/raid1/www/Hosts/bankrupt/TCR_Public/081122.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Saturday, November 22, 2008, Vol. 12, No. 279
Headlines
ACCEPTANCE INSURANCE: Posts $863,177 Net Loss in October 2008
ATA AIRLINES: Files Monthly Operating Report for September 2008
NEWPOWER HOLDINGS: Files Operating Report for September 2008
REFCO INC: Refco LLC Files Operating Report for September 2008
REUNION INDUSTRIES: Posts $51,000 Net Loss in September 2008
STEVE & BARRY'S: SB Manhattan Files Supplement to July 2008 Report
WASHINGTON MUTUAL: Files Initial Monthly Operating Report
*********
ACCEPTANCE INSURANCE: Posts $863,177 Net Loss in October 2008
-------------------------------------------------------------
Acceptance Insurance Companies Inc. reported total assets of
$22,855,673, total liabilities of $138,208,412, and stockholders'
deficit of $115,352,739 as of Oct. 31, 2008.
For the month ended Oct. 31, 2008, the Debtor generated total
revenue of $1,199 and incurred a net loss of $863,177.
A full-text copy of the Debtor's October 2008 monthly report is
available for free at http://researcharchives.com/t/s?350e
About Acceptance Insurance
Headquartered in Council Bluffs, Iowa, Acceptance Insurance
Companies, Inc. -- http://www.aicins.com/-- owns, either directly
or indirectly, several companies, one of which is an insurance
company that accounts for substantially all of the business
operations and assets of the corporate groups.
The company filed for Chapter 11 protection on Jan. 7, 2005
(Bankr. D. Nebr. Case No. 05-80059). The Debtor's affiliates --
Acceptance Insurance Services, Inc. and American Agrisurance, Inc.
-- each filed Chapter 7 petitions (Bankr. D. Nebr. Case Nos.
05-80056 and 05-80058) on Jan. 7, 2005. John J. Jolley, Esq.,
at Kutak Rock LLP, represents the Debtor in its restructuring
efforts. Lawyers at McGrath North Mullin & Kratz PC, LLO
represent the Official Committee of Unsecured Creditors in
Acceptance Insurance's case.
ATA AIRLINES: Files Monthly Operating Report for September 2008
---------------------------------------------------------------
ATA Airlines' Chief Restructuring Officer Steve Turoff filed with
the Court the airlines' monthly operating report for the period
September 1 to 30, 2008.
Mr. Turoff disclosed that ATA Airlines had $5,350,677 in cash
profit and $253,406 in total payables for September.
The total professional fee incurred by or on behalf of ATA
Airlines during the reporting period is $533,334 for services
related to its bankruptcy.
ATA Airlines, Inc.
Receipts and Disbursements
Month Ended September 30, 2008
RECEIPTS
Military -
Charter -
Scheduled Service -
U.S. Bank -
Amex -
Discover -
Diner's Club -
Other Scheduled Service -
Asset Sales--Inventory 3,627,694
Asset Sales--Ground Equipment 190,357
Asset Sales--Rotables -
Return of Deposits/Prepaids 234,187
Cash Collateral/LOCs 22,685
Interest 17,701
Miscellaneous 1,565,411
------------
Total $5,658,035
============
DISBURSEMENTS
Base Payroll Inc. All Taxes $319,091
Stay Bonus 95,260
Benefits 20,536
Employee Expense Payments 53
Facilities 2,100
Utilities/Communications 58,649
Contract Labor 76,693
Professionals 499,900
US Trustee -
Aircraft Ferry Cost -
Engine Changes/Certificate Mx 35,338
Insurance--D&O/Misc. 100,916
Health Insurance Run-off Reserve (1,000,000)
Cobra Reserve -
Security 1,845
Shipping/Cargo 74,755
Returned Checks -
Miscellaneous 22,223
------------
Total $307,358
============
Beginning Balance $26,191,990
Receipts 5,658,035
Disbursements (307,358)
------------
Ending Balance $31,542,667
============
ATA Airlines filed for Chapter 22 on April 2, 2008 (Bankr. S.D.
Ind. Case No. 08-03675), citing the unexpected cancellation of a
key contract for ATA's military charter business, which made it
impossible for ATA to obtain additional capital to sustain its
operations or restructure the business. ATA discontinued all
operations subsequent to the bankruptcy filing. ATA's Chapter 22
bankruptcy petition lists assets and liabilities each in the range
of $100 million to $500 million.
The Debtor is represented in its Chapter 22 case by Haynes and
Boone, LLP, and Baker & Daniels, LLP, as bankruptcy counsel.
The United States Trustee for Region 10 appointed five members to
the Official Committee of Unsecured Creditors. Otterbourg,
Steindler, Houston & Rosen, P.C., serves as bankruptcy counsel to
the Committee. FTI Consulting, Inc., acts as the panel's
financial advisors. The Court gave ATA Airlines Inc. until
Feb. 26, 2009, to file its Chapter 11 plan and April 27, 2009, to
solicit acceptances of that plan.
(ATA Airlines Bankruptcy News; Bankruptcy Creditors' Services Inc.
http://bankrupt.com/newsstand/or 215/945-7000).
NEWPOWER HOLDINGS: Files Operating Report for September 2008
------------------------------------------------------------
NewPower Holdings, Inc., filed with the U.S. Bankruptcy Court for
the Northern District of Georgia its monthly operating report for
September 2008. The Debtor had an opening cash balance of $1,076
and an ending cash balance of $1,059.
A full-text copy of the Debtor's September 2008 monthly operating
report is available for free at:
http://researcharchives.com/t/s?350d
NewPower Holdings Inc. (Pink Sheets: NWPWQ) and its debtor-
affiliates filed for chapter 11 protection on June 11, 2002
(Bankr. N.D. Ga. 02-10836). Paul K. Ferdinands, Esq., at King &
Spalding and William M. Goldman, Esq., at Sidley Austin Brown &
Wood LLP, represent the Debtors. When the Debtors filed for
chapter 11 protection, they reported $231,837,000 in assets and
$87,936,000 in debts.
On Aug. 15, 2003, the U.S. Bankruptcy Court for the Northern
District of Georgia, Newnan Division, confirmed the Second Amended
Chapter 11 Plan with respect to NewPower Holdings, Inc., and TNPC
Holdings, Inc., a wholly owned subsidiary. That Plan became
effective on Oct. 9, 2003, with respect to the company and TNPC.
On Feb. 28, 2003, the Bankruptcy Court confirmed The New
Power Company's Plan, and that Plan has been effective as of
March 11, 2003, with respect to New Power. The New Power Company
is a wholly owned subsidiary of the company.
REFCO INC: Refco LLC Files Operating Report for September 2008
--------------------------------------------------------------
Albert Togut, the Chapter 7 Trustee overseeing the liquidation of
Refco, LLC's estate, filed with the Court a monthly statement of
cash receipts and disbursements for the period from September 1
to 30, 2008.
The Chapter 7 Trustee reports that Refco LLC's beginning balance
in its Money Market account with JPMorgan Chase Bank, N.A.,
totaled $77,171,000 as of September 1.
During the Reporting Period, Refco LLC received $108,000 in its
Money Market Account and disbursed $323,000,000. The Debtor held
$76,956,000 at the end of the period.
Refco, LLC
Schedule of Cash Receipts and Disbursements
Through JPMorgan Money Market and Checking Accounts
September 1 through September 30, 2008
Beginning Balance, September 1, 2008 $77,171,000
RECEIPTS
Interest Income 108,000
Man Financial - Return of Erroneous Funds Received 0
Man Financial - Excess Capital return 0
Other Receivables 0
-----------
TOTAL RECEIPTS 108,000
TRANSFERS
Money Market Account to Checking Account 0
-----------
TOTAL TRANSFERS 0
DISBURSEMENTS
Operating Expenses and Other Disbursements 323,000
Reorganization Expenses 0
-----------
TOTAL DISBURSEMENTS 323,000
-----------
Ending Balance, September 30, 2008 $76,956,000
===========
About Refco Inc.
Headquartered in New York, Refco Inc. -- http://www.refco.com/
-- is a diversified financial services organization with
operations in 14 countries and an extensive global institutional
and retail client base. Refco's worldwide subsidiaries are
members of principal U.S. and international exchanges, and are
among the most active members of futures exchanges in Chicago,
New York, London and Singapore. In addition to its futures
brokerage activities, Refco is a major broker of cash market
products, including foreign exchange, foreign exchange options,
government securities, domestic and international equities,
emerging market debt, and OTC financial and commodity products.
Refco is one of the largest global clearing firms for
derivatives. The company has operations in Bermuda.
The company and 23 of its affiliates filed for Chapter 11
protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006).
J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, represent the Debtors in their restructuring efforts. Luc
A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP,
represents the Official Committee of Unsecured Creditors. Refco
reported US$16.5 billion in assets and US$16.8 billion in debts
to the Bankruptcy Court on the first day of its Chapter 11
cases.
The Court confirmed the Modified Joint Chapter 11 Plan of
Refco Inc. and certain of its Direct and Indirect Subsidiaries,
including Refco Capital Markets, Ltd., and Refco F/X Associates,
LLC, on Dec. 15, 2006. That Plan became effective on Dec. 26,
2006. (Refco Bankruptcy News, Issue No. 89; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000)
REUNION INDUSTRIES: Posts $51,000 Net Loss in September 2008
------------------------------------------------------------
Reunion Industries, Inc. posted a net loss of $51,000 on net sales
of $1,375,000 for the month of September 2008.
As of Sept. 30, 2008, the Debtor had $24,469,000 in total assets,
$8,942,000 in total liabilities, and $15,527,000 in total
stockholders' equity.
A full-text copy of the Debtor's September 2008 monthly operating
report is available for free at:
http://researcharchives.com/t/s?350c
About Reunion Industries
Headquartered in Pittsburgh, Pennsylvania, Reunion Industries,
Inc. owns and operates industrial manufacturing operations that
design and manufacture engineered, high quality products for
specific customer requirements. These products include large
diameter seamless pressure vessels, manufactured by its CP
Industries division, and hydraulic and pneumatic cylinders,
manufactured by its Hanna Cylinders division. In addition,
the Debtor has a 65% interest in Shanghai Klemp Metal Products
Co., Ltd., a Chinese company located in Shanghai, China.
Shanghai Klemp manufactures metal bar grating.
Reunion Industries filed for chapter 11 protection on Nov. 26,
2007 (Bankr. D. Conn. Case No. 07-50727). Two Reunion Industries
stockholders, Charles E. Bradley, Sr. Family, L.P., and John Grier
Poole Family, L.P., filed separate Chapter 11 petitions on the
same day (Bankr. D. Conn. Case Nos. 07-50725 and 07-50726). Carol
A. Felicetta, Esq. at Reid and Riege, P.C.S. represents the
Debtors in their restructuring efforts.
STEVE & BARRY'S: SB Manhattan Files Supplement to July 2008 Report
------------------------------------------------------------------
Barry Prevor, co-chief executive officer of Stone Barn Manhattan
LLC, formerly known as Steve & Barry's Manhattan LLC, disclosed
in a supplement dated October 30, 2008, to the July 2008 Monthly
Operating Report that the Debtors have disbursed an aggregate of
$39,004,422 for the period from July 9 to July 31, 2008.
A list of total disbursements per Debtor is available for free at
http://bankrupt.com/misc/Supplement_July2008MOR.pdf
Headquartered in Port Washington, New York, Steve and Barry's 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. The discount clothing chain's
brands include 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.
Pursuant to the Purchase Agreement, the Court authorized 51
Debtors to change their corporate names. Lead Debtor Steve &
Barry's Manhattan LLC (Case No. 08-12579) has been changed to
Stone Barn Manhattan LLC. Parent company Steve & Barry's LLC
(Case No. 08-12615) is now known as Steel Bolt LLC.
When the Debtors filed for bankruptcy, they listed $693,492,000 in
total assets and $638,086,000 in total debts.
(Steve and Barry's Bankruptcy News, Issue No. 18; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000).
WASHINGTON MUTUAL: Files Initial Monthly Operating Report
---------------------------------------------------------
As reported in the Troubled Company Reporter on Nov. 15, 2008,
Washington Mutual, Inc., and WMI Investment Corporation filed an
initial monthly operating report with the U.S. Bankruptcy Court
for the District of Delaware. The Initial Report incorporated,
among other things, a 13-week cash flow forecast for the period
from October 31, 2008, through January 23, 2009, under which WaMu
estimated:
-- receipts to total $6.06 million;
-- disbursements to aggregate $30.94 million;
-- a negative net cash flow of $24.87 million; and
-- ending cash and securities balance to total $4.6 billion.
In line with the Initial Report WaMu Chief Restructuring Officer
William C. Kosturos also notified the Securities and Exchange
Commission that as of October 30, the Debtors paid retainer fees
to these professionals:
Professional Retainer
------------ --------
Weil, Gotshal & Manges, LLP $900,000
Richards, Layton & Finger, P.A. $100,000
Mr. Kosturos noted that WaMu have not paid these firms with their
retainer fees:
Professional Retainer
------------ --------
Alvarez and Marsal $250,000
Joele Frank, Wilkinson Brimmer Katcher $30,000
Kurtzman Carson Consultants LLC $100,000
Based in Seattle, Washington, Washington Mutual Inc. --
http://www.wamu.com/-- is a holding company for Washington Mutual
Bank as well as numerous non-bank subsidiaries. The company
operates in four segments: the Retail Banking Group, which
operates a retail bank network of 2,257 stores in California,
Florida, Texas, New York, Washington, Illinois, Oregon, New
Jersey, Georgia, Arizona, Colorado, Nevada, Utah, Idaho and
Connecticut; the Card Services Group, which operates a nationwide
credit card lending business; the Commercial Group, which conducts
a multi-family and commercial real estate lending business in
selected markets, and the Home Loans Group, which engages in
nationwide single-family residential real estate lending,
servicing and capital markets activities.
Washington Mutual Bank was taken over Sept. 25 by U.S. government
regulators. The next day, WaMu and its debtor-affiliate, WMI
Investment Corp., filed separate petitions for Chapter 11 relief
(Bankr. D. Del. 08-12229 and 08-12228, respectively). WaMu owns
100% of the equity in WMI Investment. Weil Gotshal & Manges
represents the Debtors as counsel. When WaMu filed for protection
from its creditors, it listed assets of $32,896,605,516 and debts
of $8,167,022,695. WMI Investment listed assets of $500,000,000
to $1,000,000,000 with zero debts.
(Washington Mutual Bankruptcy News, Issue No. 8; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or
215/945-7000)
*********
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. Luke Caballos, Sheryl Joy P. Olano, Ronald C. Sy, Joel
Anthony G. Lopez, Cecil R. Villacampa, Carlo Fernandez,
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 ***