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/raid1/www/Hosts/bankrupt/TCR_Public/091003.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, October 3, 2009, Vol. 13, No. 273 Headlines AURORA OIL & GAS: Files August 2009 Operating Reports AUTOBACS STRAUSS: Reports Net Loss in August of $1.1 Million CIRCUIT CITY: Posts $12,594,000 Net Loss in July 2009 CMR MORTGAGE II: Files August 2009 Monthly Operating Report CRUCIBLE MATERIAL: Loss Totals $5.2 Million in August ESCADA AG: U.S. Unit Posts $2.7 Million Loss in August FLEETWOOD ENTERPRISES: Records $13,132,505 Net Loss in August 2009 FRONTIER AIRLINES: Reports $2 Mil. Net Loss in August GENERAL GROWTH: Reports $23.2 Million Net Loss for August GOTTSCHALKS INC: Ends July 2009 With $19,222 Cash KUSHNER-LOCKE: Posts $62,047 Net Loss in July 2009 LANDAMERICA FIN'L: Incurs $19,058,000 Net Loss for July LEAR CORP: Incurs $30.7 Million Net Loss for August MERUELO MADDUX: Posts $3,084,445 Net Loss for August 2009 MIDWAY GAMES: Reports $37,535,294 Net Income for July 2009 NEWPOWER HOLDINGS: Files July 2009 Monthly Operating Report NORTEL NETWORKS: Files August 2009 Monthly Operating Report PFF BANCORP: Posts $142,737,423 Net Loss in August 2009 REFCO INC: Refco Trustee Has $49 Million Cash at July 31 REUNION INDUSTRIES: Posts $263,000 Net Loss for June 2009 SHARPER IMAGE: Ends August 2009 With $6,177,149 Cash SILICON GRAPHICS: Ends August 2009 With $3,805,523 Cash SMURFIT-STONE: Racks Up $25.6 Million August Profit SPANSION INC: Incurs $12.3 Million Loss for Month Ended May 24 THORNBURG MORTGAGE: Files August 2009 Operating Report TOUSA INC: Incurs $19.4 Million Net Loss for August TVI CORP: Posts $666,030 Net Loss for August 2009 TXCO RESOURCES: Posts $5,275,433 Net Loss for July 2009 VERASUN ENERGY: Files August 2009 Monthly Operating Report VINEYARD NATIONAL: Ends August 2009 with $1,932,549 Cash ********* AURORA OIL & GAS: Files August 2009 Operating Reports ----------------------------------------------------- Aurora Oil & Gas Corporation and its subsidiary, Hudson Pipeline & Processing Co., LLC, filed separate Monthly Operating Reports for July and August 2009. Aurora Oil posted a net loss after discontinued operations attributable to common shareholders of $2,883,794 in July and $2,839,844 in August. For the one month ended July 31, 2009, roughly $900,000 was incurred for restructuring/debt services and bankruptcy legal and consulting services. Of the $900,000, $300,000 was incurred on behalf of the creditors. For the one and eight months ended August 31, 2009, roughly $1,400,000 and $4,800,000, respectively was incurred for restructuring/debt services and bankruptcy legal and consulting services. Of the $1,400,000 and $4,800,000, $500,000 and $2,700,000, respectively was incurred on behalf of the creditors. As of August 31, 2009, Aurora Oil had $96,595,391 in total assets and $140,315,783 in total liabilities. As of July 31, 2009, Aurora Oil had $97,517,060 in total assets and $138,397,608 in total liabilities. Hudson Pipeline posted net income of $82,596 in August from net income of $78,728 in July. It had $11,598,705 in total assets against $496,496 in total current liabilities and $243,127 in long-term liabilities. A full-text copy of Aurora Oil's August operating report is available at no charge at http://ResearchArchives.com/t/s?45ee A full-text copy of Hudson Pipeline's August operating report is available at no charge at http://ResearchArchives.com/t/s?45ef About Aurora Oil & Gas Based in Traverse City, Michigan, Aurora Oil & Gas Corporation (Pink Sheets: AOGS) is an independent energy company focused on unconventional natural gas exploration, acquisition, development and production, with its primary operations in the Antrim Shale of Michigan, the New Albany Shale of Indiana and Kentucky. The Company and one affiliate filed for Chapter 11 protection on July 12, 2009 (Bankr. W.D. Mich. Case Nos. 09-08254 and 09-08255). Judge Scott W. Dales presides over the case. Stephen B. Grow, Esq., at Warner Norcross & Judd, LLP, in Grand Rapids, Michigan; and Joel H. Levitin, Esq., and Richard A. Stieglitz, Jr., at Cahill Gordon & Reindel LLP, in New York, serve as the Debtors' counsel. Aurora listed between $100 million and $500 million each in assets and debts. AUTOBACS STRAUSS: Reports Net Loss in August of $1.1 Million ------------------------------------------------------------ According to Bill Rochelle at Bloomberg, Autobacs Strauss Inc., reported a $1.15 million net loss in August on total sales of $9.9 million. The operating loss for the month was $1.1 million. From the inception of the case in February, the cumulative net loss is $9.7 million. In August, earnings before interest, taxes, depreciation, and amortization were $196,000. Headquartered in South River, New Jersey, Autobacs Strauss Inc. -- http://www.straussauto.com/-- sells after-market automotive parts and accessories, and operate automotive service centers located in New York, New Jersey, Philadelphia, Bethlehem and Pennsylvania. The Company operates 86 retail store locations and has about 1,450 employees. The Company filed for Chapter 11 protection on February 4, 2009 (Bankr. D. Del. Case No. 09-10358). Edward J. Kosmowski, Esq., at Young Conaway Stargatt & Taylor, LLP, represents the Debtor in its restructuring efforts. As of January 3, 2009, the Debtor had total assets of $75,000,000 and total debts of $72,000,000. The Chapter 11 case is Strauss's third. The preceding Chapter 11 case ended with confirmation of a Chapter 11 plan in April 2007. The Company was then named R&S Parts & Service Inc. CIRCUIT CITY: Posts $12,594,000 Net Loss in July 2009 ----------------------------------------------------- Circuit City Stores, Inc., filed its Monthly Operating Report for the period from July 1 to 31, 2009, with the United States Bankruptcy Court for the Eastern District of Virginia. The Debtors incurred a net loss of $12,594,000 during the period on $0 net sales. At July 31, the Debtors had $951,064,000 in total assets and $1,690,711,000 in total liabilities. During July 2009, the Company recorded a non-cash impairment charge of $5.1 million related to its remaining owned properties. During July 2009, the Company did not record a full tax provision. The Debtors paid $3,223,607 to bankruptcy professionals in July. Since filing for bankruptcy until the July period, the Debtors have paid $25,822,321 to bankruptcy professionals. A full-text copy of the Monthly Operating Report is available at no charge at http://ResearchArchives.com/t/s?461b About Circuit City Headquartered in Richmond, Virginia, Circuit City Stores Inc. (NYSE: CC) -- http://www.circuitcity.com/-- was a specialty retailer of consumer electronics, home office products, entertainment software and related services in the U.S. and Canada. Circuit City Stores together with 17 affiliates filed a voluntary petition for reorganization relief under Chapter 11 of the Bankruptcy Code on November 10 (Bankr. E.D. Va. Lead Case No. 08- 35653). InterTAN Canada, Ltd., which runs Circuit City's Canadian operations, also sought protection under the Companies' Creditors Arrangement Act in Canada. Gregg M. Galardi, Esq., and Ian S. Fredericks, Esq., at Skadden, Arps, Slate, Meagher & Flom, LLP, are the Debtors' general restructuring counsel. Dion W. Hayes, Esq., and Douglas M. Foley, Esq., at McGuireWoods LLP, are the Debtors' local counsel. The Debtors also tapped Kirkland & Ellis LLP as special financing counsel; Wilmer, Cutler, Pickering, Hale and Dorr, LLP, as special securities counsel; and FTI Consulting, Inc., and Rotschild Inc. as financial advisors. The Debtors' Canadian general restructuring counsel is Osler, Hoskin & Harcourt LLP. Kurtzman Carson Consultants LLC is the Debtors' claims and voting agent. The Debtors disclosed total assets of $3,400,080,000 and debts of $2,323,328,000 as of August 31, 2008. Circuit City has opted to liquidate its 721 stores. It has obtained the Bankruptcy Court's approval to pursue going-out-of- business sales, and sell its store leases. CMR MORTGAGE II: Files August 2009 Monthly Operating Report ----------------------------------------------------------- CMR Mortgage Fund II, LLC, filed with the U.S. Bankruptcy Court for the Northern District of California, San Francisco Division, its Monthly Operating Report for the month ended August 31, 2009. The Debtor posted a net loss of $66,353 for the month. As of August 31, it had $74,012,918 in total assets and $36,132,885 in total liabilities. It ended August with $787 cash. California Mortgage and Realty, Inc., acts as manager for the Debtor. A full-text copy of the Monthly Operating Report is available at no charge at http://ResearchArchives.com/t/s?4618 San Francisco, California-based CMR Mortgage Fund II, LLC, is a limited liability company organized for the purpose of making or investing in business loans secured by deeds of trust or mortgages on real properties located primarily in California. The Company previously funded lending activities through loan pay downs or pay offs, as well as by selling its membership interests, and by selling all or a portion of interests in the loans to individual investors. The Company commenced operations in February 2004. The Company ceased accepting new members in the third quarter of 2006. The Company filed for Chapter 11 protection on March 31, 2009 (Bankr. N. D. Calif. Case No. 09-30788). Robert G. Harris, Esq., at the Law Offices of Binder and Malter, represents the Debtor as counsel. The Debtor listed between $10 million and $50 million each in assets and debts. CRUCIBLE MATERIAL: Loss Totals $5.2 Million in August ----------------------------------------------------- According to Bill Rochelle at Bloomberg, Crucible Materials Corp. reported a $5.2 million net loss in August on sales of $11 million. Since the beginning of the reorganization in early May, the cumulative net loss is $23.1 million on sales of $46.9 million. Based in Syracuse, New York, Crucible Materials Corporation -- aka Crucible Specialty Metals, Crucible Service Centers, Crucible Compaction Metals, Crucible Research and Trent Tube -- makes stainless and alloy steel for use in the aircraft, automotive, petrochemical, and other industries. The Company is currently employee-owned. Its Web site is http://www.crucible.com/ The Company and its affiliate, Crucible Development Corporation, filed for Chapter 11 protection on May 6, 2009 (Bankr. D. Del. Lead Case No. 09-11582). Mark Minuti, Esq., at Saul Ewing LLP represents the Debtors in their restructuring efforts. The Debtors engaged Duff & Phelps Securities LLP as investment banker; RAS Management Advisors LLC as business advisor; and Epiq Bankruptcy Solutions LLC as claims agent. Roberta A. DeAngelis, United States Trustee for Region 3, appointed five creditors to serve on the Official Committee of Unsecured Creditors. The Debtors listed assets and debts both ranging from $100 million to $500 million. ESCADA AG: U.S. Unit Posts $2.7 Million Loss in August ------------------------------------------------------ Tiffany Kary at Bloomberg News reports that Escada AG's U.S. unit posted a net loss of $2.7 million in the month of August, leaving the bankrupt clothing maker with $3.7 million in cash. The unit, Escada USA, generated a profit of $1.7 million from Aug. 14 to Aug. 30 because of a $2.8 million gain on accounts receivable, according to an operating report. The ESCADA Group -- http://www.escada.com/-- is an international fashion group for women's apparel and accessories, which is active on the international luxury goods market. It has pursued a course of steady expansion since its founding in 1976 by Margaretha and Wolfgang Ley and today has 182 own shops and 225 franchise shops/corners in more than 60 countries. As of August 10, 2009, the Escada Group operated 176 owned stores and so-called shop in shops, of which 26 owned stores are located in the United States and operated by Escada (USA) Inc. and 2 stores are planned to be opened in the United States before year end. Escada Group products are also sold in 163 stores worldwide which are operated by franchisees. Escada Group had total assets of EUR322.2 million against total liabilities of 338.9 million as of April 30, 2009. ESCADA AG filed of an insolvency petition in Munich, Germany, on August 13, 2009. The competent Municipal Court of Munich has appointed Dr. jur. Christian Gerloff as preliminary insolvency administrator. Wholly owned subsidiary Escada (USA) Inc. filed for Chapter 11 on August 14, 2009 (Bankr. S.D.N.Y. Case No. 09-15008). O'Melveny & Myers LLP has been tapped as bankruptcy counsel. Kurtzman Carson Consultants serves as claims and notice agent. Judge Stuart M. Bernstein handles the case. Escada US listed US$50 million to US$100 million in assets and US$100 million to US$500 million in debts in its petition. Bankruptcy Creditors' Service, Inc., publishes Escada USA Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Escada AG's U.S. unit. (http://bankrupt.com/newsstand/or 215/945-7000) FLEETWOOD ENTERPRISES: Records $13,132,505 Net Loss in August 2009 ------------------------------------------------------------------ Fleetwood Enterprises, Inc., on September 23, 2009, filed its monthly operating report for the period beginning on July 27, 2009 through August 23, 2009, with the United States Trustee for the Central District of California, Riverside Division. Fleetwood posted a net loss of $13,132,505 in August. As of August 23, 2009, Fleetwood had $211,531,000 in total assets and $370,707,000 in total liabilities, resulting in $159,176,000 in stockholders' deficit. A full-text copy of the August Monthly Operating Report is available at no charge at http://ResearchArchives.com/t/s?45eb Based in Riverside, California, Fleetwood Enterprises, Inc., together with 19 of affiliates, filed for Chapter 11 protection on March 10, 2009 (Bankr. C.D. Calif. Lead Case No. 09-14254). Craig Millet, Esq., and Solmaz Kraus, Esq., at Gibson, Dunn & Crutcher LLP, represent the Debtors in their restructuring efforts. FTI Consulting Inc. is the financial advisors to the Debtors. The Debtors tapped Greenhill & Co. LLC as its investment banker. Fleetwood was authorized in June to sell its recreational vehicle business for $53 million to private-equity investor American Industrial Partners. FRONTIER AIRLINES: Reports $2 Mil. Net Loss in August ----------------------------------------------------- Frontier Airlines Holdings, Inc. reported an operating profit of $10.2 million for the month of August. The Company also reported a net loss of $2.0 million, due to expenses associated with its bankruptcy case. The results were filed in the Company's unaudited Monthly Operating Report for August 2009. Frontier reported a consolidated operating profit of $10.2 million for the month of August 2009, compared to an operating income of $3.3 million for the same period in 2008, and a total consolidated net loss of $2.0 million compared to a net loss of $5.6 million for August 2008. Excluding special items, the Company would have reported net income of $10.2 million, or a net margin of 10.0 percent, in August 2009, compared to net income of $1.2 million, or a margin of 0.9 percent, in 2008. Excluding special items, the operating profit for the month was $11.9 million versus an operating profit of $3.4 million in August 2008. Special items for the month of August 2009 included $10.5 million of reorganization expense, compared to $6.5 million in August 2008. Operational results for the month of August 2009 included: * A 13.0 percent year-over-year mainline capacity reduction * Mainline unit cost excluding fuel (CASM ex-fuel) was 5.81 cents, an increase of 8.4 percent over August 2008 * Mainline total unit cost (CASM) was 8.96 cents, a 16.3 percent reduction from the same period in 2008 * Mainline passenger revenue (PRASM) was 9.31 cents, a reduction of 12.6 percent from the previous year * Mainline total unit revenue (RASM) was 10.17 cents, an 8.2 percent reduction compared to August 2008 "It is impressive that, even with more than $10 million in expenses related to our bankruptcy case, double-digit reduction in revenue due to the continuing weak economy and constant competitive pressure, we still managed a $10 million operating profit in August," said Frontier President and CEO Sean Menke. "This and our financial performance over the past 10 months is validation of our laser focus on cost, our continuing revenue development efforts and our constant attention to providing the highest levels of service to our loyal customers." Frontier expects to emerge from bankruptcy on October 1, 2009, as a wholly owned subsidiary of Republic Airways Holdings, Inc. A copy of the Monthly Operating Report is available for free at: http://www.frontierairlines.com/secfilings/8k083109/8k083109.pdf FRONTIER AIRLINES HOLDINGS, INC., ET AL. Unaudited Condensed Balance Sheet As of August 31, 2009 ASSETS CURRENT ASSETS: Cash and cash equivalents $69,985,000 Restricted cash and investments 164,962,000 Receivables, net of allowance 34,215,000 Prepaid expenses and other assets 20,279,000 Inventories, net of allowance 12,614,000 Assets held for sale 605,000 --------------- Total current assets 302,660,000 Property and other equipment, net 582,937,000 Security and other deposits 27,945,000 Maintenance reserve deposits 135,432,000 Aircraft pre-delivery payments 6,869,000 Restricted investments 2,987,000 Deferred loan expenses and other assets 8,862,000 --------------- Total Assets $1,067,692,000 =============== LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities not subject to compromise: CURRENT LIABILITIES: Accounts payable $45,040,000 Air traffic liability 139,566,000 Other accrued expenses 54,045,000 Short-term borrowings 14,115,000 Deferred revenue & other current liabilities 13,134,000 DIP financing 40,000,000 -------------- Total current liabilities not subject to compromise 305,900,000 Deferred revenue and other liabilities 17,127,000 Other long-term debt -- postpetition 3,000,000 -------------- Total liabilities not subject to compromise 326,027,000 Liabilities subject to compromise 685,947,000 -------------- Total Liabilities 1,011,974,000 STOCKHOLDERS' EQUITY Preferred stock - Common stock 37,000 Additional paid-in capital 197,485,000 Cumulative effect of accounting principle 124,511,000 Accumulated deficit (266,315,000) -------------- Total Stockholders' Deficit 55,718,000 -------------- Total Liabilities and Stockholders' Deficit $1,067,692,000 ============== FRONTIER AIRLINES HOLDINGS, INC., ET AL. Unaudited Condensed Consolidated Statement of Operations Month Ended August 31, 2009 Revenues: Passenger $94,018,000 Cargo 438,000 Other 7,555,000 -------------- Total revenues 102,011,000 Operating expenses: Flight operations 13,072,000 Aircraft fuel 31,246,000 Aircraft lease 9,396,000 Aircraft and traffic servicing 14,610,000 Maintenance 5,445,000 Promotion and sales 10,115,000 General and administrative 5,031,000 Operating expenses -- regional partner - Loss (gain) on sales of assets, net - Employee separation and other charges - Depreciation 2,899,000 -------------- Total operating expenses 91,814,000 -------------- Operating income (loss) 10,197,000 Non-operating income (expense): Interest income 127,000 Interest expense (1,750,000) Loss from early extinguishment of debt - Other, net 35,000 -------------- Total non-operating expense, net (1,588,000) Income before reorganization items & income tax 8,609,000 Reorganization items 10,495,000 Income tax expense 104,000 -------------- Net Income (Loss) ($1,990,000) ============== FRONTIER AIRLINES HOLDINGS, INC., ET AL. Unaudited Condensed Consolidated Statement of Cash Flows Month Ended August 31, 2009 Cash flows from operating activities: Net income (loss) ($1,990,000) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: ESOP and stock option compensation expense 74,000 Depreciation and amortization 3,112,000 Assets beyond economic repair 65,000 Mark to market adjustments on derivative contracts 1,665,000 Amounts paid for settled derivative contracts - Gain on disposal of equipment & other assets, net - Loss on early extinguishment of debt - Reorganization items 10,495,000 Changes in operating assets and liabilities: Restricted investments 5,053,000 Receivables 2,777,000 Security and other deposits 1,097,000 Maintenance reserve payments (2,042,000) Prepaid expenses and other assets 4,082,000 Inventories 380,000 Accounts payable 7,629,000 Air traffic liability (11,293,000) Other accrued expenses & income tax payable 28,000 Deferred revenue and other liabilities (876,000) -------------- Net cash provided by (used in) operating activities 20,256,000 Cash flows from reorganization activities Net cash (used in) provided by reorganization activities (9,821,000) --------------- Total net cash provided by (used in) operating activities 10,435,000 Cash flows from investing activities: Aircraft purchase deposits made (2,262,000) Aircraft purchase deposits returned/applied 2,658,000 Sale of short-term investment - Proceeds from the sale of property and equipment and assets held for sale 13,000 Capital expenditures (20,588,000) Proceeds from the sale of aircraft -- reorganization - -------------- Net cash provided by (used in) investing activities (20,179,000) Cash flows from financing activities: Proceeds from DIP financing (postpetition) - Proceeds from short-term borrowings 14,115,000 Extinguishment of long-term borrowings - Principal payments on long-term borrowings (2,075,000) Principal payments on short-term borrowing - Payment of financing fees (90,000) Extinguishment of long-term borrowings -- reorganization - -------------- Net cash provided by (used in) financing activities 11,950,000 Increase in cash and cash equivalents 2,206,000 Cash and cash equivalents at beginning of period 67,779,000 -------------- Cash and cash equivalents at end of period $69,985,000 ============== Frontier Airlines Holdings, Inc., is the parent company of Denver- based Frontier Airlines. Currently in its 16th year of operations, Frontier Airlines is the second-largest jet service carrier at Denver International Airport, employing approximately 5,000 aviation professionals. Frontier Airlines' mainline operation is made up of one of the youngest Airbus fleets in North America offering 24 channels of DIRECTV(R) service in every seatback along with a comfortable all-coach configuration. In conjunction with a fleet of Bombardier Q400 aircraft operated by Lynx Aviation (a subsidiary of Frontier Airlines Holdings, Inc.), Frontier offers routes to more than 50 destinations in the U.S., Mexico and Costa Rica. In addition, Frontier and Midwest Airlines have a codeshare partnership that allows passengers of both airlines access to 70 destinations in the U.S., Mexico and Costa Rica. Republic Airways Holdings, Inc., expects to close on its purchase of Frontier Airlines on or before October 1, 2009, after which Frontier will become a subsidiary of Republic, alongside Midwest Airlines and Republic's other wholly owned subsidiaries. About Frontier Airlines Frontier Airlines Holdings, Inc. (OTCBB: FRNTQ) is the parent company of Denver-based Frontier Airlines and Lynx Aviation. Currently in its 16th year of operations, Frontier Airlines is the second-largest jet service carrier at Denver International Airport, employing approximately 5,000 aviation professionals. Frontier Airlines' mainline operation is made up of one of the youngest Airbus fleets in North America offering 24 channels of DIRECTV(R) service in every seatback along with a comfortable all- coach configuration. In conjunction with a fleet of Bombardier Q400 aircraft operated by Lynx Aviation, Frontier offers routes to more than 50 destinations in the U.S., Mexico and Costa Rica. In addition, Frontier and Midwest Airlines, a subsidiary of Republic, have a codeshare partnership that allows passengers of both airlines access to 70 destinations in the U.S., Mexico and Costa Rica. Frontier Airlines and its debtor-affiliates filed for Chapter 11 protection on April 10, 2008 (Bankr. S.D.N.Y. Case No. 08-11297 thru 08-11299). Benjamin S. Kaminetzky, Esq., and Hugh R. McCullough, Esq., at Davis Polk & Wardwell, represent the Debtors in their restructuring efforts. Togul, Segal & Segal LLP is the Debtors' Conflicts Counsel, Faegre & Benson LLP is the Debtors' Special Counsel, and Kekst and Company is the Debtors' Communications Advisors. As reported by the TCR on August 14, Republic Airways Holdings, Inc. (NASDAQ: RJET) has been declared the winning bidder in the auction to acquire Frontier, beating Southwest Airlines. Republic Airways expects to close on its purchase of Frontier Airlines on or about Oct. 1, 2009, after which Frontier and Lynx will become subsidiaries of Republic, alongside Midwest Airlines and Republic's other wholly owned subsidiaries. Bankruptcy Creditors' Service, Inc., publishes Frontier Airlines Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of Frontier Airlines Inc. and its debtor-affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) GENERAL GROWTH: Reports $23.2 Million Net Loss for August --------------------------------------------------------- General Growth Properties, Inc. Consolidated Condensed Balance Sheet As of August 31, 2009 Assets Investment in real estate: Land $2,946,905,000 Buildings and equipment 19,495,558,000 Less accumulated depreciation (3,970,212,000) Developments in progress 868,408,000 ---------------- Net property and equipment 19,340,659,000 Investment in and loans to/from Unconsolidated Real Estate Affiliates 385,916,000 Investment property and property held for development and sale 1,108,401,000 Investment in consolidated non-debtor entities 3,681,002,000 ---------------- Net investment in real estate 24,515,978,000 Cash and cash equivalents 577,038,000 Accounts and notes receivable, net 327,906,000 Goodwill 211,540,000 Deferred expenses, net 248,870,000 Prepaid expenses and other assets 566,597,000 ---------------- Total assets $26,447,929,000 ================ Liabilities and Equity: Mortgages, notes and loans payable $400,000,000 Investment in and loans to/from Unconsolidated Real Estate Affairs 31,966,000 Deferred tax liabilities 892,277,000 Accounts payable and accrued expenses 708,953,000 ---------------- Liabilities not subject to compromise 2,033,196,000 ---------------- Liabilities subject to compromise 22,291,377,000 ---------------- Total liabilities 24,324,573,000 ---------------- Redeemable noncontrolling interests: Preferred 120,756,000 Common 37,262,000 ---------------- Total redeemable noncontrolling interests 158,018,000 ---------------- Equity: Common stock 3,138,000 Additional paid-in capital 3,793,011,000 Retained earnings (accumulated deficit) (1,745,279,000) Accumulated other comprehensive loss (22,426,000) Less common stock in treasury, at cost (76,752,000) ---------------- Total stockholder's equity 1,951,692,000 Noncontrolling interests in consolidated real estate affiliates 13,646,000 ---------------- Total equity 1,965,338,000 ---------------- Total liabilities and equity $26,447,929,000 ================ General Growth Properties, Inc. Consolidated Statement of Income For the Month ended August 31, 2009 Revenues: Minimum rents $139,408,000 Tenant recoveries 59,626,000 Overage rents 3,021,000 Land sales 639,000 Other 5,686,000 ---------------- Total revenues 208,380,000 ---------------- Expenses: Real estate taxes 18,580,000 Repairs and maintenance 15,645,000 Marketing 1,976,000 Ground and other rents 965,000 Other property operating costs 28,725,000 Land sales operations 1,427,000 Provision for doubtful accounts 257,000 Property management and other costs 11,209,000 General and administrative 3,752,000 Provisions for impairment 76,000 Depreciation and amortization 51,684,000 ---------------- Total expenses 134,296,000 ---------------- Operating income 74,840,000 Interest (expense) income, net (95,806,000) ---------------- Loss before income taxes, noncontrolling interests, equity in income of Unconsolidated Real Estate Affiliates and reorganization items (21,722,000) Provision for income taxes 1,376,000 Equity in income of Unconsolidated Real Estate Affiliates 7,064,000 Reorganization items (9,318,000) ---------------- Net loss (22,600,000) Allocation to noncontrolling interests (596,000) ---------------- Net loss attributable to common stockholders ($23,196,000) ================ About General Growth Based in Chicago, Illinois, General Growth Properties, Inc. -- http://www.ggp.com/-- is the second-largest U.S. mall owner, having ownership interest in, or management responsibility for, more than 200 regional shopping malls in 44 states, as well as ownership in master planned community developments and commercial office buildings. The Company's portfolio totals roughly ] 200 million square feet of retail space and includes more than 24,000 retail stores nationwide. General Growth is a self- administered and self-managed real estate investment trust. The Company's common stock is trading in the pink sheets under the symbol GGWPQ. General Growth Properties Inc. and its affiliates filed for Chapter 11 on April 16, 2009 (Bankr. S.D.N.Y., Case No. 09-11977). Marcia L. Goldstein, Esq., Gary T. Holtzer, Esq., Adam P. Strochak, Esq., and Stephen A. Youngman, Esq., at Weil, Gotshal & Manges LLP, have been tapped as bankruptcy counsel. Kirkland & Ellis LLP is co-counsel. Kurtzman Carson Consultants LLC has been engaged as claims agent. The Company also hired AlixPartners LLP as financial advisor and Miller Buckfire Co. LLC, as investment bankers. The Debtors disclosed $29,557,330,000 in assets and $27,293,734,000 in debts as of December 31, 2008. Bankruptcy Creditors' Service, Inc., publishes General Growth Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by General Growth Properties Inc. and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) GOTTSCHALKS INC: Ends July 2009 With $19,222 Cash ------------------------------------------------- Gottschalks Inc. filed the Bankruptcy Court its monthly operating report for the period July 5 to August 1, 2009. The Debtor ended the period with $19,222 cash. During the period, the Debtor paid $2,389,076 in bankruptcy professional fees and reimbursed $96,977 in professionals' expenses. The amounts paid include $142,555 in fees and $1,063 in expenses paid to GE Capital's legal advisors, which represent disbursements related to advisory work on the Debtor's Credit Agreement performed prepetition. The Debtor booked $446,000 in total revenues for the month and recorded a $31,145,000 net loss. At August 1, 2009, the Debtor had $56,810,000 in total assets and $92,985,000 in total liabilities. The July Monthly Operating Report is available at no charge at: http://ResearchArchives.com/t/s?4514 About Gottschalks Headquartered in Fresno, California, Gottschalks Inc. (Pink Sheets: GOTTQ.PK) -- http://www.gottschalks.com/-- is a regional department store chain, operating 58 department stores and three specialty apparel stores in six western states. Gottschalks offers better to moderate brand-name fashion apparel, cosmetics, shoes, accessories and home merchandise. The Company filed for Chapter 11 protection on January 14, 2009 (Bankr. D. Del. Case No. 09-10157). O'Melveny & Myers LLP represents the Debtor in its Chapter 11 case. Lee E. Kaufman, Esq., and Mark D. Collins, Esq., at Richards, Layton & Finger, P.A., serves as the Debtors' co-counsel. The Debtor selected Kurtzman Carson Consultants LLC as its claims agent. The U.S. Trustee for Region 3 appointed seven creditors to serve on an official committee of unsecured creditors. When the Debtor filed for protection from its creditors, it listed $288,438,000 in total assets and $197,072,000 in total debts. KUSHNER-LOCKE: Posts $62,047 Net Loss in July 2009 -------------------------------------------------- The Kushner-Locke Company and certain of its wholly owned subsidiaries posted a net loss of $62,047 in July 2009. The Debtors ended July 2009 with: -- $313,167 in cash in a Comerica Bank account; -- $642,455 in cash in a JP Morgan Chase account; and -- $1,251,082 in cash in a City National Bank account. The Debtors had $2,799,576 in total assets and $29,350 in total liabilities at July 31, 2009. A full-text copy of the Debtors' July operating report is available at no charge at http://ResearchArchives.com/t/s?45ea On August 19, the Debtors filed copies of their monthly operating reports for the periods from March to June 2009. 1. March 2009 Monthly Operating Report See http://ResearchArchives.com/t/s?426f 2. April 2009 Monthly Operating Report See http://ResearchArchives.com/t/s?426e 3. May 2009 Monthly Operating Report See http://ResearchArchives.com/t/s?426d 4. June 2009 Monthly Operating Report See http://ResearchArchives.com/t/s?426c The Debtors posted a net loss of $79,528 in March, a net loss of $72,467 in April, a net loss of $72,573 in May, and a net loss of $54,331 in June. Headquartered in Los Angeles, California, The Kushner-Locke Company is a low-budget movie production studio. The company, along with its debtor-affiliates filed for chapter 11 protection on November 21, 2001 (Bankr. C.D. Calif. Lead Case No. 01-44828). Carol Chow, Esq., and Charles Axelrod, Esq., at Stutman, Treister & Glatt; Mara Mornet-Ritt, Esq., at Brandon & Morner-Ritt; and Martin Fineman, Esq., at Davis Wright Tremaine LLP, represent the Debtors in their restructuring efforts. Jeremy V. Richards, Esq., at Pachulski Stang Ziehl & Jones LLP, represent the Official Committee of Unsecured Creditors as counsel. LANDAMERICA FIN'L: Incurs $19,058,000 Net Loss for July ------------------------------------------------------- LandAmerica Financial Group, Inc. Balance Sheet As of July 31, 2009 ASSETS Cash $81,229,000 Restricted Cash $15,523,000 Notes: Fidelity National Title 50,000,000 Other 12,957,000 Investments: Fidelity National Title stock 54,892,000 Short Term Investments 0 Taxes receivable 21,462,000 Property and equipment 14,520,000 Title Plans 945,000 Other assets 53,021,000 Investments in subsidiaries and consolidated joint ventures 651,318,000 Intercompany receivable 251,842,000 --------------- Total Assets $1,207,709,000 =============== LIABILITIES Accounts payable and accrued liabilities 25,977,000 Liabilities subject to compromise 488,497,000 --------------- Total Liabilities 514,474,000 --------------- Total Shareholders' Equity 693,235,000 --------------- Total Liabilities and Shareholders' Equity $1,207,709,000 =============== LandAmerica Financial Group, Inc. Statement of Operations For the month ended July 31, 2009 Revenue: Investment and other income $440,000 Valuation adjustment related to Fidelity National Title Stock 2,605,000 --------------- Total Revenue $3,045,000 =============== Expenses General, administrative and other expenses 816,000 Professional fees 3,792,000 Impairment of assets (1,735,000) Depreciation and amortization 298,000 Interest Expense 3,891,000 Loss (Gain) on disposal of subsidiaries 15,042,000 --------------- Total Expenses 22,102,000 --------------- Net Loss before income taxes (19,058,000) Income tax benefit 0 --------------- Net Loss ($19,058,000) =============== LandAmerica Financial Group, Inc. Schedule of Cash Receipts and Disbursements For Month Ended July 31, 2009 Operating Cash and Cash Equivalents Held for the benefit: LandAmerica Financial Group, Inc. $63,831,000 PBGC 4,657,000 Underwriters 7,474,000 Retained Subsidiaries 2,929,000 --------------- Opening Cash 78,891,000 --------------- Cash Receipts Collection received for the benefit of: Underwriters 19,000 Retained subsidiaries 10,299,000 Payment reimbursements by: Underwriters 0 Retained Subsidiaries 10,209,000 Proceeds from sale of the underwriting business: LandAmerica Financial Group, Inc. 0 Retained Subsidiaries 0 Proceeds from LandAm Valuation sale 0 Proceeds from LoanCare sale 0 Proceeds from RealEC 2,500,000 Other Receipts 1,624,000 --------------- Total Receipts 24,652,000 --------------- Cash Disbursement Related to LFG Payroll 1,177,000 Rent & other occupancy costs 190,000 Insurance 126,000 Leases 51,000 Information Technology 591,000 Payables 171,000 Bankruptcy Professional Fees 3,030,000 Return of Funds - Underwriters 0 Transfers to Restricted Cash 4,657,000 Others 0 --------------- Total 9,991,000 --------------- Payments made for the benefit of; Underwriters 517,000 Retained subsidiaries 11,805,000 --------------- Total Disbursements 22,314,000 --------------- Net Cash Flow 2,338,000 --------------- Ending Cash and Cash Equivalents $81,229,000 =============== Ending Cash and Cash Equivalents Held for the benefit: LFG $62,620,000 Underwriters 6,976,000 Retained subsidiaries 11,632,000 --------------- Total $81,229,000 =============== In Form 8-K filing submitted to the U.S. Securities and Exchange Commission, Debtor LandAmerica Financial Group, Inc., cautions investors and potential investors not to place undue reliance on information contained in the July 2009 Monthly Operating Report, which was not prepared for the purpose of providing the basis for an investment decision relating to any of LFG's securities. G. William Evans, executive vice president and chief financial office of LFG, said the Report was not audited by independent accountants, is limited in scope, covers a limited time period, and has been prepared solely for the purpose of complying with the monthly reporting requirements of the Office of the United States Trustee. About LandAmerica Financial LandAmerica Financial Group, Inc., provides real estate transaction services with offices nationwide and a vast network of active agents. LandAmerica and its affiliates operate through approximately 700 offices and a network of more than 10,000 active agents throughout the world, including Mexico, Canada, the Caribbean, Latin America, Europe, and Asia. LandAmerica Financial Group and its affiliate LandAmerica 1031 Exchange Services, Inc. filed for Chapter 11 protection Nov. 26, 2008 (Bankr. E.D. Va. Lead Case No. 08-35994). Dion W. Hayes, Esq., and John H. Maddock III, Esq., at McGuireWoods LLP, are the Debtors' bankruptcy counsel. In its bankruptcy petition, LFG listed total assets of $3,325,100,000, and total debts of $2,839,800,000 as of Sept. 30, 2008. On March 6, 2009, affiliate LandAmerica Assessment Corporation, aka National Assessment Corporation, filed its own petition for Chapter 11 relief. Affiliate LandAmerica Title Company filed for for Chapter 11 relief on March 27, 2009. LandAmerica Credit Services, Inc., filed for Chapter 11 in July 2009. Bankruptcy Creditors' Service, Inc., publishes LandAmerica Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by LandAmerica Financial and its affiliate LandAmerica 1031 Exchange Services, Inc. (http://bankrupt.com/newsstand/or 215/945-7000) LEAR CORP: Incurs $30.7 Million Net Loss for August --------------------------------------------------- A full-text copy of Lear Corp. and its debtor affiliates' consolidated monthly operating report for the month ended August 2009 is available for free at: http://bankrupt.com/misc/Lear_Aug09_MOR.pdf Lear Corporation et al. Condensed Consolidated Balance Sheet As of August [_], 2009 ASSETS Current Assets: Cash and cash equivalents $762,900,000 Accounts receivable 93,300,000 Inventories 181,800,000 Amounts due from non-Debtor subsidiaries 1,589,400,000 Other 65,000,000 -------------- Total current assets 2,692,400,000 Long-term Assets: Property, plant and equipment, net 346,400,000 Goodwill 0 Investments in non-Debtor subsidiaries 1,689,300,000 Other 181,700,000 -------------- Total long-term assets 2,217,400,000 -------------- Total assets $4,909,800,000 ============== LIABILITIES AND DEFICIT ATTRIBUTABLE TO DEBTORS CURRENT LAIBILITIES NOT SUBJECT TO COMPROMISE: Accounts payable and drafts $276,900,000 Accrued Liabilities 39,600,000 DIP Facility 500,000,000 -------------- Total current liabilities 816,500,000 -------------- Long-term Liabilities Not Subject to Compromise: Other long-term liabilities 0 Liabilities Subject to Compromise 4,308,100,000 -------------- Total liabilities 5,124,600,000 -------------- Deficit attributable to Debtors (214,800,000) -------------- $4,909,800,000 ============== Lear Corporation et al. Condensed Statement of Operations For the Month Ended August 2009 Net Sales $247,400,000 Cost of sales 219,800,000 Selling, general and administrative expenses 14,300,000 Intercompany interest income (3,700,000) Interest expense 8,100,000 Other income, net 4,800,000 Equity in net loss of non-Debtor subsidiaries 18,400,000 Reorganization items Professional fees 11,100,000 Incentive compensation expense 4,600,000 -------------- Loss before provision for income taxes (30,000,000) Provision for income taxes 700,000 -------------- Net loss ($30,700,000) ============== Lear Corporation et al. Schedule of Cash Receipts For August 2009 Lear Corporation $471,261,000 Lear #50 Holdings, LLC 0 Lear Argentine Holdings Corporation #2 0 Lear Automotive Dearborn, Inc. 0 Lear Automotive Manufacturing, LLC 0 Lear Canada 17,577,000 Lear Canada Investments Ltd. 0 Lear Corporation(Germany) Ltd. 0 Lear Corporation Canada Ltd. 0 Lear Corporation EEDS and Interiors 35,331,000 Lear Corporation Global Development, Inc. 0 Lear EEDS Holdings, LLC 0 Lear European Operations Corporation 0 Lear Holdings, LLC 0 Lear Investments Company, LLC 0 Lear Mexican Holdings Corporation 0 Lear Mexican Holdings, LLC 0 Lear Mexican Seating Corporation 335,000 Lear Operations Corporation 25,671,000 Lear Seating Holdings Corp. #50 0 Lear South Africa Limited 0 Lear South American Holdings Corporation 0 Lear Trim L.P. 4,320,000 Renosol Seating, LLC 583,000 -------------- Total $555,078,000 ============== Lear Corporation Schedule of Disbursements For August 2009 Lear Corporation ($41,672,000) Lear #50 Holdings, LLC 0 Lear Argentine Holdings Corporation #2 0 Lear Automotive Dearborn, Inc. 0 Lear Automotive Manufacturing, LLC 0 Lear Canada (10,027,000) Lear Canada Investments Ltd. 0 Lear Corporation(Germany) Ltd. 0 Lear Corporation Canada Ltd. 0 Lear Corporation EEDS and Interiors (11,643,000) Lear Corporation Global Development, Inc. 0 Lear EEDS Holdings, LLC 0 Lear European Operations Corporation 0 Lear Holdings, LLC 0 Lear Investments Company, LLC 0 Lear Mexican Holdings Corporation 0 Lear Mexican Holdings, LLC 0 Lear Mexican Seating Corporation (17,177,000) Lear Operations Corporation (9,835,000) Lear Seating Holdings Corp. #50 0 Lear South Africa Limited 0 Lear South American Holdings Corporation 0 Lear Trim L.P. (9,947,000) Renosol Seating, LLC (1,626,000) ------------- Total ($101,927,000) ============= About Lear Corp. Lear Corporation -- http://www.lear.com/-- is one of the world's leading suppliers of automotive seating systems, electrical distribution systems and electronic products. The Company's products are designed, engineered and manufactured by a diverse team of 80,000 employees at 210 facilities in 36 countries. Lear's headquarters are in Southfield, Michigan, and Lear is traded on the New York Stock Exchange under the symbol [LEA]. Outside the United States, Lear has subsidiaries in Germany, Luxembourg, Sweden, Singapore, China, India and Mexico, among others. Lear Corporation and its affiliates filed for Chapter 11 on July 7, 2009 (Bankr. S.D.N.Y. Case No. 09-14326). Affiliates part of the Chapter 11 filing include Lear South Africa Limited, Lear Corporation (Germany) Ltd., Lear Corporation Canada Ltd., Lear Mexican Holdings Corporation, and Lear South American Holdings Corporation. Attorneys at Kirkland & Ellis LLP, serve as the Debtors' bankruptcy counsel. McCarthy Tetrault LLP has been engaged as CCAA counsel. Bodman LLP has been hired as special Michigan counsel. Winston & Strawn LLP and Brooks Kushman P.C. have also been tapped as special counsel. Alvarez & Marsal North America, LLC, is the Debtors' restructuring advisors. Ernst & Young LLP is the Debtors' auditors and tax advisors. Kurtzman Carson Consultants LLC is the Debtors' claims and notice agent. Simpson Thacher & Bartlett LLP represents JP Morgan, as admin. agent for senior secured lenders and DIP lenders. As of May 30, 2009, Lear has assets of $1,270,800,000 against debts of $4,536,000,000. Bankruptcy Creditors' Service, Inc., publishes Lear Bankruptcy News. The newsletter tracks the Chapter 11 proceedings undertaken by Lear Corp. (http://bankrupt.com/newsstand/or 215/945-7000) MERUELO MADDUX: Posts $3,084,445 Net Loss for August 2009 --------------------------------------------------------- Meruelo Maddux Properties, Inc., and certain of its direct and indirect subsidiaries and affiliates on September 22, 2009, filed their unaudited condensed combined debtors-in-possession financial statements included in the Monthly Operating Report for the one month ended August 31, 2009, with the United States Bankruptcy Court for the Central District of California, San Fernando Valley Division. The Debtors posted a $3,084,445 net loss for August and ended the month with $16,538,071 in cash. As of August 31, 2009, the Debtor had $539,620,892 in total assets and $313,644,999 in total liabilities. The Debtors posted a $2,638,905 net loss for July and ended the month with $16,965,918 in cash. As of July 31, 2009, the Debtor had $540,354,399 in total assets and $311,449,355 in total liabilities. A full-text copy of the August Monthly Operating Report is available at no charge at http://ResearchArchives.com/t/s?45e9 A full-text copy of the July Monthly Operating Report is available at no charge at http://ResearchArchives.com/t/s?4349 Based in Los Angeles, California, Meruelo Maddux Properties, Inc. -- http://www.meruelomaddux.com/-- together with its affiliates, engage in residential, commercial and industrial development. Meruelo Maddux and its affiliates filed for Chapter 11 protection on March 26, 2009 (Bankr. C.D. Calif. Lead Case No. 09-13356). Aaron De Leest, Esq., John J. Bingham, Jr., Esq., and John N. Tedford, Esq., at Danning Gill Diamond & Kollitz, represent the Debtors in their restructuring efforts. Peter C. Anderson, the United States Trustee for Region 16, appointed five creditors to serve on the Creditors Committee. Asa S. Hami, Esq., Tamar Kouyoumjian, Esq., and Victor A. Sahn, Esq., at SulmeyerKupetz, A Professional Corporation, represent the Creditors Committee as counsel. The Debtors' financial condition as of December 31, 2008, showed estimated assets of $681,769,000 and estimated debts of $342,022,000. MIDWAY GAMES: Reports $37,535,294 Net Income for July 2009 ---------------------------------------------------------- Midway Games Inc. and its debtor-affiliates posted net income of $37,535,294 on net revenues of $3,251,283 for July 2009. The Debtors had $1,336,454,317 in total assets; against $6,602,429 in postpetition liabilities, $1,412,394,464 in prepetition liabilities, $66,486,435 in liabilities due to Debtors, $749,753 due to non-Debtor MGI subsidiaries, $12,793,702 in deferred income taxes and $355,578 in deferred rent; resulting in $162,928,045 in stockholders' deficit. A full-text copy of the Company's monthly report is available at no charge at http://ResearchArchives.com/t/s?45f1 Headquartered in Chicago, Illinois, Midway Games Inc. (OTC Pink Sheets: MWYGQ) -- http://www.midway.com/-- with offices throughout the world, is a leading developer and publisher of interactive entertainment software for major videogame systems and personal computers. The Company and nine of its affiliates filed for Chapter 11 protection on February 12, 2009 (Bankr. D. Del. Lead Case No. 09-10465). Michael D. DeBaecke, Esq., Jason W. Staib, Esq, and Victoria A. Guilfoyle, Esq., at Blank Rome LLP, in Wilmington, Delaware; and Marc E. Richards, Esq., and Pamela E. Flaherty, Esq., at Blank Rome LLP, in New York, represent the Debtors in their restructuring efforts. Attorneys at Milbank, Tweed, Hadley & McCloy LLP and Richards, Layton & Finger, P.A. represent the official committee of unsecured creditors as counsel. Epiq Bankruptcy Solutions, LLC, is the Debtors' claims, noticing, and balloting agent. On July 10, 2009, Midway and certain of its U.S. subsidiaries completed the sale of substantially all of their assets to Warner Bros. Entertainment Inc. in a sale approved by the Court. The aggregate gross purchase price is roughly $49 million, including the assumption of certain liabilities. Midway is disposing of its remaining assets. At June 30, 2009, the Debtors had $1.39 billion in total assets and $1.59 billion in total liabilities. A full-text copy of the Debtors' monthly operating report for the month ended June 30, is available at http://researcharchives.com/t/s?41c1 NEWPOWER HOLDINGS: Files July 2009 Monthly Operating Report ----------------------------------------------------------- NewPower Holdings, Inc., filed its monthly operating report for the period of June 30 to July 31, 2009, with the United States Bankruptcy Court for the Northern District of Georgia, Newnan Division. The Company closed the period with $680 cash. A full-text copy of the July Monthly Operating Report is available at no charge at http://ResearchArchives.com/t/s?461a 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 as counsel. When the Debtors filed for protection from their creditors, they reported $231,837,000 in assets and $87,936,000 in debts. On August 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 October 9, 2003, with respect to the company and TNPC. On February 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. NORTEL NETWORKS: Files August 2009 Monthly Operating Report ----------------------------------------------------------- Nortel Networks Inc., and several other direct and indirect U.S. subsidiaries and affiliates filed on September 28, 2009, their unaudited condensed combined debtors-in-possession financial statements included in the Monthly Operating Report for the period from August 2 to 29, 2009, with the United States Bankruptcy Court for the District of Delaware. Nortel Networks Inc. posted net earnings of $126,000,000 on total revenues of $333,000,000. As of August 29, 2009, Nortel Networks Inc. had $3,269,000,000 in total assets and $7,415,000,000 in total liabilities. A full-text copy of the Monthly Operating Report is available at no charge at http://ResearchArchives.com/t/s?4615 About Nortel Networks Nortel Networks (OTCBB:NRTLQ) -- http://www.nortel.com/-- delivers communications capabilities that make the promise of Business Made Simple a reality for our customers. Our next- generation technologies, for both service provider and enterprise networks, support multimedia and business-critical applications. Nortel's technologies are designed to help eliminate today's barriers to efficiency, speed and performance by simplifying networks and connecting people to the information they need, when they need it. Nortel Networks Corp., Nortel Networks Inc., and other affiliated corporations in Canada sought insolvency protection under the Companies' Creditors Arrangement Act in the Ontario Superior Court of Justice (Commercial List). Ernst & Young has been appointed to serve as monitor and foreign representative of the Canadian Nortel Group. The Monitor also sought recognition of the CCAA Proceedings in the Bankruptcy Court under Chapter 15 of the Bankruptcy Code. Nortel Networks Inc. and 14 affiliates filed separate Chapter 11 petitions on January 14, 2009 (Bankr. D. Del. Case No. 09-10138). Judge Kevin Gross presides over the case. James L. Bromley, Esq., at Cleary Gottlieb Steen & Hamilton, LLP, in New York, serves as general bankruptcy counsel; Derek C. Abbott, Esq., at Morris Nichols Arsht & Tunnell LLP, in Wilmington, serves as Delaware counsel. The Chapter 11 Debtors' other professionals are Lazard Freres & Co. LLC as financial advisors; and Epiq Bankruptcy Solutions LLC as claims and notice agent. The Chapter 15 case is Bankr. D. Del. Case No. 09-10164. Mary Caloway, Esq., and Peter James Duhig, Esq., at Buchanan Ingersoll & Rooney PC, in Wilmington, Delaware, serves as Chapter 15 petitioner's counsel. Certain of Nortel's European subsidiaries have also made consequential filings for creditor protection. The Nortel Companies related in a press release that Nortel Networks UK Limited and certain subsidiaries of the Nortel group incorporated in the EMEA region have each obtained an administration order from the English High Court of Justice under the Insolvency Act 1986. The applications were made by the EMEA Subsidiaries under the provisions of the European Union's Council Regulation (EC) No. 1346/2000 on Insolvency Proceedings and on the basis that each EMEA Subsidiary's centre of main interests is in England. Under the terms of the orders, representatives of Ernst & Young LLP have been appointed as administrators of each of the EMEA Companies and will continue to manage the EMEA Companies and operate their businesses under the jurisdiction of the English Court and in accordance with the applicable provisions of the Insolvency Act. Several entities, particularly, Nortel Government Solutions Incorporated have material operations and are not part of the bankruptcy proceedings. As of September 30, 2008, Nortel Networks Corp. reported consolidated assets of $11.6 billion and consolidated liabilities of $11.8 billion. The Nortel Companies' U.S. businesses are primarily conducted through Nortel Networks Inc., which is the parent of majority of the U.S. Nortel Companies. As of September 30, 2008, NNI had assets of about $9 billion and liabilities of $3.2 billion, which do not include NNI's guarantee of some or all of the Nortel Companies' about $4.2 billion of unsecured public debt. Bankruptcy Creditors' Service, Inc., publishes Nortel Networks Bankruptcy News. The newsletter tracks the Chapter 11 proceeding and ancillary foreign proceedings undertaken by Nortel Networks Corp. and its various affiliates. (http://bankrupt.com/newsstand/ or 215/945-7000) PFF BANCORP: Posts $142,737,423 Net Loss in August 2009 ------------------------------------------------------- PFF Bancorp, Inc., filed with the Bankruptcy Court an amendment to its August 2009 monthly operating report to update certain information provided in the report. PFF Bancorp recorded a net loss of $142,737,423 in August on interest income of $33,315. Effective August 31, 2009, Bancorp's initial investment in PFF Bank & Trust was eliminated. Bancorp reported a net loss of $535,958 in July 2009. Bancorp had $15,965,041 in total assets, including $4,649,053 in bank accounts, against $117,430,056 in total liabilities, resulting in $101,465,014 in total deficit. Bancorp ended the period with $2,949,053 in cash. A full-text copy of the amendment is available at no charge at: http://ResearchArchives.com/t/s?45f0 A full-text copy of the July operating report is available at no charge at http://ResearchArchives.com/t/s?4512 PFF Bancorp Inc. -- http://www.pffbank.com/-- was a non- diversified unitary savings and loan holding company within the meaning of the Home Owners' Loan Act with headquarters formerly located in Rancho Cucamonga, California. Bancorp is the direct parent of each of the remaining Debtors. Prior to filing for bankruptcy, Bancorp was also the direct parent of PFF Bank & Trust, a federally chartered savings institution, and said bank's subsidiaries. PFF Bancorp Inc. and its affiliates sought Chapter 11 protection on December 5, 2008 (Bankr. D. Del. Case No. 08-13127 to 08- 13131). Chun I. Jang, Esq., and Paul N. Heath, Esq., at Richards, Layton & Finger, P.A., represent the Debtors in their restructuring efforts. Kurtzman Carson Consultants LLC serves as the Debtors' claims agent. Jason W. Salib, Esq., at Blank Rome LLP, represents the official committee of unsecured creditors as counsel. REFCO INC: Refco Trustee Has $49 Million Cash at July 31 -------------------------------------------------------- Albert Togut, the Chapter 7 Trustee overseeing the liquidation of Refco, LLC's estate, filed with the U.S. Bankruptcy Court for the Southern District of New York a monthly statement of cash receipts and disbursements for the period from July 1 to 31, 2009. The Chapter 7 Trustee reported that Refco LLC's beginning balance in its Money Market account with JPMorgan Chase Bank, N.A., totaled $48,880,000, as of July 1. During the Reporting Period, Refco LLC received $10,000 in interest income. No transfers were made, Mr. Togut noted. Refco LLC held $49,025,000 at the end of the period. Refco, LLC Schedule of Cash Receipts and Disbursements Through JPMorgan Money Market and Checking Accounts July 1 through 31, 2009 Beginning Balance, July 1, 2009 $48,880,000 RECEIPTS Interest Income 10,000 Sale of Assets 0 Marshalling of Excess Capital 0 Man Financial - Excess Capital return 0 Membership and Clearing Deposits 0 Other Receivables 1,000 ------------- TOTAL RECEIPTS 11,000 TRANSFERS Money Market Account to checking account 0 December 2008 cleared checks 0 ------------- TOTAL TRANSFERS 0 DISBURSEMENTS Operating expenses & other disbursements (134,000) Executory contract cure payments 0 Pursuant to payment stipulation 0 Purchase price escrow deposit 0 Expected account escrow fund 0 Membership & clearing deposits 0 Payment on account of prepetition claims 0 Other disbursements 0 Reorganization Expenses Attorney fees 0 Trustee bond premium 0 Other professional fees 0 ------------- TOTAL DISBURSEMENTS ($134,000) ------------- Ending Balance, July 31, 2009 $49,025,000 ============= 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 October 17, 2005 (Bankr. S.D.N.Y. Case No. 05- 60006). J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represented the Debtors in their restructuring efforts. Milbank, Tweed, Hadley & McCloy LLP, represented 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 December 15, 2006. That Plan became effective on Dec. 26, 2006. Pursuant to the plan, RJM, LLC, was named plan administrator to reorganized Refco, Inc. and its affiliates, and Marc S. Kirschner as plan administrator to Refco Capital Markets, Ltd. Bankruptcy Creditors' Service, Inc., publishes Refco Bankruptcy News. The newsletter tracks the Chapter 11 proceedings undertaken by Refco Inc. and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) REUNION INDUSTRIES: Posts $263,000 Net Loss for June 2009 --------------------------------------------------------- Reunion Industries, Inc., filed with the United States Bankruptcy Court for the District of Connecticut, Bridgeport Division, its Monthly Operating Report for June 2009. Reunion Industries booked net sales of $1,053,000 for June 2009. Reunion Industries posted a net loss of $263,000 for the period. Reunion Industries ended June with $2,144,227 in cash. Reunion Industries had $19,123,000 in total assets and $10,250,000 in total liabilities. A full-text copy of the Monthly Operating Report is available at no charge at http://ResearchArchives.com/t/s?45ed During the second quarter of 2009, the Company acquired 74,900 shares of its common stock in open market transactions. The average cost per share acquired was $0.22. Reunion Industries filed for Chapter 11 protection on November 26, 2007 (Bankr. D. Conn. Case No. 07-50727). Two Reunion Industries stockholders, Charles E. Bradley, Sr. Family Limited Partnership, and John Grier Poole Family Limited Partnership filed separate Chapter 11 petitions on the same day (Bankr. D. Conn. Case Nos. 07-50725 and 07-50726). Carol A. Felicetta, Esq., David M. S. Shaiken, Esq., Eric A. Henzy, Esq., at Reid and Riege, P.C.; and Derek M. Johnson, Esq., at Ruben, Johnson and Morgan, represent Reunion Industries as counsel. As reported in the Troubled Company Reporter on April 11, 2009, as of February 28, 2009, the Debtor had $21,930,000 in total assets, $12,031,000 in total liabilities, and $9,899,000 in total stockholders' equity. SHARPER IMAGE: Ends August 2009 With $6,177,149 Cash ---------------------------------------------------- TSIC, Inc., formerly known as The Sharper Image Corporation, filed its monthly operating report for August 2009. TSIC ended August with $6,177,149 cash. TSIC paid $115,031 in bankruptcy professional fees and reimbursed $32,309 in professionals' expenses. TSIC posted net profit of $362,695 during the period. As of August 31, 2009, TSIC had $10,616,915 in total assets and $101,114,298 in total liabilities. A full-text copy of the Monthly Operating Report is available at no charge at http://ResearchArchives.com/t/s?4617 About The Sharper Image Headquartered in San Francisco, California, Sharper Image Corp. -- http://www.sharperimage.com/-- was a multi-channel specialty retailer. It operated in three principal selling channels: the Sharper Image specialty stores throughout the U.S., the Sharper Image catalog and the Internet. The Company has operations in Australia, Brazil and Mexico. In addition, through its Brand Licensing Division, it was also licensing the Sharper Image brand to select third parties to allow them to sell Sharper Image branded products in other channels of distribution. The Company filed for Chapter 11 protection on February 19, 2008 (Bankr. D.D., Case No. 08-10322). Judge Kevin Gross presides over the case. Harvey R. Miller, Esq., Lori R. Fife, Esq., and Christopher J. Marcus, Esq., at Weil, Gotshal & Manges, LLP, serve as the Debtor's lead counsel. Steven K. Kortanek, Esq., and John H. Strock, Esq., at Womble, Carlyle, Sandridge & Rice, P.L.L.C., serve as the Debtor's local Delaware counsel. An official committee of unsecured creditors has been appointed in the case. Cooley Godward Kronish LLP is the Committee's lead bankruptcy counsel. Whiteford Taylor Preston LLC is the Committee's Delaware counsel. When the Debtor filed for bankruptcy, it listed total assets of $251,500,000 and total debts of $199,000,000. As of June 30, 2008, the Debtor listed $52,962,174 in total assets and $39,302,455 in total debts. Sharper Image sought and obtained the Court's approval to change its name to "TSIC, Inc." in relation to an Asset Purchase Agreement by the Debtor with Gordon Brothers Retail Partners, LLC, GB Brands, LLC, Hilco Merchant Resources, LLC, and Hilco Consumer Capital, LLC. SILICON GRAPHICS: Ends August 2009 With $3,805,523 Cash ------------------------------------------------------- Graphics Properties Holdings, Inc., f/k/a Silicon Graphics, Inc., and certain other debtor-in-possession subsidiaries of the Company have filed unaudited unconsolidated Monthly Operating Reports for the period from August 1 to 31, 2009, with the United States Bankruptcy Court for the Southern District of New York. The Debtors ended the period with $3,805,523 in cash, on $0 cash sales and $0 total receipts, and $972,080 in total disbursements. A full-text copy of the Operating Report is available at no charge at http://ResearchArchives.com/t/s?4613 About Silicon Graphics Headquartered in Sunnyvale, California, Silicon Graphics Inc. -- http://www.sgi.com/-- delivers an array of server, visualization, and storage software. This is the second bankruptcy filing for Silicon Graphics. The Debtors first filed for Chapter 11 on May 8, 2006 (Bankr. S.D.N.Y. Case Nos. 06-10977 through 06-10990). Gary Holtzer, Esq., and Shai Y. Waisman, Esq., at Weil Gotshal & Manges LLP, represent the Debtors in their restructuring efforts. The Court confirmed the Debtors' Plan of Reorganization on September 19, 2006. When the Debtors filed for protection from their creditors, they listed total assets of $369,416,815 and total debts of $664,268,602. The Company and 14 of its affiliates filed for protection for the second time on April 1, 2009 (Bankr. S.D.N.Y. Lead Case No. 09-11701). Mark R. Somerstein, Esq., at Ropes & Gray LLP, represents the Debtors in their restructuring efforts. The Debtors proposed AlixPartners LLC as restructuring advisor; Houlihan Lokey Howard & Zukin Capital, Inc., as financial advisor; and Donlin, Recano & Company, Inc., as claims and noticing agent. When the Debtors filed for protection from their creditors, they listed $390,462,000 in total assets and $526,548,000 in total debts as of 2008. On June 4, 2009, the Company amended its Amended and Restated Certificate of Incorporation pursuant to the Certificate of Amendment of Amended and Restated Certificate of Incorporation of Silicon Graphics, Inc., to change its name to Graphics Properties Holdings, Inc. SMURFIT-STONE: Racks Up $25.6 Million August Profit --------------------------------------------------- Smurfit-Stone Container Corp. generated $25.6 million in net income on sales of $449 million in August. Since inception of the case in January, the cumulative net income is $59.9 million on revenue of $3.32 billion. Over the first eight months, net income was depressed by $104 million in reorganization items. Smurfit-Stone Container Corp. -- http://www.smurfit-stone.com/-- is one of the leading integrated manufacturers of paperboard and paper-based packaging in North America and one of the world's largest paper recyclers. The Company operates 162 manufacturing facilities that are primarily located in the United States and Canada. The Company also owns roughly one million acres of timberland in Canada and operates wood harvesting facilities in Canada and the United States. The Company employs roughly 21,250 employees, 17,400 of which are based in the United States. For the quarterly period ended September 30, 2008, the Company reported roughly $7.450 billion in total assets and $5.582 billion in total liabilities on a consolidated basis. Smurfit-Stone and its U.S. and Canadian subsidiaries filed for Chapter 11 protection on January 26, 2009 (Bankr. D. Del. Lead Case No. 09-10235). Certain of the company's affiliates, including Smurfit-Stone Container Canada Inc., a wholly owned subsidiary of SSCE, and certain of its affiliates, filed to reorganize under the Companies' Creditors Arrangement Act in the Ontario Superior Court of Justice in Canada. Smurfit-Stone joined pulp- and paper-related bankruptcies as rising Internet use hurts magazines and newspapers. Corporacion Durango SAB, Mexico's largest papermaker, sought U.S. bankruptcy in October. Quebecor World Inc., a magazine printer and Pope & Talbot Inc., a pulp-mill operator, also sought cross-border bankruptcies for their operations in the U.S. and Canada. James F. Conlan, Esq., Matthew A. Clemente, Esq., Dennis M. Twomey, Esq., and Bojan Guzina, Esq., at Sidley Austin LLP, in Chicago, Illinois; and Robert S. Brady, Esq., and Edmon L. Morton, Esq., at Young Conaway Stargatt & Taylor in Wilmington, Delaware, serve as the Debtors' bankruptcy counsel. PricewaterhouseCooper LLC, serves as the Debtors' financial and investment consultants. Lazard Freres & Co. LLC acts as the Debtors' investment bankers. Epiq Bankruptcy Solutions LLC acts as the Debtors' notice and claims agent. Bankruptcy Creditors' Service, Inc., publishes Smurfit-Stone Bankruptcy News. The newsletter tracks the Chapter 11 proceeding and ancillary foreign proceedings undertaken by Smurfit-Stone Container Corp. and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) SPANSION INC: Incurs $12.3 Million Loss for Month Ended May 24 -------------------------------------------------------------- Spansion LLC Executive Vice President and Chief Financial Officer Randy Furr filed on Sept. 21, 2009, Spansion LLC's monthly operating report for April 2009. Spansion LLC is the principal operating company of the Debtors. It is the parent company of Spansion International, Inc. and all other foreign Spansion entities. According to Mr. Furr, Spansion LLC has employees, and conducts businesses that generate revenue. It files its own payroll tax returns, and it is included in Spansion Inc.'s federal consolidated and California worldwide unitary tax returns. Mr. Furr further notes that Spansion LLC recognizes the operating results of its wholly owned subsidiaries worldwide based on the equity method of accounting. However, since one of its subsidiaries, Spansion Japan Limited, filed a proceeding under the Corporate Reorganization Law (Kaisha Kosei Ho) of Japan on February 10, 2009, which was formally commenced on March 3, Spansion LLC no longer "controls" SPJ. SPJ's results are no longer consolidated in Spansion Inc.'s consolidated financial results effective March 2009, and have never been reflected in Spansion LLC's monthly Operating Reports. Spansion LLC. Balance Sheet As of May 24, 2009 ASSETS Unrestricted Cash & Cash Equivalents $166,108,185 Restricted Cash & Cash Equivalents 6,793,571 Accounts Receivable (net) 89,637,491 Notes Receivable 0 Inventories 117,983,299 Prepaid Expenses 15,545,589 Professional Retainers 6,163,150 Intercompany Receivables 366,252,061 Other Current Assets 18,016,372 -------------- Total current assets 786,499,718 Property and Equipment 0 Real Property & Improvements 13,078,518 Machinery and Equipment 2,338,055,366 Furniture, fixtures & Office Equipment 0 Leasehold Improvements 741,096,140 Vehicles 0 Less Accumulated Depreciation (2,767,231,082) -------------- Total Property and Equipment 324,998,942 OTHER ASSETS Loans to Insiders 0 Intercompany Investments 203,378,732 Other Assets 172,568,651 -------------- Total Other Assets 375,947,383 -------------- Total Assets $1,487,446,043 ============== LIABILITIES AND OWNER EQUITY Liabilities Not Subject to Compromise (Postpetition) Accounts Payable ($23,648,908) Taxes Payable (3,206,080) Wages Payable (3,111,214) Secured Debt (79,490,441) Accrued Expense (10,308,409) Deferred Income (33,700,120) Intercompany (121,248,863) Other Postpetition Liabilities (395,218) -------------- Total Postpetition Liabilities (275,109,253) Liabilities Subject to Compromise Prepetition Secured Debt (676,082,505) Priority Debt (27,338,785) Unsecured Debt (656,944,507) Intercompany (284,217,984) -------------- Total Prepetition Liabilities (1,644,583,781) -------------- Total Liabilities (1,919,693,034) OWNER EQUITY Intercompany Common Stock (2,289,379,270) Additional Paid-in Capital (124,015,097) Partners' Capital Account 0 Owner's Equity Account 0 Retained Earnings-Prepetition 2,878,310,157 Retained Earnings-Postpetition (32,668,798) -------------- Net Owner Equity 432,246,991 -------------- Total Liabilities and Owner Equity ($1,487,446,043) ============== Spansion LLC Statement of Operations For the From April 27, 2009 To May 24, 2009 REVENUES Gross Revenues $119,557,260 Less: Changes in reserves (282,415) -------------- Net Revenue 119,274,845 Cost of Goods Sold Manufacturing expense 39,753,808 Disty/OEM cost adjustment (2,832,688) Intercompany purchase 37,685,500 Foreign currency gain/loss 1,279,411 Inventory change 30,407,279 -------------- Total Cost of Goods Sold 106,293,310 -------------- Gross Profit 12,981,535 Operating Expenses Building expense 1,785,230 Labor and benefits 7,025,725 Freight 58,489 Marketing and communications 149,093 Material 371,300 Outside Services 3,504,751 Repairs and Maintenance 215,137 Telecom and Software 1,228,680 Travel 226,282 Other 1,327,781 Total Operating Expense Before Depreciation 15,892,466 Depreciation/Depletion/Amortization 2,423,586 -------------- Net Profit (loss) Before Income & Expenses (5,334,518) OTHER INCOME AND EXPENSES Other Expense (Income), net 3,467,485 Interest Expense 1,688,574 Other Expense 0 -------------- Net Profit(loss)Before Reorganization Items (10,490,577) Reorganization Items Professional Fees 1,802,055 Interest Earned on Accumulated Cash From Chapter 11 19,182 -------------- Total Reorganization Items 1,821,237 Income Taxes 10,944 -------------- Net Profit(loss) ($12,322,758) ============== Spansion LLC Schedule of Cash Receipts and Disbursement For the Period From April 27, 2009 to May 24, 2009 Cash Beginning of Month $115,930,597 Receipts Customer Receipts 107,131,122 Intercompany Transfer 5,647,030 Other Receipts 198,536 -------------- Total Receipts 112,976,688 Disbursements Buildings 3,643,420 Foundry & Subcon 4,942,137 Intercompany Disbursements 2,988,210 Labor & Benefits 13,531,094 Material 13,166,598 Other 1,991,003 Outside Services 2,036,451 Repair & Maintenance 1,546,741 Capital Expenditures 151,714 Debt Obligations & Capital Leases 1,552,095 Taxes 85,819 Facility Closure Costs 0 Restructuring Professional Fees 343,217 Intercompany Transfers(debtor entities) 1,085,673 Intercompany Transfers(non-debtor entities) 15,734,928 -------------- Total Disbursements 62,799,100 Net Cash Inflow/(Outflow) 50,177,588 -------------- Cash End of Month $166,108,185 ============== About Spansion Inc. Spansion Inc. (NASDAQ: SPSN) -- http://www.spansion.com/-- is a Flash memory solutions provider, dedicated to enabling, storing and protecting digital content in wireless, automotive, networking and consumer electronics applications. Spansion, previously a joint venture of AMD and Fujitsu, is the largest company in the world dedicated exclusively to designing, developing, manufacturing, marketing, selling and licensing Flash memory solutions. Spansion Inc., Spansion LLC, Spansion Technology LLC, Spansion International, Inc., and Cerium Laboratories LLC filed voluntary petitions for Chapter 11 on March 1, 2009 (Bankr. D. Del. Lead Case No. 09-10690). On February 9, 2009, Spansion's Japanese subsidiary, Spansion Japan Ltd., voluntarily entered into a proceeding under the Corporate Reorganization Law (Kaisha Kosei Ho) of Japan to obtain protection from its creditors as part of the company's restructuring efforts. None of Spansion's subsidiaries in countries other than the United States and Japan are included in the U.S. or Japan filings. Michael S. Lurey, Esq., Gregory O. Lunt, Esq., and Kimberly A. Posin, Esq., at Latham & Watkins LLP, have been tapped as bankruptcy counsel. Michael R. Lastowski, Esq., at Duane Morris LLP, is the Delaware counsel. Epiq Bankruptcy Solutions LLC, is the claims agent. The United States Trustee has appointed an official committee of unsecured creditors in the case. As of September 30, 2008, Spansion disclosed total assets of US$3,840,000,000, and total debts of US$2,398,000,000. Spansion Japan Ltd. filed a Chapter 15 petition on April 30, 2009 (Bankr. D. Del. Case No. 09-11480). The Chapter 15 Petitioner's counsel is Gregory Alan Taylor, Esq., at Ashby & Geddes. It said that Spansion Japan had US$10 million to US$50 million in assets and US$50 million to US$100 million in debts. Bankruptcy Creditors' Service, Inc., publishes Spansion Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Spansion Inc. and its affiliates (http://bankrupt.com/newsstand/or 215/945-7000) THORNBURG MORTGAGE: Files August 2009 Operating Report ------------------------------------------------------ TMST, Inc., formerly known as Thornburg Mortgage, Inc., on September 29, 2009, filed on behalf of the Debtors, except for ADFITECH Inc., an amended report covering the period from August 1 to 31, 2009. On September 23, 2009, ADFITECH filed a report covering the period from August 1 through 31, 2009. TMST et al. ended August with $24,039,629 cash. TMST et al. posted a net loss of $401,493 for the month. At August 31, 2009, TMST et al. had $157,354,907 in total assets and $3,468,754,806 in total liabilities. A full-text copy of the Amended Monthly Operating Report of TMST, Inc., and certain subsidiaries, for the period August 1 through and including August 31, 2009, is available at no charge at: http://ResearchArchives.com/t/s?461c ADFITECH ended August with $10,077,933 cash. ADFITECH posted a net loss of $855,791 for the month. At August 31, 2009, ADFITECH had $30,017,132 in total assets and $1,639,690,112 in total liabilities. A full-text copy of the Monthly Operating Report of ADFITECH, Inc. for the period August 1 through and including August 31, 2009, is available at no charge at http://ResearchArchives.com/t/s?461d About Thornburg Mortgage Based in Santa Fe, New Mexico, Thornburg Mortgage Inc. (NYSE: TMA) -- http://www.thornburgmortgage.com/-- is a single-family residential mortgage lender focused principally on prime and super-prime borrowers seeking jumbo and super-jumbo adjustable rate mortgages. It originates, acquires, and retains investments in adjustable and variable rate mortgage assets. Its ARM assets comprise of purchased ARM assets and ARM loans, including traditional ARM assets and hybrid ARM assets. Thornburg Mortgage, Inc., and its four affiliates filed for Chapter 11 on May 1 (Bankr. D. Md. Lead Case No. 09-17787). Judge Duncan W. Keir is handling the case. David E. Rice, Esq., at Venable LLP, in Baltimore, Maryland, has been tapped as counsel. Orrick, Herrington & Sutcliffe LLP is employed as special counsel. Jim Murray, and David Hilty, at Houlihan Lokey Howard & Zukin Capital, Inc., have been tapped as investment banker and financial advisor. Protiviti Inc. has also been engaged for financial advisory services. KPMG LLP is the tax consultant. Epiq Systems, Inc., is claims and noticing agent. In its bankruptcy petition, Thornburg listed total assets of $24,400,000,000 and total debts of $24,700,000,000, as of January 31, 2009. TOUSA INC: Incurs $19.4 Million Net Loss for August --------------------------------------------------- TOUSA, INC., and Subsidiaries Consolidated Balance Sheet As of August 31, 2009 ASSETS Cash and Cash Equivalents: Cash in bank $300,520,707 Cash equivalents (due from title company from closings) 5,537,365 Inventory: Deposits 11,262,492 Land 139,547,639 Residences completed and under construction 127,451,214 Inventory not owned 6,286,449 --------------- 284,547,794 Property and equipment, net 5,276,627 Investments in unconsolidated joint ventures 2,781,462 Receivables from unconsolidated joint ventures - Accounts receivable 17,432,568 Other assets 40,069,856 Goodwill - --------------- 656,166,379 Net Assets of Financial Services 17,808,985 --------------- Total Assets $673,975,364 =============== LIABILITIES & STOCKHOLDERS' EQUITY Accounts payable and other liabilities $304,953,405 Customer deposits 5,239,781 Obligations for inventory not owned 8,346,605 Notes payable 1,609,795,912 Bank borrowings 201,090,078 --------------- Total Liabilities 2,129,425,781 Stockholders' Equity: Preferred stock 21,413,076 Common stock 596,042 Additional paid in capital 556,628,484 Retained earnings (2,034,088,019) --------------- Total Stockholders' Equity (1,455,450,417) --------------- Total liabilities and Stockholders' Equity $673,975,364 =============== TOUSA, INC., and Subsidiaries Consolidated Statement of Operations For the Period August 1 to 31, 2009 Revenues: Home sales $31,905,145 Land sales 2,306,891 --------------- 34,212,036 Cost of Sales: Home sales 29,286,821 Land sales 2,192,717 --------------- 31,479,538 --------------- Gross Profit 2,732,498 Total selling, general and admin expenses 15,999,661 Income (loss) from joint ventures, net - Interest expense, net 5,845,340 Other (income) expense, net 109,249 --------------- Homebuilding pretax income (loss) (19,221,752) Equity in Financial services pretax income (loss) (190,800) Income (loss) before income taxes (19,412,552) Provision (benefit) for income taxes - --------------- Net Income (loss) ($19,412,552) =============== TOUSA, INC. and Subsidiaries Consolidated Schedule of Receipts and Disbursements For the Period August 1 to 31, 2009 Funds at beginning of period $282,849,729 RECEIPTS Cash sales 35,263,503 Accounts receivable 2,630,327 Other receipts 7,335,966 --------------- Total receipts 45,229,796 --------------- Total funds available for operations 328,079,525 DISBURSEMENTS Advertising 126,176 Bank charges 866 Contract labor 63,704 Fixed asset payments - Insurance 453,981 Inventory payments 4,727,168 Leases 147,177 Manufacturing supplies - Office supplies 36,556 Payroll - net 3,349,189 Professional fees (accounting and legal) 12,130,247 Rent 732,968 Repairs & maintenance 274,189 Secured creditor payments 4,349,457 Taxes paid - payroll 71,707 Taxes paid - sales & use 198,738 Taxes paid - other 60,418 Telephone 151,153 Travel & entertainment 18,115 U.S. Trustee quarterly fees - Utilities 84,397 Vehicle expenses 11,891 Other operating expenses 570,721 --------------- Total disbursements 27,558,818 --------------- Ending Balance $300,520,707 =============== About Tousa Inc. Headquartered in Hollywood, Florida, TOUSA Inc. (Pink Sheets: TOUS) -- http://www.tousa.com/-- fka Technical Olympic U.S.A. Inc., dba Technical U.S.A., Inc., Engle Homes, Newmark Homes L.P., TOUSA Homes Inc. and Newmark Homes Corp. is a leading homebuilder in the United States, operating in various metropolitan markets in 10 states located in four major geographic regions: Florida, the Mid-Atlantic, Texas, and the West. The Debtor and its debtor-affiliates filed for separate Chapter 11 protection on January 29, 2008 (Bankr. S.D. Fla. Case No. 08- 10928). The Debtors have selected M. Natasha Labovitz, Esq., Brian S. Lennon, Esq., Richard M. Cieri, Esq., and Paul M. Basta, Esq., at Kirkland & Ellis LLP; and Paul Steven Singerman, Esq., at Berger Singerman, to represent them in their restructuring efforts. Lazard Freres & Co. LLC is the Debtors' investment banker. Ernst & Young LLP is the Debtors' independent auditor and tax services provider. Kurtzman Carson Consultants LLC acts as the Debtors' Notice, Claims & Balloting Agent. TOUSA's direct subsidiary, Beacon Hill at Mountain's Edge LLC dba Eagle Homes, filed for Chapter 11 Protection on July 30, 2008 (Bankr. S.D. Fla. Case No. 08-20746). It listed assets between $1 million and $10 million, and debts between $1 million and $10 million. The Official Committee of Unsecured Creditors hired Patricia A. Redmond, Esq., and the law firm Stearns Weaver Weissler Alhadeff & Sitterson, P.A., as its local counsel. TOUSA Inc.'s balance sheet at June 30, 2008, showed total assets of $1,734,422,756 and total liabilities of $2,300,053,979. Bankruptcy Creditors' Service, Inc., publishes TOUSA Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by TOUSA Inc. and its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) TVI CORP: Posts $666,030 Net Loss for August 2009 ------------------------------------------------- TVI Corporation and its wholly owned subsidiaries on September 21, 2009, filed with the Bankruptcy Court their unaudited monthly operating reports for the period August 1 to 31, 2009. The Debtors posted a net loss of $666,030 for the month ended August 31, 2009. The Debtors had total assets of $21,162,764 and total liabilities of $41,121,780, resulting in stockholders' deficit of $19,959,016. A full-text copy of TVI Corp.'s Monthly Operating Report is available at no charge at http://ResearchArchives.com/t/s?45ec About TVI Corporation Headquartered in Glenn Dale, Maryland, TVI Corporation -- http://www.tvicorp.com/-- supplies military and civilian emergency first responder and first receiver products, personal protection products and quick-erect shelter systems. The products include powered air-purifying respirators, respiratory filters and quick-erect shelter systems used for decontamination, hospital surge systems and command and control. The users of these products include military and homeland defense/homeland security customers. The Company and two of its affiliates filed for Chapter 11 protection on April 1, 2009 (Bankr. D. Md. Lead Case No. 09-15677). Christopher William Mahoney, Esq., Jeffrey W. Spear, Esq., and Joel M. Walker, Esq., at Duane Morris LLP, represent the Debtors in their restructuring efforts. Alan M. Grochal, Esq., and Maria Ellena Chavez-Ruark, Esq., at Tydings and Rosenberg, serve as counsel to the official committee of unsecured creditors. When the Debtor filed for protection from its creditors, it listed $10 million to $50 million in assets and $1 million to $10 million in debts. The Debtors on August 31, 2009, filed their Plan of Reorganization pursuant to Chapter 11 of the Bankruptcy Code, which sets forth the manner in which claims against and equity interests in the Debtors are to be treated. The Plan contemplates, among other things: (i) the sale of Signature Special Event Services, Inc. as a going concern or the sale of substantially all of Signature's assets; (ii) the merger of all subsidiaries into the Company, which shall emerge as the reorganized debtor; and (iii) the payment in cash to holders of (a) allowed administrative claims, (b) allowed priority tax claims, (c) allowed priority non-tax claims, (d) other allowed secured claims, and (e) allowed general unsecured claims. The Plan further contemplates distribution of shares representing an aggregate of 100% of the issued equity interests in the Company to the Branch Banking & Trust Company on account of the Lender's secured claim. The Plan provides for the extinguishment of all intercompany claims. TXCO RESOURCES: Posts $5,275,433 Net Loss for July 2009 ------------------------------------------------------- TXCO Resources Inc. and its subsidiaries filed an unaudited consolidated Monthly Operating Report for the period ended July 31, 2009, with the United States Bankruptcy Court for the Western District of Texas. The Debtors posted a net loss of $5,275,433 for the period on revenues of $4,121,724. At July 31, 2009, the Debtors had $397,359,698 in total assets and $348,880,170 in total liabilities. The Debtor paid $761,357 to bankruptcy professionals in July, consisting of $157,289 to Cox & Smith; $395,333 to Fulbright & Jaworski; $208,734 to FTI Consulting Inc. A full-text copy of the Monthly Operating Report is available at no charge at http://ResearchArchives.com/t/s?43fb About TXCO Resources TXCO Resources Inc. is an independent oil and gas enterprise with interests in the Maverick Basin, the onshore Gulf Coast region and the Marfa Basin of Texas, and the Midcontinent region of western Oklahoma. TXCO's business strategy is to acquire undeveloped mineral interests and internally developing a multi-year drilling inventory through the use of advanced technologies, such as 3-D seismic and horizontal drilling. It accounts for its oil and gas operations under the successful efforts method of accounting and trades its common stock on Nasdaq's Global Select Market under the symbol "TXCO." The Company and its affiliates filed for Chapter 11 protection on May 17, 2009 (Bankr. W.D. Tex. Case No. 09-51807). The Debtors hired Deborah D. Williamson, Esq., and Lindsey D. Graham, Esq., at Cox Smith Matthews Incorporated, as general restructuring counsel; Fulbright and Jaworski, L.L.P., as corporate counsel & conflicts counsel; Albert S. Conly as chief restructuring officer and FTI Consulting Inc. as financial advisor; Goldman, Sachs & Co. as financial advisor for assets sale; Global Hunter Securities, LLC, as financial advisors and investment bankers; and Administar Services Group LLC as claims agent. Gardere Wynne Sewell LLP represents the Committee. As reported in Troubled Company Reporter on July 6, 2009, in their schedules of assets and liabilities, the Debtors have $357,855,952 in total assets and $331,422,792 in total liabilities. VERASUN ENERGY: Files August 2009 Monthly Operating Report ---------------------------------------------------------- VeraSun Energy Corporation and certain of its subsidiaries on September 30, 2009, filed an unaudited consolidated Monthly Operating Report for the month ended August 31, 2009, with the United States Bankruptcy Court for the District of Delaware. VeraSun Energy posted a net loss of $792,000 for the period. At August 31, 2009, VeraSun Energy had $77,856,000 in total assets and $338,572,000 in total liabilities. The Debtors disclosed $3,287,000 in cash receipts and $16,191,000 in total disbursements. August disbursements for the VeraSun Energy Corporation entity reflect payment of $12,500,000 to AgStar Financial Services, PCA, in full satisfaction and settlement of the AgStar Litigation. On December 23, 2008, AgStar filed a complaint against certain debtors (Adv. No. 08-51897) claiming that certain liens AgStar had on ethanol produced by the USBio Debtors were not released when the USBio Debtors transferred that ethanol to VeraSun Marketing, LLC. The parties settled the AgStar Litigation pursuant to a settlement agreement approved by the Bankruptcy Court on August 10, 2009. The amount was applied in payment of intercompany administrative claims owed to certain US BioEnergy debtors by VeraSun Marketing as allowed under the Bankruptcy Court's Order Approving Debtors' Motion for Allowance of Certain Intercompany Administrative Expense Claims. The Debtors paid $656,000 to bankruptcy professionals in August and $22,355,000 since filing for bankruptcy. Amount Paid Total Paid Professional During Month to Date ------------ ------------ ---------- Akin Gump Strauss Hauer & Feld $75,000 $2,091,000 AP Services, LLP 180,000 7,020,000 Deloitte & Touche, LLP -- 233,000 Deloitte Tax, LLP -- 704,000 Greenberg Traurig, LLP -- 62,000 Houlihan, Lokey, Howard and Zukin 401,000 1,649,000 McGladrey & Pullen, LLP -- 1,001,000 Rothschild, Inc. -- 538,000 Skadden, Arps, Slate, Meagher, & Flom -- 9,057,000 The Debtors received a Delinquency Notice from the Office of the U.S. Trustee that was processed on August 6, 2009. The Notice stated that US BioEnergy Corporation owed an estimated balance of $5,850.16. However the Debtors -- upon additional review and analysis, including discussions with officials from the Trustee's office -- have concluded that they overstated the "disbursements" on their June monthly operating report for purposes of calculating the quarterly fees due to the Trustee. The Debtors included in the disbursements certain accounts receivable funds that were collected and then distributed, pursuant to an asset purchase agreement, to the entity that recently purchased substantially all of US BioEnergy Corporation's assets. The distribution of those funds was erroneously included as a disbursement, which, in turn, led to an inflated calculation of the Debtors' quarterly fee due to the Trustee. The Debtors are working with the Trustee to correct this error. Once it is corrected, the Debtors do not believe that they will owe any balance to the Trustee. A full-text copy of the Monthly Operating Report is available at no charge at http://ResearchArchives.com/t/s?4614 About VeraSun Energy Headquartered in Sioux Falls, South Dakota, VeraSun Energy Corp. -- http://www.verasun.comor http://www.VE85.com/-- produces and markets ethanol and distillers grains. Founded in 2001, the company has a fleet of 16 production facilities in eight states, with 14 in operation. The Company and its debtor-affiliates filed for Chapter 11 protection on October 31, 2008 (Bankr. D. Del. Case No. 08-12606). Mark S. Chehi, Esq., at Skadden Arps Slate Meagher & Flom LLP represents the Debtors in their restructuring efforts. AlixPartners LLP serves as their restructuring advisor. Rothschild Inc. is their investment banker and Sitrick & Company is their communication agent. The Debtors' claims noticing and balloting agent is Kurtzman Carson Consultants LLC. The Debtors' total assets as of June 30, 2008, was $3,452,985,000 and their total debts as of June 30, 2008, was $1,913,214,000. VeraSun closed on April 1, 2009, the sale of substantially all of its assets to Valero Renewable Fuels, a subsidiary of Valero Energy Corporation, North America's largest petroleum refiner and marketer. The purchased assets included five ethanol production facilities and a development site. The facilities are located in Aurora, South Dakota; Fort Dodge, Charles City, and Hartley, Iowa; and Welcome, Minnesota, and the development site is in Reynolds, Indiana. Valero paid $350 million for the ethanol production facilities in Aurora, Fort Dodge, Charles City, Hartley and Welcome, in addition to the Reynolds site. Valero also successfully bid $72 million for the Albert City facility and $55 million for the Albion facility. The purchase price also includes working capital and other certain adjustments. VeraSun also completed on April 9 the sale to AgStar Financial Services PCA of substantially all of the assets relating to the company's production facilities in Dyersville, Iowa; Hankinson, North Dakota; Janesville, Minnesota; Central City and Ord, Nebraska; and Woodbury, Michigan. AgStar released the USBE Subsidiaries from their obligations under $319 million of existing indebtedness and assumed certain liabilities relating to the AgStar Facilities. On April 13, US BioEnergy Corporation and US Bio Marion LLC completed the sale to Marion Energy Investments LLC, as assignee of Dougherty and First Bank & Trust, of substantially all of the assets relating to the Debtors' production facility in Marion, South Dakota. The consideration for the acquired assets consisted of release of US Bio Marion from its obligations under approximately $93 million of existing indebtedness to the Marion Buyers, payment by MEI of $934,861 in cash and assumption by the Marion Purchasers of certain liabilities relating to the Marion facility. VeraSun Bankruptcy News; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). VINEYARD NATIONAL: Ends August 2009 with $1,932,549 Cash -------------------------------------------------------- Vineyard National Bancorp filed its unaudited report for the month of August 2009 with the Office of the United States Trustee. The Debtor ended the period with $1,932,549 cash. The Debtor recorded a net loss of $246,999 for the month. As of August 31, 2009, the Debtor had $2,291,245 in total assets and $181,523,784 in total liabilities. A full-text copy of the Report is available at no charge at: http://ResearchArchives.com/t/s?4619 About Vineyard National Bancorp Vineyard National Bancorp (NASDAQ: VNBC) (AMEX: VXC.PR.D) -- http://www.vineyardbank.com-- was the financial holding company, which provides a variety of lending and depository services to businesses and individuals through its wholly owned subsidiary, Vineyard Bank, National Association. Vineyard Bank was closed July 17 by regulators, which appointed the Federal Deposit Insurance Corporation as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with California Bank & Trust, San Diego, California, to assume all of the deposits of Vineyard Bank, N.A., excluding those from brokers. As of March 31, 2009, Vineyard Bank, N.A. had total assets of $1.9 billion and total deposits of approximately $1.6 billion. In addition to assuming all of the deposits of the failed bank, California Bank & Trust agreed to purchase approximately $1.8 billion of assets. The FDIC will retain the remaining assets for later disposition. California Bank & Trust purchased all deposits, except about $134 million in brokered deposits, held by Vineyard Bank, N.A. Vineyard National Bancorp filed for Chapter 11 on June 21 (Bankr. C.D. Calif. Case No. 09-26401). ********* 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. The Sunday TCR delivers securitization rating news from the week then-ending. 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. Danilo Munnoz, Joseph Medel C. Martirez, Denise Marie Varquez, Philline Reluya, Ronald C. Sy, Joel Anthony G. Lopez, Cecil R. Villacampa, Sheryl Joy P. Olano, Carlo Fernandez, Christopher G. Patalinghug, and Peter A. Chapman, Editors. Copyright 2009. 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 ***