Tracinda and
Christensen
http://researcharchives.com/t/s?3202
-- Value Sharing Agreement between Tracinda and
Jerome B. York
http://researcharchives.com/t/s?3203
-- Value Sharing Agreement between Tracinda and
Alex Yemenidjian
http://researcharchives.com/t/s?3204
-- Agreement for Services between Tracinda and
Jerome B. York
http://researcharchives.com/t/s?3205
About Ford Motor Co.
Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) --
http://www.ford.com/-- manufactures or distributes automobiles in
200 markets across six continents. With about 260,000 employees
and about 100 plants worldwide, the company's core and affiliated
automotive brands include Ford, Jaguar, Land Rover, Lincoln,
Mercury, Volvo, Aston Martin, and Mazda. The company provides
financial services through Ford Motor Credit Company.
The company has operations in Japan in the Asia Pacific region. In
Europe, the company maintains a presence in Sweden, and the United
Kingdom. The company also distributes its brands in various
Latin-American regions, including Argentina and Brazil.
* * *
As reported in the Troubled Company Reporter on Aug. 5, 2008,
Fitch Ratings has downgraded the issuer default rating of Ford
Motor Company and Ford Motor Credit Company LLC to 'B-' from 'B'.
The Rating Outlook remains Negative. The downgrade reflects: the
further deterioration in Ford's U.S. sales as a result of economic
conditions, an adverse product mix and the most recent jump in gas
prices; portfolio deterioration at Ford Credit and heightened
concern regarding economic access to capital to support financing
requirements; and escalating commodity costs that will remain a
significant offset to cost reduction efforts.
FORD MOTOR: June 30 Balance Sheet Upside-Down by $1.7 Billion
-------------------------------------------------------------
Ford Motor Co., in a Securities and Exchange Commission filing,
disclosed $265.3 billion in total assets, $265.52 billion in total
liabilities, resulting in $1.7 billion in total shareholders'
deficit, as of June 2008.
Ford posted $8.67 billion in net losses on $41.51 billion in net
revenues for the second quarter ended June 30, 2008, compared with
$750 million in net profit on $44.24 billion in net revenues for
the same period in 2007.
Ford posted $8.57 billion in net losses on $85.04 billion in net
revenues for the first half ended June 30, 2008, compared with
$468 million in net profit on $87.26 billion in net revenues for
the same period in 2007.
About Ford Motor Co.
Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) --
http://www.ford.com/-- manufactures or distributes automobiles in
200 markets across six continents. With about 260,000 employees
and about 100 plants worldwide, the company's core and affiliated
automotive brands include Ford, Jaguar, Land Rover, Lincoln,
Mercury, Volvo, Aston Martin, and Mazda. The company provides
financial services through Ford Motor Credit Company.
The company has operations in Japan in the Asia Pacific region. In
Europe, the company maintains a presence in Sweden, and the United
Kingdom. The company also distributes its brands in various
Latin-American regions, including Argentina and Brazil.
* * *
As reported in the Troubled Company Reporter on Aug. 5, 2008,
Fitch Ratings has downgraded the issuer default rating of Ford
Motor Company and Ford Motor Credit Company LLC to 'B-' from 'B'.
The Rating Outlook remains Negative. The downgrade reflects: the
further deterioration in Ford's U.S. sales as a result of economic
conditions, an adverse product mix and the most recent jump in gas
prices; portfolio deterioration at Ford Credit and heightened
concern regarding economic access to capital to support financing
requirements; and escalating commodity costs that will remain a
significant offset to cost reduction efforts.
FREDDIE MAC: Regulator Opposes Ex-CEO's Severance Payment
---------------------------------------------------------
James R. Hagerty at the Wall Street Journal reports that the
Federal Housing Finance Agency, the regulator of Fannie Mae and
Freddie Mac which has assumed control of the companies, said on
Sunday that it disagrees to the companies' severance payments for
their ousted chief executive officers -- Fannie Mae's CEO Daniel
H. Mudd, and Freddie Mac's Richard F. Syron.
According to WSJ, FHFA cited "applicable statute and regulation"
for its decision not to allow Freddie Mac and Fannie Mae to make
the severance payments.
Published reports say that the former CEOs would have received
millions of dollars in severance payments under their contracts.
ABI World reports that Senator Barack Obama and two other
Democrats have urged federal housing regulators to cut the exit-
compensation package of the former CEOs.
If the regulator hadn't intervened, Mr. Mudd's exit package could
total up to $8 million, and Mr. Syron could have $15 million, WSJ
says, citing James F. Reda & Associates LLC senior consultant,
David Schmidt. WSJ states that the severance payments include
pensions, continuing benefits, and other payments the companies'
boards might grant.
According to WSJ, an FHFA official said on Monday that Messrs.
Mudd and Syron are still eligible for the pensions and 401k
savings plans they built up while working at the two giant
mortgage investors. Mr. Mudd's pension and 401k plan has an
estimated value of $5.6 million, and for Mr. Syron the figure is
$4 million, WSJ says, citing the official.
The FHFA, WSJ reports, won't allow additional severance payments
of about $2.3 million that could have gone to Mr. Mudd and $10.3
million for Mr. Syron.
About Freddie Mac
The Federal Home Loan Mortgage Corporation -- (FHLMC) NYSE: FRE --
commonly known as Freddie Mac, is a stockholder-owned government-
sponsored enterprise authorized to make loans and loan guarantees.
Freddie Mac was created in 1970 to provide a continuous and low
cost source of credit to finance America's housing.
Freddie Mac conducts its business primarily by buying mortgages
from lenders, packaging the mortgages into securities and selling
the securities -- guaranteed by Freddie Mac -- to investors.
Mortgage lenders use the proceeds from selling loans to Freddie
Mac to fund new mortgages, constantly replenishing the pool of
funds available for lending to homebuyers and apartment owners.
FREMONT GENERAL: Nov. 10 Set as Deadline for Filing Claims
----------------------------------------------------------
Aaron Brooks of Kurtzman Carson Consultants LLC filed on
Sept. 12, 2008, a certificate of service of notice of bar dates
for filing proofs of claim in Fremont General's bankruptcy case.
He certified that on Sept. 11, 2008, he served these documents:
-- Notice of Bar Dates for Filing Proofs of Claim
-- Proof of Claim Form
-- Notice re Access to Information Concerning the
Bankruptcy case
on the interested parties.
The notice indicate these deadlines for filing proofs of claim:
Nov. 10 -- general claims bar date
Dec. 10 -- any entity, such as guarantor, surety,
endorser, or co-debtor, under Sec. 501(b) of
the Bankruptcy Code and Rule 3005 of the
Federal Rules of Bankruptcy Procedure.
Dec. 15 -- governmental bar date
In its order, the United States Bankruptcy Court for the Central
District of California also set these deadlines for the filing of
proofs of claim:
a) Avoidance Claims Bar -- later of (a) the General Bar
Date; Date or (b) the first
business day that is 30 calendar
days after entry of the order
authorizing the avoidance of
the transfer;
b) Claims arising under -- later of (a) the General Bar
Bankruptcy Sec. 502(i) Date; or (b) the first business
with respect to the day that is 30 calendar days
assessment of certain after such tax claim arises
taxes (502(i) Bar Date)
c) Rejection Bar Date -- the later of (a) the General Bar
(pursuant to Date; or (b) the first business
Bankruptcy Sec. 502(g) day that is 30 calendar days
after the entry of the order
approving the rejection of the
executory contract or unexpired
lease
Prior Bar Date and the Prior Notice Date Are Vacated
The Court ruled at a status conference on August 14, 2008, that
the general bar date would be Oct. 22, 2008, and that a bar date
notice was to be served by August 22, 2008. At the request of the
Debtor and the Official Committee of Unsecured Creditors, the
Court ordered that the prior bar date and the prior notice date be
vacated.
Proofs of claim must be filed with the Clerk of Court, by mail, in
person, electronically, or by personal service by 4:00 p.m.
(California time) on the applicable Claims Bar Date. Proofs of
claim may not be filed by facsimile or electronic mail. Proofs of
claim that previously were filed with the Clerk of the Court need
not be re-filed.
If a creditor does not timely file with the Court a proof of
claim, and if that creditor's claim is not scheduled, is scheduled
in the amount of $0, or is scheduled as disputed, unknown,
contingent, or unliquidated in the Debtor's Schedules, then that
creditor will be forever barred from: a) participating in any
manner in Debtors' Chapter 11 cases; b) voting with respect to any
Chapter 11 plan; and c) receiving any distribution under any
Chapter 11 plan confirmed in the Debtor's case.
About Fremont General
Based in Santa Monica, Calif., Fremont General Corp. (OTC: FMNTQ)
-- http://www.fremontgeneral.com/-- was a financial services
holding company with $8.8 billion in total assets at Sept. 30,
2007. Fremont General ceased being a financial services holding
company on July 25, 2008, when its wholly owned bank subsidiary,
Fremont Reorganizing Corporation (f/k/a Fremont Investment & Loan)
completed the sale of its assets, including all of its 22
branches, and 100% of its $5.2 billion of deposits to
CapitalSource Bank.
Fremont General filed for Chapter 11 protection on June 18, 2008,
(Bankr. C.D. Calif. Case No. 08-13421). Robert W. Jones, Esq.,
and J. Maxwell Tucker, Esq., at Patton Boggs LLP, are the proposed
counsel for the Debtor. Theodore Stolman, Esq., and Scott H. Yun,
at Stutman Treister & Glatt, are the proposed co-counsel for the
Debtor. The Debtor selected Kurtzman Carson Consultants LLC as
its claims agent.
Lee R. Bogdanoff, Esq., Jonathan S. Shenson, Esq., and Jonathan D.
Petrus, Esq., at Klee, Tuchin, Bogdanoff & Stern LLP, represent
the Official Committee of Unsecured Creditors as counsel.
In its schedules, Fremont General reported $362,227,537 in total
assets and $326,529,372 in total debts. When the Debtor filed for
protection from its creditors, it listed total assets of
$643,197,000 and total debts of $320,630,000.
GENERAL MOTORS: Southeastern Asset Discloses 2.3% Equity Stake
--------------------------------------------------------------
Southeastern Asset Management, Inc. discloses in a regulatory
filing with the Securities and Exchange Commission that it may be
deemed to beneficially own as of August 31, 2008, 34,174,000
shares of Series B Convertible Senior Debentures, which represents
32.9% of the 104,000,000 shares outstanding.
Longleaf Partners Fund, in the same filing, disclosed that it may
be deemed to beneficially own 17,230,000 shares of Series B
Convertible Senior Debentures, which represents 16.6% of the
104,000,000 shares outstanding.
The 34,174,000 shares of Series B Convertible Senior Debentures
are convertible into 13,163,825 shares of common stock.
In a separate filing, Southeastern Asset Management said that the
13,163,825 shares of General Motors Corporation common stock
represents 2.3% of outstanding common shares. There are
566,162,606 shares of common stock outstanding.
Southeastern Asset Management is a registered investment adviser.
All of the securities disclosed are owned legally by
Southeastern's investment advisory clients and none are owned
directly or indirectly by Southeastern. O. Mason Hawkins is the
chairman of the board and C.E.O. of Southeastern Asset Management,
Inc.
Southeastern Asset Management has sole power to vote or to direct
the vote of 5,238,720 common shares. It has shared power to vote
or to direct the vote of 6,636,996 common shares, with Longleaf
Partners Fund. Southeastern Asset Management has no power to vote
1,288,109 common shares -- this figure does not include 201,845
common shares held by completely non-discretionary accounts over
which Southeastern Asset Management and Mr. Hawkins have neither
voting nor dispositive power and for which they disclaim
beneficial ownership. Southeastern Asset Management has the sole
power to dispose or to direct the disposition of 6,520,280 common
shares and the shared power to dispose or to direct the
disposition of 6,636,996 common shares, with Longleaf Partners
Fund. It does not have the power to dispose of 6,548 common
shares.
About General Motors
Headquartered in Detroit, Michigan, General Motors Corp. (NYSE:
GM) -- http://www.gm.com/-- was founded in 1908. GM
employs
about 266,000 people around the world and manufactures cars and
trucks in 35 countries. In 2007, nearly 9.37 million GM cars and
trucks were sold globally under the following brands: Buick,
Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel,
Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar
subsidiary is the industry leader in vehicle safety, security and
information services.
General Motors Latin America, Africa and Middle East, with
headquarters in Miramar, Florida, is one of GM's four regional
business units. GM LAAM employs approximately 37,000 people in
18 countries and has manufacturing facilities in Argentina,
Brazil, Colombia, Ecuador, Egypt, Kenya, South Africa and
Venezuela. GM LAAM markets vehicles under the Buick,
Cadillac, Chevrolet, GMC, Hummer, Isuzu, Opel, Saab and
Suzuki brands.
At June 30, 2008, the company's balance sheet showed total assets
of $136.0 billion, total liabilities of $191.6 billion, and total
stockholders' deficit of $56.9 billion. For the quarter ended
June 30, 2008, the company reported a net loss of $15.4 billion
over net sales and revenue of $38.1 billion, compared to a net
income of $891.0 million over net sales and revenue of $46.6
billion for the same period last year.
HARRINGTON TOOLS: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Harrington Tools, Inc.
5440 W. San Fernando Road
Los Angeles, CA 90039
Bankruptcy Case No.: 08-25134
Type of Business: The Debtor manufactures hand tools.
See: http://www.harringtontools.com
Chapter 11 Petition Date: September 16, 2008
Court: Central District Of California (Los Angeles)
Judge: Alan M. Ahart
Debtor's Counsel: David A. Tilem, Esq.
davidtilem@tilemlaw.com
Law Offices of David A Tilem
206 N Jackson Street, Ste. 201
Glendale, CA 91206
Tel: (818) 507-6000
Fax: (818) 507-6800
Estimated Assets: $4,500,000
Estimated Debts: $1,679,885
A list of the Debtor's largest unsecured creditors is available
for free at http://bankrupt.com/misc/califcb08-25134.pdf
H&H MEAT: Court Approves Reorganization Plan
--------------------------------------------
Sean Gaffney of The Monitor (Tex.) reports that a federal
bankruptcy court has approved the debt reorganization plan of H&H
Meat Products Co., Inc. dba H&H Foods earlier this month. It
means secured creditors totaling some $5.6 million will be paid in
full while unsecured creditors totaling some $1.6 million will
receive half the debt owed, the report said.
Under the plan, H&H Foods expects to borrow $9.5 million from
Regents Bank to pay off creditors, particularly Wells Fargo Bank,
and restructure short-term debt into long-term debt, the report
said citing court records. H&H will also borrow some $1.09
million against a life insurance policy for company C.E.O. Liborio
Hinojosa.
H&H will pay in full its $1.09 million debt to Compass Bank. It
will pay in full and some in half $673,000 in debt to 75 other
Valley businesses. Harlingen-based Valley Trucking Co. will
receive close to $4,900 of the $9,773 it is owed. Meanwhile, H&H
is disputing $1.61 million in claims of Rio Bank, according to the
report.
Liborio Hinojosa Sr., will retain his position atop the company
after the settlement, the report said. Mr. Hinojosa, gave to H&H
real estate adjacent worth some $660,000 as part of a capital
infusion so he could retain his primary shareholder status,
records state, according to the report. Other shareholders will
each make cash infusions of $170,000 to retain their shareholder
status, the report stated.
The company has reportedly secured a $3.4 million contract with
Region One schools.
Adolfo Campero Jr., Esq., the company's Laredo-based attorney,
said the company will continue to operate, but will concentrate
its operation as a food processor.
Based in Mercedes, Texas, H&H Meat Products Co., Inc. has been
manufacturing meat products, processing boxed beef items into food
products, processing commodity products and distributing food
since 1968. The company filed for Chapter 11 protection on Dec.
31, 2007 (Bankr. S.D. Tex. Case No. 07-70622). Adolfo Campero,
Jr., Esq., at Campero & Becerra P.C., represents the Debtor in its
restructuring efforts. When the Debtor filed for protection from
its creditors, it listed total assets of $11,207,241, and total
liabilities of $9,287,970.
HILEX POLY: Shuts Down Plant in Old Mount Olive Highway
-------------------------------------------------------
Goldsboro News Argus (N.C.) reports that Hilex Poly Co. LLC has
shut down its manufacturing plant on Old Mount Olive Highway in
Mount Olive.
Hilex Poly, formerly Sonoco and a subsidiary of the HPC group of
companies in Los Angeles, operated 10 manufacturing facilities
across the United States.
In a press release, the Debtor reportedly said that the closure of
the Mount Olive plant was "part of an ongoing asset optimization
plan that the company has been implementing since its acquisition
of Vanguard Plastics in October of 2005." The company is reducing
production capacity as demand for plastic bags wanes.
According to the report, Hilex Poly officials noted that decision
places about 160 employees on administrative leave for 60 days,
while another 20 to 25 will help shut the plant down, though
manufacturing operations have ceased. As reported by the Troubled
Company Reporter on Sept. 17, Hilex Poly will begin laying off
workers at the plant at around Nov. 10.
About Hilex Poly
Headquartered in Hartsville, South Carolina, Hilex Poly Co. LLC
-- http://www.hilexpoly.com/-- manufactures plastic bag and film
products. The company has approximately 1,324 personnel and has
10 manufacturing facilities located in the United States. The
company and its affiliate, Hilex Poly Holding Co. LLC, filed
for Chapter 11 protection on May 6, 2008 (Bankr. D. Del. Lead Case
No.08-10890). Hilex Poly is a majority-owned subsidiary of Hilex
Poly Holding Co. LLC. Edmon L. Morton, Esq., and Kenneth J.
Enos, Esq., at Young, Conaway, Stargatt & Taylor in Wilmington,
Delaware, represent the Debtors in their restructuring efforts.
The Debtors selected Epiq Bankruptcy Solutions LLC as claims
agent. The U.S. Trustee for Region 3 did not appoint creditors
to serve on an Official Committee of Unsecured Creditors. When
the Debtors filed for protection from their creditors, they listed
assets and debts of between $100 million and $500 million.
As reported in the Troubled Company Reporter on July 10, 2008,
Hilex Poly emerged from Chapter 11 protection in July, after
meeting all statutory requirements of the company's Plan of
Reorganization.
HOVNANIAN ENTERPRISES: Posts $674.1MM Loss for Q3 Ended July 31
---------------------------------------------------------------
Hovnanian Enterprises, Inc. reported financial results for the
third quarter and nine months ended July 31, 2008.
Hovnanian posted $202.5 million in net losses on $716.5 million in
net revenues for the three months ended July 31, 2008, compared
with $77.6 million in net losses on $1.13 billion in net revenues
for the three months ended July 31, 2008.
Hovnanian posted $674.1 million in net losses on $2.6 billion in
net revenues for the nine months ended July 31, 2008, compared
with $160.5 million in net losses on $3.4 billion in net revenues
for the nine months ended July 31, 2007.
As of July 31, 2008, Hovnanian Enterprises had $4.1 billion in
total assets, $3.3 billion in total liabilities, and $777.9
million in shareholders' equity.
"As we continue to compete against record foreclosures, higher
than normal levels of resale listings and poor consumer
confidence, the housing market remains challenging," said Ara K.
Hovnanian, President and CEO. "Despite disappointing operating
losses, we successfully generated cash during the third quarter
and remain on track to end our fiscal year with approximately $800
million of homebuilding cash. We remain focused on generating
sufficient liquidity to both weather this housing downturn and to
take advantage of opportunities at the bottom of this housing
cycle. The recently enacted $7,500 federal tax credit for first-
time homebuyers should help spur some short-term demand, but more
importantly, the fundamentals that drive long-term homebuilding
demand, particularly expectations for household formation, are
stronger than ever."
Hovnanian Enterprises Inc. (NYSE: HOV) -- http://www.khov.com/--
founded in 1959 by Kevork S. Hovnanian, chairman, is headquartered
in Red Bank, New Jersey. The company is one of the nation's
largest homebuilders with operations in Arizona, California,
Delaware, Florida, Georgia, Illinois, Kentucky, Maryland,
Michigan, Minnesota, New Jersey, New York, North Carolina, Ohio,
Pennsylvania, South Carolina, Texas, Virginia and West Virginia.
Hovnanian Enterprises, Inc. is a member of the Public Home
Builders Council of America (PHBCA) -- http://www.phbca.org/-- a
nonprofit group devoted to improving understanding of the business
practices of America's largest publicly-traded home building
companies, the competitive advantages they bring to the home
building market, and their commitment to creating value for their
home buyers and stockholders. The PHBCA's 14 member companies
build one out of every five homes in the United States.
At April 30, 2008, the company's consolidated balance sheet showed
$3.96 billion in total assets, $3.07 billion in total liabilities,
$38.6 million in minority interest from inventory not owned, $1.4
million in minority interest from consolidated joint ventures, and
$850.2 million in total stockholders' equity.
* * *
As reported in the Troubled Company Reporter on June 12, 2008,
Fitch Ratings affirmed Hovnanian Enterprises Inc.'s 'B-' Issuer
Default, 'CCC/RR6' Senior subordinated notes, and 'CCC-/RR6'
Series A perpetual preferred stock ratings. HOV's Rating Outlook
remains Negative.
IDEARC INC: Hotchkis and Wiley Disclose Minimal Equity Stake
------------------------------------------------------------
Hotchkis and Wiley Capital Management, LLC, as investment adviser,
disclosed in a regulatory filing with the Securities and Exchange
Commission that it has ceased to be the beneficial owner of more
than five percent of Idearc, Inc.'s common stock. Hotchkis and
Wiley may be deemed to beneficially own 4,235 shares of Idearc,
Inc.'s common stock, which is less than 1% of the outstanding
shares.
Headquartered in Dallas, Texas, Idearc Inc. (NYSE: IAR) --
http://www.idearc.com/-- provides yellow and white page
directories and related advertising products in the United States
and the District of Columbia. Products include print yellow
pages, print white pages, Superpages.com, Switchboard.com and
LocalSearch.com, the company's online local search resources, and
Superpages Mobile, its information directory for wireless
subscribers.
The company is the exclusive official publisher of Verizon print
directories in the markets in which Verizon is currently the
incumbent local exchange carrier. The company uses the Verizon
brand on its print directories in its incumbent markets, as well
as in its expansion markets.
* * *
As reported in the Troubled Company Reporter on June 17, 2008,
Standard & Poor's Ratings Services lowered its corporate credit
rating on Idearc Inc. to 'B+' from 'BB'. S&P removed all ratings
from CreditWatch with negative implications, where they were
placed on March 28, 2008. At the same time, S&P lowered its
issue-level rating on Idearc's senior secured credit facilities to
'BB' from 'BBB-'. The recovery rating on these loans remains
unchanged at '1', indicating that lenders can expect very high
(90%-100%) recovery in the event of a payment default.
The outlook is stable.
S&P also lowered its issue-level rating on Idearc's senior
unsecured notes to 'B-' from 'BB-'. S&P revised the recovery
rating on these securities to '6' from '5'. The '6' recovery
rating indicates that lenders can expect negligible (0%-10%)
recovery in the event of a payment default.
IMPAX MANAGEMENT: Loan Default Cues Foreclosure of 2MM Trust Units
------------------------------------------------------------------
Polar Capital Corporation, a secured creditor of Impax Management
Limited, has exercised its rights of foreclosure and has acquired
ownership over an aggregate of 2,207,777 trust units of Impax
Energy Services Income Trust previously owned by Impax Management
Limited. Polar Capital Corporation had disclosed on Aug. 12,
2008, that it had acquired control over the Trust Units by way of
power of sale.
The Trust Units represent 16.1% of the outstanding trust units
(after giving effect to the exchange of the Exchangeable Units).
The foreclosure arose as a result of the default by Impax
Management Limited on a loan to Polar Capital secured by the Trust
Units and Exchangeable Units owned by Impax Management Limited.
Polar has the right to sell any or all Trust Units either through
the facilities of the Toronto Stock Exchange or in private
transactions. However, Polar is under no obligation to sell the
Trust Units.
Impax Management Limited is a financial services firm based in
Toronto, Canada.
Impax Energy Services Income Trust -- http://www.impaxenergy.com/
-- (TSE:MPX.UN) is an open-ended, limited purpose trust.
INLET RETAIL: Selling Mall to Pay Lender, Avoid Foreclosure
-----------------------------------------------------------
Inlet Retail Associates is selling its Inlet Square mall to pay
its lender and avoid foreclosure or bankruptcy, Jessica Foster of
the Myrtle Beach Sun Newsthesunnews.com reports, citing the
lender's attorney.
Inlet Retail is in default of the loan it got from RAIT
Partnership LP to buy and renovate the shopping center, said
attorney Rick Mendoza, who represents RAIT.
Mr. Mendoza said Inlet Retail owes RAIT "for up to about
$22 million."
"We are in the middle of a transition," said the mall's manager
Heather Hensley, but she declined to give specifics.
The roughly $4.5 million renovation project started in August
2007, but crews stopped work in November. Construction of the
shopping center has not resumed.
According to the report, RAIT will likely start foreclosure
proceedings within the next couple of months if a buyer is not
found.
About Inlet Retail Associates
Inlet Retail Associates owns the Inlet Square Mall located at
Highway 17 Business and Highway l7 Bypass on the south end of the
Grand Strand in Murrells Inlet, S.C. The mall is home to Books-A-
Million, Friedman Jewelers, Hibbet Sports, JC Penney, Kmart, CATA,
Belk, and other merchants. There are also various eateries at the
food court within the mall, as well as Outback Steakhouse, Lone
Star Steakhouse, Applebees, TGI Fridays, and Hooters surrounding
the mall. The shopping center also hosts many community events,
including Fall Bike Rally events, the South Strand Business Expo,
and other enjoyable seasonable programs.
INNOPHOS HOLDINGS: Moody's Lifts Corp. Family Rating to Ba3
-----------------------------------------------------------
Moody's Investors Service upgraded Innophos Holdings, Inc.'s
corporate family rating to Ba3 (from B1), upgraded ratings on its
existing debt issues and affirmed the SGL-2 speculative grade
liquidity rating. The move reflects the company's improved
operating performance that is expected to result in future debt
reduction. The company also benefits from the favorable decision
by the Mexican Court of Fiscal & Administrative Justice concerning
a water tax issue with a Mexican governmental agency.
The loss given default point estimates for the rated issues were
revised and the LGD assessment for the subordinated notes due 2014
changed to LGD4, reflecting changes in Innophos' capital structure
as debt is repaid. The following summarizes the ratings.
Innophos Holdings, Inc.
Ratings upgraded:
* Corporate family rating -- Ba3 from B1
* Probability of default rating -- Ba3 from B1
* $66 mm sr unsec notes due 2012 -- B2 (LGD6, 92%) from B3
(LGD6, 93%)
Ratings affirmed:
* Speculative grade liquidity rating -- SGL-2
* Ratings outlook --Stable
Innophos, Inc.
Ratings upgraded:
* $50 mm gtd sr sec revolver due 2009 -- Baa3 (LGD2, 13%) from
Ba1 (LGD2, 18%)
* $220 mm gtd sr sec term loan B due 2010 -- Baa3 (LGD2, 13%)
from Ba1 (LGD2, 18%)
* $190 mm 8.875% gtd sr sub notes due 2014 -- Ba3 (LGD4, 57%)
from B2 (LGD5, 71%)
Innophos' operating results in 2008 have improved substantially
over the prior year levels primarily due to improved pricing of
its products that have not been fully offset with raw material
cost increases. Tightness of supply in the specialty phosphate
market that competes with phosphate fertilizers for key raw
materials has led to higher market prices that have benefited
Innophos' products.
The company's margins have increased, as a result of also
benefiting from lags in certain raw material cost increases and
Innophos expects to continue to be buffered from rising raw
material costs through the end of 2009 due to its raw material
supply agreements.
Moody's expects that Innophos will continue to generate strong
free cash flow due to the current favorable phosphate market
dynamics, the ability to pass on manufacturing cost increases and
the steady, recession resistant nature of its end markets, such as
food & beverage and consumer products.
The anticipated 2008 free cash flow generation will result in
substantial debt reduction since the company's credit agreement
requires it to repay term loan principal balances with 50% of
excess cash flow within five days from the issuance of the prior
year's annual financial statements. The company disclosed in its
Form 10-Q for the period ended June 30, 2008, that it expects the
excess cash flow payment and required quarterly principal
amortization payments to be $83.8 million.
The company's SGL-2 speculative grade liquidity rating reflects
Moody's expectation that Innophos will have good liquidity over
the next 12 months, supported by its cash balances ($52.6 million
at June 30, 2008) which are expected to increase throughout the
remainder of 2008, positive free cash flow, access to its undrawn
revolving credit facility and good flexibility under its financial
covenants. Moody's notes that the revolving credit facility
matures in less than one year.
At the end of July 2008, the company had availability of
approximately $47.5 million under its $50 million revolving credit
facility due 2009. The corporate family rating and speculative
grade liquidity rating incorporate the expectation that the
company will extend the maturity of the existing revolving credit
facility or establish a new revolver well in advance of the August
2009 maturity. The senior secured credit facility has three
financial covenants. Moody's expects the company to remain in
compliance with these covenants over the next year.
Innophos Holdings, Inc., a publicly trade company, is the parent
company of Innophos Investments Holdings, Inc., which owns 100% of
Innophos, Inc. Innophos, Inc. is the largest North American
manufacturer of specialty phosphate salts, acids and related
products serving a diverse range of customers across multiple
applications, geographies and channels. Headquartered in
Cranbury, New Jersey, the company has manufacturing operations in
the US, Canada and Mexico. In April 2007, Moody's assigned a B3
rating to the company's new $66 million senior unsecured notes due
2012. Its revenues for the twelve months ended June 30, 2008,
were $717 million.
INSMED INC: NASDAQ Panel May Grant Request to Remain Listed
-----------------------------------------------------------
Insmed Inc. disclosed in a Securities and Exchange Commission
filing that on Aug. 29, 2008, it received a letter from the NASDAQ
Listing Qualifications Panel informing it that the Panel has
determined to grant the Company's request to remain listed on The
NASDAQ Stock Market. The decision is subject to the condition
that on or before Dec. 15, 2008, Insmed must evidence a closing
bid price of $1.00 or more for a minimum of 10 consecutive
business days.
The Panel's determination follows a hearing held on July 31, 2008,
at which the Panel considered the Company's plan to regain
compliance with NASDAQ's minimum bid price requirement.
Should the Company be unable to meet the requirements of the
Panel's decision, its securities would be subject to delisting
from The NASDAQ Stock Market.
About Insmed
Insmed Incorporated, (NasdaqCM: INSM) -- http://www.insmed.com --
a biopharmaceutical company, develops and commercializes drugs to
treat metabolic diseases, endocrine disorders, and oncology. Its
lead product candidate IPLEX, a recombinant protein product
candidate, is in Phase II clinical trials for the treatment of
myotonic muscular dystrophy, the common form of adult-onset
muscular dystrophy. The company has license and collaborative
agreements with Fujisawa Pharmaceutical Co., Ltd. to use IGF-I
therapy for the treatment of extreme or severe insulin resistant
diabetes; and a license to Pharmacia AB's portfolio of regulatory
filings pertaining to rhIGF. Insmed was founded in 1999 and is
headquartered in Richmond, Virginia.
Going Concern Doubt
Richmond, Virginia-based Ernst & Young LLP raised substantial
doubt about the ability of Insmed Incorporated to continue as a
going concern after it audited the company's financial statements
for the year ended Dec. 31, 2007. The auditor pointed to the
company's recurring operating losses and negative cash flows from
operations.
The company said that its ability to continue as a going concern
is dependent upon its ability to take advantage of raising capital
through securities offerings, debt financing, and partnerships and
use these sources of capital to fund operations. Management is
focusing on raising capital through any one or more of these
options.
INTERSTATE BAKERIES: Pact with 16 Taxing Authorities Approved
-------------------------------------------------------------
The United States Bankruptcy Court for the Western District
of Missouri approved a settlement agreement among Interstate
Bakeries Inc. and its debtor-affiliates, and 16 taxing authorities
-- including Rocky Mount and North County in North Carolina.
The Debtors determined that based on their analysis, the taxing
authorities revealed "significant errors" in their historical
assessments of the Debtors' real property and personal property
tax accounts. In addition, the Debtors asserted market values
which will lead to the proper determination of other postpetition
liabilities.
Following negotiations, the Debtors and the Taxing Authorities
reached separate agreements for purposes of computing the taxes
due for 2008, 2009 and 2010 by the Debtors with respect to real
and personal properties located within the jurisdiction of the
Taxing Authorities.
A. Rocky Mount
For purposes of computing the 2008 property taxes due from
the Debtors, the market value of the Debtors' property in
Rocky Mount will be amended, consisting of:
Market Value Account No. Taxes Due for 2008
------------ ----------- ------------------
$6,709,031 386117020311P for $38,912
personal property
taxes
$3,500,000 386117020311R for 20,300
real property taxes
B. Nash County
To compute the Debtors' personal property taxes due to Nash
County for 2008, the market value of the Debtors' property
in Nash County will be amended, consisting of:
Market Value Account No. Taxes Due for 2008
------------ ----------- ------------------
$6,709,031 386117020311P for $46,493
personal property
taxes
$3,500,000 386117020311R for 24,255
real property taxes
To obtain the accurate taxes due to Rocky Mount and Nash County
on the Debtors' Real Property for tax years 2009 and 2010, the
Market Value of the Real Property will be $3,500,000, unless the
Debtors acquire or dispose of the Real Property within the
jurisdiction of the Taxing Authorities during 2008 or 2009.
If the Debtors sell a part of their Real Property in Rocky Mount
and Nash County, or acquire additional Property in 2008 or 2009,
the Market Value of the Real Property sold or acquired by the
Debtors will decrease or increase the 2008 Market Value figure of
$3,500,000, as appropriate. The Adjusted Market Value amount will
be the Market Value of the Debtors' Real Property in Rocky Mount
and Nash County for each year following the year of disposition or
acquisition through 2010, unless further sales or purchases by
Debtors are made effecting tax years.
The Debtors may pursue any dispute with respect to the Market
Values of their Real and Personal Properties in Rocky Mount and
Nash County for tax years 2009 and 2010. The Debtors' objection,
if any, will be solely and exclusively heard in a forum that is
established pursuant to the laws of North Carolina.
About IBC
Headquartered in Kansas City, Missouri, Interstate Bakeries
Corporation is a wholesale baker and distributor of fresh-baked
bread and sweet goods, under various national brand names,
including Wonder(R), Baker's Inn(R), Merita(R), Hostess(R) and
Drake's(R). Currently, IBC employs more than 25,000 people and
operates 45 bakeries, as well as approximately 800 distribution
centers and approximately 800 bakery outlets throughout the
country.
The company and eight of its subsidiaries and affiliates filed for
chapter 11 protection on Sept. 22, 2004 (Bankr. W.D. Mo. Case No.
04-45814). J. Eric Ivester, Esq., and Samuel S. Ory, Esq., at
Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in
their restructuring efforts. When the Debtors filed for
protection from their creditors, they listed $1,626,425,000 in
total assets and $1,321,713,000 (excluding the $100,000,000 issue
of 6% senior subordinated convertible notes due Aug. 15, 2014) in
total debts. The Debtors' filed their Chapter 11 Plan and
Disclosure Statement on Nov. 5, 2007. Their exclusive period to
file a chapter 11 plan expired on November 8. On Jan. 25, 2008,
the Debtors filed their First Amended Plan and Disclosure
Statement. On Jan. 30, 2008, the Debtors received court approval
of the first amended Disclosure Statement.
IBC confirmed that it has not received any qualifying alternative
proposals for funding its plan of reorganization in accordance
with the court-approved alternative proposal procedures. As a
result, no auction was held on Jan. 22, 2008, as would have been
required under those procedures. The deadline for submission of
alternative proposals was Jan. 15, 2008. A new plan filing
deadline was set for June 30, 2008; no plan was filed as of that
date.
(Interstate Bakeries Bankruptcy News; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000).
JEFFERSON COUNTY: Says Wall Street Crisis May Slow Debt Talks
-------------------------------------------------------------
Alabama's Jefferson County officials said Monday that the crisis
in Wall Street, brought about by Lehman Brothers Holding, Inc.,
filing for bankruptcy and the Merrill Lynch & Co.'s $50 billion
takeover by Bank of America, may slow talks on restructuring the
county's $3.2 billion of debt, Reuters' Melinda Dickinson reported
Monday.
The county, which has been in talks for more than half a year with
creditors over its sewer bonds and related interest-rate swaps,
has authorized lawyers to prepare for a possible municipal
bankruptcy filing.
Both sides have set a September 30 deadline to reach agreement and
avert "what would be the biggest municipal bankruptcy filing since
that of Orange County, California in 1994."
"It's not good news on Wall Street," Jefferson County Commissioner
Bettye Fine Collins said in an interview. "I don't know yet what
its impact will be on Jefferson County, but it's not good for the
economy, or anyone else."
Lehman was involved in Jefferson County swap agreements, along
with Bear Stearns and JPMorgan. Merrill was paid approximately
$40,000 for one month's work for the county on a proposal for
restructuring the debt.
"We have to play hardball with Wall Street before someone else
folds. The lenders may be busy trying to save themselves, but
it's our job to get ahead of all this," Sheila Smoot, another
commissioner, said in an interview.
"Everything that happens on Wall Street has a trickle-down effect
on us," said a third commissioner, Jim Carns. "The governor has
asked us to play our cards very close to the vest, but there has
been no change in the status of negotiations yet from last
Wednesday."
The report, citing Standard & Poor's Ratings Services analysts,
says the county's $3.2 billion of sewer bonds is made up of about
$2 billion of auction-rate securities, $850 million of variable-
rate demand notes and the remainder in fixed-rate bonds. The
county so far has only defaulted on the insured variable-rate
debt, which is being held by liquidity providers, they added.
As reported in the Troubled Company Reporter on Sept. 16, 2008,
Birmingham News reports that Jefferson County commissioners
rejected a proposal from banks and bond insurers to expand sales
and business taxes to help repay $3.2 billion of sewer debt.
Commission President Bettye Fine Collins said the plan reprises
previous attempts by creditors that failed for lack of political
support and may push the county to file for bankruptcy.
About Jefferson County
Jefferson County has its seat in Birmingham. It has a population
of 660,000. It ended its 2006 fiscal year with a $42.6 million
general fund balance, according to Standard & Poor's. The
Birmingham firm of Bradley Arant Rose & White, represents
Jefferson County. Porter, White & Co. in Birmingham is the
county's financial adviser. A bankruptcy by Jefferson County
stands to be the largest municipal bankruptcy in U.S. history. It
could beat the record of $1.7 billion, set by Orange County,
California in 1994.
* * *
As reported by the Troubled Company Reporter on June 10, 2008,
Standard & Poor's Ratings Services' ratings on Jefferson County,
Ala.'s series 1997A, series 2001A, series 2003 B-1-A through 2003
B-1-E, and series 2003 C-1 through 2003 C-10 sewer system revenue
bonds ('CCC' underlying rating [SPUR]) remain on CreditWatch with
developing implications.
As reported by the TCR on July 22, 2008, Moody's Investors
Service's continues to review the Caa3 rating on Jefferson
County's (AL) $3.2 billion in outstanding sewer revenue
warrants for possible downgrade.
JP MORGAN: Fitch to Rate $6.37MM Class E Trust 'BB'
---------------------------------------------------
Fitch Ratings expects to assign these ratings to JP Morgan Auto
Receivables Trust 2008-A:
-- $121,000,000 Class A-1 'F1+';
-- $81,000,000 Class A-2 'AAA';
-- $86,000,000 Class A-3 'AAA';
-- $19,700,000 Class A-4'AAA';
-- $14,570,000 Class B 'AA';
-- $11,840,000 Class C 'A';
-- $12,740,000 Class D 'BBB';
-- $6,370,000 Class E 'BB'.
KNOLOGY INC: Moody's Holds 'B2' Rating; Changes Outlook to Pos.
---------------------------------------------------------------
Moody's Investors Service changed the rating outlook for Knology,
Inc. to positive from stable and affirmed the company's B2
corporate family and senior secured bank debt ratings, B3
probability of default rating, and SGL-2 liquidity rating. The
change in outlook reflects Knology's successful integration of its
PrairieWave and Graceba acquisitions, as well as the company's
improved credit metrics and free cash flow generation capabilities
as anticipated over the forward rating horizon.
Knology, Inc.
Change
-- Outlook changed to Positive from Stable
Affirm
-- B2 Corporate Family Rating
-- B3 Probability of Default Rating
-- B2, LGD3, 33% Senior Secured Revolving Credit Facility due
2012
-- B2, LGD3, 33% Senior Secured Term Loan due 2012
-- SGL-2
Knology's B2 corporate family rating reflects the company's
relatively small size, moderately high leverage, and heightened
competition from larger, better capitalized cable and telecom
operators. These factors are somewhat mitigated by the company's
good liquidity, growing and increasingly diverse subscriber base,
and improving cash generation capabilities.
Since acquiring PrairieWave in April 2007 and Graceba in January
2008, Knology has successfully integrated these assets and begun
to realize the benefits of a larger, more diverse subscriber base
through expanded EBITDA margins and growth in positive free cash
flow. Knology's (Moody's adjusted) EBITDA margin and free cash
flow-to-debt were approximately 31.8% and 4.5%, respectively, for
the twelve month period ended June 30, 2008. Prior to the
acquisitions, Knology had trailed its peers with respect to
operating margins and generated negative-to-breakeven free cash
flow as the company built out its broadband network.
Moody's notes that Knology's second quarter subscriber growth
rates across its product offerings were flat-to-negative on a
sequential quarterly basis. While some of the decline is likely
due to seasonality and macroeconomic conditions, the growth rates
also reflect the increasingly competitive pricing environment.
However, Moody's believes the company will maintain margins and
continue to produce positive free cash flow throughout the year
buffeted by its increasingly diverse subscriber base as well as
growing exposure to rapidly expanding commercial markets.
Knology's debt-to-EBITDA for the last twelve months ended June 30,
2008 was 5.1x and is expected to decline to less than 5x by the
end of the year. The company is expected to produce positive free
cash flow of which approximately 50% will be mandatorily swept to
pay down the company's term loan per the company's credit
agreements. Moreover, Moody's notes that the current credit
crunch likely limits Knology's ability to make additional debt
financed acquisitions. Knology has more than ample cushion with
respect to the company's financial maintenance covenants within
its credit agreements and continues to maintain access to an
undrawn $25 million revolving credit facility.
The company's access to these external funds as well as internal
funds of $36 million in the form of unrestricted cash at June 30,
2008 and positive free cash flow production as projected
collectively support the SGL-2 liquidity rating.
Knology, Inc. is a provider of video, Internet and telephony
services via its broadband network. The company also provides
traditional telephony services through its incumbent local
exchange carrier subsidiary. The company maintains its
headquarters in West Point, Georgia. Knology had revenues of
$391 million for the last twelve months ended June 30, 2008.
LB-UBS COMMERCIAL: Moody's Reviews Ratings for Possible Cuts
------------------------------------------------------------
Moody's Investors Service placed 10 rake classes on review for
possible downgrade of LB-UBS Commercial Mortgage Securities Trust,
Commercial Mortgage Pass-Through Certificates, Series 2006-C4 as:
-- Class HAF-1, $2,544,000, currently rated A3; on review for
possible downgrade
-- Class HAF-2, $4,887,000, currently rated Baa1; on review for
possible downgrade
-- Class HAF-3, $5,865,000, currently rated Baa2; on review for
possible downgrade
-- Class HAF-4, $5,866,000, currently rated Baa3; on review for
possible downgrade
-- Class HAF-5, $9,775,000, currently rated Ba1; on review for
possible downgrade
-- Class HAF-6, $9,776,000, currently rated Ba2; on review for
possible downgrade
-- Class HAF-7, $7,821,000, currently rated Ba3; on review for
possible downgrade
-- Class HAF-8, $7,818,000, currently rated B1; on review for
possible downgrade
-- Class HAF-9, $9,777,000, currently rated B2; on review for
possible downgrade
-- Class HAF-10, $7,821,000, currently rated B3; on review for
possible downgrade
On September 15, 2008 Lehman Brothers Holdings Inc. announced that
it intends to file a petition under Chapter 11 of the U.S.
Bankruptcy Code. Also, on September 15, Moody's Investors Service
downgraded the senior ratings of LBHI, and those of certain
guaranteed subsidiaries, to B3 under Review for further downgrade
from A2. The short-term ratings for all rated Lehman entities
were lowered to Not-Prime from Prime-1.
Non-pooled Classes HAF-1, HAF-2, HAF-3, HAF-4, HAF-5, HAF-6,
HAF-7, HAF-8, HAF-9, and HAF-10 are collateralized by the junior
portions of the 70 Hudson Street Loan, the ALMI of North Dallas
Loan, and the Fountains of Miramar Loan. The senior pooled trust
balance for the 70 Hudson Street Loan is $75.0 million while the
trust junior component is $49.0 million. The 70 Hudson Street
Loan is secured by a 409,272 square foot office property located
in Jersey City, New Jersey. The building is 100.0% leased to
Lehman Brothers Holding, Inc until January 2016.
As a result of Lehman's bankruptcy and rating downgrade, Moody's
has the placed these certificates on review for downgrade due to
the uncertainty associated with Lehman's tenancy of 70 Hudson
Street. Moody's review will focus on the degree of exposure that
this transaction has to LBHI or its subsidiaries and the potential
dark value of 70 Hudson Street.
LEHMAN BROTHERS: Case Summary & 31 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: Lehman Brothers Holdings Inc.
745 Seventh Avenue
New York, NY 10019
Bankruptcy Case No.: 08-13555
Type of Business: The Debtor is an investment bank. The
company serves the financial needs of
corporations, governments and municipalities,
institutional clients, and high net worth
individuals worldwide. Founded in 1850, Lehman
Brothers is involved in equity and fixed income
sales, trading and research, investment banking,
private investment management, asset management
and private equity. The company operates in
three segments: Capital Markets, Investment
Banking, and Investment Management. It has
regional headquarters in London and Tokyo, and
operates in a network of offices around the
world. It has about 28,000 full-time employees.
See: http://www.lehman.com/
Debtor-affiliates filing separate Chapter 11 petitions:
Entity Case No.
------ --------
LB 745 LLC 08-13600
Chapter 11 Petition Date: September 15, 2008
Court: Southern District of New York (Manhattan)
Debtor's Counsel: Harvey R. Miller, Esq.
harvey.miller@weil.com
Richard P. Krasnow, Esq.
Lori R. Fife, Esq.
Shai Y. Waisman, Esq.
Jacqueline Marcus, Esq.
Weil, Gotshal & Manges, LLP
767 Fifth Avenue
New York, NY 10153
Tel: (212) 310-8000
Fax: (212) 310-8007
http://www.weil.com/
The Debtor's financial condition as of May 31, 2008:
Total Assets: $639 billion
Total Debts: $613 billion
A. Lehman Brothers' 30 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Citibank, N.A., as indenture bond debt $138,000,000,000
trustee, and The Bank of New
York Mellon Corporation (with
respect to the Euro Medium
Term Notes only, as indenture
trustee, under the Lehman
Brothers Holdings. Senior
Notes.
Citibank, N.A.
399 Park Avenue
New York, NY 10043
Attn: Wafaa Orfy
Tel: (800) 422-2066
Fax: (212) 816-5773
The Bank of New York
One Canada Square
Canary Wharf, London E14 5AL
Attn: Raymond Morison
Tel: 44-207-964-8800
The Bank of New York bond debt $15,000,000,000
Mellon Corporation, as
indenture trustee under the
Lehman Brothers Holdings
Inc. subordinated debt.
The Bank of New York
Mellon Corporation
101 Barclay Street
New York, NY 10286
Attn: Chris O'Mahoney
Tel: (212) 815-4107
Fax: (212) 815-4000
AOZORA bank loan $463,000,000
1-3-1 Kudan-Minami
Chiyoda-ku, Tokyo 102-8660
Tel: 81-3-5212-9631
Fax: 81-3-3265-9810
Mizuho Corporate Bank Ltd. bank loan $289,000,000
Global Syndicated Financi
Division
1-3-3, Marunochi, Chiyoda-ku
Tokyo, Japan 100-8210
Timothy White
Managing Director - Head of
Originations Corporate and
Investment Bank Department
1251 Avenue of the Americas
32nd floor
New York, NY 10020-1104
Tel: (212) 282-3360
Fax: (212) 282-4487
Citibank N.A. Hong Kong bank loan $275,000,000
Branch
Financial Institutions Group
Asia Pacific
44f Citibank Tower
3 Garden Rd.
Central Hong Kong
Michael Mauerstein
MD - FIG
388 Greenwich Street
New York, NY 10013
Tel: (212) 816-3431
BNP Paribas bank loan $250,000,000
787 7th Avenue
New York, NY 10019
Tel: (212) 841-2084
Shinesi Bank Ltd. bank loan $231,000,000
1-8, Uchisaiwaicho 2-
Chome
Chiyoda-ku, Tokyo 100-8501
Tel: 81-3-5511-5377
Fax: 81-3-4560-2834
UFJ bank Limited bank loan $185,000,000
2-7-1, Marunouchi
Chiyoda-ku, TKY 100-8388
Stephen Small
vice president
head of financial
institutions
Bank of Tokyo-Mitsubishi
UFJ Trust Company
1251 Avenue of the Americas
New York, New York
10020-1104
Tel: (212) 782-4352
Fax: (212) 782-6445
Sumitomo Mitsubishi bank loan $177,000,000
Bank Corp.
13-6 Nihobashi-
Kodenma-Cho, Chuo-ku,
Tokyo, 103-0001
Yas Imai
Senior Vice President
Head of Financial
Institution Group
Sumitomo Mistui Banking
Corporation
277 Park Avenue
New York, NY 10172
Tel: (212) 224-4031
Fax: (212) 224-4384
Svenska Handelsbanken letter of credit $140,610,543
153 E. 53rd St., 37th floor
New York, NY 10022
Tel: (212) 258,9487
KBC Bank letter of credit
$100,000,000
125 W. 55th St.
New York, NY 10019
Tel: (212) 258-9487
Mizuho Corporate Bank Ltd. bank loan $93,000,000
1-3-3, Marunouchi
Chiyoda-ku, TKY 100-8219
Timothy White
Managing Director - Head of
Originations Corporate and
Investment Bank Department
1251 Avenue of the Americas
32nd floor
New York, NY 10020-1104
Tel: (212) 282-3360
Shinkin Central Bank bank loan $93,000,000
8-1, Kyobashi 3-Chome
Chuo-ku, Tokyo 104-0031
Shuji Yamada
Deputy General Manager
Financial Institution Dept.
Shinkin Central Bank
3-7, Yaesu 1-chome, Chuo-ku
Tokyo 104-0028
Tel: 81-3-5202-7679
Fax: 81-3-3278-7051
The Bank of Nova Scotia bank loan $93,000,000
Singapore Branch
1 Raffles Quay #201-01
One Raffles Quay North
Tower
Singapore 0485583
George Neofitidis
Director Financial
Institutions Group
One Liberty Plaza
New York, NY 10006
Tel: (212) 225-5379
Fax: (212) 225-5254
Chuo Mitsui Trust & Banking bank loan $93,000,000
3-33-1 Shiba, Minato-ku,
Tokyo, 105-0014
Tel: 81-3-5232-8953
Fax: 81-3-5232-8981
Lloyds Bank letter of credit $75,381,654
1251 Avenue of the Americas
39th Floor
P.O. Box 4873
New York, NY 10163
Tel: (212) 930-8967
Fax: (212) 930-5098
Hua Nan Commercial Bank bank loan $59,000,000
Ltd.
38 Chung-King South
Road Section 1
Taipei, Taiwan
Bank of China bank loan $50,000,000
New York Branch
410 Madison Avenue
New York, NY 10017
Tel: (212) 936-3101
Fax: (212) 758-3824
Nippon Life Insurance Co. bank loan $46,000,000
1-6-6, Marunouchi,
Chiyoda-ku, Tokyo 100-8288
Takayuki Murai
Deputy General Manager
Corporate Finance Dept. #1
Nippon Life Insurance Co.
Tel: 81-3-5533-9814
Fax: 81-3-5533-5208
ANZ Banking Group bank loan $44,000,000
Limited
18th Floor Kyobo Building
1 Chongro 1 Ku,
Chongro Ka,
Seoul, Korea
Michael Halevi
Director, Financial
Institutions
ANZ Banking Group
1177 Avenue of Americas
New York, NY 10036
Tel: (212) 810-9871
Fax: (212) 801-9715
Standard Chartered Bank bank loan $41,000,000
One Madison Avenue
New York, NY 10010-3603
Bill Hughes
SVP-FIG
Standard Chartered bank
One Madison Avenue
New York, NY 10010-3603
Tel: (212) 667-0355
Fax: (212) 667-0273
Standard Chartered Bank letter of credit $36,114,000
One Madison Avenue
New York, NY 10010-3603
Bill Hughes
SVP-FIG
Standard Chartered bank
One Madison Avenue
New York, NY 10010-3603
Tel: (212) 667-0355
Fax: (212) 667-0273
First Commercial Bank bank loan $25,000,000
Co. Ltd.
New York Agency
750 3rd Avenue, 34th Floor
New York, NY 10017
Jason C. Lee
Deputy General Manager
First Commercial Bank Co.
Ltd.
New York Agency
750 3rd Avenue, 34th Floor
New York, NY 10017
Tel: (212) 599-6868
Fax: (212) 599-6133
Bank of Taiwan bank loan $25,000,000
New York Agency
100 Wall Street, 11th Floor
New York, NY 1005
Eunice S.J. Yeh
Senior Vice President &
General Manager
100 Wall Street, 11th floor
New York, NY 10005
Tel: (212) 968-0580
Fax: (212) 968-8370
DnB NOR Bank ASA bank loan $25,000,000
NO-0021, Olso, Norway
Stranden 21, Aker Brygge
Tel: 47 22 9487 46
Fax: 47 22 48 29 84
Australia and New Zealand bank loan $25,000,000
Banking Group Limited
Melbourne Office
Level 6, 100 Queen
Street Victoria
Melbourne, VIC 3000
Australia
Michael Halevi
Director, Financial
Institutions
ANZ Banking Group
1177 Avenue of Americas
New York, NY 10036
Tel: (212) 810-9871
Fax: (212) 801-9715
Australia National Bank letter of credit $12,588,235
1177 Avenue of the
Americas, 6th Floor
New York, NY 10036
Michael Halevi
Director, Financial
Institutions
ANZ Banking Group
1177 Avenue of Americas
New York, NY 10036
Tel: (212) 810-9871
Fax: (212) 801-9715
National Australia Bank letter of credit $10,294,163
245 Park Avenue, 28th Fl.
New York, NY 10167
Michael Halevi
Director, Financial
Institutions
ANZ Banking Group
1177 Avenue of Americas
New York, NY 10036
Tel: (212) 810-9871
Fax: (212) 801-9715
Taipei Fubon Bank, New bank loan $10,000,000
York Agency
100 Wall Street, 14th floor
NY NY 10005
Tel: (212) 968-9888
Fax: (212) 968-9800
B. LB 745's Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Rocky-Forty-Ninth LLC ground lease $0
c/o The Rockefeller Group
1221 Avenue of the Americas
New York, NY 10020
LEHMAN BROTHERS: Bankruptcy Filing Cues S&P to Change Indices
-------------------------------------------------------------
Standard & Poor's made these changes to the S&P 100, S&P 500 and
S&P MidCap 400 indices:
-- Lehman Brothers Holdings Inc. has been removed from the
S&P 100 and S&P 500 indices on September 16. The company
has filed for Chapter 11 bankruptcy protection.
-- Lehman's place in the S&P 100 will be taken by S&P 500
constituent Occidental Petroleum Corp.
-- Lehman's place in the S&P 500 will be taken by S&P MidCap
400 constituent Harris Corp., and Harris Corp. will be
replaced by Greif Inc. in the S&P MidCap 400, all after the
close of trading on Friday, September 19.
LEHMAN BROTHERS: Fitch Trims 260 Tender Options Bonds Ratings to D
------------------------------------------------------------------
Fitch has short-term ratings on approximately 260 tender option
bonds, based on liquidity provided by Lehman Brothers Holding Inc.
Of those, some also have long-term ratings based on credit
enhancement provided by LBHI. The short-term rating on those TOBs
will all be downgraded to 'D', based on LBHI's current short-term
rating, which was downgraded to 'D' on September 15, 2008.
For the TOBs whose long-term rating is based on credit enhancement
from LBHI, the long-term rating will be revised to either the
long-term rating of the underlying security within the TOB trust,
if rated by Fitch, or withdrawn in those cases where Fitch does
not rate the underlying security. The long-term ratings on the
TOBs that are not based on LBHI will remain the same.
The CUSIPs of the affected securities and the rating changes will
be announced as soon as they are processed.
LISA-CLAIRE SANWALL: Case Summary & 20 Largest Unsec. Creditors
---------------------------------------------------------------
Debtor: Lisa-Claire Anita Sanwall
P.O. Box 1348
Sanger, CA 936
Bankruptcy Case No.: 08-15656
Chapter 11 Petition Date: September 11, 2008
Court: U.S. Bankruptcy Court of Eastern District of California
Judge: W. Richard Lee
Debtor's Counsel: Justin D. Harris
1690 W Shaw Ave #200
Fresno, CA 93711
Tel.: 559-439-4000
Estimated Assets: $1,000,000 to $10,000,000
Estimated Debts: $1,000,000 to $10,000,000
A list of the Debtor's 20 largest unsecured creditors is available
for free at:
http://researcharchives.com/t/s?3206
LODGENET INTERACTIVE: Names Young as Chief Marketing Officer
------------------------------------------------------------
LodgeNet Interactive Corporation entered into a new Executive
Employment Agreement on Aug. 27, 2008, with Scott E. Young. The
Company appointed Mr. Young as the president of the Hospitality
Division and Chief Marketing Officer.
Under the Agreement, Mr. Young's employment with the Company
continues through Dec. 31, 2008, and will automatically renew for
additional terms of one year unless notice of termination is given
prior to Nov. 1, 2008, of the appropriate term. The Agreement
provides that Mr. Young's base salary is $375,000.
The Agreement also contains provisions regarding bonus
opportunities based on formula, targets and criteria determined by
the Board of Directors and severance provisions, including
severance in the event of termination as a result of a change in
control of the Company. The Agreement also contains a covenant
not to compete with the Company for a period of six months
following
In addition, Mr. Young received an incentive stock option to
acquire 50,000 shares of the common stock of the Company that will
vest in four installments consisting of 10,000 on each of the
first and second anniversaries of the grant and 15,000 on each of
the third and fourth anniversaries of the grant.
About LodgeNetInteractive
Based in Sioux Falls, South Dakota, LodgeNet Interactive
Corp. (NASDAQ: LNET) -- http://www.lodgenet.com/-- is a
provider of media and connectivity solutions designed to meet the
unique needs of hospitality, healthcare and other guest-based
businesses. LodgeNet Interactive serves more than
1.9 million hotel rooms representing 9,300 hotel properties
worldwide in addition to healthcare facilities throughout the
United States. The company's services include: Interactive
Television Solutions, Broadband Internet Solutions, Content
Solutions, Professional Solutions and Advertising Media Solutions.
LodgeNet Interactive Corporation owns and operates businesses
under the industry leading brands: LodgeNet, LodgeNetRX, and The
Hotel Networks.
* * *
As reported in the Troubled Company Reporter on March 24, 2008,
Standard & Poor's Ratings Services revised its outlook on LodgeNet
Interactive Corp. to negative from stable and affirmed the 'B+'
corporate credit rating on the company.
As of June 30, 2008, LodgeNet Interactive had $656.5 million in
total assets and $728.8 million in total liabilities, resulting in
$72.3 million in shareholders' deficit.
LOLA: Files for Chapter 11 Bankruptcy Protection
------------------------------------------------
Lola restaurant has filed for Chapter 11 protection, in order to
"preserve its valuable leasehold interest," says Chris Shott of
The New York Observer, citing court papers. The report did not
indicate the Court where the bankruptcy filing was made.
In addition to unpaid legal bills of nearly $100,000, Tom Patrick-
Odeen and his wife Gayle Patrick-Odeen, co-owners of Lola
restaurant, also owe Vornado Realty more than $100,000 in back
rent, "as a result of [their] inability to generate income from
[the restaurant's] trademark live performances," according to
court papers.
On Aug. 20, Vornado threatened to terminate the restaurant's 15-
year lease if the amount due them was not paid.
The Villager reports that according to papers filed by Lola's
attorney, Cristina Dulay, the bankruptcy filing puts on hold Soho
Alliance's ongoing litigation to try to block the place from
getting a liquor license. The Soho Alliance is an umbrella
organization of volunteer resident and business groups focusing on
zoning, preservation, environmental and quality-of-life issues.
About Lola
Lola is a Cajun-creole restaurant jazz lounge at 15 Watts St. in
Soho, a neighborhood in the New York City borough of Manhattan.
Tom Patrick-Odeen and his wife Gayle Patrick-Odeen, are Lola's co-
owners.
MARY WICKMAN: Largest Creditor Takes Over New River Marina
----------------------------------------------------------
Arlene Satchell of the South Florida Sun-Sentinel reports that the
largest creditor of the owners of Fort Lauderdale's New River
Marina has taken over the boatyard after a July 17 bankruptcy
auction was embroiled in controversy.
The auction was held to find an investor to repay the $13 million
owed to Alex Nichols, owner of 84 Marina LLC. Mr. Nichols
received court approval in April to sell the boatyard.
But Mr. Nichols, the marina's primary secured creditor and
mortgage holder, alleged improprieties in the auction that ended
without a sale. According to the report, "litigation continues in
the bankruptcy case as [Mr.] Nichols pursues sanctions against
parties involved in the auction."
The complaints of impropriety have been referred for review to the
U.S. Trustee's Office in Miami, the report said. The next court
hearing is set for Sept. 18 before U.S. Bankruptcy Judge John K.
Olson.
Mr. Nichols said he plans to continue running the marina as he
looks for a buyer.
New River Marina is a two-decade old, family-owned boatyard. Its
former owners, Bob and Mary Wickman filed for Chapter 11
bankruptcy protection from creditors in March 2007 in bankruptcy
court in Fort Lauderdale. New River was valued at more than $21
million in 2006, auction papers state, according to the report.
MATRIX DEVELOPMENT: May Use Cash Collateral in Orenco Project
-------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Oregon granted
Matrix Development Corp., aka Legend Homes, permission to use the
cash collateral securing its obligation to Bank of America related
to the Debtor's Village at Orenco Subdivision project in
Hillsboro, Oregon, without hearing.
The order sets forth the terms of the settlement agreement that
was reached among the Debtor, Bank of America, and the Official
Committee of Unsecured Creditors in those settlement conferences
conducted by the Hon. Elizabeth L. Perris, as settlement judge.
The Cash Collateral held by Bank of America pertains to the cash
and cash equivalents that are proceeds from the Postpetition sale
of completed units, including the debit balance of the Blocked DIP
Account as of the date of the Order. The Blocked DIP Account
refers to the bank account established by the Debtor for purposes
of administering Net Cash Proceeds of the project.
The Debtor is authorized to use the Lender's Cash collateral in
the ordinary course of business consistent with a budget, which
may be amended, revised or supplemented as approved by the Court,
and further subject to the following terms:
a) Immediately following the entry of the Court's order, the
Debtor may withdraw from the Blocked DIP Account the
amount of $206,794. Thereafter, the Debtor may withdraw
from the Blocked DIP Account an amount equal to 10% of the
gross sale proceeds of each sold unit, whether completed
or under construction. The order provides however that
none of the Cash Collateral received by the Debtor may be
used for shareholder distributions or for extraordinary
payments to officers or directors.
b) As adequate protection to the Lender for the Debtor's use
of Cash Collateral, the Lender's replacement lien on the
Net Cash Proceeds will continue to secure the Lender's
Prepetition claims against the Debtor that are secured by
the Project. In addition, the Lender is granted a lien
upon all improvements that are made to existing Units and
upon all Units that are hereafter constructed, which lien
will be senior in priority to all other liens excepting
only statutory liens that are senior in priority to the
Lender's trust deed liens.
All Net Cash Proceeds will be held in the Blocked DIP
Account. The Court also placed restrictions on the
commencement of construction of Spec Units and new Units.
c) Administrative Claims arising from the Debtor's use of
Cash Collateral will have priority over any and all other
administrative expense claims pursuant to Sec. 507(b) of
the Bankruptcy Code.
d) The Debtor will pay to the Lender from the Blocked DIP
Account:
(a) $200,000 immediately;
(b) on or before the 10 day of each month, beginning
Oct. 10, 2008, an amount equal to the product of the
Lender's Project Claim as of the last day of the
immediately preceding month, multiplied by 0.005; and
(c) within three business days after the closing of a sale
of a completed Unit, the amount of $83,000. Payments
to the Lender will be on account of the Lender's
Project Claim.
e) The Debtor's authority to use Cash Collateral will
terminate upon the occurrence of any of these events:
(a) This Chapter 11 case is either dismissed or converted
to a case under Chapter 7 of the Bankruptcy Code; or
(b) A trustee is appointed in this Chapter 11 case; or
(c) The Debtor defaults in any material respect in the
performance of or compliance with any term or
provision in the Order, with certain exceptions, and
in each case such default is not remedied within 20
calendar days after the Lender gives the Debtor
written notice of the default; or
(d) Any information or report made or furnished to the
Lender by the Debtor or on its behalf pursuant to
the Order is false, incorrect or misleading in any
material respect at the time made or furnished; or
(e) A plan is not filed by the Debtor on or before
March 31, 2009; or
(f) The Court enters an order on a motion filed by the
Lender terminating the Debtor's authority to use
Cash
Collateral.
f) The Debtor will (i) within three business days after the
entry of this Order, pay to Lender the debit balance in
the blocked bank account established by the Debtor for
purposes of administering proceeds from the Postpetition
sale of completed homes in North Pointe (the Debtor's
subdivision located in Albany, Oregon, known as Legend at
North Pointe), and (ii) as soon as practicable seek, at
the Lender's option, an order authorizing it to sell or
abandon the completed homes and vacant lots in North
Pointe or an order granting Lender relief from the
automatic stay of section 362 of the Bankruptcy Code for
the purposes of permitting Lender to foreclose its trust
deed liens on North Pointe.
About Legend Homes
Headquartered on Portland, Oregon, Matrix Development Corp. aka
Legend Homes -- http://www.legendhomes.com-- designs and builds
homes and condominiums. The company filed for Chapter 11
protection on June 10, 2008 (Bankr. D. Ore. Case No.08-32798).
David A. Foraker, Esq., at Greene & Markley P.C. is the Debtor's
counsel.
Salem Printing Company serves as chairman to the Official
Committee of Unsecured Creditors. The other panel members are Tri
County Temp Control and SR Design LLC. Matthew A. Arbaugh, Esq.,
at Field Jerger LLP, and Gary U. Scharff, Esq., represent the
Committee.
When the Debtor filed for protection against its creditors, it
listed assets of between $100 million and $500 million and debts
of between $100 million and $500 million.
MATRIX DEVELOPMENT: May Use Cash Collateral in Walnut Creek
-----------------------------------------------------------
The U.S. Bankruptcy Court for the District of Oregon granted
Matrix Development Corp. aka Legend Homes, permission to use the
Cash Collateral securing its obligations to Columbia River Bank
related to the Debtor's Walnut Creek Subdivision project in
Tigard, Oregon, without hearing.
The order sets forth the terms of the settlement agreement that
was reached among the Debtor, Columbia River Bank, and the
Official Committee of Unsecured Creditors in those settlement
conferences conducted by the Hon. Elizabeth L. Perris, as
settlement judge.
The Cash Collateral held by Columbia River Bank pertains to the
cash and cash equivalents that are proceeds from the Postpetition
sale of completed units, including the debit balance of the
Blocked DIP Account as of the date of the Order. The Blocked DIP
Account refers to the bank account established by the Debtor for
purposes of administering Net Cash Proceeds of the Project.
The Debtor is authorized to use the Lender's Cash collateral in
the ordinary course of business consistent with a budget, which
may be amended, revised or supplemented as approved by the Court,
and further subject to the following terms:
a) Immediately following the entry of the Court's order, the
Debtor may withdraw from the Blocked DIP Account the
amount of $67,652. Thereafter, the Debtor may withdraw
from the Blocked DIP Account an amount equal to 10% of the
gross sale proceeds of each sold unit, whether completed
or under construction. The order provides however that
none of the Cash Collateral received by the Debtor
may be used for shareholder distributions or for
extraordinary payments to officers or directors.
b) As adequate protection to the Lender for the Debtor's use
of Cash Collateral, the Lender's replacement lien on the
Net Cash Proceeds will continue to secure the Lender's
Prepetition claims against the Debtor that are secured by
the Project. In addition, the Lender is granted a lien
upon all improvements that are made to existing Units and
upon all Units that are hereafter constructed, which lien
will be senior in priority to all other liens excepting
only statutory liens that are senior in priority to the
Lender's trust deed liens.
All Net Cash Proceeds will be held in the Blocked DIP
Account. The Court also placed restrictions on the
commencement of construction of Spec units and new Units.
c) Administrative Claims arising from the Debtor's use of
Cash Collateral will have priority over any and all other
administrative expense claims pursuant to Sec. 507(b) of
the Bankruptcy Code.
d) The Debtor will pay to the Lender from the Blocked DIP
Account:
(a) on or before the 10th day of each month, beginning
Oct. 10, 2008, the amount of $21,911; and
(b) within three business days after the closing of a sale
of a completed Unit, the amount of $80,000.
e) The Debtor's authority to use Cash Collateral will
terminate upon the occurrence of any of these events:
(a) This Chapter 11 case is either dismissed or converted
to a case under Chapter 7 of the Bankruptcy Code; or
(b) A trustee is appointed in this Chapter 11 case; or
(c) The Debtor defaults in any material respect in the
performance of or compliance with any term or
provision in the Order, with certain exceptions, and
in each case the default is not remedied within 20
calendar days after the Lender gives the Debtor
written notice of the default; or
(d) Any information or report made or furnished to the
Lender by the Debtor or on its behalf pursuant to the
Order is false, incorrect or misleading in any
material respect at the time made or furnished; or
(e) A plan is not filed by the Debtor on or before
March 31, 2009; or
(f) The Court enters an order on a motion filed by the
Lender terminating the Debtor's authority to use
Cash
Collateral.
f) The Debtor will maintain a Collateral Ratio no less than
that set forth below on each of these dates:
September 30, 2008 1.41
October 31, 2008 1.39
November 30, 2008 1.38
December 31, 2008 1.36
January 31, 2009 1.35
February 28, 2009 1.34
March 31, 2009 1.34
April 30, 2009 1.35
May 31, 2009 1.35
June 30, 2009 1.33
In the event that the Debtor will fail to comply with this
financial covenant, the Lender will have the right to
seek an order of the Court terminating the Debtor's
authority to us Cash Collateral or modify the terms of
the Order.
About Legend Homes
Headquartered on Portland, Oregon, Matrix Development Corp. aka
Legend Homes -- http://www.legendhomes.com-- designs and builds
homes and condominiums. The company filed for Chapter 11
protection on June 10, 2008 (Bankr. D. Ore. Case No.08-32798).
David A. Foraker, Esq., at Greene & Markley P.C. is the Debtor's
counsel.
Salem Printing Company serves as chairman to the Official
Committee of Unsecured Creditors. The other panel members are Tri
County Temp Control and SR Design LLC. Matthew A. Arbaugh, Esq.,
at Field Jerger LLP, and Gary U. Scharff, Esq., represent the
Committee.
When the Debtor filed for protection against its creditors, it
listed assets of between $100 million and $500 million and debts
of between $100 million and $500 million.
MATRIX DEVELOPMENT: May Use Cash Collateral in Williamette
----------------------------------------------------------
The U.S. Bankruptcy Court for the District of Oregon granted
Matrix Development Corp., aka Legend Homes, permission to use the
Cash Collateral securing its obligations to JP Morgan Chase Bank
related to the Debtor's Williamette Landing Subdivision in
Corvallis, Oregon, without hearing.
The order sets forth the terms of the settlement agreement that
was reached among the Debtor, JP Morgan Chase Bank, and the
Official Committee of Unsecured Creditors in those settlement
conferences conducted by the Hon. Elizabeth L. Perris, as
settlement judge.
The Cash Collateral held by JP Morgan Chase Bank pertains to the
cash and cash equivalents that are proceeds from the Postpetition
sale of completed units, including the debit balance of the
Blocked DIP Account as of the date of the Order. The Blocked DIP
Account refers to the bank account established by the Debtor for
purposes of administering Net Cash Proceeds of the Project.
The Debtor is authorized to use the Lender's Cash collateral in
the ordinary course of business consistent with a budget, which
may be amended, revised or supplemented as approved by the Court,
and further subject to the following terms:
a) Immediately following the entry of the Court's order, the
Debtor may withdraw from the Blocked DIP Account the
amount of $61,574. Thereafter, the Debtor may withdraw
from the Blocked DIP Account an amount equal to 10% of the
gross sale proceeds of each sold unit, whether completed
or under construction. The order provides however that
none of the Cash Collateral received by the Debtor
may be used for shareholder distributions or for
extraordinary payments to officers or directors.
b) As adequate protection to the Lender for the Debtor's use
of Cash Collateral, the Lender's replacement lien on the
Net Cash Proceeds will continue to secure the Lender's
Prepetition claims against the Debtor that are secured by
the Project. In addition, the Lender is granted a lien
upon all improvements that are made to existing Units and
upon all Units that are constructed, which lien will be
senior in priority to all other liens excepting only
statutory liens that are senior in priority to the
Lender's trust deed liens.
All Net Cash Proceeds will be held in the Blocked DIP
Account. The Court also placed restrictions on the
commencement of construction of Spec Units and new Units.
c) Administrative Claims arising from the Debtor's use of
Cash Collateral will have priority over any and all other
administrative expense claims pursuant to Sec. 507(b) of
the Bankruptcy Code.
d) The Debtor will pay to the Lender from the Blocked DIP
Account:
(a) on or before the 10th day of each month, beginning
Oct. 10, 2008, the amount of $23,642; and
(b) within three business days after the closing of a sale
of a completed Unit, the amount of $50,000.
e) The Debtor's authority to use Cash Collateral will
terminate upon the occurrence of any of these events:
(a) This Chapter 11 case is either dismissed or converted
to a case under Chapter 7 of the Bankruptcy Code; or
(b) A trustee is appointed in this Chapter 11 case; or
(c) The Debtor defaults in any material respect in the
performance of or compliance with any term or
provision in the Order, with certain exceptions, and
in each case the default is not remedied within 20
calendar days after the Lender gives the Debtor
written notice of the default; or
(d) Any information or report made or furnished to the
Lender by the Debtor or on its behalf pursuant to
the Order is false, incorrect or misleading in any
material respect at the time made or furnished; or
(e) A plan is not filed by the Debtor on or before
March 31, 2009; or
(f) The Court enters an order on a motion filed by the
Lender terminating the Debtor's authority to use
Cash
Collateral.
f) The Debtor will maintain a Bulk Collateral Ratio no less
than 0.97 and a Retail Collateral Ratio no less than 1.15,
as of the last day of each calendar month beginning
Sept. 30, 2008. If the Debtor fails to comply with any of
these financial covenants, the Lender may seek a Court
order terminating the Debtor's authority to use collateral
or modifying any of the terms of the Order.
About Legend Homes
Headquartered on Portland, Oregon, Matrix Development Corp. aka
Legend Homes -- http://www.legendhomes.com-- designs and builds
homes and condominiums. The company filed for Chapter 11
protection on June 10, 2008 (Bankr. D. Ore. Case No.08-32798).
David A. Foraker, Esq., at Greene & Markley P.C. is the Debtor's
counsel.
Salem Printing Company serves as chairman to the Official
Committee of Unsecured Creditors. The other panel members are Tri
County Temp Control and SR Design LLC. Matthew A. Arbaugh, Esq.,
at Field Jerger LLP, and Gary U. Scharff, Esq., represent the
Committee.
When the Debtor filed for protection against its creditors, it
listed assets of between $100 million and $500 million and debts
of between $100 million and $500 million.
MATRIX DEVELOPMENT: May Use Cash Collateral in Q Condominiums
-------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Oregon granted
Matrix Development Corp., aka Legend Homes, permission to use the
cash collateral securing its obligations to Keybank, N.A., without
hearing.
The order sets forth the terms of a settlement agreement that was
reached among the Debtor, KeyBank, and the Official Committee of
Unsecured Creditors in those settlement conferences conducted by
the Hon. Elizabeth L. Perris, as settlement judge.
The Cash Collateral held by Keybank pertains to the cash and cash
equivalents that are proceeds from the postpetition sale of
completed units of the Debtor's Q Condominiums project in
Hillsboro, Oregon, including the debit balance of the Blocked DIP
Account as of the date of the Order. The Blocked DIP Account
refers to the bank account established by the Debtor for purposes
of administering Net Cash Proceeds of the project.
The Debtor is authorized to use the Lender's Cash collateral in
the ordinary course of business consistent with a budget, which
may be amended, revised or supplemented as approved by the Court,
and further subject to these terms:
a) Immediately following the entry of the Court's order, the
Debtor may withdraw from the Blocked DIP Account the
amount of $173,853.60. Thereafter, the Debtor may
withdraw from the Blocked DIP Account an amount equal to
10% of the gross sale proceeds of each sold condominium
unit in the project. The order provides however that none
of the Cash Collateral received by the Debtor may be used
for shareholder distributions or for extraordinary
payments to officers or directors.
b) As adequate protection to the Lender for the Debtor's use
of Cash Collateral, the Lender's replacement lien on the
Net Cash Proceeds will continue to secure the Lender's
Secured Project Claim. All Net Cash Proceeds will be held
in the Blocked DIP Account.
c) Administrative Claims arising from the Debtor's use of
Cash Collateral will have priority over any and all other
administrative expense claims pursuant to Sec. 507(b) of
the Bankruptcy Code.
d) If the Cross-Collateralization Ruling is favorable to the
Debtor -- where it is determined that the Lender's Secured
Project Claim is less than the sum of the debit balance in
the Blocked DIP Account and the value of the unsold units
-- the Debtor will pay to the Lender from the Blocked DIP
Account $165,000 within three business days after the
closing of a sale of a Unit.
If the Cross-Collateralization Ruling is adverse to the
Debtor -- where the Lender's Secured Project Claim is
greater than the sum of the debit balance in the Blocked
Account and the value of the unsold units -- the Debtor
will pay to the Lender from the Blocked DIP Account:
(a) within three business days after the Cross-
Collateralization Ruling becomes a Final Order, an
amount equal to the difference between (i) the debit
balance in the Blocked DIP Account on such date, and
(ii) the amount not to exceed $192,000, that is
necessary to fund the Budgeted expenses that then
remain unpaid and that are projected to be incurred by
the Debtor; and
(b) within three business days after the closing of a sale
of a unit, an amount equal to the difference between
(i) the Net Cash Proceeds of such Unit, and (ii) the
Builder Recovery Amount applicable to such Unit.
e) In the event that the Cross-Collateralization Ruling is
favorable to the Debtor, it will be authorized to withdraw
from the Blocked DIP Account, from time to time, amounts
totaling up to $1,000,000 in the aggregate, subject to any
relief that may be ordered pending an appeal taken by the
Lender.
f) The Debtor's authority to use Cash Collateral will
terminate upon the occurrence of any of these events:
(a) This Chapter 11 case is either dismissed or converted
to a case under Chapter 7 of the Bankruptcy Code; or
(b) A trustee is appointed in this Chapter 11 case; or
(c) The Debtor defaults in any material respect in the
performance of or compliance with any term or
provision in the Order and in each case such default
is not remedied within 20 calendar days after the
Lender gives the Debtor written notice of such
default; or
(d) Any information or report made or furnished to the
Lender by the Debtor or on its behalf pursuant to this
Order is false, incorrect or misleading in any
material respect at the time made or furnished; or
(e) A plan is not filed by the Debtor on or before
March 31, 2009.
About Legend Homes
Headquartered on Portland, Oregon, Matrix Development Corp. aka
Legend Homes -- http://www.legendhomes.com-- designs and builds
homes and condominiums. The company filed for Chapter 11
protection on June 10, 2008 (Bankr. D. Ore. Case No.08-32798).
David A. Foraker, Esq., at Greene & Markley P.C. is the Debtor's
counsel.
Salem Printing Company serves as chairman to the Official
Committee of Unsecured Creditors. The other panel members are Tri
County Temp Control and SR Design LLC. Matthew A. Arbaugh, Esq.,
at Field Jerger LLP, and Gary U. Scharff, Esq., represent the
Committee.
When the Debtor filed for protection against its creditors, it
listed assets of between $100 million and $500 million and debts
of between $100 million and $500 million.
MEDIACOM COMM: To Buy Back 30% of Outstanding Shares from Shivers
-----------------------------------------------------------------
Mediacom Communications Corporation entered into a definitive
agreement to repurchase all of its Class A common stock owned by
an affiliate of Morris Communications Company, LLC in a
transaction structured as a tax free split-off under Section 355
of the Internal Revenue Code. Closing is subject to the receipt of
certain regulatory approvals and other customary closing
conditions and is expected to occur in the fourth quarter of 2008.
Under the definitive agreement, Shivers Investments, LLC, will
exchange 28,309,674 shares of Mediacom Class A common stock for
100% of the shares of stock of a newly-created subsidiary of
Mediacom, which will hold cable television systems currently owned
by Mediacom serving approximately 25,000 basic subscribers and
$110 million of cash. Both Morris Communications and Shivers are
controlled by William S. Morris III, a member of Mediacom's Board
of Directors. Pro-forma for this stock repurchase, Mediacom's
total Class A and Class B outstanding shares would be
approximately 66.3 million.
To evaluate the terms of the transaction, Mediacom's Board of
Directors appointed a special committee of three independent
directors. The special committee retained Lehman Brothers Inc. to
act as its financial advisor and the law firm of Willkie Farr &
Gallagher LLP to assist the committee in its evaluation. Lehman
Brothers provided a fairness opinion to the special committee in
connection with the transaction. Based on the recommendation of
the special committee, on September 7, 2008, Mediacom's Board of
Directors unanimously voted to approve the transaction (with the
two directors affiliated with Shivers abstaining).
"This exchange agreement represents a unique opportunity to
deliver value to our shareholders without compromising the solid
financial position of our Company," said Rocco B. Commisso,
Chairman and CEO of Mediacom. "At an implied valuation of about
$6.50 per share, we are repurchasing 30% of our outstanding shares
at a significant discount to recent trading levels of our stock.
Moreover, since part of the consideration consists of non-
strategic cable systems, we will still have available about $700
million of unused lines of credit immediately after closing and
the Company's pro-forma debt leverage is expected to be lower than
in the fourth quarter of 2007. Lastly, through this tax-efficient
transaction, the Company's sizeable net operating loss
carryforward will largely remain intact."
"Mr. Morris played a key role during Mediacom's formative stage by
making the largest equity investment in our Company a decade ago
and, with his associate, Craig S. Mitchell, served on Mediacom's
Board of Directors since we went public in 2000. I am extremely
grateful for their contributions, thank them for their support
throughout our long association and wish the entire Morris
organization the best in the future," concluded Mr. Commisso.
Effective upon closing of the transaction, William S. Morris III
and Craig S. Mitchell, the two Morris Communications
representatives who now hold seats on Mediacom's Board of
Directors, will resign from the Board. RBC Daniels acted as
financial advisor to Morris Communications.
Banc of America Securities LLC acted as financial advisor and the
law firm of Baker Botts LLP acted as legal advisor to Mediacom.
A full-text copy of the Share Purchase Agreement is available for
free at http://researcharchives.com/t/s?3213
Also on September 7, 2008, the company disclosed to the Securities
and Exchange Commission that it entered into a Significant
Stockholder Agreement with Rocco B. Commisso, the chief executive
officer and chairman of the board of the company. Pursuant to the
Stockholder Agreement, the Stockholder has agreed, prior to
September 7, 2010, not to consummate an extraordinary transaction
involving the Company without the recommendation of a majority of
either (i) the disinterested directors that are members of the
Board or (ii) the members of a special committee of the Board
consisting of disinterested directors. Mr. Commisso beneficially
owns less than one percent of the Company's Class A common stock
and substantially all of the Company's Class B common stock, which
together represents approximately 80.7% of the outstanding voting
power of the Company.
A full-text copy of the Significant Stockholder Agreement is
available for free at http://researcharchives.com/t/s?3214
About Mediacom Communications
Based in Middletown, New York, Mediacom Communications Corporation
(Nasdaq: MCCC) -- http://www.mediacomcc.com/-- is a cable
television company focused on serving the smaller cities and towns
in the United States. The company offers a wide array of
broadband products and services, including traditional video
services, digital television, video-on-demand, digital video
recorders, high-definition television, high-speed Internet access
and phone service.
* * *
As disclosed in the Troubled Company Reporter on June 3, 2008,
Fitch Ratings affirmed the 'B' Issuer Default Rating for
Mediacom Communications Corporation and its wholly owned
subsidiaries Mediacom LLC and Mediacom Broadband LLC. In addition
Fitch assigned a 'BB/RR1' rating to Mediacom Broadband LLC's
$300 million incremental term loan E. Lastly, Fitch has upgraded
Mediacom LLC's senior unsecured debt to 'B-/RR5' from 'CCC+/RR6'.
Approximately $3.2 billion of debt as of March 31, 2008 is
affected. The Rating Outlook for all of Mediacom's ratings is
Stable.
As reported in the Troubled Company Reporter on March 6, 2008,
Moody's Investors Service affirmed its 'B1' corporate family
rating for Mediacom Communications Corp.. The rating outlook
remains stable.
MERCURY COS: Files Schedules of Assets and Liabilities
------------------------------------------------------
Erik Larson of Bloomberg News reports that Mercury Cos., Inc.,
filed its schedules of assets and liabilities with the U.S.
Bankruptcy Court for the District of Colorado on Sept. 12, 2008,
revealing $63.5 million of debt and $21.4 million worth of
personal property, including cash, aircraft, insurance polices and
other assets.
The Debtor blamed its collapse on the U.S. housing market,
according to the report.
Denver, Colorado-based Mercury Cos., Inc., is a holding company
for several real estate services firms involved in title services,
escrow services, real estate services, mortgage services, and
settlement services.
The Debtor filed for Chapter 11 bankruptcy protection with the
United States Bankruptcy Court for the District of Colorado (Case
No. 08-23125). Daniel J. Garfield, Esq. and Michael J. Pankow,
Esq., at Brownstein Hyatt Farber Schreck, LLP, represents the
Debtor in its restructuring efforts.
METRO ONE DEVELOPMENT: Registers September Stock Option Plan
------------------------------------------------------------
Metro One Development, Inc., delivered to the Securities and
Exchange Commission a Form S-8 Registration Statement for its
September 2008 Stock Option Plan. The company is seeking to
register 500 million shares with a proposed maximum offering price
of $0.005 per share. The proposed maximum registered aggregate
offering price is $2,500,000.
A full-text copy of the company's Registration Statement is
available for free at http://researcharchives.com/t/s?3220
Headquartered in Concord, Ontario, Canada, Metro One Development
Inc. (OTC BB: MODI) -- http://www.metro-one.com/-- formerly On
The Go Healthcare Inc., is a custom builder and property developer
in the greater Toronto area. The company was a value-added
reseller of computer and computer-related products, including
hardware, peripherals, software and supplies.
Going Concern Doubt
Metro One Development Inc. has an accumulated deficit of
$20,738,346 as of April 30, 2008, and incurred a net
loss applicable to common stockholders of $4,678,750 during the
nine months ended April 30, 2008. These conditions raise
substantial doubt about the company's ability to continue as a
going concern.
At April 30, 2008, the company's consolidated balance sheet showed
$3,787,576 in total assets, $1,519,822 in total liabilities,
$1,000,000 in conditionally redeemable preferred stock, and
$1,267,754 in total stockholders' equity.
Laurus Master Fund Ltd. has notified the company that it is in
default under the Amended and Restated Security Purchase
Agreement. In addition, the company's payment obligations under
the Secured Revolving Note issued pursuant to such Amended and
Restated Security Purchase Agreement are currently in default.
The company's Secured Revolving Note with Laurus was the company's
primary source of financing until March 17, 2008. Without this
source of funding, the company no longer has access to capital to
allow it to develop its operations.
MICHAEL JEWETT: Case Summary & Eight Largest Unsecured Creditors
----------------------------------------------------------------
Debtor: Michael D. Jewett
11795 N. Sage Brook Road
Tucson, AZ 85737
Bankruptcy Case No.: 08-12241
Chapter 11 Petition Date: September 13, 2008
Court: District of Arizona (Tucson)
Judge: James M. Marlar
Debtor's Counsel: Eric Slocum Sparks, Esq.
ericssparks@hotmail.com
Eric Slocum Sparks P.C.
110 S. Church Ave., #2270
Tucson, AZ 85701
Tel: (520) 623-8330
Fax: (520) 623-9157
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/azb08-12241.pdf
MICHAEL STORES: Moody's Cuts Rating Ratings to B3 from B2
---------------------------------------------------------
Moody's Investors Service lowered Michael Stores, Inc.'s
Probability of Default and Corporate Family Ratings to B3 from B2.
The company's SGL-3 rating was affirmed. Other actions on rated
debt instruments are detailed below. The rating outlook is
negative. The rating action concludes the review for possible
downgrade which commenced on June 4, 2008.
The downgrade of the company's ratings reflects Moody's
expectation that as a result of recent negative trends in sales
and operating margins, metrics no longer remain appropriate for
the B2 corporate family rating. The company has seen negative
trends in same store sales and operating margins for the past few
quarters and these trends are not anticipated to materially
recover to historical levels in the near term. The rating also
takes into consideration the company's strong franchise and
defensible market position in the arts and craft categories.
The negative rating outlook reflects Moody's concerns that
negative trends in same store sales and operating margins may
persist due to weakening macro economic conditions and uncertainty
that benefits from the company's sourcing initiatives and
marketing programs will be sufficient to fully offset these
pressures.
These ratings were lowered, and LGD assessments amended:
-- Corporate Family Rating to B3 from B2
-- Probability of Default Rating to B3 from B2
-- $750 million Senior Unsecured Notes due 2014 to Caa1
(LGD 5, 78%) from B2 (LGD 4, 57%)
-- $400 million Senior Subordinated Notes due 2016 to Caa2
(LGD 6, 91%) from Caa1 (LGD 6, 92%)
-- $469 million (principal amount at maturity) Subordinated
Discount Notes due 2016 to Caa2 (LGD 6, 95%) from Caa1
(LGD 6, 95%)
This rating was confirmed and LGD assessment amended:
-- $2.3 billion Senior Secured Term Loan at B2 (LGD 3, 39%, from
LGD 4, 50%)
This rating was affirmed:
-- Speculative Grade Liquidity Rating at SGL-3
Headquartered in Irving, Texas, Michaels Stores, Inc. is the
largest arts and crafts specialty retailer in North America. As
of August 2, 2008, the company operated 991 "Michaels" retail
stores in the United States and Canada and 164 Aaron Brothers
Stores in 11 states. Revenues in the LTM period ended August 2,
2008 were approximately $3.9 billion.
MICROMET INC: Names Barclay Phillips as Chief Financial Officer
---------------------------------------------------------------
Micromet, Inc. has appointed Barclay A. Phillips as Senior Vice
President and Chief Financial Officer. Mr. Phillips has served as
a member of the Company's board of directors since 2000, and was
the chair of the nominating & corporate governance committee and a
member of the audit committee. In connection with his joining the
executive management team of Micromet, Mr. Phillips has resigned
from the board and the committees he served on.
"We are very excited to have Buck Phillips become a member of our
executive management team," commented Christian Itin, President
and Chief Executive Officer, and a member of Micromet's Board.
"While he served on the board of directors, Buck has gained
intimate knowledge of our business, the development programs and
the management team he is now joining. His financial and industry
experience will be invaluable in continuing the high standard for
the management of the financial affairs of Micromet that he has
helped set as a member of our audit committee. We thank Buck for
his service on the board, and look forward to his leadership and
contributions in the development and implementation of our
financing and business strategies."
"I have had the opportunity to work with and invest in many
biotechnology companies. I believe Micromet is unique in terms of
the breadth of its proprietary technology, its clinical validation
as evidenced by the recent article in Science magazine, and its
strong management team," stated Mr. Phillips. "I look forward to
the next chapter in my long-term relationship with the Company."
About Micromet Inc.
Micromet Inc. (Nasdaq: MITI) -- http://www.micromet-inc.com/-- is
a biopharmaceutical company developing novel, proprietary
antibodies for the treatment of cancer, inflammation and
autoimmune diseases. Four of its antibodies are currently in
clinical trials, while the remainder of the product pipeline is in
preclinical development.
Going Concern Doubt
The company disclosed in its Form 10-Q for the second quarter of
2008, that as of June 30, 2008, it had an accumulated deficit of
$179.4 million, and that it expects to continue to incur
substantial, and possibly increasing, operating losses for the
next several years. These conditions create substantial doubt
about our ability to continue as a going concern.
The company is continuing its efforts in research and development,
preclinical studies and clinical trials of its product candidates.
These efforts, and obtaining requisite regulatory approval prior
to commercialization, will require substantial expenditures. Once
requisite regulatory approval has been obtained, substantial
additional financing will be required to manufacture, market and
distribute its products in order to achieve a level of revenues
adequate to support its cost structure.
Management believes it has sufficient resources to fund its
required expenditures into the second quarter of 2009, without
considering any potential milestone payments that it may receive
under current or future collaborations, or any future
capitalraising transactions or drawdowns from the committed equity
financing facility (CEFF) with Kingsbridge Capital Limited.
At June 30, 2008, the company's consolidated balance sheet showed
$48.3 million in total assets, $36.3 million in total liabilities,
and $12.0 million in total stockholders' equity.
Full-text copies of the company's consolidated financial
statements for the quarter ended June 30, 2008, are available for
free at http://researcharchives.com/t/s?30f0
MIDWEST AIRLINES: Workers Rally to Protest Agreement with Republic
------------------------------------------------------------------
About 200 Midwest Airlines pilots, flight attendants and their
supporters, rallied Thursday to protest the airline's recent
decision to hire an outside contractor to operate additional
flights, bringing an upcoming layoff of 270 Midwest employees, Tom
Daykin of of the Milwaukee Journal Sentinel reports.
The union workers hope that their protest will raise public
support for their cause, said Jay Schnedorf, chairman of the local
pilots union. "They are outsourcing these jobs," Mr. Schnedorf
said in an interview after the rally.
With the latest round of layoffs, Midwest will have cut 1,850 jobs
since the beginning of the year, the report says.
As reported in the Troubled Company Reporter on Sept. 11, 2008,
Midwest disclosed that it has agreed to lease a dozen Embraer 170
jets from Indianapolis-based Republic Airways Holdings, beginning
Oct. 1. Republic will fly and maintain the jets "for the first
year or so, which is why Midwest will be laying off some of its
workers."
About Midwest Airlines
Midwest Airlines -- http://www.midwestairlines.com/-- grew out of
Kimberly-Clark Corporation's internal transportation service for
executives. It formed K-C Aviation in 1969, providing aviation
services to other companies and specializing in the meticulous
customization of corporate aircraft. In 1984, K-C Aviation and
Kimberly-Clark launched Midwest Express Airlines, which became a
publicly traded company in 1995. In 2003, the carrier simplified
its name to Midwest Airlines. Northwest Airlines Corp. and
majority partner TPG Capital, based in Fort Worth, Texas, bought
Midwest Air on Jan. 31 for $451.8 million returning it to being a
privately held entity.
Midwest Airlines is headquartered in Milwaukee, where its major
hub is General Mitchell International Airport. The Midwest
Airlines Maintenance Facility is located on the airport grounds.
A secondary hub is located in Kansas City. Midwest flies to the
East and West Coasts, as well as many destinations in between,
from Milwaukee and Kansas City.
MILLENNIUM TRANSIT: Wants to Employ JTW as Bankruptcy Counsel
-------------------------------------------------------------
Millennium Transit Services LLC asks authority from the U.S.
Bankruptcy Court for the District of New Mexico to employ
Jacobvitz, Thuma & Walker, PC as its bankruptcy counsel.
The firm will:
(a) represent and render legal advice to the Debtor regarding
all aspects of conducting this bankruptcy case, including
without limitation the continued operation of the Debtor's
business, meetings of creditors, claims objections,
adversary proceedings, plan confirmation, and all hearings
before this Court;
(b) prepare any necessary petitions, answers, motions,
applications, orders, reports, and other legal papers,
including the Debtor's plan of reorganization and
disclosure statement and any amendments or modifications;
(c) assist the Debtor in taking actions required to reorganize
under chapter 11 of the Bankruptcy Code;
(d) perform legal services necessary or appropriate for the
Debtor's continued operation of its business; and
(e) perform any other legal services the Debtor deems
appropriate and JTW agrees to perform. JTW's services
would not include rendering advice in tax, securities,
personal injury, environmental, labor, or criminal law,
unless mutually agreed between the Debtor and JTW on a
matter-by-matter basis.
JTW attorneys who may perform legal services for the Debtor
include:
Professionals Hourly Rate
------------- -----------
Robert H. Jacobvitz, Partner $240
David T. Thuma, Partner $215
Thomas D. Walker, Partner $215
Edward Mazel, Associate $125
Samuel I. Roybal, Associate $125
Legal Assistants $60
To the best of Debtor's knowledge, JTW does not hold or represent
an interest adverse to Debtor's estate. JTW is a "disinterested
person" as defined in the Bankruptcy Code.
Roswel, New Mexico-based Millennium Transit Services LLC is a bus
manufacturer. The company filed for chapter 11 protection on Aug.
29, 2008 (Bankr. D. N.M. Case No. 08-12848). Judge Mark B.
McFeeley presides over the case. When the Debtor filed for
protection from its creditors, it listed both its assets and debts
to be between $10 million and $50 million.
MYG MANAGEMENT: Voluntary Chapter 11 Case Summary
-------------------------------------------------
Debtor: MYG Management LLC
318 East State Street
Trenton, NJ 08608
Tel: (845) 425-2510
Bankruptcy Case No.: 08-27632
Type of Business: The Debtor provides management consulting
services.
See: http://www.mygproperties.com/
Chapter 11 Petition Date: September 16, 2008
Court: District of New Jersey (Trenton)
Judge: Raymond T. Lyons Jr.
Debtor's Counsel: Shmuel Klein, Esq.
shmuelklein@optonline.net
Law Office of Shmuel Klein
113 Cedarhill Avenue
Mahwah, NJ 07430
Tel: (201) 529-3411
Estimated Assets: $1 million to $10 million
Estimated Debts: $10 million to $50 million
The Debtor did not file a list of 20 largest unsecured creditors.
MORGAN STANLEY: Fitch Puts 'CC/DR4' Rating on $6.3MM Cl. L Certs.
-----------------------------------------------------------------
Fitch Ratings downgraded and assigned a distressed recovery rating
to Morgan Stanley Capital I Inc., Commercial Mortgage Pass-Through
Certificates, Series 1999-FNV1, as:
-- $7.9 million class K to 'B-/DR1' from 'B';
-- $6.3 million class L to 'CC/DR4' from 'CCC/DR3'.
In addition, Fitch affirmed these classes:
-- $141.6 million class A-2 at 'AAA';
-- Interest only class X at 'AAA';
-- $33.2 million class B at 'AAA';
-- $26.9 million class C at 'AAA';
-- $12.6 million class D at 'AAA';
-- $30.0 million class E at 'AAA';
-- $14.2 million class F at 'AAA';
-- $20.5 million class G at 'A-';
-- $7.9 million class H at 'BBB';
-- $9.5 million class J at 'BB-'.
The $1.9 million class M remains at 'C/DR6'. Class N remains at
'C/DR6' and has been fully depleted by realized losses.
Although there has been 29.8% additional pay down since Fitch's
last rating action, the transaction is experiencing adverse
selection warranting affirmations of the current ratings. As of
the August 2008 distribution date, the pool's aggregate collateral
balance has been reduced 50.5%, to $312.6 million from
$632.1 million at issuance. Twenty-one loans (38.6%) have
defeased, including three of the top five loans (16.8%).
Fitch is monitoring the upcoming scheduled maturities of the
remaining pool. Of the remaining non-defeased loans, 41.2% and
42.7% are scheduled to mature in 2008 and 2009, respectively, with
a servicer reported weighted average debt service coverage ratio
of 1.71 times and 1.49x, respectively.
Fitch has identified eleven Loans of Concern (12.5%), including
two specially serviced assets (3.4%) with losses expected. The
largest specially serviced asset (2.5%) is a real estate owned
retail center located in Sevierville, Tennessee.
The largest non-defeased loan (6.1%) is secured by a multifamily
property located in Tampa, Florida. The loan is scheduled to
mature in 2013. Servicer reported occupancy as of June 2008 was
93.1%, compared to 92% at issuance.
NATIONAL CITY: Has Sufficient Capital CEO Assures Shareholders
--------------------------------------------------------------
Peter Raskind, the chief executive officer of National City Corp.,
assured shareholders Monday that the regional bank "has sufficient
capital and is not likely to take a direct hit from the latest
financial markets turmoil," M.R. Kropko of the Associated Press
reported Monday.
"We have a strong base of deposits," Raskind told about 30
shareholders who came to the company's headquarters. "That's
quite different from the business model of an investment bank
brokerage firm. So we'll see what the next days and weeks bring."
"We've certainly been monitoring it closely and reviewing our
exposures to Lehman. At the close of business Friday our exposure
to Lehman was nominal," he said.
"Following the failure of IndyMac Bank in the middle of July, we
did see pressure on our deposits base for several days," he said.
"That situation stabilized and deposits have been growing since
then."
The National City shareholders met to dicuss details of a
$7 billion capital infusion deal that was disclosed April 21. As
reported in the Troubled Company Reporter on Sept. 17, 2008,
shareholders approved increasing the authorized number of National
City common shares from 1.4 billion to 5 billion and converting
certain shares of preferred stock to common shares.
As part of that deal, National City has secured $985 million from
New York-based Corsair Capital LLC. The remainder has come from
other undisclosed investors, according to the Associated Press
report.
About National City Corporation
Headqurtered in Cleveland, Ohio, National City Corporation (NCC)
-- http://www.nationalcity.com/-- is a financial holding company.
The company operates through an extensive banking network
primarily in Ohio, Florida, Illinois, Indiana, Kentucky, Michigan,
Missouri, Pennsylvania and Wisconsin, and also serves customers in
selected markets nationally. Its core businesses include
commercial and retail banking, mortgage financing and servicing,
consumer finance and asset management.
At June 30, 2008, National City Corp.'s consolidated balance sheet
showed $153.67 billion in total assets, $135.69 billion in total
liabilities, and $17.98 billion in stockholders' equity. Total
deposit liabilities were $101.22 billion.
* * *
As reported by the TCR on June 9, 2008, National City Corp.'s
banking unit has entered into a confidential agreement with the
Office of the Comptroller of the Currency that effectively put
the bank on probation. Citing the Wall Street Journal, the TCR
said the terms of the agreement with National City were not
disclosed, however, regulators usually urge banks to maintain
adequate capital and improve lending standards.
NJD LEASING: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: NJD, Leasing, LLC.
P.O. Box 130
Robert, LA 70455
Bankruptcy Case No.: 08-12203
Chapter 11 Petition Date: September 15, 2008
Court: Eastern District of Louisiana (New Orleans)
Judge: Elizabeth W. Magner
Debtor's Counsel: Eugene B. Gerdes, III, Esq.
gerdeslaw@i-55.com
Post Office Box 2862
Hammond, LA 70404
Tel: (985) 345-9404
Fax: (985) 543-0434
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/laeb08-12203.pdf
NORTHAMPTON GENERATING: Fitch Junks $153MM Revenue Bonds Rating
---------------------------------------------------------------
Fitch Ratings has downgraded the rating on Northampton Generating
Company, L.P.'s $153 million senior tax-exempt series 1994 A
resource recovery revenue bonds due 2009 to 2019 to 'CC' from 'B'.
The debt was issued by the Pennsylvania Economic Development
Financing Authority in 1994 and the proceeds loaned to
Northampton.
The rating downgrade is due to Fitch's expectation that absent a
restructuring, the long-term viability of the project is in doubt.
Fitch downgraded the rating on Northampton's senior bonds to 'B'
in April 2008. At that time, Fitch expected debt service coverage
ratios to fluctuate near break-even levels and the project would
frequently rely on reserve accounts to pay its scheduled debt
service. However, Northampton recently provided updated financial
projections suggesting a heightened degree of financial distress,
due primarily to high fuel costs.
The latest projections indicate debt service coverage ratios below
1.0 times from 2010 through maturity of the rated bonds.
Northampton expects to draw on its senior bond debt service
reserve fund to make scheduled debt payments beginning in 2010,
and possibly in 2009. Fitch expects the senior bond debt service
reserve could be depleted as early as 2011. Any deterioration in
operating performance from the latest projections may accelerate
an eventual default.
In January 2008, the Pennsylvania Public Utility Commission denied
approval of a proposed amendment to Northampton's power purchase
agreement. The amendment would have terminated the PPA and
proposed a restructuring of the rated bonds. Barring relief from
its obligations under the PPA, Fitch expects Northampton's
operating cash flows will be insufficient to make scheduled debt
repayments.
Northampton consists of a 112 megawatt coal-fired qualifying
facility in Northampton County, Pennsylvania, that supplies energy
to Metropolitan Edison Co. (IDR rated 'BBB-' by Fitch) under a
long-term PPA. Northampton is structured as a limited partnership
and is owned by indirect subsidiaries of Calypso Energy Holdings
LLC, which is owned by Cogentrix Energy, LLC and investment
companies managed by EIF Management, LLC. Subsidiaries of
Cogentrix manage the partnership and perform operations and
maintenance at the facility.
ON TOP COMMS: Court Okays Sale of Assets to Power Broadcasting
--------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Maryland approved
the sale of substantially all of the assets of Debtors On Top
Communications of Louisiana, LLC and On Top Communications of
Louisiana II, LLC, free and clear of liens, claims, interests and
encumbrances, to Power Broadcasting, LLC.
The Court accepted the credit bid of $6 million. The Court held
that the buyer is a good faith purchaser under Section 363(m) of
the Bankruptcy Code.
The assets include the station's operating license as well as
personal property used or useful in the station's operation.
These assets are currently subject to the allowed secured claims
of Power Equities Inc., Medallion Capital Inc. and Milestone
Growth Fund, LP, aggregating approximately $8 million.
Under the bid procedures approved by the Court, holders of the
Senior Secured Claims or their designee may tender a credit bid
for the assets and, if the prevailing bid, such credit bid will be
the purchase price for the assets under the Asset Purchase
Agreement.
The Debtors determined to sell KNOU-FM, its licensed radio station
in Empire, Louisiana, because it has not generated any material
income and has nearly exhausted its post-petition loans. In
addition, the FCC authorization for operation site of the Station
from its temporary site has expired.
The Debtors, three affiliates and their parent company, On Top
Communications, LLC, filed voluntary petitions for relief under
Chapter 11 on July 29, 2005. The cases of the three affiliates,
whose operating radio station assets were sold and sales proceeds
distributed, have been dismissed and
closed.
The Debtors anticipate that the Chapter 11 case of its parent, On
Top Communications LLC will be dismissed upon the closing of the
sale of the Debtors' assets.
About On Top Communications
Headquartered in Lanham, Maryland, On Top Communications LLC and
its affiliates acquire, own and operate FM radio stations located
in the Southeastern United States. The company and its debtor-
affiliates filed for chapter 11 protection on July 29, 2005
(Bankr. D. Md. Case No. 05-27037). Thomas L. Lackey, Esq., of
Bowie, Maryland, represents the Debtors in their restructuring
efforts. No Official Committee of Unsecured Creditors has been
appointed in this case. When the Debtors filed for protection
from their creditors, they estimated assets and debts of $10
million to $50 million.
OPEN ENERGY: Needs More Time to File Annual Report
--------------------------------------------------
Open Energy Corporation disclosed in a filing with the Securities
and Exchange Commission that it needs more time to finalize its
annual report on Form 10-KSB. The company intends to file its
annual report on Form 10-KSB as soon as practicable following
consultation with its independent registered public accounting
firm.
The Company anticipates net loss of $32,813,000 for fiscal year
ended May 31, 2008, of which, $849,000 was restructuring costs
associated with its Aurora plant, $9,644,000 was stock-based
compensation and $10,801,000 was non-cash interest expense. A
significant increase in the company's increased net loss is also
directly related to the high cost of laminates for the
SolarSave(R) Tile for low volume purchase quantities, higher than
expected freight and manufacturing costs incurred as a result of
its need to satisfy tight delivery schedules, a $996,000 increase
to warranty reserve related to diode failures of SolarSave(R)
Membrane product shipments and a $372,000 increase to warranty
reserve related to tile delamination on a small percentage of
early production Solar Save(R) Tiles. To date, the Company has
been unable to sell its products in quantities sufficient to be
operationally profitable and is unsure if or when it will become
profitable.
The ability of the Company to continue as a going concern is
dependent on obtaining additional financing to support its working
capital requirements. The Company has received a non-binding term
sheet for a proposed equity financing and is currently in the
process of negotiating the terms of such financing. "Any such
equity financing is likely to be substantially dilutive to
existing shareholders," Aidan Shields, CFO, said. "As of [Aug.
29, 2008], no definitive term sheet or other financing agreement
has been executed and there can be no assurance that the
transaction under consideration will be consummated. There may be
additional adjustments to the anticipated results as the Company
completes its work on the financial statements."
About Open Energy
Solana Beach, Calif.-based Open Energy Corporation (OEGY.OB) --
http://www.openenergycorp.com/-- together with its subsidiaries,
engages in the development and commercialization of solar energy
products and technologies for power production and water
desalination. It offers building-integrated photovoltaic roofing
materials for commercial, industrial, and residential markets.
Going Concern
As reported in the Troubled Company Reporter on Sept 17, 2007,
San Diego, Calif.-based Squar, Milner, Peterson, Miranda &
Williamson, LLP expressed substantial doubt about Open Energy
Corporation's ability to continue as a going concern after
auditing the company's consolidated financial statements for the
year ended May 31, 2007. The auditing firm pointed to the
company's recurring losses from operations and working capital
deficiency.
The company has incurred losses since inception totaling
$80.7 million through Feb. 29, 2008.
PATIENT SAFETY: Compass Global Discloses 1,600,000 Stake
--------------------------------------------------------
Compass Global Management Limited disclosed in a Securities and
Exchange Commission filing that it beneficially owns 1,600,000
shares of common stock in Patient Safety Technologies, Inc.,
representing 10.09% of the outstanding shares.
Compass Global also disclosed that it beneficially owns warrants
to purchase 1,000,000 shares of common stock in the company. The
warrants will expire on Aug. 1, 2013, and have an exercise price
of $1.4.
About Patient Safety
Headquartered in Los Angeles, Patient Safety Technologies Inc.
(OTC BB: PSTX.OB) -- http://www.patientsafetytechnologies.com/--
through its wholly owned subsidiary, SurgiCount Medical Inc., is a
developer and manufacturer of patient safety products including
the Safety-Sponge(TM) System. The system helps in reducing the
number of retained sponges and towels in patients during surgical
procedures ans allows for faster and more accurate counting of
surgical sponges.
Going Concern Doubt
Squar, Milner, Peterson, Miranda & Williamson, LLP, in San Diego,
expressed substantial doubt about Patient Safety Technologies
Inc.'s ability to continue as a going concern after auditing the
company's consolidated financial statements for the year ended
Dec. 31, 2007. The auditing firm reported that the company has
reported recurring losses from operations through Dec. 31, 2007,
and has a significant accumulated deficit and a significant
working capital deficit at Dec. 31, 2007.
At June 30, 2008, the company has an accumulated deficit of
approximately $40,573,160 and a working capital deficit of
$2,903,102.
PERKINS & MARIE: Moody's Cuts Ratings to Caa3 on Likely Default
---------------------------------------------------------------
Moody's Investors Service downgraded Perkins & Marie Callender's
Inc.'s corporate family rating to Caa3 from Caa1, Probability of
Default rating to Caa3 from Caa1, its senior secured credit
facilities rating to B2 from B1 and the senior unsecured notes
rating to Ca from Caa2. The company's speculative grade liquidity
rating remains SGL-4. The rating outlook continues to be
negative.
The rating action reflects PMC's escalating probability of default
as the company approaches a potential covenant violation or a
payment default, primarily stemming from a further deterioration
of its operating performance and scheduled tightening of its
financial covenants. Since Moody's last rating action on
Dec. 20, 2007 when PMC's CFR was downgraded to Caa1 from B3, the
company performance and cash flow generation further eroded,
primarily driven by the continuously negative guest traffic due to
waning consumer spending on dining-out, and margin pressures
arising from commodity cost inflation and higher operating
expenses.
PMC's current liquidity is very weak, as indicated by its SGL-4
rating, highlighted by its minimal cash balance, negative free
cash flow and very tight financial covenants. Considering its
tenuous liquidity position, Moody's cautions that the company
might not be able to make its interest payment of approximately
$10 million due on October 1, 2008 on the $190 million senior
unsecured notes, and that the company may need to resort to some
alternative funding resource to honor the next coupon payment.
The Caa3 corporate family rating reflects the company's weak debt
protection metrics and eroding liquidity, as represented by high
leverage, weak cash flow generation and tightening covenants. The
Caa3 rating also incorporates the high probability of debt
impairment within the capital structure, in particular, material
losses for the unsecured senior creditors in the event of default,
given the company's very high leverage relative to its cash flow
generation or asset base. The ratings also recognize the
company's established concepts of Perkins and Marie Callender's,
as well as by the company's modest scale and geographic
diversification and complementary day-part segments.
The negative outlook encompasses the on-going challenges
management faces in the current operating environment to
dramatically and quickly turn around the operating performance to
avoid potential covenant violations. Ratings could be further
downgraded if a covenant violation occurs without a cure or an
interest payment is defaulted.
These ratings were affected by the action:
Ratings downgraded:
-- Corporate family rating to Caa3 from Caa1
-- Probability of default rating to Caa3 from Caa1
-- $40 million senior secured revolving credit facility due 2011
to B2 (LGD2, 15%) from B1 (LGD2, 15%)
-- $100 million senior secured term loan due 2013 to B2
(LGD2, 15%) from B1 (LGD2, 15%)
-- $190 million senior unsecured notes due 2013 to Ca
(LGD5, 71%) from Caa2 (LGD5, 71%)
Rating Outlook: Negative
Perkins & Marie Callender's, headquartered in Memphis, Tennessee,
operated 164 restaurants and franchised 318 units under the
"Perkins" brand name as of July 13, 2008. The company also
operated 91 restaurants and franchised 42 units under the "Marie
Callender's" name. Revenues for the last twelve months were
approximately $593 million.
RANCHO MANANA: Panel Has Not Been Appointed, Says U.S. Trustee
--------------------------------------------------------------
Ilene J. Lashinsky, U.S. Trustee for the District of Arizona, told
the U.S. Bankruptcy Court for the District of Arizona, that
despite efforts to contact unsecured creditors, there has not been
a sufficient showing of creditor interest to allow the appointment
of a Committee of Unsecured Creditors pursuant to Sec. 1102(s) of
the Bankruptcy Code.
About Rancho Manana
Based in Cave Creek, Ariz., Rancho Manana Ventures, LLC filed for
Chapter 11 relief on Aug. 13, 2008 (D. Ariz. Case No. 08-10441).
Thomas E. Littler, Esq., at Warnicke & Littler, P.L.C., represents
the Debtor as counsel. When the Debtor filed for protection from
its creditors, it listed assets of between $1 million and
$10 million, and debts of between $10 million and $50 million.
REDDY ICE: Suspends Quarterly Dividend, Puts Ben Key on Leave
-------------------------------------------------------------
Shirleen Dorman at The Wall Street Journal reports that it
suspended its quarterly dividend and has put Ben Key, its
executive vice president of sales and marketing, on paid leave.
WSJ relates that federal officials raided Reddy Ice's offices in
March on price-fixing allegations. According to the report,
federal prosecutors and attorneys general in 19 states, and the
District of Columbia are investigating an alleged price-fixing
conspiracy in the $1.8 billion market for packaged ice. A former
industry executive had told authorities that "the collusion was
nationwide and forced up prices for consumers and businesses," the
report states.
The dividend suspension will save Reddy Ice some $9.3 million a
quarter as management reviews existing business and opportunities,
WSJ states. It "is the best course in light of this year's
weaker-than-expected operating results and costs related to the
ongoing antitrust investigations and litigation," WSJ quoted Reddy
Ice's President and Chief Executive Gilbert M. Cassagne as saying.
Reddy Ice, says WSJ, has been struggling in the wake of a failed
$1.1 billion buyout by GSO Capital Partners. According to WSJ,
Reddy Ice has cut expectations this year and has seen its stock
price decline by 69% to $7.84 as of Friday's close, one-quarter of
the proposed takeover price.
WSJ states that Reddy Ice found out that Mr. Key breached company
policies. The Associated Press relates that Mr. Key could be
responsible of antitrust violations.
A Reddy Ice board committee is investigating the charges against
Mr. Key, WSJ says. The AP states that Mr. Key was relieved of his
duties, effective Friday.
Reddy Ice Holdings, Inc.'s Board of Directors has appointed Paul
D. Smith as the company's Executive Vice President and Chief
Operating Officer, effective Sept. 15, 2008.
Mr. Smith has extensive experience in operations and distribution
in both the consumer products and beverage industries with
companies like Procter & Gamble, Pepsico, Inc., and Cadbury
Schweppes PLC. He recently held the position of Senior Vice
President of Sales Operations and Supply Chain of Cadbury
Schweppes PLC.
The Chief Operating Officer position at Reddy Ice had remained
unfilled after the departure of Raymond Booth. The Wall Street
Journal relates that Mr. Booth stepped down in January to pursue
other business interests. The appointment of Mr. Smith followed
an extensive search, led by Gilbert M. Cassagne, Reddy Ice's
President and Chief Executive Officer, and the other members of
the company's Board of Directors, for an appropriate candidate.
"Paul Smith brings broad operational and commercial experience and
a track record of accomplishment to our Company," commented Mr.
Cassagne. "Paul is a valuable addition to the leadership of the
company, and I look forward to working with Paul to achieve the
company's strategic objectives."
Mr. Smith will receive a base salary of $290,000 per year. He
will be eligible for cash incentive compensation with a target
percentage of base annual salary of 65%, subject to proration for
the portion of fiscal year 2008 occurring after the date of the
Employment Agreement. The Compensation Committee determines the
applicable target or targets on an annual basis.
Effective September 15, 2008, the Company and Mr. Smith entered
into a Restricted Stock Agreement, pursuant to which the Company
will grant, on the date of the agreement, 20,000 shares of
restricted stock to Mr. Smith under the Company's 2005 Long Term
Incentive and Share Award Plan, as amended. The restricted stock
is subject to forfeiture in the event Mr. Smith's employment is
terminated within one year. The Company has agreed to provide Mr.
Smith with a tax "gross-up" in respect of his income tax expense
in connection with the issuance of the restricted stock at a rate
of 35%.
Reddy Holdings, through its wholly-owned subsidiary, Reddy Ice
Corporation, manufactures and distributes packaged ice products.
Reddy Ice is the largest manufacturer of packaged ice products in
the United States and serves approximately 82,000 customer
locations in 31 states and the District of Columbia. Typical end
markets include supermarkets, mass merchants, and convenience
stores. Revenues for the twelve month period ending June 30, 2008
were about $336 million.
* * *
As reported in the Troubled Company Reporter on Aug. 20, 2008,
Moody's Investors Service downgraded the Corporate Family Rating
and Probability of Default Rating of Reddy Ice Holdings, Inc. to
B2 from B1 and assigned an SGL-3 speculative grade liquidity
rating. Moody's concurrently lowered the ratings on the $300
million senior secured credit facility and senior discount notes
by one notch. Moody's said the rating outlook is negative.
As reported in the Troubled Company Reporter on Aug. 20, 2008,
Standard & Poor's Ratings Services revised its outlook on Dallas,
Texas-based Reddy Ice Holdings Inc. and its wholly owned operating
subsidiary, Reddy Ice Corp. (Reddy Ice) to negative from stable.
At the same time, S&P affirmed all of its ratings on the company,
including the 'B+' corporate credit rating. As of June 30, 2008,
Reddy Ice had about $438 million in adjusted debt.
REMOTEMDX INC: Winfried Kill Discloses 21.1% Equity Stake
---------------------------------------------------------
Dr. Winfried Kill disclosed in a Securities and Exchange
Commission filing that he may be deemed to beneficially own
31,924,000 million shares of RemoteMDx, Inc., representing 21.1%
of the 151,036,749 shares of common stock issued and outstanding
as of Aug. 29, 2008.
FK Beteiligungs-GmbH, a German limited liability company of which
Dr. Kill is a shareholder and managing director, acquired 900,000
shares of Issuer Common Stock on June 8, 2007 for approximately
$1,541,629 -- EUR1,154,000 -- using its working capital.
Dr. Kill entered into the Purchase Agreement on July 29, 2008,
which became effective under German law on Aug. 5, 2008, with
Norddeutsche Landesbank Girozentrale giving him the right to
purchase 31,024,000 shares of the Issuer's Common Stock for
EUR25,000,070.
On Aug. 29, 2008, Dr. Kill entered into a Supplemental Agreement
to the Purchase Agreement, pursuant to which he purchased
7,445,739 shares of the Issuer's Common Stock for approximately
$8,801,340 -- EUR6,000,000 -- on August 29, 2008 using his
personal funds and pursuant to which he will purchase an
additional 23,578,261 shares of the Issuer's Common Stock for
EUR19,000,070 on or before October 15, 2008 as further described
in Item 6 of this Statement.
Dr. Kill may use personal funds or may enter into certain
financing arrangements in order to make such additional purchases,
but as of the date hereof, no such financing arrangements have
been made.
About RemoteMDx
Headquartered in Sandy, Utah, RemoteMDx Inc. (OTC BB: RMDX.OB) --
http://www.remotemdx.com/-- operates in two business segments.
The Volu-Sol segment is engaged in the business of manufacturing
and marketing medical diagnostic stains, solutions and related
equipment to hospitals and medical testing labs. The electronic
monitoring segment is engaged in the business of developing,
distributing and monitoring offender tracking devices.
As reported in the Troubled Company Reporter on Sept. 5, 2008,
RemoteMDX Inc.'s consolidated balance sheet at June 30, 2008,
showed $14,359,033 in total assets, $11,353,769 in total
liabilities, and $3,759,785 in minority interest, resulting in a
$754,521 stockholders' deficit.
At June 30, 2008, the company's consolidated balance sheet also
showed strained liquidity with $6,170,519 in total current assets
available to pay $10,772,523 in total current liabilities.
RIVER ROCK: Moody's Holds 'B2' Corp. Family Rating; Outlook Neg.
----------------------------------------------------------------
Moody's Investors Service affirmed River Rock Entertainment
Authority's B2 corporate family rating and B2 senior notes.
However, it lowered the probability of default rating to B2 from
B1 and revised the outlook to negative from stable, reflecting
Moody's expectation of some deterioration in River Rock's
financial profile in the near term, while market conditions remain
challenging and could continue to weigh on the Authority's
operating performance.
River Rock and the Dry Creek Rancheria Band of Pomo Indians are
considering several transactions designed to fund the costs of
certain capital improvements projects on the Tribe's trust and
adjacent lands and a portion of the preparatory site work
necessary for the previously announced casino and hotel resort
development. River Rock's cash balance is expected to materially
reduce as part of the funding sources.
Additionally, while the financing transactions do not result in
direct incremental debt at the Authority's level, they comprise
$125.8 million of proposed (unrated) new public improvement
revenue bonds raised at the Tribe's level, which will be serviced
and pledged by the master utilities fees paid by the Authority to
the Tribe. In Moody's opinion, the master utilities fees
represent additional fixed obligations for the Authority. Their
suspension or deferral is very unlikely, considering the potential
default implications at the Tribe's level.
As a result, the Authority's free cash flow would be permanently
impaired by the payment of the fees, which are expected to amount
to $11.5 million in 2009. Consolidated leverage, including the
$125.8 million public improvement bonds, could exceed 5.5 times in
the short term. An aggravating factor in Moody's view is the
context of poor economic conditions, which could continue to
negatively impact River Rock's operating performance.
Although the probability of default rating was lowered, the
affirmation of the B2 corporate family rating reflects average
family recovery rate assumptions resulting from the change in
River Rock's capital structure after the implementation of a
proposed $20 million term loan (with a $5 million accordion
feature) concurrently with the tender offer of $30 million of
senior notes.
A rating downgrade is likely in Moody's view if River Rock's
operating performance continues to erode and EBITDA, as adjusted
by Moody's, does not cover anymore fixed charges including
interest, maintenance capex, guaranteed minimum distributions to
the Tribe and master utilities fees. New development capital
expenditures funded with additional debt could also result in a
downgrade.
River Rock's corporate family rating was last affirmed by Moody's
on August 4, 2006. For
Ratings affirmed:
-- B2 Corporate Family Rating
-- B2 Senior Note Rating (LGD assessment revised to LGD3/48%
from LGD4/66%)
Rating downgraded:
-- Probability of Default Rating to B2 from B1
River Rock is an unincorporated governmental instrumentality of
the Dry Creek Rancheria Band of Pomo Indians, a federally
recognized Indian tribe with 947 enrolled members and an
approximately 75-acre reservation in Sonoma County, California.
River Rock was formed in 2003 to own and operate the River Rock
Casino, which reported approximately $137 million in net revenues
for the last twelve-month period ended June 30, 2008.
SENSUS METERING: Moody's Holds 'B2' CF and POD Ratings
------------------------------------------------------
Moody's Investors Service affirmed the B2 corporate family rating
of Sensus Metering Systems Inc., as well as the company's B2
probability of default rating and its B3 senior subordinate
rating. At the same time, Moody's upgraded the senior secured
rating of Sensus and Sensus Metering Systems (Luxco 2) S.a.r.l. to
Ba2 from Ba3, reflecting the modest reduction of senior secured
term debt in the company's capital structure and pursuant to the
application of Moody's loss-given-default methodology. The
outlook for both companies remains stable.
Ratings Upgraded:
Sensus Metering Systems Inc.
-- Senior Secured Bank Credit Facility, Upgraded to Ba2, LGD2,
18% from Ba3, LGD2, 23%
Sensus Metering Systems (Luxco 2) S.a.r.l.
-- Senior Secured Bank Credit Facility, Upgraded to Ba2, LGD2,
18% from Ba3, LGD2, 23%
Ratings Affirmed:
Sensus Metering Systems Inc.
-- Corporate Family Rating at B2
-- Probability of Default Rating at B2
-- Senior Subordinated Regular Bond/Debenture at B3 (LGD5, 73%
from LGD5, 77%)
Sensus' B2 corporate family rating is significantly influenced by
its concentration of activity within the utility metering market
as well as the leveraged capital structure which its equity
sponsors have employed at the company. The rating also considers
the modest deterioration in Sensus' profitability metrics that
have occurred through the past few years despite favorable revenue
growth trends.
Profitability has in part been impacted by investments Sensus has
made to expand its leading global position in the water metering
market into the electric metering and related communications
markets, which appears to be at the early stages of significant
future growth arising from the deployment of meters with embedded
AMI systems. The company's contract wins and growing backlog for
AMI systems indicate a reasonable level of early success with this
initiative. The company nonetheless remains a relatively small
player as the largest industry players have gained scale through
international consolidation activity.
The rating incorporates some caution to what extent Sensus may
maintain and improve upon its market position given the existence
of these large formidable players and a highly competitive
operating environment.
Despite the potential for continued margin pressure, Moody's
expects Sensus' free cash flow to remain positive through the next
couple of years, with proceeds applied to debt reduction. This
may enable a modest improvement to key credit metrics and supports
the rating and stable outlook. An absence of debt maturities
before its currently unused revolvers mature in December 2009
provide an acceptable liquidity position, however Moody's notes
that some tightness to bank covenants may occur in the company's
first quarter of fiscal 2010 (April 1, 2009) once the next
covenant step-down occurs.
Sensus' senior secured rating was last upgraded by Moody's in
September 2006.
Headquartered in Raleigh, North Carolina, Sensus Metering Systems,
Inc. is a leading provider of metering and related communication
systems to electric, gas and water utilities.
SENSUS METERING: Moody's Revises Debt & Facilities Ratings to Ba2
-----------------------------------------------------------------
Moody's Investors Service has revised debt ratings for the bank
credit facilities of two companies -- Sensus Metering Systems and
Cannery Casino Resorts. The revisions follow a review of the
rating impact of implementing the current version of Moody's Loss
Given Default template.
Since the introduction of its LGD methodology for rating non-
financial speculative-grade corporate obligors in the U.S. and
Canada in September 2006, Moody's has employed an LGD template as
an additional input to its broader rating methodology. The
template, which provides analysts with an indication of the most
likely ratings for debt instruments, has been refined several
times since its introduction.
In reviewing the impact of converting LGD templates to the current
version, it was determined that ratings for some issuers had not
been reevaluated using the new version of the LGD template. Use
of the new version suggested that the rating committee should
consider changes to the ratings of Sensus and Cannery. Rating
committees subsequently revised these ratings:
Sensus Metering Systems Inc.
* Senior Secured Revolver -- to Ba2 (LGD2, 18%) from Ba3
(LGD2, 23%)
* Senior Secured Term Loan B -- to Ba2 (LGD2, 18%) from Ba3
(LGD2, 23%)
Sensus Metering Systems (Luxco 2) S.a.r.l.
* Senior Secured Revolver -- to Ba2 (LGD2, 18%) from Ba3
(LGD2, 23%)
* Senior Secured Term Loan B -- to Ba2 (LGD2, 18%) from Ba3
(LGD2, 23%)
Cannery Casino Resorts, LLC
* Senior Secured Revolver -- to B1 (LGD3, 42%) from B2
(LGD3, 44%)
* Senior Secured Term Loan B -- to B1 (LGD3, 42%) from B2
(LGD3, 44%)
* Senior Secured Delayed Draw Term Loan -- to B1 (LGD3, 42%)
from B2 (LGD3, 44%)
* All other ratings for the affected companies remain unchanged.
SIMON WORLDWIDE: Everest Special Discloses 17.02% Equity Stake
--------------------------------------------------------------
Everest Special Situations Fund L.P., Maoz Everest Fund Management
Ltd. and Elchanan Maoz disclosed in a Securities and Exchange
Commission filing that they may be deemed to beneficially own
2,767,133 common shares of Simon Worldwide, Inc., representing
17.02% of the 16,260,324 shares issued and outstanding as of June
30, 2008.
Going Concern Doubt
As reported in the Troubled Company Reporter on April 8, 2008, BDO
Seidman, LLP, in Los Angeles, espressed substantial doubt about
Simon Worldwide Inc.'s ability to continue as a going concern
after auditing the company's consolidated financial statements for
the years ended Dec. 31, 2007, and 2006.
BDO Seidman pointed to the company's stockholders' deficit,
significant losses from operations, and lack of any operating
revenue.
About Simon Worldwide
Headquartered in Los Angeles, Calif., Simon Worldwide Inc. (OTC:
SWWI) was prior to August 2001, a multi-national, full service
promotional marketing company. In August 2001, McDonald's
Corporation, the company's principal customer, terminated its 25-
year relationship with the company as a result of the embezzlement
by a former company employee of winning game pieces from
McDonald's promotional games administered by the company.
As a result of the loss of its customers, the company no longer
has any operating business. Since August 2001, the company has
concentrated its efforts on reducing its costs and settling
numerous claims, contractual obligations, and pending litigation.
As a result of these efforts, the company has been able to resolve
a significant number of outstanding liabilities that existed at
Dec. 31, 2001, or arose subsequent to that date. At June 30,
2008, the company had reduced its workforce to 4 employees from
136 employees at Dec. 31, 2001. The company is currently managed
by the chief executive officer, together with a principal
financial officer and an acting general counsel.
Simon Worldwide's consolidated balance sheet at June 30, 2008,
showed $20,026,000 in total assets, $1,158,000 in total
liabilities, and $34,374,000 in redeemable preferred stock,
resulting in a $15,506,000 stockholders' deficit.
The company reported net income of $1,560,000 for the second
quarter ended June 30, 2008, compared with a net loss of $380,000
for the same period last year.
SIRIUS XM: Will Refinance $300 Million in Convertible Bonds
-----------------------------------------------------------
Sarah McBride at The Wall Street Journal reports that Sirius XM
Radio Inc. Chief Executive Mel Karmazin aims to boost investor
confidence by refinancing $300 million in convertible bonds that
come due in February, replacing them with bank debt.
According to WSJ, Mr. Karmazin told investors last week that he
had started a series of meetings with banks. WSJ states that Mr.
Karmazin said he wants to arrange the refinancing at favorable
terms. WSJ relates that the last time Mr. Karmazin renegotiated
debt in a hurry, which was in July, the day before the Sirius
Satellite Radio Inc - XM Satellite Radio Holdings Inc merger
closed, the stock price dropped 16%. Since the merger, the
company's stock has fallen about 40%, and now trades at less than
a dollar, WSJ adds.
Cecilia Kang at the Washington Post relates that Sirius admitted
on Sept. 9 that it doesn't have enough cash to pay back the $300
million in debt and has not considered selling its Northeast
Washington building to raise money. On the same day, Mr. Karmazin
told investors at Merrill Lynch's 2008 Media Fall Preview
conference in Marina del Ray, California, that the credit market
crisis has made it more difficult for the company to raise funds
but he is confident that it will resolve its debt troubles through
bank financing, the Washington Post says.
The Washington Post reports that Sirius has more than $1.1 billion
in debt that will come due in 2009. "We are looking to raise bank
debt, probably a term that will be a couple to three years, and
that will take out that issue," the Washington Post quoated Mr.
Karmazin as saying. According to the report, Mr. Karmazin said
that Sirius has been going through each line of expenses to lessen
costs and has found $425 million in savings, about $25 million
more than what was expected. The report states that the savings
have come from job cuts among the top executive ranks and sales
and marketing staff, while other savings have come from merging
programming and general and administrative expenses.
Mr. Karmazin said that he would want to take Sirius XM private,
WSJ states. If the company could generate positive cash flow in
2009, privatization would become more feasible, WSJ says, citing
Mr. Karmazin.
Sirius is expected to post an adjusted loss of $350 million in
2008, the Washington Post says, citing Mr. Karmazin. The report
states that Mr. Karmazin said Sirius is on track to earn
$300 million next year, as previously expected. The company
expects to have $2.4 billion in revenues this year and
$2.7 billion next year, according to the report.
Headquartered in New York, Sirius XM Radio Inc. --
http://www.sirius.com/-- formerly Sirius Satellite Radio Inc., is
a satellite radio provider. The company offers over 130 channels
to its subscribers, 69 channels of 100% commercial-free music and
65 channels of sports, news, talk, entertainment, traffic, weather
and data content. Its primary source of revenue is subscription
fees, with most of its customers subscribing to SIRIUS on either
an annual, semi-annual, quarterly or monthly basis. The company
derives revenue from activation fees, the sale of advertising on
its non-music channels, and the direct sale of SIRIUS radios and
accessories. Various brands of SIRIUS radios are Best Buy,
Circuit City, Costco, Crutchfield, Sam's Club, Target and Wal-Mart
and through RadioShack.
SOUTHWEST CHARTER: Can Utilize Arizona Bank's Cash Collateral
-------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Arizona authorized
Southwest Charter Lines Inc. to utilize the cash collateral
securing its obligations to Arizona Bank & Trust.
The Debtor needs access to the cash collateral to satisfy its
ongoing business expenses. Furthermore, the cash collateral will
be able to provide transportation services to attendees of a
convention of the American Legion on August.
A budget for September 2008 is available for free at:
http://researcharchives.com/t/s?3212
AB&T possesses a lien on the receivables and cash collateral of
the Debtor. Continued adequate protection payments will be made
by the Debtor to AB&T.
Headquartered in Gilbert, Arizona, Southwest Charter Lines Inc.
-- http://www.swcl.com/-- provides transportation services. The
company filed for Chapter 11 bankruptcy protection on
May 29, 2008 (D. Ariz. Case No. 08-06252). Donald W. Powell, Esq.
at Carmichael & Powell PC, represent the Debtor as bankruptcy
counsel. When the Debtor filed for Chapter 11 restructuring, it
listed total assets of $12,907,933 and total debts of $12,352,275.
STANDARD PACIFIC: MatlinPatterson Gets 27MM Shares in Offering
--------------------------------------------------------------
Standard Pacific Corp. disclosed in a Securities and Exchange
Commission filing that on Sept. 3, 2008, approximately 27 million
shares of the company's common stock were purchased in the
announced 50 million share common stock registered rights offering
for a total subscription price of approximately $83 million.
Pursuant to the terms of the Investment Agreement between the
Company and MP CA Homes, LLC, an affiliate of MatlinPatterson
Global Advisers LLC, MatlinPatterson was required to purchase, in
the form of junior convertible preferred stock, the common stock
equivalent of the approximately 23 million remaining shares not
purchased in the Rights Offering. On Sept. 3, 2008,
MatlinPatterson purchased the shares, as 69,579 shares of Series B
Preferred Stock, for $69,579,000.
In issuing the 69,579 shares of Series B Preferred Stock to
MatlinPatterson, the Company relied upon the exemption from
registration provided by Section 4(2) of the Securities Act of
1933, as amended. The issuance was exempt from registration
because it was a private sale made without general solicitation or
advertising exclusively to one 'accredited investor' as defined in
Rule 501 of Regulation D. Each certificate issued for the
unregistered securities, or evidence of uncertificated shares,
contains a legend stating that the securities have not been
registered under the Securities Act and setting forth the
restrictions on the transferability and the sale of the
securities. MatlinPatterson has represented to the Company that
it has such knowledge and experience in financial and business
matters and in investments of the type contemplated by the
Investment Agreement that allows it to evaluate the merits and
risks of the purchase.
The number of shares of the Company's common stock into which each
share of the Series B Preferred Stock is convertible is determined
by dividing $1,000 by the applicable conversion price ($3.05 on
the date of issuance, subject to customary anti-dilution
adjustments), plus cash in lieu of fractional shares. The Series B
Preferred Stock ranks pari passu with the Company's common Stock
and series A preferred stock and junior to all other equity
securities of the Company. The Series B Preferred Stock has no
liquidation preference over the common stock. The Series B
Preferred Stock is convertible at the holder's option into shares
of common stock subject to the holder and its affiliates post-
conversion not beneficially owning total voting power of the
Company's voting stock in excess of 49%, and mandatorily converts
into common stock upon the sale, transfer or other disposition of
Series B Preferred Stock by MatlinPatterson or its affiliates.
The Series B Preferred Stock votes together with the common stock
on all matters upon which holders of the common stock are entitled
to vote. Each share of Series B Preferred Stock is entitled to
such number of votes as the number of shares of common stock into
which the Series B Preferred Stock is convertible, provided that
the votes attributable to such shares with respect to any holder
of Series B Preferred Stock cannot exceed more than 49% of the
total voting power of the voting stock of the Company. Shares of
Series B Preferred Stock are entitled to receive only those
dividends declared and paid on the Company's common stock.
About Standard Pacific Corp.
Headquartered in Irvine, California, Standard Pacific Corp.
(NYSE: SPF) -- http://www.standardpacifichomes.com/-- operates
in many of the largest housing markets in the country with
operations in major metropolitan areas in California, Florida,
Arizona, the Carolinas, Texas, Colorado and Nevada. The company
also provides mortgage financing and title services to its
homebuyers through its subsidiaries and joint ventures, Standard
Pacific Mortgage Inc., SPH Home Mortgage and SPH Title.
Below Investment Grade Ratings
As reported in the Troubled Company Reporter on May 22, 2008,
Fitch Ratings has downgraded Standard Pacific Corp.'s ratings as:
(i) issuer default rating to 'B-' from 'B+'; (ii) senior unsecured
to 'B-/RR4' from 'B+/RR4'; (iii) unsecured borrowings under its
bank revolving credit facility to 'B-/RR4' from 'B+/RR4'; and (iv)
senior subordinated debt to 'CCC/RR6' from 'B-/RR6'.
As reported in the Troubled Company Reporter on May 20, 2008,
Standard & Poor's Ratings Services lowered its corporate credit
and senior unsecured debt ratings on Standard Pacific Corp. to
'B-' from 'B+'. At the same time, S&P lowered the subordinated
debt rating to 'CCC' from 'B-' and placed all ratings on the
company on CreditWatch with negative implications. These actions
affect approximately $1.3 billion of unsecured notes.
As reported in the Troubled Company Reporter on May 15, 2008,
Moody's lowered the ratings of Standard Pacific Corp., including
its corporate family rating to B2 from B1, its senior unsecured
notes to B2 from B1, and its senior subordinated notes to Caa1
from B3. The SGL-3 liquidity assessment was affirmed. The
ratings outlook is negative.
STEVE & BARRY'S: Discloses Go-Forward Plan for Existing Stores
--------------------------------------------------------------
Steve & Barry's disclosed its go-forward plan for existing stores,
after its acquisition last month by BH S&B Holdings LLC, a newly
formed affiliate of investment firms Bay Harbour Management and
York Capital Management. Steve & Barry's will operate with a
smaller base of 173 stores, better positioning the company to
reach its profitability goals.
Final liquidation sales, featuring incredible deals on merchandise
for the entire family, have begun at 103 closing STEVE &
BARRY'S(R) locations. The last sales day for 24 of these stores
will be Wednesday, September 24. The other locations will close
soon, although there is no set final sales date.
Regarding new store openings, the company will move forward with
plans to open a STEVE & BARRY'S store in the next few months at
692 Broadway in New York City, former home of the iconic Greenwich
Village Tower Records* store. No other new store decisions have
been finalized at this time.
In its go-forward locations, Steve & Barry's will continue
offering shoppers astonishing values on exclusive celebrity
collections created with Sarah Jessica Parker, Venus Williams,
Amanda Bynes, Laird Hamilton, Ben Wallace and Bubba Watson.
"We're finalizing a strategic business plan that will put Steve &
Barry's on track to meet our profitability goals over the long
term," Andy Todd, president of Steve & Barry's, said. "The
decision to operate with a smaller, more productive store base is
integral to that plan. While the business rationale for this
action is sound, we deeply regret the impact these store closings
will have on our associates, our customers and the communities
where these stores are located. We want to thank all of our
associates for their dedication and outstanding contribution and
will make every effort to transition displaced associates to go-
forward stores wherever possible."
About Steve & Barry's
Based in Port Washington, New York, Steve and Barry LLC --
http://www.steveandbarrys.com/-- is a national casual apparel
retailer that offers high quality merchandise at low prices for
men, women and children. Founded in 1985, the company operates
276 anchor and junior anchor shopping center and mall-based
locations throughout the U.S. At STEVE & BARRY'S (R) stores,
shoppers will find brands they can't find anywhere else, including
the BITTEN(TM) collection, the first-ever apparel line created by
actress and global fashion icon Sarah Jessica Parker, and the
STARBURY(TM) collection of athletic and lifestyle apparel and
sneakers created with NBA (R) star Stephon Marbury.
Steve & Barry's, LLC, and 63 affiliates filed separate voluntary
petitions under Chapter 11 on July 9, 2008 (Bankr. S.D. N.Y. Lead
Case No. 08-12579). Lori R. Fife, Esq., and Shai Waisman, Esq., at
Weil, Gotshal & Manges, LLP, represent the Debtors in their
restructuring efforts.
Diana G. Adams, United States Trustee for Region 2, has appointed
seven members to the Official Committee of Unsecured Creditors in
the Debtors' Chapter 11 cases.
On Aug. 22, 2008, the Debtors obtained permission from the Court
to sell substantially all of their assets for $168 million to a
joint venture by Bay Harbour Management and York Capital, BHY S&B
Holdings, LLC. Under the terms of the purchase agreement,
majority of the Debtors' 276 stores will remain open.
When the Debtors filed for bankruptcy, they listed $693,492,000 in
total assets and $638,086,000 in total debts. (Steve & Barry's
Bankruptcy News, Issue No. 11; Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
SUN PRODUCTS: Moody's Lifts Credit Facilities Rtng to Ba3 from B1
-----------------------------------------------------------------
Moody's Investors Service changed The Sun Products Corporation's
rating outlook to positive, upgraded the company's senior secured
credit facilities to Ba3 from B1 and upgraded the second lien term
loan to B3 from Caa1. The company's B2 corporate family and
probability of default ratings are confirmed. These actions
follow the acquisition of Unilever N.V.'s North American laundry
care business by Vestar ($1.45 billion purchase price) and its
subsequent merger with its Huish Detergent business. This
concludes the review for possible upgrade initiated August 7, 2008
for Huish Detergents, Inc., renamed Sun Products Corporation.
The positive outlook reflects the company's meaningful de-
leveraging to below 6 times debt-to-EBITDA following the merger as
well as good opportunities for operating efficiencies through
enhanced scale and customer relationships. Notably, the current
environment has benefited the company's private label and value
brands and, over the longer term, the company intends to enhance
investment in its mid-tier branded products. While leverage has
declined by several turns as a result of the combination, the
rating is constrained somewhat by the limited financial reporting
available due to the recent carve out of the Unilever's North
American laundry care business as well as by potential challenges
associated with integration process.
The upgrade of the bank credit facilities is driven by the
substantial junior debt now part of the capital structure and, as
a consequence of the transaction, the sizable increase in the bank
lenders' collateral package. An upgrade of the corporate family
rating would be based mostly on the intermediate term financial
performance tracking the combination as presented including
leverage remaining under 5 times.
These rating actions have been taken:
-- Corporate family rating confirmed at B2;
-- Probability of default rating confirmed at B2;
-- $125 million senior secured revolving credit due 2013
upgraded to Ba3 (LGD2, 26%) from B1 (LGD3, 36%);
-- $825 million first lien term loan due 2014 upgraded to Ba3
(LGD2, 26%) from B1 (LGD 3, 36%);
-- $225 million second lien term loan due 2014 upgraded to B3
(LGD4, 64%) from Caa1 (LGD 5, 88%);
The rating outlook is positive.
The Sun Products Corporation, previously Huish Detergents, Inc.,
based in Connecticut, is a leading manufacturer of laundry and
dish detergents, fabric softeners and related household and
personal care products. Pro forma for the transaction, the Sun
Products Corporation reported revenues of about $1.8 billion for
the fiscal year ended December 31, 2007.
SYMPHONY CLO: Moody's Rates $14MM Class D Deferrable Notes 'Ba2'
----------------------------------------------------------------
Moody's Investors Service has assigned ratings to Notes issued by
Symphony CLO VI, Ltd.:
(1) Aaa to the U.S. $285,000,000 Class A-1 Senior Secured
Floating Rate Notes due 2019;
(2) Aa2 to the U.S. $24,800,000 Class A-2 Senior Secured
Floating Rate Notes due 2019;
(3) A2 to the U.S. $23,100,000 Class B Senior Secured Deferrable
Floating Rate Notes due 2019;
(4) Baa2 to the U.S. $8,000,000 Class C Senior Secured
Deferrable Floating Rate Notes due 2019; and
(5) Ba2 to the U.S. $14,000,000 Class D Secured Deferrable
Floating Rate Notes due 2019.
The Moody's ratings of the Notes address the ultimate cash receipt
of all required interest and principal payments, as provided by
the Notes' governing documents, and are based on the expected loss
posed to Noteholders, relative to the promise of receiving the
present value of such payments.
The ratings reflect the risks due to the diminishment of cash flow
from the underlying portfolio consisting of Debt Obligations,
Participation Interests and Synthetic Securities due to defaults,
the transaction's legal structure and the characteristics of the
underlying assets.
Symphony Asset Management LLC will manage the selection,
acquisition and disposition of collateral on behalf of the Issuer.
TRONOX INC: Sued by Government for $280 Mil. in Clean-Up Costs
--------------------------------------------------------------
Tronox LLC disclosed with the Securities and Exchange Commission
that it has received a complaint in a lawsuit entitled United
States of America v. Tronox LLC in the United States District
Court for the District of New Jersey. Pursuant to the Complaint,
the United States seeks recovery from Tronox LLC of costs incurred
and to be incurred by the United States in response to releases or
threatened releases of hazardous substances at or from the Federal
Creosoting Superfund site located in the borough of Manville,
Somerset County, New Jersey. According to the complaint, as of
June 15, 2008, the United States has incurred at least $280
million in unreimbursed response costs related to the cleanup.
In 1999, Tronox LLC, a wholly owned subsidiary of Tronox
Incorporated, was named as a Potential Responsible Party under The
Comprehensive Environmental Response, Compensation, and Liability
Act at a former wood treatment site in New Jersey at which the EPA
conducted a cleanup.
"Tronox LLC did not operate the site which was sold to a third
party before Tronox LLC seceded to the interests of a predecessor
in the 1960s. Like Tronox LLC, the predecessor also did not
operate the site which had been closed down before it was acquired
by the predecessor," Michael J. Foster, Tronox's vice president,
general counsel and secretary says. "Based on historical records,
there are substantial uncertainties about whether or under what
terms the predecessor assumed any liabilities for the site. Tronox
LLC vehemently disagrees with the allegations asserted against it
in the complaint and intends to vigorously defend the suit."
A full-text copy of the complaint is available at no charge at:
http://ResearchArchives.com/t/s?322f
About Tronox Incorporated
Headquartered in Oklahoma City, Tronox Incorporated (NYSE:TRX) --
http://www.tronox.com/-- is a producer and marketer of titanium
dioxide pigment. Titanium dioxide pigment is an inorganic white
pigment used in paint, coatings, plastics, paper and many other
everyday products. The company's five pigment plants, which are
located in the United States, Australia, Germany and the
Netherlands, supply performance products to approximately 1,100
customers in 100 countries. In addition, Tronox produces
electrolytic products, including sodium chlorate, electrolytic
manganese dioxide, boron trichloride, elemental boron and lithium
manganese oxide.
The company has $1.7 billion in total assets, including
$703.5 million in current assets, as at June 30, 2008. The
company has $937.8 million in current debts and $336.9 million in
total noncurrent debts.
TRONOX INC: Undecided on NYSE Delisting Notice
----------------------------------------------
Tronox Inc. disclosed in a regulatory filing with the Securities
and Exchange Commission that on Aug. 28, 2008, it was notified by
the New York Stock Exchange that it is not in compliance with the
NYSE's continued listing standard regarding the average closing
price of its Class B Common Stock. The NYSE's notice indicated
that the average closing price of the Company's Class B Common
Stock was less than $1.00 over the 30 consecutive trading day
period ended Aug. 27, 2008.
The Company must bring its average share price back above $1.00 by
six months following receipt of the notice and must notify the
NYSE within 10 business days to acknowledge receipt of the notice
and indicate its intent to cure the deficiency or be subject to
delisting or suspension procedures.
On Aug. 21, 2008, the Company informed the Securities and Exchange
Commission regarding its failure to satisfy a different NYSE
listing standard regarding its average market capitalization.
The Company has not decided on what action, if any, it will take
with respect to its failure to satisfy NYSE listing standards. If
the Company fails to cure its listing deficiencies, the NYSE will
commence suspension and delisting procedures.
Separately, Tronox Incorporated named Gary Pittman vice president
of special projects on September 3, 2008. The Company entered
into an employment contract that is effective until September 3,
2009, and if not terminated at the end of that term, will
automatically renew for successive one-year periods. Pursuant to
the agreement, among other things, Mr. Pittman will receive a base
salary of $350,000 per annum and will be eligible for bonuses.
Mr. Pittman will be entitled to four weeks of vacation and the use
of an apartment leased in Oklahoma City. Upon termination, other
than for "cause," Mr. Pittman is eligible for a payment of twice
his base salary.
Additionally, effective September 5, 2008, Thomas W. Adams
resigned as a Director of Tronox.
About Tronox Incorporated
Headquartered in Oklahoma City, Tronox Incorporated (NYSE:TRX) --
http://www.tronox.com/-- is a producer and marketer of titanium
dioxide pigment. Titanium dioxide pigment is an inorganic white
pigment used in paint, coatings, plastics, paper and many other
everyday products. The company's five pigment plants, which are
located in the United States, Australia, Germany and the
Netherlands, supply performance products to approximately 1,100
customers in 100 countries. In addition, Tronox produces
electrolytic products, including sodium chlorate, electrolytic
manganese dioxide, boron trichloride, elemental boron and lithium
manganese oxide.
The company has $1.7 billion in total assets, including
$703.5 million in current assets, as at June 30, 2008. The
company has $937.8 million in current debts and $336.9 million in
total noncurrent debts.
UMMBA 1 LLC: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------
Debtor: UMMBA 1 LLC
dba UMMBA Grill
10250 Santa Monica Blvd. #200
Los Angeles, CA 90067
Bankruptcy Case No.: 08-25140
Chapter 11 Petition Date: September 16, 2008
Court: Central District Of California (Los Angeles)
Judge: Ellen Carrol
Debtor's Counsel: Gerald McNally, Esq.
gm@mcesq.com
206 N. Jackson St., Ste. 100
Glendale, CA 91206-4330
Tel: (818) 507-5100
Fax: (818) 507-5001
http://mcesq.com/
Estimated Assets: $500,000 to $1 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/califcb08-25140.pdf
VICTOR INSULATORS: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------------
Debtor: Victor Insulators, Inc.
280 Maple Avenue
Victor, NY 14564
Tel: (585) 924-2127
Fax: (585) 924-7906
Bankruptcy Case No.: 08-22385
Type of Business: The Debtor makes high voltage insulators in
North America.
See: http://www.victorinsulators.com/
Chapter 11 Petition Date: September 16, 2008
Court: Western District of New York (Rochester)
Debtor's Counsel: Beth Ann Bivona, Esq.
bbivona@damonmorey.com
Daniel F. Brown, Esq.
dbrown@damonmorey.com
Damon & Morey LLP
1000 Cathedral Place
298 Main Street
Buffalo, NY 14202-4096
Tel: (716) 856-5500
Fax: (716) 856-5537
damonmorey.com
Estimated Assets: $1 million to $10 million
Estimated Debts: $10 million to $50 million
A list of the Debtor's largest unsecured creditors is available
for free at:
http://bankrupt.com/misc/nywb08-22385.pdf
VINEYARD CHRISTIAN: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------------
Debtor: Vineyard Christian Fellowship of Malibu
23825 Stuart Ranch Road
Malibu, CA 90265
Bankruptcy Case No.: 08-16951
Chapter 11 Petition Date: September 12, 2008
Court: Central District Of California (San Fernando Valley)
Judge: Geraldine Mund
Debtor's Counsel: James Stang, Esq.
jstang@pszjlaw.com
Pachulski Stang Ziehl & Jones LLP
10100 Santa Monica Blvd. 1100
Los Angeles, CA 90067
Tel: (310) 277-6910
Fax: (310) 201-0760
Estimated Assets: $10 million to $50 million
Estimated Debts: $10 million to $50 million
Debtor's 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
The Estate of Robert Bruce loan $2,988,303
Scott II and Mary Devine
Scott
20677 W. Rockpoint Way
Malibu, CA 90265
Tel: (310) 456-8259
Byron Scott Minerd loan $341,622
128 Reef Mall
Marina Del Rey, CA 90292
Tel: (310) 567-1270
B. Joan Gibson trade debt $111,100
Accountants
P.O. Box 907
Alta Loma, CA 91701-0907
Dance for Kids LLC tenant deposit $34,000
Beitler Commercial Realty commission $28,652
Services
Holthhouse Carlin & Van Trigt trade debt $17,340
LLP
John Gibson trade debt $15,000
John E. Cadenhead, Jr. trade debt $9,130
James E. Arden, Esq. payroll $8,554
Southern California Edison utilities $6,637
Phillips 66 -- Conoco 76 credit card $2,685
Acey Decy Equipment Co. Inc. trade debt $2,480
L.A. County Waterworks utilities $1,563
Amtech Elevator Services trade debt $1,541
Security Life Insurance insurance $1,312
EPD Construction trade debt $1,200
Malibu Business and Shipping trade debt $1,118
Center
Waste Management GI Industries trade debt $770
TSI Inc. trade debt $585
VTA OKLAHOMA: Files Chapter 11 Bankruptcy in Oklahoma
-----------------------------------------------------
Shepherd Mall, Oklahoma City's oldest enclosed shopping center,
has filed for Chapter 11 bankruptcy, Steve Lackmeyer, business
writer for The Oklahoman reported. VTA Oklahoma City LLC is the
owner of Shepherd Mall.
According to The Oklahoman's Bryan Terry, VTA Oklahoma City LLC
paid too high a price, a reported $48.5 million -- when it
purchased Shepherd Mall in 2005.
Ford Price, co-managing partner of Price Edwards & Co., a real
estate service firm in Oklahoma, was not surprised by the filing,
the report said.
"I don't have any definitive facts on what's going on," Mr. Price
said, according to the report. "I have spoken to reps over the
years about the property. It was pretty clear to me that perhaps
they had over-leveraged the property. I don't know the terms of
their financing — but it did seem as if they were having trouble."
About VTA Oklahoma City
Based in Oklahoma city, VTA Oklahoma City, LLC dba. Shepherd Mall,
filed for Chapter 11 protection on Sept. 10, 2008 (Bankr. W.D.
Okla. 08-13982). Joseph A. Friedman, Esq., at Coleman & Logan PC,
represents the Debtor as counsel.
When the Debtor filed for protection from its creditors, it listed
assets between $50 million and $100 million, and debts of between
$10 million and $50 million.
WELLMAN INC: Gets More Time to Challenge Committee Probe
--------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
gave Wellman Inc. and its debtor-affiliates, Deutsche Bank Trust
Company Americas, Bank of New York, and Wilmington Trust Company
until Sept. 21, 2008, to file their objections to the proposed
investigation by the Debtors' Official Committee of Unsecured
Creditors.
The Creditors Committee proposed the investigation to evaluate a
transaction in 2004, wherein Wellman Inc., refinanced about
$375,000,000, in unsecured debt. The transaction allegedly
resulted in the Debtors accumulating secured debt.
The Court also pushed the challenge deadline to Oct. 5, 2008.
The Creditors Committee, however, has been barred from challenging
the provisions and stipulations by the Debtors in connection with
their DIP Loans following the panel's failure to do so by June 8,
2008, as required by the previous court orders.
The Court will convene a hearing on Sept. 25, 2008 to consider
approval of the proposed investigation.
The parties filed the fourth stipulation in light of the
Creditors Committee's withdrawal of its prior motion to lift the
automatic stay. The motion sought the Court's ruling to either
vacate the automatic stay or declare that the stay was vacated by
consent of the Debtors on the date of their bankruptcy filing.
Headquartered in Fort Mill, South Carolina, Wellman Inc. ([OTC]:
WMANQ.OB) -- http://www.wellmaninc.com/-- manufactures and
markets packaging and engineering resins used in food and
beverage packaging, apparel, home furnishings and
automobiles. They manufacture resins and polyester staple fiber a
three major production facilities.
The company and its debtor-affiliates filed for Chapter 11
protection on Feb. 22, 2008 (Bankr. S.D. N.Y. Case No.
08-10595). Jonathan S. Henes, Esq., at Kirkland & Ellis, LLP,
in New York City, represents the Debtors. Lazard Freres & Co.,
LLC, acts as the Debtors' financial advisors and investment
bankers. Conway, Del Genio, Gries & Co., LLC, was also retained
as the Debtors' chief restructuring advisor.
The United States Trustee for Region 2 has appointed seven members
to the Official Committee of Unsecured Creditors. Mark R.
Somerstein, Esq., at Ropes & Gray LLP, serves as the Committee's
bankruptcy counsel. FTI Consulting, Inc., acts as the panel's
financial advisors.
Wellman Inc., in its bankruptcy petition, listed total assets
of $124,277,177 and total liabilities of $600,084,885, as of
Dec. 31, 2007, on a stand-alone basis. Debtor-affiliate ALG,
Inc., listed assets between $500 million and $1 billion on a
stand-alone basis at the time of the bankruptcy filing.
Debtor-affiliates Fiber Industries Inc., Prince Inc., and
Wellman of Mississippi Inc., listed assets between $100 million
and $500 million at the time of their bankruptcy filings.
On a consolidated basis, Wellman Inc., and its debtor-affiliates
listed $512,400,000 in total assets and $730,500,000 in
liabilities as of June 30, 2008.
Wellman filed a restructuring plan before the Bankruptcy Court on
June 25, 2008. (Wellman Bankruptcy News; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000).
WEST END: Case Summary & 18 Largest Unsecured Creditors
-------------------------------------------------------
Debtor: West End Condominiums, LLC
4125 West End Road
Cocoa Beach, FL 32931
Bankruptcy Case No.: 08-08261
Chapter 11 Petition Date: September 16, 2008
Court: Middle District of Florida (Orlando)
Debtor's Counsel: Prabodh C. Patel, Esq.
lpather@moyerstrauspatel.com
Moyer Straus & Patel P.A.
118 West Orange Street
Altamonte Springs, FL 32714
Tel: (407) 331-5505
Fax: (407) 331-6308
Estimated Assets: Less than $50,000
Estimated Debts: $10 million to $50 million
A list of the Debtor's largest unsecured creditors is available
for free at:
http://bankrupt.com/misc/flmb08-08261.pdf
WIDEOPENWEST FINANCE: Moody's Affirms Corp. Family Rating at 'B3'
-----------------------------------------------------------------
Moody's Investors Service affirmed its ratings for WideOpenWest
Finance, LLC, including the company's B3 corporate family and
probability of default ratings, B2 senior secured first lien
ratings and Caa2 senior secured second lien rating. The rating
outlook remains stable.
WideOpenWest Finance, LLC - ratings affirmed
-- B3 Corporate Family Rating
-- B3 Probability of Default Rating
-- B2, LGD3, 40% Senior Secured Revolving Credit Facility due
2013
-- B2, LGD3, 40% Senior Secured First Lien Term Loan due 2014
-- Caa2, LGD6, 91% Senior Secured Second Lien Term Loan due 2015
-- Rating Outlook -- Stable
Ratings broadly reflect the company's high financial leverage,
negative free cash flow generation, tightening liquidity and
heightened competition from larger cable, telecom, and direct
broadcast satellite operators. These risks are somewhat
mitigated, however, by WOW's high quality network, its growing
subscriber base across all products, expectations of continued
margin improvement due to realization of further cost synergies
following its Sigecom acquisition, and the perceived strength of
its management team. Although the company's credit metrics have
improved and incremental balance sheet strengthening is expected
to benefit further from improved operating performance, ratings
are somewhat tempered by the company's constrained liquidity
profile and its history of shareholder-friendly financing
activities.
WideOpenWest Finance, LLC is a competitive broadband provider
offering cable TV, high speed Internet and telephony services.
The company had approximately 418,000 basic video subscribers as
of June 30, 2008 across markets in portions of Michigan, Illinois,
Ohio, and Indiana. WOW produced $513 million in revenue for the
last twelve months as of June 30, 2008 and maintains headquarters
in Englewood, Colorado.
YOUNG BROADCASTING: Mario Gabelli et. al Discloses 9.82% Stake
--------------------------------------------------------------
Mario J. Gabelli and various entities which he directly or
indirectly controls or for which he acts as chief investment
officer, disclosed in a Schedule 13D filing with the U.S.
Securities and Exchange Commission that they may be deemed to
beneficially own 2,144,000 of common shares of Young Broadcasting
Inc., representing 9.82% of the 21,836,161 shares outstanding as
of June 30, 2008.
Gabelli Funds, LLC beneficially owned 910,000 shares, representing
4.17% of the outstanding shares in the company.
GAMCO Asset Management Inc. beneficially owned 1,204,000 shares,
representing 5.51% of the outstanding shares in the company.
Teton Advisors, Inc. beneficially owned 30,000 shares,
representing 0.14% of the outstanding shares in the company.
About Young Broadcasting
Headquartered in New York City, Young Broadcasting Inc. --
http://www.youngbroadcasting.com/-- owns ten television stations
and the national television representation firm, Adam Young Inc.
Five stations are affiliated with the ABC Television Network,
three are affiliated with the CBS Television Network, one is
affiliated with the NBC Television Network, and one is affiliated
with MyNetwork. In addition, KELO-TV-Sioux Falls, SD is also the
MyNetwork affiliate in that market through the use of its digital
channel capacity.
* * *
As reported in the Troubled Company Reporter on Sept. 9, 2008,
Standard & Poor's Ratings Services lowered its corporate credit
rating and issue-level ratings on New York City-based Young
Broadcasting Inc. The corporate credit rating was lowered to
'CCC' from 'CCC+'. The rating outlook is negative. The company
had about $826 million of outstanding debt as of
June 30, 2008.
* Moody's Cuts and Reviews Ratings on 36 Tranches of TruPs
----------------------------------------------------------
Moody's has downgraded and left on review for further possible
downgrade 36 tranches, and placed additional 21 tranches on review
for possible downgrade, across 14 Trust Preferred CDOs.
The downgrades are prompted by the exposure of these TRUP CDOs to
trust preferred securities issued by eight banks taken over by
their regulators in recent months. This rating action reflects
Moody's assumption that that there will be zero recovery on the
trust preferred securities issued by these banks. In addition,
Moody's assumes recoveries will be low on some of the other trust
preferred securities currently deferring coupon payments in the
collateral pools backing these securitizations. While
historically many banks that have deferred payment on trust
preferred securities have ultimately resumed payment, Moody's
expects many banks deferring in the current environment are
unlikely to become current again.
The initiation of the additional review for possible downgrades
reflects a general concern that the risk of deferrals is
increasing for bank issuers of trust preferred securities. The
specific TRUP CDO tranches placed on review for downgrade were
selected because preliminary testing revealed their ratings could
be affected by an increase in the pool-wide default probability
and correlation assumptions used for trust preferred securities
that are currently performing.
Moody's review will focus on the implications of adjustments that
may be necessary in pool-wide default probability and asset
correlation assumptions to reflect the current environment. In
addition, Moody's will seek to identify which securitization may
have unusually high concentration exposures to banks in regions in
which real estate prices have depreciated the most. In light of
these revised assumptions, Moody's anticipates further pressure on
TRUP CDO ratings, especially the mezzanine and subordinated
tranches.
Issuer: Alesco Preferred Funding III, Ltd.
1) Class Description: $160,000,000 Class A-1 First Priority Senior
Secured Floating Rate Notes Due 2034
-- Prior Rating: Aaa
-- Prior Rating Date: 3/31/2004
-- Current Rating: Aaa, on review for possible downgrade
2) Class Description: $40,500,000 Class B-1 Mezzanine Secured
Floating Rate Notes Due 2034
-- Prior Rating: A3, on review for possible downgrade
-- Prior Rating Date: 7/22/2008
-- Current Rating: Ba1, on review for possible downgrade
3) Class Description: $63,500,000 Class B-2 Mezzanine Secured
Fixed/Floating Rate Notes Due 2034
-- Prior Rating: A3, on review for possible downgrade
-- Prior Rating Date: 7/22/2008
-- Current Rating: Ba1, on review for possible downgrade
Issuer: Alesco Preferred Funding IV, Ltd.
1) Class Description: $195,000,000 Class A-1 First Priority Senior
Secured Floating Rate Notes Due 2034,
-- Prior Rating: Aaa
-- Prior Rating Date: 7/28/2004
-- Current Rating: Aaa, on review for possible downgrade
2) Class Description: $62,380,000 Class B-1 Mezzanine Secured
Floating Rate Notes Due 2034;
-- Prior Rating: A2, on review for possible downgrade
-- Prior Rating Date: 7/22/2008
-- Current Rating: Ba1, on review for possible downgrade
3) Class Description: $51,620,000 Class B-2 Mezzanine Secured
Fixed/Floating Rate Notes Due 2034;
-- Prior Rating: A2, on review for possible downgrade
-- Prior Rating Date: 7/22/2008
-- Current Rating: Ba1, on review for possible downgrade
4) Class Description: $3,000,000 Class B-3 Mezzanine Secured
Fixed/Floating Rate Notes Due 2034
-- Prior Rating: A2, on review for possible downgrade
-- Prior Rating Date: 7/22/2008
-- Current Rating: Ba1, on review for possible downgrade
Issuer: Alesco Preferred Funding V, Ltd.
1) Class Description: $189,000,000 Class A-1 First Priority Senior
Secured Floating Rate Notes Due 2034
-- Prior Rating: Aaa
-- Prior Rating Date: 9/24/2004
-- Current Rating: Aaa, on review for possible downgrade
2) Class Description: $42,000,000 Class A-2 Second Priority Senior
Secured Floating Rate Notes Due 2034
-- Prior Rating: Aaa
-- Prior Rating Date: 9/24/2004
-- Current Rating: Aaa, on review for possible downgrade
3) Class Description: $10,000,000 Class B Deferrable Third
Priority Secured Floating Rate Notes Due 2034
-- Prior Rating: Aa2
-- Prior Rating Date: 9/24/2004
-- Current Rating: Aa2, on review for possible downgrade
4) Class Description: $42,350,000 Class C-1 Deferrable Mezzanine
Secured Floating Rate Notes Due 2034
-- Prior Rating: A2, on review for possible downgrade
-- Prior Rating Date: 7/22/2008
-- Current Rating: Baa2, on review for possible downgrade
5) Class Description: $37,700,000 Class C-2 Deferrable Mezzanine
Secured Fixed/Floating Rate Notes Due 2034
-- Prior Rating: A2, on review for possible downgrade
-- Prior Rating Date: 7/22/2008
-- Current Rating: Baa2, on review for possible downgrade
6) Class Description: $4,450,000 Class C-3 Deferrable Mezzanine
Secured Fixed/Floating Rate Notes Due 2034
-- Prior Rating: A2, on review for possible downgrade
-- Prior Rating Date: 7/22/2008
-- Current Rating: Baa2, on review for possible downgrade
7) Class Description: $6,300,000 Class D Deferrable Subordinate
Secured Floating Rate Notes Due 2034
-- Prior Rating: Baa2, on review for possible downgrade
-- Prior Rating Date: 7/22/2008
-- Current Rating: Ba2, on review for possible downgrade
Issuer: MMCaps Funding XVIII, Ltd.
1) Class Description: $185,100,000 Class A-1 Floating Rate Notes
Due 2039
-- Prior Rating: Aaa
-- Prior Rating Date: 12/21/2006
-- Current Rating: Aaa, on review for possible downgrade
2) Class Description: $21,800,000 Class A-2 Floating Rate Notes
Due 2039
-- Prior Rating: Aaa
-- Prior Rating Date: 12/21/2006
-- Current Rating: Aaa, on review for possible downgrade
3) Class Description: $20,100,000 Class B Floating Rate Notes Due
2039
-- Prior Rating: Aa2
-- Prior Rating Date: 12/21/2006
-- Current Rating: Aa2, on review for possible downgrade
4) Class Description: $55,900,000 Class C-1 Floating Rate
Deferrable Interest Notes Due 2039
-- Prior Rating: A3, on review for possible downgrade
-- Prior Rating Date: 7/22/2008
-- Current Rating: Baa3, on review for possible downgrade
5) Class Description: $12,000,000 Class C-2 Fixed/Floating Rate
Deferrable Interest Notes Due 2039
-- Prior Rating: A3, on review for possible downgrade
-- Prior Rating Date: 7/22/2008
-- Current Rating: Baa3, on review for possible downgrade
6) Class Description: $4,000,000 Class C-3 Fixed Rate Deferrable
Interest Notes Due 2039
-- Prior Rating: A3, on review for possible downgrade
-- Prior Rating Date: 7/22/2008
-- Current Rating: Baa3, on review for possible downgrade
Issuer: Preferred Term Securities, Ltd.
1) Class Description: $90,000,000 Fixed Rate Mezzanine Notes Due
September 15, 2030
-- Prior Rating: Baa2, on review for possible downgrade
-- Prior Rating Date: 7/22/2008
-- Current Rating: Ba1, on review for possible downgrade
Issuer: Preferred Term Securities VII, Ltd:
1) Class Description: $177,900,000 Floating Rate Mezzanine Notes
due October 3, 2032
-- Prior Rating: A1, on review for possible downgrade
-- Prior Rating Date: 7/22/2008
-- Current Rating: Baa3, on review for possible downgrade
Issuer: Preferred Term Securities VIII, Ltd.
1) Class Description: $58,700,000 Floating Rate Class B-1
Mezzanine Notes Due 2033
-- Prior Rating: A2, on review for possible downgrade
-- Prior Rating Date: 7/22/2008
-- Current Rating: Baa3, on review for possible downgrade
2) Class Description: $30,700,000 Fixed/Floating Rate Class B-2
Mezzanine Notes Due 2033
-- Prior Rating: A2, on review for possible downgrade
-- Prior Rating Date: 7/22/2008
-- Current Rating: Baa3, on review for possible downgrade
3) Class Description: $75,000,000 Fixed/Floating Rate Class B-3
Mezzanine Notes Due 2033
-- Prior Rating: A2, on review for possible downgrade
-- Prior Rating Date: 7/22/2008
-- Current Rating: Baa3, on review for possible downgrade
Issuer: Preferred Term Securities XXV Ltd.
1) Class Description: the $482,600,000 Floating Rate Class A-1
Senior Notes Due June 22, 2037
-- Prior Rating: Aaa
-- Prior Rating Date: 3/23/2007
-- Current Rating: Aaa, on review for possible downgrade
2) Class Description: $129,400,000 Floating Rate Class A-2 Senior
Notes Due June 22, 2037
-- Prior Rating: Aaa
-- Prior Rating Date: 3/23/2007
-- Current Rating: Aaa, on review for possible downgrade
3) Class Description: $61,400,000 Floating Rate Class B-1
Mezzanine Notes Due June 22, 2037
-- Prior Rating: Aa2
-- Prior Rating Date: 3/23/2007
-- Current Rating: Aa2, on review for possible downgrade
4) Class Description: $25,000,000 Fixed/Floating Rate Class B-2
Mezzanine Notes Due June 22, 2037
-- Prior Rating: Aa2
-- Prior Rating Date: 3/23/2007
-- Current Rating: Aa2, on review for possible downgrade
5) Class Description: $82,300,000 Floating Rate Class C-1
Mezzanine Notes Due June 22, 2037
-- Prior Rating: A3, on review for possible downgrade
-- Prior Rating Date: 7/22/2008
-- Current Rating: Baa2, on review for possible downgrade
6) Class Description: $18,500,000 Fixed/Floating Rate Class C-2
Mezzanine Notes Due June 22, 2037
-- Prior Rating: A3, on review for possible downgrade
-- Prior Rating Date: 7/22/2008
-- Current Rating: Baa2, on review for possible downgrade
Issuer: Preferred Term Securities XXVI Ltd.
1) Class Description: $530,250,000 Floating Rate Class A-1 Senior
Notes Due September 22, 2037
-- Prior Rating: Aaa
-- Prior Rating Date: 6/29/2007
-- Current Rating: Aaa, on review for possible downgrade
2) Class Description: $71,500,000 Floating Rate Class C-1
Mezzanine Notes Due September 22, 2037
-- Prior Rating: A3, on review for possible downgrade
-- Prior Rating Date: 7/22/2008
-- Current Rating: Baa2, on review for possible downgrade
3) Class Description: $39,500,000 Fixed/Floating Rate Class C-2
Mezzanine Notes Due September 22, 2037
-- Prior Rating: A3, on review for possible downgrade
-- Prior Rating Date: 7/22/2008
-- Current Rating: Baa2, on review for possible downgrade
Issuer: Regional Diversified Funding 2004-1
1) Class Description: $144,000,000 Class A-1 Floating Rate Senior
Notes Due 2034
-- Prior Rating: Aaa
-- Prior Rating Date: 3/31/2004
-- Current Rating: Aa1, on review for possible downgrade
2) Class Description: $62,000,000 Class A-2 Floating Rate Senior
Notes Due 2034
-- Prior Rating: Aaa, on review for possible downgrade
-- Prior Rating Date: 8/14/2008
-- Current Rating: Aa2, on review for possible downgrade
3) Class Description: $22,000,000 Class B-1 Floating Rate Senior
Subordinate Notes Due 2034
-- Prior Rating: A3, on review for possible downgrade
-- Prior Rating Date: 7/22/2008
-- Current Rating: Ba1, on review for possible downgrade
4) Class Description: $95,000,000 Class B-2 Fixed/Floating Rate
Senior Subordinate Notes Due 2034
-- Prior Rating: A3, on review for possible downgrade
-- Prior Rating Date: 7/22/2008
-- Current Rating: Ba1, on review for possible downgrade
Issuer: TPREF Funding III Ltd.
1) Class Description: Class A-2 Floating Rate Senior Notes
-- Prior Rating: Aaa
-- Prior Rating Date: 2/28/2003
-- Current Rating: Aaa, on review for possible downgrade
2) Class Description: Class B-1 Floating Rate Senior Subordinated
Notes
-- Prior Rating: A2, on review for possible downgrade
-- Prior Rating Date: 7/22/2008
-- Current Rating: Baa3, on review for possible downgrade
3) Class Description: Class B-2 Floating Rate Senior Subordinate
Notes
-- Prior Rating: A2, on review for possible downgrade
-- Prior Rating Date: 7/22/2008
-- Current Rating: Baa3, on review for possible downgrade
Issuer: Trapeza CDO I, LLC:
1) Class Description: $54.6.0 million of Class B-1 Second Priority
Senior Secured Floating Rate Notes due 2032
-- Prior Rating: Aa1
-- Prior Rating Date: 11/27/2002
-- Current Rating: Aa1, on review for possible downgrade
2) Class Description: $2.0 million of Class B-2 Second Priority
Senior Secured Floating Rate Notes due 2032
-- Prior Rating: Aa1
-- Prior Rating Date: 11/27/2002
-- Current Rating: Aa1, on review for possible downgrade
3) Class Description: $16.0 million of Class B-3 Second Priority
Senior Secured Fixed Rate Notes due 2032
-- Prior Rating: Aa1
-- Prior Rating Date: 11/27/2002
-- Current Rating: Aa1, on review for possible downgrade
4) Class Description: $29.6 million of Class C-1 Third Priority
Senior Secured Floating Rate Notes due 2032
-- Prior Rating: A2, on review for possible downgrade
-- Prior Rating Date: 7/22/2008
-- Current Rating: Baa3, on review for possible downgrade
5) Class Description: $10.0 million of Class C-2 Third Priority
Senior Secured Fixed Rate Notes due 2032
-- Prior Rating: A2, on review for possible downgrade
-- Prior Rating Date: 7/22/2008
-- Current Rating: Baa3, on review for possible downgrade
6) Class Description: $16.5 million of Class D Mezzanine Secured
Floating Rate Notes due 2032
-- Prior Rating: Baa2, on review for possible downgrade
-- Prior Rating Date: 7/22/2008
-- Current Rating: Ba3, on review for possible downgrade
Issuer: Trapeza CDO II, LLC:
1) Class Description: $100,000,000 Class A1B Second Priority
Senior Secured Floating Rate Notes due 2033
-- Prior Rating: Aaa
-- Prior Rating Date: 3/31/2003
-- Current Rating: Aaa, on review for possible downgrade
2) Class Description: $27,000,000 of Class B Third Priority Senior
Secured Floating Rate Notes due 2033
-- Prior Rating: Aa1
-- Prior Rating Date: 3/31/2003
-- Current Rating: Aa1, on review for possible downgrade
3) Class Description: $43,500,000 Class C-1 Fourth Priority
Secured Floating Rate Notes due 2033
-- Prior Rating: A2, on review for possible downgrade
-- Prior Rating Date: 7/22/2008
-- Current Rating: Baa1, on review for possible downgrade
4) Class Description: $54,800,000 Class C-2 Fourth Priority
Secured Fixed/Floating Rate Notes due 2033
-- Prior Rating: A2, on review for possible downgrade
-- Prior Rating Date: 7/22/2008
-- Current Rating: Baa1, on review for possible downgrade
5) Class Description: $18,700,000 of Class D Mezzanine Secured
Floating Rate Notes due 2033
-- Prior Rating: Baa2, on review for possible downgrade
-- Prior Rating Date: 7/22/2008
-- Current Rating: Ba1, on review for possible downgrade
Issuer: Tropic CDO I, Ltd.
1) Class Description: $90,000,000 of Class A-2L Floating Rate
Notes due 2033,
-- Prior Rating: Aaa
-- Prior Rating Date: 5/02/2003
-- Current Rating: Aaa, on review for possible downgrade
2) Class Description: $42,000,000 of Class A-3L Floating Rate
Notes due 2033,
-- Prior Rating: Aa1
-- Prior Rating Date: 5/02/2003
-- Current Rating: Aa1, on review for possible downgrade
3) Class Description: $48,000,000 Class A-4L Floating Rate Notes
due 2033
-- Prior Rating: A2, on review for possible downgrade
-- Prior Rating Date: 7/22/2008
-- Current Rating: Baa2, on review for possible downgrade
4) Class Description: $32,000,000 Class A-4 Fixed/Floating Rate
Notes due 2033
-- Prior Rating: A2, on review for possible downgrade
-- Prior Rating Date: 7/22/2008
-- Current Rating: Baa2, on review for possible downgrade
5) Class Description: $25,000,000 of Class B-1L Floating Rate
Notes due 2033
-- Prior Rating: Baa2, on review for possible downgrade
-- Prior Rating Date: 7/22/2008
-- Current Rating: Ba2, on review for possible downgrade
* Fitch Weighs Potential Rtngs Impact on CDOs of LBHI's Bankruptcy
------------------------------------------------------------------
Fitch Ratings is currently assessing the potential ratings impact
of the bankruptcy of Lehman Brothers Holdings Inc. on synthetic
collateralized debt obligations that it rates. Following LBHI's
declaration of bankruptcy on Sept. 15, Fitch downgraded the Issuer
Default Rating and debt ratings of LBHI and its parent of Lehman
Brothers Inc., along with other subsidiaries.
These downgrades are expected to adversely impact the ratings of
synthetic CDOs whose credit quality is linked in some way to that
of Lehman-related entities.
Lehman Brothers Holdings Inc., Lehman Brothers Inc., Lehman
Brothers Special Financing Inc., and other Lehman entities were
active participants in the synthetic CDO market in recent years.
The participation of the Lehman entities expected to impact CDO
ratings can be divided into two main categories; instances where
Lehman provided credit support to the CDO, either as a credit
default swap counterparty or as a charged asset, and instances
where Lehman's debt was referenced as part of the CDO portfolio.
Lehman acted as swap counterparty in 69 Fitch-rated synthetic
CDOs; 31 in Europe; 35 in Asia; three in the U.S. In many of
these transactions, Lehman Brothers Special Financing Inc. acted
as the buyer of credit protection from the CDO as CDS swap
counterparty, and Lehman Brothers Holdings Inc. acted as a
guarantor or credit support provider. The impact on CDO note
ratings where a Lehman entity acts as swap counterparty will
depend upon many factors, including whether the CDO transaction
faces an automatic unwind following the Lehman bankruptcy, whether
the swap may be transferred to another counterparty, and the
extent to which noteholders may be subject to market value risk of
eligible securities in the event of early termination of the
transaction.
Fitch expects early termination events to be triggered for most
transactions where LBHI acts as swap counterparty or credit
support provider unless a replacement counterparty is found within
the required time period. If an early termination is triggered
where the swap counterparty is the defaulting party, the eligible
securities are typically liquidated and used to repay the CDO
notes before any swap termination payment is potentially due to
LBHI. In these instances, the CDO noteholders risk profile may
shift from the portfolio of reference entities to the liquidation
of the eligible securities. The CDO noteholders will either be
paid in full from proceeds of the eligible securities, or will
incur a shortfall if liquidation of the eligible securities
results in a market value loss that is not offset by any
overcollateralization and collateral posting requirements of the
transaction.
Lehman debt instruments are eligible securities, or collateral, to
four Fitch-rated funded synthetic CDOs. Funded synthetic CDOs
typically depend upon swap counterparties to meet interest
payments to noteholders, as well as a charged asset as collateral
to make the final principal payment. CDO notes are credit-linked
to the charged asset, and as such Fitch expects to downgrade notes
exposed to Lehman entities as the charged asset to 'CCC' or 'D'.
Lehman related debt is referenced in the portfolios of
approximately 150 Fitch-rated synthetic CDO. They were the 41st
most referenced entity, appearing in approximately 25% of the
portfolios of synthetic CDOs rated by Fitch. The impact of the
bankruptcy and downgrade of Lehman is expected to have a much
smaller impact on these transactions, as individual entities
typically account for between 0.5% and 2% of the overall
portfolio. The extent of impact on individual CDO ratings will
depend upon the exposure to Lehman relative to the transaction's
remaining credit enhancement, the extent of recoveries on the
defaulted debt, and the remaining term of the transaction.
Fitch will issue rating actions on synthetic CDOs exposed to
Lehman entities following analysis of transaction-specific
performance and features.
* Fitch Encyclo-Media Report Outlines Key Media Market Trends
-------------------------------------------------------------
Fitch Ratings has published the first edition of its periodic
'Credit Encyclo-Media' report. This 176-page piece outlines the
key market, operating and credit trends in the media &
entertainment sector.
Fitch's new report also provides an overview, outlook and
description of the degree of cyclicality for 21 different sub-
sectors; ranking them by economic sensitivity, hit-driven
volatility and secular/longer-term issues. Fitch analyzes the
media & entertainment portfolio's exposure to liquidity,
regulatory, union, structural, pension and corporate governance
issues, among others. The report also includes the rating
rationale, organizational debt diagram, covenant analysis and
financial summary for each of the 24 companies in the portfolio.
Diversified Media:
-- CBS Corporation ('BBB' Outlook Stable)
-- Cox Enterprises ('BBB' Outlook Stable)
-- Liberty Media ('BB' Rating Watch Negative)
-- The McGraw-Hill Companies ('A+' Outlook Stable)
-- News Corporation ('BBB' Outlook Stable)
-- The Walt Disney Company ('A' Outlook Stable)
-- Thomson Reuters Corporation ('A-' Outlook Stable)
-- Time Warner Inc.('BBB' Outlook Stable)
-- Viacom, Inc. ('BBB' Outlook Stable)
Publishing, Printing, Radio, TV Broadcasting
-- Belo ('BB+' Outlook Stable)
-- Cox Radio ('BBB' Outlook Stable)
-- Hearst Argyle Television ('BBB-' Rating Watch Evolving)
-- McClatchy ('B+' Outlook Negative)
-- R.H. Donnelley Corp ('B+' Outlook Negative)
-- R.R. Donnelley & Sons Co. ('BBB' Outlook Stable)
-- Tribune ('CCC' Outlook Negative)
-- Univision Communications ('B' Outlook Stable)
Entertainment - Movie Exhibitors, Theme Parks, Music:
-- AMC Entertainment ('B' Outlook Stable)
-- Regal Entertainment ('B+' Outlook Stable)
-- Six Flags ('CCC' Outlook Negative)
-- Warner Music Group ('BB-' Outlook Stable)
Business Products and Services, Ad Agencies:
-- The Dun and Bradstreet Corporation ('A-' Outlook Stable)
-- The Interpublic Group of Companies ('BB+' Outlook Positive)
-- Omnicom ('A-' Outlook Stable)
* Moody's Cuts Rtngs on 147 Housing Finance Agency Exposed to AIG
-----------------------------------------------------------------
The long-term rating of American International Group, Inc. has
been downgraded to A2 from Aa3, and placed on Watchlist for
Possible Downgrade and the short-term P-1 rating is on Watchlist
for Possible Downgrade. The following 147 Aaa-rated local housing
finance agency transactions have exposure to AIG through
Guaranteed Investment Contracts, and AIG's downgrade may have a
negative impact on their ratings. Moody's will review the
affected issues and take appropriate rating action as necessary.
-- Allegheny County Residential Fin. Auth., PA, Mtge. Revenue
Bonds Ser. 1998 DD-1
-- Allegheny County Residential Fin. Auth., PA, Mtge. Revenue
Bonds Ser. 1998 DD-2
-- Allegheny County Residential Fin. Auth., PA, Mtge. Revenue
Bonds Ser. 1998 CC-1
-- Allegheny County Residential Fin. Auth., PA, Mtge. Revenue
Bonds Ser. 1998 CC-2
-- Allegheny County Residential Fin. Auth., PA, Single Family
Mtge. Rev. Bonds Ser. 1999-FF1
-- Allegheny County Residential Fin. Auth., PA, Single Family
Mtge. Rev. Bonds Ser. 1999-FF2
-- Allegheny County Residential Fin. Auth., PA, Single Family
Mtge. Rev. Bonds Ser. 2000 HH-1
-- Allegheny County Residential Fin. Auth., PA, Single Family
Mtge. Rev. Bonds Ser. 2000 HH-2
-- Allegheny County Residential Fin. Auth., PA, Single Family
Mtge. Rev. Bonds Ser. 2000 II-1
-- Allegheny County Residential Fin. Auth., PA, Single Family
Mtge. Rev. Bonds Ser. 2000 II-2
-- Allegheny County Residential Fin. Auth., PA, Single Family
Mtge. Rev. Bonds Ser. 2001 JJ-1
-- Allegheny County Residential Fin. Auth., PA, Single Family
Mtge. Rev. Bonds Ser. 2001 JJ-2
-- Allegheny County Residential Fin. Auth., PA, Single Family
Mtge. Rev. Bonds Ser. 2001 KK-1
-- Allegheny County Residential Fin. Auth., PA, Single Family
Mtge. Rev. Bonds Ser. 2001 KK-2
-- Allegheny County Residential Fin. Auth., PA, Single Family
Mtge. Rev. Bonds Ser. 2002 LL
-- Allegheny County Residential Fin. Auth., PA, Single Family
Mtge. Rev. Bonds Ser. 2002 MM
-- Allegheny County Residential Fin. Auth., PA, Single Family
Mtge. Rev. Bonds Ser. 2004 NN
-- Allegheny County Residential Fin. Auth., PA, Single Family
Mtge. Rev. Bonds Ser. 2004 OO
-- Allegheny County Residential Fin. Auth., PA, Single Family
Mtge. Rev. Bonds Ser. 2004 PP
-- Allegheny County Residential Fin. Auth., PA, Single Family
Mtge. Rev. Bonds Ser. 2005 RR
-- Allegheny County Residential Fin. Auth., PA, Single Family
Mtge. Rev. Bonds Ser. 2005 SS
-- Allegheny County Residential Fin. Auth., PA, Single Family
Mtge. Rev. Bonds Ser. 2005 QQ
-- Allegheny County Residential Fin. Auth., PA, Single Family
Housing Revenue Bonds Ser. 1996-AA
-- Appleridge Retirement Community, Inc., Mtge. Revenue Bonds
Ser. 1999
-- Arkansas Development Finance Authority, Single Family Mtge.
Rev. Bonds Ser. 2004-B
-- Brazos County Housing Finance Corp., TX, Single Family Mtge.
Rev. Bonds Ser. 1999-A
-- Brevard County Housing Finance Authority, FL, Single Family
Mtge. Rev. Bonds Ser. 2001A-1
-- Broward County Housing Finance Auth., FL, Single Family Mtge.
Rev. Bonds Ser. 1998-A
-- Burnsville (City of) MN, Multifamily Housing Rev. Ref. Bonds
Ser. 1999-A
-- Burnsville (City of) MN, Multifamily Housing Rev. Ref. Bonds
Ser. 1999-B
-- Capital Area Housing Finance Corporation, TX, Single Family
Mtge. Rev. Bonds Ser. 1999A
-- Central Texas Housing Finance Corp., TX, Single Family
Mortgage Rev Ref Bonds Ser. 1999-A
-- Chicago (City of) IL, Industrial Revenue Bonds Ser. 1998-A1
-- Chicago (City of) IL, Single Family Mtge. Rev. Bonds Ser.
1999-C
-- Chicago (City of) IL, Single Family Mtge. Rev. Bonds Ser.
2002-D
-- Chicago (City of) IL, Single Family Mtge. Rev. Bonds 2002-D
-- Chicago (City of) IL, Single Family Mtge. Rev. Bonds Ser.
1997-A
-- Clay County Housing Finance Authority, FL, Industrial Revenue
Bonds Ser. 1998
-- Clay County Housing Finance Authority, FL, Single Family
Housing Revenue Bonds Ser. 2000
-- Clay County Housing Finance Authority, FL, Single Family
Housing Revenue Bonds Ser. 2001
-- Concho Valley Housing Finance Corporation, Single Family
Mtge. Rev. Bonds Ser. 2000-A1
-- Concho Valley Housing Finance Corporation, Single Family
Mtge. Rev. Bonds Ser. 2000-A2
-- Dade County Housing Finance Authority, FL, Single Family
Mtge. Rev. Bonds Ser. 1996
-- Dakota County Community Development Agy., MN, Multifamily
Housing Revenue Bonds Ser. 2000
-- Denham Springs-Livingston Hsg& Mtg.Fin.AuthLA, Single Family
Mortgage Rev Ref Bonds Ser. 2000-A
-- Denham Springs-Livingston Hsg& Mtg.Fin.AuthLA, Single Family
Mortgage Rev Ref Bonds Ser. 2000 A-1
-- Duval County Housing Finance Authority, FL, Single Family
Housing Revenue Bonds Ser. 1997
-- Duval County Housing Finance Authority, FL, Single Family
Mtge. Rev. Bonds Ser. 2000
-- Eagan (City of) MN, Multifamily Housing Rev. Ref. Bonds Ser.
1999-A
-- Eagan (City of) MN, Multifamily Housing Rev. Ref. Bonds Ser.
1999-B
-- El Paso (County of), CO, Bonds Ser. 2005A
-- Escambia County Housing Finance Auth., FL, Single Family
Mtge. Rev. Bonds Ser. 2001A
-- Hammond-Tangipahoa Home Mortgage Authority, Single Family
Mtge. Rev. Bonds Ser. 2006
-- Hillsborough Co. Housing Finance Auth., FL, Single Family
Mortgage Rev Ref Bonds Ser. 1997
-- Hillsborough Co. Housing Finance Auth., FL, Single Family
Mtge. Rev. Bonds Ser. 2000
-- Hillsborough Co. Housing Finance Auth., FL, Single Family
Mtge. Rev. Bonds Ser. 2000A
-- Hillsborough Co. Housing Finance Auth., FL, Single Family
Mtge. Rev. Bonds Ser. 2001 A-1
-- Hillsborough Co. Housing Finance Auth., FL, Single Family
Mtge. Rev. Bonds Ser. 2001A-1
-- Jefferson (Parish of) LA, Home Mtge. Auth., Single Family
Mtge. Rev. Bonds Ser. 1999-A1
-- Jefferson (Parish of) LA, Home Mtge. Auth., Single Family
Mortgage Rev Ref Bonds Ser. 1999-B1
-- Jefferson (Parish of) LA, Home Mtge. Auth., Single Family
Mortgage Rev Ref Bonds Ser. 2000-A2
-- Jefferson (Parish of) LA, Home Mtge. Auth., Single Family
Mortgage Rev Ref Bonds Ser. 2000-C1
-- Jefferson (Parish of) LA, Home Mtge. Auth., Single Family
Mortgage Rev Ref Bonds Ser. 2000-D1
-- Jefferson (Parish of) LA, Home Mtge. Auth., Single Family
Mortgage Rev Ref Bonds Ser. 2000E
-- Jefferson (Parish of) LA, Home Mtge. Auth., Single Family
Mortgage Rev Ref Bonds Ser. 2000-G1
-- Jefferson (Parish of) LA, Home Mtge. Auth., Single Family
Mortgage Rev Ref Bonds Ser. 2000G-2
-- Jefferson (Parish of) LA, Home Mtge. Auth., Single Family
Mortgage Rev Ref Bonds Ser. 2000E
-- Jefferson (Parish of) LA, Home Mtge. Auth., Single Family
Mortgage Rev Ref Bonds Ser. 2000G-2
-- Laredo Housing Finance Corporation, TX, Single Family Mtge.
Rev. Bonds Ser. 2001 A1-1
-- Laredo Housing Finance Corporation, TX, Single Family Mtge.
Rev. Bonds Ser. 2001 A2-1
-- Laredo Housing Finance Corporation, TX, Single Family Mtge.
Rev. Bonds Ser. 2001 A2-2
-- Lee County Housing Finance Authority, FL, Single Family Mtge.
Rev. Bonds Ser. 1999A-4
-- Lee County Housing Finance Authority, FL, Single Family Mtge.
Rev. Bonds Ser. 2000-B2
-- Lee County Housing Finance Authority, FL, Single Family Mtge.
Rev. Bonds Ser. 2000-A1
-- Lee County Housing Finance Authority, FL, Single Family Mtge.
Rev. Bonds Ser. 2001A-1
-- Lee County Housing Finance Authority, FL, Single Family Mtge.
Rev. Bonds Ser. 2002-A
-- Macon Housing Authority, GA, Single Family Mtge. Rev. Bonds
Ser. 2000-A2
-- Macon Housing Authority, GA, Single Family Mtge. Rev. Bonds
Ser. 2000-A1
-- Manatee County Housing Finance Authority, FL, Single Family
Mtge. Rev. Bonds Ser. 1999
-- Manatee County Housing Finance Authority, FL, Single Family
Mortgage Rev Ref Bonds Ser. 1999-Sub Series Two
-- Manatee County Housing Finance Authority, FL, Single Family
Mortgage Rev Ref Bonds Subser. 2000-1
-- Maricopa County Industrial Dev. Auth., AZ, Single Family
Mortgage Rev Ref Bonds Ser. 2000-B2
-- Miami-Dade County Housing Finance Auth, FL, Mtge. Revenue
Bonds Ser. 2000-A1
-- Michigan State Housing Development Authority, Bonds Series
2002-A
-- Michigan State Housing Development Authority, Multifamily
Housing Revenue Bonds Seri. 2002-A
-- Michigan State Housing Development Authority, Multifamily
Housing Revenue Bonds Ser. 2002-A
-- Minneapolis (City of) MN, Industrial Revenue Bonds Ser.
1998-A
-- Missouri Housing Development Commission, Single Family Mtge.
Rev. Bonds Ser. 2005-A1
-- Missouri Housing Development Commission, Single Family Mtge.
Rev. Bonds Ser. 2004-C
-- Moore Economic Development Authority (The), Single Family
Mtge. Rev. Bonds Ser. 2001
-- New Mexico Mortgage Finance Authority, Single Family Mtge.
Rev. Bonds Ser. 2005-A-1
-- New Orleans Finance Authority, LA, Single Family Mtge. Rev.
Bonds Ser. 1999-A
-- New Orleans Finance Authority, LA, Single Family Mortgage Rev
Ref Bonds Ser. 1999-B1
-- New Orleans Finance Authority, LA, Single Family Mortgage Rev
Ref Bonds Ser. 99B-2
-- New Orleans Finance Authority, LA, Single Family Mortgage Rev
Ref Bonds Ser. 2000 B-2
-- New Orleans Finance Authority, LA, Single Family Mtge. Rev.
Bonds Ser. 2000 A-1
-- New Orleans Finance Authority, LA, Single Family Mortgage Rev
Ref Bonds Ser. 2000 B-1
-- Nortex Housing Finance Corporation, Single Family Mtge. Rev.
Bonds Ser. 1999-A
-- North Central Texas Housing Finance Corp., Multifamily
Housing Revenue Bonds Ser. 2002
-- North Central Texas Housing Finance Corp., Multifamily
Housing Revenue Bonds Ser. 2002
-- Oklahoma County Home Finance Authority, OK, Single Family
Mortgage Rev Ref Bonds Ser. 2005A-1
-- Oklahoma County Home Finance Authority, OK, Single Family
Mortgage Rev Ref Bonds Ser. 2005A-2
-- Orange County Housing Finance Authority, FL, Industrial
Revenue Bonds Ser. 1999-A1
-- Orange County Housing Finance Authority, FL, Industrial
Revenue Bonds Ser. 1999-A2
-- Orange County Housing Finance Authority, FL, Revenue Bonds
Ser. 2000-A1
-- Orange County Housing Finance Authority, FL, Homeowner
Revenue Bonds Ser. 2000-B1
-- Orange County Housing Finance Authority, FL, Bonds Ser.
2003-B
-- Orange County Housing Finance Authority, FL, Homeowner
Revenue Bonds Ser. 2003-B
-- Orange County Housing Finance Authority, FL, Homeowner
Revenue Bonds Ser. 2004-A
-- Palm Beach County Housing Finance Auth., FL, Single Family
Mtge. Rev. Bonds Ser. 1999-A14
-- Palm Beach County Housing Finance Auth., FL, Single Family
Mtge. Rev. Bonds Ser. 1999-A15
-- Palm Beach County Housing Finance Auth., FL, Single Family
Mtge. Rev. Bonds Ser. 1999-A18
-- Palm Beach County Housing Finance Auth., FL, Single Family
Homeowner Rev Ref Bonds Ser. 2000-A1
-- Palm Beach County Housing Finance Auth., FL, Single Family
Homeowner Rev Ref Bonds Ser. 2000-A1
-- Penfield-Crown Oak Housing Development Corp, Coll Mtge Rev
Bonds Ser. 2006-A
-- Phoenix, Pima & Maricopa County I.D.A., AZ, Single Family
Mtge. Rev. Bonds Ser. 2006-1A
-- Phoenix, Pima & Maricopa County I.D.A., AZ, Single Family
Mtge. Rev. Bonds Ser. 2006-1B
-- Pinellas County Housing Finance Authority, FL, Single Family
Housing Revenue Bonds Ser. 1996-A
-- Pinellas County Housing Finance Authority, FL, Single Family
Housing Revenue Bonds Ser. 1999-B1
-- Pinellas County Housing Finance Authority, FL, Single Family
Housing Revenue Bonds Ser. 1999-B1
-- Pinellas County Housing Finance Authority, FL, Single Family
Housing Revenue Bonds Ser. 1999-B2
-- Pinellas County Housing Finance Authority, FL, Single Family
Housing Revenue Bonds Ser. 2002-A
-- Pinellas County Housing Finance Authority, FL, Single Family
Housing Revenue Bonds Ser. 2002-A
-- Pinellas County Housing Finance Authority, FL, Single Family
Housing Revenue Bonds Ser. 2004A-1
-- Pinellas County Housing Finance Authority, FL, Single Family
Housing Revenue Bonds Ser. 2004A-2
-- Rock Hill City Housing Authority, SC, Multifamily Housing
Revenue Bonds Ser. 2004
-- Rogers County Housing Finance Authority, OK, Single Family
Mtge. Rev. Bonds Ser. 2001
-- San Bernardino (County of) CA, Single Family Mtge. Rev. Bonds
Ser. 2000-A
-- San Bernardino (County of) CA, Single Family Mtge. Rev. Bonds
Ser. 2001 A-1
-- San Bernardino (County of) CA, Single Family Mtge. Rev. Bonds
Ser. 2000 A-1
-- Schenectady City Industrial Dev. Agy, NY, Industrial Revenue
Bonds Ser. 2000A
-- Sedgwick & Shawnee (Counties of), KS, Single Family Mtge.
Rev. Bonds Ser. 1999A-1
-- Sedgwick & Shawnee (Counties of), KS, Single Family Mtge.
Rev. Bonds Ser. 2003A-5
-- Sedgwick & Shawnee (Counties of), KS, Single Family Mtge.
Rev. Bonds Ser. 2000-A2
-- Sedgwick & Shawnee (Counties of), KS, Single Family Mtge.
Rev. Bonds Ser. 2003 A-1
-- Sedgwick & Shawnee (Counties of), KS, Single Family Mtge.
Rev. Bonds Ser. 2003 A-2
-- Sedgwick & Shawnee (Counties of), KS, Single Family Mtge.
Rev. Bonds Series 2003 A-3
-- Sedgwick & Shawnee (Counties of), KS, Single Family Mtge.
Rev. Bonds Series 2003 A-4
-- Sedgwick & Shawnee (Counties of), KS, Single Family Mtge.
Rev. Bonds Ser. 2001-B2
-- Travis County Housing Finance Corporation, TX, Single Family
Mortgage Rev Ref Bonds Ser. 2001A
-- Travis County Housing Finance Corporation, TX, Industrial
Revenue Bonds Ser. 1998-A
-- Tulsa County Home Finance Auth, OK, Single Family Mortgage
Rev Ref Bonds Ser. 2001B
-- Tulsa County Industrial Authority, OK, Mtge. Revenue
Refunding Bonds Ser. 2005-A
-- Tulsa County Industrial Authority, OK, Mtge. Revenue
Refunding Bonds Ser. 2005B
-- Waukesha City Redevelopment Authority, WI, Industrial Revenue
Bonds Ser. 2001-A
-- West Central Texas Regional Housing Fin Corp., Single Family
Mtge. Rev. Bonds Ser. 2000-A1
-- West Central Texas Regional Housing Fin Corp., Single Family
Mtge. Rev. Bonds Ser. 2000-A2
* Chapter 11 Cases with Assets & Liabilities Below $1,000,000
-----------------------------------------------------------
Recent Chapter 11 cases filed with assets and liabilities below
$1,000,000:
In Re Momma's Boy, LLC
aka Momma's Boy-Daddy's Girl,
aka Karla K Dishun
Bankr. E.D. Va. Case No. 08-15422
Chapter 11 Petition filed September 8, 2008
Filed as Pro Se
In Re Henry H. Tyler Enterprises, Inc.
Bankr. N.D. Ala. Case No. 08-04450
Chapter 11 Petition filed September 10, 2008
See http://bankrupt.com/misc/alnb08-04450.pdf
In Re RLM Ventures
Bankr. C.D. Calif. Case No. 08-22078
Chapter 11 Petition filed September 10, 2008
See http://bankrupt.com/misc/cacb08-22078.pdf
In Re Most Truck Sales, Inc.
Bankr. S.D. Calif. Case No. 08-08813
Chapter 11 Petition filed September 10, 2008
See http://bankrupt.com/misc/casb08-08813.pdf
In Re Stratus Group Equipment, LLC
Bankr. M.D. Ga. Case No. 08-11488
Chapter 11 Petition filed September 10, 2008
See http://bankrupt.com/misc/gamb08-11488.pdf
In Re Hargett Funeral Service, Inc.
Bankr. M.D. N.C. Case No. 08-11438
Chapter 11 Petition filed September 10, 2008
See http://bankrupt.com/misc/ncmb08-11438.pdf
In Re Puccio Electric Corp.
Bankr. E.D. N.Y. Case No. 08-74899
Chapter 11 Petition filed September 10, 2008
See http://bankrupt.com/misc/nyeb08-74899.pdf
In Re Brad L Coyne
Bankr. C.D. Calif. Case No. 08-24706
Chapter 11 Petition filed September 10, 2008
Filed as Pro Se
In Re Hibel Realty, LLC
Bankr. D. Mass. Case No. 08-42902
Chapter 11 Petition filed September 10, 2008
Filed as Pro Se
In Re CCC Foods, LLC
dba Atlanta Bread Company #155
Bankr. D. S.C. Case No. 08-05571
Chapter 11 Petition filed September 10, 2008
See http://bankrupt.com/misc/scb08-05571.pdf
In Re Essary & Sloan Partnership
Bankr. M.D. Tenn. Case No. 08-08185
Chapter 11 Petition filed September 10, 2008
See http://bankrupt.com/misc/tnmb08-08185.pdf
In Re Bellerud Communications, LLC
fdba State Discount Telephone, LLC
Bankr. E.D. Texas Case No. 08-42443
Chapter 11 Petition filed September 10, 2008
See http://bankrupt.com/misc/txeb08-42443.pdf
In Re Cauich Restaurant Corp., Inc.
Bankr. C.D. Calif. Case No. 08-24775
Chapter 11 Petition filed September 11, 2008
See http://bankrupt.com/misc/cacb08-24775.pdf
In Re Tamiami Lady, Inc.
Bankr. S.D. Fla. Case No. 08-23190
Chapter 11 Petition filed September 11, 2008
See http://bankrupt.com/misc/flsb08-23190.pdf
In Re Outdoor Living, Inc.
Bankr. N.D. Ill. Case No. 08-24006
Chapter 11 Petition filed September 11, 2008
See http://bankrupt.com/misc/ilnb08-24006.pdf
In Re Folgers Architects Ltd.
Bankr. N.D. Ill. Case No. 08-24106
Chapter 11 Petition filed September 11, 2008
See http://bankrupt.com/misc/ilnb08-24106.pdf
In Re Heidi A. Rybolt
Bankr. N.D. Ind. Case No. 08-13079
Chapter 11 Petition filed September 11, 2008
See http://bankrupt.com/misc/innb08-13079.pdf
In Re Heinz W. Hecker & Elke G. Hecker
Bankr. W.D. Ky. Case No. 08-41187
Chapter 11 Petition filed September 11, 2008
See http://bankrupt.com/misc/kywb08-41187.pdf
In Re America's Professional Services Association, Inc.
aka AREA Seniors Adult Retirement Education Association
Bankr. E.D. Mich. Case No. 08-62058
Chapter 11 Petition filed September 11, 2008
See http://bankrupt.com/misc/mieb08-62058.pdf
In Re Mitigation Services, Inc.
Bankr. D. N.J. Case No. 08-27333
Chapter 11 Petition filed September 11, 2008
See http://bankrupt.com/misc/njb08-27333.pdf
In Re White Tigers, LLC
Bankr. S.D. N.Y. Case No. 08-36977
Chapter 11 Petition filed September 11, 2008
Filed as Pro Se
In Re White Tigers, LLC
Bankr. S.D. N.Y. Case No. 08-36977
Chapter 11 Petition filed September 11, 2008
Filed as Pro Se
In Re Yousef Abuhamdeh
Bankr. E.D. N.Y. Case No. 08-45997
Chapter 11 Petition filed September 11, 2008
Filed as Pro Se
In Re John Pipes & John Pipes
Bankr. S.D. Ind. Case No. 08-11154
Chapter 11 Petition filed September 11, 2008
Filed as Pro Se
In Re Donald Charles Schwartz
Bankr. N.D. Calif. Case No. 08-55102
Chapter 11 Petition filed September 11, 2008
Filed as Pro Se
In Re New Concepts Plumbing, Inc.
Bankr. W.D. Wash. Case No. 08-15888
Chapter 11 Petition filed September 11, 2008
See http://bankrupt.com/misc/wawb08-15888.pdf
In Re Parkplace Patio Homes, LLC
Bankr. N.D. Ala. Case No. 08-82825
Chapter 11 Petition filed September 12, 2008
See http://bankrupt.com/misc/alnb08-82825.pdf
In Re Imelda B. Cadiz & Fernando P. Cadiz
Bankr. C.D. Calif. Case No. 08-15675
Chapter 11 Petition filed September 12, 2008
See http://bankrupt.com/misc/cacb08-15675.pdf
In Re AP Corporate Services, Inc.
Bankr. C.D. Calif. Case No. 08-16944
Chapter 11 Petition filed September 12, 2008
See http://bankrupt.com/misc/cacb08-16944.pdf
In Re Glover and Associates, Inc.
Bankr. E.D. Calif. Case No. 08-32976
Chapter 11 Petition filed September 12, 2008
See http://bankrupt.com/misc/caeb08-32976.pdf
In Re Precise Mailing, Inc.
Bankr. N.D. Calif. Case No. 08-31717
Chapter 11 Petition filed September 12, 2008
See http://bankrupt.com/misc/canb08-31717.pdf
In Re Gobind Chatani & Carmel L. Chatani
Bankr. S.D. Fla. Case No. 08-23240
Chapter 11 Petition filed September 12, 2008
See http://bankrupt.com/misc/flsb08-23240.pdf
In Re Indy Wholesale Furniture, Inc.
Bankr. S.D. Ind. Case No. 08-11261
Chapter 11 Petition filed September 12, 2008
See http://bankrupt.com/misc/insb08-11261.pdf
In Re Voice Video & Data Services, Inc.
Bankr. W.D. Ky. Case No. 08-34036
Chapter 11 Petition filed September 12, 2008
See http://bankrupt.com/misc/kywb08-34036.pdf
In Re DPS Excavating, Inc.
Bankr. W.D. Mich. Case No. 08-08025
Chapter 11 Petition filed September 12, 2008
See http://bankrupt.com/misc/miwb08-08025.pdf
In Re Steven J. Cohen
aka The Linen Depot, Inc.
aka New Era Import & Export
aka TBZ Holding, Inc.
aka Perri Home Fashions, Inc.
aka BBZ Holding Corp.
aka Purple Rain Salon
aka SBZ Holding Corp. & Hillary A. Cohen
Bankr. D. N.J. Case No. 08-27403
Chapter 11 Petition filed September 12, 2008
See http://bankrupt.com/misc/njb08-27403.pdf
In Re Advanced II, Inc.
Bankr. W.D. Penn. Case No. 08-26070
Chapter 11 Petition filed September 12, 2008
See http://bankrupt.com/misc/pawb08-26070.pdf
In Re George Arospide, Jr.
Bankr. N.D. Calif. Case No. 08-31719
Chapter 11 Petition filed September 12, 2008
Filed as Pro Se
In Re Ronald Brooks Miller & Usoalii Nikotemo Miller
Bankr. N.D. Calif. Case No. 08-45096
Chapter 11 Petition filed September 12, 2008
Filed as Pro Se
In Re Debbie Bridal Portfolio, LLC
dba Debbie's Bridal Portfolio
Bankr. E.D. Texas Case No. 08-42466
Chapter 11 Petition filed September 12, 2008
See http://bankrupt.com/misc/txeb08-42466.pdf
In Re JMC Outfitters Co.
dba Sport Truck Outfitters
fdba Bill's Campers
Bankr. W.D. Tex. Case No. 08-31439
Chapter 11 Petition filed September 12, 2008
See http://bankrupt.com/misc/txwb08-31439.pdf
In Re XRCM of Seattle, Inc.
dba Barnaby's Restaurant
Bankr. W.D. Wash. Case No. 08-15920
Chapter 11 Petition filed September 12, 2008
See http://bankrupt.com/misc/wawb08-15920.pdf
In Re Int'l Enterprise Development
Bankr. D. Nev. Case No. 08-20560
Chapter 11 Petition filed September 13, 2008
See http://bankrupt.com/misc/nvb08-20560.pdf
In Re Tepper Brothers, Inc.
dba La Miche
dba La Miche Country French Restaurant
Bankr. D. Md. Case No. 08-21843
Chapter 11 Petition filed September 15, 2008
See http://bankrupt.com/misc/mdb08-21843.pdf
In Re Acts of Disciples Ministry
dba Acts Church International
Bankr. E.D. Mich. Case No. 08-62370
Chapter 11 Petition filed September 15, 2008
See http://bankrupt.com/misc/mieb08-62370.pdf
In Re Sam's Transportation Services, Inc.
Bankr. N.D. Miss. Case No. 08-13726
Chapter 11 Petition filed September 15, 2008
See http://bankrupt.com/misc/msnb08-13726.pdf
In Re Retail Management Services, Inc.
dba Express Mart
Bankr. D. Nev. Case No. 08-20615
Chapter 11 Petition filed September 15, 2008
See http://bankrupt.com/misc/nvb08-20615.pdf
In Re Sarah. B, LLC
dba Maroons Harlem
Bankr. S.D. N.Y. Case No. 08-13565
Chapter 11 Petition filed September 15, 2008
See http://bankrupt.com/misc/nysb08-13565.pdf
In Re Digital Printing Systems, LLC
Bankr. S.D. N.Y. Case No. 08-13588
Chapter 11 Petition filed September 15, 2008
See http://bankrupt.com/misc/nysb08-13588.pdf
In Re IFL Corp.
Bankr. S.D. N.Y. Case No. 08-13589
Chapter 11 Petition filed September 15, 2008
See http://bankrupt.com/misc/nysb08-13589.pdf
In Re Rosemont Estates, Inc.
Bankr. W.D. Penn. Case No. 08-26095
Chapter 11 Petition filed September 15, 2008
See http://bankrupt.com/misc/pawb08-26095.pdf
In Re Wilson Classic Homes, LLC
dba Athens Home Center
dba Cleveland Home Center
Bankr. E.D. Tenn. Case No. 08-14786
Chapter 11 Petition filed September 15, 2008
See http://bankrupt.com/misc/tneb08-14786.pdf
In Re Nashville Hose Co.
dba Nashville Hose Corp.
dba Pirtek
Bankr. M.D. Tenn. Case No. 08-08313
Chapter 11 Petition filed September 15, 2008
See http://bankrupt.com/misc/tnmb08-08313.pdf
In Re Franklin D. Mahon, Sr. & Gwenda L. Mahon
Bankr. M.D. Tenn. Case No. 08-08314
Chapter 11 Petition filed September 15, 2008
See http://bankrupt.com/misc/tnmb08-08314.pdf
In Re Thomas R.V. Park Ventures, LLC
dba The Peaks of Silverton
Bankr. W.D. Tex. Case No. 08-11757
Chapter 11 Petition filed September 15, 2008
See http://bankrupt.com/misc/txwb08-11757.pdf
In Re Gregory Louis Weldon & Nicole Ann Weldon
Bankr. D. Arizona Case No. 08-12336
Chapter 11 Petition filed September 16, 2008
See http://bankrupt.com/misc/azb08-12336.pdf
In Re Mark's Sports Bar and Grill, Inc.
Bankr. E.D. Calif. Case No. 08-33142
Chapter 11 Petition filed September 16, 2008
See http://bankrupt.com/misc/caeb08-33142.pdf
In Re Bantam Bread, LLC
Bankr. D. Conn. Case No. 08-33015
Chapter 11 Petition filed September 16, 2008
See http://bankrupt.com/misc/ctb08-33015.pdf
In Re Dynamo, LLC
dba Maurizio's Pizzeria Restaurant
Bankr. D. N.J. Case No. 08-27675
Chapter 11 Petition filed September 16, 2008
See http://bankrupt.com/misc/njb08-27675.pdf
In Re Int'l Enterprise Development
Bankr. D. Nev. Case No. 08-20663
Chapter 11 Petition filed September 16, 2008
See http://bankrupt.com/misc/nvb08-20663.pdf
In Re StarMaker Marketing Group, Inc.
Bankr. D. Utah Case No. 08-26182
Chapter 11 Petition filed September 16, 2008
Filed as Pro Se
In Re JPS Tree Service Inc.
Bankr. N.D. Calif. Case No. 08-55202
Chapter 11 Petition filed September 16, 2008
Filed as Pro Se
In Re Bruce Ward & Sally Ward
Bankr. W.D. Wash. Case No. 08-44640
Chapter 11 Petition filed September 16, 2008
See http://bankrupt.com/misc/wawb08-44640.pdf
In Re Nunzio P. Pagano C.C.
Bankr. S.D. W.V. Case No. 08-20883
Chapter 11 Petition filed September 16, 2008
See http://bankrupt.com/misc/wvsb08-20883.pdf
In Re TLC Expedited Co
aka TLC Expedited Co., Inc.
Bankr. S.D. W.V. Case No. 08-30608
Chapter 11 Petition filed September 16, 2008
See http://bankrupt.com/misc/wvsb08-30608.pdf
*********
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. Sheryl Joy P. Olano, 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 ***