/raid1/www/Hosts/bankrupt/TCR_Public/100111.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Monday, January 11, 2010, Vol. 14, No. 10
Headlines
10822 N. SCOTTSDALE: Voluntary Chapter 11 Case Summary
ACTGG PARTNERSHIP: Case Summary & 11 Largest Unsecured Creditors
ADFITECH: Can Solicit Votes for Reorganization Plan
A-JVP1 LLC: Files Schedules of Assets & Liabilities
A-JVP1 LLC: Sec. 341 Creditors Meeting Set for Feb. 4
A-JVP1 LLC: Submits Plan of Reorganization
A-SWDE1 LLC: Files Schedules of Assets & Liabilities
A-SWDE1 LLC: Sec. 341 Creditors Meeting Set for Jan. 28
A-SWDE1 LLC: Files Reorganization Plan
ALASKA COMMS: Bank Debt Trades at 4% Off in Secondary Market
AMC ENTERTAINMENT: Bank Debt Trades at 4% Off in Secondary Market
AMERICAN NATURAL ENERGY: Gets Bayou Couba Field Working Interests
AMR CORP: Japan Airlines Prefers Business Tie-Up, Not Merger
ARAMARK CORP: Bank Debt Trades at 4% Off in Secondary Market
ARCH ALUMINUM: Challenges Oldcastle's Participation in Sale
ARTURO GONZALEZ-PEREZ: Case Summary & 6 Largest Unsec. Creditors
ASPEN INVESTMENT: Court Dismisses Chapter 11 Reorganization Case
AVENTINE RENEWABLE: Court Moves Plan Filing Deadline to March 4
AVIZA TECHNOLOGY: Plan Provides for Consolidation of Assets
BENTLEY ENERGY: Case Summary & 20Largest Unsecured Creditors
BH S&B HOLDINGS: Committee Loses Veil Piercing Argument
BIG WASH: Files Schedules of Assets and Liabilities
BIO-KEY INT'L: CEO DePasquale Sends Letter to Shareholders
BIO-RAD LABORATORIES: Moody's Raises Corp. Family Rating to 'Ba1'
BIRKEL CUSTER: Voluntary Chapter 11 Case Summary
BLUE HERON: Terminates 50 Employees Following Filing
BRIAN SEPPALA: Case Summary & 20 Largest Unsecured Creditors
BRUCE NEVIASER: Voluntary Chapter 11 Case Summary
CALIFORNIA COASTAL: Files Schedules of Assets and Liabilities
CANLAND ENTERPRISES: Voluntary Chapter 11 Case Summary
CANWEST GLOBAL: Receives CCAA Protection for LP Units
CANWEST GLOBAL: LP Entities Have Restructuring Plan
CARLO APPUGLIESE: Case Summary & 20 Largest Unsecured Creditors
CBD DEVELOPMENT: Case Summary & 1 Largest Unsecured Creditor
CELLU TISSUE: Moody's Upgrades Corporate Family Rating to 'B1'
CHAMPION ENTERPRISES: U.S. Trustee Picks 5-Member Creditors Panel
CHANA TAUB: Divorce Proceedings to Continue in State Court
CHERRY TREE CORP: Case Summary & 6 Largest Unsecured Creditors
CHUGH SHOPPING: Files Schedules of Assets and Liabilities
CITRUS 278: Files Schedules of Assets and Liabilities
CLAIRE'S STORES: Bank Debt Trades at 17% Off in Secondary Market
CLARENCE BUNTING: Case Summary & 12 Largest Unsecured Creditors
CLARIENT INC: Gemino Healthcare Consents Applied Genomics Deal
CMR MORTGAGE: Court to Consider Plan Outline on January 29
COHARIE HOG: Files Schedules of Assets and Liabilities
COLONIAL BANCORP: Judge Won't Extend Automatic Stay
COMMERCIAL CAPITAL: James Markus Appointed as Chapter 11 Trustee
COOPER-STANDARD: FTI's Monthly Fees Hiked to $250,000
COOPER-STANDARD: Inks Confidentiality Agreement With Noteholder
COOPER-STANDARD: Liquidity Solutions Buys Claims
CORD BLOOD AMERICA: CEO Schissler, COO Vicente Receive Options
COTTAGE VILLAGE: Case Summary & Unsecured Creditor
COUNTRYWIDE FINANCIAL: Wilmer Cutler Withdraws as Mozilo Counsel
CROWN CASTLE: Moody's Assigns 'Ba2' Rating on $400 Mil. Loan
DAMOPA INVESTMENTS LLC: Case Summary & 12 Largest Unsec. Creditors
DBSD NORTH: Accuses Sprint of Trying to Derail Ch. 11 Plan
DEAN FOODS: Bank Debt Trades at 3% Off in Secondary Market
DEL MONTE: Moody's Raises Corp. Family Rating to 'Ba2'
DELPHI CORP: Gets $89.3MM Federal Grant, Adds Jobs In Kokomo
DELPHI CORP: Retiree Committee Wants to Expand VEBA Benefit
DELPHI CORP: Unions Disagree With Claim Disallowance
DESIGNER EQUITY HOLDING: Case Summary & 1 Largest Unsec. Creditors
DOUGLAS BUNTING: Case Summary & 13 Largest Unsecured Creditors
DOYLESTOWN PARTNERS: Case Summary & 2 Largest Unsecured Creditors
DRESSER INC: Dividend Payment Won't Affect Moody's 'B2' Rating
E & J OF HUNTERSVILLE: Case Summary & 3 Largest Unsec. Creditors
EAST BISSONETT: Voluntary Chapter 11 Case Summary
EDWARD JOSEPH GILLIS: Case Summary & 10 Largest Unsec. Creditors
EMERICH GIANNOTTI: Voluntary Chapter 11 Case Summary
ENERGY FUTURE: Fitch Assigns 'B+' Rating on $500 Mil. Notes
ENTERTAINMENT TECHNOLOGIES: Voluntary Chapter 11 Case Summary
ERICKSON RETIREMENT: Fine Tunes Joint Plan of Reorganization
ERICKSON RETIREMENT: Identifies Funding for Insurance Programs
ERICKSON RETIREMENT: Various Parties Object to Examiner
EVERYDAY LOGISTICS: Case Summary & 20 Largest Unsecured Creditors
EXPRESS ENERGY: S&P Withdraws 'D' Corporate Credit Rating
FAIRVUE CLUB: Files Schedules of Assets and Liabilities
FIRST REPUBLIC: Creditors Fail to Show Irreparable Injury
FIRSTFED FINANCIAL: Chapter 11 Petition Filed
FIRSTFED FINANCIAL: Case Summary & 16 Largest Unsecured Creditors
FORUM HEALTH: January 11 Deadline Put Off But No New Date
FOXLAND HARBOR MARINA: Voluntary Chapter 11 Case Summary
FULL OF FAITH MINISTRIES: Voluntary Chapter 11 Case Summary
GATEWAY CASINOS: S&P Downgrades Corporate Credit Rating to 'D'
GENMAR HOLDINGS: All Assets Sold in Bankruptcy Auction
GLOBAL DEMOLITION: Case Summary & 20 Largest Unsecured Creditors
GMI FINANCIAL: Voluntary Chapter 11 Case Summary
GREEKTOWN HOLDINGS: Gets Nod for $210MM Loans from Jefferies
GREEKTOWN HOLDINGS: Gets Nod to Lease to BAC Greektown
GREEKTOWN HOLDINGS: Parties Respond to Noteholder Plan
GREGORY ALLEN MELLINGER: Case Summary & 8 Largest Unsec. Creditors
HARRAH'S OPERATING: Bank Debt Trades at 101.77%
HAWKER BEECHCRAFT: Bank Debt Trades at 23.5% Off
HC INNOVATIONS: Acquires HM Strategies in Merger Deal
HEALTH MANAGEMENT: Bank Debt Trades at 5% Off in Secondary Market
HERTZ CORP: Bank Debt Trades at 4% Off in Secondary Market
HLI OPERATING: Moody's Assigns Corporate Family Rating at 'B3'
HOLDINGS GAMING: Moody's Downgrades Corp. Family Rating to 'Caa2'
HORIZON BANK: Closed by Regulators; FDIC Named Receiver
IMAX CORPORATION: Moody's Withdraws 'Caa1' Default Rating
INFINITO GOLD: Receives Default Waivers Until February 17
INT'L ALUMINUM: Gets First Day Orders; Lenders Warn Wipe Out
IOWA RENEWABLE: McGladrey Pullen Raises Going Concern Doubt
JACK RICOTTA: Voluntary Chapter 11 Case Summary
JAMES MCCLUNG: Case Summary & 20 Largest Unsecured Creditors
JAVED AKHTER: Case Summary & 16 Largest Unsecured Creditors
JAY DAVEY: Case Summary & 20 Largest Unsecured Creditors
JO-ANN STORES: S&P Puts 'B+' Rating on CreditWatch Positive
JOHN RIDGWAY: Case Summary & 14 Largest Unsecured Creditors
KAR AUCTION: S&P Raises Corporate Credit Rating to 'B'
KENDALL BROOK: Case Summary & 6 Largest Unsecured Creditors
KERN CENTRAL CREDIT: Regulator Shutters Biz on Inadequate Capital
KIRBY AVENUE: Case Summary & 19 Largest Unsecured Creditors
KIRK PHARMECEUTICALS: Case Summary & 12 Largest Unsec. Creditors
KRISHNA BHAVNA RK: Voluntary Chapter 11 Case Summary
LANDING AT REID'S RANCH: Voluntary Chapter 11 Case Summary
LAS VEGAS SANDS: Bank Debt Trades at 10% Off in Secondary Market
LAUREATE EDUCATION: Bank Debt Trades at 9% Off in Secondary Market
LEHMAN BROTHERS: Creditors Balk at Lehman's Proposed Guidelines
LINKSIDE PARK: Voluntary Chapter 11 Case Summary
LUNA INNOVATIONS: Extends Dev't Deal With Intuitive Surgical
LYONDELL CHEMICAL: Gets Nod for Five Consensual Pacts
LYONDELL CHEMICAL: Has Protocol to Reject Pre-Bankruptcy Deals
LYONDELL CHEMICAL: Plan Exclusivity Extended to Jan. 19
LYTHGOE PROPERTIES: Asks Court OK to Use Cash Collateral
LYTHGOE PROPERTIES: Court Extends Schedules Filing Until Jan. 25
LYTHGOE PROPERTIES: Sec. 341 Creditors Meeting Set for Feb. 1
MACC PRIVATE: KPMG LLP Raises Going Concern Doubt
MARICOPA INDUSTRIAL: Moody's Puts 'B1' Rating on Watchlist
MARGAUX INVESTORS: Case Summary & Unsecured Creditor
MARK PANISSIDI: Voluntary Chapter 11 Case Summary
MARQUETTE TRANSPORTATION: Moody's Assigns 'B2' Corp. Family Rating
MAUREEN DUNKEL: Case Summary & 11 Largest Unsecured Creditors
MESA AIR: Has Interim Nod to Pay Employee Wages
MESA AIR: Proposes to Abandon Excess Owned Equipment
MESA AIR: Receives Court Approval of First Day Motions
MESA AIR: To Honor Industry-Related Agreements
METALDYNE CORP: PBGC, Landlord Object to Consolidation
METRO-GOLDWYN-MAYER: Bank Debt Trades at 34% Off
MID-STATES EXPRESS: PBGC Assumes 3 Underfunded Pension Plans
MMFX INTERNATIONAL: Files Voluntary Relief Under Chapter 11
MOHAMMAD KHAN: Case Summary & 20 Largest Unsec. Creditors
NEENAH FOUNDRY: Inks Extension of Forbearance Pact With BofA
NEILS JENSEN: Sec. 341 Creditors Meeting Set for Feb. 11
NEIMAN MARCUS: Bank Debt Trades at 7% Off in Secondary Market
NELSON GUERRA: Case Summary & 20 Largest Unsecured Creditors
NEWCOURT INC: Case Summary & 20 Largest Unsecured Creditors
NEW HAVEN HEALTH: Case Summary & 20 Largest Unsecured Creditors
NIELSEN COMPANY: Bank Debt Trades at 4% Off in Secondary Market
NILES JENSEN: Taps Albert & Tweet as Bankruptcy Counsel
NORTEL NETWORKS: Auction for VOIP Business on Feb. 25
NORTEL NETWORKS: Ex-Officer Seeks $1-Bil. Suit Protection
NORTEL NETWORKS: Wants Plan Exclusivity Until July 13
NOVELIS INC: Bank Debt Trades at 7% Off in Secondary Market
OCEANS CASINOS: Nevada Gold Pursues Purchase of SunCruz Assets
OM KB LLC: Voluntary Chapter 11 Case Summary
OPUS EAST: Trustee Wants More Time to Decide on Leases
OPUS SOUTH: Two Debtors Want Case Converted to Chapter 7
OPUS SOUTH: Waters Edge Lenders' Plan Sent for Voting
OPUS WEST: Wants Plan Hearing Adjourned to Jan. 27
OSI RESTAURANT: Bank Debt Trades at 15% Off in Secondary Market
PAETEC HOLDING: Moody's Assigns 'B1' Rating on $275 Mil. Notes
PAETEC HOLDING: S&P Affirms 'B' Rating on $275 Mil. Senior Notes
PALMA CEIA: Voluntary Chapter 11 Case Summary
PARROTT BROADCASTING: Case Summary & 20 Largest Unsec. Creditors
PENN TRAFFIC: Seeks to Sell Assets to Tops Markets
PERF-GO GREEN: September 30 Balance Sheet Upside-Down by $7.7 MM
PHELPS HARMON: Voluntary Chapter 11 Case Summary
PHILADELPHIA NEWSPAPERS: Lenders Fight to Keep Delivery Contracts
PINNACLE FOODS: Bank Debt Trades at 5% Off in Secondary Market
PLY GEM: Moody's Upgrades Corporate Family Rating to 'Caa1'
PREFERRED VOICE: Management Sees Looming Liquidity Crunch
PRIVE VEGAS: Agency Extends Liquor License Until April 9
PRM REALTY GROUP: Voluntary Chapter 11 Case Summary
QHB HOLDINGS: Files Schedules of Assets and Liabilities
QWEST COMMUNICATIONS: Fitch Puts 'BB+' Rating on $500 Mil. Notes
QWEST COMMUNICATIONS: Moody's Puts 'Ba3' Rating on $500 Mil. Notes
QWEST COMMUNICATIONS: S&P Assigns 'B+' Rating on $500 Mil. Notes
RANDALL DAVIS: Voluntary Chapter 11 Case Summary
RAYMOND PROFESSIONAL: Lawyers' Letters Complied with Rule 9011
READER'S DIGEST: Further Expands Ernst & Young Work
READER'S DIGEST: Panel Has Nod to Retain Industry Expert
READER'S DIGEST: Wants Cushman & Wakefield as Real Estate Broker
RED ROCKET: $270,000 DIP Financing Gets Final Approval
REEF SWD 2007-A: Voluntary Chapter 11 Case Summary
REGENT BROADCASTING: Moody's Downgrades Default Rating to 'D'
RG GLOBAL: Posts $186,000 Net Loss in 2nd Qtr. Ended September 30
RICCO INC: Case Summary & 20 Largest Unsecured Creditors
RICHARD LARSEN: Case Summary & 18 Largest Unsecured Creditors
RIDGEVIEW HEIGHTS: Sec. 341 Creditors Meeting Set for Jan. 29
R.J. FINANCIAL: Case Summary & 20 Largest Unsec. Creditors
RK REALTY ONE: Voluntary Chapter 11 Case Summary
RURAL/METRO CORPORATION: CEO Stepdown Won't Move Moody's Ratings
SEQUA CORP: Bank Debt Trades at 9% Off in Secondary Market
SERGIO GONZALEZ: Voluntary Chapter 11 Case Summary
SERVICE MASTER: Bank Debt Trades at 7% Off in Secondary Market
SERVICE SUPPLY: Case Summary & 20 Largest Unsecured Creditors
SEVERN JUPITER: Voluntary Chapter 11 Case Summary
SHADOW GROUP: Case Summary & 15 Largest Unsecured Creditors
SHERWOOD/CLAY-AUSTIN: Gets Interim Nod to Use Cash Collateral
SIMON WORLDWIDE: Forms Special Committee to Explore Options
SIX FLAGS: ASM Capital, et al., Buys Claims in December
SIX FLAGS: Moody's Assigns Corporate Family Rating at 'B1'
SK FOODS: Michael Chavez Admits Getting Bribes from Broker
SMARTLENS CORPORATION: Case Summary & 20 Largest Unsec. Creditors
SOLAR ENERTECH: Converts Series A & B Convertible Notes
SONTERRA ENERGY: Case Summary & 20 Largest Unsecured Creditors
SPANSION INC: To Purchase Distribution Business of Japan Unit
STARPOINTE ADERRA: Corriente Residences Now Managed Condo Capital
STARPOINTE ADERRA: Asks Court's Permission to Use Cash Collateral
STARPOINTE ADERRA: Asks for Court Okay to Sell Two Condominiums
STARPOINTE ADERRA: Sec. 341 Creditors Meeting Set for Feb. 2
STARPOINTE ADERRA: Taps Osborn Maledon as Bankruptcy Counsel
STAR TRIBUNE: M. Klingensmith Named New Publisher
SUMI PRINTING: Case Summary & 20 Largest Unsecured Creditors
SUMMIT MATERIALS: Moody's Assigns 'B2' Corporate Family Rating
SUNGARD DATA: Bank Debt Trades at 2% Off in Secondary Market
SWIFT TRANSPORTATION: Bank Debt Trades at 8% Off
SWORDFISH FINANCIAL: June 30 Balance Sheet Upside-Down by $2.8MM
TAYLOR ANGELOS: Case Summary & 17 Largest Unsecured Creditors
THERMOENERGY CORP: Sept 30 Balance Sheet Upside-Down by $13.3 MM
TIEGS FAMILY: Files Schedules of Assets & Liabilities
TIEGS FAMILY: No Creditors Committee Appointed by U.S. Trustee
TIMBERLINE HOLDINGS: Voluntary Chapter 11 Case Summary
TLC VISION: Ch. 11 Plan Leaves Shareholders in Dust
TONJA LYNN DEMOFF: Case Summary & 14 Largest Unsecured Creditors
TRC NUTRITIONAL: Case Summary & 20 Largest Unsecured Creditors
TRIBUNE CO: Objects to J. McCormick's $50 Billion Claim
TRIBUNE CO: Proposes Hearst Corp. Settlement
TRIBUNE CO: Proposes to Buy Tail Coverage for $5.6 Million
TXCO RESOURCES: Creditors Show Support for Anadarko Bid
UNITED SITE: S&P Downgrades Corporate Credit Rating to 'SD'
US ANTIMONY: Mexican Mill May Start Operations by End of Q1
VALUE CITY: PBGC Assumes Pension Plans at GB & Gramex Units
VENETIAN MACAU: Bank Debt Trades at 4% Off in Secondary Market
VERMILLION INC: Closes $43.05MM Private Placement of Common Stock
VERMILLION INC: Court Approves Vermillion's Plan of Reorganization
VERTIS HOLDINGS: Unit Commences Debt for Equity Exchange
VIDEOTRON LTEE: Moody's Rates Senior Unsecured Notes at 'Ba2'
VIDEOTRON LTEE: S&P Assigns 'BB-' Rating on C$200 Mil. Notes
VINEYARD COMPLEX: Voluntary Chapter 11 Case Summary
VISTA RIDGE: Files for Bankruptcy After Deal With Lender Failed
VISTA RIDGE: Case Summary & 20 Largest Unsecured Creditors
VISTEON CORP: Bank Debt Trades at 112.5% in Secondary Market
VUE ORLANDO: To Auction Unsold Units on March 15
WEST CORP: Bank Debt Trades at 2% Off in Secondary Market
WEST NEW CASTLE: Voluntary Chapter 11 Case Summary
WESTON RANCH DEVELOPMENT: Voluntary Chapter 11 Case Summary
WOODSIDE GROUP: Emerges from Chapter 11 Bankruptcy
YANKEE CANDLE: Bank Debt Trades at 4% Off in Secondary Market
* 2009 Has 3rd Largest All-Time Bankruptcy Count, Says BData
* Auto Industry Needs New Approaches in Changed Global Market
* Colony Capital Declared Winning Bidder of $1 Billion in Loans
* Commercial Property Is Biggest Risk, U.S. Bank Examiners Find
* Las Vegas Real Estate Posts 2009 Gains Despite Recession
* PwC Sees Changes in Forest, Paper & Packaging Industries
* S&P Says 2009 Ends With 265 Defaults; 4 Issuers Default In 2010
* Wave of Bankruptcies Hits States Hammered by Housing Bust
* David Schwartzbaum Joins Greenberg Traurig
* Epiq Systems Ranks #1 for Corporate Restructuring Engagements
* Arent Fox Names George Angelich as Partner
* BOND PRICING -- For the Week From January 4 to 8, 2009
*********
10822 N. SCOTTSDALE: Voluntary Chapter 11 Case Summary
------------------------------------------------------
Debtor: 10822 N. Scottsdale, LLC
10040 East Happy Valley Road, #47
Scottsdale, AZ 85255
Bankruptcy Case No.: 10-00358
Chapter 11 Petition Date: January 7, 2010
Court: United States Bankruptcy Court
District of Arizona (Phoenix)
Judge: Charles G. Case II
Debtor's Counsel: Jonathan P. Ibsen, Esq.
Jaburg & Wilk, PC
3200 N. Central Ave., #2000
Phoenix, AZ 85012
Tel: (602) 248-1054
Fax: (602) 248-1085
Email: jpi@jaburgwilk.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Debtor did not file a list of its 20 largest unsecured
creditors when it filed its petition.
The petition was signed by Frederick J. Luoma, manager of the
Company.
ACTGG PARTNERSHIP: Case Summary & 11 Largest Unsecured Creditors
----------------------------------------------------------------
Debtor: ACTGG Partnership, LLP
2730 E Northport Rd
Rome City, IN 46784-9753
Bankruptcy Case No.: 10-10047
Chapter 11 Petition Date: January 7, 2010
Court: United States Bankruptcy Court
Northern District of Indiana (Fort Wayne Division)
Judge: Robert E. Grant
Debtor's Counsel: John Burns(SR), Esq.
111 East Wayne Street, Suite 800
Fort Wayne, IN 46802
Tel: (260) 424-8000
Email: skrhoads@bakerd.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A list of the Company's 11 largest unsecured creditors is
available for free at:
http://bankrupt.com/misc/azb09-30832.pdf
The petition was signed by Lawrence J. Young, partner of the
company.
ADFITECH: Can Solicit Votes for Reorganization Plan
---------------------------------------------------
Reuters reports that a federal bankruptcy court approved
Adfitech's disclosure statement for its Chapter 11 plan of
reorganization. The Company can now solicit votes for the plan.
Adfitech is an independently operated, wholly owned subsidiary of
TMST Home Loans, Inc., formerly known as Thornburg Mortgage Home
Loans, Inc., and provides mortgage-related auditing and quality
control consulting services to financial institutions. Adfitech
is self-funded, has its own separate workforce and bank accounts,
and operates independently from the TMST Debtors including TMST
and TMHL at offices located in Edmond, Oklahoma on unencumbered
real estate owned by Adfitech.
As of October 31, 2009, Adfitech had total assets of $30,807,613
against total liabilities of $1,639,994,390. As of the petition
date, Adfitech had total assets of $28,026,037 against total
liabilities of $1,639,832,523.
Thornburg Mortgage, Inc., now known as TMST, 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.
On November 2, 2009, the Bankruptcy Court entered an Order
Severing Joint Administration with Respect to the Adfitech Chapter
11 Case. As a result, the Adfitech Chapter 11 case is no longer
jointly administered with the cases of the TMST Debtors.
A-JVP1 LLC: Files Schedules of Assets & Liabilities
---------------------------------------------------
A-JVP1, LLC, has filed with the U.S. Bankruptcy Court for the
District of Nevada its schedules of assets and liabilities,
disclosing:
Name of Schedule Assets Liabilities
---------------- ------ -----------
A. Real Property $16,000,000
B. Personal Property $1,500
C. Property Claimed as
Exempt
D. Creditors Holding
Secured Claims $15,770,000
E. Creditors Holding
Unsecured Priority
Claims $0
F. Creditors Holding
Unsecured Non-priority
Claims $0
----------- -----------
TOTAL $16,001,500 $15,770,000
Las Vegas, Nevada-based A-JVP1, LLC, filed for Chapter 11
bankruptcy protection on December 29, 2009 (Bankr. D. Nev. Case
No. 09-34236). Georganne W. Bradley, Esq., at Kaempfer Crowell Et
Al., assists the Company in its restructuring effort.
A-JVP1 LLC: Sec. 341 Creditors Meeting Set for Feb. 4
-----------------------------------------------------
The U.S. Trustee for Region 17 will convene a meeting of A-JVP1,
LLC's creditors on February 4, 2010, at 1:00 p.m. at 300 Las Vegas
Blvd., South, Room 1500, Las Vegas, NV 89101.
This is the first meeting of creditors required under Section
341(a) of the U.S. Bankruptcy Code in all bankruptcy cases.
All creditors are invited, but not required, to attend. This
Meeting of Creditors offers the one opportunity in a bankruptcy
proceeding for creditors to question a responsible office of the
Debtor under oath about the company's financial affairs and
operations that would be of interest to the general body of
creditors.
Las Vegas, Nevada-based A-JVP1, LLC, filed for Chapter 11
bankruptcy protection on December 29, 2009 (Bankr. D. Nev. Case
No. 09-34236). Georganne W. Bradley, Esq., at Kaempfer Crowell,
et al., assists the Company in its restructuring effort. The
Company listed $16,001,500 in assets and $15,770,000 in
liabilities.
A-JVP1 LLC: Submits Plan of Reorganization
------------------------------------------
A-JVP1, LLC, has filed a plan of reorganization with the U.S.
Bankruptcy Court for the District of Nevada.
Under the Plan, administrative claims other than claims for
professional fees will be paid in full in cash on the effective
date, the 10th day after the claims are allowed, and when the
holders of any of the claim and the Debtor may agree.
Professional fees for services rendered in connection with the
Chapter 11 case and the Plan after the effective date may be paid
by the Debtor upon receipt of an invoice for the services, or on
other terms to which the Debtor and the relevant professional may
agree, without the need for court order.
Holders of Class 1 - Property Claims will receive a single cash
payment equal to the sum of (a) the allowed property tax claim and
(b) accrued postpetition interest calculated at the rate required
by applicable nonbankruptcy law.
On the effective date, holders of Class 2 - Note Claims will
receive, in complete satisfaction of the claims, their pro rata
share of 100% of the Class A Membership Interests. The membership
interests will have all of the rights and obligations set forth in
the New Operating Agreement.
Holders of Class 3 - Old Membership Units will be exchanged, on
the effective date, for the Class B Membership Interests. The
interests will have all of the rights and obligations set forth in
the New Operating Agreement.
After the effective date, the Debtor will be managed by the
manager -- LEHM, LLC, a Nevada limited liability company to be
established for the purpose of managing the Debtor after the
effective date -- and the steering committee. The Manager, with
the assistance of the developer Focus Investment Group, LLC, will
perform, at the expense of the Debtor, pre-development and
entitlement work necessary and reasonable to prepare the property
for sale and, where commercially practicable, improve the
entitlement and master planning status of the property. The
Manager will also market and sell the property, at the expense of
the Debtor, when commercially reasonable, subject to the approval
of the steering committee and the holders of Class A Membership
Interests.
A copy of the Plan is available for free at:
http://bankrupt.com/misc/AJVP-1_plan.pdf
http://bankrupt.com/misc/AJVP-1_plan2.pdf
http://bankrupt.com/misc/AJVP-1_plan3.pdf
A copy of the disclosure statement is available for free at:
http://bankrupt.com/misc/AJVP-1_ds.pdf
http://bankrupt.com/misc/AJVP-1_ds2.pdf
Las Vegas, Nevada-based A-JVP1, LLC, filed for Chapter 11
bankruptcy protection on December 29, 2009 (Bankr. D. Nev. Case
No. 09-34236). Georganne W. Bradley, Esq., at Kaempfer Crowell Et
Al., assists the Company in its restructuring effort. The Company
listed $16,001,500 in assets and $15,770,000 in liabilities.
A-SWDE1 LLC: Files Schedules of Assets & Liabilities
----------------------------------------------------
A-SWDE1, LLC, has filed with the U.S. Bankruptcy Court for the
District of Nevada its schedules of assets and liabilities,
disclosing:
Name of Schedule Assets Liabilities
---------------- ------ -----------
A. Real Property $10,000,000
B. Personal Property $1,500
C. Property Claimed as
Exempt
D. Creditors Holding
Secured Claims $9,836,400
E. Creditors Holding
Unsecured Priority
Claims $0
F. Creditors Holding
Unsecured Non-priority
Claims $0
----------- -----------
TOTAL $10,001,500 $9,836,400
Las Vegas, Nevada-based A-SWDE1, LLC, filed for Chapter 11
bankruptcy protection on December 29, 2009 (Bankr. D. Nev. Case
No. 09-34216). Georganne W. Bradley, Esq., at Kaempfer Crowell,
Et Al., assists the Company in its restructuring effort.
A-SWDE1 LLC: Sec. 341 Creditors Meeting Set for Jan. 28
-------------------------------------------------------
The U.S. Trustee for Region 17 will convene a meeting of A-SWDE1,
LLC's creditors on January 28, 2010, at 4:00 p.m. at 300 Las Vegas
Blvd., South, Room 1500, Las Vegas, NV 89101.
This is the first meeting of creditors required under Section
341(a) of the U.S. Bankruptcy Code in all bankruptcy cases.
All creditors are invited, but not required, to attend. This
Meeting of Creditors offers the one opportunity in a bankruptcy
proceeding for creditors to question a responsible office of the
Debtor under oath about the company's financial affairs and
operations that would be of interest to the general body of
creditors.
Las Vegas, Nevada-based A-SWDE1, LLC, filed for Chapter 11
bankruptcy protection on December 29, 2009 (Bankr. D. Nev. Case
No. 09-34216). Georganne W. Bradley, Esq., at Kaempfer Crowell,
Et Al., assists the Company in its restructuring effort. The
Company listed $10,001,500 in assets and $9,836,400 in
liabilities.
A-SWDE1 LLC: Files Reorganization Plan
--------------------------------------
A-SWDE1, LLC, has filed a plan of reorganization with the U.S.
Bankruptcy Court for the District of Nevada.
Pursuant to the Plan, administrative claims other than claims for
professional fees will be paid in full in cash on the effective
date, on the 10th day after the claims are allowed, and when the
holders of any of the claims and the Debtor may agree.
Holders of Class 1 - Property Tax Claims will receive a single
cash payment equal to the sum of (a) the allowed property tax
claim and (b) accrued postpetition interest calculated at the rate
required by applicable nonbankruptcy law.
On the effective date, holders of Class 2 - Note Claims will
receive, in complete satisfaction of the claims, their pro rata
share of 100% of the Class A Membership Interests. The interests
will have the rights and obligations set forth in the New
Operating Agreement.
On the effective date, Class 3 - Old Membership Units will be
exchanged for the Class B Membership Interests, which will have
the rights and obligations set forth in the New Operating
Agreement.
The Debtor will be managed by the manager -- LEHM, LLC, a Nevada
limited liability company to be established for the purpose of
managing the Debtor after the effective date -- and the steering
committee. The Manager, with the assistance of the developer
Focus Investment Group, LLC, will perform, at the expense of the
Debtor, the pre-development and entitlement work necessary and
reasonable to prepare the property for sale and, where
commercially practicable, improve the entitlement and master
planning status of the property. The Manager will also market and
sell the property, at the expense of the Debtor, when commercially
reasonable, subject to the approval of the steering committee and
the holders of Class A Membership Interests.
A copy of the Plan is available for free at:
http://bankrupt.com/misc/A-SWDE1_plan.pdf
http://bankrupt.com/misc/A-SWDE1_plan2.pdf
http://bankrupt.com/misc/A-SWDE1_plan3.pdf
A copy of the disclosure statement is available for free at:
http://bankrupt.com/misc/A-SWDE1_ds.pdf
http://bankrupt.com/misc/A-SWDE1_ds2.pdf
Las Vegas, Nevada-based A-SWDE1, LLC, filed for Chapter 11
bankruptcy protection on December 29, 2009 (Bankr. D. Nev. Case
No. 09-34216). Georganne W. Bradley, Esq., at Kaempfer Crowell Et
Al., assists the Company in its restructuring effort. The Company
listed $10,001,500 in assets and $9,836,400 in liabilities.
ALASKA COMMS: Bank Debt Trades at 4% Off in Secondary Market
------------------------------------------------------------
Participations in a syndicated loan under which Alaska
Communications Systems is a borrower traded in the secondary
market at 96.10 cents-on-the-dollar during the week ended Friday,
Jan. 8, 2010, according to data compiled by Loan Pricing Corp. and
reported in The Wall Street Journal. This represents increase of
1.70 percentage points from the previous week, The Journal
reports. The Company pays 275 basis points above LIBOR to borrow
under the facility. The bank loan matures on Feb. 1, 2012, and
carries Moody's Ba3 rating and Standard & Poor's BB- rating. The
debt is one of the biggest gainers and losers among 160 widely
quoted syndicated loans with five or more bids in secondary
trading for the week ended Jan. 8, 2010.
As reported by the Troubled Company Reporter on Nov. 24, 2009,
Moody's affirmed Alaska Communications Systems Holdings, Inc.'s B1
corporate family rating, B1 probability of default rating, and the
Ba3 rating applicable to the company's bank credit facility.
Concurrently, Moody's also affirmed the prevailing SGL-3
speculative grade liquidity rating (indicating adequate
liquidity). The rating outlook remains stable.
Alaska Communications Systems Holdings, Inc., is a leading
integrated communications provider based in Anchorage, Alaska.
ACSH is the state's incumbent wireline operator, owns an extensive
IP backbone serving the enterprise segment and also operates an
extensive 3G wireless network in the state of Alaska.
AMC ENTERTAINMENT: Bank Debt Trades at 4% Off in Secondary Market
-----------------------------------------------------------------
Participations in a syndicated loan under which AMC Entertainment,
Inc., is a borrower traded in the secondary market at 96.10 cents-
on-the-dollar during the week ended Friday, Jan. 8, 2010,
according to data compiled by Loan Pricing Corp. and reported in
The Wall Street Journal. This represents increase of 1.83
percentage points from the previous week, The Journal reports.
The Company pays 175 basis points above LIBOR to borrow under the
facility. The bank loan matures on Jan. 23, 2013, and carries
Moody's Ba2 rating and Standard & Poor's BB- rating. The debt is
one of the biggest gainers and losers among 160 widely quoted
syndicated loans with five or more bids in secondary trading for
the week ended Jan. 8, 2010.
Headquartered in Kansas City, Missouri, AMC Entertainment, Inc. --
http://www.amctheatres.com/-- is organized as an intermediate
holding company. Its principal directly owned subsidiaries are
American Multi-Cinema, Inc., and AMC Entertainment International,
Inc. The Company conducts its theatrical exhibition business
through AMC and its subsidiaries and AMCEI.
Fitch Ratings in October 2009 affirmed AMC Entertainment's issuer
default rating affirmed at 'B', senior secured credit facilities
at 'BB/RR1'; senior unsecured notes at 'B/RR4'. It also revised
the Company's senior subordinated notes to 'CCC/RR6' from
'CCC+/RR6'.
AMERICAN NATURAL ENERGY: Gets Bayou Couba Field Working Interests
-----------------------------------------------------------------
American Natural Energy Corporation on Thursday said it has
completed the acquisition of the majority of an overriding royalty
and net profits interest -- ORI -- which eliminates a burden on
all of its interests and cash flow in its Bayou Couba Field, St.
Charles Parish, Louisiana.
ANEC paid US$320,000 in the aggregate to three parties for 89% of
the ORI. ANEC had previously acquired 4.5% of the ORI in various
transactions and now holds 93.5% of the total ORI.
The ORI was created in 2001 as part of the purchase of the assets
of Couba Operating Company by ANEC. With this transaction and
previous transactions to acquire various working interests, ANEC
now owns 97.25% of the Working Interest -- WI -- in all but 6 of
the producing wells. ANEC owns a 47.25% WI in the 6 wells. ANEC
also has a 97.25% WI in all of the future development in the Bayou
Couba field from the surface to the top of the Cib Op formation at
approximately 11,000 feet. The acquisitions have increased the
PV10% of ANEC's Proved Reserves by approximately US$3.3 million
based on third quarter 2009 reserves evaluations.
ANEC also re-completed DSCI 134 (97.5% WI) and the DSCI 118 (100%
WI) in December 2009. Initial production was 80 bopd from the
DSCI 134 and 140 bopd from the DSCI 118. ANEC also plans to
recomplete an additional well later in January which will be
funded from cash flow.
The acquisition of the ORI was financed by a bridge loan due
March 31, 2010, in the amount of Cdn$400,000. Interest is payable
at the due date based on an annual rate of 12%. The loan is
unsecured and the lenders will receive, subject to approval by the
TSX Venture Exchange, a share bonus of approximately 1.6 million
shares of restricted ANEC stock. The recompletions were financed
with a US$450,000 non-recourse note from a private group and are
being repaid, along with interest at 10% per annum, out of cash
flows from the 2 recompleted wells.
Capital Raise
On December 14, American Natural Energy said it intends to seek to
raise additional capital proposed to be used for working capital
and general corporate purposes. The terms of the transaction
would involve the sale of up to 20 million shares of ANEC's Common
Stock at a price of $0.05 per share or total proceeds of up to
$1.0 million. If completed, the transaction would result in
dilution to the present holders of ANEC's Common Stock.
September 2009 Financials
For the three months ended September 30, 2009, the Company posted
net income of $26,273,150 from a net loss of $243,887 for the same
period in 2008. For the three months ended September 30, 2009,
the Company posted net income of $24,364,763 from a net loss of
$859,639 for the same period in 2008.
Revenues for the three months ended September 30, 2009, were
$286,735 from $563,570 for the same period in 2008. Revenues for
the nine months ended September 30, 2009, were $713,830 from
$2,116,532 for the same period in 2008.
At September 30, 2009, the Company had $17,535,216 in total assets
against $8,612,984 in total liabilities, resulting in $8,922,232
in stockholders' equity. At June 30, 2009
The September 30 balance sheet showed strained liquidity: The
Company had $605,630 in total current assets against $6,252,784 in
total current liabilities.
In its Form 10-Q report filed in November, the Company said it
currently has a severe shortage of working capital and funds to
pay its liabilities. The Company has no current borrowing
capacity with any lender. The Company also has a need for
substantial funds to develop its oil and gas properties and repay
borrowings as well as to meet its other current liabilities.
The Company said there is substantial doubt concerning its ability
to meet its obligations as they come due. The ability of the
Company to continue as a going concern is dependent upon adequate
sources of capital and the Company's ability to sustain positive
results of operations and cash flows sufficient to continue to
explore for and develop its oil and gas reserves and pay its
obligations.
About American Natural Energy
American Natural Energy Corporation (TSX Venture: ANR.U) is a
Tulsa, Oklahoma-based independent exploration and production
company with operations in St. Charles Parish, Louisiana.
AMR CORP: Japan Airlines Prefers Business Tie-Up, Not Merger
------------------------------------------------------------
The Wall Street Journal, citing the Nikkei, reports that Japan
Airlines and the state-backed Enterprise Turnaround Initiative
Corp. have decided to limit a possible alliance with either one of
the two interested U.S. carriers to a business tie-up, rather than
a partnership that includes equity ownership.
The Journal also reports that the Japanese government favors the
use of court-led bankruptcy protection for JAL and will make a
decision as early as Jan. 12. The report says the airline will
file a petition with the Tokyo District court under the Corporate
Rehabilitation Law around Jan. 19. The Nikkei said the transport
minister expects the ETIC to decide to support the airline's
revival by the end of the month.
According to the Journal, JAL and the ETIC have apparently
concluded that at least for the time being, a capital tie-up with
a foreign airline would do more harm than good if JAL wants to
quickly implement restructuring measures under the aegis of the
government and ETIC.
The Journal relates that the ETIC originally planned to pick a
partner from the two U.S. suitors -- AMR Corp.'s American Airlines
and Delta Air Lines Inc. -- by the end of this month, but has now
decided to spend more time on the selection process in order to
best determine which partnership would generate greater synergy.
A final decision will come no earlier than February, the report
notes.
Kyocera Chairman
The Journal also reports that Japanese government and the ETIC
have asked Kazuo Inamori, chairman emeritus of Kyocera Corp., to
be chief executive officer of JAL during restructuring process.
The Journal relates the Nikkei said Mr. Inamori is expected to
respond to the proposal within a week.
According to the Journal, upon a bankruptcy filing by JAL,
majority of JAL's current directors, including President Haruka
Nishimatsu, will resign from their positions.
JAL'S Banks Acceptance
Finbarr Flynn, Chris Cooper and Kiyotaka Matsuda at Bloomberg News
report that Japan Airlines' largest banks are set to agree to
JAL's bankruptcy.
Citing four people familiar with the matter, Bloomberg says
Mitsubishi UFJ Financial Group Inc., Sumitomo Mitsui Financial
Group Inc. and Mizuho Financial Group Inc. are prepared to go
along with a proposed court-led reconstruction while the state-
owned Development Bank of Japan already agreed to the bankruptcy.
JAL owed JPY429 billion ($4.6 billion) to its four largest
creditors at the end of March, according to the company.
The Tokyo-based carrier will file for bankruptcy in the week
starting Jan. 18, and the ETIC will agree to provide financial aid
to Japan Air the same day, said a person familiar with the
negotiations, who declined to be named.
AMR Capacity Cut
Chris Cooper and Kiyotaka Matsuda at Bloomberg News report that
American Airlines said it may cut capacity on routes to Japan if
partner Japan Airlines Corp. switches into an alliance with Delta
Air Lines Inc.
Will Ris, senior vice president of government affairs at AMR
Corp.'s American told Bloombeg that "It's hard to imagine we could
sustain operations without JAL." Mr. Ris said working without JAL
would mean the carrier couldn't access flights between Japan and
Asia, which would reduce its potential customer base, Bloomberg
relates.
"One hundred percent of our passengers that fly beyond Japan go
with JAL," Bloomberg quoted Mr. Ris as saying. "We're willing to
invest regardless of whether JAL has a voluntary restructuring or
goes through bankruptcy," he added.
On December 17, 2009, the Troubled Company Reporter-Asia Pacific,
citing The Wall Street Journal's Mariko Sanchanta and Dow Jones
Newswires' Doug Cameron, reported that American Airlines said it
may increase a proposed capital investment in Japan Airlines and
draw on financial support from other members of their Oneworld
alliance.
According to the report, Gerard Arpey, chairman and chief
executive of American parent AMR Corp., also offered to make JAL
the airline's "exclusive partner" in the region, as it intensified
efforts to fend off a rival offer from Delta Air Lines Inc.
Early in December, AMR said it could inject $1.1 billion into JAL
with its partner TPG Inc., the private-equity group, and support
from members of its Oneworld alliance. According to the Journal,
the pledged support had previously been in the form of logistical
and management help for JAL, but Mr. Arpey hinted the partners
could also provide capital. The TCR-AP reported last week AMR
increased its investment offer into Japan Airlines by US$300
million to US$1.4 billion.
Delta and its partners in the rival SkyTeam alliance have said
they may revise their proposal to inject $500 million into JAL and
provide a $200 million loan and a $300 million revenue guarantee.
Delta hasn't said whether other SkyTeam members would inject funds
into JAL. The Journal said Richard Anderson, Delta's CEO, met
with Seiji Maehara, Japan's Minister of Land, Infrastructure,
Transport and Tourism, early in December to explain his company's
proposal in more detail.
The Oneworld alliance includes British Airways, Qantas, Cathay
Pacific, Iberia, LAN, Finnair and Mexicana.
About AMR Corp.
Headquartered in Forth Worth, Texas, AMR Corporation (NYSE:
AMR) operates with its principal subsidiary, American Airlines
Inc. -- http://www.aa.com/-- a worldwide scheduled passenger
airline. At the end of 2006, American provided scheduled jet
service to about 150 destinations throughout North America, the
Caribbean, Latin America, including Brazil, Europe and Asia.
American is also a scheduled airfreight carrier, providing
freight and mail services to shippers throughout its system.
Its wholly owned subsidiary, AMR Eagle Holding Corp., owns two
regional airlines, American Eagle Airlines Inc. and Executive
Airlines Inc., and does business as "American Eagle." American
Beacon Advisors Inc., a wholly owned subsidiary of AMR, is
responsible for the investment and oversight of assets of AMR's
U.S. employee benefit plans, as well as AMR's short-term
investments.
* * *
AMR carries a 'CCC' issuer default rating from Fitch Ratings. It
has 'Caa1' corporate family and probability of default ratings
from Moody's. It has 'B-' corporate credit rating, on watch
negative, from Standard & Poor's.
About Delta Air Lines
With its acquisition of Northwest Airlines, Atlanta, Georgia-based
Delta Air Lines (NYSE: DAL) -- http://www.delta.com/or
http://www.nwa.com/-- became the world's largest airline
following merger with Northwest Airlines in 2008. From its hubs
in Atlanta, Cincinnati, Detroit, Memphis, Minneapolis-St. Paul,
New York-JFK, Salt Lake City and Tokyo-Narita, Delta, its
Northwest subsidiary and Delta Connection carriers offer service
to more than 376 destinations worldwide in 66 countries and serves
more than 170 million passengers each year. The merger closed on
October 29, 2008.
Northwest and 12 affiliates filed for Chapter 11 protection on
September 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17930).
On May 21, 2007, the Court confirmed the Northwest Debtors'
amended plan. That amended plan took effect May 31, 2007.
Delta and 18 affiliates filed for Chapter 11 protection on
September 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923).
Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represented
the Delta Debtors in their restructuring efforts. On April 25,
2007, the Court confirmed the Delta Debtors' plan. That plan
became effective on April 30, 2007.
(Bankruptcy Creditors Service Inc. publishes Delta Air Lines
Bankruptcy News, http://bankrupt.com/newsstand/or 215/945-7000).
* * *
Delta Air Lines has $44,480,000,000 in assets against total debts
of $43,500,000,000 in debts as of June 30, 2009.
Delta Air Lines and Northwest Airlines carry a 'B/Negative/--'
corporate ratings from Standard & Poor's. They also continue to
carry 'B2' corporate family ratings from Moody's.
About JAL
Japan Airlines Corporation -- http://www.jal.co.jp/-- is a Japan-
based holding company that is active in five business segments
through its 225 subsidiaries and 82 associated companies. The Air
Transportation segment is engaged in the operation of passenger
and cargo planes. The Air Transportation-Related segment is
engaged in the transportation of passengers and cargoes, the
preparation of in-flight food catering, the maintenance of
aircraft and land equipment, as well as the fueling business. The
Travel Planning and Marketing segment is involved in the planning
and sale of travel packages. The Card and Leasing segment is
engaged in the provision of finance, cards and leasing services.
The Others segment is involved in businesses related to hotels,
resorts, logistics, wholesale, retail, real estate, printing,
construction, manpower dispatch, as well as information and
communication. The Company has numerous global operating
locations.
JAL International Co. Ltd. is a wholly owned operating subsidiary
of Japan Airlines Corporation.
* * *
As reported by the Troubled Company Reporter on November 3, 2009,
Moody's Investors Service has downgraded the long-term debt rating
and issuer rating of Japan Airlines International Co., Ltd. To
Caa1 from B1, and will continue to review both ratings for further
possible downgrade.
ARAMARK CORP: Bank Debt Trades at 4% Off in Secondary Market
------------------------------------------------------------
Participations in a syndicated loan under which ARAMARK Corp. is a
borrower traded in the secondary market at 95.86 cents-on-the-
dollar during the week ended Friday, Jan. 8, 2010, according to
data compiled by Loan Pricing Corp. and reported in The Wall
Street Journal. This represents increase of 1.67 percentage
points from the previous week, The Journal reports. The debt
matures on Jan. 26, 2014. The Company pays 188 basis points above
LIBOR to borrow under the loan facility and it carries Moody's Ba3
rating and Standard & Poor's BB rating. The debt is one of the
biggest gainers and losers among 160 widely quoted syndicated
loans with five or more bids in secondary trading for the week
ended Jan. 8, 2010.
ARAMARK Corp. -- http://www.aramark.com/-- is the world's #3
contract foodservice provider (behind Compass Group and Sodexo)
and the #2 uniform supplier (behind Cintas) in the US. It offers
corporate dining services and operates concessions at many sports
arenas and other entertainment venues, while its ARAMARK
Refreshment Services unit is a leading provider of vending and
beverage services. The Company also provides facilities
management services. Through ARAMARK Uniform and Career Apparel,
the company supplies uniforms for healthcare, public safety, and
technology workers. Founded in 1959, ARAMARK is owned by an
investment group led by chairman and CEO Joseph Neubauer.
ARAMARK Corp. carries a 'B1' long term corporate family rating
from Moody's, a 'B+' long term issuer credit ratings from Standard
& Poor's, and a 'B' long term issuer default rating from Fitch.
ARCH ALUMINUM: Challenges Oldcastle's Participation in Sale
-----------------------------------------------------------
NetDockets report that Oldcastle Glass, Inc., alleges Arch
Aluminum & Glass Co., Inc., had wrongfully impeded Oldcastle Glass
from participating in the due diligence and bidding process for
Arch Aluminum's assets. Oldcastle has asked the Bankruptcy Court
to direct Arch Aluminum to allow it to participate and to extend
the current due diligence and the January 8 bid deadline by a
minimum of two business days to provide it with sufficient time to
complete its diligence and submit a bid. The Debtors and their
stalking horse bidder quickly objected to Oldcastle's request.
Arch Aluminum is seeking to sell its assets to Arch Glass
Acquisition Company, an affiliate of Grey Mountain Partners of
Boulder, Colorado, for $62 million. Pursuant to the Court's
bidding procedures order, competing bidders may submit information
by January 4 to be able to access the Debtors' data room and
diligence materials.
According to NetDockets, Oldcastle Glass, which is a part of
Oldcastle Inc. and CRH plc. -- one of the five largest building
products companies worldwide -- asserts that it submitted the
required materials "on January 4, 2010, at 5:02 p.m. (Eastern), in
substantial compliance with the Bid Procedures." One element of
the required materials is a confidentiality agreement, to which
Oldcastle asserts it made only "a single, minor revision" that was
necessary to keep the agreement's non-solicitation provision
"likely unenforceable." According to NetDockets, Oldcastle
asserts that despite its alleged "substantial compliance" with the
bid procedures, it was notified that its submission "did not meet
the court-approved requirements as set forth in the Final Sale
Notice, including the requirement to submit the requisite
materials by 5 p.m. Eastern and executing a confidentiality
agreement in form and substance satisfactory to the Debtors."
According to NetDockets, Oldcastle also alleges that it was
informed by the Debtors' representatives that it would only be
allowed to participate in the bid process if it submitted "(i) a
letter from the CEO or CFO of Oldcastle, Inc., indicating that the
Oldcastle Glass has received the requisite internal corporate
approvals to execute, by January 8, 2010, a binding purchase
agreement substantially in the same form as the asset purchase
agreement entered into by the stalking horse bidder and consummate
the transaction on the timeline, at the required purchase price,
and on the other terms set forth in the Final Sale Notice; and
(ii) the form of confidentiality agreement previously provided to
Oldcastle Glass, without Oldcastle Glass' proposed changes." Even
with the submission of those additional materials, Oldcastle was
apparently informed that it would only be allowed limited access
to materials in the Debtors' electronic data room.
According to NetDockets, Oldcastle asserts that "the only
reasonable conclusion that can be reached is that the Debtors, at
best, are engaging in unfair and improper discriminatory acts
against Oldcastle Glass because of its position in the market and,
at worst, attempting to skew the Debtors' asset sale toward the
stalking horse bidder."
According to NetDockets, the Debtors in their objection assert
that they "have serious and reasonable concerns with the sincerity
and good faith of Oldcastle Glass, Inc.'s interest in the sale
process" and, further, that Oldcastle's attempt to participate in
the bidding process is "a thinly-veiled ploy by its largest
competitor to de-rail the sale process." Additionally, the
Debtors challenge Oldcastle's version of the events surrounding
the bidding process to date. The Debtors claim that they were
willing to ignore Oldcastle's failure to timely submit its January
4th materials if it complied with the other provisions of the
bidding procedures -- despite, according to the Debtors, the fact
that Oldcastle's lateness was caused by Oldcastle's decision to
wait until the afternoon of January 4th to express interest in
participating in the sale process.
Contrary to Oldcastle's characterization of its change to the
confidentiality agreement as "minor," the Debtors, according to
NetDockets, also argue that the proposed change would have
completely exempted Oldcastle from the non-solicitation
requirements with respect to the Debtors' employees. Moreover,
the Debtors contend that Oldcastle's initial submission was
incomplete because "there was an unsigned 'Financial Backing
Letter' from Oldcastle's CFO concerning Oldcastle's access to
unrestricted cash to complete the transaction" and because
Oldcastle failed to serve the materials on the required parties.
The Debtors also deny Oldcastle's assertion that they have placed
additional requirements on Oldcastle vis-a-vis other bidders
(however, the Debtors do acknowledge that they are not willing to
provide Oldcastle with access to all materials in its virtual data
room).
According to NetDockets, the stalking horse bidder in its
objection questions Oldcastle's alleged late entry into the sale
process. NetDockets notes the objection attaches a letter from
Grey Mountain's managing partner asserting that Oldcastle has
"engaged in extremely aggressive tactics to damage Arch's
business" since the bankruptcy filing and questioning "[i]f
Oldcastle has a bona fide interest in acquiring the company, what
have they been doing since December 7 when they were first
formally solicited by Piper Jaffray?" The letter also expressly
demands "that Oldcastle be excluded from this process due to non-
compliance with the bid procedures approved by the court and due
to the fact that their behavior has made it obvious to any
impartial observer that their intent is to disrupt the business of
Arch, not to acquire its assets" and states that "Grey Mountain
will be required to consider its remedies under the asset purchase
agreement" if "ANY confidential information related to Arch and
its business is shared with Oldcastle."
About Arch Aluminum
Tamarac, Florida-based Arch Aluminum & Glass Co., Inc. -- fka
Trident Consolidated Industries, Arch, Inc., and Arch Tulsa
Acquisition Co.; and dba Arch Mirror North, Arch Mirror South,
Architectural Safety Glass, Arch Mirror West, Arch Tempered Glass
Products, and Arch Deco Glass -- was founded in 1978 by Robert
Silverstein, as a small South Florida glass and metal distributor
with a single truck. During the 1980's the Company opened
fabrication facilities and additional distribution facilities in
Florida and the Northeast. The Company provides a comprehensive
line of products and services to more than 5,000 customers from 28
office, manufacturing and distribution facilities located in 19
states nationwide.
The Company filed for Chapter 11 bankruptcy protection on
November 25, 2009 (Bankr. S.D. Fla. Case No. 09-36232). The
Company listed $100,000,001 to $500,000,000 in assets and
$100,000,001 to $500,000,000 in liabilities.
The Company's affiliates -- Arch Aluminum L.C.; AWP, LLC, dba
Yale-Ogron; Arch Aluminum and Glass International Inc.; and AAG
Holdings, Inc. -- also filed separate Chapter 11 petition.
Paul J. Battista, Esq., at Genovese Jblove & Battista, P.A.,
assists the Debtors in their restructuring efforts. Schnader
Harrison Segal & Lewis LLP is the Debtors' special counsel.
Vincen J. Colistra at Phoenix Management Services is the Debtors'
restructuring services provider. Michael Dillahunt and Piper
Jaffrey & Co. is the Debtors' investment banker.
ARTURO GONZALEZ-PEREZ: Case Summary & 6 Largest Unsec. Creditors
---------------------------------------------------------------
Debtor: Arturo Luis Gonzalez-Perez
Urb. Biascochea
Calle Begonia #7
Carolina, PR 00979
Bankruptcy Case No.: 09-11216
Chapter 11 Petition Date: December 30, 2009
Court: United States Bankruptcy Court
District of Puerto Rico (Old San Juan)
Debtor's Counsel: Ada M. Conde, Esq.
PO Box 13268
San Juan, PR 00908-3268
Tel: (787) 721-0401
Fax: (787) 721-2982
Email: condelawpr@gmail.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
According to the schedules, the Company has assets of $2,806,603
and total debts of $2,512,010.
A full-text copy of the Debtor's petition, including a list of its
6 largest unsecured creditors, is available for free at:
http://bankrupt.com/misc/prb09-11216.pdf
The petition was signed by Arturo Luis Gonzalez-Perez .
ASPEN INVESTMENT: Court Dismisses Chapter 11 Reorganization Case
----------------------------------------------------------------
The U.S. Bankruptcy Court for the Western District of North
Carolina dismissed the Chapter 11 case of Aspen Investment
Company, L.L.C.
The Bankruptcy Administrator for the Western District of North
Carolina asked the Court to dismiss the Debtor's case relating
that, among other things:
1. the Debtor failed to file any Monthly Status Reports since
April 2009, making it impossible to determine the likelihood of
any reorganization plan the Debtor might file.
2. The Debtor failed to pay any quarterly fees since the fourth
quarter 2008.
3. The Debtor failed to submit a disclosure statement and plan of
reorganization by the prescribed deadline.
4. According to the Debtor's schedules filed with the Court, the
Debtor's only asset was 3264 Oxford School Road and Highway 70,
Catawba County, North Carolina. The lender, Bank of Granite,
was granted relief from stay by Order entered on February 3,
2009.
Based in Harpers Ferry, W. Virginia, Aspen Investment Company,
L.L.C. owns a parcel of undeveloped real property located in
Catawba County, North Carolina containing approximately 440 acres.
The company filed for Chapter 11 relief on Oct.9, 2008 (Bankr.
W.D. N.C. Case No. 08-1140). Richard M. Mitchell, Esq., at
Mitchell & Culp, PLLC, represents the Debtor as counsel.
AVENTINE RENEWABLE: Court Moves Plan Filing Deadline to March 4
---------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware extended,
for the third time, Aventine Renewable Energy Holdings, Inc., et
al.'s exclusive period to propose a Chapter 11 plan and to solicit
votes for the plan until March 4, 2010, and May 3, 2010,
respectively.
Aventine said that it continues to engage in substantial and
extensive negotiations with investors and the unsecured creditors
committee regarding the terms and funding for a Chapter 11 plan of
reorganization and exit financing. As a result of these
negotiations, the Debtors filed a plan, including backstop
commitment agreement and all other documents, et al., on Dec. 4,
2009.
The Debtors also noted that in the event that the Plan is not
confirmed, the requested extension will provide them time to
reassess and pursue all alternative options with respect to their
Chapter 11 restructuring.
Pekin, Illinois-based Aventine Renewable Energy Holdings, Inc.
(Pink Sheets: AVRN) -- http://www.aventinerei.com/-- is a
producer and marketer of ethanol to many leading energy companies
in the United States. In addition to ethanol, Aventine also
produces distillers grains, corn gluten meal, corn gluten feed,
corn germ and brewers' yeast.
Morgan Stanley Capital Partners IV bought Aventine in May 2003
from Williams Cos. Aventine had a public offering in May 2006.
The Morgan Stanley group retained 28% of the stock at year's end.
The Company and its affiliates filed for Chapter 11 on April 7,
2009 (Bankr. D. Del. Lead Case No. 09-11214). Joel A. Waite,
Esq., and Ryan M. Bartley, Esq., at Young, Conaway, Stargatt &
Taylor, serves as bankruptcy counsel to the Debtors. Davis Polk
& Wardwell is special tax counsel and Houlihan, Lokey, Howard &
Zukin, Inc., is the financial advisor. Garden City Group, Inc.,
has been engaged as claims agent. Donald J. Detweiler, Esq., at
Greenberg Traurig, LLP, serves as counsel to the official
committee of unsecured creditors. When it filed for bankruptcy
protection from its creditors, Aventine Renewable listed between
$100 million and $500 million each in assets and debts.
AVIZA TECHNOLOGY: Plan Provides for Consolidation of Assets
-----------------------------------------------------------
Aviza Technology Inc. and its debtor-affiliates filed with the
U.S. Bankruptcy Court for the Northern District of California a
disclosure statement explaining the adequacy of information
relating to their plan of liquidation dated as of January 7, 2010.
The Debtors will begin soliciting votes on the Plan following
approval of the adequacy of the information in the Disclosure
Statement.
The Debtors propose a hearing on the DS before the Hon. Roger L.
Efremsky on February 11, 2010, at 2:00 p.m. at the U.S. Bankruptcy
Court, 280 S. First St., Room 3099, San Jose, California.
According to the Disclosure Statement, the Plan provides for the
consolidation of all assets and all liabilities of ATI, Aviza and
TTI into a single estate. For purposes of distributions to
creditors under the plan, the Debtors will be considered to be a
single, legal entity. The consolidated assets of each Debtor will
be held by the Reorganized Debtors for liquidation by the
Responsible Person and available for distribution to all creditors
regardless of which Debtor was responsible for the debt in the
first instance.
The Debtors' Plan will be implemented by distributing cash
received from the promissory notes, liquidation of the Debtors'
remaining assets, and the wind down and upstreaming of cash by
direct and indirect subsidiaries of Aviza to the Debtors.
After payment of or reserve for asserted secured claims, the
balance of the proceeds from the purchase transaction and from the
liquidation of the Debtors' remaining assets will be used to pay
allowed claims pursuant to the priorities of the Bankruptcy Code
as provided in the Plan.
The holder of the Allowed Claim of United Commercial Bank, East
West Bank and Chinatrust Bank (U.S.A.) will be paid in cash. The
Allowed Secured Claim of the Banks will be paid soon as
practicable, up to the unpaid Allowed Amount of the claim.
The holder of the Allowed Claim of Environmental Services, Inc., a
California corporation will receive either: (a) the net proceeds
from the sale of the Scotts Valley Property at the time of the
sale or as soon thereafter as practicable, up to the unpaid
Allowed Amount of the Claim; or (b) the other less favorable
treatment as will be agreed to by the Reorganized Debtor and the
holder of the secured claim.
The holder of the Allowed Claim of Iron Mountain Information
Management, Inc., a Delaware corporation will receive either: (a)
the net proceeds from the removal, destruction or disposition
otherwise of its collateral, up to the unpaid allowed amount of
the claim; or (b) the other less favorable treatment as will be
agreed to by the Reorganized Debtors and the holder of the
secured claim.
Each holder of an Allowed Class 4 Secured Claim will receive, at
the Reorganized Debtors' option: (a) the net proceeds from the
sale of its collateral at the time of the sale or soon thereafter
as practicable, up to the unpaid allowed amount of the claim; (b)
the return of its collateral; or (c) the other less favorable
treatment as may be agreed to by the Reorganized Debtors and the
holder of the Secured Claim.
Each holder of Classes 5 & Employee Priority Claims will receive,
soon as practicable after payment in full of (a) the Banks'
allowed secured claim, and (b) other allowed secured claims, if
any, or reservation otherwise for the Allowed Secured Claims, to
the extent of the lien on the particular collateral underlying the
lien, deferred cash payments of a value, as of the Effective Date,
equal to the allowed amount of the Claim plus interest calculated
at the legal rate from the petition date through the date of
payment in full.
The holders of Top Hat Funds Claims will retain their rights under
the Top Hat Plan and treatment of the Claims will be as afforded
under the Top Hat Plan. Distributions made from the Top Hat
Funds, if any, will be subject to the Reorganized Debtors'
withholding and payment of applicable federal and state
withholding income tax amounts to the appropriate taxing
authorities.
Class 8 Allowed Timely Filed Unsecured Claim will receive its pro
rata share of available cash, if any, pursuant to one or more
distributions until the depletion of the available cash or payment
in full. In addition, if the allowed claims in Class 9 are paid
in full, then each holder of an allowed claim in Class 8 will
receive interest on the allowed claim from the petition date
through the date of payment in full to the extent of remaining
available cash, on a pro rata basis with all other holders of
allowed claims in Classes 8 and 9.
Each holder of an allowed late filed unsecured claim will receive
its pro rata share of available cash remaining after payment in
full of allowed claims in Class 8. In addition, if the allowed
claims in Class 9 are paid in full, then each holder of an allowed
claim in Class 9 will receive interest on the allowed claim from
the petition date through the date of payment in full to the
extent of remaining available cash, on a pro rata basis with all
other holders of allowed claims in Classes 8 and 9.
Each holder of an Allowed Interest (common stock holders) in
Class 10 will receive its pro rata share of all available cash
remaining, if any, after payment in full of allowed claims in
Class 9, including interest on all allowed claims.
After the Record Date, holders of the Debtors' options will not
receive any distributions under the Plan. Any unexercised options
as of the Record Date will be cancelled.
Implementation of the Plan of Reorganization
1. Substantive consolidation.
2. The Court's orders concerning the use of cash collateral will
continue in full force and effect notwithstanding confirmation of
the Plan, purposes of liquidating the Debtors' remaining assets
3. The Court's orders with respect to the sale of certain of the
Debtors' assets to Sumitomo Precision Products Co., Ltd., at al.,
both confirming the sale and authorizing the Debtors to assume and
assign to SPP certain executory contracts, will remain in full
force and effect and will not be modified by the Plan.
3. The Court's Low-K Patents Order will remain in full force and
effect and will not be modified by the Plan.
4. The Excess Equipment Order entered on September 30, 2009, by
the Bankruptcy Court will still stand for established certain
protocols for the sale of certain fixed assets and equipment.
The Reorganized Debtors will continue to liquidate remaining
assets as appropriate, unless the Responsible Person determines
that any asset is of inconsequential value or that the cost of
liquidating the asset would exceed the expected amount of
proceeds.
The Plan implements the Liquidation Incentive Program which
provides for deferred compensation to certain employees of the
Reorganized Debtors to act in the place of a liquidating agent on
behalf of the Reorganized Debtors.
A full-text copy of the Disclosure Statement is available for free
at http://bankrupt.com/misc/AVISATECH_DS.pdf
A full-text copy of the plan of Liquidation is available for free
at http://bankrupt.com/misc/AVIZATECH_Plan.pdf
Headquartered in Scotts Valley, California, Aviza Technology Inc.
(NASDAQ GM:AVZA) -- http://www.aviza.com/-- designs,
manufactures, sells and supports semiconductor capital equipment
and process technologies for the global semiconductor industry and
related markets. The Company's systems are used in a variety of
segments of the semiconductor market for advanced silicon for
memory devices, 3-D packaging and power integrated circuits for
communications. The Company's manufacturing, R&D, sales and
customer support facilities are located in the United Kingdom,
Germany, France, Taiwan, China, Japan, Korea, Singapore and
Malaysia.
The Company and two of its subsidiaries, Aviza Inc. and Trikon
Technologies Inc., filed for Chapter 11 bankruptcy protection on
June 9, 2009 (Bankr. N.D. Calif. Case No. 09-54511). Judge Roger
L. Efremsky presides over the Chapter 11 case. Attorneys at the
Law Offices of Murray and Murray represent the Debtors. At the
time of the filing, Aviza Technology estimated assets and debts of
$10 million to $50 million.
BENTLEY ENERGY: Case Summary & 20Largest Unsecured Creditors
------------------------------------------------------------
Debtor: Bentley Energy Corporation
aka Bentley Oil & Gas Corporation
45 NE Loop 410, Ste. 495
San Antonio, TX 78216
Bankruptcy Case No.: 10-50128
Chapter 11 Petition Date: January 7, 2010
Court: United States Bankruptcy Court
Western District of Texas (San Antonio)
Debtor's Counsel: R. Glen Ayers, Jr., Esq.
Langley and Banack, Inc
745 E Mulberry, 9th Floor
San Antonio, TX 78212
Tel: (210) 736-6600
Fax: (210) 735-6889
Email: gayers@langleybanack.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A full-text copy of the Debtor's petition, including a list of its
20 largest unsecured creditors, is available for free at:
http://bankrupt.com/misc/txwb10-50128.pdf
The petition was signed by Michael R. Ward, president and CEO of
the Company.
BH S&B HOLDINGS: Committee Loses Veil Piercing Argument
-------------------------------------------------------
WestLaw reports that under Delaware law, allegations made by an
unsecured creditors committee were insufficient to show that the
parent companies of the Chapter 11 debtor-limited liability
company, through an indirect parent, totally dominated the debtor
and treated it as a mere instrumentality, as required to pierce
the debtor's corporate veil, a New York bankruptcy court held.
The debtor was established for a legitimate business purpose,
namely, to acquire the assets of, and continue to operate,
bankrupt retail clothing stores. The debtor, moreover, had cash
on hand and sufficient funds to operate for at least a few months,
and it observed those corporate formalities required of LLCs under
the Delaware Limited Liability Company Act. There were no
suggestions of impropriety or abuse of the corporate form. Even
if allegations concerning the deception of creditors as to the
debtor's prospects were true, they did not rise to the level of
injustice or fraud that would justify disregarding the corporate
form. In re BH S & B Holdings LLC, --- B.R. ----, 2009 WL
4043073, 52 Bankr. Ct. Dec. 125 (Bankr. S.D.N.Y.).
About BH S&B
BH S&B Holdings LLC filed for bankruptcy protection together with
seven other affiliates on November 19, 2008 (Bankr. S.D.N.Y. Lead
Case No. 08-14604). The seven debtor-affiliates are BH S&B
Distribution LLC, BH S&B Lico LLC, BH S&B Retail LLC, BHY S&B
Intermediate Holdco LLC, Cubicle Licensing LLC, Fashion Plate
Licensing LLC, and Heritage Licensing LLC.
BH S&B was formed by investment firms Bay Harbour Management and
York Capital Management in August 2008 to acquire the business
operations and assets of bankrupt retailer Steve & Barry's for
$163 million in August 2008. Steve & Barry's had 240 locations
when it was bought and the new owners had planned to cut that down
to 173 stores. Due to disappointing sales, Steve & Barry's
returned to bankruptcy in November 2008.
BH S&B and its affiliates' Chapter 11 cases are presided over by
the Honorable Martin Glenn. Joel H. Levitin, Esq., and Richard A.
Stieglitz, Jr., Esq., at Cahill Gordon & Reindel LLP, in New York,
serve as bankruptcy counsel to BH S&B and its affiliates. RAS
Management Advisors LLC acts as restructuring advisors, and
Kurtzman Carson Consultants LLC as claims and notice agent.
BIG WASH: Files Schedules of Assets and Liabilities
---------------------------------------------------
Big Wash Investments, LLC, filed with the U.S. Bankruptcy Court
for the Northern District of Georgia its schedules of assets and
liabilities, disclosing:
Name of Schedule Assets Liabilities
---------------- ----------- -----------
A. Real Property $17,000,000
B. Personal Property $382
C. Property Claimed as
Exempt
D. Creditors Holding
Secured Claims $7,357,500
E. Creditors Holding
Unsecured Priority
Claims $170,609
F. Creditors Holding
Unsecured Non-priority
Claims $22,673
----------- -----------
TOTAL $17,000,382 $7,550,782
Atlanta, Georgia-based Big Wash Investments, LLC, filed for
Chapter 11 bankruptcy protection on November 25, 2009 (Bankr. N.D.
Ga. Case No. 09-91279). Hugh O. Nowell, Esq., who has an office
in Atlanta, Georgia, assist the Company in its restructuring
effort. The Company listed $10,000,001 to $50,000,000 in assets
and $1,000,001 to $10,000,000 in liabilities.
BIO-KEY INT'L: CEO DePasquale Sends Letter to Shareholders
----------------------------------------------------------
BIO-key International, Inc., last week sent a letter to
shareholders to inform them of the Company's performance the past
year. CEO Michael W. DePasquale also said the Company's focus in
2010 is to leverage the credibility the Company has with its
strong customer references to expand its revenue opportunities in
the government sector and to go after the larger market
opportunities in the commercial identity and authentication
applications.
On December 21, BIO-key named Cecilia Welch as Vice President and
Chief Financial Officer, replacing Tom Colatosti, BIO-key's
Chairman, who had been acting as interim CFO.
Ms. Welch joined BIO-key in 2007 and has served since then as the
company's Corporate Controller. Ms. Welch has more than 20 years
of operational and financial management experience in the
technology industry. Prior to joining BIO-key, she was Controller
for Savaje Technologies, Crystal Systems and ATN Microwave
(acquired by Agilent Technologies). Ms. Welch holds a Bachelor's
degree in Accounting from Franklin Pierce University.
A full-text copy of the letter signed by Mr. DePasquale is
available at no charge at http://ResearchArchives.com/t/s?4d27
Going Concern Doubt
On March 9, 2009, CCR LLP, in Westborough, Massachusetts,
expressed substantial doubt about the Company's ability to
continue as a going concern after auditing the Company's
consolidated financial statements as of and for the years ended
December 31, 2008, and 2007. The accounting firm pointed to the
Company's substantial net losses in recent years, and accumulated
deficit at December 31, 2008.
At September 30, 2009, the Company's consolidated balance sheets
showed $10.3 million in total assets, $7.8 million in total
liabilities, $469,550 in Series B redeemable convertible preferred
stock, and $4.1 million in Series C redeemable convertible
preferred stock, resulting in a $2.0 million stockholders'
deficit. The Company had an accumulated deficit of approximately
$54.5 million at September 30, 2009.
About BIO-key International
BIO-key International, Inc. (OTC Bulletin Board: BKYI) --
http://www.bio-key.com/-- headquartered in Wall, New Jersey,
develops and delivers advanced identification solutions and
information services to law enforcement departments, public safety
agencies, government and private sector customers.
BIO-RAD LABORATORIES: Moody's Raises Corp. Family Rating to 'Ba1'
-----------------------------------------------------------------
Moody's Investors Service upgraded the Corporate Family Rating and
Probability of Default Rating of Bio-Rad Laboratories, Inc., to
Ba1 from Ba2. Moody's also upgraded the ratings on the company's
senior subordinated notes to Ba2 from Ba3. Concurrently, Moody's
changed the rating outlook to stable from positive.
Moody's had changed Bio-Rad's outlook to positive in May 2009.
Since then, the company has continued to demonstrate solid,
consistent organic revenue growth as well as improved cash flow
generation, despite headwinds from the economic downturn.
Further, Moody's believes the acquisition of certain diagnostic
businesses of Biotest AG (45 million euros) demonstrates a
commitment to a more moderate-sized, tuck-in acquisition strategy,
consistent with a Ba1 rating.
The Ba1 Corporate Family Rating reflects Bio-Rad's scale and
leading competitive position within its core, niche markets. The
ratings are further supported by the recurring nature of roughly
70% of revenues and Bio-Rad's diversified geographic, end-market
and customer base within its niche markets. The rating and stable
outlook also reflect the company's relatively moderate financial
policies, the successful integration of DiaMed and the company's
long history of growth, both organic and through acquisitions.
The ratings are constrained by the company's concentration in two
markets and its modest size relative to investment grade
healthcare peers. Other risks include those associated with the
high exposure to government funding in the Life Science business,
competition from significantly larger competitors and technology
obsolescence.
Ratings upgraded:
* Corporate Family Rating, to Ba1 from Ba2
* Probability of Default Rating,to Ba1 from Ba2
* $225 million Senior Unsecured Subordinated Notes, due 2013, to
Ba2 (LGD4, 64%) from Ba3 (LGD4, 64%)
* $200 million Senior Unsecured Subordinated Notes, due 2014, to
Ba2 (LGD4, 64%) from Ba3 (LGD4, 64%)
* $300 million Senior Unsecured Subordinated Notes, due 2016, to
Ba2 (LGD4, 64%) from Ba3 (LGD4, 64%)
The outlook is stable.
The last rating action was May 19, 2009, when Moody's rated Bio-
Rad's 2016 notes and changed the outlook to positive from stable.
Bio-Rad, based in Hercules, California, manufactures and supplies
life science research, healthcare, analytical chemistry and other
markets with products used to separate, identify, analyze and
purify the components of complex chemical and biological
materials. Bio-Rad reported revenues of $1.74 billion for the
twelve months ended September 30, 2009.
BIRKEL CUSTER: Voluntary Chapter 11 Case Summary
------------------------------------------------
Debtor: Birkel Custer 121 Partners, Ltd.
4297 Camp Cooley Road
Franklin, TX 77856
Bankruptcy Case No.: 10-60022
Chapter 11 Petition Date: January 5, 2010
Court: United States Bankruptcy Court
Western District of Texas (Waco)
Debtor's Counsel: R. Glen Ayers, Jr., Esq.
Langley and Banack, Inc
745 E Mulberry, 9th Floor
San Antonio, TX 78212
Tel: (210) 736-6600
Fax: (210) 735-6889
Email: gayers@langleybanack.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
According to the schedules, the Company has assets of $1,820,000,
and total debts of $1,530,900.
The Debtor did not file a list of its 20 largest unsecured
creditors when it filed its petition.
The petition was signed by Klaus Birkel, director of the Company.
BLUE HERON: Terminates 50 Employees Following Filing
----------------------------------------------------
Blue Heron Paper Co. laid off 50 employees after it filed for
Chapter 11 bankruptcy last week, according to Portland Business
Journal.
Blue Heron Paper Company filed for Chapter 11 on Dec. 31, 2009
(Bankr. D. Ore. Case No. 09-40921). Brandy A. Sargent, Esq.,
represents the Debtor in its restructuring effort. The petition
says that assets and debts both range from $10,000,001 to
$50,000,000.
BRIAN SEPPALA: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------
Joint Debtors: Brian J. Seppala
Amy Robinson Seppala
135 W. McElhaney Road
Taylors, SC 29687
Bankruptcy Case No.: 10-00073
Chapter 11 Petition Date: January 5, 2010
Court: United States Bankruptcy Court
District of South Carolina (Spartanburg)
Judge: Helen E. Burris
Debtors' Counsel: R. Geoffrey Levy, Esq.
2300 Wayne Street
Columbia, SC 29201
Tel: (803) 256-4693
Email: llfecf@levylawfirm.org
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A full-text copy of the Debtors' petition, including a list of
their 20 largest unsecured creditors, is available for free at:
http://bankrupt.com/misc/scb10-00073.pdf
The petition was signed by the Joint Debtors.
BRUCE NEVIASER: Voluntary Chapter 11 Case Summary
-------------------------------------------------
Debtor: Bruce D. Neviaser
7326 Blackhawk Road
Middleton, WI 53562
Bankruptcy Case No.: 10-10062
Chapter 11 Petition Date: January 7, 2010
Court: United States Bankruptcy Court
Western District of Wisconsin,
http://www.wiw.uscourts.gov(Madison)
Judge: Chief Judge Robert D. Martin
Debtor's Counsel: J. David Krekeler, Esq.
15 N. Pinckney Street
P.O. Box 828
Madison, WI 53701-0828
Tel: (608) 258-8555
Email: jdkrek@ks-lawfirm.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $10,000,001 to $50,000,000
The Debtor did not file a list of its 20 largest unsecured
creditors when it filed its petition.
The petition was signed by Mr. Neviaser.
CALIFORNIA COASTAL: Files Schedules of Assets and Liabilities
-------------------------------------------------------------
California Coastal Communities, Inc., filed with the U.S.
Bankruptcy Court for the Central District of California its
schedules of assets and liabilities, disclosing:
Name of Schedule Assets Liabilities
---------------- ----------- -----------
A. Real Property $0
B. Personal Property $4,232,442
C. Property Claimed as
Exempt
D. Creditors Holding
Secured Claims $181,479,317
E. Creditors Holding
Unsecured Priority
Claims $0
F. Creditors Holding
Unsecured Non-priority
Claims $69,076,550
----------- -----------
TOTAL $4,232,442 $250,555,867
California Coastal Communities, Inc., (Nasdaq: CALC) --
http://www.californiacoastalcommunities.com/-- is a residential
land development and homebuilding company operating in Southern
California. The Company's principal subsidiaries are Hearthside
Homes which is a homebuilding company, and Signal Landmark which
owns 105 acres on the Bolsa Chica mesa where sales commenced in
August 2007 at the 356-home Brightwater community. Hearthside
Homes has delivered 2,200 homes to families throughout Southern
California since its formation in 1994.
Irvine, California-based California Coastal Communities, Inc.,
filed for Chapter 11 bankruptcy protection on October 27, 2009
(Bankr. C.D. Calif. Case No. 09-21712). Joshua M. Mester, Esq.,
who has an office in Los Angeles, California, assists the Company
in its restructuring efforts. The Company listed $100,000,001 to
$500,000,000 in assets and $100,000,001 to $500,000,000 in
liabilities.
CANLAND ENTERPRISES: Voluntary Chapter 11 Case Summary
------------------------------------------------------
Debtor: Canland Enterprises, Inc.
20 Ripley Street, Unit 2
Worcester, MA 01610
Bankruptcy Case No.: 10-40037
Chapter 11 Petition Date: January 5, 2010
Court: United States Bankruptcy Court
District of Massachusetts (Worcester)
Judge: Joel B. Rosenthal
Debtor's Counsel: James P. Ehrhard, Esq.
Ehrhard & Associates, P.C.
418 Main Street, 4th Floor
Worcester, MA 01608
Tel: (508) 791-8411
Email: ehrhard@ehrhardlaw.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Debtor did not file a list of its 20 largest unsecured
creditors when it filed its petition.
The petition was signed by Joseph Norford, president of the
Company.
CANWEST GLOBAL: Receives CCAA Protection for LP Units
-----------------------------------------------------
Canwest Global Communications Corp.'s subsidiary Canwest Limited
Partnership / Canwest Societe en Commandite and certain of its
subsidiaries, have voluntarily commenced proceedings under the
Companies' Creditors Arrangement Act, having successfully obtained
an Initial Order from the Ontario Superior Court of Justice.
The LP Entities' CCAA proceedings were undertaken in order to
implement a pre-packaged financial restructuring plan supported by
more than 48% of the Limited Partnership's senior secured debt
holders. The proposed transaction includes an agreement by a new
company incorporated by the senior secured lenders to acquire,
subject to certain exceptions, substantially all of the LP
Entities' integrated newspaper and digital media publishing
businesses, including National Post Inc., if no superior offer
emerges from a comprehensive Sale and Investor Solicitation
Process to be conducted by RBC Capital Markets that will begin
immediately.
Subject to senior secured lender and Court approval, and any
superior offer emerging from the Sale and Investor Process,
shortly after the closing of a transaction, the senior secured
debt will be transferred to a new company incorporated by the
senior lenders in exchange for debt and equity in Acquireco. On
completion of the transaction, the senior secured debt will be
deemed to have satisfied and the $25 million discount will
continue to constitute an outstanding unsecured claim of Acquireco
against the LP Entities.
The CCAA filing applies to Canwest Publishing Inc. / Publications
Canwest Inc., Canwest Books Inc., Canwest (Canada) Inc., and the
Limited Partnership and includes all of Canwest's newspaper
publishing and associated digital media, online and mobile
operations, with the exception of National Post Inc. and its
associated operations.
Day-to-day operations of LP Entities and National Post Inc. will
continue uninterrupted. The LP Entities' operations have
sufficient cash flow to fund their ongoing operations, including
goods and services provided after the filing date. In addition,
the LP Entities have also secured up to $25 million in debtor-in-
possession financing provided by certain LP Entities' senior
secured lenders.
Creditor protection under the CCAA will enable day-to-day
operations to continue while the LP Entities implement an orderly
financial restructuring plan that includes the transition of the
LP Entities' businesses to a new ownership structure. The LP
Entities are firmly committed to moving quickly to complete this
restructuring, so that their businesses can emerge from creditor
protection financially stronger and more competitive.
In accordance with the Initial Order, FTI Consulting Canada Inc.
will serve as the Court-appointed Monitor in the CCAA proceedings
and will report to the Court during the restructuring. The
Monitor will also assist the LP Entities in implementing their
restructuring plan and supervise the Sale and Investor
Solicitation Process.
A special committee of Canwest's Board of Directors will oversee
this process and has retained Gary Colter as a Chief Restructuring
Advisor to lead and manage the LP Entities' restructuring process.
Regular operations will continue to be managed by the LP Entities'
existing management led by its President and CEO, Mr. Skulsky.
About Canwest Global
Canwest Global Communications Corp. (TSX: CGS and CGS.A) --
http://www.canwest.com/-- an international media company, is
Canada's largest media company. In addition to owning the Global
Television Network, Canwest is Canada's largest publisher of
English language daily newspapers and owns, operates and holds
substantial interests in conventional television, out-of-home
advertising, specialty cable channels, web sites and radio
stations and networks in Canada, New Zealand, Australia, Turkey,
Indonesia, Singapore, the United Kingdom and the United States.
On October 6, 2009, Canwest Global, Canwest Media Inc., Canwest
Television Limited Partnership (including Global Television,
MovieTime, DejaView and Fox Sports World), The National Post
Company and certain subsidiaries voluntarily entered into, and
successfully obtained an Order from the Ontario Superior Court of
Justice (Commercial Division) commencing proceedings under the
Companies' Creditors Arrangement Act. The CMI Entities'
commencement of these proceedings was undertaken in furtherance of
a proposed recapitalization transaction that is supported by over
70% of holders of the 8% senior subordinated notes issued by CMI.
On the same day, FTI Consulting Canada Inc., the Court-appointed
Monitor in the CCAA proceedings, sought protection in the United
States Bankruptcy Court under Chapter 15 of the United States
Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 09-15994) for
certain of the entities involved in Canwest's television business
that filed for protection under the CCAA, including Canwest,
Canwest Media Inc. and Canwest Global Broadcasting
Inc./Radiodiffusion Canwest Global Inc.
Judge Stuart M. Bernstein presides over the Chapter 15 cases.
Evan D. Flaschen, Esq., at Bracewell & Giuliani LLP, in Hartford,
Connecticut, serves as Chapter 15 Petitioner's counsel. The
Chapter 15 Debtors disclosed estimated assets of $500 million to
$1 billion and estimated debts of $50 million to $100 million.
In a regulatory filing with the U.S. Securities and Exchange
Commission, Canwest Media disclosed C$4,847,020,000 in total
assets and C$5,826,522,000 in total liabilities at May 31, 2009.
Bankruptcy Creditors' Service, Inc., publishes Canwest Bankruptcy
News. The newsletter tracks the CCAA proceedings and Chapter 15
proceedings undertaken by Canwest Global Communications Corp. and
its affiliates (http://bankrupt.com/newsstand/or 215/945-7000).
CANWEST GLOBAL: LP Entities Have Restructuring Plan
---------------------------------------------------
Canwest Global Communications Corp.'s subsidiary, Canwest Limited
Partnership / Canwest Societe en Commandite (the "Limited
Partnership") and certain of its subsidiaries (collectively, the
"LP Entities"), have entered into an agreement with certain senior
secured lenders to support a pre-packed financial restructuring
plan.
To advance the proposed financial restructuring transaction,
Canwest's Board of Directors has authorized the LP Entities to
voluntarily file today for creditor protection under the
Companies' Creditors Arrangement Act in the Ontario Superior Court
of Justice. The CCAA filing applies to Canwest Publishing Inc. /
Publications Canwest Inc., Canwest Books Inc., Canwest (Canada)
Inc., and the Limited Partnership and includes all of Canwest's
newspaper publishing and associated digital media, online and
mobile operations, with the exception of National Post Inc. and
its associated properties.
The Company and the LP Entities believe that this is the best
course of action because it will address the LP Entities' current
debt level, preserve jobs and protect newspaper publishing brands
that Canadians have come to know and trust over the past 100
years. Creditor protection will enable an orderly financial
restructuring of the LP Entities and ensure they continue as a
stronger, integrated newspaper and digital media publishing
business with a renewed financial outlook.
The proposed financial restructuring transaction is supported by
members of the senior secured lending syndicate representing over
48% in principal amount of the Limited Partnership's senior
secured obligations and represents the culmination of lengthy
arm's length discussions between the LP Entities and their senior
secured lenders. The LP Entities and the senior secured lenders
have entered into a Support Agreement and have negotiated an
Acquisition and Assumption Agreement together with a Plan of
Compromise and Arrangement in respect of the senior secured
lenders' claims, which have been filed with the Court. In
addition, the LP Entities have engaged RBC Capital Markets to
conduct a comprehensive sale and investor solicitation process
within the restructuring proceeding to canvass the market for
superior offers for the business than the one put forth by the AA
Agreement.
The Company believes that the Support Agreement, the proposed
Acquisition and Assumption Agreement and conducting the Sale and
Investor Solicitation Process under Court supervision represent
the best alternative for the long-term interests of the LP
Entities, its approximately 5,300 employees, suppliers, customers
and other stakeholders. Protection under the CCAA will provide
the LP Entities with the time and stability needed to implement a
controlled financial restructuring of their businesses, and to
complete the Sale and Investor Solicitation Process while day-to-
day business operations continue uninterrupted.
The LP Entities' operations will continue uninterrupted during the
financial restructuring with operating cash flow sufficient to
fund ongoing operations. In addition, the LP Entities have
arranged debtor-in-possession financing of up to $25 million from
certain members of the senior secured lenders. The LP Entities
cash flow from operations together with the DIP facility will
enable its business units to meet obligations to current employees
and suppliers of post-filing goods and services.
The Support Agreement, which includes the Plan and the AA
Agreement, must be approved by a majority in number of the senior
secured lenders and two-thirds in amount of their claims. Senior
secured lenders representing 48% of the amount of senior secured
claims have signed a support agreement in which they have agreed
to vote in favor of the Plan which includes any superior cash
offer received in connection with the Sale and Investor Process.
The support of the senior secured lenders for the proposed
financial restructuring transaction and implementation of the plan
is subject to the satisfaction of a number of conditions and the
Support Agreement may be terminated in certain events.
Under the proposed AA Agreement, a new company incorporated by the
senior secured lenders would acquire substantially all of the LP
Entities' assets and assume certain of their operating
liabilities. The AA Agreement contemplates, subject to certain
exceptions, the transfer of substantially all of the LP Entities'
current employees, existing pension plans and existing post-
retirement and post-employment benefit plans to Acquireco.
Subject to senior secured lender and Court approval and any
superior offer emerging from the Sale and Investor Process, the
senior secured debt will be transferred to "Acquireco" in exchange
for debt and equity in Acquireco. On completion of the
transaction, the senior secured debt (less a discount of
$25 million) will be deemed to have satisfied and the $25 million
discount will continue to constitute an outstanding unsecured
claim of Acquireco against the LP Entities.
CW Media Inc.'s industry leading specialty channels are not under
creditor protection. Similarly, TVtropolis, MysteryTV or MenTV
are also not affected by this ruling as they are not under
creditor protection. Other business units, including Canwest
Global Communications Corp., Canwest Media Inc., Canwest
Television Limited Partnership (including Global Television
Network, MovieTime, DejaView and Fox Sports World), remain under
separate CCAA creditor protection granted by the Court on
October 6, 2009.
The LP Entities and their advisors will continue their discussions
with a number of key stakeholders and third parties as they
implement the restructuring and the Sale and Investor Solicitation
Process.
About Canwest Global
Canwest Global Communications Corp. (TSX: CGS and CGS.A) --
http://www.canwest.com/-- an international media company, is
Canada's largest media company. In addition to owning the Global
Television Network, Canwest is Canada's largest publisher of
English language daily newspapers and owns, operates and holds
substantial interests in conventional television, out-of-home
advertising, specialty cable channels, web sites and radio
stations and networks in Canada, New Zealand, Australia, Turkey,
Indonesia, Singapore, the United Kingdom and the United States.
On October 6, 2009, Canwest Global, Canwest Media Inc., Canwest
Television Limited Partnership (including Global Television,
MovieTime, DejaView and Fox Sports World), The National Post
Company and certain subsidiaries voluntarily entered into, and
successfully obtained an Order from the Ontario Superior Court of
Justice (Commercial Division) commencing proceedings under the
Companies' Creditors Arrangement Act. The CMI Entities'
commencement of these proceedings was undertaken in furtherance of
a proposed recapitalization transaction that is supported by over
70% of holders of the 8% senior subordinated notes issued by CMI.
On the same day, FTI Consulting Canada Inc., the Court-appointed
Monitor in the CCAA proceedings, sought protection in the United
States Bankruptcy Court under Chapter 15 of the United States
Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 09-15994) for
certain of the entities involved in Canwest's television business
that filed for protection under the CCAA, including Canwest,
Canwest Media Inc. and Canwest Global Broadcasting
Inc./Radiodiffusion Canwest Global Inc.
Judge Stuart M. Bernstein presides over the Chapter 15 cases.
Evan D. Flaschen, Esq., at Bracewell & Giuliani LLP, in Hartford,
Connecticut, serves as Chapter 15 Petitioner's counsel. The
Chapter 15 Debtors disclosed estimated assets of $500 million to
$1 billion and estimated debts of $50 million to $100 million.
In a regulatory filing with the U.S. Securities and Exchange
Commission, Canwest Media disclosed C$4,847,020,000 in total
assets and C$5,826,522,000 in total liabilities at May 31, 2009.
Bankruptcy Creditors' Service, Inc., publishes Canwest Bankruptcy
News. The newsletter tracks the CCAA proceedings and Chapter 15
proceedings undertaken by Canwest Global Communications Corp. and
its affiliates (http://bankrupt.com/newsstand/or 215/945-7000).
CARLO APPUGLIESE: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------------
Joint Debtors: Carlo A. Appugliese
Kristie Lynn Appugliese
14219 85th Avenue
Seminole, FL 33776
Bankruptcy Case No.: 09-29780
Chapter 11 Petition Date: December 31, 2009
Court: United States Bankruptcy Court
Middle District of Florida (Tampa)
Judge: Catherine Peek McEwen
Debtors' Counsel: Marshall G. Reissman, Esq.
Law Offices of Marshall G. Reissman
5150 Central Ave
St. Petersburg, FL 33707
Tel: (727) 322-1999
Fax: (727) 327-7999
Email: marshall@reissmanlaw.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
According to the schedules, the Company has assets of $1,071,275,
and total debts of $1,977,844.
A full-text copy of the Debtors' petition, including a list of
their 20 largest unsecured creditors, is available for free at:
http://bankrupt.com/misc/flmb09-29780.pdf
The petition was signed by the Joint Debtors.
CBD DEVELOPMENT: Case Summary & 1 Largest Unsecured Creditor
------------------------------------------------------------
Debtor: CBD Development, LLC
41987 Shore Acres Rd.
Loon Lake, WA 99148
Bankruptcy Case No.: 10-00060
Chapter 11 Petition Date: January 7, 2010
Court: United States Bankruptcy Court
Eastern District Of Washington (Spokane/Yakima)
Judge: Patricia C. Williams
Debtor's Counsel: J Craig Barrile, Esq.
PO Box 1189
Deer Park, WA 99006
Tel: (509) 276-7184
Fax: (509) 276-2587
Email: jcbarrile@barrilelaw.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
According to the schedules, the Company has assets of $2,020,000
and total debts of $1,105,563.
The Debtor identified Steven County Treasurer with a debt claim
for $11,621 as its largest unsecured creditor. A full-text copy
of the Debtor's petition, including a list of its largest
unsecured creditor, is available for free at:
http://bankrupt.com/misc/waeb10-00060.pdf
The petition was signed by Charles Lowe, member of the Company.
CELLU TISSUE: Moody's Upgrades Corporate Family Rating to 'B1'
--------------------------------------------------------------
Moody's Investors Service upgraded to B1 from B2 the Corporate
Family Rating, Probability of Default Rating, and the senior
secured notes rating of Cellu Tissue Holdings, Inc. Concurrently,
the ratings outlook was revised to stable from positive and the
Speculative Grade Liquidity Rating of SGL-3 was affirmed.
The upgrade to B1 reflects steady margin expansion and earnings
growth since the fiscal year ended February 28, 2007, resulting in
EBITDA generation considerably higher than previously expected.
As such, Cellu Tissue's key credit metrics have improved
materially and Moody's expects financial leverage to remain below
4 times throughout FY2011. The company continues to strategically
shift its product mix away from hard roll volumes towards higher-
margin converted tissue operations. A majority of these products
are sold to the private label end market, which has experienced
higher growth rates over the past decade than the North American
tissue industry as a whole by steadily taking market share away
from branded products. The ratings are constrained by the
company's relatively small scale and a moderate level of customer
concentration, in which several key customers are also competitors
who could potentially bring these volumes in-house.
The stable outlook reflects Moody's expectation that Cellu Tissue
will continue to maintain an adequate liquidity profile while
shifting its product mix towards tissue converting volumes, which
may result in further growth in margins and EBITDA. However, free
cash flow could be breakeven to slightly negative over the medium
term because of a significant level of planned capital spending to
expand retail converting capacity. For more information, please
refer to the Credit Opinion to be posted on moodys.com.
Moody's raised these ratings (LGD assessment):
* Corporate Family Rating, to B1 from B2
* Probability of Default Rating, to B1 from B2
* $255 million senior secured notes due 2014, to B1 (LGD4, 55%)
from B2 (LGD4, 56%)
Moody's affirmed this rating:
* Speculative Grade Liquidity Rating, SGL-3
The last rating action on Cellu Tissue occurred on May 13, 2009,
when Moody's raised the outlook to positive from stable and
assigned a B2 rating to the proposed senior secured notes due
2014.
Cellu Tissue is a manufacturer of converted tissue products,
tissue hard rolls and machine-glazed paper used in the manufacture
of various end products, including facial and bath tissue,
assorted paper towels and food wraps.
Headquartered in Alpharetta, Georgia, Cellu Tissue reported sales
of $515 million in the twelve months ended November 26, 2009.
CHAMPION ENTERPRISES: U.S. Trustee Picks 5-Member Creditors Panel
-----------------------------------------------------------------
Roberta A. Deangelis, Acting United States Trustee for Region 3,
appointed five members to the official committee of unsecured
creditors in the Chapter 11 cases of Champion Enterprises, Inc.
The Creditors Committee members are:
1. Textron Financial Corporation
Attn: Susan Andersson
11575 Great Oaks Way, Suite 210
Alpharetta, GA 30022
Tel: (770) 777-3370
Fax: (770) 360-1693
2. Wells Fargo Bank, N.A.
Attn: Gordon Gendler
MAC N9311-110, 625 Marquette Avenue
Minneapolis, MN 55479
Tel: (612) 667-7869
Fax: (866) 680-1777
3. Highbridge International LLC
Attn: Jonathan Dorfman
9 West 57th Street, 27th Floor
New York, NY 10019
Tel: (212) 287-4900
Fax: (212) 287-4915
4. Citadel Equity Fund Ltd. & Citadel
Convertible Opportunities Ltd.
Attn: Aloke Agarwal
131 South Dearborn Street
35W 403E, Chicago, IL 60603
Tel: (312) 395-3286
Fax: (312) 267-7630
5. Palace Sports & Entertainment
Attn: Susan L. Greenfield
P.O. Box 79001
Detroit, MI 48279
Tel: (248) 377-0100
Fax: (248) 377-2154
Official creditors' committees have the right to employ legal and
accounting professionals and financial advisors, at the Debtor's
expense. They may investigate the Debtor's business and financial
affairs. Importantly, official committees serve as fiduciaries to
the general population of creditors they represent. Those
committees will also attempt to negotiate the terms of a
consensual Chapter 11 plan -- almost always subject to the terms
of strict confidentiality agreements with the Debtors and other
core parties-in-interest. If negotiations break down, the
Committee may ask the Bankruptcy Court to replace management with
an independent trustee. If the Committee concludes reorganization
of the Debtor is impossible, the Committee will urge the
Bankruptcy Court to convert the Chapter 11 cases to a liquidation
proceeding.
Troy, Michigan-based Champion Enterprises, Inc., and its
subsidiaries are international manufacturers of factory-built
homes and steel-framed modular buildings, with operations in the
United States, Canada and the United Kingdom. Buildings
constructed by Champion and its subsidiaries consist of both
single and multi-module units designed for either commercial or
residential purposes. Champion products range from single-module
HUD-Code homes to sophisticated commercial structures such as
hotels.
The Company filed for Chapter 11 bankruptcy protection on
November 15, 2009 (Bankr. D. Del. Case No. 09-14019). The
Company's affiliates also filed separate bankruptcy petitions.
James E. O'Neill, Esq., Laura Davis Jones, Esq., Mark M. Billion,
Esq., Timothy P. Cairns, Esq., at Pachulski Stang Ziehl & Jones
LLP, assist Champion in its restructuring effort. The Company
listed $576,527,000 in assets and $521,337,000 in liabilities as
of October 3, 2009.
CHANA TAUB: Divorce Proceedings to Continue in State Court
----------------------------------------------------------
WestLaw reports that an individual Chapter 11 debtor-wife's
disagreement with a bankruptcy court's conclusion that the stay
should be lifted to allow a state court to decide what was an
equitable distribution of her and her estranged husband's marital
assets, and her concerns with whether she could obtain a fair
result in state court in light of the husband's alleged "scorched
earth" tactics, did not constitute "exceptional circumstances,"
nor did the debtor, who was attempting to use a motion for
reconsideration simply to reargue points she had already made in
her opposition to the husband's stay relief motion, demonstrate
that bankruptcy court had overlooked any material issue of law or
fact, as required for her to obtain relief from the lift stay
order under "catchall" provision of the Federal Rule of Civil
Procedure governing motions for relief from judgment. In re Taub,
--- B.R. ----, 2009 WL 4847129 (Bankr. E.D.N.Y.).
This is Judge Stong's fourth order attempting to move this
contentious bankruptcy case along. The Troubled Company Reporter
reported about Judge Stong's three earlier orders on Sept. 28,
2009, Oct. 5, 2009, and Oct. 15, 2009.
Chana Taub filed a Chapter 11 petition (Bankr. E.D.N.Y. Case No.
08-44210) on July 1, 2008, and is represented by Dennis W. Houdek,
Esq., in Manhattan.
CHERRY TREE CORP: Case Summary & 6 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: The Cherry Tree Corp.
65 Fourth Ave.
Brooklyn, NY 11211
Bankruptcy Case No.: 10-40092
Chapter 11 Petition Date: January 7, 2010
Court: United States Bankruptcy Court
Eastern District of New York (Brooklyn)
Judge: Carla E. Craig
Debtor's Counsel: Bruce D. Mael, Esq.
Berkman Henoch et al
100 Garden City Plaza-3rd Fl
Garden City, NY 11530
Tel: (516) 222-6200
Email: b.mael@bhpp.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A full-text copy of the Debtor's petition, including a list of its
6 largest unsecured creditors, is available for free at:
http://bankrupt.com/misc/nyeb10-40092.pdf
The petition was signed by James McGown, president of the Company.
CHUGH SHOPPING: Files Schedules of Assets and Liabilities
---------------------------------------------------------
Chugh Shopping Center, Inc., filed with the U.S. Bankruptcy Court
for the Northern District of Georgia its schedules of assets and
liabilities, disclosing:
Name of Schedule Assets Liabilities
---------------- ----------- -----------
A. Real Property $26,100,000
B. Personal Property $144,798
C. Property Claimed as
Exempt
D. Creditors Holding
Secured Claims $17,982,000
E. Creditors Holding
Unsecured Priority
Claims $200,000
F. Creditors Holding
Unsecured Non-priority
Claims $788,900
----------- -----------
TOTAL $26,244,798 $18,970,900
Covington, Georgia-based Chugh Shopping Center, Inc., filed for
Chapter 11 bankruptcy protection on November 3, 2009 (Bankr. N.D.
Ga. Case No. 09-89439). Parmesh N. Dixit, Esq., who has an office
in Atlanta, Georgia, assists the Company in its restructuring
effort. The Company listed $10,000,001 to $50,000,000 in assets
and debts.
CITRUS 278: Files Schedules of Assets and Liabilities
-----------------------------------------------------
Citrus 278, LLC, filed with the U.S. Bankruptcy Court for the
District of Arizona its schedules of assets and liabilities,
disclosing:
Name of Schedule Assets Liabilities
---------------- ----------- -----------
A. Real Property Unknown
B. Personal Property $8,002
C. Property Claimed as
Exempt
D. Creditors Holding
Secured Claims $27,790,222
E. Creditors Holding
Unsecured Priority
Claims $0
F. Creditors Holding
Unsecured Non-priority
Claims $3,118,740
----------- -----------
TOTAL $8,002 $30,908,962
Phoenix, Arizona-based Citrus 278, LLC, is limited liability
company engaged in the business of owning and developing real
property in the State of Arizona. The Company filed for Chapter
11 bankruptcy protection on November 5, 2009 (Bankr. D. Ariz. Case
No. 09-28416). Mark W. Roth, Esq., at Polsinelli Shughart P.C.
assists the Company in its restructuring efforts. The Company
listed $10,000,001 to $50,000,000 in assets and $10,000,001 to
$50,000,000 in liabilities.
CLAIRE'S STORES: Bank Debt Trades at 17% Off in Secondary Market
----------------------------------------------------------------
Participations in a syndicated loan under which Claire's Stores,
Inc., is a borrower traded in the secondary market at 83.13 cents-
on-the-dollar during the week ended Friday, Jan. 8, 2010,
according to data compiled by Loan Pricing Corp. and reported in
The Wall Street Journal. This represents increase of 2.21
percentage points from the previous week, The Journal reports.
The Company pays 275 basis points above LIBOR to borrow under the
facility. The bank loan matures on May 29, 2014, and carries
Moody's Caa2 rating and Standard & Poor's B- rating. The debt is
one of the biggest gainers and losers among 160 widely quoted
syndicated loans with five or more bids in secondary trading for
the week ended Jan. 8, 2010.
Claire's Stores, Inc. -- http://www.clairestores.com/-- operates
as a specialty retailer of fashion accessories and jewelry for
preteens and teenagers, as well as for young adults in North
America and internationally. It offers jewelry products that
comprise costume jewelry, earrings, and ear piercing services; and
accessories, including fashion accessories, hair ornaments,
handbags, and novelty items.
Based in Pembroke Pines, Florida, Claire's Stores operates under
two brands: Claire's(R), which operates worldwide and Icing(R),
which operates only in North America. As of Jan. 31, 2009,
Claire's Stores, Inc., operated 2,969 stores in North America and
Europe. Claire's Stores, Inc., also operates through its
subsidiary, Claire's Nippon, Co., Ltd., 213 stores in Japan as a
50:50 joint venture with AEON, Co., Ltd. The Company also
franchises 198 stores in the Middle East, Turkey, Russia, South
Africa, Poland and Guatemala.
As stated by the Troubled Company Reporter on Sept. 14, 2009,
Claire's Stores, Inc., reported a net loss of $3.733 million for
the three months ended Aug. 1, 2009, from a net loss of
$16.93 million for the three months ended Aug. 2, 2008. The
Company reported a net loss of $32.75 million for the six months
ended Aug. 1, 2009, from a net loss of $52.50 million for the six
months ended Aug. 2, 2008.
At Aug. 1, 2009, the Company had $2.85 billion in total assets;
and $190.73 million in total current liabilities and $2.72 billion
in total long-term and other liabilities, resulting in
$60.10 million in stockholders' deficit.
CLARENCE BUNTING: Case Summary & 12 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Clarence B. Bunting, Jr.
Route 1, Box 150-B
Pinetops, NC 27864
Bankruptcy Case No.: 09-11564
Chapter 11 Petition Date: December 31, 2009
Court: United States Bankruptcy Court
Eastern District of North Carolina (Wilson)
Judge: Randy D. Doub
Debtor's Counsel: Stephen L. Beaman, Esq.
P.O. Box 1907
Wilson, NC 27894
Tel: (252) 237-9020
Fax: (252) 243-5174
Email: sbeaman@beamanlaw.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $10,000,001 to $50,000,000
A full-text copy of the Debtor's petition, including a list of its
12 largest unsecured creditors, is available for free at:
http://bankrupt.com/misc/nceb09-11564.pdf
The petition was signed by Clarence B. Bunting, Jr.
CLARIENT INC: Gemino Healthcare Consents Applied Genomics Deal
--------------------------------------------------------------
Clarient Inc. on December 21, 2009, entered into an amendment to
its credit agreement with Gemino Healthcare Finance, LLC. The
Fourth Amendment:
-- provides Gemino's consent to the Merger as required under
the terms of the Gemino Facility,
-- joins Applied Genomics, Inc., to the Gemino Facility as a
"Borrower,"
-- confirms the indebtedness of the Company and its
subsidiaries under the Gemino Facility as of December 18,
2009, and
-- includes customary representations and warranties relating
to the Fourth Amendment and certain accompanying loan
documents.
In addition, AGI granted Gemino a security interest in all of
AGI's accounts receivable and related assets to secure the
obligations of Clarient and its subsidiaries, including AGI, under
the Gemino Facility.
The Troubled Company Reporter has said Clarient on December 21,
2009, entered into an Agreement and Plan of Merger and
Reorganization with Clarient Acquisition Corporation, a wholly
owned subsidiary of the Company, AGI, certain stockholders of AGI
and Robert S. Seitz, as the representative of the AGI
stockholders. In accordance with the terms of the Merger
Agreement, Merger Sub merged with and into AGI, the separate
existence of Merger Sub ceased and AGI survived the Merger as a
wholly owned subsidiary of the Company. The closing of the Merger
occurred on December 21, 2009.
Gemino Healthcare Waiver
On November 13, 2009, Clarient entered into an amendment to its
credit agreement dated July 31, 2008, with Gemino Healthcare
Finance, LLC. The Company was not in compliance with the minimum
"fixed charge coverage ratio" covenant as of September 30, 2009.
Under the amendment, the Company obtained a waiver of non-
compliance from Gemino Healthcare. The Amendment extended the
maturity date of the Gemino Facility from January 31, 2010, to
January 31, 2011.
About Clarient
Clarient, Inc., and its wholly owned subsidiaries comprise an
advanced oncology diagnostic services company, headquartered in
Aliso Viejo, California.
At September 30, 2009, the Company had $51,316,000 in total assets
against total current liabilities of $14,153,000, long-term
capital lease obligations of $806,000, deferred rent and other
non-current liabilities of $3,177,000, and redeemable Series A
convertible preferred stock of $38,586,000; resulting in
stockholders' deficit of $5,406,000.
CMR MORTGAGE: Court to Consider Plan Outline on January 29
----------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of California
will consider at a hearing on January 29, 2010, at 9:30 a.m., the
approval of CMR Mortgage Fund II, LLC, and CMR Mortgage Fund III,
LLC's proposed Disclosure Statement for their Chapter 11 Plan.
The hearing will be held at 235 Pine Street, Floor, San Francisco,
California.
The Debtors will begin soliciting votes on the Plan following
approval of the adequacy of the information in the Disclosure
Statement.
As reported in the Troubled Company Reporter on Oct. 23, 2009, the
Plan provides that substantially all secured and unsecured
creditors will be paid in full over a maximum seven-year term,
members of the Debtors will retain their membership interests or
voluntarily exchange the interests for debt as provided for in the
Plan, and the Debtors will eventually begin to return capital to
members of the Debtors.
Distributions under the Plan will be funded by sales or Joint
Ventures of real property, loans secured by real property and
payoffs by borrowers. There are only two secured claims against
assets held by CMR Fund II, which claims will be paid from the
proceeds of the sale or refinance of the underlying assets or
satisfied by forfeiture of the assets. There are no secured
claims against assets held by CMR Fund III.
The Debtors intend to obtain DIP Financing in order to fund
business operations, however, the DIP Financing will not be used
to make distributions under the Plan.
The Plan further provides that the Debtors will restructure their
members' equity interests and reduce the number of members of each
Debtor to less than 300 in order to enable the Debtors to
terminate the requirement to register their securities with
Section 12(g)(4) of the Securities and Exchange Act of 1934 and to
file reports as a public company.
In order to accomplish the restructuring, the Debtors will offer
some or all members the option of exchanging their membership
interest for unsecured debt.
Imperial Capital Bank will retain its lien against the Sand City
Property. CMR Fund II intends to sell or refinance the Sand City
Property and pay Imperial Capital Bank's Allowed Secured Claim in
full. Imperial Capital Bank holds a first priority lien against
the Sand City Property. In addition to the lien which was
foreclosed upon, CMR Fund II holds a second position lien against
the Sand City Property in the amount of $10,000,000. A third
position lien against the Sand City Property in the amount of
$10,000,000 is jointly held by CMR Fund I (97%) and CMR Fund III
(3%).
The Plan also proposes that CMR Income Fund, LLC, a California
limited liability company, and Wells Fargo Foothill, Inc. will
retain their jointly-held lien against Fund II's lien against the
Wheatland Property and its membership interests in Wheatland
Holdings. CMR Fund II intends to sell or refinance the Wheatland
Property and pay the Allowed Class 2A Claim in full. Income Fund
and Wells Fargo Foothill, Inc. hold a lien in the amount of
$23,333,777 against CMR Fund II's lien against the Wheatland
Property and its membership interest in Wheatland Holdings.
A full-text copy of the Debtor's Disclosure Statement is available
for free at http://bankrupt.com/misc/CMRMortgage_DS.pdf
A full-text copy of the Debtor's Joint Plan of Reorganization is
available for free at:
http://bankrupt.com/misc/CMRMortgage_JointPlan.pdf
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 and CMR Mortgage Fund III, LLC, filed for Chapter 11
protection on March 31, 2009 (Bankr. N. D. Calif. Case No. 09-
30788 and 09-30802). 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.
COHARIE HOG: Files Schedules of Assets and Liabilities
------------------------------------------------------
Coharie Hog Farm, Inc., filed with the U.S. Bankruptcy Court for
the Eastern District of North Carolina its schedules of assets and
liabilities, disclosing:
Name of Schedule Assets Liabilities
---------------- ----------- -----------
A. Real Property $8,453,875
B. Personal Property $42,909,224
C. Property Claimed as
Exempt
D. Creditors Holding
Secured Claims $43,039,684
E. Creditors Holding
Unsecured Priority
Claims $0
F. Creditors Holding
Unsecured Non-priority
Claims $8,392,622
----------- -----------
TOTAL $51,363,099 $51,432,306
Clinton, North Carolina based Coharie Hog Farm, Inc., says it has
been one of the largest swine producers in the U.S., supplying
more than 500,000 hogs a year to a plant operated by Smithfield
Foods Inc. It produced more than 140 million pounds of pork
annually. The closely held operation has six storage facilities
with 3.9 million bushels of capacity. The business used more than
100 contract farmers to raise hogs for market. Anne Faircloth
owns 75% of the Company and Nelson Waters owns the remaining
quarter.
Coharie Hog Farm filed for Chapter 11 on Nov. 6, 2009 (Bankr. E.D.
N.C. Case No. 09-09737). Terri L. Gardner, Esq., at Nelson Mullins
Riley & Scarborough, LLP, represents the Debtor in its Chapter 11
effort. The petition says assets and debts range from $10,000,001
to $50,000,000.
COLONIAL BANCORP: Judge Won't Extend Automatic Stay
---------------------------------------------------
Law360 reports that a federal judge has refused to extend an
automatic stay to all defendants in a consolidated securities
lawsuit alleging bankrupt Colonial BancGroup Inc. misled investors
about its subprime lending practices.
Headquartered in Montgomery, Alabama, The Colonial BancGroup, Inc.
(NYSE: CNB) was holding company to Colonial Bank, N.A, its
banking subsidiary. Colonial bank -- http://www.colonialbank.com/
-- operated 354 branches in Florida, Alabama, Georgia, Nevada and
Texas with over $26 billion in assets. On August 14, 2009,
Colonial Bank was seized by regulators and the Federal Deposit
Insurance Corporation was named receiver. The FDIC sold most of
the assets to Branch Banking and Trust, Winston-Salem, North
Carolina. BB&T acquired $22 billion in assets and assumed
$20 billion in deposits of the Bank.
Colonial BancGroup filed for Chapter 11 bankruptcy protection on
August 25, 2009 (Bankr. M.D. Ala. Case No. 09-32303). W. Clark
Watson, Esq., at Balch & Bingham LLP and Rufus T. Dorsey IV,
Esq., at Parker Hudson Rainer & Dobbs LLP, assist the Company in
its restructuring effort. The Company listed $45,000,000 in
assets and $380,000,000 in debts in its bankruptcy filing.
COMMERCIAL CAPITAL: James Markus Appointed as Chapter 11 Trustee
----------------------------------------------------------------
The U.S. Trustee for Region 19 appointed James Markus as
Chapter 11 trustee for Commercial Capital, Inc., and its
affiliate, CCI Funding I, LLC's Chapter 11 cases.
As reported in the Troubled Company Reporter on Nov. 11, 2009,
the Hon. Michael E. Romero of the U.S. Bankruptcy Court for the
District of Colorado directed the U.S. Trustee to appoint a
Chapter 11 trustee in the cases of the Debtors.
Greenwood Village, Colorado-based Commercial Capital, Inc. --
http://www.commercialcapitalinc.com/-- and its affiliate, CCI
Funding I, LLC, are commercial real estate lenders and investment
partners engaging in short-term commercial mortgage. Commercial
Capital and CCI Funding filed separate petitions for Chapter 11 on
April 22, 2009, and April 24, 2009, respectively (Bankr. D. Colo.
Lead Case No. 09-17238). Robert Padjen, Esq., at Laufer and
Padjen LLC, assists Commercial Capital in its restructuring
efforts. In its bankruptcy petition, Commercial Capital listed
between $100 million and $500 million in assets, and between
$50 million and $100 million in debts. CCI Funding listed between
$100 million and $500 million each in assets and debts.
COOPER-STANDARD: FTI's Monthly Fees Hiked to $250,000
-----------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware authorized
the Official Committee of Unsecured Creditors in Cooper-Standard
Holdings Inc. and its affiliated debtors to increase the monthly
fees of its financial adviser, FTI Consulting Inc., from $200,000
to $250,000 for the period November 14, 2009, to March 31, 2010.
The Court previously approved the Creditors Committee's initial
request that FTI Consulting be paid $250,000 per month for the
first three months of its employment, $200,000 per month for the
next six months, and $150,000 per month thereafter.
The Creditors Committee retained FTI Consulting as its financial
adviser effective August 13, 2009.
About Cooper-Standard
Cooper-Standard Automotive Inc. -- http://www.cooperstandard.com/
-- headquartered in Novi, Michigan, is a leading global automotive
supplier specializing in the manufacture and marketing of systems
and components for the automotive industry. Products include body
sealing systems, fluid handling systems and NVH control systems.
The Company is one of the leading suppliers of chassis products in
North America, with about 14% of market share. The Company's main
customers include Ford Motor Company, General Motors, Chrysler,
Audi, Volkswagen, BMW, Fiat and Honda, among other automakers.
Cooper-Standard Automotive employs approximately 16,000 people
globally with more than 70 facilities throughout the world.
Cooper-Standard is a privately held portfolio company of The
Cypress Group and Goldman Sachs Capital Partners Funds.
Cooper-Standard Holdings Inc., together with affiliates, filed for
Chapter 11 on August 4, 2009 (Bankr. D. Del. Case No. 09-12743).
Attorneys at Fried, Frank, Harris, Shriver & Jacobson LLP and
Richards, Layton & Finger, P.A., will serve as bankruptcy counsel
to the Debtors. Lazard Freres & Co. is serving as investment
banker while Alvarez & Marsal is financial advisor. Kurtzman
Carson Consultants LLC is notice, claims and solicitation agent.
In its bankruptcy petition, the Company said that assets on a
consolidated basis total $1,733,017,000 while debts total
$1,785,039,000 as of March 31, 2009.
The Company's Canadian subsidiary, Cooper-Standard Automotive
Canada Limited, also sought relief under the Companies' Creditors
Arrangement Act in the Ontario Superior Court of Justice in
Toronto, Ontario, Canada.
Bankruptcy Creditors' Service, Inc., publishes Cooper-Standard
Bankruptcy News. The newsletter tracks the Chapter 11 and CCAA
proceedings undertaken by Cooper-Standard Holdings Inc. and its
various affiliates. (http://bankrupt.com/newsstand/or 215/945-
7000)
COOPER-STANDARD: Inks Confidentiality Agreement With Noteholder
---------------------------------------------------------------
In a regulatory filing with the U.S. Securities and Exchange
Commission, Cooper-Standard Holdings Inc. said that in connection
with discussions with various noteholders, the Company has
disclosed certain material nonpublic information to certain
holders of its 7% Senior Notes due 2012 and 8-3/8% Senior
Subordinated Notes due 2014 pursuant to the confidentiality
agreements that it has entered into with the noteholders.
CSHI said that pursuant to a confidentiality agreement it entered
into with a particular noteholder, the company is required to
publicly disclose the material nonpublic information it
previously provided to the noteholder in order to release that
noteholder from trading restrictions resulting from its
possession of such information.
The material nonpublic information includes a summary of
financial projections for 2009 and 2010, a copy of which is
available for free at http://ResearchArchives.com/t/s?4c5b
About Cooper-Standard
Cooper-Standard Automotive Inc. -- http://www.cooperstandard.com/
-- headquartered in Novi, Michigan, is a leading global automotive
supplier specializing in the manufacture and marketing of systems
and components for the automotive industry. Products include body
sealing systems, fluid handling systems and NVH control systems.
The Company is one of the leading suppliers of chassis products in
North America, with about 14% of market share. The Company's main
customers include Ford Motor Company, General Motors, Chrysler,
Audi, Volkswagen, BMW, Fiat and Honda, among other automakers.
Cooper-Standard Automotive employs approximately 16,000 people
globally with more than 70 facilities throughout the world.
Cooper-Standard is a privately held portfolio company of The
Cypress Group and Goldman Sachs Capital Partners Funds.
Cooper-Standard Holdings Inc., together with affiliates, filed for
Chapter 11 on August 4, 2009 (Bankr. D. Del. Case No. 09-12743).
Attorneys at Fried, Frank, Harris, Shriver & Jacobson LLP and
Richards, Layton & Finger, P.A., will serve as bankruptcy counsel
to the Debtors. Lazard Freres & Co. is serving as investment
banker while Alvarez & Marsal is financial advisor. Kurtzman
Carson Consultants LLC is notice, claims and solicitation agent.
In its bankruptcy petition, the Company said that assets on a
consolidated basis total $1,733,017,000 while debts total
$1,785,039,000 as of March 31, 2009.
The Company's Canadian subsidiary, Cooper-Standard Automotive
Canada Limited, also sought relief under the Companies' Creditors
Arrangement Act in the Ontario Superior Court of Justice in
Toronto, Ontario, Canada.
Bankruptcy Creditors' Service, Inc., publishes Cooper-Standard
Bankruptcy News. The newsletter tracks the Chapter 11 and CCAA
proceedings undertaken by Cooper-Standard Holdings Inc. and its
various affiliates. (http://bankrupt.com/newsstand/or 215/945-
7000)
COOPER-STANDARD: Liquidity Solutions Buys Claims
------------------------------------------------
The Office of the Clerk of the Bankruptcy Court received notices
of transfer of claims in Cooper-Standard Holdings Inc.'s Chapter
11 cases from December 24 to 28, 2009:
Claim Claim
Transferors Transferees Number Amount
----------- ----------- ------ -------
Advanced Systems Liquidity Solutions Inc. 272 $2,250
Computer
AGC Chemicals America Liquidity Solutions Inc. 525 $6,010
Michigan Office Liquidity Solutions Inc. -- $1,856
Solution
Powell Company Liquidity Solutions Inc. 815 $4,373
Ltd-Chemstation
Shambaugh & Son LP Liquidity Solutions Inc. 273 $35,586
Toledo Blueprint & Liquidity Solutions Inc. -- $14,300
Paper
Transmatic Liquidity Solutions Inc. 557 $65,197
About Cooper-Standard
Cooper-Standard Automotive Inc. -- http://www.cooperstandard.com/
-- headquartered in Novi, Michigan, is a leading global automotive
supplier specializing in the manufacture and marketing of systems
and components for the automotive industry. Products include body
sealing systems, fluid handling systems and NVH control systems.
The Company is one of the leading suppliers of chassis products in
North America, with about 14% of market share. The Company's main
customers include Ford Motor Company, General Motors, Chrysler,
Audi, Volkswagen, BMW, Fiat and Honda, among other automakers.
Cooper-Standard Automotive employs approximately 16,000 people
globally with more than 70 facilities throughout the world.
Cooper-Standard is a privately held portfolio company of The
Cypress Group and Goldman Sachs Capital Partners Funds.
Cooper-Standard Holdings Inc., together with affiliates, filed for
Chapter 11 on August 4, 2009 (Bankr. D. Del. Case No. 09-12743).
Attorneys at Fried, Frank, Harris, Shriver & Jacobson LLP and
Richards, Layton & Finger, P.A., will serve as bankruptcy counsel
to the Debtors. Lazard Freres & Co. is serving as investment
banker while Alvarez & Marsal is financial advisor. Kurtzman
Carson Consultants LLC is notice, claims and solicitation agent.
In its bankruptcy petition, the Company said that assets on a
consolidated basis total $1,733,017,000 while debts total
$1,785,039,000 as of March 31, 2009.
The Company's Canadian subsidiary, Cooper-Standard Automotive
Canada Limited, also sought relief under the Companies' Creditors
Arrangement Act in the Ontario Superior Court of Justice in
Toronto, Ontario, Canada.
Bankruptcy Creditors' Service, Inc., publishes Cooper-Standard
Bankruptcy News. The newsletter tracks the Chapter 11 and CCAA
proceedings undertaken by Cooper-Standard Holdings Inc. and its
various affiliates. (http://bankrupt.com/newsstand/or 215/945-
7000)
CORD BLOOD AMERICA: CEO Schissler, COO Vicente Receive Options
--------------------------------------------------------------
Cord Blood America, Inc., reports that effective December 31,
2009, the Board of Directors acted, in each case with the
conflicted director abstaining, to compensate key Executive
Officers of the Company for past services completed, by the
issuance of stock options to acquire the Company's common stock.
The options granted are vested immediately, have a 10-year term,
or through December 31, 2019, and are exercisable at an exercise
price of $0.0114 per share, which was the closing stock bid price
for the Company's common stock on December 31, 2009.
These Options were granted for past services to these key
Executive Officers as bonus compensation for the periods indicated
on December 31, 2009:
Recipient Period of Service Options Granted
--------- ----------------- ---------------
CEO Matthew Schissler 2009 121,464,500
COO Joseph Vicente 2009 60,732,250
The value of the options so issued cannot be calculated as of
January 7, 2010, since they have been issued at the closing bid
price of the Company's common stock on the date of grant,
December 31, 2009.
The Options provide for cashless exercise, permitting the
recipient to surrender any Options whose exercise price are below
the market price for the Company's stock, and received a credit
for the difference between each surrendered option's exercise
price and the market price for the Company's common stock on the
date of Option surrender. The credit is then applied against
payment of the exercise price for other Options turned in for
exercise.
The number of shares of common stock which may be purchased upon
exercise of these Options, and the exercise price, is subject to
adjustment in the event of stock splits, stock dividends, merger,
reorganization or recapitalization.
Effective December 31, 2009, the Board of Directors acted, in each
case with the conflicted director abstaining, to provide incentive
compensation to the Company's key Executive Officers for 2010, by
the issuance of unvested stock options to acquire the Company's
common stock which vest on December 31, 2010, provided the key
employee is then employed by the Company.
The incentive options were issued to these key Executive Officers:
Recipient Vesting Date Options Granted
--------- ------------ ---------------
Matthew Schissler December 31, 2010 121,464,500
Joseph Vicente December 31, 2010 60,732,250
The value of the options so issued cannot be calculated as of
January 7, 2010, since they have been issued at the closing bid
price of the Company's common stock on the date of grant,
December 31, 2009, and will not vest until December 31, 2010.
The Options provide for cashless exercise, permitting the
recipient to surrender any Options, once vested, whose exercise
price are below the market price for the Company's stock, and
received a credit for the difference between each surrendered
option's exercise price and the market price for the Company's
common stock on the date of Option surrender. The credit is then
applied against payment of the exercise price for other Options
turned in for exercise.
The number of shares of common stock which may be purchased upon
exercise of these Options, and the exercise price, is subject to
adjustment in the event of stock splits, stock dividends, merger,
reorganization or recapitalization.
On December 16, 2009, Cord Blood America said it has reduced its
debt by a total of $1.4 million so far in the fourth quarter of
2009 and total debt eliminated for the year now tops $10 million.
Going Concern
CBAI, in its financial report on Form 10-Q for the quarter ended
September 30, 2009, filed with the Securities and Exchange
Commission, said it has experienced recurring net losses from
operations, which losses have caused an accumulated deficit of
roughly $30.9 million as of September 30, 2009. In addition, CBAI
has a working capital deficit of roughly $5.3 million as of
September 30, 2009. These factors, among others, raise
substantial doubt about CBAI's ability to continue as a going
concern.
At September 30, 2009, CBAI had $4.2 million in total assets
against $5.5 million in total liabilities, resulting in
$1.2 million in stockholders' deficit. At September 30, 2009,
CBAI had $158,164 in cash.
About Cord Blood America
Based in Las Vegas, Nevada, Cord Blood America, Inc., is primarily
a holding company whose subsidiaries include Cord Partners, Inc.,
CorCell Co. Inc., CorCell Ltd.; CBA Professional Services, Inc.
D/B/A BodyCells, Inc.; CBA Properties, Inc.; and Career Channel
Inc, D/B/A Rainmakers International. Cord specializes in
providing private cord blood stem cell preservation services to
families. BodyCells is a developmental stage company and intends
to be in the business of collecting, processing and preserving
peripheral blood and adipose tissue stem cells allowing
individuals to privately preserve their stem cells for potential
future use in stem cell therapy. Properties was formed to hold
the corporate trademarks and other intellectual property of CBAI.
Rain specializes in creating direct response television and radio
advertising campaigns, including media placement and commercial
production.
COTTAGE VILLAGE: Case Summary & Unsecured Creditor
--------------------------------------------------
Debtor: Cottage Village, LLC
136 Evelyn's Way
Hartwell, GA 30643
Bankruptcy Case No.: 10-30027
Chapter 11 Petition Date: January 5, 2010
Court: United States Bankruptcy Court
Middle District of Georgia (Athens)
Judge: Ernest M. Robles
Debtor's Counsel: Ernest V. Harris, Esq.
P.O. Box 1586
Athens, GA 30603
Tel: (706) 613-1953
Fax: (706) 613-0053
Email: ehlaw@bellsouth.net
Estimated Assets: Not Stated
Estimated Debts: $100,001 to $500,000
The Debtor identified Larry Torrence with a debt claim for an
$150,000 as its largest unsecured creditor. A full-text copy of
the Debtor's petition, including a list of its largest unsecured
creditor, is available for free at:
http://bankrupt.com/misc/gamb10-30027.pdf
The petition was signed by Larry Torrence, manager of the Company.
COUNTRYWIDE FINANCIAL: Wilmer Cutler Withdraws as Mozilo Counsel
----------------------------------------------------------------
Amanda Bronstad at The National Law Journal reports that Wilmer
Cutler Pickering Hale and Dorr is no longer representing Angelo
Mozilo in the U.S. Securities and Exchange Commission's lawsuit
against the founder of Countrywide Financial Corp.
Law Journal relates that on December 18, Wilmer filed a motion to
withdraw as counsel for Mr. Mozilo in the case. A team led by
William McLucas, chairman of Wilmer's securities practice, and
Joseph Brenner, co-vice chairman of the securities practice, had
represented Mr. Mozilo. They are partners in the firm's
Washington, D.C., office who previously advised special committees
associated with Enron Corp.
Law Journal recalls that in June, the SEC charged Mr. Mozilo,
former President and Chief Operating Officer David Sambol and
former Chief Financial Officer Eric Sieracki with securities
fraud. The SEC claims that all three misled investors into
believing that Countrywide was in good financial health, even as
they discussed in internal e-mails numerous problems with its
riskier loans. Bank of America Corp. purchased Countrywide in
2008.
Law Journal continues that the SEC also charged Mr. Mozilo, who
was Countrywide's chairman and chief executive until 2008, with
insider trading related to his sale of options totaling roughly
$140 million.
U.S. District Judge John Walter of the Central District of
California on November 3 denied motions to dismiss filed by all
three former Countrywide executives.
According to Law Journal, Mr. McLucas declined comment. Mr.
Brenner did not return a call for comment.
Mr. Mozilo also had been represented by Wilmer partner David
Marcus and senior associate Caroline Kane, both in Los Angeles.
They declined comment.
Law Journal says Mr. Mozilo continues to be represented by a team
at Irell & Manella led by Los Angeles partners Daniel Lefler and
David Siegel, who is head of the firm's securities litigation
practice. Neither returned a call for comment.
About Countrywide Financial
Based in Calabasas, California, Countrywide Financial Corporation
(NYSE: CFC) -- http://www.countrywide.com/-- is a diversified
financial services provider and a member of the S&P 500, Forbes
2000 and Fortune 500. Through its family of companies,
Countrywide originates, purchases, securitizes, sells, and
services residential and commercial loans; provides loan closing
services such as credit reports, appraisals and flood
determinations; offers banking services which include depository
and home loan products; conducts fixed income securities
underwriting and trading activities; provides property, life and
casualty insurance; and manages a captive mortgage reinsurance
company.
As reported in the Troubled Company Reporter on July 2, 2008, BofA
completed its purchase of Countrywide for $2.5 billion. The
mortgage lender was originally priced at $4 billion, but the
purchase price eventually was whittled down to $2.5 billion based
on BofA's stock prices that fell over 40% since the time it agreed
to buy the ailing lender.
CROWN CASTLE: Moody's Assigns 'Ba2' Rating on $400 Mil. Loan
------------------------------------------------------------
Moody's Investors Service assigned a Ba2 rating to the new
$400 million senior secured revolving credit facility, due
September 30, 2013, of Crown Castle Operating Corp., a wholly-
owned subsidiary of Crown Castle International Corp. As part of
the rating action, the company's Ba2 corporate family and
probability of default ratings were affirmed.
Concurrent with the extension of the revolver Moody's also
affirmed the company's SGL-1 short-term liquidity rating
(indicating very good liquidity), which is further supported by
the facility's upsize and the multi-year maturity extension.
Rating Actions:
Assignments:
Issuer: Crown Castle Operating Company
-- Senior Secured Bank Credit Facility, Assigned Ba2 LGD4, 60%
Changes:
Issuer: CC Holdings GS V LLC
-- Senior Secured Regular Bond/Debenture, Downgraded to Baa3
LGD2, 23% from Baa3 LGD2, 13%
Issuer: Crown Castle International Corp.
-- Senior Unsecured Regular Bond/Debenture, Downgraded to B1
LGD6, 92% from B1 LGD5, 86%
Issuer: Crown Castle Operating Company
-- Senior Secured Bank Credit Facility, Downgraded to Ba2 LGD4,
60% from Ba2 LGD4, 50%
CCIC's Ba2 corporate family rating reflects the company's position
as the leading tower operator with a strong operational profile
and the ability to generate significant free cash flow in the
absence of shareholder distributions. The Ba2 CFR also reflects
the significant proportion of revenues that CCIC derives under
contractual agreements with the largest U.S. wireless operators.
This affords great stability in the company's revenue stream as
manifest in the 8% growth witnessed for the LTM period ended
September 30, 2009, even in the face of weak general economic
conditions. The Ba2 CFR, however, continues to be constrained by
the company's high absolute debt load and elevated Debt/EBITDA
leverage relative to peers.
Prospective future positive rating migration of the CFR will
subsequently be largely influenced by a reduction in the absolute
level of the company's balance sheet debt, while the individual
debt instruments are subject to potential near-term variability
especially if they are in close proximity to the expected loss
assumptions underlying the rating breakpoints in Moody's Loss
Given Default rating framework for high-yield corporates, as well
as dependent on the specific levels of debt at various legal
entities.
In rating CCIC's senior unsecured debt instruments, Moody's has
taken a forward look with respect to the composition of the
company's debt obligations. As CCIC's securitization facilities
face mandatory amortization traps, and the company's preferred
stock issue becomes due in 2012, it is probable that traditional
debt financing may be used to satisfy these repayment obligations,
which may cause further changes in the capital structure and lead
to near-term ratings volatility among the individual instruments.
Consequently and of particular note, the senior secured credit
facilities of CCOC are rated Ba2 (LGD4-60%) and the senior secured
notes of CC Holdings GS LLC debt are rated Baa3 (LGD2-23%), each
one notch higher than the LGD methodology-implied ratings for
these instruments due to Moody's adjustments to the LGD framework
in order to reflect the perceived collateral coverage of these
debt obligations relative to the overall waterfall of debts,
including the securitizations.
Moody's most recent rating action was on October 20, 2009, at
which time Moody's assigned a B1 rating to the company's new
senior unsecured notes.
DAMOPA INVESTMENTS LLC: Case Summary & 12 Largest Unsec. Creditors
------------------------------------------------------------------
Debtor: Damopa Investments, LLC
4499 E. Thomas Road, Unit 2020
Phoenix, AZ 85018
Bankruptcy Case No.: 09-33936
Chapter 11 Petition Date: December 31, 2009
Court: United States Bankruptcy Court
District of Arizona (Phoenix)
Debtor's Counsel: Robert M. Cook, Esq.
Law Offices Of Robert M. Cook PLLC
219 W Second St
Yuma, AZ 85364
Tel: (928) 782-7771
Fax: (928) 782-7778
Email: robertmcook@yahoo.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A full-text copy of the Debtor's petition, including a list of its
12 largest unsecured creditors, is available for free at:
http://bankrupt.com/misc/azb09-33936.pdf
The petition was signed by Patrick Gillihan and/or Monika Catlin,
partners of the Company.
DBSD NORTH: Accuses Sprint of Trying to Derail Ch. 11 Plan
----------------------------------------------------------
Law360 reports that DBSD North America Inc. has called out Sprint
Nextel Corp. over its appeal of a bankruptcy court order
confirming DBSD's Chapter 11 reorganization plan, saying the
telecommunications giant is picking a fight in order to extort
more recovery than it is entitled to.
Headquartered in Reston, Virginia, DBSD North America Inc. aka ICO
Member Services Inc. offers satellite communications services.
It has launched a satellite, but is in the developmental stages of
creating a satellite system with components in space and on earth.
It presently has no revenues.
The Company and nine of its affiliates filed for Chapter 11
protection on May 15, 2009 (Bankr. S.D.N.Y. Lead Case No.
09-13061). James H.M. Sprayregen, Esq., Christopher J. Marcus,
Esq., at Kirkland & Ellis LLP, in New York; and Marc J. Carmel,
Esq., Sienna R. Singer, Esq., at Kirkland & Ellis LLP, in Chicago,
serve as the Debtors' counsel. Jefferies & Company is the
proposed financial advisors to the Debtors. The Garden City Group
Inc. is the court-appointed claims agent for the Debtors. When
the Debtors sought for protection from their creditors, they
listed between $500 million and $1 billion each in assets and
debts.
DEAN FOODS: Bank Debt Trades at 3% Off in Secondary Market
----------------------------------------------------------
Participations in a syndicated loan under which Dean Foods is a
borrower traded in the secondary market at 96.83 cents-on-the-
dollar during the week ended Friday, Jan. 8, 2010, according to
data compiled by Loan Pricing Corp. and reported in The Wall
Street Journal. This represents increase of 1.83 percentage
points from the previous week, The Journal reports. The debt
matures on March 22, 2014. The Company pays 175 basis points
above LIBOR to borrow under the loan facility and it carries
Moody's B1 rating and Standard & Poor's BB rating. The debt is
one of the biggest gainers and losers among 160 widely quoted
syndicated loans with five or more bids in secondary trading for
the week ended Jan. 8, 2010.
Dean Foods Company is the largest processor and distributor of
milk and various other dairy products in the United States, with
dairy operations accounting for around 79% of its net sales in
FY2008. The company also markets and sells a variety of branded
dairy and dairy-related products including, Silk soymilk and
cultured soy products, Horizon Organic dairy products,
International Delight coffee creamers and LAND O'LAKES creamers
and fluid dairy products. Headquartered in Dallas, Texas, Dean
Foods had sales in the last twelve months ending March 31, 2009,
of approximately $12.1 billion.
Dean Foods carries a 'B1' corporate family rating from Moody's.
DEL MONTE: Moody's Raises Corp. Family Rating to 'Ba2'
------------------------------------------------------
Moody's Investors Service upgraded the corporate family rating of
Del Monte Corporation to Ba2 from Ba3 and assigned a (P)Baa3
rating to its proposed $1.1 billion of senior secured bank
facilities. Correspondingly, Moody's upgraded the company's other
credit ratings by one notch, and upgraded its speculative grade
liquidity rating to SGL-2 from SGL-3. The rating outlook is
stable.
The proposed senior secured facilities, consisting of a
$500 million revolving credit facility and a $600 million term
loan facility, will replace $1.3 billion of existing senior
secured bank facilities.
The debt ratings upgrade reflects Del Monte's stable operating
performance, improved capital structure, and reducing financial
leverage over the past year following the divestiture of its
canned seafood business. It also incorporates Moody's expectation
that despite intensifying competition in core segments, cash flow
should remain strong over the next two years, leading to further
positive credit trends. Finally, the rating action assumes that
the bank debt refinancing is completed as proposed.
"Del Monte's pricing and promotion strategy has held up reasonably
well this year in both consumer and pet products segments, which
represent very competitive categories," commented Moody's senior
analyst, Brian Weddington.
In the first half of fiscal 2010 ended November 2009, Del Monte
reported operating profit margin of 15% compared to 6% a year ago,
driven by a combination of more favorable business mix, higher
pricing, productivity savings and lower input costs.
"We are anticipating some margin contraction in 2010 based on
industry plans for sharp increases in promotional spending;
however by delivering on its promise to reduce leverage, Del Monte
has built sufficient cushion to support the higher rating," added
Weddington.
The upgrade in the company's speculative grade liquidity rating to
SGL-2 primarily reflects more comfortable covenant cushion likely
to be provided under the proposed senior secured bank agreement.
Under the existing bank agreement that will be replaced, the fixed
charge coverage covenant has become tight due to large scheduled
mandatory debt payments.
Ratings upgraded and LGD percentages revised:
Del Monte Corporation:
* Corporate family rating to Ba2 from Ba3;
* Probability of default rating to Ba2 from Ba3;
* $1,292 million of senior secured bank facilities to Baa3 from
Ba1 (LGD2), LGD% to 20 from 24 (to be withdrawn when cancelled)
including:
-- $450 million revolving credit due 2011
-- $206 million Term Loan A due 2011
-- $636 million Term Loan B due 2012;
* $250 million 6.75% senior subordinated notes due 2015 to Ba3
from B1 (LGD5), LGD% to 77 from 79;
* $450 million 7.50% senior subordinated notes due 2019 to Ba3
from B1 (LGD5), LGD% to 77 from 79;
* Speculative grade liquidity rating to SGL-2 from SGL-3.
Ratings assigned:
Del Monte Corporation:
* $1.1 billion of proposed senior secured bank facilities at
(P)Baa3 including:
-- $500 million revolving credit due 2015
-- $600 million Term Loan A due 2015.
At closing, the proceeds from the proposed $1.1 billion senior
secured bank facilities along with cash balances will be used to
retire the existing $898 million of funded debt outstanding under
the existing bank agreement, after which -- subject to final terms
and documentation -- Moody's will assign a Baa3 rating to the new
facilities and withdraw the ratings on the existing bank
facilities. The company anticipates that the new facility will
close by February 2010.
In the most recent rating action on September 17, 2009, Moody's
assigned a B1 rating to Del Monte's new $450 million 7.5% senior
subordinated notes due 2019. Moody's also affirmed the company's
other ratings, including its Ba3 corporate family and probability
of default ratings and its speculative grade liquidity rating of
SGL-3.
Headquartered in San Francisco, California, Del Monte Corporation
is one of the largest producers, distributors and marketers of
premium quality branded food and pet products for the U.S. retail
market. Revenues for the last twelve months ended November 1,
2009, were approximately $3.8 billion.
DELPHI CORP: Gets $89.3MM Federal Grant, Adds Jobs In Kokomo
------------------------------------------------------------
In a public statement dated December 18, 2009, Delphi Electronics
& Safety President Jeff Owens reported plans to implement an
$89.3 million award from the Department of Energy that will
support expansion of Delphi's Power Electronics engineering
capabilities as well as the establishment of a new manufacturing
operation in Kokomo, Indiana.
The award, through the American Recovery and Reinvestment Act of
2009, was announced by President Barack Obama during a visit to
Indiana in August 2009. With an $89.3 million match by Delphi,
this action will represent a three-year investment of up to
$178.6 million to advance the development of low-cost
manufacturing of electric drive vehicles (EDV) in the United
States.
Mr. Owens was joined in making the public announcement by Indiana
Gov. Mitch Daniels, U.S. Rep. Joe Donnelly and Kokomo Mayor Greg
Goodnight.
"Electric drive vehicles hold the promise of meeting two critical
government and industry goals - reducing dependence on petroleum
and reducing greenhouse gas emissions," Mr. Owens said. "Delphi
has a long history of successfully developing and commercializing
automotive electronics. With this DOE partnership, we will apply
our proven expertise to develop technologies and processes that
will help lower the cost of electric drive vehicles and make them
more attractive to a broad range of consumers. We are pleased to
have the government and industry support evident here today."
In addition to the DOE award, Delphi has been offered support
from the Indiana Economic Development Corporation through
performance-based tax credits and training grants. The company
also is finalizing a property tax abatement application with the
City of Kokomo.
Over the next five years, Delphi anticipates adding about 190
employees as a result of government and business awards to
Delphi's power electronics business line. Delphi expects to add
about 95 engineers at its Kokomo technology center over the next
two years, increasing engineering employment in the power
electronics unit to more than 300. In the next three years,
Delphi projects about 40 people will be hired at a Kokomo
facility where power electronics products will be manufactured
with employment at that facility moving to a total of about 95 by
2014.
Delphi will establish its manufacturing operation in an existing
facility at 1501 E. Road 200 North (Morgan Street). The company
will lease the 90,000-square-foot building, reusing vacant
manufacturing space originally built for a manufacturer of metals
for the orthopedics industry in northern Indiana.
Among the first products expected to be manufactured at the new
facility will be power electronics components and systems for
Allison Transmission, a leading supplier of commercial-duty fully
automatic transmissions for both on- and off-highway vehicles,
and of hybrid propulsion systems for on-highway transit and coach
vehicles. Allison, headquartered in Indianapolis, announced
earlier this month that it had entered into a long-term business
agreement with Delphi to advance the production of medium-duty
hybrid trucks in the United States. Under terms of the
agreement, Delphi will supply Allison with key hybrid drive
system electronic components and energy storage systems to be
used in its hybrid propulsion systems for medium-duty commercial
trucks and buses.
"With this agreement, two Indiana companies with great
technologies are combining their world-class expertise to serve
the emerging global hybrid and electric vehicle market," Mr.
Owens said. "We are excited to partner with Allison in bringing
to Indiana new manufacturing jobs in advanced energy technologies
that will have global demand."
Seeds for this partnership were planted more than two years ago
when Allison and Delphi leaders met at the organizational meeting
for the Energy Systems Network. ESN has grown into a partnership
of private firms, research institutions and public agencies in
Indiana focused on bringing new energy technologies to market by
leveraging the state's strong manufacturing sector, R&D
capabilities and heritage of engineering advanced energy systems.
About Delphi Corp
Based in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ)
-- http://www.delphi.com/-- was a global supplier of mobile
electronics and transportation systems, including powertrain,
safety, steering, thermal, and controls & security systems,
electrical/electronic architecture, and in-car entertainment
technologies. Delphi had approximately 146,600 employees and
operates 150 wholly owned manufacturing sites in 34 countries with
sales of $18.1 billion in 2008.
The Company filed for Chapter 11 protection on October 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represent the Official Committee of Unsecured Creditors. As of
June 30, 2008, the Debtors' balance sheet showed US$9,162,000,000
in total assets and US$23,742,000,000 in total debts.
The Court confirmed Delphi's plan on January 25, 2008. The Plan
was not consummated after a group led by Appaloosa Management,
L.P., backed out from their proposal to provide US$2,550,000,000
in equity financing to Delphi. At the end of July 2009, Delphi
obtained confirmation of a revised plan, build upon a sale of the
assets to a entity formed by some of the lenders who provided
$4 billion of debtor-in-possession financing, and General Motors
Company.
On October 6, 2009, Delphi Corp.'s Chapter 11 plan of
reorganization became effective. A Master Disposition Agreement
executed among Delphi Corporation, Motors Liquidation Company,
General Motors Company, GM Components Holdings LLC, and DIP Holdco
3, LLC, divides Delphi's business among three separate parties --
DPH Holdings LLC, GM Components, and DIP Holdco 3.
Delphi emerged from Chapter 11 as DPH Holdings. DPH Holdings will
remain responsible for the post-Effective Date administration and
eventual closing of the Chapter 11 cases as well as the
disposition of certain retained assets and payment of certain
retained liabilities as provided under the Modified Plan.
Bankruptcy Creditors' Service, Inc., publishes Delphi Bankruptcy
News. The newsletter tracks the Chapter 11 proceedings of Delphi
Corp. and its debtor-affiliates. (http://bankrupt.com/newsstand/
or 215/945-7000)
DELPHI CORP: Retiree Committee Wants to Expand VEBA Benefit
-----------------------------------------------------------
The Official Committee of Eligible Salaried Retirees in Delphi
Corp.'s asks the Court to expand eligibility for the benefits
offered by the Voluntary Employee Benefit Association to include
hourly employee-retirees of the Debtors and their dependants.
In a Court-approved settlement previously entered between the
Retirees Committee and the Debtors, the Debtors made payments of
$8.75 million in overall subsidy payments to the Retirees
Committee for the benefit of Delphi Corp.'s salaried retirees.
The benefit pension plan of the salaried retirees was terminated
and turned over to Pension Benefit Guaranty Corporation on
August 10, 2009, triggering eligibility for the Health Coverage
Tax Credit. Thus, the Retirees Committee formed the Delphi
Salaried Retirees Association Trust VEBA. Coordinating with the
Internal Revenue Department about rolling out information on HCTC
benefit eligibility, the Retiree Committee and the DSRA VEBA
board rolled out the benefits for salaried retirees and their
dependants on September 1. As of December 15, 2009, there are
3,012 participants, 2,400 of whom are participating in the IRS
HCTC subsidy program.
Neil A. Goteiner, Esq., at Farella Braun & Martel LLP, in San
Francisco, California, relates that pension plans of the Debtors
for hourly workers, including those workers represented by
unions, were also terminated and turned over to the PBGC.
Majority of those hourly workers were represented by the United
Auto Workers and other splinter unions, including the
International Union of Electronic, Electrical, Salaried, Machine
and Furniture Workers, Communications Workers of America; the
United Steel, Paper and Forestry, Rubber, Manufacturing, Energy,
Allied Industrial and Service Workers International Union AFL-
CIO; the International Brotherhood of Electrical Workers; the
International Association of Machinists and Aerospace Workers;
and the International Union of Operating Engineers.
Mr. Goteiner notes that with respect to the retired Splinter
Unions' members eligible for the HCTC, the benefits offered by
the VEBA set up by the Retirees Committee may be much more
attractive than retirement benefits offered to them by General
Motors Company, buyer of certain assets of the Debtors. In light
of negotiations among the VEBA board, the Retirees Committee, and
the Unions, the VEBA board voted to expand eligibility,
contingent on the Court's approval, to ensure that the hourly
retirees would be eligible for HCTC subsidies. Time is of the
essence in the relief sought, Mr. Goteiner relates, because
hourly retirees must make elections of benefits effective January
2010.
Section 35(e)(1)(K) of the Internal Revenue Code provides that a
benefit eligible for the HCTC subsidy includes one offered by a
VEBA either set up by a retiree committee under Section 1114 of
the Bankruptcy Code in a bankruptcy case or "pursuant to an order
of a bankruptcy court." More importantly, expanding the VEBA
benefit eligibility to include hourly retirees will provide a
cost effective, 80% HCTC-subsidized robust health care,
prescription drug, and related benefits to eligible hourly
retirees and their dependants, at no cost to the Debtors, while
eliminating the smaller subsidy costs that General Motors, a
successor to certain of the Debtors' assets, would pay for
Splinter Union retirees who enroll in the VEBA benefit instead of
the less extensive GM-offered benefit, Mr. Goteiner assures the
Court.
In a related request, the Retirees Committee asked the Court to
extend time to serve the order shortening the notice with respect
to the VEBA Motion through December 15, 2009. Mr. Goteiner
explained that the Retiree committee did not receive the order
shortening notice on December 14, 2009, making it impossible to
serve the order on notice parties on or before December 14, 2009,
as required by the Court.
District Court to Rule on Injunction vs. PBGC
In related news, the United States District Court for the Eastern
District of Michigan will consider the Delphi Salaried Retirees
Association's request for temporary injunction against the PBGC
by the end of January 2010, Business First of Buffalo reports.
Dennis Black, interim chairman of the DSRA, confirmed to Business
First of Buffalo that PBGC informed the Delphi salaried retirees
that effective February 1, 2010, their pension benefits would be
reduced. Absent an injunction, recovering the benefits lost
would be difficult, the news source quoted Mr. Black as saying.
Moreover, the District Court directed the DSRA and the PBGC to
produce documents about the pension termination and whether it
was justified by January 8, 2010, according to The Saginaw News.
In this light, the District Court has set a hearing for
January 8 to determine whether the DSRA Action will continue to
trial, the news source related.
About Delphi Corp
Based in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ)
-- http://www.delphi.com/-- was a global supplier of mobile
electronics and transportation systems, including powertrain,
safety, steering, thermal, and controls & security systems,
electrical/electronic architecture, and in-car entertainment
technologies. Delphi had approximately 146,600 employees and
operates 150 wholly owned manufacturing sites in 34 countries with
sales of $18.1 billion in 2008.
The Company filed for Chapter 11 protection on October 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represent the Official Committee of Unsecured Creditors. As of
June 30, 2008, the Debtors' balance sheet showed US$9,162,000,000
in total assets and US$23,742,000,000 in total debts.
The Court confirmed Delphi's plan on January 25, 2008. The Plan
was not consummated after a group led by Appaloosa Management,
L.P., backed out from their proposal to provide US$2,550,000,000
in equity financing to Delphi. At the end of July 2009, Delphi
obtained confirmation of a revised plan, build upon a sale of the
assets to a entity formed by some of the lenders who provided
$4 billion of debtor-in-possession financing, and General Motors
Company.
On October 6, 2009, Delphi Corp.'s Chapter 11 plan of
reorganization became effective. A Master Disposition Agreement
executed among Delphi Corporation, Motors Liquidation Company,
General Motors Company, GM Components Holdings LLC, and DIP
Holdco 3, LLC, divides Delphi's business among three separate
parties -- DPH Holdings LLC, GM Components, and DIP Holdco 3.
Delphi emerged from Chapter 11 as DPH Holdings. DPH Holdings will
remain responsible for the post-Effective Date administration and
eventual closing of the Chapter 11 cases as well as the
disposition of certain retained assets and payment of certain
retained liabilities as provided under the Modified Plan.
Bankruptcy Creditors' Service, Inc., publishes Delphi Bankruptcy
News. The newsletter tracks the Chapter 11 proceedings of Delphi
Corp. and its debtor-affiliates. (http://bankrupt.com/newsstand/
or 215/945-7000)
DELPHI CORP: Unions Disagree With Claim Disallowance
----------------------------------------------------
In separate filings, the International Union of Operating
Engineers Locals 101-S, 18-S, and 832-S, the International
Association of Machinists and Aerospace Workers and its District
10 and Tool and Die Makers Lodge 78, and the International
Brotherhood of Electrical Workers, Local 663, and Sharyl. Y.
Carter disagreed with the Debtors' proposed disallowance of their
claims.
On behalf of the Unions, Marriane Goldstein Robbins, Esq., at
Previant, Golberg, Uelmen, Gratz Miller & Brueggeman, S.C., in
Milwaukee, Wisconsin, reminded the Court that the Unions filed
claims on behalf of participants in the Delphi Hourly Rated
Pension Plan for breach of fiduciary duty by the Debtors under
Title I of Employee Retirement Income Security Act by:
-- failing to properly fund the Delphi HRP while they were
sponsor;
-- representing to the Union-represented participants that the
Debtors would not act to reduce benefits to participants
represented by the Unions if benefits were not reduced for
other plan participants; and
-- entering into agreements with the Pension Benefit Guaranty
Corporation and General Motors Corporation, which reduced
the assets that would be available to pay benefits in
excess of non-guaranteed benefits upon termination.
Against this backdrop, Ms. Robbins argued that Unions' Claims
were preserved by virtue of the "vested pension benefit" carve-
out of the releases agreed to by each Union set forth in the
Unions' settlement agreements with the Debtors and the Debtors'
Modified First Amended Joint Plan of Reorganization. She further
contended that Section 301 of the Labor Management Relations Act
allows the Unions to recover in a cause of action of breach of
their collective bargaining agreements with the Debtors for
failing to provide Delphi HRP benefits and on a basis that the
Union-represented HRP participants are being treated inequitably
as compared to General Motors Company Hourly Rated Pension
participants. Similarly, she said that the Unions are entitled
to recover benefits lost under Section 502(a)(3) of the ERISA as
a result of the Debtors' failure to properly fund the Delphi HRP.
More importantly, she averred, the Claims are for the Debtors to
do equity by restoring the benefits that have been reduced for
the Union-represented participants, she maintains.
Thus, the Unions asked the Court to deny disallowance of their
Claims.
For her part, Ms. Carter insisted that she has met her burden of
proof to establish her Claim Nos. 16849 and 16850 against the
Debtors. Accordingly, she asked the Court to allow her Claims if
not for $50 million, then in the millions of dollars for each
Claim asserted against the Debtors.
Debtors React
Representing the Reorganized Debtors, John Wm. Butler, Jr., Esq.,
at Skadden, Arps, Slate, Meagher & Flom LLP, in Chicago,
Illinois, asserted that Unions' arguments have been refuted by
the Court pursuant to the order confirming the Modified Plan on
July 30, 2009, which authorized the Debtors to enter into the
Delphi-PBGC Settlement Agreement and other documentation without
violating the Memorandum of Understanding and related agreements
entered between the Debtors and the Unions.
Moreover, the Unions have no cause of action, under Section 301
of the LMRA for breach of their collective bargaining agreements
or for any asserted inequitable treatment perceived by the Unions
for the entirety of their participants not yet being transferred
into the GM HRP, Mr. Butler maintained. To the extent the Unions
are solely aggrieved with GM, there is no reason to keep their
claims against the Debtors alive, he said. The Unions cannot
make claims for lost benefits under the Delphi HRP because the
PBGC "owns" those claims, Mr. Butler insisted. Even if the
breach of fiduciary duty claims were legally cognizable, they
would have been waived pursuant to the express waiver language of
the settlement agreements between the Debtors and the Unions,
which was incorporated into the Modified Plan, he reminded the
Court.
As the Unions cannot provide facts or law supporting their
Claims, the Debtors urged the Court to disallow each of the
Unions' Claims.
About Delphi Corp
Based in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ)
-- http://www.delphi.com/-- was a global supplier of mobile
electronics and transportation systems, including powertrain,
safety, steering, thermal, and controls & security systems,
electrical/electronic architecture, and in-car entertainment
technologies. Delphi had approximately 146,600 employees and
operates 150 wholly owned manufacturing sites in 34 countries with
sales of $18.1 billion in 2008.
The Company filed for Chapter 11 protection on October 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represent the Official Committee of Unsecured Creditors. As of
June 30, 2008, the Debtors' balance sheet showed US$9,162,000,000
in total assets and US$23,742,000,000 in total debts.
The Court confirmed Delphi's plan on January 25, 2008. The Plan
was not consummated after a group led by Appaloosa Management,
L.P., backed out from their proposal to provide US$2,550,000,000
in equity financing to Delphi. At the end of July 2009, Delphi
obtained confirmation of a revised plan, build upon a sale of the
assets to a entity formed by some of the lenders who provided
$4 billion of debtor-in-possession financing, and General Motors
Company.
On October 6, 2009, Delphi Corp.'s Chapter 11 plan of
reorganization became effective. A Master Disposition Agreement
executed among Delphi Corporation, Motors Liquidation Company,
General Motors Company, GM Components Holdings LLC, and DIP Holdco
3, LLC, divides Delphi's business among three separate parties --
DPH Holdings LLC, GM Components, and DIP Holdco 3.
Delphi emerged from Chapter 11 as DPH Holdings. DPH Holdings will
remain responsible for the post-Effective Date administration and
eventual closing of the Chapter 11 cases as well as the
disposition of certain retained assets and payment of certain
retained liabilities as provided under the Modified Plan.
Bankruptcy Creditors' Service, Inc., publishes Delphi Bankruptcy
News. The newsletter tracks the Chapter 11 proceedings of Delphi
Corp. and its debtor-affiliates. (http://bankrupt.com/newsstand/
or 215/945-7000)
DESIGNER EQUITY HOLDING: Case Summary & 1 Largest Unsec. Creditors
------------------------------------------------------------------
Debtor: Designer Equity Holding Company, LLC
205 West 39th Street
New York, NY 10018
Bankruptcy Case No.: 09-17665
Chapter 11 Petition Date: December 31, 2009
Court: United States Bankruptcy Court
Southern District of New York (Manhattan)
Judge: James M. Peck
Debtor's Counsel: Kevin J. Nash, Esq.
Goldberg Weprin Finkel Goldstein LLP
1501 Broadway, 22nd Floor
New York, NY 10036
Tel: (212)-301-6944
Fax: (212) 422-6836
Email: KJNash@Finkgold.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $0 to $50,000
The Debtor identified Satz International LLC with a debt claim for
$80,000 as its largest unsecured creditor. A full-text copy of the
Debtor's petition, including a list of its largest unsecured
creditor, is available for free at:
http://bankrupt.com/misc/nysb09-17665.pdf
The petition was signed by Arnold Simon, managing member of the
Company.
DOUGLAS BUNTING: Case Summary & 13 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: Douglas L. Bunting
PO Box 144-B
Pinetops, NC 27864
Bankruptcy Case No.: 09-11561
Chapter 11 Petition Date: December 31, 2009
Court: United States Bankruptcy Court
Eastern District of North Carolina (Wilson)
Judge: Randy D. Doub
Debtor's Counsel: Stephen L. Beaman, Esq.
P.O. Box 1907
Wilson, NC 27894
Tel: (252) 237-9020
Fax: (252) 243-5174
Email: sbeaman@beamanlaw.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $10,000,001 to $50,000,000
A full-text copy of Mr. Bunting's petition, including a list of
his 13 largest unsecured creditors, is available for free at:
http://bankrupt.com/misc/nceb09-11561.pdf
The petition was signed by Mr. Bunting.
DOYLESTOWN PARTNERS: Case Summary & 2 Largest Unsecured Creditors
-----------------------------------------------------------------
Debtor: Doylestown Partners, Inc.
14404 North Rd
Loxahatchee, FL 33470
Bankruptcy Case No.: 10-10299
Chapter 11 Petition Date: January 7, 2010
Court: United States Bankruptcy Court
Southern District of Florida (West Palm Beach)
Judge: Paul G. Hyman Jr.
Debtor's Counsel: Arthur C. Neiwirth, Esq.
1 E Broward Blvd #1400
Fort Lauderdale, FL 33301
Tel: (954) 523-7008
Fax: (954) 523-7009
Email: aneiwirthcourt@qpwblaw.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A full-text copy of the Debtor's petition, including a list of its
2 largest unsecured creditors, is available for free at:
http://bankrupt.com/misc/flsb10-10299.pdf
The petition was signed by William J. Reilly, secretary of the
Company.
DRESSER INC: Dividend Payment Won't Affect Moody's 'B2' Rating
--------------------------------------------------------------
Moody's Investors Service commented that Dresser, Inc.'s B2
Corporate Family Rating and stable rating outlook would not be
impacted by the company's recent dividend payment to its private
equity sponsors.
The last rating action affecting Dresser occurred on September 16,
2008, when Moody's changed its outlook to stable from negative.
Dresser, Inc., is headquartered in Addison, Texas.
E & J OF HUNTERSVILLE: Case Summary & 3 Largest Unsec. Creditors
---------------------------------------------------------------
Debtor: E & J of Huntersville, LLC
12125 Statesville Road
Huntersville, NC 28078
Bankruptcy Case No.: 09-33611
Chapter 11 Petition Date: December 30, 2009
Court: United States Bankruptcy Court
Western District of North Carolina (Charlotte)
Judge: George R. Hodges
Debtor's Counsel: Richard M. Mitchell, Esq.
Mitchell & Culp, PLLC
1001 Morehead Square Drive, Suite 330
Charlotte, NC 28203
Tel: (704) 333-0630
Fax: (704) 333-4975
Email: rmmatty@mitchellculp.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A full-text copy of the Debtor's petition, including a list of its
3 largest unsecured creditors, is available for free at:
http://bankrupt.com/misc/ncwb09-33611.pdf
The petition was signed by Edgor Dean Ellis Jr., member manager of
the Company.
EAST BISSONETT: Voluntary Chapter 11 Case Summary
-------------------------------------------------
Debtor: East Bissonett Ltd.
11144 Fuqua Street, Suite 200
Houston, TX 77089
Bankruptcy Case No.: 10-30231
Chapter 11 Petition Date: January 5, 2010
Court: United States Bankruptcy Court
Southern District of Texas (Houston)
Judge: Jeff Bohm
Debtor's Counsel: Leonard H. Simon, Esq.
Pendergraft & Simon L.L.P.
2777 Allen Parkway, Ste 800
Houston, TX 77019
Tel: (713) 737-8207
Fax: (832) 202-2810
Email: lsimon@pendergraftsimon.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Debtor did not file a list of its 20 largest unsecured
creditors when it filed its petition.
The petition was signed by Ben Azopardi.
EDWARD JOSEPH GILLIS: Case Summary & 10 Largest Unsec. Creditors
----------------------------------------------------------------
Joint Debtors: Edward Joseph Gillis
Joan L. Gillis
aka Joan Lucas Gillis
11207 Field Circle
Spotsylvania, Va 22551
Bankruptcy Case No.: 09-38514
Chapter 11 Petition Date: December 31, 2009
Court: United States Bankruptcy Court
Eastern District of Virginia (Richmond)
Judge: Chief Judge Douglas O. Tice Jr.
Debtors' Counsel: Elizabeth L. Gunn, Esq.
DurretteBradshaw, PLC
600 East Main Street, 20th Floor
Richmond, VA 23219
Tel: (804) 775-6900
Fax: (804) 775-6911
Email: egunn@durrettebradshaw.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A full-text copy of the Debtors' petition, including a list of
their 10 largest unsecured creditors, is available for free at:
http://bankrupt.com/misc/vaeb09-38514.pdf
The petition was signed by the Joint Debtors.
EMERICH GIANNOTTI: Voluntary Chapter 11 Case Summary
----------------------------------------------------
Debtor: Emerich Giannotti
5 Ridge Road
Englewood Cliffs, NJ 07632
Bankruptcy Case No.: 10-10368
Chapter 11 Petition Date: January 7, 2010
Court: United States Bankruptcy Court
District of New Jersey (Newark)
Debtor's Counsel: Jill Cadre, Esq.
Cadre Law Firm
400 Sylvan Avenue
Englewood Cliffs, NJ 07632
Tel: (201) 894-1300
Email: jill@cadrelaw.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $500,001 to $1,000,000
The Debtor did not file a list of its 20 largest unsecured
creditors when it filed its petition.
The petition was signed by Emerich Giannotti.
ENERGY FUTURE: Fitch Assigns 'B+' Rating on $500 Mil. Notes
-----------------------------------------------------------
Fitch Ratings has assigned a rating of 'B+' to the new Energy
Future Holdings Corp issuance of $500 million 10.0% secured notes
due 2020. Collateral for the secured notes consists of a pledge
of 100% of Energy Future Intermediate Holdings, Inc. membership
interests in Oncor Electric Delivery Holdings (not rated by
Fitch). The rating on the new notes is the same as Fitch's rating
of $256.5 million of existing secured notes issued by EFH and EFIH
in November 2009 in an exchange offer. EFIH is a guarantor of
outstanding secured and unsecured debt of EFH. Fitch's Issuer
Default Rating for EFH is 'B' with a Negative Outlook.
The expected use of the net proceeds is used for general or other
corporate purposes, which may include, without limitation, working
capital needs, investment in business initiatives, capital
expenditures and prepayment or repurchase of outstanding
indebtedness of EFH Corp. and/or its subsidiaries.
The 'B+/RR1' rating of the secured notes reflects the strong
collateral valuation relative to approximately $755 million of
senior notes currently sharing in the security. Fitch also has
taken into consideration EFH management's willingness to monetize
the equity value in Oncor Holdings. While recovery prospects for
the new secured notes are considered to be 100% given their
current over-collateralization, Fitch also considers it likely
that management will issue new secured debt against the collateral
of its Oncor Holdings ownership interests or otherwise reduce its
equity stake in Oncor, and the excess collateral coverage of the
secured notes could diminish over time as a result.
The current IDR of EFH of 'B' and Negative Outlook reflect Fitch's
expectation that interest coverage ratios are likely to remain
tight but not very volatile in the near term, since EFH is hedged
for approximately 98% of the generation portfolio's price exposure
to natural gas over the next 12 months. The hedges should
continue to stabilize cash flow on the hedged power production
volumes and provide protection against low natural gas and power
prices, but the percentage of output hedged significantly
diminishes in 2013, and output beyond 2014 is essentially
unhedged. All three new lignite-fired units (Oak Grove and
Sandow) are expected to be in commercial operation by mid-2010 and
the first two units achieved substantial completion in 2009.
There is adequate liquidity to fund capital spending and other
cash needs with only nominal debt amortization in 2010, and no
significant maturities until 2013/2014 when the LBO bank debt will
mature. Principal risks to cash flow are lower-than-expected
market heat rates in ERCOT and/or persistence of low gas prices
when existing hedges roll off materially in 2013. In addition,
future carbon legislation may pressure EFH cash flows.
ENTERTAINMENT TECHNOLOGIES: Voluntary Chapter 11 Case Summary
-------------------------------------------------------------
Debtor: Entertainment Technologies, Inc.
dba LEGENDS SPORTS PUB & GRILL
dba CART WHEEL CASINO & LIQUOR STORE
500 DEER DRIVE
GREAT FALLS, MT 59404
Bankruptcy Case No.: 09-62607
Chapter 11 Petition Date: December 30, 2009
Court: United States Bankruptcy Court
District of Montana (Butte)
Debtor's Counsel: Gary S. Deschenes, Esq.
P.O. Box 3466
Great Falls, MT 59403-3466
Tel: (406) 761-6112
Email: descheneslaw@dslawoffices.net
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Debtor did not file a list of its 20 largest unsecured
creditors when it filed its petition.
The petition was signed by Joseph E. McKenney, president of the
Company.
ERICKSON RETIREMENT: Fine Tunes Joint Plan of Reorganization
------------------------------------------------------------
Erickson Retirement Communities, LLC, and its debtor affiliates
submitted to the United States Bankruptcy Court for the Northern
District of Texas a First Amended Joint Plan of Reorganization
and accompanying Disclosure Statement on December 30, 2009.
Among others, the Amended Plan and Disclosure Statement reflects
(1) more details on the recently concluded auction of the ERC
Assets, (2) a description of the new management agreement with
the not-for-profit entities, (3) certain revisions in the claims
designation and treatment, and (4) additional definition of
terms.
ERC Executive Vice President and General Counsel Gerald Doherty
informed the Court that an auction of substantially all of the
Debtors' assets was held on December 22, 2009, whereby Redwood-
ERC Senior Living Holdings, LLC, and the investment consortium of
CoastWood Senior Housing Partners, LLC, Kohlberg Kravis Roberts &
Co., and Beecken Petty O'Keefe & Company, LLC, made bids on the
Debtors' assets.
Mr. Doherty related that during the Auction, the Debtors'
advisors engaged in extensive negotiations with National Senior
Campuses, Inc., and project lenders resulting in NSC's and non-
for-profit entities Riderwood Village, Inc., Brooksby Village,
Inc., Seabrook Village, Inc., Cedar Crest Village, Inc., Ann's
Choice, Inc., Fox Run Village, Inc., Highland Springs Inc., Wind
Crest, Inc., Oak Crest Village, Inc., Greenspring Village, Inc.,
Maris Grove, Inc., Ashby Ponds, Inc., Eagle's Trace, Inc.,
Hickory Chase, Inc., and Tallgrass Creek, Inc.'s offer of 10-year
management agreements to all bidders. Pursuant to the new
management agreements, NSC will have a 3rd year and 7th year
right to review the management fee terms of the agreements to
mark-to-market. NSC's offer of an extended term of the
management agreements, Mr. Doherty noted, significantly increased
the value of the Debtors' Assets.
ERC's restructuring committee has agreed that in exchange for NSC
and the relevant NSC NFPs offering identical 10-year management
agreements to qualified bidders, the Debtors will provide that
any plan confirmed in their Chapter 11 cases will provide for
releases of NSC, the NSC NFPs, all of their directors,
professionals, employees and vendors together with the broadest
possible injunction against claims of any and all third parties
against any of these parties, Mr. Doherty related.
The key provisions of the New Management Agreements are:
Term: Ten years
Management Fees: A schedule of management fees,
consisting of base fees and incentive
fees, has been agreed upon, with a
mechanism to reset the fees to then-
market rates on the third and seventh
anniversaries
Termination Rights: The applicable NFP will have certain
performance-based termination rights
Executive Director: The applicable NFP will have certain
rights to approve the appointment and
removal of the executive director of
the community
Tax Matters: The parties have agreed to certain
procedures if the tax exemption of any
bonds issued by NFP, or Section
501(c)(3) status of a community, is
challenged by the Internal Revenue
Service because the term of the New
Management Agreement exceeds five years
The key provisions of a Master Lease are:
Term : 27 1/2 years with the NFP having three
10-year renewal options
Purchase Option: Exercisable by the NFP at the end of
the initial term and each renewal term.
Purchase price is sum of (i) the
outstanding balance of a Community
Loan, (ii) Initial Entrance Deposits
from unsold inventory, and (iii) the
fair market value of the Community.
Community Loans
Reinstatement: Community Loans will be reinstated at
par on terms to be mutually agreed.
Mr. Doherty disclosed that the Auction was opened with KKR's bid
of $296 million, comprised of cash, term loan A securities and
subordinated preferred securities. After 18 hours of
negotiations and bidding, Redwood was determined to be the
successful bidder at the Auction with a final bid price of
$365 million cash. The sale of the Debtors' assets will be
consummated pursuant to the Amended Plan. As the unsuccessful
bidder, KKR is entitled to an unsuccessful bidder or break-up fee
of $9 million, which represents 10% of the purchase consideration
of more than $275 million.
Redwood Purchase Transaction
In light of the developments at the December 22 auction, Redwood-
ERC Senior Living Holdings LLC, Redwood-ERC Management, LLC,
Redwood-ERC Development, LLC, Redwood-ERC Properties, LLC,
Redwood-ERC Kansas, LLC, ERC, Erickson Group, LLC, and Kansas
Campus, LLC, entered into a Second Amended and Restated Master
Purchase and Sale Agreement, whereby Redwood is contemplated to
acquire substantially all of business assets of ERC and Kansas,
free and clear of all liens, except for certain permitted
encumbrances, including certain Community Loans, Special District
Tax Bonds, and Purchase Option Deposits as restructured pursuant
to the Amended Plan. The assets to be purchased are:
(a) intellectual property owned or used by ERC in its
business;
(b) certain contracts and all tangible and intangible personal
property owned or used by ERC in its business;
(c) all original books and records relating to the Debtors'
business;
(d) all of the Debtors' right, title and interest in:
-- Purchase Money Note dated June 30, 2008 in an amount
equal to Deferred Initial Entrance Deposits, Reserves
and Liquidity Amount, made by Brooksby Village, Inc. in
favor of Senior Living Limited Partnership; and
-- Purchase Money Note dated December 31, 2007 in an
amount equal to Deferred Initial Entrance Deposits and
Reserves made by Riverwood Village, Inc., in favor of
Senior Living Partnership.
(e) cash, including Cash equivalents, not exceeding
$10 million;
(f) permits, to the extent transferrable pursuant to
applicable law;
(g) causes of action and rights of recovery related, including
avoidance actions arising under the Bankruptcy Code;
(h) all cash held by ERC for the purpose of paying self-funded
medical or dental claims, medical or dental insurance
premiums, and related administrative expenses, including
amounts reflected as Account Nos. 10250 and 10255 on the
ERC balance sheet, known as Medical Claims Cash;
(i) insurance policies;
(j) furniture, equipment and other personal property and fixed
assets; and
(k) escrowed Initial Entrance Deposits with respect to
Tallgrass Creek Campus.
Any valid liens with respect to the Purchased Assets will be
satisfied and released.
Moreover, Redwood will not purchase an "out-parcel" of land from
Debtor Littleton Campus, LLC.
Redwood will pay $365 million for the ERC Assets, subject to
certain adjustments that include (i) the deduction of all Initial
Entrance Deposits collected after November 27, 2009; and (ii) to
the extent cash on hand as of the closing is less than
$10 million, deduction of that shortfall.
To make a $7.1 million payment from the $365 million Purchase
Price to NSC for certain advances paid and professional fees
incurred by NSC and the NSC-NFPs supported by NSC during the
restructuring period, Redwood will acquire all Initial Entrance
Deposits with respect to the Tallgrass Creek Campus.
Moreover, under the Amended MSPA, Redwood will form acquisition
companies to acquire substantially all of the assets of ERC and
Kansas Campus relating to the business. Those companies will be
referred to as Redwood ManagementCo, Redwood DevCo, and Redwood
PropCo. The Amended MSPA also provides for these transactions:
(1) ERC will sell and assign to PropCo all of its limited
liability company interests in Debtors Ashburn Campus,
LLC; Concord Campus, L.P.; Concord Campus GP, LLC; Dallas
Campus, L.P.; Dallas Campus GP, LLC; Houston Campus, L.P.;
Littleton Campus, LLC; Novi Campus, LLC; Senior Campus
Services, LLC; Warminster Campus GP, LLC; and non-Debtor
Senior Campus Care, LLC, and Tinton Falls Campus II, LLC,
collectively known as the "Transferred Landowners," which
hold property or assets in connection with a current or
planned campus, and substantially all of the assets of
Kansas Campus.
(2) DevCo will enter into exclusive New Development Agreements
with certain of Debtor Landowners Ashburn Campus, Columbus
Campus, LLC, Concord Campus, Dallas Campus, Houston
Campus, Kansas Campus, Littleton Campus, Novi Campus, and
Warminster Campus with a term of at least seven years; or
will assume existing Development Agreements.
(3) ManagementCo will enter into New Management Agreements
with certain Campuses, which New Management Agreements
will have a minimum term of 10 years, subject to a three
and seven-year right to review the management fee terms of
the agreements to mark-to-market.
On the Closing Date, Redwood will own 100% of Redwood PropCo,
Redwood DevCo and Redwood ManagementCo.
Redwood will establish a $500,000,000 working capital facility
that will be available to fund, on a senior secured priming
basis, working capital and project development needs of the
Acquisition Companies and the Transferred Landowners.
Landowner Restructurings
The Amended Plan also provides for the restructuring of certain
Debtor Landowners. They specifically include these terms:
(a) The construction loans of Ashburn Campus, Concord Campus,
Dallas Campus, Houston Campus, Littleton Campus and Novi
Campus will be terminated, released and discharged as of
the Plan Effective Date. ERC's interests in the Campuses
will be transferred to Redwood PropCo. The Campuses'
Community Loans will be amended at the outstanding balance
amount and assumed by the Campuses, as modified. The
Campuses' obligations under the respective Community Loans
will be subordinate to all other debt owed by the Campuses
or their successors.
Moreover, working capital loans and other agreements
between these entities will be terminated as of the
Effective Date:
* Ashburn Campus and Ashby Ponds, Inc.
* Concord Campus and Maris Grove, Inc.
* Dallas Campus and Highland Springs
* Houston Campus and Eagles Trace, Inc.
* Littleton Campus and Wind Crest, Inc.
* Novi Campus and Fox Run Village, Inc.
(b) The outstanding balance of Warminster Campus' obligation
to refund purchase option deposit under a purchase option
agreement between Warminster Campus and Ann's Choice,
Inc., which is $75 million, as of September 30, 2009, will
be reinstated in full on mutually agreeable terms. The
collateral securing the Warminster Purchase Option Deposit
Refund Obligation will remain unchanged except that all
pledges and assignments, if any, of management agreements
or development agreements will be released. Moreover, all
guarantees of ERC and its affiliates will be terminated
and no new guarantees will be provided. However, the
Warminster Purchase Option Deposit Refund Obligation will
be secured by Initial Entrance Deposits collected by
Warminster Campus, not to exceed $10 million. The
Warminster Community Loan will be amended at the
outstanding balance amount and assumed by Warminster
Campus. Warminster Campus' obligations under the
Warminster Community Loan will be subordinate to all other
debt owed by Warminster Campus or its successor.
(c) All the assets of Erickson Construction LLC will be
transferred to ERC as of the Effective Date and
immediately transferred to Redwood pursuant to the Amended
MSPA. Erickson Construction will then be liquidated and
dissolved in accordance with applicable law.
(d) Erickson Group, LLC, will be liquidated and dissolved in
accordance with applicable law.
Continued Corporate Existence
Each Debtor will continue to exist after the Effective Date as a
separate corporate entity, limited liability company,
partnership, or other form, as the case may be, with all of the
powers of a corporation, limited liability company, partnership,
or other form, as the case may be, pursuant to the applicable law
in the jurisdiction in which each applicable Debtor is
incorporated or formed and pursuant to the certificate of
incorporation and bylaw in effect prior to the Effective Date.
Transfer of Liability
No Reorganized Debtor, Redwood PropCo, Redwood DevCo, Redwood
ManagementCo, nor Redwood, nor their successors will, as a result
of confirmation of the Plan or consummation of the Restructuring
Transactions contemplated by the Amended Plan or (a) be deemed to
be a successor to the Debtors or their estates; (b) have de facto
or merged or consolidated with or into the Debtors or their
estates; or (c) be deemed to be a continuation or substantial
continuation of the Debtors, their estates, or any enterprise of
the Debtors.
Similarly, no Reorganized Debtor, Redwood PropCo, Redwood DevCo,
Redwood ManagementCo, nor Redwood, nor their successors will have
any successor or vicarious liabilities of any kind, including,
any theory of antitrust, environmental, successor or transferee
liability, labor law, de facto merger or substantial continuity,
in connection with the operation of the assets transferred in the
Restructuring Transactions prior to the Effective Date.
On and after the Effective Date, pursuant to Sections 105(a), 363
and 365 of the Bankruptcy Code, the Debtors and Reorganized
Debtors may transfer and assign any of their executory contracts
or unexpired leases that have not been rejected to Redwood,
Redwood ManagementCo, Redwood PropCo and Redwood DevCo or any of
their affiliates without any further authority, subject to the
unqualified right of Redwood, Redwood ManagementCo, Redwood
PropCo, Redwood DevCo, or any of their affiliates to refuse that
transfer or assignment.
Injunction, Discharge and Indemnification
The Amended Plan provides that all persons or entities who have
held, hold, or may hold Claims against any of the Debtors or
interests in the Debtors and all other parties-in-interest, are
permanently enjoined from and after the Effective Date, from (i)
commencing or continuing any action with respect to that Claim or
Interest; (ii) enforcing any judgment against the Debtors; (iii)
creating, perfecting, or enforcing any encumbrance of any kind
against the Debtors; or (iv) asserting any right of setoff,
subrogation, or recoupment against any obligation due from the
Debtors and related parties-in-interest.
Ay obligations of the Debtors pursuant to their corporate
charters and bylaws to indemnify current directors with respect
to all present and future actions against the Debtors or their
directors, will not be discharged or impaired by confirmation of
the Amended Plan.
Plan Amendments
Subject to the Amended MSPA and, further subject to Redwood's
prior consent, the Debtors may make appropriate technical
adjustments and modifications to the Amended Plan or Plan
Supplement prior to the Effective Date without further order of
the Bankruptcy Court. Similarly, the Debtors reserve the right
to revoke or withdraw the Amended Plan prior to the Effective
Date subject to the Amended MSPA and Redwood's prior consent.
Moreover, Mr. Doherty reminded the Court that the Debtors
recently commenced adversary proceedings against various
counterparties to the Concord Junior Loan, Dallas Junior Loan,
Houston Junior Loan, Littleton Junior Loan, Novi Junior Loan, and
Warminster Junior Loan. The Debtors sought declaratory judgment
determining that certain junior loan transactions between the
Debtors and the defendants are financing arrangements and not
leases. If the Court characterizes the transactions as financing
transactions, the Debtors will be deemed the owners of the
property subject to the junior loans and the lenders under the
junior loans will hold unsecured or secured claims against the
Debtors for any amounts outstanding under the junior loans. If
the Debtors are not successful in obtaining the relief they seek
in the adversary proceedings, the terms of the Amended Plan will
not fail, Mr. Doherty clarified.
Full-text copies of the Erickson Retirement First Amended Plan
and Disclosure Statement are available for free at:
http://bankrupt.com/misc/ERC_FirstAmPlan.pdf
http://bankrupt.com/misc/ERC_FirstAmDS.pdf
Blacklined versions of the ERC First Amended Plan and Disclosure
Statement are available for free at:
http://bankrupt.com/misc/ERC_FirstAmPlan_blacklined.pdf
http://bankrupt.com/misc/ERC_FirstAmDS_blacklined.pdf
Disclosure Statement Hearing
Judge Jernigan will consider the adequacy of the Debtors' First
Amended Disclosure Statement at a hearing scheduled for
February 5, 2010.
Any party who wishes to object to the Amended Disclosure
Statement must serve a formal objection on the Debtors' counsel
no later than February 2, 2010.
Treatment of Claims
Erickson Retirement Communities LLC Executive Vice President and
General Counsel Gerald Doherty related that the treatment of
claims is subject to subsequent modification under the First
Amended Joint Plan of Reorganization of Erickson Retirement
Communities and its debtor affiliates.
Specifically, the proceeds of the acquisition of Redwood-ERC
Senior Living Holdings, LLC of ERC and Kansas Campus, LLC will be
distributed first to holders of Allowed Secured Claims to the
extent those proceeds are attributable to the collateral of those
holders. To the extent the Transaction Proceeds are allocable to
assets which are unencumbered, those proceeds will be distributed
to holders of allowed unsecured Claims.
The Debtors have thus amended the claims classification,
treatment and estimated recovery of these claims:
Est. Entitled
Debtor Class/Designation Recovery to Vote
------ ----------------- -------- --------
Erickson Group, Class 3 Corporate 0% No
LLC Revolver Guaranty (deemed to
Claims reject)
Class 4 Erickson 0% No
Group Guaranty (deemed to
Claims reject)
Erickson Class 3 Corporate 49.6% Yes
Retirement Revolver Claims
Communities, LLC
Class 4 Interest 49.6% Yes
Rate Swap Claims
Class 5 UMBC 62.7% Yes
Building Construction
Loan Claims
Class 6 Management 100.00% Yes
Agreement Claims
Class 7 General 0% No
Unsecured Claims (deemed to
reject)
Class 8 Interests 0% No
in ERC (deemed to
reject)
Erickson Class 4 Corporate 49.6% Yes
Construction, Revolver Claims
LLC
Class 5 UMBC 62.7% Yes
Building Construction
Loan Claims
Class 6 General 0% No
Unsecured Claims (deemed to
reject)
A schedule of the amended claims classification under the
Erickson Retirement Amended Plan is available for free at:
http://bankrupt.com/misc/ERC_AmClaimClassification.pdf
With respect to the DIP Funding Claims, in the event of any sale
or disposition of the DIP Facility collateral, ERC Funding Co.
LLC, as DIP Lenders, will have the right to credit bid any or all
of the DIP Facility obligations under Section 363(k) of the
Bankruptcy Code.
ERC Class 4 Interest Rate Swap Claims is impaired.
Erickson Construction Class 5 UMBC Building Construction Loan
Claims is impaired.
With respect to the Debtor Landowners, NFP Claims, General
Unsecured Claims, and Junior Loan Claims are not entitled to vote
on the Amended Plan and are deemed to reject the Amended Plan.
Similarly, holders of mechanic's lien claims of the Debtor
Landowners are impaired and are entitled to vote on the Amended
Plan.
The Amended Plan provides for modified treatment of these claims:
* Erickson Group's Class 4 Guaranty Claims will be satisfied
and released pursuant to the Debtors Landowners' treatment
of the obligations under the applicable construction loans.
* Holders of ERC Class 3 Corporate Revolver Claims will
receive:
(i) a portion of the distributable cash derived from $365
million cash transaction proceeds shared ratably
among all holders of Corporate Revolver Claims to the
extent a portion of the Cash Transaction Proceeds is
allocable to the holders of Corporate Revolver
Claims; and
(ii) a pro rata portion of the Cash on Hand of the Debtors
for more than $10 million.
* Holders of ERC Class 4 Interest Rate Swap Claim will receive
(i) a portion of the distributable cash derived from the
$365 million Cash Transaction Proceeds shared ratably
among all holders of Interest Rate Swap Claims; and
(ii) a pro rata portion of the Cash on hand of the Debtors
for more than $10 million.
* Holders of UMBC Building Construction Loan Claims will
receive the property securing that Claim or the amount of
Allowed UMBC Construction Loan Claim to the extent that UMBC
Building Construction Loan Claim is secured from the
proceeds of a Section 363 of the Bankruptcy Code sale of
that property in full satisfaction of the holder's allowed
claim.
* Holders of ERC Class 6 Management Agreement Claims will
receive recovery in the form of a New Management Agreement.
* Holders of Erickson Construction, Ashburn Campus, LLC,
Columbus Campus, LLC, Concord Campus, LP, Dallas Campus, LP,
Houston Campus, L.P., Kansas Campus, L.P., Littleton Campus,
LLC, Novi Campus, LLC, Warminster Campus, LP Mechanic's Lien
Claims will receive cash in full satisfaction of its claim
if the holder of an allowed Mechanic's Lien Claim has a
first priority security interest in the collateral pursuant
to applicable state law. The Holder of an Allowed
Mechanic's Lien Claim will receive a distribution, if any,
relative to its priority under applicable state law in full
satisfaction of that Claim.
* Holders of Erickson Construction Class 4 Corporate Revolver
Claims will receive (i) a portion of the distributable Cash
derived from the $365 million Cash Transaction Proceeds
shared ratably among all holders of Corporate Revolver
Claims to the extent a portion of the Cash Transaction
Proceeds is allocable to the holders of Corporate Revolver
Claims, and (ii) a pro rata portion of the Cash on Hand of
the Debtors for more than $10 million.
* Holders of Erickson Construction Class 6 General Unsecured
Claim will receive a pro rata distribution of the value of
the unencumbered assets of Erickson Group's estate on
account of that holder's allowed general unsecured claim.
* Holders of Ashburn, Concord, and Houston Construction Loan
Claims will receive:
(i) a portion of the distributable Cash derived from the
$365 million Cash Transaction Proceeds shared ratably
among all holders of Construction Loan Claims
to the extent a portion of the Cash Transaction
Proceeds is allocable to the holders of the
Construction Loan Claims; and
(ii) a pro rata portion of the Cash on Hand of the Debtors
for more than $10 million.
* With respect to Ashburn, Concord, Dallas, and Houston
Community Loan Claims, the applicable Community Loans will
be amended at the outstanding balance amount and the Debtor
Landowners will assume the Community Loans, as modified.
* Holders of Littleton Class 4 Construction Loan Claims will
receive pro rata distribution of $62,132,000, including an
"out-parcel" related to Wind Crest Campus.
* Holders of Novi Class 4 Construction Loan Claims will
receive a pro rata distribution of $28,175,000.
* Holders of Dallas Class 4 Construction Loan Claims and Class
5 Texas A&M Note Claims will receive:
(i) a portion of the distributable Cash derived from the
$365 million Cash Transaction Proceeds shared ratably
among all holders of the Dallas Construction Loan
Claims to the extent a portion of the Cash
Transaction Proceeds is allocable to the Holders of
Dallas Construction Loan Claims; and
(ii) a pro rata portion of Initial Entrance Deposits after
satisfaction of DIP Funding Claims and administrative
claims.
Holders of Dallas Construction Loan Claims and Texas A&M
Note, which is a promissory note for $4.4 million granted by
Dallas to the Board of Regents to the board of regent of
Texas A&M University System, will receive recovery relative
to the value of the parcels securing the Dallas Construction
Loan and Texas A&M Note. The Dallas Construction Loan and
Texas A&M Note will be terminated and released as of the
Effective Date.
* Holders of Concord Class 6 Junior Loan Claims will receive
(i) a portion of the distributable Cash derived from the
$365 million Cash Transaction Proceeds shared ratably
among all holders of Concord Junior Loan Claims to
the extent a portion of the Cash Transaction Proceeds
is allocable to the Holders of Concord Junior Loan
Claims; and
(ii) a pro rata portion of the Cash on Hand of the Debtors
for more than $10 million.
On the Effective Date, the Reorganized Debtor will receive
title to Concord Campus, free and clear of any and all
claims and encumbrances.
* Holders of Ashburn, Kansas, Warminster and Novi Junior Loan
Claims will receive a pro rata distribution of the value of
the unencumbered assets and allocable Cash Transaction
Proceeds of the Debtor Landowners' estates on account of the
holders' Allowed Claims.
* Holders of Columbus Class 7 Junior Loan Claims will receive
a pro rata distribution, relative to the priority of its
security interest and to the extent there is any value in
the property securing the claim.
* Holders of Dallas, Littleton and Houston Junior Loan Claims
will not receive or retain any interest or property or
receive a distribution on account of their claims. On the
Effective Date, the Reorganized Debtor will receive title to
Dallas Campus, free and clear of any and all claims and
encumbrances.
* For Kansas Class 6 Special Assessment Bond Claims, Kansas
will assume the obligations under Kansas' Special Assessment
Bonds.
* Ashburn, Concord, Dallas, Houston, Kansas, Littleton, Novi,
and Warminster NFP Claims will be released and discharged as
of the Effective Date. The applicable reorganized Debtor
and not-for-profit entity will enter into new agreements as
set forth in the Amended Plan.
About Erickson Retirement
The Baltimore, Maryland-based Erickson Retirement Communities LLC
owns 20 continuing care retirement communities in 11 states.
Among Erickson's 20 communities, eight are completed, 11 are open
although in construction, and one is in development. They have
23,000 residents in total.
Erickson, along with affiliates, filed for Chapter 11 on
October 19, 2009 (Bankr. N.D. Tex. Case No. 09-37010). DLA Piper
LLP (US) serves as counsel to the Debtors. BMC Group Inc. serves
as claims and notice agent. Houlihan, Lokey, Howard & Zoukin,
Inc., is also serving as investment and financial consultant.
Alvarez & Marsal is serving as restructuring adviser.
As of September 30, 2009, on a book value basis, ERC had
approximately $2.7 billion in assets, including $2.2 billion of
property and equipment, and $3.0 billion in liabilities.
Liabilities include $195.8 million on the revolving credit,
$347.5 million on construction credit, $64 million in accounts
payable, $47.8 million in subordinate debt, and $475 million in
purchase option deposits.
Bankruptcy Creditors' Service, Inc., publishes Erickson Retirement
Bankruptcy News. The newsletter tracks the Chapter 11 proceedings
of Erickson Retirement Communities LLC and its debtor-affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
ERICKSON RETIREMENT: Identifies Funding for Insurance Programs
--------------------------------------------------------------
Erickson Retirement Communities LLC and its units are seeking
permission from the Bankruptcy Court to continue their insurance
programs postpetition.
The Debtors maintain two professional and general liability
insurance policies and two workers' compensation insurance
policies in connection with the operation of their business. The
Liability Insurance Policies are provided by Continental Casualty
Company and Columbia Casualty Company and Travelers Companies,
Inc. The Workers' Compensation Policies are provided by Zurich
American Insurance Company and Pennsylvania Manufacturers'
Association Insurance Company.
Wilmington Trust FSB, Wells Fargo Bank National Association, and
U.S. Bank National Association, filed responses to the Debtors'
Insurance Program Motion.
Wilmington Trust objects to the Debtors' request to the extent
the Insurance Motion seeks any use of the cash collateral of
certain lenders under a July 27, 2007 Credit Agreement. William
L. Medford, Esq., at Greenberg Traurig, LLP, in Dallas, Texas,
argues that the Insurance Motion does not identify the source of
funds the Debtors intend to use to pay the insurance policies and
financing agreements.
Wells Fargo and U.S. Bank urge the Court to require the Debtors
to:
* identify the terms of the renewal of the Insurance Policies,
Letters of Credit and Financing Agreements and highlight any
material differences between these and the terms of their
existing Insurance Policies, Letters of Credit and Financing
Agreements; and
* demonstrate the basis for imposing joint and several
liability on all Debtors for reimbursement obligations to
PNC Bank, N.A. for draws on any Letter of Credit and for any
losses or expenses.
Debtors Amend Motion
Subsequently, the Debtors filed with the Court an amended
Insurance Motion, reiterating their request to continue their
Insurance Programs and enter into related Financing Agreements.
The Debtors' counsel, Vincent P. Slusher, Esq., at DLA Piper LLP,
in Dallas, Texas, relates that each of the Insurance Policies and
related Letters of Credit expired on or after January 1, 2010.
The Debtors are negotiating the renewal of the Insurance
Policies, Letters of Credit, and Financing Agreements, all of
which will be substantially similar terms as the policies and
agreements that existed prior to the Petition Date.
Specifically, the Debtors negotiated an agreement with
Continental Casualty Company and Columbia Casualty Company for
the renewal of their Liability Insurance Policy. Under the
renewed Liability Insurance Policy, the annual premium is
$1.355 million, which the Debtors will finance in two installments
over the course of the year. Moreover, the Debtors are required
to establish a collateral trust pursuant to a collateral trust
agreement. The funds from the collateral trust will be used to
reimburse, as needed, ongoing claims asserted under the policy
for 2010. Pursuant to the Collateral Trust Agreement, the
Debtors are required to make a $490,000 downpayment to the trust
on January 15, 2010, and a $196,000 monthly payment for 10 months
thereafter. The Debtors are still negotiating the details of the
remaining Insurance Policy and related Financing Agreements,
according to Mr. Slusher.
In light of the nature of their business, it is essential that
the Debtors maintain uninterrupted insurance coverage and enter
into the Financing Agreement and renew the Letters of Credit, Mr.
Slusher insists. If the Debtors are not able to enter into the
Financing Agreements, they would be required to pay up-front for
the Insurance Policies. This requirement, he points out, would
negatively impact the Debtors' cash flow and their estates.
In a related request, the Debtors ask the Court to set a hearing
on the Amended Insurance Motion for January 13, 2010. If the
Debtors are not able to renew the Insurance Policies or Letters
of Credit, they will not have the necessary insurance and related
collateral required for the operation of their business, and the
continued viability of their retirement communities will be put
at risk, Mr. Slusher insists.
About Erickson Retirement
The Baltimore, Maryland-based Erickson Retirement Communities LLC
owns 20 continuing care retirement communities in 11 states.
Among Erickson's 20 communities, eight are completed, 11 are open
although in construction, and one is in development. They have
23,000 residents in total.
Erickson, along with affiliates, filed for Chapter 11 on
October 19, 2009 (Bankr. N.D. Tex. Case No. 09-37010). DLA Piper
LLP (US) serves as counsel to the Debtors. BMC Group Inc. serves
as claims and notice agent. Houlihan, Lokey, Howard & Zoukin,
Inc., is also serving as investment and financial consultant.
Alvarez & Marsal is serving as restructuring adviser.
As of September 30, 2009, on a book value basis, ERC had
approximately $2.7 billion in assets, including $2.2 billion of
property and equipment, and $3.0 billion in liabilities.
Liabilities include $195.8 million on the revolving credit,
$347.5 million on construction credit, $64 million in accounts
payable, $47.8 million in subordinate debt, and $475 million in
purchase option deposits.
Bankruptcy Creditors' Service, Inc., publishes Erickson Retirement
Bankruptcy News. The newsletter tracks the Chapter 11 proceedings
of Erickson Retirement Communities LLC and its debtor-affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
ERICKSON RETIREMENT: Various Parties Object to Examiner
-------------------------------------------------------
Several mezzanine lenders have asked the Bankruptcy Court to
appoint an examiner in the Chapter 11 cases of Erickson Retirement
Communities LLC. The mezzanine lenders say Erickson needs an
examiner for "evaluating the merits of pursuing the proposed
auction" where the first bid will come from Redwood Capital
Investors LLC. They say the sale and the reorganization plan to
implement the transfer are "perhaps wholly illegal." The hearing
on the examiner motion is set for Jan. 13.
Parties Object
In separate filings, PNC Bank, National Association, and Wells
Fargo Bank National Association, and U.S. Bank National
Association filed responses to Strategic Ashby Ponds Lender LLC;
Strategic Concord Landholder, LP; HCP ER6, LP; HCP ER2, LP; HCP
ER3, LP; MSRESS III Dallas Campus, L.P.; MSRES III Denver Campus,
LLC; and MSRESS III Kansas Campus, L.P.'s request for the
appointment of an examiner under Section 1104 of the Bankruptcy
Code in the Debtors' Chapter 11 cases.
Counsel to PNC Bank, as administrative agent to lenders to senior
secured project loans aggregating $264,000,000, Daniel I.
Morenoff, Esq., at K&L Gates LLP, in Dallas, Texas, explains that
an auction of the Debtors' assets has already occurred and thus,
a review by an Examiner on whether the auction is in the best
interests of the Debtors' estates is a collateral attack on the
Court's Bidding Procedures Order and should not be permitted.
Moreover, nothing prevents the Mezzanine Lenders from negotiating
with the Debtors as to the terms of a Chapter 11 plan, he points
out. The Examiner Motion is an attempt to shift the legal
expenses of the Mezzanine Lenders to the Debtors' estates, PNC
Bank alleges. PNC Bank thus maintains that it does not consent
to the surcharge of its collateral to pay the fees and expenses
incurred by an Examiner.
For their part, Wells Fargo and U.S. Bank are concerned with the
administrative costs associated with the potential appointment of
any examiner in the Debtors' Chapter 11 cases. Thus, they
reserve their right to object to any fees and expenses incurred
by any examiner's professionals, the allocation of any fees and
expenses of any examiner and its professionals to Debtor
Warminster Campus LP, or any other entity with obligations to
Wells Fargo and U.S. Bank.
Bank of America, N.A. joins in the objections filed by PNC Bank,
Wells Fargo and U.S. Bank.
About Erickson Retirement
The Baltimore, Maryland-based Erickson Retirement Communities LLC
owns 20 continuing care retirement communities in 11 states.
Among Erickson's 20 communities, eight are completed, 11 are open
although in construction, and one is in development. They have
23,000 residents in total.
Erickson, along with affiliates, filed for Chapter 11 on
October 19, 2009 (Bankr. N.D. Tex. Case No. 09-37010). DLA Piper
LLP (US) serves as counsel to the Debtors. BMC Group Inc. serves
as claims and notice agent. Houlihan, Lokey, Howard & Zoukin,
Inc., is also serving as investment and financial consultant.
Alvarez & Marsal is serving as restructuring adviser.
As of September 30, 2009, on a book value basis, ERC had
approximately $2.7 billion in assets, including $2.2 billion of
property and equipment, and $3.0 billion in liabilities.
Liabilities include $195.8 million on the revolving credit,
$347.5 million on construction credit, $64 million in accounts
payable, $47.8 million in subordinate debt, and $475 million in
purchase option deposits.
Bankruptcy Creditors' Service, Inc., publishes Erickson Retirement
Bankruptcy News. The newsletter tracks the Chapter 11 proceedings
of Erickson Retirement Communities LLC and its debtor-affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
EVERYDAY LOGISTICS: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------------
Debtor: Everyday Logistics LLC
156 Grandview Ave
Monsey, NY 10952
Bankruptcy Case No.: 10-22026
Chapter 11 Petition Date: January 7, 2010
Court: United States Bankruptcy Court
Southern District of New York (White Plains)
Debtor's Counsel: Mark A. Frankel, Esq.
Backenroth Frankel & Krinsky, LLP
489 Fifth Avenue
New York, NY 10017
Tel: (212) 593-1100
Fax: (212) 644-0544
Email: mfrankel@bfklaw.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $10,000,001 to $50,000,000
A full-text copy of the Debtor's petition, including a list of its
20 largest unsecured creditors, is available for free at:
http://bankrupt.com/misc/nysb10-22026.pdf
The petition was signed by Eliot Spitzer.
EXPRESS ENERGY: S&P Withdraws 'D' Corporate Credit Rating
---------------------------------------------------------
Standard & Poor's Ratings Services withdrew its 'D' corporate
credit rating on Houston-based oilfield services firm Express
Energy Services Operating L.P., at the company's request.
FAIRVUE CLUB: Files Schedules of Assets and Liabilities
-------------------------------------------------------
Fairvue Club Properties, LLC, filed with the U.S. Bankruptcy Court
for the Middle District of Tennessee its schedules of assets and
liabilities, disclosing:
Name of Schedule Assets Liabilities
---------------- ----------- -----------
A. Real Property $11,100,000
B. Personal Property $2,187,625
C. Property Claimed as
Exempt
D. Creditors Holding
Secured Claims $16,617,166
E. Creditors Holding
Unsecured Priority
Claims $160,063
F. Creditors Holding
Unsecured Non-priority
Claims $437,946
----------- -----------
$13,287,625 $17,215,175
Gallatin, Tennessee-based Fairvue Club Properties, LLC, filed for
Chapter 11 bankruptcy protection on December 1, 2009 (Bankr. M.D.
Tenn. Case No. 09-13807). William L. Norton, III, Esq., at
Bradley Arant Boult Cummings LLP assists the Company in its
restructuring effort. The Company listed $10,000,001 to
$50,000,000 in assets and $10,000,001 to $50,000,000 in
liabilities.
FIRST REPUBLIC: Creditors Fail to Show Irreparable Injury
---------------------------------------------------------
WestLaw reports that creditors seeking a preliminary injunction to
prevent a Chapter 11 debtor from dissipating funds traceable to an
allegedly unauthorized distribution from an escrow account failed
to make the requisite showing of irreparable injury, though the
debtor's solvency and ability to repay creditors if they prevailed
on their claims was in serious doubt. The creditors had an
alternate monetary remedy against the escrow agent and other third
parties that would not be diminished by denial of preliminary
injunctive relief. Moreover, the creditors' delay in seeking
either to have the distribution set aside or to obtain injunctive
relief against the dissipation of funds further undercut their
claims of irreparable injury. In re First Republic Group Realty,
LLC, --- B.R. ----, 2009 WL 4824774 (Bankr. S.D.N.Y.).
New York City-based First Republic Group Realty, LLC, and FRGR
Managing Member LLC own and operate 11 shopping malls located
throughout the Southeastern United States. The Debtors
filed Chapter 11 petitions on June 22, 2009 (Bankr. S.D.N.Y.
Case No. 09-13983). Tracy L. Klestadt, Esq., at Klestadt &
Winters, LLP, represents the Debtors in their restructuring
efforts. The Debtors estimate their assets and debts at
$100 million to $500 million.
FIRSTFED FINANCIAL: Chapter 11 Petition Filed
---------------------------------------------
FirstFed Financial filed for Chapter 11 protection (Bankr. C.D.
Calif. Case No. 10-10150).
The Company, which was until recently a holding company for First
Federal Bank of California, is represented by Jon L. Dalberg of
Landau Gottfried & Berger.
The Company listed assets of $4.8 million and $159.7 million in
liabilities in its bankruptcy petition. On its most recent annual
report, the Company had listed total prepetition assets of
$7.5 billion.
On December 18, 2009, First Federal Bank of California, the
wholly-owned subsidiary and principal asset of FirstFed Financial,
was closed by the Office of Thrift Supervision and the Federal
Deposit Insurance Corporation was appointed as receiver of the
Bank. On the same date, the FDIC transferred certain of the assets
and liabilities of the Bank to OneWest Bank. As a result of the
closure of the Bank and the FDIC assuming control, as receiver,
James P. Giraldin, the Company's president and chief operating
officer, Douglas J. Goddard, the Company's executive vice
president/chief financial officer and Brenda Battey, the Company's
senior vice president/controller resigned as officers of the
Company, effective immediately. Babette Heimbuch also tendered
her resignation as chief executive officer and as a member of the
board, effective December 31, 2009, and immediately ceased serving
as chairman of the board of directors of the Company and the Bank.
About FirstFed Financial Corp.
Los Angeles, California-based FirstFed Financial Corp. (OTC-
FFED.PK) -- http:///www.firstfedca.com/-- is a savings and loan
holding company. The Company owns and operates First Federal Bank
of California, a federally chartered savings association.
At September 30, 2009, the Company had $6,150,613,000 in total
assets against $6,039,533,000 in total liabilities, resulting in
stockholders' equity of $111,080,000.
39 of FirsFed Financial's banking branches were bought by OneWest
Bank, Mr. Liston adds.
Based in California, FirstFed Financial (OTC: FFED) is a financial
institution.
FIRSTFED FINANCIAL: Case Summary & 16 Largest Unsecured Creditors
-----------------------------------------------------------------
Debtor: FirstFed Financial Corp.
6320 Canoga Ave., #1551
Woodland Hills, CA 91367
Bankruptcy Case No.: 10-10150
Chapter 11 Petition Date: January 6, 2010
Court: United States Bankruptcy Court
Central District of California (San Fernando Valley)
Judge: Geraldine Mund
Debtor's Counsel: Jon L. Dalberg, Esq.
Landau Gottfried & Berger LLP
1801 Century Park East Ste 1460
Los Angeles, CA 90067
Tel: (310) 557-0050
Fax: (310) 557-0056
Email: jdalberg@lgbfirm.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $100,000,001 to $500,000,000
A full-text copy of the Debtor's petition, including a list of its
16 largest unsecured creditors, is available for free at:
http://bankrupt.com/misc/cacb10-10150.pdf
The petition was signed by Babette Heimbuch, chief executive
officer of the Company.
FORUM HEALTH: January 11 Deadline Put Off But No New Date
---------------------------------------------------------
Business Journal Daily says the January 11 deadline to decide
whether to file a plan of reorganization or a merger-and-
acquisitions process of Forum Health Inc. was put off, and was
moved to a date yet to be determined.
Report say a renewal of the cash collateral agreement due to be
submitted to the court on Jan. 14, 2010 provides for regular
progress reports to company's lenders and creditors.
Forum Health and its affiliates filed for Chapter 11 protection on
March 16, 2009 (Bankr. N.D. Ohio Lead Case No. 09-40795). Paul W.
Linehan, Esq., and Shawn M Riley, Esq., at McDonald Hopkins LLC,
serve as lead counsel to the Debtors. The Debtors have also
tapped Michael A. Gallo, Esq. at Nadler Nadler & Burdman Co., LPA
as co- counsel; Kurtzman Carson Consultants LLC as claims,
noticing and balloting agent; and Huron Consulting Services LLC as
financial advisors. Alston & Bird LLP represents the official
committee of unsecured creditors formed in the Chapter 11 cases.
At the time of its filing, Forum Health estimated that it had
assets and debts both ranging from $100 million to $500 million.
FOXLAND HARBOR MARINA: Voluntary Chapter 11 Case Summary
--------------------------------------------------------
Debtor: Foxland Harbor Marina LLC
153 Douglas Bend
Gallatin, TN 37066
Bankruptcy Case No.: 09-14911
Chapter 11 Petition Date: December 31, 2009
Court: United States Bankruptcy Court
Middle District of Tennessee (Nashville)
Debtor's Counsel: William L. Norton, III, Esq.
Bradley Arant Boult Cummings Llp
Po Box 340025
Nashville, TN 37203
Tel: (615) 252-2397
Fax: (615) 252-6397
Email: bnorton@babc.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Debtor did not file a list of its 20 largest unsecured
creditors when it filed its petition.
The petition was signed by Chris Wicke, officer/president of the
Company.
FULL OF FAITH MINISTRIES: Voluntary Chapter 11 Case Summary
-----------------------------------------------------------
Debtor: Full of Faith Ministries, Inc.
2957 Bright Eagle Drive
Jacksonville, FL 32226
Bankruptcy Case No.: 10-00075
Chapter 11 Petition Date: January 6, 2010
Court: United States Bankruptcy Court
Middle District of Florida (Jacksonville)
Judge: Chief Judge Peter W. Bowie
Debtor's Counsel: Gerald B. Stewart, Esq.
220 East Forsyth Street
Jacksonville, FL 32202
Tel: (904) 353-8876
Fax: (904) 356-2776
Email: geraldstewart@fdn.com
Estimated Assets: Not Stated
Estimated Debts: $0 to $50,000
The Debtor did not file a list of its 20 largest unsecured
creditors when it filed its petition.
The petition was signed by Gennell L. Coats, president of the
Company.
GATEWAY CASINOS: S&P Downgrades Corporate Credit Rating to 'D'
--------------------------------------------------------------
Standard & Poor's Ratings Services lowered its corporate credit
and issue-level ratings on British Columbia, Canada-based gaming
company Gateway Casinos & Entertainment Inc. to 'D'.
The recovery rating on Gateway's first-lien credit facilities
remains unchanged at '3', indicating S&P's expectation of
meaningful (50% to 70%) recovery for lenders, and the recovery
rating on the second-lien credit facility remains unchanged at
'6', indicating S&P's expectation of negligible (0% to 10%)
recovery.
The rating actions stem from the fact that Gateway did not make
required principal and interest payments on its first and second-
lien credit facilities on Dec. 31, 2009 and Jan. 4, 2010. Gateway
is in discussions with lenders and has entered into forbearance
agreements with both first- and second-lien lenders.
GENMAR HOLDINGS: All Assets Sold in Bankruptcy Auction
------------------------------------------------------
Genmar Holdings, Inc., disclosed that all of its assets have been
sold in accordance with an auction process under Section 363 of
the Bankruptcy Code.
Multiple bidders were involved in the auction process that was
conducted by Houlihan, Lokey, Howard and Zukin Capital, Inc. The
highest bidders for the assets were as follows: (1) Platinum
Equity's acquisition of essentially all of the assets except those
otherwise acquired for $70 million; (2) J&D Acquisitions, LLC's
acquisition of Carver/Marquis for $6.05 million; and (3) MCBC
Hydra Boats, LLC's acquisition of Hydra-Sport for $1 million. The
sale transactions are subject to approval by the Bankruptcy Court,
which is scheduled for hearing on January 13, 2010. The closing
date of the transactions is scheduled for January 20, 2010.
"We are pleased with the results of the auction process and look
forward to bringing closure to this transaction so that the
businesses can refocus their energies and resources on sales and
service, without the inherent distractions of being in
bankruptcy," said Mark W. Sheffert, Chairman and CEO of Manchester
Companies, Inc., who is the Chief Restructuring Officer of Genmar
Holdings, Inc.
About Genmar Holdings, Inc.
Pulaski, Wisconsin-based Carver Italia, LLC, and its affiliates,
including Genmar Holdings, Inc. -- http://www.genmar.com/--
is the world's second-largest manufacturer of fiberglass
powerboats. It generated $460 million in annual revenue making
boats using brand names including Carver, Four Winns, Glastron,
Larson, and Wellcraft.
Genmar and an affiliate filed for Chapter 11 bankruptcy protection
on June 1, 2009 (Bankr. D. Minn. Case No. 09-33773, and 09-43537).
James L. Baillie, Esq., and Ryan Murphy, Esq., at Fredrikson &
Byron, PA, assist the Debtors in their restructuring efforts.
Carver Italia listed $10 million to $50 million in assets and
$100 million to $500 million in debts.
Manchester Companies, Inc., was named Chief Restructuring Officer
of Genmar and approved by the Bankruptcy Court in June and has
been managing the company's restructuring process since then.
GLOBAL DEMOLITION: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------------
Debtor: Global Demolition & Recycling, LLC, Debtor
P.O. Box 54
Fort Howard, MD 21052
Bankruptcy Case No.: 10-10026
Chapter 11 Petition Date: January 6, 2010
Court: United States Bankruptcy Court
District of Delaware (Delaware)
Judge: Mary F. Walrath
Debtor's Counsel: Donna L. Harris, Esq.
Pinckney, Harris & Weidinger, LLC
1220 N. Market Street, Suite 950
Wilmington, DE 19801
Tel: (302) 504-1499 - Direct
Fax: (302) 442-7046
Email: dharris@phw-law.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A list of the Company's 20 largest unsecured creditors is
available for free at:
http://bankrupt.com/misc/deb10-10026.pdf
The petition was signed by Albert Arillotta, managing member of
the Company.
GMI FINANCIAL: Voluntary Chapter 11 Case Summary
------------------------------------------------
Debtor: GMI Financial Group, Inc.
Po Box 306
Safford, AZ 85548
Bankruptcy Case No.: 10-00214
Chapter 11 Petition Date: January 6, 2010
Court: United States Bankruptcy Court
District of Arizona (Tucson)
Judge: Eileen W. Hollowell
Debtor's Counsel: Dennis J. Wortman, Esq.
202 East Earll Drive, Ste. 490
Phoenix, AZ 85012
Tel: (602) 257-0101
Fax: (602) 279-5650
Email: djwortman@azbar.org
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Debtor did not file a list of its 20 largest unsecured
creditors when it filed its petition.
The petition was signed by Tim E. Alder, president of the Company.
GREEKTOWN HOLDINGS: Gets Nod for $210MM Loans from Jefferies
------------------------------------------------------------
Greektown Holdings, LLC, and its debtor affiliates obtained
permission from the U.S. Bankruptcy Court for the Eastern
District of Michigan to obtain new secured postpetition financing
of up to $210,000,000 from a syndicate of lenders led by
Jefferies Finance LLC and Goldman Sachs Lending Partners LLC.
The New DIP Loan Proceeds consist of a $190,000,000 term loan and
a $20,000,000 delay draw loan.
The Term Loan Proceeds are to be used to repay in full the
Original DIP Loans obtained by the Debtors postpetition from a
group of lenders led by Merrill Lynch Capital Corporation and to
satisfy, release and discharge all Original DIP Obligations. It
is also to be used to repay amounts to reimburse reasonable fees
and expenses in accordance with a prepared budget.
The Delay Draw Loan Proceeds, on the other hand, are to be sued
to make capital contributions to Greektown Casino LLC, which the
Debtor will use for operating costs and to repay amounts to
reimburse reasonable fees and expenses, in each case in
accordance with a budget and the Jefferies DIP Credit Agreement.
The New DIP Lenders are granted priming liens and superpriority
claims in all the DIP Collateral to secure any and all of the
Debtors' DIP Obligations.
The Debtors are also authorized to pay all fees and expenses that
may be reasonably required or necessary for the performance of
their obligations under the Jefferies DIP Credit Agreement. The
Fees include agent fees, commitment fees, syndication fees,
arrangement fees, underwriting gees and reasonable attorneys' and
consultants' fees.
The Jefferies DIP Order was entered by the Court on December 23,
2009. Any objection to the DIP Motion not otherwise resolved or
withdrawn is overruled on its merits.
It is also noted that the Michigan Gaming Control Board approved
the Jefferies DIP Credit Agreement on December 15, 2009. All
rights of the MGCB with respect to its ongoing regulatory powers
are preserved.
Greektown Casino and Jenkins/Skanska Venture, LLC, are parties to
a prepetition construction contract. Jenkins/Skanska has
asserted that it is owed, under the Construction Contract or
under law, the sum of $526,831 for professional fees it incurred
in connection with the cases, and that those obligations are
secured under Michigan's Construction Lien Laws. Nothing
contained in the Final Jefferies DIP Order will modify, alter,
amend or in any manner affect, any of the rights, priorities or
defenses of Jenkins/Skanska, on one hand, or the Debtor
Borrowers, the Guarantors, the Prepetition Lenders, the
DIP Lenders, the Ad Hoc Lender Group or the Put Parties,
on the other hand.
The Jefferies DIP Agreement will terminate on the earliest to
occur of (i) September 30, 2010, (ii) the effective date of a
Chapter 11 plan for the Debtors, (iii) the sale or transfer of
all or substantially all of the Debtors' Permanent Casino
Complex, or (iv) upon the occurrence of an event of default.
A full-text copy of the Jefferies Final DIP Order is available
for free at http://bankrupt.com/misc/GrktnPostPFin.pdf
Notice of Errata
The Debtors subsequently filed a notice of errata regarding the
Final DIP Order. Michael E. Baum, Esq., at Schafer and Weiner
PLLC, in Bloomfield Hills, Michigan, notes that this language on
page 10 of the Order is incorrect:
"As of the date hereof, the Original DIP Loans, plus accrued
but unpaid interest thereon and exit fees provided for in the
Original DIP Credit Agreement which have been agreed and
settled upon in the amount of $750,000, are outstanding in the
aggregate amount of $189,522,657.45 (the "December 28, 2009
Payoff Amount") if payment is received by the Original DIP
Agent by 11 a.m. Eastern Standard Time on December 28,
2009 . . ."
and should be read as:
"As of the date hereof, the Original DIP Loans, plus accrued
but unpaid interest thereon and exit fees provided for in the
Original DIP Credit Agreement which have been agreed and
settled upon in the amount of $750,000, are outstanding in the
aggregate amount of $189,690,295.67 (the "December 29, 2009
Payoff Amount") if payment is received by the Original DIP
Agent by 11 a.m. Eastern Standard Time on December 29,
2009 . . ."
Cash Collateral
In connection with the Debtors' new $210 million postpetition
financing agreement with Jefferies Finance LLC and certain other
lenders, Judge Shapero grants the Debtors continued access to the
their Cash Collateral in accordance with a rolling 13-week
budget.
The Debtors are to use the Cash Collateral to fund the "operating
component" of the Budget in the manner provided for under the DIP
Loan Documents.
The Prepetition Lenders are entitled to adequate protection of
their interests in the Prepetition Collateral for and equal in
amount to the aggregate postpetition diminution in the value of
their interests in the Prepetition Collateral, the Court rules.
About Greektown Casino
Based in Detroit, Michigan, Greektown Holdings, LLC, and its
affiliates -- http://www.greektowncasino.com/-- operates
world-class casino gaming facilities located in Detroit's
historic Greektown district featuring more than 75,000 square
feet of casino gaming space with more than 2,400 slot machines,
over 70 tables games, a 12,500-square foot salon dedicated to
high limit gaming and the largest live poker room in the
metropolitan Detroit gaming market. Greektown Casino employs
approximately 1,971 employees, and estimates that it attracts
over 15,800 patrons each day, many of whom make regular visits to
its casino complex and related properties. In 2007, Greektown
Casino achieved a 25.6% market share of the metropolitan Detroit
gaming market. Greektown Casino has also been rated as the "Best
Casino in Michigan" and "Best Casino in Detroit" numerous times
in annual readers' polls in Detroit's two largest newspapers.
The Company and seven of its affiliates filed for Chapter 11
protection on May 29, 2008 (Bankr. E.D. Mich. Lead Case No.
08-53104). Daniel J. Weiner, Esq., Michael E. Baum, Esq., and
Ryan D. Heilman, Esq., at Schafer and Weiner PLLC, represent the
Debtors in their restructuring efforts. Judy B. Calton, Esq., at
Honigman Miller Schwartz and Cohn LLP, represents the Debtors as
their special counsel. The Debtors chose Conway MacKenzie &
Dunleavy as their financial advisor, and Kurtzman Carson
Consultants LLC as claims, noticing, and balloting agent. Clark
Hill PLC serves as counsel to the Official Committee of Unsecured
Creditors.
Greektown Holdings listed assets and debts of $100 million to
$500 million in its bankruptcy petition.
Bankruptcy Creditors' Service, Inc., publishes Greektown Casino
Bankruptcy News. The newsletter tracks the Chapter 11
proceedings undertaken by Greektown Casino and its various
affiliates. (http://bankrupt.com/newsstand/or 215/945-7000)
GREEKTOWN HOLDINGS: Gets Nod to Lease to BAC Greektown
------------------------------------------------------
Greektown Holdings Inc. and its units obtained approval to lease a
3,552 sq. ft. vacant space inside the Greektown Casino Complex to
BAC Greektown LLC pursuant to an agreement.
In addition to their casino operations, the Debtors lease space
to certain restaurants and other vendors inside the Greektown
Casino Complex. The Debtors note that BAC is interested in
leasing the 3,552 sq. ft. space inside their Casino Complex for
the operation of a "Five-Guys Burgers and Fries" franchise.
Daniel J. Weiner, Esq., at Schafer and Weiner PLLC, in Bloomfield
Hills, Michigan, tells the Court that although the Debtors
believe that leasing the Vacant Space is in the ordinary course
of their business, they seek authorization from the Court out of
an abundance of caution in the event the Agreement is deemed
outside of the ordinary course of business and to satisfy BAC's
requirement that the Agreement be allowed by a Court order.
The salient terms of the parties' Lease Agreement are:
(a) The Lease provides for a five-year lease term, plus three
options to renew for five years each;
(b) The Initial Term annual rent is $120,000 per annum, plus
percentage rent; and
(c) The parties will execute a non-disturbance agreement from
the current holder of the mortgage on the Greektown Casino
Complex.
Mr. Weiner relates that BAC's obligations under the Agreement are
guaranteed by certain three individuals, who, upon information
and belief, have sufficient financial wherewithal to back the
guarantees.
About Greektown Casino
Based in Detroit, Michigan, Greektown Holdings, LLC, and its
affiliates -- http://www.greektowncasino.com/-- operates
world-class casino gaming facilities located in Detroit's
historic Greektown district featuring more than 75,000 square
feet of casino gaming space with more than 2,400 slot machines,
over 70 tables games, a 12,500-square foot salon dedicated to
high limit gaming and the largest live poker room in the
metropolitan Detroit gaming market. Greektown Casino employs
approximately 1,971 employees, and estimates that it attracts
over 15,800 patrons each day, many of whom make regular visits to
its casino complex and related properties. In 2007, Greektown
Casino achieved a 25.6% market share of the metropolitan Detroit
gaming market. Greektown Casino has also been rated as the "Best
Casino in Michigan" and "Best Casino in Detroit" numerous times
in annual readers' polls in Detroit's two largest newspapers.
The Company and seven of its affiliates filed for Chapter 11
protection on May 29, 2008 (Bankr. E.D. Mich. Lead Case No.
08-53104). Daniel J. Weiner, Esq., Michael E. Baum, Esq., and
Ryan D. Heilman, Esq., at Schafer and Weiner PLLC, represent the
Debtors in their restructuring efforts. Judy B. Calton, Esq., at
Honigman Miller Schwartz and Cohn LLP, represents the Debtors as
their special counsel. The Debtors chose Conway MacKenzie &
Dunleavy as their financial advisor, and Kurtzman Carson
Consultants LLC as claims, noticing, and balloting agent. Clark
Hill PLC serves as counsel to the Official Committee of Unsecured
Creditors.
Greektown Holdings listed assets and debts of $100 million to
$500 million in its bankruptcy petition.
Bankruptcy Creditors' Service, Inc., publishes Greektown Casino
Bankruptcy News. The newsletter tracks the Chapter 11
proceedings undertaken by Greektown Casino and its various
affiliates. (http://bankrupt.com/newsstand/or 215/945-7000)
GREEKTOWN HOLDINGS: Parties Respond to Noteholder Plan
------------------------------------------------------
To recall, a group of noteholders, which include Manulife
Financial Corp., MFC Global Investment Management, and certain
John Hancock Entities, won Bankruptcy Court approval on
December 4, 2009, of the disclosure statement outlining the
Chapter 11 plan they proposed for the reorganization of Greektown
Casino Holdings, LLC, and its debtor affiliates.
Judge Shapero of the U.S. Bankruptcy Court for the Eastern
District of Michigan overruled all objections to the Noteholder
Disclosure Statement.
With the entry of the Court's order, the process of soliciting
votes for the Noteholder Plan have commenced.
Responses
A. City of Detroit
On behalf of the City of Detroit, Cezar M. Froelich, Esq., at
Shefsky & Froelich Ltd., in Chicago, Illinois, notes that "a
bedrock component" of the "Noteholder Plan" is a certain
development agreement between the City and Debtor Greektown
Casino LLC. He asserts that the Debtors cannot be licensed and
operate without the Development Agreement.
The Noteholder Plan is an alternative plan proposed by a group of
Noteholders, which include Manulife Financial Group, MFC Global
Investment Management, and certain John Hancock Entities.
The parties' Development Agreement is a contract relating to the
development, construction, ownership and operation of a casino
complex in Detroit, Michigan. The Development Agreement is
required in order for the Noteholder Plan Proponents to be
licensed by the Michigan Gaming Control Board, Mr. Froelich
reminds the Court.
The assumption of the Development Agreement, however, is subject
to a pending appeal in the U.S. District Court of Appeal.
Sub-section 6.2.7 of the Noteholder Plan provides that:
"Either the Debtors' assumption of the current development
agreement with the City of Detroit, or the Debtors' entry
into a revised development agreement with the City of Detroit
acceptable to the Put Parties that complies with M.C.L. S
432.206(1)(b), shall have been approved by a Final Order."
Mr. Froelich notes that the Noteholder Plan allows the Noteholder
Plan Proponents to waive Section 6.2.7 to achieve consummation of
the Noteholder Plan with a final order relating to the
assumption. For this reason, the City objects to the waiver
provision because it may impede, limit or moot the Appeal, as
well as the City's regulatory functions.
B. Sault Ste. Marie Tribe
On behalf of the Sault Ste. Marie Tribe of Chippewa Indians and
the Kewadin Casinos Gaming Authority, David A. Lerner, Esq., at
Plunkett Cooney, in Bloomfield Hills, Michigan, contends that the
Noteholder Plan is not feasible because its consummation
involves, in addition to obtaining amounts to fund the Plan,
regulatory approvals by the Michigan Gaming Control Board and the
City of Detroit and the assumption of the current development
agreement or execution of a new one with the City. He maintains
that satisfaction of these conditions is complicated and
extremely uncertain and failure to satisfy any one of these
conditions will result in the Noteholder Plan not being
consummated.
"Although it is not required for the Plan to guarantee success,
it must present a reasonable assurance of success, which provides
a realistic and workable framework for reorganization," Mr.
Lerner says.
In addition, Mr. Lerner argues that it is unclear whether the
Noteholder Plan will ever be effective. He explains that by
proposing a conditional plan with a June 2010 effective date and
forcing a confirmation hearing in early January 2010, the
Noteholder Plan Proponents are, in effect, attempting to lock
down the Debtors' most valuable assets without fully committing
to perform under the Noteholder Plan. For this reason, Mr.
Lerner emphasizes, the Noteholder Plan Proponents have failed to
act in good faith in proposing the Noteholder Plan and the
confirmation of the Plan should be denied.
Ted & Maria Gatzaros concur with the Tribe's objection.
C. Jim & Viola Papas, et al.
Dimitrios Papas and Viola Papas, Pegasus Greektown Inc., Dionysis
LLC, and Helicon Development LLC, d/b/a Helicon Holdings, ask the
Court not to confirm the Noteholder Plan.
Lisa S. Gretchko, Esq., at Howard & Howard Attorneys PLLC, in
Royal Oak, Michigan, contends that the Noteholder Plan is
unconfirmable because the solicitation process disenfranchised
impaired creditors who were entitled to vote.
Ms. Gretchko further argues that the Noteholder Plan was designed
to keep creditors in the dark and thus, did not require Plan
supplements or exhibits to be filed before the balloting
deadline. She notes that neither the Plan Supplement nor the
Exhibits have been filed, and that none of the Objecting Parties
ever received a ballot or notification indicating which class
their claims are in.
Where the Objecting Parties received a notice of non-voting
status, Ms. Gretchko points out that the Notice failed to
disclose which of the Objecting Parties' claims are not
classified, impaired, and are wholly impaired.
Ms. Gretchko further argues that the Non-voting Status Notice is
wrong because Pegasus, Dionysis and Helicon were entitled to vote
on the Noteholder Plan. She relates that Pegasus, Dionysis and
Helicon each have a claim against Greektown Casino LLC, which are
secured by a right of setoff pursuant to a certain agreement.
The previous Plan Proponents sent Pegasus, Dionysis and Helicon
ballots so that they could vote, Ms. Gretchko notes.
"The solicitation process on the Noteholders' Plan is a far cry
from the care that was taken in the previous plans' solicitation
processes," she says.
The Noteholder Plan is confusing and unduly complicated and
contradicts other Plan provisions, Ms. Gretchko asserts. She
points out the Noteholder Plan Proponents have too much power.
Ted & Maria Gatzaros concur with the Papases' objection.
About Greektown Casino
Based in Detroit, Michigan, Greektown Holdings, LLC, and its
affiliates -- http://www.greektowncasino.com/-- operates
world-class casino gaming facilities located in Detroit's
historic Greektown district featuring more than 75,000 square
feet of casino gaming space with more than 2,400 slot machines,
over 70 tables games, a 12,500-square foot salon dedicated to
high limit gaming and the largest live poker room in the
metropolitan Detroit gaming market. Greektown Casino employs
approximately 1,971 employees, and estimates that it attracts
over 15,800 patrons each day, many of whom make regular visits to
its casino complex and related properties. In 2007, Greektown
Casino achieved a 25.6% market share of the metropolitan Detroit
gaming market. Greektown Casino has also been rated as the "Best
Casino in Michigan" and "Best Casino in Detroit" numerous times
in annual readers' polls in Detroit's two largest newspapers.
The Company and seven of its affiliates filed for Chapter 11
protection on May 29, 2008 (Bankr. E.D. Mich. Lead Case No.
08-53104). Daniel J. Weiner, Esq., Michael E. Baum, Esq., and
Ryan D. Heilman, Esq., at Schafer and Weiner PLLC, represent the
Debtors in their restructuring efforts. Judy B. Calton, Esq., at
Honigman Miller Schwartz and Cohn LLP, represents the Debtors as
their special counsel. The Debtors chose Conway MacKenzie &
Dunleavy as their financial advisor, and Kurtzman Carson
Consultants LLC as claims, noticing, and balloting agent. Clark
Hill PLC serves as counsel to the Official Committee of Unsecured
Creditors.
Greektown Holdings listed assets and debts of $100 million to
$500 million in its bankruptcy petition.
Bankruptcy Creditors' Service, Inc., publishes Greektown Casino
Bankruptcy News. The newsletter tracks the Chapter 11
proceedings undertaken by Greektown Casino and its various
affiliates. (http://bankrupt.com/newsstand/or 215/945-7000)
GREGORY ALLEN MELLINGER: Case Summary & 8 Largest Unsec. Creditors
------------------------------------------------------------------
Debtor: Gregory Allen Mellinger
444 East Avenue Q7 Unit A
Palmdale, CA 93550
Bankruptcy Case No.: 09-27641
Chapter 11 Petition Date: December 30, 2009
Court: United States Bankruptcy Court
Central District of California (San Fernando Valley)
Judge: Geraldine Mund
Debtor's Counsel: Stephen L. Burton, Esq.
15260 Ventura Blvd Ste 640
Sherman Oaks, CA 91403
Tel: (818) 501-5055
Fax: (818) 501-5849
Email: steveburtonlaw@aol.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A full-text copy of Mr. Mellinger's petition, including a list of
his 8 largest unsecured creditors, is available for free at:
http://bankrupt.com/misc/cacb09-27641.pdf
The petition was signed by Mr. Mellinger.
HARRAH'S OPERATING: Bank Debt Trades at 101.77%
-----------------------------------------------
Participations in a syndicated loan under which Harrah's Operating
Company, Inc., is a borrower traded in the secondary market at
101.77 cents-on-the-dollar during the week ended Friday, Jan. 8,
2010, according to data compiled by Loan Pricing Corp. and
reported in The Wall Street Journal. This represents increase of
2.49 percentage points from the previous week, The Journal
reports. The Company pays 750 basis points above LIBOR to borrow
under the facility. The bank loan matures on Oct. 23, 2016, and
carries Moody's Caa1 rating and Standard & Poor's B- rating. The
debt is one of the biggest gainers and losers among 160 widely
quoted syndicated loans with five or more bids in secondary
trading for the week ended Jan. 8, 2010.
Las Vegas, Nevada-based Harrah's Entertainment, Inc. --
http://www.harrahs.com/-- through its wholly owned subsidiary,
Harrah's Operating Company, Inc., operates nearly 40 casinos
across the United States, primarily under the Harrah's(R),
Caesars(R) and Horseshoe(R) brand names; Harrah's also owns the
London Clubs International family of casinos and the World Series
of Poker(R). Private equity firms Apollo Global Management and
TPG Capital LP acquired Harrah's in January for $31 billion.
As of June 30, 2009, the Company had $30.7 billion in total assets
and total current liabilities of $1.71 billion, long-term debt of
$19.3 billion, deferred credits and other of $718.2 million,
deferred income taxes of $5.74 billion, and preferred stock of
$2.46 billion.
Harrah's Entertainment carries a 'Caa3' Corporate Family rating,
and a 'Caa3' Probability of default rating from Moody's. The
ratings "reflect very high leverage and a negative outlook for
gaming demand over the next year," Moody's said in September 2009.
HAWKER BEECHCRAFT: Bank Debt Trades at 23.5% Off
------------------------------------------------
Participations in a syndicated loan under which Hawker Beechcraft
is a borrower traded in the secondary market at 76.50 cents-on-
the-dollar during the week ended Friday, Jan. 8, 2010, according
to data compiled by Loan Pricing Corp. and reported in The Wall
Street Journal. This represents increase of 2.42 percentage
points from the previous week, The Journal reports. The Company
pays 200 basis points above LIBOR to borrow under the facility.
The bank loan matures on March 26, 2014, and carries Moody's Caa1
rating and Standard & Poor's CCC+ rating. The debt is one of the
biggest gainers and losers among 160 widely quoted syndicated
loans with five or more bids in secondary trading for the week
ended Jan. 8, 2010.
As reported by the Troubled Company Reporter on Nov. 20, 2009,
Moody's affirmed Hawker Beechcraft Acquisition Company LLC's Caa2
Corporate Family and Probability of Default ratings but lowered
the rating on the company's senior secured bank obligations to
Caa1 from B3 following announcement of plans to expand the size of
its secured term loan. At the same time, ratings on Hawker
Beechcraft's senior unsecured cash-pay and PIK election notes
(Caa3) and subordinated notes (Ca) were affirmed. The company's
Speculative Grade Liquidity rating was changed to SGL-4,
designating weak liquidity, but is expected to improve once final
amounts sourced from an incremental term loan are known. The
outlook was revised to negative.
The actions follow several developments: an amendment to the
company's revolving credit facility reducing the size of the
commitment and revising financial covenants, a proposed increase
of $200 million to an existing $1,271 million term loan,
disclosure of some $0.7 billion of non-cash impairment and other
charges during the company's third quarter.
On Nov. 19, 2009, the TCR stated that Standard & Poor's assigned
its 'CCC+' issue-level rating to Hawker Beechcraft Acquisition Co.
LLC's proposed $200 million incremental term loan, the same as the
corporate credit rating on parent Hawker Beechcraft Inc., and a
'4' recovery rating, which indicates S&P's expectation of average
(30%-50%) recovery in a payment default scenario. In addition,
S&P affirmed its 'CCC+' corporate credit rating on Wichita,
Kansas-based Hawker Beechcraft. The company has about $2.15
billion of debt.
S&P also lowered its issue-level rating on HBAC's existing senior
secured credit facilities to 'CCC+' from 'B-', the same as the
corporate credit rating on Hawker Beechcraft. S&P lowered the
recovery rating on this debt to '4' from '2', indicating its
expectation of average (30%-50%) recovery in a payment default
scenario. At the same time, S&P affirmed its 'CCC-' issue-level
rating on HBAC's senior unsecured and subordinated notes, two
notches below the corporate credit rating on Hawker Beechcraft.
The recovery rating on the senior unsecured and subordinated debt
remains at '6', indicating S&P's expectation of negligible (0%-
10%) recovery in a payment default scenario.
The outlook is negative. S&P could lower the ratings if the
market for business jets deteriorates further, leading to reduced
earnings, cash generation, and liquidity, resulting in cash on
hand and revolver availability falling below $200 million.
Hawker Beechcraft Acquisition Company, LLC, headquartered in
Wichita, Kansas, is a leading manufacturer of business jets,
turboprops and piston aircraft for corporations, governments and
individuals worldwide.
HC INNOVATIONS: Acquires HM Strategies in Merger Deal
-----------------------------------------------------
HC Innovations, Inc., reports that on December 14, 2009, the
Company completed an Agreement and Plan of Merger with HCI Merger
Sub, Inc., a wholly owned subsidiary of the Company, HM
Strategies, Inc., and all of the individual shareholders of HMS.
The Merger was approved by the board of directors of the Company,
Transitory Subsidiary and HMS. Under the Merger, the Transitory
Subsidiary was merged with and into HMS, with HMS continuing after
the Merger as the surviving corporation and a wholly owned
subsidiary of the Company.
Under the terms of the Merger, HMS's former shareholders received
rights to future payments which will be determined over a three
year period based on the profitability of certain customer
contracts. HMS and its shareholders made customary
representations and warranties and covenants in the Merger
Agreement including agreements not to compete with the Company.
The Company has reported a net loss for the nine-month period
ended September 30, 2009, of $464,252. At September 30, 2009, the
Company posted a working capital deficit of $11.4 million,
accumulated deficit of $30.9 million and stockholders' deficit of
$10.6 million. At September 30, 2009, the Company had
$4.79 million in total assets against $15.3 million in total
liabilities.
The report of the Company's independent registered public
accounting firm as of and for the year ended December 31, 2008,
contains an explanatory paragraph raising substantial doubt about
the Company's ability to continue as a going concern.
In its quarterly report on Form 10-Q for the September 30, 2009,
period, management believes that the Company will be successful in
its efforts to adequately meet its capital needs and continue to
grow its businesses. The Company said cumulative losses to date
are largely a result of business development and start up costs
associated with expanding the Company's operations, largely driven
by new contracts as well as significant investment in building the
Company's corporate infrastructure to support the Company's
expansion.
About HC Innovations
HC Innovations, Inc., is a specialty care management company
comprised of separate divisions each with a specific focus and
intervention. The Company identifies subgroups of people with
high costs and disability, and create and implement programs and
interventions that improve their health, intended to result in
dramatic reductions in the cost of their care. The Company also
develops and implements medical management systems for the long
term care industry.
Enhanced Care Initiatives, Inc., a wholly owned subsidiary of HCI
was founded in 2002 and is the management company for all HCI
entities. ECI has five wholly owned subsidiaries operating in
Tennessee, Texas, Massachusetts, Alabama, and New York. ECI
markets its proprietary specialty care management programs for the
medically frail and other costly sub-populations to Health
Maintenance Organizations and other managed care organizations as
well as state Medicaid departments.
NP Care, LLCs, operates nursing home medical management systems.
The LLCs care program provides onsite medical care by Physicians
and Advanced Practice Registered Nurse under the oversight of the
patients' individual physician to residents in nursing homes and
assisted living facilities. The LLCs operate in the states of
Illinois and Tennessee and are managed exclusively by ECI.
HEALTH MANAGEMENT: Bank Debt Trades at 5% Off in Secondary Market
-----------------------------------------------------------------
Participations in a syndicated loan under which Health Management
Associates, Inc., is a borrower traded in the secondary market at
95.20 cents-on-the-dollar during the week ended Friday, Jan. 8,
2010, according to data compiled by Loan Pricing Corp. and
reported in The Wall Street Journal. This represents increase of
2.26 percentage points from the previous week, The Journal
reports. The loan matures on Feb. 28, 2014. The Company pays 175
basis points above LIBOR to borrow under the facility. The bank
debt carries Moody's B1 rating and Standard & Poor's BB- rating.
The debt is one of the biggest gainers and losers among 160 widely
quoted syndicated loans with five or more bids in secondary
trading for the week ended Jan. 8, 2010.
Headquartered in Naples, Florida, Health Management Associates,
Inc., owns and operates acute-care hospitals in non-urban
settings. The company provides inpatient services such as general
surgery, and oncology as well as outpatient services such as
laboratory, x-ray and physical therapy services. In addition,
some facilities also offer specialty services such as cardiology,
radiation therapy and MRI scanning.
Health Management carries a 'B1' long term corporate and
probability of default ratings, with stable outlook, from Moody's,
a 'B+' issuer credit ratings, with negative outlook, from Standard
& Poor's, and a 'B+' long term issuer default rating, with stable
outlook, from Fitch.
HERTZ CORP: Bank Debt Trades at 4% Off in Secondary Market
----------------------------------------------------------
Participations in a syndicated loan under which Hertz Corporation
is a borrower traded in the secondary market at 96.41 cents-on-
the-dollar during the week ended Friday, Jan. 8, 2010, according
to data compiled by Loan Pricing Corp. and reported in The Wall
Street Journal. This represents increase of 2.02 percentage
points from the previous week, The Journal reports. The loan
matures on Dec. 21, 2012. The Company pays 175 basis points above
LIBOR to borrow under the facility. The bank debt carries Moody's
Ba1 rating and Standard & Poor's BB- rating. The debt is one of
the biggest gainers and losers among 160 widely quoted syndicated
loans with five or more bids in secondary trading for the week
ended Jan. 8, 2010.
The Hertz Corporation, a subsidiary of Hertz Global Holdings, Inc.
(NYSE: HTZ), based in Park Ridge, New Jersey, is the world's
largest general use car rental brand, operating from approximately
8,000 locations in 147 countries worldwide. Hertz also operates
one of the world's largest equipment rental businesses, Hertz
Equipment Rental Corporation, through more than 375 branches in
the United States, Canada, France, Spain and China.
In July, Fitch Ratings downgraded Hertz Corporation's Issuer
Default Rating to 'BB-' from 'BB', and Moody's lowered Hertz's
Corporate Family Rating and Probability of Default to 'B1' from
'Ba3'.
HLI OPERATING: Moody's Assigns Corporate Family Rating at 'B3'
--------------------------------------------------------------
Moody's Investors Service assigned ratings to reorganized HLI
Operating Company, Inc. -- Corporate Family and Probability of
Default Ratings, B3. HLI Operating Company is the U.S. parent
operating company of Hayes Lemmerz International, Inc. In a
related action Moody's assigned a B2 rating to the senior secured
$80 million term loan to HLI Operating Company, and a B2 rating to
the $120 million term loan to Hayes Lemmerz Finance LLC -
Luxembourg S.C.A. which is guaranteed by Hayes Lemmerz, HLI and
HLI's domestic subsidiaries. The rating outlook is stable.
Hayes Lemmerz emerged from its voluntary Chapter 11 reorganization
on December 21, 2009. Through the reorganization process, the
company reduced its pre-petition debt to about $240 million from
about $720 million. Hayes Lemmerz also announced that it expects
to reduce its legacy retiree medical and pension liabilities in
the U.S. to less than $75 million from about $250 million.
The senior secured $200 million term loan will be used to repay
the company's $100 million roll-over term loan, pay certain
bankruptcy related expenses, and improve the company's cash
position upon emergence. The ratings assume cash balances upon
emergence of approximately $205 million, but recognize that Hayes
Lemmerz will not have any committed revolving credit facility.
The B3 Corporate Family Rating reflects the significant debt
reduction at reorganized Hayes Lemmerz following emergence from
Chapter 11. The new debt structure will better position the
company to meet the challenges of an expected uneven regional
recovery in the global automotive parts supplier industry.
Moody's expects global light vehicle unit sales to increase 2% in
2010, but the rate of recovery is expected to vary significantly
across regions. Western European automotive retail volumes are
expected to remain weak with a 9% decline in 2010 as government-
sponsored vehicle scrappage programs, which had been stimulating
new vehicle demand, expire. European automotive markets account
for about 40% of Hayes Lemmerz' revenues. Weakness in Europe may
be somewhat offset by an expected improvement in the U.S.
automotive parts industry, about 18% of total revenues. The
company's exposure to South America, and Asia and other countries
should benefit the company's growth prospects. Moody's also
expects global commercial vehicle build rates to remain weak into
2010. Somewhat mitigating the company's risk profile is its
limited exposure to the U.S. operations of the Detriot-3,
estimated at less than 15%. Moody's also estimates that Hayes
Lemmerz has sufficiently maintained its customer relationships
through the reorganization process to continue its major market
share positions.
The stable outlook incorporates Moody's expectation that Hayes
Lemmerz' credit metrics should support the assigned rating over
the intermediate-term as conditions in the global automotive
industry improve. However, the company's credit metrics will
remain weak over the near term with EBITA/interest coverage
(including Moody's standard adjustments) for FYE 1/31/2011
expected to approximate 0.3x, and Debt/EBITDA expected to
approximate 4.6x. The company's adequate liquidity profile should
support an expected cash burn over the intermediate term. The
company will benefit modestly from an expected improvement in
North American automotive industry conditions in 2010. Moody's
expects additional restructuring actions will help mitigate
expected automotive production weakness in Europe. A material
recovery in the company's credit metrics is not expected until
fiscal 2011. As such, any additional negative operating or
industry pressures which reduce cash balances beyond expectations
and inhibit the company's opportunity to find external financing
may adversely impact Moody's view of the company's outlook or
ratings, liquidity profile and operating flexibility.
Hayes Lemmerz' is expected to have adequate liquidity over the
near term supported largely by the expected amount of cash on hand
upon emergence. Estimated available cash balances (excluding
regionally trapped and restricted cash) were approximately
$155 million as of October 31, 2009. While partially mitigating
the lack of a multiyear revolving credit facility upon emergence,
Moody's believes cash balances will be needed to fund an ongoing
operating cash burn over the near-term. Covenant levels are
expected to provide sufficient operating flexibility over the next
twelve months. Alternate liquidity is limited as essentially all
of the company's assets secure the credit facilities.
These ratings were assigned:
HLI Operating Company, Inc. (Reorganized)
* Corporate Family Rating, B3;
* Probability of Default, B3;
* B2 (LGD3, 35%), for the $80 million senior secured new money
term loan facility;
Hayes Lemmerz Finance LLC - Luxembourg S.C.A.
* B2 (LGD3, 35%), for the $120 million senior secured new money
term loan exit facility;
Hayes Lemmerz International, Inc., is a leading worldwide producer
of aluminum and steel wheels for passenger cars and light trucks
and of steel wheels for commercial trucks and trailers. The
Company has global operations with 23 facilities located in 12
countries around the world and sells products to every major North
American, Asian and European manufacturer of passenger cars and
light trucks and to commercial highway vehicle customers
throughout the world. Net sales in fiscal 2008 approximated
$1.9 billion.
HOLDINGS GAMING: Moody's Downgrades Corp. Family Rating to 'Caa2'
-----------------------------------------------------------------
Moody's Investors Service downgraded Holdings Gaming Borrower's
Corporate Family Rating and Probability of Default Rating to Caa2
from Caa1. Moody's also lowered the company's senior secured
revolver and the first lien first out term loan to B3 from B2, and
its first lien first loss term loan to Caa3 from Caa2. All
ratings remain on review for further possible downgrade.
The downgrade reflects Gaming Borrower's heightened near term
default probability as the company approaches a potential covenant
violation, and its sole gaming asset, Rivers casino in downtown
Pittsburgh, continues to perform significantly below initial
expectations since it opened in August 2009. "Although Moody's
believes that Gaming Borrower currently has enough cash to service
its near-term debt obligations, continued weak performance would
make it difficult for the company to generate sufficient cash flow
to support its fixed charges in the next 12-18 months," commented
Moody's analyst John Zhao.
The review for possible downgrade reflects the uncertainty
associated with Gaming Borrower's ability to obtain covenant
relief. The review also considers Moody's opinion that a
substantial improvement in operating performance is unlikely in
2010, and as a result the company's capital structure may become
unsustainable absent a significant equity contribution.
Moody's review will focus on company's ability to obtain long-term
covenant relief, improve its liquidity and near-term operating
performance, and address what Moody's believe may be an
unsustainable capital structure.
Ratings lowered and placed on review for possible downgrade:
-- Corporate Family Rating to Caa2 from Caa1
-- Probability of Default Rating to Caa2 from Caa1
-- $305 million First Lien First-Out Term Loan due 2013 to B3
from B2
-- $10 million First Lien Revolver due 2013 to B3 from B2
-- $100 million First Lien First-Loss Term loan due 2013 to Caa3
from Caa2
The last rating action was on October 5, 2009, when Moody's
lowered Gaming Borrower's Corporate Family and Probability of
Default ratings to Caa1 from B3.
Through a subsidiary, Holdings Gaming Borrower, LP, operates the
Rivers Casino which opened on August 9, 2009, in Pittsburgh, PA.
HORIZON BANK: Closed by Regulators; FDIC Named Receiver
-------------------------------------------------------
Horizon Financial Corp.'s unit, Horizon Bank, was closed by the
State of Washington, Department of Financial Institutions,
Division of Banks. The Federal Deposit Insurance Corporation was
appointed as receiver of the Bank. Customers who have questions
about the foregoing matters, or who would like more information
can visit the FDIC's website located at http://www.fdic.govor
call the FDIC toll-free at 1-888-206-4662.
The Company also disclosed that immediately following the closure
of the Bank, all of the directors of Horizon Bank resigned from
its board. In addition, Richard P. Jacobson resigned as President
and Chief Executive Officer and from the Board of Directors of
Horizon Financial Corp. V. Lawrence Evans, the Chairman of the
Board of Directors of Horizon Financial Corp., has agreed to serve
as President and Chief Executive Officer of the Company.
The Company's shares of Horizon Bank were its principal asset, and
as a result of the Bank's closure, the Company will either be
dissolved and liquidated by its board of directors or file a
Chapter 7 bankruptcy proceeding for liquidation.
Horizon Financial Corp. is a $1.30 billion, bank holding company
headquartered in Bellingham, Washington. Its primary subsidiary,
Horizon Bank, maintains a regional banking presence that has been
serving customers for 87 years, and operates 18 full-service
offices, four commercial loan centers and four real estate loan
centers throughout Whatcom, Skagit, Snohomish and Pierce counties
in Washington.
IMAX CORPORATION: Moody's Withdraws 'Caa1' Default Rating
---------------------------------------------------------
Moody's Investors Service has withdrawn all ratings for IMAX
Corporation following the repayment in full of the 9.625% senior
notes due December 2010.
These ratings were impacted by the action:
IMAX Corporation
-- Probability of Default Rating, Withdrawn, previously rated
Caa1
-- Speculative Grade Liquidity Rating, Withdrawn, previously
rated SGL-3
-- Corporate Family Rating, Withdrawn, previously rated Caa1
-- Senior Unsecured Regular Bond/Debenture, Withdrawn,
previously rated Caa2, LGD4, 62%
-- Outlook, Changed To Rating Withdrawn From Positive
The last rating action for IMAX Corporation occured on June 12,
2009, when Moody's affirmed the Caa1 corporate family rating and
positive rating outlook.
IMAX Corporation's ratings were assigned by evaluating factors
Moody's believe are relevant to the credit profile of the issuer,
such as i) the business risk and competitive position of the
company versus others within its industry, ii) the capital
structure and financial risk of the company, iii) the projected
performance of the company over the near to intermediate term, and
iv) management's track record and tolerance for risk. These
attributes were compared against other issuers both within and
outside of IMAX's core industry and IMAX's ratings are believed to
be comparable to those of other issuers of similar credit risk.
IMAX Corporation specializes in digital, large-screen and three-
dimensional film presentation; the company typically leases or
sells its projection and sound systems, and licenses the use of
its trademarks. With annual revenue of approximately
$115 million, IMAX maintains headquarters in Mississauga, Ontario,
Canada.
INFINITO GOLD: Receives Default Waivers Until February 17
---------------------------------------------------------
Infinito Gold Ltd. has received waivers of events of default under
the outstanding $50,500,000 Secured Convertible Notes of the
Company held by Exploram Enterprises Ltd. and Auro Investments
Ltd.
As disclosed in news releases dated September 30, 2009 and
October 30, 2009, the Notes originally provided that it would be
an Event of Default if the SALA IV proceedings had not been
resolved favorably by June 30, 2009 and if the first drawdown
under a project debt financing facility did not occur by
September 30, 2009 and the first interest payment due under the
Notes was payable on September 30, 2009. None of these deadlines
were met and each of these defaults has now been waived until
February 17, 2010. In addition, Infinito's obligation to pay
certain structuring fees has been deferred, and the defaults
associated with such non-payment have been waived, until
February 17, 2010.
These waivers represent the sixth time since June 30, 2009 the
Noteholders have waived events of default relating to the delay in
receipt of a decision by the SALA IV, each previous waiver having
been given for a period of approximately one month.
Exploram is the controlling shareholder of the Company and Auro is
a company associated with a director of the Company.
Infinito Gold Ltd. is a gold exploration & development company
based in Calgary, Canada, in the process of transisting from
junior explorer to gold producer.
INT'L ALUMINUM: Gets First Day Orders; Lenders Warn Wipe Out
------------------------------------------------------------
Mezzanine lenders are claiming that the prepackaged reorganization
plan filed by International Aluminum Corp. is an attempt to "wipe
out" the company's largest unsecured creditors, according to
Law360.
Meanwhile, International Aluminum has received approval of all of
its requested motions at its "first day" hearing on January 6,
2010. The Company announced that it received Court approval to,
among other things, pay pre-petition insurance obligations,
employee wages, salaries, health benefits and other employee
obligations during its restructuring under Chapter 11. The
Company was also provided authority to continue to honor its
current customer programs, including warranties. The Company will
continue to have access to its cash and is authorized to pay
ordinary course post-petition expenses without seeking Court
approval.
As previously announced, the Company reached an accord with more
than 72% of its senior secured lenders on the terms of a pre-
negotiated financial restructuring. On January 4, 2010, the
Company filed its proposed Plan of Reorganization and related
Disclosure Statement. The Court set February 17, 2010 as the date
to consider approval of the Disclosure Statement. The Company
intends to move as swiftly as possible through approval of the
Disclosure Statement and confirmation of the Plan by the Court.
"We are pleased to have received approval of all of these very
important motions and a date to consider approval of the
Disclosure Statement," said International Aluminum Chief Executive
Officer, Dick Almy. "We are now well on our way to emerging a
stronger and more competitive Company poised for growth."
The Company filed voluntary petitions to reorganize under Chapter
11 of the U.S. Bankruptcy Code in the United States Bankruptcy
Court for the District of Delaware on January 4, 2010. The case
number is 10-10003 and is being presided over by the Honorable
Judge Mary F. Walrath. Moelis & Company is serving as financial
advisor, and Weil, Gotshal & Manges LLP is serving as legal
counsel to the Company and its subsidiaries in connection with the
restructuring.
About International Aluminum
International Aluminum is an integrated building products
manufacturer of diversified lines of quality aluminum and vinyl
products. The company was incorporated in California in 1963 as
successor to an aluminum fabricating business begun in 1957.
Residential products are fabricated from aluminum and vinyl into a
broad line of horizontal sliding windows, vertical sliding
windows, casement windows, garden windows, bay and bow windows,
special configuration windows, louvre windows, patio doors, and
related products. Genstar Capital Partners IV, L.P., holds 75.72%
stake in Debtor IAC Holding Co. Meanwhile, IAC Holding is the
100% shareholder of Debtor International Aluminum Corporation.
International Aluminum filed for Chapter 11 on Jan. 5, 2009
(Bankr. D. Del. Case No. 10-10003). The company blamed the filing
on the "severe decline" in commercial and residential
construction.
Weil, Gotshal & Manges LLP and Richards, Layton & Finger, P.A.,
serve as counsel to the Debtors. Moelis & Company serves as
financial advisors. Kurtzman Carson Consultants LLC serves as
claims and noticing agent.
Court papers list assets of $198 million and debt totaling
$217 million on Nov. 30. Revenue for a year ended in November was
$177 million.
IOWA RENEWABLE: McGladrey Pullen Raises Going Concern Doubt
-----------------------------------------------------------
McGladrey & Pullen, LLP, in Davenport, Iowa, expressed substantial
doubt about Iowa Renewable energy, LLC's ability to continue as a
going concern after auditing the Company's financial statements as
of and for the years ended September 30, 2009, and 2008. The
independent public accounting firm reported that the Company has
suffered losses from operations and has experienced significant
increases in the input costs of its products. "This has created
liquidity issues and caused the Company to be in violation of its
bank debt covenants and there is no assurance that such violations
will be waived."
The Company has generated accumulated losses of $10.9 million
since inception and undertaken significant borrowings to finance
the construction of its biodiesel plant. In the event the
Company's lender declares a default under the Loan Agreement and
elects to accelerate the Company's payments under the Loan
Agreement or take possession of its assets securing the Loan
Agreement, the Company may be forced to shutdown the plant and its
members could lose some or all of their investment.
Iowa Renewable Energy, LLC reported a net loss of $3.3 million on
revenues of $29.1 million for the year ended September 30, 2009,
compared with a net loss of $3.8 million on revenues of
$67.1 million for the year ended September 30, 2008.
Revenues in fiscal year 2009 were approximately half the revenues
in fiscal year 2008. The decrease in revenues was due primarily
to decreased production and sales volume of biodiesel, glycerin,
fatty acids and soapstock. The decrease in production volume was
due to lack of demand and contracts for the Company's biodiesel.
From October 1, 2008, through September 30, 2009, the Company
produced approximately 9,507,597 gallons of biodiesel, which is
only approximately 32% of its plant's capacity. The Company
anticipates operating the plant at similar levels during fiscal
year 2010.
Balance Sheet
At September 30, 2009, the Company's balance sheets showed
$43.3 million in total assets, $31.0 million in total liabilities,
and $12.3 million in members' equity.
The Company's balance sheets at September 30, 2009, also showed
strained liquidity with $5.7 million in total current assets
available to pay $31.0 million in total current liabilities.
A full-text copy of the Company's Form 10-K is available at no
charge at http://researcharchives.com/t/s?4d2d
About Iowa Renewable
Washington, Iowa-based Iowa Renewable Energy, LLC --
http://www.iowarenewableenergy.com/-- owns a commercial scale,
state-of-the-art biodiesel production facility in Washington,
Iowa. The multiple feedstock production facility can utilize
soybean oil, other vegetable oils and animal fats to manufacture
approximately 30 million gallons of high quality biodiesel each
year.
Iowa Renewable Energy, LLC, is owned by more than 500 individual
investors.
JACK RICOTTA: Voluntary Chapter 11 Case Summary
-----------------------------------------------
Debtor: Jack Francis Ricotta
aka Gioacchino Ricotta
34 Rolling Hills Lane
Harrison, NY 10528
Bankruptcy Case No.: 10-22020
Chapter 11 Petition Date: January 7, 2010
Court: United States Bankruptcy Court
Southern District of New York (White Plains)
Judge: Wesley W. Steen
Debtor's Counsel: Jonathan S. Pasternak, Esq.
Rattet, Pasternak & Gordon Oliver, LLP
550 Mamaroneck Avenue, Suite 510
Harrison, NY 10528
Tel: (914) 381-7400
Fax: (914) 381-7406
Email: jsp@rattetlaw.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $100,001 to $500,000
The Debtor did not file a list of its 20 largest unsecured
creditors when it filed its petition.
The petition was signed by Mr. Ricotta.
JAMES MCCLUNG: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------
Joint Debtors: James R. McClung
aka J.R. McClung
aka Jim McClung
Wilma W. McClung
42 Bingham Street
Prestonsburg, KY 41653
Bankruptcy Case No.: 10-00237
Chapter 11 Petition Date: January 7, 2010
Court: United States Bankruptcy Court
Middle District of Florida (Tampa)
Debtors' Counsel: Buddy D. Ford, Esq.
115 N. MacDill Avenue
Tampa, FL 33609-1521
Tel: (813) 877-4669
Fax: (813) 877-5543
Email: Buddy@tampaesq.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
According to the schedules, the Company has assets of $3,090,706,
and total debts of $1,987,837.
A full-text copy of the Debtors' petition, including a list of
their 20 largest unsecured creditors, is available for free at:
http://bankrupt.com/misc/flmb10-00237.pdf
The petition was signed by the Joint Debtors.
JAVED AKHTER: Case Summary & 16 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: Javed Akhter
6319 Drake Elm Dr.
Sugarland, TX 77479
Bankruptcy Case No.: 09-39870
Chapter 11 Petition Date: December 31, 2009
Court: United States Bankruptcy Court
Southern District of Texas (Houston)
Judge: Letitia Z. Paul
Debtor's Counsel: James A. McGuire, Esq.
The Milledge Law Firm PC
10333 NW Fwy, Ste 202
Houston, TX 77092
Tel: (713) 812-1409
Fax: (713) 812-1418
Email: jam1texas@yahoo.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
According to the schedules, the Company has assets of $1,184,215
and total debts of $2,782,075.
A full-text copy of Mr. Akhter's petition, including a list of his
16 largest unsecured creditors, is available for free at:
http://bankrupt.com/misc/txsb09-39870.pdf
The petition was signed by Mr. Akhter.
JAY DAVEY: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------
Debtor: Jay C. Davey
13 Main Street
Plaistow, NH 03865
Bankruptcy Case No.: 10-10020
Chapter 11 Petition Date: January 6, 2010
Court: United States Bankruptcy Court
District of New Hampshire Live Database (Manchester)
Judge: Mark W. Vaughn
Debtor's Counsel: Peter N. Tamposi, Esq.
Donchess, Notinger & Tamposi, PC
547 Amherst Street, Ste. 204
Nashua, NH 03062
Tel: (603) 886-7266
Fax: (603) 886-7922
Email: peter@dntpc.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A full-text copy of Mr. Davey's petition, including a list of his
20 largest unsecured creditors, is available for free at:
http://bankrupt.com/misc/nhb10-10020.pdf
The petition was signed by Mr. Davey.
JO-ANN STORES: S&P Puts 'B+' Rating on CreditWatch Positive
-----------------------------------------------------------
Standard & Poor's Ratings Services placed all ratings on Hudson,
Ohio-based Jo-Ann Stores Inc. on CreditWatch with positive
implications, including the 'B+' corporate credit rating. S&P
took this action after the company announced that it will redeem
the $47.5 million outstanding principal of its 7.5% subordinated
notes due 2012 on March 1, 2010. Operating performance has
improved in each quarter year to date, and S&P expects this to
continue in the fourth quarter. Consequently, S&P expects pro
forma credit metrics at the end of the current fiscal year to have
improved enough to warrant a higher rating.
Jo-Ann, a specialty retailer of sewing, hobby, and craft
merchandise, had positive comparable-store sales and gross margin
expansion in each quarter of this year. In the third quarter,
comparable-stores sales increased 4.3% and 2.5% on a year-to-date
basis, while gross margins expanded 200 basis points in the third
quarter and 190 bps on a year-to-date basis. The company has
better leveraged administrative costs, which declined 190 bps as a
percentage of sales in the third quarter and 110 bps on a year-to-
date basis.
The company has generated meaningful free operating cash flow
($131.7 million on a last-12-month basis), and this allowed it to
redeem its bonds early. S&P expects the company to still have
approximately $100 million in cash after the redemption.
Furthermore, the company will still have access to its asset-based
revolving credit facility to provide liquidity.
The company's improved operating performance has enhanced credit
ratios. Operating lease-adjusted debt to EBITDA improved to 3.5x
at the end of the third quarter (Oct. 31, 2009) from 4.5x at the
end of fiscal year 2009 (Jan. 31, 2009). With the note redemption
and S&P's expectation for improved operating performance, S&P
expects operating lease-adjusted debt to EBITDA to be
approximately 3x, which is generally commensurate for ratings in
the low or mid-'BB' rating category.
Before resolving the CreditWatch positive placements, S&P will
review management's future financial policies. In particular, S&P
will look at how future uses of debt, if any, or returns to
shareholders will affect the company's financial risk.
JOHN RIDGWAY: Case Summary & 14 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: John Ridgway
29652 Cuthbert Rd.
Malibu, CA 90265
Bankruptcy Case No.: 10-10138
Chapter 11 Petition Date: January 6, 2010
Court: United States Bankruptcy Court
Central District of California (San Fernando Valley)
Judge: Maureen Tighe
Debtor's Counsel: Johnathan B. Hewko, Esq.
Mesa Law Group Corp
3151 Airway Ave
Costa Mesa, CA 92626
Tel: (714) 617-7592
Fax: (714) 557-2996
Email: jhewko@mesalawgroup.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A full-text copy of Mr. Ridgway's petition, including a list of
his 14 largest unsecured creditors, is available for free at:
http://bankrupt.com/misc/cacb10-10138.pdf
The petition was signed by Mr. Ridgway.
KAR AUCTION: S&P Raises Corporate Credit Rating to 'B'
------------------------------------------------------
Standard & Poor's Ratings Services said it has raised its
corporate credit rating and related issue ratings on Carmel,
Indiana-based KAR Auction Services Inc. The corporate credit
rating was raised to 'B' from 'B-'. At the same time, S&P removed
the ratings from CreditWatch with positive implications, where
they had been placed on Dec. 1, 2009. The outlook is stable.
The rating action reflects S&P's view that KAR's credit profile
has improved following the company's various financial
transactions that raised new capital and permanently reduced debt.
The company reduced debt by about $476 million using $300 million
raised through a primary sale of common stock, along with cash on
hand. S&P estimates that the company's pro forma lease-adjusted
debt to EBITDA leverage declines to about 5.6x from 6.8x at
Sept. 30, 2009. S&P expects adjusted leverage to fall below 5.5x
for 2009 because of improved fourth-quarter EBITDA, year over
year. For the rating, S&P expects the company to generate
positive cash flow after capital expenditures and lease-adjusted
leverage to reach 4.5x by year-end 2010.
The rating action also reflects S&P's assumptions that the
company's financial policies will remain largely unchanged as a
result of the IPO, including its expectation that KAR will use its
free cash flow primarily to further reduce debt permanently. S&P
also expects no meaningful changes in the company's strategic
business plans, or any change in the current senior management
team, which has successfully improved operating efficiencies and
reduced working capital requirements in recent years.
The ratings on KAR reflect the still-heavy debt from its leveraged
buyout in 2007, despite the recent debt reductions and prospects
of moderate but positive discretionary cash flow generation,
which, in aggregate, offset a fair business position. Pro forma
total balance sheet debt as of Sept. 30, 2009, was $2.0 billion.
KAR has a secure No. 2 position in the fragmented U.S. wholesale
vehicle auction market and a strong position in the more
concentrated salvage auction market (35% market share). S&P
believes KAR's liquidity is adequate. S&P expects the company to
generate free cash flow in the year ahead, debt maturities and
working capital requirements are minimal, and the company has
access to its $250 million senior secured revolving credit
facility, expiring 2013.
The stable outlook indicates that S&P believes KAR's relatively
steady businesses, tight financial controls, and cost-side
initiatives should enable the company to generate adequate
earnings and free cash flow for the rating during the year ahead,
despite difficult market conditions. For the rating, S&P looks
for lease-adjusted debt to EBITDA to decline to about 4.5x by
year-end 2010. For this to occur, S&P estimate the company would
need to generate reported EBITDA of about $450 million in 2010.
S&P could lower the ratings if KAR's free cash flow turns
meaningfully negative or if a shortfall in EBITDA this year
prevents expected deleveraging, leading to 6x lease-adjusted total
debt to EBITDA. S&P could also lower the ratings if aggressive
acquisition activity reduces availability under the revolving
credit facility.
S&P could raise the ratings if KAR's lease-adjusted leverage
declines to 4.0x, although S&P does not assume this will occur in
the year ahead. Achievement of 4x leverage would require further
debt reduction of about $700 million, given recent levels of
adjusted EBITDA.
KENDALL BROOK: Case Summary & 6 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: Kendall Brook LLC
9145 East Kenyon Avenue, Suite 200
Denver, CO 80237
Bankruptcy Case No.: 10-10208
Type of Business:
Chapter 11 Petition Date: January 7, 2010
Court: United States Bankruptcy Court
District of Colorado (Denver)
Judge: A. Bruce Campbell
Debtor's Counsel: David Wadsworth, Esq.
1660 Lincoln St., Ste. 2200
Denver, CO 80264
Tel: (303) 296-1999
Fax: (303) 296-7600
Email: dvw@sendwass.com
Estimated Assets: $10,000,001 to $50,000,000
Estimated Debts: $1,000,001 to $10,000,000
According to the schedules, the Company has assets of $10,134,920,
and total debts of $4,300,837
The petition was signed by Brett Bennett, the company's managing
member.
Debtor's List of 6 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Turn Key Properties LLC $25,000
Attn: Julie Bennett
Investments West $15,195
Attn: Brett and Jason
Bennett
Lottner Rubin Fishman Trade debt $6,002
Brown & Saul
All Terrain Erosion Trade debt $2,755
Control
Fuhrman Landscaping, Inc. Trade debt $370
Attn: Mark Fuhrman
Investments West Holdings $37
LLC
Attn: Brett and Jason Bennett
KERN CENTRAL CREDIT: Regulator Shutters Biz on Inadequate Capital
-----------------------------------------------------------------
The California Department of Financial Institutions on Friday
announced that Kern Central Credit Union was closed and ordered to
be liquidated, citing inadequate capital. Kern Central is a
federally insured, state-chartered credit union based in
Bakersfield.
Kern Central's member deposits are safe. Member accounts are
federally insured for up to $250,000 per depositor by the National
Credit Union Share Insurance Fund, administered by the National
Credit Union Administration (NCUA).
The NCUA was appointed the liquidating agent of Kern Central by
the DFI.
NCUA has signed an agreement with Self-Help Federal Credit Union
(Self-Help) of Durham, North Carolina, to assume the assets and
liabilities of Kern Central Credit Union. Kern Central members
will experience no interruption of credit union service.
Self-Help has $75.2 million in assets and serves approximately
15,000 members. It is a full service credit union located in
Durham, North Carolina. Self-Help will continue to operate Kern
Central's 3 branch locations. In addition, the new members will
have access to a broad array of financial services offered across
the United States through Self-Help's six branch offices in
California and a shared branching network with over 5,500 sites
nationwide.
At liquidation, Kern Central had approximately $34.9 million in
assets and served approximately 8,400 members. Kern Central was
established in 1974 to serve employer groups within a 25-mile
radius. The credit union subsequently expanded its field of
membership to serve individuals working and living in Kern County,
California. This is the first federally insured credit union
liquidation in 2010.
The DFI oversees the secure operation of California's state-
chartered financial institutions. DFI ensures public confidence
in financial institutions by protecting the interests of
depositors, borrowers, shareholders and consumers through
enforcement of state laws.
The DFI reports to Dale E. Bonner, Secretary of the Business,
Transportation and Housing Agency and Governor Arnold
Schwarzenegger.
About Kern Central Credit Union
In over 35 years of operations, Kern Central Credit Union has
become an important institution for Kern County, providing
financial services for working families and those traditionally
underserved by financial institutions. At its peak, the credit
union had over $42 million in assets, and 9,000 members and has
served thousands of Central Valley residents. In 1995, Kern
Central Credit Union merged with the United Farm Workers Credit
Union.
KIRBY AVENUE: Case Summary & 19 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: Kirby Avenue Realty Holdings, L.L.C.
237 South Street
Morristown, NJ 07962
Bankruptcy Case No.: 10-10284
Chapter 11 Petition Date: January 6, 2010
Court: United States Bankruptcy Court
District of New Jersey (Trenton)
Judge: Michael B. Kaplan
Debtor's Counsel: Morris S. Bauer, Esq.
Norris McLaughlin & Marcus, PA
PO Box 5933
Bridgewater, NJ 08807-5933
Tel: (908) 722-0700
Fax: (908) 722-0755
Email: msbauer@nmmlaw.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A full-text copy of the Debtor's petition, including a list of its
19 largest unsecured creditors, is available for free at:
http://bankrupt.com/misc/njb10-10284.pdf
The petition was signed by Lawrence S. Berger, manager of the
Company.
KIRK PHARMECEUTICALS: Case Summary & 12 Largest Unsec. Creditors
----------------------------------------------------------------
Debtor: Kirk Pharmeceuticals, LLC
fka Kirk Pharmaceuticals, Inc.
5360 NW 35th Avenue
Ft. Lauderdale, FL 33309
Bankruptcy Case No.: 09-39126
Chapter 11 Petition Date: December 31, 2009
Court: United States Bankruptcy Court
Southern District of Florida (Fort Lauderdale)
Judge: John K. Olson
Debtor's Counsel: Phillip M. Hudson III, Esq.
200 S Biscayne Blvd, Suite 3600
Miami, FL 33131
Tel: (305) 374-3330
Fax: (305) 374-4744
Email: pmhudson@arnstein.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A full-text copy of the Debtor's petition, including a list of its
12 largest unsecured creditors, is available for free at:
http://bankrupt.com/misc/flsb09-39126.pdf
The petition was signed by Gerald Price, Interim CEO of the
Company.
KRISHNA BHAVNA RK: Voluntary Chapter 11 Case Summary
----------------------------------------------------
Debtor: Krishna Bhavna LLC
2510 Firewheel Parkway
Garland, TX 75040
Bankruptcy Case No.: 10-30232
Chapter 11 Petition Date: January 5, 2010
Court: United States Bankruptcy Court
Northern District of Texas (Dallas)
Judge: Stacey G. Jernigan
Debtor's Counsel: David Samuel Brown, Esq.
David Samuel Brown Law Firm PLLC
6440 N. Central Expressway, Suite 720
Dallas, TX 75206
Tel: (214) 696-3100
Fax (469) 718-7321
Email: dbrown@davidbrownlawoffice.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
According to the schedules, the Company has assets of $3,773,120,
and total debts of $3,900,000.
The Debtor did not file a list of its 20 largest unsecured
creditors when it filed its petition.
LANDING AT REID'S RANCH: Voluntary Chapter 11 Case Summary
----------------------------------------------------------
Debtor: The Landing At Reid's Ranch Development, L.L.C.
The Landing @ Reid's Ranch Development, LLC
Po Box 31090
Mesa, AZ 85275
Bankruptcy Case No.: 09-33903
Chapter 11 Petition Date: December 31, 2009
Court: United States Bankruptcy Court
District of Arizona (Phoenix)
Judge: George B. Nielsen Jr.
Debtor's Counsel: Randy Nussbaum, Esq.
Nussbaum & Gillis, P.C.
14500 N. Northsight Blvd. - #116
Scottsdale, AZ 85260
Tel: (480) 609-0011
Fax: (480) 609-0016
Email: rnussbaum@nussbaumgillis.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Debtor did not file a list of its 20 largest unsecured
creditors when it filed its petition.
The petition was signed by Billy G. Johnson, manager of the
Company.
LAS VEGAS SANDS: Bank Debt Trades at 10% Off in Secondary Market
----------------------------------------------------------------
Participations in a syndicated loan under which Las Vegas Sands
Corp. is a borrower traded in the secondary market at 89.66 cents-
on-the-dollar during the week ended Friday, Jan. 8, 2010,
according to data compiled by Loan Pricing Corp. and reported in
The Wall Street Journal. This represents increase of 2.66
percentage points from the previous week, The Journal reports.
The Company pays 175 basis points above LIBOR to borrow under the
facility. The bank loan matures on May 1, 2014, and carries
Moody's B3 rating and Standard & Poor's B- rating.
Meanwhile, participations in a syndicated loan under which
Venetian Macau US Finance Co., LLC, is a borrower traded in the
secondary market at 96.43 cents-on-the-dollar during the week
ended Friday, Jan. 8, 2010, according to data compiled by Loan
Pricing Corp. and reported in The Wall Street Journal. This
represents increase of 2.13 percentage points from the previous
week, The Journal reports. The Company pays 550 basis points
above LIBOR to borrow under the facility. The bank loan matures
on May 25, 2011, and carries Moody's B3 rating and Standard &
Poor's B- rating.
The loans are two of the biggest gainers and losers among the 160
widely quoted syndicated loans with five or more bids in secondary
trading for the week ended Jan. 8, 2010.
Venetian Macau US Finance Co., LLC (also known as VML US Finance
LLC), and Venetian Macau Limited are wholly owned subsidiaries of
Las Vegas Sands. VML owns the Sands Macau in the People's
Republic of China Special Administrative Region of Macau and is
also developing additional casino hotel resort properties in
Macau.
Based in Las Vegas, Nevada, Las Vegas Sands Corp. (NYSE: LVS) --
http://www.lasvegassands.com/-- owns and operates The Venetian
Resort Hotel Casino, The Palazzo Resort Hotel Casino, and an expo
and convention center. The company also owns and operates the
Sands Macao, the first Las Vegas-style casino in Macao, China.
As reported by the TCR on Aug. 4, 2009, Moody's placed Las Vegas
Sands Corp.'s ratings, including its 'B3' Corporate Family Rating,
on review for possible downgrade. Moody's cited weak operating
results and heightened concern regarding the Company's ability to
maintain compliance with financial covenants, among other things.
The Company also carries 'B-' issuer credit ratings from Standard
& Poor's.
LAUREATE EDUCATION: Bank Debt Trades at 9% Off in Secondary Market
------------------------------------------------------------------
Participations in a syndicated loan under which Laureate
Education, Inc., is a borrower traded in the secondary market at
90.88 cents-on-the-dollar during the week ended Friday, Jan. 8,
2010, according to data compiled by Loan Pricing Corp. and
reported in The Wall Street Journal. This represents increase of
2.10 percentage points from the previous week, The Journal
reports. The loan matures on Aug. 17, 2014. The Company pays 325
basis points above LIBOR to borrow under the facility. The bank
debt carries Moody's B1 rating and Standard & Poor's B rating.
The debt is one of the biggest gainers and losers among 160 widely
quoted syndicated loans with five or more bids in secondary
trading for the week ended Jan. 8, 2010.
Laureate Education, Inc., is based in Baltimore, Maryland, and
operates a leading international network of accredited campus-
based and online universities with 26 institutions in 15
countries, offering academic programs to about 311,000 students
through 74 campuses and online delivery. Laureate offers a broad
range of career-oriented undergraduate and graduate programs
through campus-based universities located in Latin America,
Europe, and Asia. Through online universities, Laureate offers
the growing population of non-traditional, working-adult students
the convenience and flexibility of distance learning to pursue
undergraduate, master's and doctorate degree programs in major
career fields including engineering, education, business, and
healthcare. Laureate had revenues of approximately $1.4 billion
in fiscal 2007.
LEHMAN BROTHERS: Creditors Balk at Lehman's Proposed Guidelines
---------------------------------------------------------------
U.S. Bank NA and Societe Generale are among at least a dozen
creditors objecting to Lehman Brothers Holdings Inc.'s proposal to
streamline the roughly 65,000 claims against the bankrupt
financial giant by expanding omnibus objection rules and forgoing
court approval on certain settlements, according to Law360.
Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the
fourth largest investment bank in the United States. For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.
Lehman Brothers filed for Chapter 11 bankruptcy September 15, 2008
(Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition
listed US$639 billion in assets and US$613 billion in debts,
effectively making the firm's bankruptcy filing the largest in
U.S. history. Several other affiliates followed thereafter.
The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil,
Gotshal & Manges, LLP, in New York, represent Lehman. Epiq
Bankruptcy Solutions serves as claims and noticing agent.
On September 19, 2008, the Honorable Gerard E. Lynch, Judge of the
U.S. District Court for the Southern District of New York, entered
an order commencing liquidation of Lehman Brothers, Inc., pursuant
to the provisions of the Securities Investor Protection Act (Case
No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as
trustee for the SIPA liquidation of the business of LBI
The Bankruptcy Court has approved Barclays Bank Plc's purchase of
Lehman Brothers' North American investment banking and capital
markets operations and supporting infrastructure for
US$1.75 billion. Nomura Holdings Inc., the largest brokerage
house in Japan, purchased LBHI's operations in Europe for US$2
plus the retention of most of employees. Nomura also
bought Lehman's operations in the Asia Pacific for US$225 million.
International Operations Collapse
Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and
Mike Jervis, partners at PricewaterhouseCoopers LLP, have been
appointed as joint administrators to Lehman Brothers International
(Europe) on September 15, 2008. The joint administrators have
been appointed to wind down the business.
Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on September 16.
Lehman Brothers Japan Inc. reported about JPY3.4 trillion
(US$33 billion) in liabilities in its petition.
Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by Lehman Brothers Holdings, Inc., and other insolvency
and bankruptcy proceedings undertaken by its affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
LINKSIDE PARK: Voluntary Chapter 11 Case Summary
------------------------------------------------
Debtor: Linkside Park, Ltd.
4965 Preston Park Blvd., Suite 100
Plano, TX 75093
Bankruptcy Case No.: 10-40070
Chapter 11 Petition Date: January 5, 2010
Court: United States Bankruptcy Court
Eastern District of Texas (Sherman)
Judge: Brenda T. Rhoades
Debtor's Counsel: Michael H. Myers, Esq.
Myers Wilson P.C.
16610 Dallas Parkway, Suite 2000
Dallas, TX 75248
Tel: (972) 248-8080
Fax: (972) 248-8088
Email: michael@myerswilson.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Debtor did not file a list of its 20 largest unsecured
creditors when it filed its petition.
The petition was signed by James Chen.
LUNA INNOVATIONS: Extends Dev't Deal With Intuitive Surgical
------------------------------------------------------------
Luna Innovations Incorporated will be extending its development
and supply agreement with Intuitive Surgical, Inc. to continue
integrating Luna's shape sensing technology into Intuitive's
products.
In June 2007, Luna and Intuitive entered into a multi-year
development and supply agreement in which Luna would supply its
fiber optic based shape sensing system for integration into
Intuitive's medical robotics products and license its shape
sensing technology to Intuitive for this purpose. Intuitive
Surgical is the global technology leader in robotic-assisted
minimally invasive surgery and its products include the da
Vinci(R) Surgical System. Luna has successfully achieved the
expectations of the development work in the original agreement,
which concluded in December of 2009.
Luna and Intuitive will be extending their development and supply
agreement to further develop Luna's technology for its products.
"This new agreement with Intuitive Surgical will continue Luna's
relationship with the leader in the medical robotics market and
further demonstrates the potential of our technology and
intellectual property," stated Kent Murphy, Luna's Chairman and
Chief Executive Officer. "It has been a great relationship over
the past thirty months, and it is extremely rewarding to know that
Luna's technology will be assisting in complex minimally invasive
surgery in the pursuit of delivering the best outcome for
patients."
"We continue to view Luna as a strong technology partner in the
area of advanced shape sensing and position tracking systems,"
said Dave Rosa, Intuitive's Vice President of New Product
Development. "Our development with Luna is progressing well and
Intuitive remains committed to our joint project."
Luna's exclusive shape sensing system tracks the position of an
optical fiber along its entire length, providing real-time
measurements that can assist surgeons in navigating through the
body. This technology could be particularly helpful in certain
minimally invasive surgical techniques because of the need to
track the position of medical instruments in the patient, using
optical fibers as thin as a human hair to provide sensing and
feedback as the nervous system does for the human body.
Luna will host a conference call with investors on Jan. 11, 2010,
at 1:30 p.m. to discuss this and other announcements upon the
company's emergence from bankruptcy. The investor conference call
will be available via live webcast on the Luna Innovations'
website at http://www.lunainnovations.com/under the tab "Investor
Relations." To participate by telephone, the domestic dial-in
number is 1.800.299.7928 and the international dial-in number is
1.617.614.3926. The participant access code is 97312544.
Investors are advised to dial in at least five minutes prior to
the call to register. The webcast will be archived on the
company's website under "Webcasts and Presentations" for 30 days
following the conference call.
About Luna Innovations
Headquartered in Roanoke, Virginia, Luna Innovations Inc.
(NASDAQ:LUNA) -- http://www.lunainnovations.com/-- is focused on
sensing and instrumentation, and pharmaceutical nanomedicines.
Luna develops and manufactures new-generation products for the
healthcare, telecommunications, energy and defense markets.
Luna's products are used to measure, monitor, protect and improve
critical processes in the markets it serves.
Luna Innovations in July 2009 filed for reorganization under
Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy
Court for the Western District of Virginia.
LYONDELL CHEMICAL: Gets Nod for Five Consensual Pacts
-----------------------------------------------------
Lyondell Chemical Co. and its units sought and obtained a Court
order approving five agreements, each of which effects a
disposition and settlement of an executory contract and settlement
of related claims with the named counterparty:
a. Agreement dated as of July 27, 2009, by and among Lyondell,
Equistar Chemicals, LP and Porocel Corporation;
b. Agreement dated as of July 29, 2009, by and among Lyondell,
Equistar, Millennium Petrochemicals, Inc., Houston
Refining, LP and Maxim Crane Works, L.P.;
c. Agreement dated as of August 1, 2009, by and between
Equistar and South Hampton Resources, Inc.;
d. Agreement dated as of August 11, 2009, by and between
Houston Refining and Basic Chemical Solutions, L.L.C.; and
e. Stipulation and agreed order dated as of July 28, 2009, by
and among HoustonRefining, MPI, Equistar, Lyondell and
Kirby Inland Marine, LP.
The Court authorized the Debtors to reject the Prepetition Maxim
Contract pursuant to Section 365(a) of the Bankruptcy Code,
effective as of September 8, 2009.
The Debtors are also authorized to assume each of the Assumed
Contracts pursuant to Section 365(a) of the Bankruptcy Code,
effective as of Sept. 8, 2009.
The compromise and treatment of the Compromised Claims
is hereby approved.
Porocel Agreement
Pursuant to a prepetition executory contract, between and among
certain of the Debtors and Porocel, Porocel provided, among other
things, certain activated alumina and catalyst support material to
Lyondell and Equistar. Pursuant to the Porocel Agreement, each of
Lyondell and Equistar, with the consent of Porocel, will assume
the Prepetition Porocel Contract, with certain modifications that
are on similar or better commercial terms than the Prepetition
Porocel Contract, effective as of the date of entry of an order by
the Court approving the Porocel Agreement.
The Porocel Agreement also resolves certain claims between the
Debtors and Porocel pursuant as a result of the assumption of the
Amended Porocel Contract or otherwise. Specifically, Porocel has
agreed to waive approximately $76,160 of prepetition claims
against the Debtors, and Porocel will release any other claims in
respect of the Prepetition Porocel Contract, including any
obligation of the Debtors to "cure" defaults under Section 365(b)
of the Bankruptcy Code.
Maxim Agreement
Pursuant to a prepetition executory contract dated as of July 31,
2007, between and among certain of the Debtors and Maxim, Maxim
provided, among other things, certain crane rental, operations and
maintenance services to Lyondell, Equistar, MPI and Houston
Refining. Each of Lyondell, Equistar, MPI and Houston Refining,
with the consent of Maxim, will reject the Prepetition Maxim
Contract under Section 365 of the Bankruptcy Code effective as of
the date of entry of an order by the Court approving the Maxim
Agreement. The Debtors and Maxim have agreed to continue their
business relationship pursuant to a new, ordinary course
postpetition agreement, on similar or better commercial terms than
the Prepetition Maxim Contract.
The Maxim Agreement resolves certain claims between the Debtors
and Maxim as a result of the rejection of the Prepetition Maxim
Contract. In consideration of the Debtors' agreement to
continue their relationship with Maxim pursuant to a new
postpetition agreement, Maxim has agreed, among other things, to
waive and release its asserted mechanics' and materialmen's liens
in an aggregate amount of approximately $707,676 and accept
general unsecured claims, in amounts still to be determined,
against the estates of one or more of the Debtors.
South Hampton Agreement
South Hampton supplied certain chemical products to Equistar
pursuant to a certain prepetition contract. Equistar and South
Hampton have terminated the Prepetition South Hampton
Contract by mutual consent. The Debtors and South Hampton have
agreed to continue their business relationship pursuant to a new,
ordinary course postpetition agreement, on similar or better terms
than the Prepetition South Hampton Contract.
The South Hampton Agreement resolves certain claims between South
Hampton and the Debtors in respect of the Prepetition South
Hampton Contract and related obligations. South Hampton asserted
that the Debtors owed South Hampton approximately $480,540 for
goods provided by South Hampton to the Debtors under the
Prepetition South Hampton Contract. In consideration of the
Debtors entry into a new postpetition agreement with South
Hampton, South Hampton has agreed, among other things, to
release any claims related to these unpaid amounts, the
Prepetition South Hampton Contract and related obligations.
Basic Agreement
Pursuant to a prepetition executory contract, between and among
certain of the Debtors and Basic, Basic provided, among other
things, certain chemicals to Houston Refining. Pursuant to the
Basic Agreement, Houston Refining, with the consent of Basic, will
assume the Prepetition Basic Contract, with certain modifications
that are on similar or better commercial terms than the
Prepetition Basic Contract, effective as of the date of entry of
an order by the Court approving the Basic Agreement.
The Basic Agreement resolves certain claims between the Debtors
and Basic pursuant to Bankruptcy Rule 9019 arising as a result of
the assumption of the Amended Basic Contract or otherwise.
Specifically, Basic has agreed to waive a general unsecured
prepetition claim in the total amount of approximately $11,760 in
consideration of the Debtors' assumption of the Amended Basic
Contract. Basic also will release any other claims in respect of
the Prepetition Basic Contract, including any obligation of
the Debtors to "cure" defaults under Section 365(b) of the
Bankruptcy Code.
Kirby Stipulation
Pursuant to prepetition executory contracts between and among
certain Debtors and Kirby, Kirby provided the Debtors with, among
other things, transportation services involving towing vessels and
barges. Pursuant to the Kirby Stipulation, each of Houston
Refining, MPI, Equistar and Lyondell, with the consent of Kirby,
will assume the Prepetition Kirby Contracts, with certain
modifications that are on similar or better commercial terms than
the Prepetition Kirby Contracts, effective as of the date of entry
of an order by the Court approving the Kirby Stipulation.
Kirby asserts that one or more of the Debtors owed Kirby in excess
of $3,000,000 arising from or relating to services performed under
the Prepetition Kirby Contracts. In consideration of the Debtors'
assumption of the Amended Kirby Contracts, Kirby has agreed to
waive this debt as well as any claims arising from or relating to
the Prepetition Kirby Contracts, including any obligation of the
Debtors to "cure" defaults under Section 365(b) of the Bankruptcy
Code.
About Lyondell Chemical
LyondellBasell Industries is one of the world's largest polymers,
petrochemicals and fuels companies. It is the global leader in
polyolefins technology, production and marketing; a pioneer in
propylene oxide and derivatives; and a significant producer of
fuels and refined products, including biofuels. Through research
and development, LyondellBasell develops innovative materials and
technologies that deliver exceptional customer value and products
that improve quality of life for people around the world.
Headquartered in The Netherlands, LyondellBasell --
http://www.lyondellbasell.com/-- is privately owned by Access
Industries.
Basell AF and Lyondell Chemical Company merged operations in 2007
to form LyondellBasell Industries, the world's third largest
independent chemical company. LyondellBasell became saddled with
debt as part of the US$12.7 billion merger. On January 6, 2009,
LyondellBasell Industries' U.S. operations and one of its European
holding companies -- Basell Germany Holdings GmbH -- filed
voluntary petitions to reorganize under Chapter 11 of the U.S.
Bankruptcy Code to facilitate a restructuring of the company's
debts. The case is In re Lyondell Chemical Company, et al.,
Bankr. S.D.N.Y. Lead Case No. 09-10023). Seventy-nine Lyondell
entities, including Equistar Chemicals, LP, Lyondell Chemical
Company, Millennium Chemicals Inc., and Wyatt Industries, Inc.
filed for Chapter 11. In May 2009, one of the cases was dismissed
-- Case No. 09-10068 -- because it is duplicative of Case No. 09-
10040 relating to Debtor Glidden Latin America Holdings.
The Hon. Robert E. Gerber presides over the case. Deryck A.
Palmer, Esq., at Cadwalader, Wickersham & Taft LLP, in New York,
serves as the Debtors' bankruptcy counsel. Evercore Partners
serves as financial advisors, and Alix Partners and its subsidiary
AP Services LLC, serves as restructuring advisors. AlixPartners'
Kevin M. McShea acts as the Debtors' Chief Restructuring Officer.
Clifford Chance LLP serves as restructuring advisors to the
European entities. Lyondell Chemical estimated that consolidated
assets total US$27.12 billion and debts total US$19.34 billion as
of the bankruptcy filing date.
Lyondell has obtained approximately US$8 billion in DIP financing
to fund continuing operations. The DIP financing includes two
credit agreements: a US$6.5 billion term loan, which comprises a
US$3.25 billion in new loans and a US$3.25 billion roll-up of
existing loans; and a US$1.57 billion asset-backed lending
facility.
Luxembourg-based LyondellBasell Industries AF S.C.A. and another
affiliate were voluntarily added to Lyondell Chemical's
reorganization filing under Chapter 11 on April 24, 2009, in order
to seek protection against claims by certain financial and U.S.
trade creditors. On May 8, 2009, LyondellBasell Industries added
13 non-operating entities to Lyondell Chemical Company's
reorganization filing under Chapter 11 of the U.S. Bankruptcy
Code. All of the entities are U.S. companies and were added to
the original Chapter 11 filing for administrative purposes. The
filings will have no impact on current business or operations as
none of the entities manufactures or sells products.
Bankruptcy Creditors' Service, Inc., publishes Lyondell Bankruptcy
News. The newsletter tracks the Chapter 11 proceeding undertaken
by Lyondell Chemical Company and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
LYONDELL CHEMICAL: Has Protocol to Reject Pre-Bankruptcy Deals
--------------------------------------------------------------
Lyondell Chemical Co. and its units are party to thousands of
executory contracts and unexpired leases with various vendors,
suppliers, and customers. The business relationships between the
Debtors and many of their Counterparties are complex, with Debtors
and Counterparties often acting as both suppliers and customers to
each other or their affiliates. Since the Petition Date, the
Debtors have undertaken the review of their Prepetition
Agreements, and the associated relationships with their
Counterparties.
As part of this process, the Debtors have entered or hope to enter
into agreements with numerous Counterparties to make their ongoing
contractual relationships more advantageous for these estates.
The Consensual Agreements provide for either:
(i) the rejection of one or more of the Prepetition
Agreements and the replacement of the Prepetition
Agreements with new postpetition agreements entered into
by the Debtors and their Counterparties in the ordinary
course of business, or
(ii) the assumption of one or more of the Prepetition
Agreements, either with or without modifications or
amendments agreed upon by the parties.
The Consensual Agreements may also provide for the waiver or other
compromise of prepetition debt and other claims between and among
the Debtors and their Counterparties. Through these Consensual
Agreements, the Debtors have been able to achieve significant
reductions in secured and administrative expense claims asserted
by Counterparties against the Debtors and obtain
improved contract terms that will benefit the Debtors through
substantial cost reductions. The Consensual Agreements are, or
will be, subject to Court approval as necessary.
Accordingly, the Debtors sought and obtained the Court's approval
to submit motions, applications or orders for the approval of
Consensual Agreements disposing of Prepetition Agreements and
compromising other claims upon notice of presentment, which will
be presented to the Court on no less than 10 calendar days after
submission.
Objections, if any, to any proposed Consensual Agreement must
be made in writing and filed with the Clerk of the Court and a
courtesy copy must be delivered to the Court's chambers at least
three days before the date of presentment, the ruling held.
About Lyondell Chemical
LyondellBasell Industries is one of the world's largest polymers,
petrochemicals and fuels companies. It is the global leader in
polyolefins technology, production and marketing; a pioneer in
propylene oxide and derivatives; and a significant producer of
fuels and refined products, including biofuels. Through research
and development, LyondellBasell develops innovative materials and
technologies that deliver exceptional customer value and products
that improve quality of life for people around the world.
Headquartered in The Netherlands, LyondellBasell --
http://www.lyondellbasell.com/-- is privately owned by Access
Industries.
Basell AF and Lyondell Chemical Company merged operations in 2007
to form LyondellBasell Industries, the world's third largest
independent chemical company. LyondellBasell became saddled with
debt as part of the US$12.7 billion merger. On January 6, 2009,
LyondellBasell Industries' U.S. operations and one of its European
holding companies -- Basell Germany Holdings GmbH -- filed
voluntary petitions to reorganize under Chapter 11 of the U.S.
Bankruptcy Code to facilitate a restructuring of the company's
debts. The case is In re Lyondell Chemical Company, et al.,
Bankr. S.D.N.Y. Lead Case No. 09-10023). Seventy-nine Lyondell
entities, including Equistar Chemicals, LP, Lyondell Chemical
Company, Millennium Chemicals Inc., and Wyatt Industries, Inc.
filed for Chapter 11. In May 2009, one of the cases was dismissed
-- Case No. 09-10068 -- because it is duplicative of Case No. 09-
10040 relating to Debtor Glidden Latin America Holdings.
The Hon. Robert E. Gerber presides over the case. Deryck A.
Palmer, Esq., at Cadwalader, Wickersham & Taft LLP, in New York,
serves as the Debtors' bankruptcy counsel. Evercore Partners
serves as financial advisors, and Alix Partners and its subsidiary
AP Services LLC, serves as restructuring advisors. AlixPartners'
Kevin M. McShea acts as the Debtors' Chief Restructuring Officer.
Clifford Chance LLP serves as restructuring advisors to the
European entities. Lyondell Chemical estimated that consolidated
assets total US$27.12 billion and debts total US$19.34 billion as
of the bankruptcy filing date.
Lyondell has obtained approximately US$8 billion in DIP financing
to fund continuing operations. The DIP financing includes two
credit agreements: a US$6.5 billion term loan, which comprises a
US$3.25 billion in new loans and a US$3.25 billion roll-up of
existing loans; and a US$1.57 billion asset-backed lending
facility.
Luxembourg-based LyondellBasell Industries AF S.C.A. and another
affiliate were voluntarily added to Lyondell Chemical's
reorganization filing under Chapter 11 on April 24, 2009, in order
to seek protection against claims by certain financial and U.S.
trade creditors. On May 8, 2009, LyondellBasell Industries added
13 non-operating entities to Lyondell Chemical Company's
reorganization filing under Chapter 11 of the U.S. Bankruptcy
Code. All of the entities are U.S. companies and were added to
the original Chapter 11 filing for administrative purposes. The
filings will have no impact on current business or operations as
none of the entities manufactures or sells products.
Bankruptcy Creditors' Service, Inc., publishes Lyondell Bankruptcy
News. The newsletter tracks the Chapter 11 proceeding undertaken
by Lyondell Chemical Company and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
LYONDELL CHEMICAL: Plan Exclusivity Extended to Jan. 19
-------------------------------------------------------
Judge Robert Gerber of the United States Bankruptcy Court for the
Southern District of New York adjourns the hearing with respect
Lyondell Chemical Company and its debtor affiliates' motion to
extend their exclusive periods under Section 1121(d) of the
Bankruptcy Code from January 12, 2010, to January 19, 2010.
While Lyondell has filed a Chapter 11 plan, it notes that the
unresolved litigation brought by the Official Committee of
Unsecured Creditors against the Debtors' prepetition lenders and
directors stands in the way of concluding the necessary
prerequisites to the Debtors' successful exit from Chapter 11
About Lyondell Chemical
LyondellBasell Industries is one of the world's largest polymers,
petrochemicals and fuels companies. It is the global leader in
polyolefins technology, production and marketing; a pioneer in
propylene oxide and derivatives; and a significant producer of
fuels and refined products, including biofuels. Through research
and development, LyondellBasell develops innovative materials and
technologies that deliver exceptional customer value and products
that improve quality of life for people around the world.
Headquartered in The Netherlands, LyondellBasell --
http://www.lyondellbasell.com/-- is privately owned by Access
Industries.
Basell AF and Lyondell Chemical Company merged operations in 2007
to form LyondellBasell Industries, the world's third largest
independent chemical company. LyondellBasell became saddled with
debt as part of the US$12.7 billion merger. On January 6, 2009,
LyondellBasell Industries' U.S. operations and one of its European
holding companies -- Basell Germany Holdings GmbH -- filed
voluntary petitions to reorganize under Chapter 11 of the U.S.
Bankruptcy Code to facilitate a restructuring of the company's
debts. The case is In re Lyondell Chemical Company, et al.,
Bankr. S.D.N.Y. Lead Case No. 09-10023). Seventy-nine Lyondell
entities, including Equistar Chemicals, LP, Lyondell Chemical
Company, Millennium Chemicals Inc., and Wyatt Industries, Inc.
filed for Chapter 11. In May 2009, one of the cases was dismissed
-- Case No. 09-10068 -- because it is duplicative of Case No. 09-
10040 relating to Debtor Glidden Latin America Holdings.
The Hon. Robert E. Gerber presides over the case. Deryck A.
Palmer, Esq., at Cadwalader, Wickersham & Taft LLP, in New York,
serves as the Debtors' bankruptcy counsel. Evercore Partners
serves as financial advisors, and Alix Partners and its subsidiary
AP Services LLC, serves as restructuring advisors. AlixPartners'
Kevin M. McShea acts as the Debtors' Chief Restructuring Officer.
Clifford Chance LLP serves as restructuring advisors to the
European entities. Lyondell Chemical estimated that consolidated
assets total US$27.12 billion and debts total US$19.34 billion as
of the bankruptcy filing date.
Lyondell has obtained approximately US$8 billion in DIP financing
to fund continuing operations. The DIP financing includes two
credit agreements: a US$6.5 billion term loan, which comprises a
US$3.25 billion in new loans and a US$3.25 billion roll-up of
existing loans; and a US$1.57 billion asset-backed lending
facility.
Luxembourg-based LyondellBasell Industries AF S.C.A. and another
affiliate were voluntarily added to Lyondell Chemical's
reorganization filing under Chapter 11 on April 24, 2009, in order
to seek protection against claims by certain financial and U.S.
trade creditors. On May 8, 2009, LyondellBasell Industries added
13 non-operating entities to Lyondell Chemical Company's
reorganization filing under Chapter 11 of the U.S. Bankruptcy
Code. All of the entities are U.S. companies and were added to
the original Chapter 11 filing for administrative purposes. The
filings will have no impact on current business or operations as
none of the entities manufactures or sells products.
Bankruptcy Creditors' Service, Inc., publishes Lyondell Bankruptcy
News. The newsletter tracks the Chapter 11 proceeding undertaken
by Lyondell Chemical Company and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
LYTHGOE PROPERTIES: Asks Court OK to Use Cash Collateral
--------------------------------------------------------
Lythgoe Properties, LLC, seeks authority from the Hon. Herb Ross
of the U.S. Bankruptcy Court for the District of Alaska to use up
to $26,009 cash collateral in the form of recurring rent revenue
to cover certain essential expenditures that may arise during the
month of January and thereafter.
The Debtor needs the money to fund their Chapter 11 case, pay
suppliers and other parties. The Debtors will use the collateral
pursuant to a weekly budget, a copy of which is available for free
at:
http://bankrupt.com/misc/LYTHGOE_PROPERTIES_budget.pdf
The Debtor agrees that the use of cash collateral will be secured
by post-petition liens on replacement rent. This is to the extent
the mortgagee does not otherwise already have an interest in rents
The Debtor further agrees that the cash collateral will be
segregated in a separate account. Debtor will file weekly reports
on expenditures which will be supplied to the mortgagee within
three business days following the close of each week.
The Debtor says that its counsel, John C. Siemers, Esq., at Burr,
Pease & Kurtz, left for the holidays on December 24, 2009 and
returning to the office the afternoon of January 11, 2010. Mr.
Siemers will prepare a more comprehensive motion for use of cash
collateral to be filed in January after counsel has returned from
the holidays.
Judge Ross has ordered that the Debtor file a paper by
December 29, 2009, indicating:
(a) the name, address, phone number, e-mail address, and fax
number of the representative of entities entitled to
protection of the cash collateral who debtor expects to
appear at a cash collateral hearing; and
(b) whether or not debtor has sought an interim consensual
cash collateral stipulation
According to the Debtor, Mr. Siemers had a conversation with Nancy
S. Schierhorn, Esq., on December 28, 2009. "LNR Partners is
represented by Nancy S. Schierhorn / Patton Boggs. LNR Partners
is the party with an interest in the cash collateral. Per the
conversation on December 28, 2009, Nancy S. Schierhorn is going to
discuss and go over the motion with her client to confirm whether
there is consent," the Debtor states. The Debtor says that Ms.
Schierhorn can be reached at:
3931 Moonstar Circle
Anchorage, AK 99516
Phone: (907) 346-1311
Fax: (907) 346-1312
E-mail: nschierhorn@gci.net
Judge Ross has set, at the behest of the Debtor, a January 11,
2010 hearing on the Debtor's request for interim, emergency use of
cash collateral.
Eagle River, Alaska-based Lythgoe Properties, LLC, filed for
Chapter 11 bankruptcy protection on December 28, 2009 (Bankr.
Alaska Case No. 09-00966). John C. Siemers, Esq., at Burr, Pease
& Kurtz assists the Company in its restructuring effort. The
Company listed $10,000,001 to $50,000,000 in assets and
$10,000,001 to $50,000,000 in liabilities.
LYTHGOE PROPERTIES: Court Extends Schedules Filing Until Jan. 25
----------------------------------------------------------------
The Hon. Herb Ross of the U.S. Bankruptcy Court for the District
of Alaska has extended, at the behest of Lythgoe Properties, LLC,
the filing of schedules and financial affairs until January 25,
2010.
John C. Siemers, Esq., at Burr, Pease & Kurtz, the Debtor's
counsel is absent from the office from December 24 until
January 11, 2010, and needs additional time to complete the
schedules and the statement of affairs after his return.
Eagle River, Alaska-based Lythgoe Properties, LLC, filed for
Chapter 11 bankruptcy protection on December 28, 2009 (Bankr.
Alaska Case No. 09-00966). John C. Siemers, Esq., at Burr, Pease
& Kurtz assists the Company in its restructuring effort. The
Company listed $10,000,001 to $50,000,000 in assets and
$10,000,001 to $50,000,000 in liabilities.
LYTHGOE PROPERTIES: Sec. 341 Creditors Meeting Set for Feb. 1
-------------------------------------------------------------
The U.S. Trustee for Region 18 will convene a meeting of Lythgoe
Properties, LLC's creditors on February 1, 2010, at 1:30 p.m. at
Old Federal Building, Room 250, 605 West Fourth Avenue, Anchorage,
AK 99501-2296.
This is the first meeting of creditors required under Section
341(a) of the U.S. Bankruptcy Code in all bankruptcy cases.
All creditors are invited, but not required, to attend. This
Meeting of Creditors offers the one opportunity in a bankruptcy
proceeding for creditors to question a responsible office of the
Debtor under oath about the company's financial affairs and
operations that would be of interest to the general body of
creditors.
Eagle River, Alaska-based Lythgoe Properties, LLC, filed for
Chapter 11 bankruptcy protection on December 28, 2009 (Bankr.
Alaska Case No. 09-00966). John C. Siemers, Esq., at Burr, Pease
& Kurtz assists the Company in its restructuring effort. The
Company listed $10,000,001 to $50,000,000 in assets and
$10,000,001 to $50,000,000 in liabilities.
MACC PRIVATE: KPMG LLP Raises Going Concern Doubt
-------------------------------------------------
KPMG, LLP, in San Diego, Calif., expressed substantial doubt about
MACC Private Equities, Inc.'s ability to continue as a going
concern after auditing the Company's financial statements as of
and for the years ended September 30, 2009, and 2008. The
independent auditing firm said that the Company does not have
sufficient cash on hand to meet current obligations.
As of September 30, 2009, MACC's cash and money market accounts
totaled $173,521. MACC has a term loan in the amount of
$4,618,659 with Cedar Rapids Bank & Trust Company which has a
stated maturity date of March 31, 2010.
The Company reported a decrease of $2,625,593 in net assets during
fiscal year 2009, compared to a decrease in net assets of
$1,085,829 during fiscal year 2008.
During the fiscal year ended September 30, 2009, total investment
income was $586,989, a decrease of 39% from fiscal year 2008 total
investment income of $955,563. The decrease during the current
year was the net result of a decrease in interest income of
$209,156, or 35%, and a decrease in dividend income of $167,065,
or 47%.
Investment expense, net, which represents total investment income
minus net operating expenses and income tax expense, was
($576,810) in fiscal year 2009, an increase of 29% from investment
expense, net of ($447,791) in fiscal year 2008. The increase in
investment expense, net is the result of the decrease in
investment income partly offset by a decrease in net operating
expenses to $1,163,799 in fiscal year 2009 from $1,403,354 in
fiscal year 2008.
MACC recorded a net realized loss on investments in fiscal 2009 of
$2,444,130 as compared to a net realized gain of $687,269 in
fiscal year 2008.
MACC had unrealized depreciation of $2,543,635 at September 30,
2009, a change of $395,347 from the $2,938,982 of unrealized
depreciation at September 30, 2008. This, along with the net
realized loss of $2,444,130, resulted in a net loss on investments
for fiscal year 2009 of $2,048,783, as compared to a net loss on
investments of $607,360 for fiscal year 2008.
As a result of the decrease of $2,625,593 in net assets during
fiscal year 2009, MACC's net asset value per share decreased to
$3.17 at September 30, 2009, as compared to a net asset value per
share of $4.23 at September 30, 2008.
A full-text copy of MACC's 2009 annual report is available at no
charge at http://researcharchives.com/t/s?4d2c
About MACC Private Equities
Based in Encinitas, Calif., MACC Private Equities, Inc. makes
investments in small businesses in the United States. MACC common
stock is traded on the Nasdaq Capital Market under the symbol
"MACC."
MACC has no employees, and all of its day to day operations are
carried out by its officers and the staff of its investment
adviser, Eudaimonia Asset Management, LLC with the assistance of
its subadviser, InvestAmerica Investment Advisors, Inc.
MARICOPA INDUSTRIAL: Moody's Puts 'B1' Rating on Watchlist
----------------------------------------------------------
Moody's Investors Service has placed on Watchlist for possible
downgrade the B1 rating of the Maricopa Industrial Development
Authority (AZ) Education Revenue Bonds, affecting approximately
$22 million in outstanding debt. The Watchlist action reflects
the deteriorating financial performance of a number of the
individual participant charter schools resulting in a steady
decline in annual debt service coverage, as well as near term
challenges including state funding delays placing material
pressure on the liquidity of the individual participants. The
Watchlist action also incorporates ongoing litigation against
Omega Academy, the largest participant in the pool with
approximately 28% of total pool par outstanding. Review of the
rating is expected to be completed within 90 days and will reflect
further analysis of individual school financial and operating
performance, including review of fiscal 2009 audits yet to be
received by Moody's.
The last rating action with respect to the Maricopa Industrial
Development Authority (AZ) Education Revenue Bonds was on July 18,
2007, when the rating was downgraded to B1 and the rating was
removed from Watchlist.
MARGAUX INVESTORS: Case Summary & Unsecured Creditor
----------------------------------------------------
Debtor: Margaux Investors, LLC
121 Warm Springs East
Las Vegas, NV 89119
Bankruptcy Case No.: 10-10122
Chapter 11 Petition Date: January 6, 2010
Court: United States Bankruptcy Court
District of Nevada (Las Vegas)
Judge: Mike K. Nakagawa
Debtor's Counsel: Michael C. Van, Esq.
Shumway Van & Hansen, Chtd
8985 S. Eastern Ave., #160
Las Vegas, NV 89123
Tel: (702) 478-7770
Fax: (702) 478-4779
Email: michael@shumwayvan.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
According to the schedules, the Company has assets of $1,060,000
and total debts of $3,377,813.
The Debtor identified Terrence P. Bean and Bean-Orchid, LLC (c/o
Charles J. Paternoster, Esq.) with a debt claim (Contingent,
disputed and unliquidated claim) for $3,377,813 as its largest
unsecured creditor. A full-text copy of the Debtor's petition,
including a list of its largest unsecured creditor, is available
for free at http://bankrupt.com/misc/nvb10-10122.pdf
The petition was signed by Ken Baxter, manager of the Company.
MARK PANISSIDI: Voluntary Chapter 11 Case Summary
-------------------------------------------------
Debtor: Mark S. Panissidi
821 Armada Terrace
San Diego, CA 92106-3034
Bankruptcy Case No.: 10-00132
Chapter 11 Petition Date: January 6, 2010
Court: United States Bankruptcy Court
Southern District of California (San Diego)
Judge: Chief Judge Peter W. Bowie
Debtor's Counsel: Stephen K. Haynes, Esq.
P.O. Box 84526
San Diego, CA 92138-4526
Tel: (619) 523-4204
Email: haynes-esq@att.net
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Debtor did not file a list of its 20 largest unsecured
creditors when it filed its petition.
The petition was signed by Panissidi.
MARQUETTE TRANSPORTATION: Moody's Assigns 'B2' Corp. Family Rating
------------------------------------------------------------------
Moody's Investors Service assigned ratings to Marquette
Transportation Company, LLC; corporate family and probability of
default, each of B2. Moody's also assigned a rating of B3 to the
planned issuance of $250 million of Second Lien Senior Secured
Notes due 2017. The outlook is stable. These are first time
ratings of Marquette.
The proceeds of the Notes and a substantial drawing under a new
$225 million asset-based revolving credit facility due January
2014 (not rated) will fund the refinancing of the company's
current debt structure.
The B2 corporate family rating considers Marquette's leading
market position and long operating history as an independent
provider of horsepower to inland river barge freight companies.
Moody's believes the company's operating model is less risky than
that of the river freight transportation sector, which is more
competitive and has more volatile pricing. Long-term
relationships with major blue-chip customers and somewhat high
barriers to entry help mitigate, but not entirely offset
significant customer concentration. While a significant component
of revenues is sourced from ton-mile contracts, Moody's
understands that these agreements do not contain minimum usage
levels, such that revenues remain exposed to fluctuating demand
over economic cycles. The ratings contemplate that Marquette will
sustain positive free cash flow in 2010 and 2011 and that such
free cash flow will be applied to debt reduction to help
strengthen credit metrics to levels more supportive of the B2
rating category. Liquidity is adequate.
The stable outlook reflects Moody's belief that Marquette is
likely to sustain its leading position as a third-party provider
of power to inland river freight companies and that its largest
customers will not change their operating models, such that they
in-source the majority of their power needs. The outlook could be
changed to positive if Marquette is able to organically grow its
revenue base to above $400 million while maintaining its EBITDA
margin close to current levels. Debt to EBITDA sustained below
5.0 times and FFO + Interest to Interest sustained above 3.0 times
could also lead to a positive rating action as could Retained Cash
Flow to Net Debt of above 15%. The outlook could be changed to
negative or the ratings directly downgraded should one of the
company's five largest customers cease its relationship with
Marquette or if Marquette was to unexpectedly execute an
acquisitive growth strategy that results in an increase in the
debt balance and delays the planned de-levering of the capital
structure. Debt to EBITDA sustained above 5.5 times, FFO +
Interest to Interest that remains below 2.2 times or Retained Cash
Flow to Net Debt that is sustained below ten percent could also
lead to a ratings downgrade.
Assignments:
Issuer: Marquette Transportation Company, LLC
-- Probability of Default Rating, Assigned B2
-- Corporate Family Rating, Assigned B2
-- Senior Unsecured Regular Bond/Debenture, Assigned a range of
72 - LGD5 to B3
Marquette Transportation Company, LLC, headquartered in Paducah,
Kentucky, is a leading provider of outsourced power to the inland
and offshore barge freight shipping sectors.
MAUREEN DUNKEL: Case Summary & 11 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: Maureen Rorech Dunkel
2913 Safe Harbor Drive
Tampa, FL 33618
Bankruptcy Case No.: 10-00267
Chapter 11 Petition Date: January 7, 2010
Court: United States Bankruptcy Court
Middle District of Florida (Tampa)
Debtor's Counsel: Jeffrey W. Warren, Esq.
Bush Ross, P.A.
Post Office Box 3913
Tampa, FL 33601-3913
Tel: (813) 224-9255
Fax: (813) 223-9620
Email: jwarren@bushross.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A list of the Company's 11 largest unsecured creditors is
available for free at:
http://bankrupt.com/misc/flmb10-00267.pdf
The petition was signed by Maureen Rorech Dunkel.
MESA AIR: Has Interim Nod to Pay Employee Wages
-----------------------------------------------
Prior to the bankruptcy filing and in the ordinary course of their
businesses, Mesa Air Group Inc. and its units incur payroll and
various other obligations, including benefit obligations, to
approximately 3,400 full and part-time employees -- approximately
2,000 of such Employees are covered by collective bargaining
agreements with certain Debtors -- for the performance of their
services.
The costs and obligations are either outstanding and due and
payable, or will become due and payable in the ordinary course of
the Debtors' businesses on and after the Petition Date, Maria A.
Bove, Esq., at Pachulski Stang Ziehl & Jones LLP, in New York,
explains.
By this motion, the Debtors propose to pay or honor, in their sole
discretion and in accordance with prepetition customs and
procedures, certain prepetition claims for wages, salaries,
incentives, vacation and other paid leave, and other forms of
compensation, as well as applicable federal and state withholding
taxes, payroll taxes and payments relating to their Employee
benefit plans.
Ms. Bove relates that the Debtors' Employee Compensation
Obligations include:
(1) Payroll obligations at an estimated amount of $6.5
million, consisting of (i) $4.5 million in accrued and
unpaid wages that are due and payable on January 15, 2010,
(ii) $800,000 in accrued and unpaid wages that will not
become due and payable until January 30, 2010, and (iii)
$1.2 million in accrued and unpaid wage obligations that
are due and payable on January 15, 2010. The Payroll
Obligations with respect to each Employee do not exceed
the $10,950 cap as provided under Section 507(a)(4) of the
Bankruptcy Code.
Taxes from the Payroll Obligations, which includes certain
federal, state, and local income taxes, and social
security and Medicare taxes prior to the Petition Date are
approximately $2.68 million, which is due and payable on
or about January 15, 2010.
(2) Fees payable to Automatic Data Processing, Inc., as
payroll administrator, which aggregate approximately
$15,000 as of the Petition Date.
(3) Paid time off obligations, including (i) vacation time
benefits for union and non-union employees, (ii) holiday
time benefits for full-time non-union employees, (iii)
sick time benefits for unionized employees under certain
collective bargaining agreements.
(4) On a case-by-case basis, severance program or policy equal
to two-weeks' wages or salary to those Employees that are
not insiders that are involuntary terminated without
cause. The Severance Program was not formally established
prior to the Petition Date.
(5) Incentive Plan obligations for a variety of Employees that
the Debtors employ in different capacities, which may
aggregate approximately $400,000 as of the Petition Date.
Except for potentially six Employees, the Incentive Plan
Obligations do not exceed the $10,950 cap as provided
under Section 507(a)(4) of the Bankruptcy Code.
(6) Executive Bonuses for Mesa Air President Michael J. Lotz
and Chief Executive Officer Jonathan Ornstein, which
prepetition claims, along with those of five other
executives, may aggregate approximately $185,000 and
relate to the three month period ending December 31, 2009.
(7) certain Deferred Compensation Payments into trust
accounts established for Messrs. Ornstein, Lotz, and two
other Employees. For Messrs Ornstein and Lotz, their
contributions under the Deferred Compensation Program were
made monthly in the amount of their annual salaries and
were through December 2009. In the case of the other two
Employees, the Debtors made a onetime contribution in
March 2009 in the amount of $50,000 each to their trust
accounts.
Postpetition, the Debtors intend to establish a new
Deferred Compensation Plan so any contributions that are
made after the Petition Date will be accounted for
separately from the prepetition contributions and only
subject to the valid postpetition claims of general
creditors of the Debtors.
The Debtors have established and sponsor various health and
welfare plans and policies for their full-time Employees,
including, without limitation:
* medical plans obligations that are accrued and unpaid at
approximately $2.4 million as of the Petition Date, and
include approximately $135,000 due and payable on January 5,
2010; and within $135,000 and $343,000, payable on January
12, 19, and 26;
* medical administration fee for Coventry Health Care, which
are unpaid and due on January 11, 2010 at $13,000;
* flexible spending programs through Discovery Benefits --
through which Full-time Employees contribute for eligible
out-of-pocket medical expenses -- with $21,000 in
contributions for the period ending December 31, 2009, that
the Debtors seek to remit;
* Accidental Death & Dismemberment Insurance Plans for which
the Debtors have unpaid obligations totaling $15,000 as of
the Petition Date;
* Long-Term Disability Plan, under which the Debtors have
unpaid prepetition obligation totaling $10,881 as of the
Petition Date; and
* a retirement savings plan -- a qualified defined
contribution plan pursuant to Section 401 of the Internal
Revenue Code -- under which the Debtors have accrued and
unpaid prepetition obligations aggregating approximately
$407,000 for the period ending December 31, 2009, and of
which (i) $235,000 is due and payable January 5, 2010; and
(ii) the remainder will be due and payable on or about
January 15, 2010.
The Debtors also maintained (i) voluntary programs for life
insurance and accidental and death insurance, (ii) Short-Term
Disability Plan, and (iii) Separate Disability and Life Insurance
for Executives for which the Debtors have no obligation as of the
Petition Date, Ms. Boves notes.
In addition, the Debtors employ 27 employees in Mexico, who
receive benefits from programs widely based upon local laws and
custom, including health benefits, labor insurance, death and
disability insurance, retirement benefits, and certain other
employee benefits. As of the Petition Date, the Debtors estimate
that the accrued and unpaid prepetition Foreign Benefit
Obligations is approximately $18,000 and are due and payable
January 15 and 18, 2010.
Other prepetition obligations incurred by the Debtors in relation
to their Employees include:
* Payroll Garnishment relating to child support or union dues,
which are done through voluntary payroll deductions,
totaling $300,000; and
* Reimbursement Obligations for Employee's expenses in
the performance of their duties, aggregating $55,000.
The Debtors also ask the Court to authorize certain banks and
institutions to receive, process, honor, and pay all prepetition
and postpetition transfers executed by the Debtors with respect to
the payment of their Employee Obligations. A list of the Banks is
available at no charge at:
http://bankrupt.com/misc/Mesa_Banks&PayrollAccts.pdf
Ms. Boves relates that the Employee Obligations do not exceed the
cap under sections 507(a)(4) and (5) of the Bankruptcy Code, are
not property of the estate and held in trust for the Taxing
Authorities, or are essential to administering benefits giving
rise to the Employee's claims.
"The total amount of prepetition Employee Obligations is
relatively modest and less than the limitations set forth under
sections 507(a)(4) and (5) of the Bankruptcy Code," Ms. Boves
tells Judge Glenn.
Therefore, Ms. Boves continues, any amounts paid now will not
affect distributions to general unsecured claimholders because
such holders are not entitled to payment on their claims until all
or the vast majority of Employee Obligations are satisfied in
full.
Ms. Bove clarifies that the Debtors do not seek to alter any of
the plans or policies, but only ask the Court to permit them to
make payments consistent with their existing policies and
practices. Moreover, the Debtors' payment of their prepetition
obligations to their Employees should neither unduly prejudice
general unsecured creditors nor materially affect the Debtors'
estates because claims subject to Sections 507(a)(4) and 507(a)(5)
of the Bankruptcy Code are entitled to payment in full under a
reorganization plan, Ms. Boves adds.
* * *
The Court approved the Debtors' request on an interim basis.
Objections, if any, must be filed on or before January 15, 2010.
A final hearing will be scheduled to consider timely Objections.
Otherwise, the Debtors will submit to the Court a proposed final
order that the Court may enter without further notice.
About Mesa Air Group
Mesa currently operates 130 aircraft with approximately 700 daily
system departures to 127 cities, 41 states, Canada, and Mexico.
Mesa operates as Delta Connection, US Airways Express and United
Express under contractual agreements with Delta Air Lines, US
Airways and United Airlines, respectively, and independently as
Mesa Airlines and go! Mokulele. This operation links Honolulu to
the neighbor island airports of Hilo, Kahului, Kona and Lihue. The
Company, founded by Larry and Janie Risley in New Mexico in 1982,
has approximately 3,500 employees.
Mesa Air Group Inc. and its units filed their Chapter 11 petitions
Jan. 5 in New York (Bankr. S.D.N.Y. Case No. 10-10018), listing
assets of $976 million against debt totaling $869 million as of
Sept. 30, 2009.
Richard M. Pachulski, Esq., and Laura Davis Jones, Esq., at
Pachulski Stang Ziehl & Jones LLP, serve as local counsel.
Imperial Capital LLC is the investment banker. Epiq Bankruptcy
Solutions is claims and notice agent.
Bankruptcy Creditors' Service, Inc., publishes Mesa Air Bankruptcy
News. The newsletter tracks the Chapter 11 proceedings undertaken
by Mesa Air Group Inc. and its units.
(http://bankrupt.com/newsstand/or 215/945-7000)
MESA AIR: Proposes to Abandon Excess Owned Equipment
----------------------------------------------------
Mesa Air Group Inc. and its units currently maintain a fleet of
approximately 178 aircraft consisting of 48 CRJ-200s, 20 CRJ-700s,
38 CRJ-900s, 36 ERJ-145s, 16 Dash-8s, and 20 Beech 1900s.
As currently configured, the Fleet is too large for the Debtors'
operations. Approximately 52 aircraft are parked and not being
used. In addition, over the next several months, the Debtors plan
to retire additional aircraft that are not needed to service their
customers. The Debtors need to reduce the Fleet to eliminate the
significant costs associated with retaining, maintaining, and
storing the aircraft that are not in use. The Debtors have
conducted an extensive analysis of the Fleet and identified the
aircraft that are not necessary for continued operations or a
successful reorganization. Once the Fleet is reduced and the
excess aircraft are disposed of, the Debtors believe they will
operate profitably and can successfully emerge from Chapter 11.
By this motion, the Debtors seek the Court's authority to abandon
the aircraft and other related equipment in a schedule available
for free at http://bankrupt.com/misc/mesaexcessequip.pdfthat are
owned by the Debtors and no longer necessary in the operation of
their business.
The Debtors seek authority, on an interim basis, to abandon each
item of Excess Owned Equipment, effective as of the earliest of:
(i) the "Effective Date," which is the date that the Debtors
believe all applicable requirements of Section 1110 of the
Bankruptcy Code with respect to the return of the Excess Owned
Equipment will be or have been satisfied, or (ii) the date that
the Debtors and the applicable Secured Party have reached an
agreement regarding the return of the Excess Owned Equipment,
provided, however, if any affected Secured Party or other party in
interest wishes to object to abandonment of the Excess Owned
Equipment, the objecting party must file and serve the Objection
in accordance with the terms set forth in the order approving the
Motion.
The Debtors propose that the deadline to file an objection to the
Motion be 4:00 p.m. (prevailing Eastern Time) on the date that is
10 days from the entry of the interim Order. The Debtors further
request that the Order specify that if no Objections are timely
filed, served, and received in accordance with this Motion with
respect to a given item of Excess Owned Equipment, the Order will
be deemed a final order with respect to that item of Excess Owned
Equipment as of the applicable Effective Date without further
notice or hearing.
If an Objection is timely filed with respect to a given item of
Excess Owned Equipment, the Debtors request that the Court
schedule a hearing on the Motion with respect to that item of
Excess Owned Equipment. If an Objection is overruled or withdrawn
with respect to a given item of Excess Owned Equipment, the
Debtors request that the Order also be deemed final with respect
to that item of Excess Owned Equipment as of the applicable
Effective Date.
The Debtors also seek the Court's authority to (a) transfer title
to the abandoned Excess Owned Equipment to mortgagees, security
trustees, or indenture trustees having a security interests in the
Excess Owned Equipment and (b) surrender and return the Excess
Owned Equipment to the Secured Parties.
The Debtors propose that any claims arising out of any abandonment
effected pursuant to the proposed abandonment procedures must
timely be filed in accordance with any order pursuant to Rule
3003(c) of the Federal Rules of Bankruptcy Procedure establishing
a deadline by which prepetition general unsecured claims must be
filed on or before the later of (i) the Bar Date or (ii) 30 days
after the Effective Date with respect to the item of Excess Owned
Equipment. Any claim not timely filed will be irrevocably barred
and will not be entitled to receive any distributions from the
Debtors' estates that are authorized by the Court.
In connection with the abandonment of Excess Owned Equipment, the
Debtors will deliver records and documents relating to the
applicable Excess Owned Equipment to the applicable Secured
Party(ies).
The Debtors also propose that if the Secured Party affected by the
abandonment of Excess Owned Equipment and the transfer of title
thereto does not retrieve or otherwise take control of the
relevant Excess Owned Equipment immediately after the Effective
Date of the abandonment, that Secured Party will be responsible to
the Debtors for the subsequent costs of, and all risks attendant
to, storing such equipment and for other attendant costs as
determined by the Debtors, including costs of insuring the Excess
Owned Equipment. If the Secured Party does not remove the Excess
Owned Equipment or otherwise contract with a third party for
storage of the Excess Owned Equipment, the Debtors may file a
motion to compel removal of the Excess Owned Equipment and payment
to the Debtors of storage and other attendant costs including,
without limitation, all legal fees.
The Debtors further propose that the surrender and return of
Excess Owned Equipment and execution and delivery of title
documents and records will be subject to and in accordance with
the surrender and return requirements of section 1110(c);
provided, that the surrender and return is without prejudice to
the rights of (i) a Secured Party to assert damages as part of any
unsecured deficiency claim, if any, (ii) a Secured Party to assert
damages for failure to satisfy all non-section 1110(c) contractual
return or turnover provisions of the applicable security
agreement, or (iii) the Debtors or any other party in interest to
object to any claims.
Upon written request from an affected Secured Party, the Debtors
agree to cooperate reasonably with such Secured Party with respect
to the execution of or provision of information required for a
bill of sale or quitclaim deed, as applicable, to be filed with
the Federal Aviation Administration in connection with the Excess
Owned Equipment; provided, however, that the affected Secured
Party will be solely responsible for all costs associated with the
documentation, the filing thereof with the FAA, and the
transportation of the aircraft. Accordingly, the Debtors seek
authority to execute and deliver all instruments and documents and
take any additional actions as are necessary or appropriate to
implement and effectuate the procedures.
The Debtors believe that the relief requested is warranted because
the Fleet reduction will eliminate obligations of the Debtors for
which there is no corresponding benefit. Further, the proposed
procedures establish an orderly and efficient process for the
surrender and return of the Excess Owned Equipment and related
documentation that are consistent with the requirements under
Section 1110. As a result, the requested relief will ensure that
the Excess Owned Equipment are returned to the applicable Secured
Parties, as the case may be, in accordance with the terms of the
applicable security agreement to the extent that the terms
thereunder do not exceed the requirements set forth under Section
1110.
The Debtors tell the Court that they will continue to analyze the
Fleet and, as a result of the ongoing analysis, the Debtors
believe it is likely that additional aircraft and other related
equipment will be retired in the future subject to the same or
similar procedures proposed herein on notice to all affected
parties and those parties entitled to receive notice in these
Chapter 11 cases.
* * *
A hearing on this Motion will be held on January 12, 2010, at 4:00
p.m. Objections are due January 8.
About Mesa Air Group
Mesa currently operates 130 aircraft with approximately 700 daily
system departures to 127 cities, 41 states, Canada, and Mexico.
Mesa operates as Delta Connection, US Airways Express and United
Express under contractual agreements with Delta Air Lines, US
Airways and United Airlines, respectively, and independently as
Mesa Airlines and go! Mokulele. This operation links Honolulu to
the neighbor island airports of Hilo, Kahului, Kona and Lihue. The
Company, founded by Larry and Janie Risley in New Mexico in 1982,
has approximately 3,500 employees.
Mesa Air Group Inc. and its units filed their Chapter 11 petitions
Jan. 5 in New York (Bankr. S.D.N.Y. Case No. 10-10018), listing
assets of $976 million against debt totaling $869 million as of
Sept. 30, 2009.
Richard M. Pachulski, Esq., and Laura Davis Jones, Esq., at
Pachulski Stang Ziehl & Jones LLP, serve as local counsel.
Imperial Capital LLC is the investment banker. Epiq Bankruptcy
Solutions is claims and notice agent.
Bankruptcy Creditors' Service, Inc., publishes Mesa Air Bankruptcy
News. The newsletter tracks the Chapter 11 proceedings undertaken
by Mesa Air Group Inc. and its units.
(http://bankrupt.com/newsstand/or 215/945-7000)
MESA AIR: Receives Court Approval of First Day Motions
------------------------------------------------------
Mesa Air Group Inc. received approval of all critical motions at
its "first-day" hearing in the United States Bankruptcy Court for
the Southern District of New York presided over by the Honorable
Judge Martin Glenn. Requests included covering its obligations to
employees, suppliers and customers, business operations, tax
matters, cash management, fuel procurement, and case management.
To ensure the company continues to operate without interruption,
the Court has approved all requests which include important
motions such as the company's requests to continue to use its
current cash management systems which will support the other
approved requests including the continuation of existing employee
salary and benefit programs, payment of pre-petition amounts to
certain critical vendors, ongoing payments to vendors and
suppliers, and the continuation of all go! Mokulele customer
programs.
"The approval of our first day motions allows us to continue to
focus on our restructuring efforts," said Jonathan Ornstein
Chairman and Chief Executive of Mesa. "Our hope is to move
through this process in a timely manner and this first success is
the foundation upon which we will build as we eliminate excess
aircraft to better match our needs and give us the flexibility to
align our business to the changing regional airline marketplace."
Mesa Air Group filed voluntary petitions to reorganize under
Chapter 11 of the U.S Bankruptcy Code in the United States
Bankruptcy Court for the Southern District of New York on
January 5, 2010. The case number is 10-10018 and is being
presided over by the Honorable Judge Martin Glenn. Interested
parties can find updates and additional information at the
Company's website at http://www.mesa-air.com/restructuring.
Imperial Capital is serving as financial advisor, and Pachulski,
Stang, Ziehl & Jones LLP is serving as legal counsel to the
Company and its subsidiaries in connection with the restructuring.
Mesa currently operates 130 aircraft with approximately 700 daily
system departures to 127 cities, 41 states, Canada, and Mexico.
Mesa operates as Delta Connection, US Airways Express and United
Express under contractual agreements with Delta Air Lines, US
Airways and United Airlines, respectively, and independently as
Mesa Airlines and go! Mokulele. This operation links Honolulu to
the neighbor island airports of Hilo, Kahului, Kona and Lihue. The
Company, founded by Larry and Janie Risley in New Mexico in 1982,
has approximately 3,500 employees.
About Mesa Air Group
Mesa currently operates 130 aircraft with approximately 700 daily
system departures to 127 cities, 41 states, Canada, and Mexico.
Mesa operates as Delta Connection, US Airways Express and United
Express under contractual agreements with Delta Air Lines, US
Airways and United Airlines, respectively, and independently as
Mesa Airlines and go! Mokulele. This operation links Honolulu to
the neighbor island airports of Hilo, Kahului, Kona and Lihue. The
Company, founded by Larry and Janie Risley in New Mexico in 1982,
has approximately 3,500 employees.
Mesa Air Group Inc. and its units filed their Chapter 11 petitions
Jan. 5 in New York (Bankr. S.D.N.Y. Case No. 10-10018), listing
assets of $976 million against debt totaling $869 million as of
Sept. 30, 2009.
Richard M. Pachulski, Esq., and Laura Davis Jones, Esq., at
Pachulski Stang Ziehl & Jones LLP, serve as local counsel.
Imperial Capital LLC is the investment banker. Epiq Bankruptcy
Solutions is claims and notice agent.
Bankruptcy Creditors' Service, Inc., publishes Mesa Air Bankruptcy
News. The newsletter tracks the Chapter 11 proceedings undertaken
by Mesa Air Group Inc. and its units.
(http://bankrupt.com/newsstand/or 215/945-7000)
MESA AIR: To Honor Industry-Related Agreements
----------------------------------------------
Mesa Air Group Inc., and its units sought and obtained interim
authority from the Court to (i) honor and satisfy accrued and
unpaid prepetition and postpetition obligations under the
Interline Agreements, Clearinghouse Agreements, ARC Agreement,
Alliance Agreements, Codeshare Agreements, and ATPCO Agreement in
the ordinary course of business; and (ii) direct the applicable
clearinghouse -- Airlines Clearing House, Inc. -- and any other
applicable bank or financial institution to process payments and
transfers and to honor all funds transfer requests made by the
Debtors relating to the Industry Agreements.
The airline business, according to Maria A. Bove, Esq., at
Pachulski Stang Ziehl & Jones LLP, in New York, is an
interdependent industry based on a vast worldwide network of
agreements that govern essentially all aspects of airline
operations. Without agreements that provide for the sharing and
exchange of services, it would be virtually impossible for the
Debtors and any airline to provide efficient and cost-effective
service, she tells the Court.
Most importantly, certain of the Industry Agreements allow the
Debtors to fulfill their obligations to their codeshare partners,
United Airlines, Inc., Delta Air Lines, Inc., and US Airways,
Inc., which codeshare arrangements generate most of the Debtors'
revenues. Certain of the other Industry Agreements provide for
the exchange of services, rights to issues tickets, and the
settlement of accounts among participating airlines and travel
agents. Certain other Industry Agreements permit travel agents to
make and confirm reservations, price and issue tickets
automatically and also provide for publication of the Debtors'
fares. The Industry Agreements, Ms. Bove says, facilitate basic
levels of cooperation among the Debtors and other airlines with
regard to vital activities, like making reservations and
transferring passengers, freight, baggage, mail, and advertising
of fares.
Ms. Bove points out that as recognized in other Chapter 11 airline
cases, agreements substantially similar to the Industry Agreements
are an essential component to the Debtors' businesses. Certain
services under these agreements are the equivalent of industry
wide utility services for which no readily available alternative
exists. Should the Debtors fail to honor or pay valid, accrued,
and unpaid prepetition obligations owed to the parties pursuant to
the Industry Agreements, these parties may refuse or delay their
performance under the Industry Agreements or otherwise put at risk
the parties' critical relationships, which would result in
immediate and irreparable harm to the Debtors' estates and all
stakeholders in these Chapter 11 cases, she says. Thus, subject
to certain conditions, the Debtors seek to take immediate, active
steps to preserve these essential relationships.
Industry Agreements
A. Interline Agreements
In relation to the Debtors' go! Mokulele operations, the Debtors
are party to agreements with other carriers that are commonly
known as interline agreements. The Debtors are parties to
Interline Agreements with each of Alaska Airlines, American
Airlines, Delta Airlines, Delta Air Lines/Northwest Airlines, and
Hawaii Island Air, Inc.
As of the Petition Date, the Debtors estimate that the accrued and
unpaid prepetition obligations under the Interline Agreements is
approximately $225,000. This estimate, according to Ms. Bove, is
a gross figure, and not net of certain amounts that may be owed to
Mesa under certain Interline Agreements, and thus, the actual cash
outlay by the Debtors will likely be materially less than
$225,000. The Debtors will pay accrued and unpaid prepetition
obligations under the Interline Agreements and continue honoring
the Interline Agreements in the ordinary course of business.
B. Clearinghouse Agreements
The Debtors generally settle their accounts under certain Industry
Agreements through a clearinghouse, either the Airlines Clearing
House, Inc., or the International Air Transport Association
Clearinghouse. The Debtors are associate members of the ACH, and
are parties to two clearinghouse agreements with ACH. One of the
Debtors' Clearinghouse Agreements with ACH allows the Debtors to
participate in IATA billing and settlement plan regions, which
facilitate international sales transactions similar to those
domestic sales transactions facilitated by the other Clearinghouse
Agreement with ACH.
As of the Petition Date, the Debtors estimate that the accrued and
unpaid prepetition obligations owed related to the Clearinghouse
Agreements, including amounts that may be owed by the Debtors with
respect to ACH Settled Accounts, is approximately $325,000 on a
gross basis, which is comprised of approximately $225,000 owed by
the Debtors under the Interline Agreements and approximately
$100,000 that may be owed to global distribution systems.
C. ARC Agreement
The Debtors are also party to a multi-lateral agreement with the
Airlines Reporting Corporation in relation to their go! Mokulele
operations as to account settlements not handled by ACH. ARC
serves as a clearinghouse and enables the refund claims of, and
commissions owed to, travel agencies to be offset against the
funds owed to airlines from travel agencies. The majority of
travel agents located in the United States are members of ARC. As
of the Petition Date, there are no outstanding claims under the
ARC Agreement. Nonetheless, out of caution, the Debtors seek
authority, but not direction, to pay accrued and unpaid
prepetition obligations, if any, under the ARC Agreement,
including any amounts that may be owed to ARC for its services,
which the Debtors estimate may be approximately $24,000, and
amounts that may be owed with respect to accounts handled by ARC,
and to continue honoring this agreement in the ordinary course of
business.
D. Codeshare Agreements
Approximately 96% of the Debtors' consolidated passenger revenues
are derived from their codeshare agreements. Under the Codeshare
Agreements, the Debtors provide air transportation services to the
Principal Carriers' customers on various flight routes, using the
Principal Carriers' flight designator codes and the Principal
Carriers' livery and service marks. In exchange for providing
flights and other services pursuant to the Codeshare Agreements,
the Debtors receive compensation from the Principal Carriers and
are also reimbursed for certain expenses by the Principal
Carriers. In some cases, the Principal Carriers also provide
certain customer service, ground handling service and other
functions to the Debtors in connection with the foregoing.
The Debtors believe that their accrued and unpaid prepetition
obligations under the Codeshare Agreements, if any, are de
minimis, and as noted, typically no cash outlay by the Debtors is
required as generally, amounts owed are netted against the
substantially larger amounts due to them.
E. Alliance Agreements
The Debtors and certain airlines are party to agreements that
provide for cooperative marketing efforts. The Alliance
Agreements provide several benefits to the Debtors' partners and
their customers, including reciprocal codeshare arrangements, the
ability for the Debtors' customers to accrue and redeem frequent
flyer miles on flights of the participating airlines, and the
ability to have reciprocal airport lounge access. In particular,
the Debtors participate in the Star Alliance and SkyTeam Alliance
in connection with the Debtors' Codeshare Agreements with United,
US Airways, and Delta.
The Debtors do not believe that, as of the Petition Date, any
accrued prepetition obligations are owed by them under the
Alliance Agreements. Generally, the Debtors have no financial
obligations under those agreements; the Debtors' partners do.
Nonetheless, out of an abundance of caution, the Debtors seek
authority, but not direction, to pay accrued and unpaid
prepetition obligations, if any, under the Alliance Agreements and
to continue honoring the Alliance Agreements in the ordinary
course of business.
The Debtors' counterparties to the Alliance Agreements are:
* Air Wisconsin Airlines Corp.
* Aer Lingus
* Air Canada
* Air China
* Asiana Airlines
* Austrian Airlines
* British Midland Airways Ltd.
* Deutsche Lufthansa Aktiengesellschaft
* Jet Airways
* Nippon Airways & affiliates
* Qatar Airways
* SAS Scandinavian Airways
* Societe Air France
* South African Airways
* TACA Airlines
* TAP Portugal
F. GDS Agreement
The Debtors are party to separate participation carrier agreements
with various global distribution systems. The GDS comprises a
network of computer systems and databases that store, process, and
distribute information about available passenger air
transportation. The GDS enables travel agents to accept and
record bookings of those services from remote locations. In
addition to storing information, the GDS also allows travel agents
to make and confirm reservations, price and issue tickets
automatically, and process the travel agencies' internal
accounting. The Debtors use Sabre Inc. as their main GDS,
although the Debtors distribute their fares for corporate,
government, and travel agent accounts through other GDSs: Galileo
and Amadeus.
As of the Petition Date, the Debtors estimate that the accrued and
unpaid prepetition obligations under the GDS Agreements is
approximately $100,000. Mesa seeks authority, but not direction,
to pay accrued and unpaid prepetition obligations under the GDS
Agreements and to continue honoring the GDS Agreements in the
ordinary course of business.
G. ATPCO Agreement
Airline Tariff Publishing Company facilitates the publication of
airline tariff filings that are communicated by ATPCO to ticket
vendors pursuant to an agreement with the Debtors. The Debtors
believe that, as of the Petition Date, they may owe a de minimis
amount under the ATPCO Agreement, approximately $1,500 or less.
The Debtors seek authority, but not direction, to pay accrued and
unpaid prepetition obligations under the ATPCO Agreement and to
continue honoring the ATPCO Agreement in the ordinary course of
business.
Any objection to the Debtors' request in the Motion on a permanent
basis must be filed on or before January 15, 2010. If timely
objections are received, there will be a hearing to consider those
objections. If no objections are timely filed, the Debtors will
submit to the Court a final order.
About Mesa Air Group
Mesa Air Group Inc. currently operates 130 aircraft with 700 daily
system departures to 127 cities, 41 states, Canada, and Mexico.
Mesa operates as Delta Connection, US Airways Express and United
Express under contractual agreements with Delta Air Lines, US
Airways and United Airlines, respectively, and independently as
Mesa Airlines and go! Mokulele. This operation links Honolulu to
the neighbor island airports of Hilo, Kahului, Kona and Lihue. The
Company, founded by Larry and Janie Risley in New Mexico in 1982,
has approximately 3,500 employees.
Mesa Air Group Inc. and its units filed their Chapter 11 petitions
Jan. 5 in New York (Bankr. S.D.N.Y. Case No. 10-10018), listing
assets of $976 million against debt totaling $869 million as of
Sept. 30, 2009.
Richard M. Pachulski, Esq., and Laura Davis Jones, Esq., at
Pachulski Stang Ziehl & Jones LLP, serve as local counsel.
Imperial Capital LLC is the investment banker. Epiq Bankruptcy
Solutions is claims and notice agent.
Bankruptcy Creditors' Service, Inc., publishes Mesa Air Bankruptcy
News. The newsletter tracks the Chapter 11 proceedings undertaken
by Mesa Air Group Inc. and its units.
(http://bankrupt.com/newsstand/or 215/945-7000)
METALDYNE CORP: PBGC, Landlord Object to Consolidation
------------------------------------------------------
Law360 reports that the Pension Benefit Guaranty Corp. and a
landlord have objected to Metaldyne Corp.'s disclosure statement
over concerns about plans to consolidate the various debtors in
the liquidation of its remaining assets.
Metaldyne Corp. -- http://www.metaldyne.com/-- is a leading
global designer and supplier of metal based components, assemblies
and modules for transportation related powertrain applications
including engine, transmission/transfer case, driveline, and noise
and vibration control products to the motor vehicle industry. The
new Metaldyne company has approximately $650 million in revenue
with 26 facilities in 12 countries.
Metaldyne was previously a wholly-owned subsidiary of Asahi Tec, a
Shizuoka, Japan-based chassis and powertrain component supplier in
the passenger car/light truck and medium/heavy truck segments.
Asahi Tec is listed on the Tokyo Stock Exchange.
Metaldyne and its affiliates filed for Chapter 11 protection on
May 27, 2009 (Bankr. S.D.N.Y. Case No. 09-13412). The filing did
not include the company's non-U.S. entities or operations.
Richard H. Engman, Esq., at Jones Day represents the Debtors in
their restructuring efforts. Judy A. O'Neill, Esq., at Foley &
Lardner LLP serves as conflicts counsel; Lazard Freres & Co. LLC
and AlixPartners LLP as financial advisors; and BMC Group Inc. as
claims agent. A committee of Metaldyne creditors is represented
by Mark D. Silverschotz, Esq., and Kurt F. Gwynne, Esq., at Reed
Smith LLP, and the committee tapped Huron Consulting Services,
LLC, as its financial advisor. For the fiscal year ended
March 29, 2009, the company recorded annual revenues of
approximately US$1.32 billion. As of March 29, 2009, utilizing
book values, the Company had assets of US$977 million and
liabilities of $927 million. Judge Glenn approved the sale of
substantially all assets to Carlyle Group in November 2009 for
approximately $496.5 million.
METRO-GOLDWYN-MAYER: Bank Debt Trades at 34% Off
------------------------------------------------
Participations in a syndicated loan under which Metro-Goldwyn-
Mayer, Inc., is a borrower traded in the secondary market at 65.61
cents-on-the-dollar during the week ended Friday, Jan. 8, 2010,
according to data compiled by Loan Pricing Corp. and reported in
The Wall Street Journal. This represents increase of 1.75
percentage points from the previous week, The Journal reports.
The loan matures April 8, 2012. The Company pays 275 basis points
above LIBOR to borrow under the facility. The bank debt is not
rated by Moody's and Standard & Poor's. The debt is one of the
biggest gainers and losers among 160 widely quoted syndicated
loans with five or more bids in secondary trading for the week
ended Jan. 8, 2010.
Metro-Goldwyn-Mayer, Inc., is an independent, privately held
motion picture, television, home video, and theatrical production
and distribution company. The Company owns the world's largest
library of modern films, comprising approximately 4,000 titles,
and over 10,400 episodes of television programming. MGM is owned
by an investor consortium, comprised of Providence Equity
Partners, TPG Capital, Sony Corporation of America, Comcast
Corporation, DLJ Merchant Banking Partners and Quadrangle Group.
As reported by the Troubled Company Reporter on Sept. 30, 2009,
The New York Post, citing multiple sources, said discussions
between debtholders and equity owners on a restructuring of Metro-
Goldwyn-Mayer's massive debt load have begun on a contentious
note, with both sides threatening to force MGM into bankruptcy in
order to gain leverage and extract better terms from the other.
Bloomberg also said that MGM is in talks to skip interest payments
and restructure $3.7 billion in bank loans. MGM asked creditors
to waive $12 million monthly interest payments until Feb. 15,
2010.
MID-STATES EXPRESS: PBGC Assumes 3 Underfunded Pension Plans
------------------------------------------------------------
The Pension Benefit Guaranty Corporation assumed responsibility
for three underfunded pension plans covering more than 675 workers
and retirees of Mid-States Express, Inc., a defunct trucking
carrier based in Aurora, Ill.
The PBGC stepped in because the plans failed to meet minimum
funding requirements and faced abandonment because the company, in
bankruptcy since March 27, 2009, has ceased operations and is
liquidating its assets under the direction of a chapter 7
bankruptcy trustee. Retirees in the three pension plans will
continue to receive their monthly benefit checks without
interruption, and other workers will receive their pensions when
they are eligible to retire.
The three pension plans are 78% funded, with aggregate assets of
$13.9 million to cover $17.9 million in benefit liabilities,
according to PBGC estimates. The agency expects to be responsible
for the about $3.4 million of the plans' $4 million shortfall.
The PBGC will take over the assets and use insurance funds to pay
guaranteed benefits earned under the plans. The PBGC assumed
trusteeship of the plans on December 22, 2009.
The Mid-States Express Employees' Pension Pension Plan and Trust
ended as of December 31, 2008. Under federal pension law, the
maximum guaranteed pension at age 65 for participants in plans
that terminate in 2008 is $51,750 per year. The Valley Cartage
Inc. Employees' Pension Plan and Trust, and the National Transport
Express Inc. Employees' Pension Plan and Trust ended as of
March 27, 2009. The federal maximum guaranteed pension for 65-
year-olds in plans that ended in 2009 is $54,000 per year. The
maximum guaranteed amount is lower for those who retire earlier or
elect survivor benefits. In addition, certain early retirement
subsidies and benefit increases made within the past five years
may not be fully guaranteed.
Within the next several weeks, the PBGC will send notification
letters to all participants in the three plans.
Retirees of Midstates Express Inc. who draw a benefit from the
PBGC may be eligible for the federal Health Coverage Tax Credit.
Further information may be found on the PBGC Web site at
http://www.pbgc.gov/workers-retirees/benefits-
information/content/page13692.html
Assumption of the plans' unfunded liabilities will have no
significant effect on the PBGC's financial statements because an
estimate of the claim was previously included in the agency's
fiscal year 2009 financial statements, in accordance with
generally accepted accounting principles.
PBGC is a federal corporation created under the Employee
Retirement Income Security Act of 1974. It currently guarantees
payment of basic pension benefits earned by 44 million American
workers and retirees participating in over 29,000 private-sector
defined benefit pension plans. The agency receives no funds from
general tax revenues. Operations are financed largely by
insurance premiums paid by companies that sponsor pension plans
and by investment returns.
MMFX INTERNATIONAL: Files Voluntary Relief Under Chapter 11
-----------------------------------------------------------
MMFX International Holdings, Inc. and MMFX Canadian Holdings, Inc.
filed voluntary petitions for relief under chapter 11 of the
United States Bankruptcy Code on January 5, 2010. The Board of
Directors of the MMFX Holding Companies has determined that
chapter 11 reorganization is in the best interest of the MMFX
Holding Companies and their subsidiaries, as well as all of their
stakeholders.
MMFX International Holdings, Inc. is the parent company of MMFX
Canadian Holdings, Inc. MMFX Canadian Holdings has three wholly-
owned subsidiaries, ST Welland Real Estate Inc., ST Equipment
Inc., and MMFX Steel of Canada, Inc. The Canadian Subsidiaries
have also filed for creditor protection under the Companies'
Creditors Arrangement Act in Canada. The Canadian Subsidiaries
intend to conduct business as usual while in the reorganization
process.
MMFX Technologies Corporation, the parent company, and its other
subsidiaries, MMFX Steel Corporation of America, MMFX Steel DMCC,
and Fasteel Corporation have not filed bankruptcy and intend to
maintain normal business operations.
Due to the global financial crisis, which is most severe in the
real estate and construction sectors, new construction of high-
rise buildings has decreased dramatically. The absence of new
construction projects directly affects the demand for steel. This
led to a decline of more than 50% in the market price of steel in
some markets, directly affecting the operations of the Canadian
Subsidiaries.
Faced with the worst steel market in history and unsuccessful
attempts to renegotiate terms of the secured debt with their
senior secured lender, the MMFX Holding Companies and Canadian
Subsidiaries have sought protection under U.S. and Canadian
bankruptcy laws with the intent of protecting all stakeholders of
the company and to utilize the company's assets for a successful
reorganization.
The MMFX Holding Companies and Canadian Subsidiaries intend to
keep their bankruptcies as brief as possible, and to utilize this
opportunity to emerge as stronger companies for the benefit of
customers, suppliers, creditors, stockholders, and employees.
ABOUT MMFX
MMFX Technologies Corporation, headquartered in Irvine,
California, is a materials science company that continues to
invent and patent world-changing breakthroughs in materials
sciences. The current focus for our technology is uncoated steel
that has a microstructure fundamentally different from
conventional steel; in fact, this pioneering technology has
produced steel unlike any steel material ever introduced to the
marketplace -- five times as corrosion-resistant and up to three
times as strong as conventional steel.
MOHAMMAD KHAN: Case Summary & 20 Largest Unsec. Creditors
---------------------------------------------------------
Joint Debtors: Mohammad Akram Khan
Mukhtar Jan
6116 N. 85th Dr.
Glendale, AZ 85305-2567
Bankruptcy Case No.: 10-00367
Chapter 11 Petition Date: January 5, 2010
Court: United States Bankruptcy Court
District of Arizona (Phoenix)
Debtors' Counsel: Stanford E. Lerch, Esq.
Lerch & Deprima Plc
4000 N Scottsdale Rd Ste 107
Scottsdale, AZ 85251
Tel: (480) 212-0700
Fax: (480) 212-0705
Email: slerch@ldlawaz.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Debtors did not file a list of their 20 largest unsecured
creditors when they filed their petition.
The petition was signed by the Joint Debtors.
NEENAH FOUNDRY: Inks Extension of Forbearance Pact With BofA
------------------------------------------------------------
As previously reported in the Troubled Company Reporter on
November 10, 2009, Neenah Foundry Company and certain of its
subsidiaries entered into an Amendment No. 2 to Amended and
Restated Loan and Security Agreement and Forbearance Agreement
with Bank of America, N.A., as administrative agent and as a
lender, and the other lenders party thereto, with respect to the
Amended and Restated Loan and Security Agreement, dated as of
December 29, 2006, among the Borrowers and the Lenders from time
to time party thereto.
Pursuant to the Forbearance Agreement, the Lenders agreed to,
among other things, forbear from exercising certain of the
Lenders' rights and remedies in respect of or arising out of
certain specified defaults.
Effective as of December 23, 2009, the Borrowers entered into a
Forbearance Extension with the Lenders, pursuant to which the
Lenders agreed to, among other things, waive certain additional
specified defaults and extend the expiration date of the
Forbearance Agreement to January 15, 2010.
In addition, pursuant to the terms of the Forbearance Extension,
the Borrowers agreed to (i) continue to use certain efforts during
the term of the Forbearance Extension to pursue a restructuring of
certain of the Company's outstanding indebtedness and (ii) a
minimum EBITDA threshold for the one-month period ending
December 31, 2009. The Borrowers also paid an extension fee of
$50,000 pursuant to the Forbearance Extension.
In a regulatory filing dated December 29, 2009, Neenah
Enterprises, Inc. and Neenah Foundry Company disclosed that
management of the Company has expended considerable time and
effort engaging in discussions with its lenders to extend the
effective period of the Forbearance Agreement and evaluating
various strategic and restructuring alternatives.
As a result of these activities, the Company will not be able to
complete the review and audit in order to file NEI and Neenah
Foundry Company's combined Annual Report on Form 10-K for the
fiscal year ended September 30, 2009, within the prescribed time
period without unreasonable effort and expense. The Company
intends to file the combined Annual Report on Form 10-K on or
before the 15th calendar day following the prescribed due date.
The Company believes that the report of Ernst & Young, LLP on the
Company's consolidated financial statements for the fiscal year
ended September 30, 2009, is likely to include an explanatory
paragraph indicating substantial doubt about the Company's ability
to continue as a going concern.
About Neenah Enterprises & Neenah Foundry
Headquartered in Neenah, Wisconsin, Neenah Enterprises, Inc. --
http://www.nfco.com/-- is the indirect parent holding company of
Neenah Foundry Company. Neenah Foundry Company and its
subsidiaries manufacture and market a wide range of iron castings
and steel forgings for the heavy municipal market and selected
segments of the industrial markets. Neenah is one of the largest
independent foundry companies in the United States, with
substantial market share in the municipal and various industrial
markets for gray and ductile iron castings and forged steel
products.
At June 30, 2009, Neenah Enterprises, Inc. had $299.7 million in
total assets and $419.0 million in total liabilities, resulting in
a $119.3 million shareholders' deficit.
At June 30, 2009, Neenah Foundry Company had $299.7 million in
total assets and $419.3 million in total liabilities, resulting in
a $119.6 million stockholders' deficit.
* * *
On July 1, 2009, the Company entered into an agreement with
Tontine Capital Partners, L.P., the holder of all of Neenah's 12-
1/2% Senior Subordinated Notes due 2013, to allow the Company to
defer the entire semi-annual interest payment (representing a
deferral of an interest payment of roughly $4.7 million and
interest on the previously deferred interest payment of $200,000)
due on July 1, 2009.
NEILS JENSEN: Sec. 341 Creditors Meeting Set for Feb. 11
--------------------------------------------------------
The U.S. Trustee for Region 18 will convene a meeting of Neils P.
Jensen's creditors on February 11 2010, at 10:00 a.m. at U.S.
Trustee's Office, Room 1900, 405 E 8th Avenue, Eugene, OR 97401.
This is the first meeting of creditors required under Section
341(a) of the U.S. Bankruptcy Code in all bankruptcy cases.
All creditors are invited, but not required, to attend. This
Meeting of Creditors offers the one opportunity in a bankruptcy
proceeding for creditors to question a responsible office of the
Debtor under oath about the company's financial affairs and
operations that would be of interest to the general body of
creditors.
Jefferson, Oregon-based Neils P. Jensen -- dba Neils Jensen Farms,
Inc., and Neils & Irma Jensen Joint Rev. Trust -- and Irma L.
Jensen, dba Irma Jensen, LLC, and Neils & Irma Jensen Joint Rev.
Trust, filed for Chapter 11 bankruptcy protection on December 29,
2009 (Bankr. Ore. Case No. 09-67057). John D. Albert, Esq., who
has an office in Salem, Oregon, assists the Company in its
restructuring effort. The Company has assets of $13,477,157,
and total debts of $10,623,874.
NEIMAN MARCUS: Bank Debt Trades at 7% Off in Secondary Market
-------------------------------------------------------------
Participations in a syndicated loan under which Neiman Marcus
Group, Inc., is a borrower traded in the secondary market at 92.68
cents-on-the-dollar during the week ended Friday, Jan. 8, 2010,
according to data compiled by Loan Pricing Corp. and reported in
The Wall Street Journal. This represents increase of 2.36
percentage points from the previous week, The Journal reports.
The loan matures on April 6, 2013. The Company pays 200 basis
points above LIBOR to borrow under the facility. The bank debt
carries Moody's B3 rating and Standard & Poor's BB- rating. The
debt is one of the biggest gainers and losers among 160 widely
quoted syndicated loans with five or more bids in secondary
trading for the week ended Jan. 8, 2010.
Neiman Marcus Group, Inc., headquartered in Dallas, Texas,
operates 40 Neiman Marcus stores, 2 Bergdorf Goodman stores, 27
clearance centers, and a direct business. Total revenues are
about $3.9 billion.
The Company carries a 'Caa1' Corporate Family Rating and 'Caa1'
Probability of Default Rating from Moody's Investors Service.
NELSON GUERRA: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------
Joint Debtors: Nelson Guerra
Veronica Guerra
2117 Chris Roark Pl.
El Paso, TX 79936
Bankruptcy Case No.: 09-32888
Chapter 11 Petition Date: December 31, 2009
Court: United States Bankruptcy Court
Western District of Texas (El Paso)
Debtors' Counsel: Sidney J. Diamond, Esq.
3800 N Mesa C-4
El Paso, TX 79902
Tel: (915) 532-3327
Fax : (915) 532-3355
Email: usbc@sidneydiamond.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A full-text copy of the Debtors' petition, including a list of
their 20 largest unsecured creditors, is available for free at:
http://bankrupt.com/misc/txwb09-32888.pdf
The petition was signed by the Joint Debtors.
NEWCOURT INC: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: Newcourt, Inc.
PO Box 5040
Texarkana, TX 75505-5040
Bankruptcy Case No.: 09-50315
Chapter 11 Petition Date: December 31, 2009
Court: United States Bankruptcy Court
Eastern District of Texas (Texarkana)
Judge: Brenda T. Rhoades
Debtor's Counsel: Bill F. Payne, Esq.
100 North Main Street
Paris, TX 75460-4222
Tel: (903) 784-4393 ext. 40
Email: lgarner@moorefirm.com
Estimated Assets: $
Estimated Debts: $1,000,001 to $10,000,000
According to the schedules, the Company has assets of $9,769,139
and total debts of $5,787,541.
A full-text copy of the Debtor's petition, including a list of its
20 largest unsecured creditors, is available for free at:
http://bankrupt.com/misc/txeb09-50315.pdf
The petition was signed by Calvin Court, president of the Company.
NEW HAVEN HEALTH: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: New Haven Health Care, Inc.
dba West Rock Health Care Facility
34 Level Street
New Haven, CT 06515
Bankruptcy Case No.: 09-33678
Chapter 11 Petition Date: December 31, 2009
Court: United States Bankruptcy Court
District of Connecticut (New Haven)
Debtor's Counsel: Elizabeth J. Austin, Esq.
Pullman and Comley
850 Main Street
P.O. Box 7006
Bridgeport, CT 06601-7006
Tel: (203) 330-2000
Email: eaustin@pullcom.com
Irve J Goldman, Esq.
Pullman & Comley
850 Main Street
PO Box 7006
Bridgeport, CT 06601
Tel: (203) 330-2000
Fax: (203) 330-2213
Email: igoldman@pullcom.com
Jessica Grossarth, Esq.
Pullman & Comley, LLC
850 Main Street
P.O. Box 7006
Bridgeport, CT 06601-7006
Tel: (203) 330-2215
Fax: (203) 257-0993
Email: jgrossarth@pullcom.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A list of the Company's 20 largest unsecured creditors is
available for free at:
http://bankrupt.com/misc/ctb09-33678.pdf
The petition was signed by Anthony Pinto, vice president of the
company.
NIELSEN COMPANY: Bank Debt Trades at 4% Off in Secondary Market
---------------------------------------------------------------
Participations in a syndicated loan under which The Nielsen
Company B.V. is a borrower traded in the secondary market at 96.31
cents-on-the-dollar during the week ended Friday, Jan. 8, 2010,
according to data compiled by Loan Pricing Corp. and reported in
The Wall Street Journal. This represents increase of 2.19
percentage points from the previous week, The Journal reports.
The Company pays 375 basis points above LIBOR to borrow under the
facility. The bank loan matures on May 1, 2016, and carries
Moody's Ba3 rating and Standard & Poor's B+ rating. The debt is
one of the biggest gainers and losers among 160 widely quoted
syndicated loans with five or more bids in secondary trading for
the week ended Jan. 8, 2010.
Active in approximately 100 countries, with headquarters in
Haarlem, The Netherlands and New York, USA, The Nielsen Company
B.V. is a global information and media company.
Nielsen Company carries a 'B2' long term corporate family rating
from Moody's, 'B' issuer credit rating from standard & Poor's, and
'B' issuer default rating from Fitch.
NILES JENSEN: Taps Albert & Tweet as Bankruptcy Counsel
-------------------------------------------------------
Neils P. Jensen and Irma L. Jensen has sought permission from the
U.S. Bankruptcy Court for the District of Oregon to employ Albert
& Tweet, LLP, as bankruptcy counsel, nunc pro tunc to the Petition
Date.
Albert & Tweet will, among other things:
(a) provide legal advice with respect to the debtors' powers
and duties as debtors-in-possession in the continued
operation of the farm and management of their property;
(b) represent the Debtor in any bankruptcy litigation
arising from motions or adversary proceedings filed by
the creditors or other interested parties;
(c) prepare necessary petitions, schedules, applications,
answers, orders, reports, and other legal papers; and
(d) negotiate and prepare a Chapter 11 Plan.
Albert & Tweet attorneys designated to represent the Debtors will
be paid $195 per hour.
The Debtor assures the Court that Albert & Tweet is
"disinterested" as that term is defined in Section 101(14) of the
Bankruptcy Code.
Jefferson, Oregon-based Neils P. Jensen -- dba Neils Jensen Farms,
Inc., and Neils & Irma Jensen Joint Rev. Trust -- and Irma L.
Jensen, dba Irma Jensen, LLC, and Neils & Irma Jensen Joint Rev.
Trust, filed for Chapter 11 bankruptcy protection on December 29,
2009 (Bankr. Ore. Case No. 09-67057). John D. Albert, Esq., who
has an office in Salem, Oregon, assists the Company in its
restructuring effort. The Company has assets of $13,477,157,
and total debts of $10,623,874.
NORTEL NETWORKS: Auction for VOIP Business on Feb. 25
-----------------------------------------------------
Nortel Networks Inc. and its affiliates obtained orders from the
U.S. Bankruptcy Court for the District of Delaware and the
Ontario Superior Court of Justice, approving the bidding process
for the sale of their Carrier VoIP and Application Solutions
(CVAS) business.
The U.S. and Canadian Courts also approved the form of Nortel's
asset sale agreement with Texas-based GENBAND Inc., whose
$282 million offer will serve as the stalking horse bid or the
lead bid at the sale auction to be conducted on February 25, 2010.
Deadline for interested buyers to submit their bids is
February 23, 2010, subject to permitted extensions.
Both Courts also approved proposed fees, aggregating
$13.6 million, to GENBAND. The fees represent break-up fees,
expense reimbursement and an incentive fee for One Equity
Partners. The Court overruled objections to the fees, agreeing
with Nortel that the payments were needed to "lock in GENBAND's
offer," according to a report by Bloomberg News.
Ernst & Young Inc., the firm appointed to monitor the assets of
Nortel Networks Corp. and its four Canadian affiliates, also sees
the payment of the fees as reasonable and recommended the
approval of the proposed sale to the Canadian Court.
"An expeditious sale of the CVAS business is in the best
interests of [Nortel] and its stakeholders and therefore, the
monitor considers the payment of the incentive fee to [One Equity
Partners III L.P.], along with the potential payment of the
break-up fee and the expense reimbursement to GENBAND as
reasonable," Ernst & Young said in its 34th monitor report.
U.S. Trustee, Committee Question Fee Payment
Prior to the entry of the Courts' rulings, Roberta DeAngelis, the
Acting United States Trustee for Region 3, questioned the
proposed payment of $3.6 million in incentive fee to One Equity
Partners, arguing that the purpose of the incentive fee is the
same as that of the break-up fee and expense reimbursement.
"The breakup fee and expense reimbursement are themselves
designed to encourage a stalking horse arrangement, and thus they
provide an incentive that the incentive fee [proposed for One
Equity Partners] merely duplicates," the U.S. Trustee's attorney,
T. Patrick Tinker, Esq., said in court papers.
The Debtors proposed to pay $3.6 million to One Equity Partners,
a shareholder of GENBAND, to induce its continued participation
in the auction for the CVAS business. They also proposed to pay
GENBAND a $5 million break-up fee and another $5 million as
reimbursement for the bidder's expenses in case it is not
selected as the winning bidder.
GENBAND, the proposed buyer of the CVAS business, teamed with One
Equity Partners for assistance in financing the sale of the
business.
"There does not appear to be any other legal basis for the
payment of the incentive fee. The incentive thus amounts to
$13.6 million, with $3.6 million being better than a breakup fee,
insofar as it is paid regardless of what transpires with the
sale," Mr. Tinker said. "The fees, viewed in combination, are
excessive and do not appear necessary to preserve the value of
the estates."
The payment of fees also drew flak from the Official Committee of
Unsecured Creditors on grounds that it would "chill" rather than
foster a competitive bidding process.
The Creditors Committee proposed, among other things, that the
"buyer protections must be significantly amended to bring them in
line with existing precedents," and the key auction dates must be
changed to provide the maximum time for competitive bids to be
made.
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 the Company's customers. The
Company's next-generation technologies, for both service provider
and enterprise networks, support multimedia and business-critical
applications. Nortel's technologies are designed to help
eliminate the 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)
NORTEL NETWORKS: Ex-Officer Seeks $1-Bil. Suit Protection
---------------------------------------------------------
John Roth, a former chief executive of Nortel Networks, seeks a
$1 billion indemnification from Nortel if he loses a series of
lawsuits filed against him and certain other defendants by former
employees, according to CBC News.
In a creditor claim filed in the U.S. Bankruptcy Court for the
District of Delaware, Mr. Roth seeks a $1 billion insurance to
cover him in case U.S. courts decide he must pay an award to
the former U.S. Nortel employees, the news report noted.
The employee plaintiffs filed the lawsuits four years ago against
Nortel and those at the company who were responsible for managing
the company-sponsored investment plan. One of the Plaintiffs
claimed that the Defendants allegedly helped and encouraged
participants under the plan to invest in Nortel "despite the
unsuitable nature of such an investment" and despite their
familiarity with the company's ailing finances," the news source
related.
Diane Urquhart, an independent financial analyst who is helping
some former Nortel employees, said Mr. Roth is a good target for
the lawsuits because he left the company in 2001 with more than
$130 million in stock options, bonuses and retirement benefits,
according to the CBC News report.
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 the Company's customers. The
Company's next-generation technologies, for both service provider
and enterprise networks, support multimedia and business-critical
applications. Nortel's technologies are designed to help
eliminate the 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)
NORTEL NETWORKS: Wants Plan Exclusivity Until July 13
-----------------------------------------------------
Nortel Networks Inc. and its affiliated debtors seek a five-month
extension of their exclusive deadline for filing a Chapter 11
plan and soliciting votes for that plan.
The Debtors ask the U.S. Bankruptcy Court for the District of
Delaware to extend their Exclusive Plan Filing Deadline through
July 13, 2010, and their Exclusive Plan Solicitation Period
through September 13, 2010.
Andrew Remming, Esq., at Morris Nichols Arsht & Tunnell LLP, in
Wilmington, Delaware, says NNI and its affiliates intend to use
the next five months to continue to operate their business;
further review claims and contracts for assumption or rejection;
and coordinate with concerned groups in furtherance of the
restructuring and the development of a reorganization plan.
"With the sale transactions either complete or well underway, the
focus will now shift to proceeds allocation and the realization
of value from Nortel's intellectual property portfolio," Mr.
Remming says, referring to the series of sales of the Debtors'
major assets in the past few months. "These efforts will occupy
the next several months, at a minimum."
The sale transactions include the $1.2 billion acquisition by
Sweden-based Telefonaktiebolaget LM Ericsson of Nortel's Code
Division Multiple Access or CDMA business and Long Term Evolution
or LTE assets and Global System for Mobile or GSM business; the
$900 million purchase by Avaya Inc. of the Nortel's Enterprise
Solutions business; the $10 million purchase by Hitachi Ltd. of
the Next Generation Packet Core Network Components business; and
the $530 million acquisition by Ciena Corporation of the Nortel's
Metro Ethernet Networks business.
The sale of the GSM and Metro Ethernet Networks businesses is
expected to close in the first quarter of 2010, while the other
transactions were completed sometime in November and December
2009.
Mr. Remming adds that NNI and its affiliates recently sought
Court approval to sell their Carrier VoIP and Application
Solutions or CVAS business to GENBAND Inc. or any potential
buyer. A bidding process for the sale of the business has been
approved by the Bankruptcy Court and the Ontario Superior Court
of Justice. An auction is scheduled for February 25, 2010.
"In light of the accomplishments of [NNI and its affiliated
debtors] thus far in these chapter 11 cases as well as the
extraordinary complexity and breadth of Nortel's global business,
further extension is warranted," Mr. Remming emphasizes.
The Bankruptcy Court will hold a hearing on January 21, 2010, to
consider approval of the proposed extension of the Exclusive
Periods. Deadline for filing objections is January 14, 2010.
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 the Company's customers. The
Company's next-generation technologies, for both service provider
and enterprise networks, support multimedia and business-critical
applications. Nortel's technologies are designed to help
eliminate the 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)
NOVELIS INC: Bank Debt Trades at 7% Off in Secondary Market
-----------------------------------------------------------
Participations in a syndicated loan under which Novelis, Inc., is
a borrower traded in the secondary market at 93.36 cents-on-the-
dollar during the week ended Friday, Jan. 8, 2010, according to
data compiled by Loan Pricing Corp. and reported in The Wall
Street Journal. This represents increase of 2.30 percentage
points from the previous week, The Journal reports. The loan
matures on July 6, 2014. The Company pays 200 basis points above
LIBOR to borrow under the facility. The bank debt is not rated by
Moody's while it carries Standard & Poor's BB- rating. The debt
is one of the biggest gainers and losers among 160 widely quoted
syndicated loans with five or more bids in secondary trading for
the week ended Jan. 8, 2010.
As reported by the Troubled Company Reporter on Nov. 19, 2009,
Moody's changed the outlook for Novelis, Inc., and Novelis
Corporation to stable from negative. The speculative grade
liquidity rating of Novelis, Inc., was also upgraded to SGL-2 from
SGL-3. At the same time, Moody's affirmed Novelis Inc's B2
corporate family rating, its B2 probability of default rating, the
Ba3 rating on its senior secured term loan, and the Caa1 senior
unsecured notes rating. The Ba3 rating on Novelis Corporation's
senior secured term loan was also affirmed.
The change in outlook to stable reflects Moody's expectation that
Novelis will continue to show improvement in its earnings and cash
flow generation given the renegotiation of all of its can sheet
contracts, cost cutting efforts and the run off of virtually all
its hedge loss position. The outlook anticipates that the company
will continue to focus on cash generation and liquidity and that
its performance will continue to benefit from the more robust
conditions in its can sheet business, which accounts for roughly
50% to 60% of sales. Although Moody's does not expect that the
company will meaningfully reduce absolute debt levels over the
next twelve to fifteen months, the outlook reflects Moody's belief
that debt protection coverage ratios will continue to strengthen
as the company returns to a sustainable level of profitability.
Moody's last rating action on Novelis was Aug. 5, 2009, when the
company's senior unsecured ratings were downgraded to Caa1 from
B3.
Headquartered in Atlanta, Georgia, Novelis is the world's largest
producer of aluminum rolled products. For the twelve months ended
Sept. 30, 2009, the company had total shipments of approximately
2,725 kilotonnes and generated $8.2 billion in revenues.
OCEANS CASINOS: Nevada Gold Pursues Purchase of SunCruz Assets
--------------------------------------------------------------
Nevada Gold & Casinos, Inc., continued to pursue the acquisition
of selected SunCruz assets despite the Chapter 7 bankruptcy filing
by SunCruz's parent, Oceans Casino Cruises, Inc. As previously
disclosed, SunCruz Casinos ceased operations of its casino cruises
effective December 15, 2009 and SunCruz owner Oceans Casino
Cruises, Inc. filed a Chapter 7 bankruptcy petition on December
28, 2009.
In November of 2008, Nevada Gold was engaged by Oceans Casino
Cruises, Inc. to provide management services to SunCruz Casinos.
Although its management contract is currently in effect, the
Company is no longer involved in the daily operations of Oceans
Casino Cruises, Inc., and the receipt of any further compensation
by Nevada Gold is uncertain as a result of the bankruptcy filing.
Robert Sturges, CEO of Nevada Gold, stated, "While we understand
that bankruptcies are often a necessary process in a situation
like this, we remain interested in selected assets of Oceans
Casino Cruises, Inc. if an acquisition can be accomplished in a
reasonable time frame."
Any asset purchases are subject to numerous conditions, including
the approval of the bankruptcy court, and there can be no
assurance that the Company will be able to purchase any assets.
OM KB LLC: Voluntary Chapter 11 Case Summary
--------------------------------------------
Debtor: OM KB, LLC
1951 Pleasant Valley Road
Garland, TX 75040
Bankruptcy Case No.: 10-30233
Chapter 11 Petition Date: January 5, 2010
Court: United States Bankruptcy Court
Northern District of Texas (Dallas)
Judge: Barbara J. Houser
Debtor's Counsel: David Samuel Brown, Esq.
David Samuel Brown Law Firm PLLC
6440 N. Central Expressway, Suite 720
Dallas, TX 75206
Tel: (214) 696-3100
Fax (469) 718-7321
Email: dbrown@davidbrownlawoffice.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Debtor did not file a list of its 20 largest unsecured
creditors when it filed its petition.
OPUS EAST: Trustee Wants More Time to Decide on Leases
------------------------------------------------------
Jeoffrey L. Burtch, the Chapter 7 trustee of the Opus East
Debtors, asks the Court to extend the time by which he must cause
to assume or reject the executory contracts and unexpired
property leases of the Opus East Debtors, through and including
April 27, 2010.
The Chapter 7 Trustee also wishes to extend the period by which
any and all documents governing or relating to equity interests
held by any Opus East Debtor or relating to investments by the
Opus East Debtors must be assumed and assigned or rejected.
The Contracts and Leases are held in connection with the
administration, building, servicing or general operations of the
Opus East Debtors' prior businesses, the Chapter 7 Trustee notes.
A list of the Opus East Debtors' Contracts and Leases is
available for free at http://bankrupt.com/misc/OpECons&Leases.pdf
Given the nature of the Debtors' prior businesses, one or more of
the Contracts and Leases may be valuable to prospective
purchasers of the Debtors' remaining assets, or to the continued
administration of the Estates, the Chapter 7 Trustee avers.
Dale Dube, Esq., at Cooch and Taylor P.A., in Wilmington,
Delaware, contends that in light of the potential importance of
the Contracts and Leases to the sale value of the Debtors' prior
businesses or properties, an additional time period in which the
Chapter 7 Trustee must decide whether to assume or reject the
Contracts and Leases is in the best interest of the Debtors'
Estates and is important to preserving potential value of a sale
of the Debtors' assets for the benefit of creditors.
The Chapter 7 Trustee had 60 days from the Petition Date or until
August 29, 2009, from within which to assume or reject a Contract
or Lease. The Court previously extended the deadline for the
Chapter 7 Trustee to assume or reject a Contract or Lease through
December 28, 2009.
About Opus East
Rockville-based Opus East LLC has developed more than 13.3 million
square feet of space since starting operations in 1994. It filed
for Chapter 7 liquidation in the U.S. Bankruptcy Court for the
District of Delaware. Opus East LLC listed $100 million to
$500 million in debts, against $50 million to $100 million in
assets in its Chapter 7 petition.
Bankruptcy Creditors' Service, Inc., publishes Opus West
Bankruptcy News. The newsletter tracks the separate Chapter 11
proceedings of Opus West Corp. and Opus South Corp. and Chapter 7
proceedings of Opus East their related debtor-affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
OPUS SOUTH: Two Debtors Want Case Converted to Chapter 7
--------------------------------------------------------
In separate filings, Opus South Debtors 400 Beach Drive LLC and
Clearwater Bluff LLC ask the United States Bankruptcy Court for
the District of Delaware to convert their Chapter 11 cases into
proceedings under Chapter 7 of the Bankruptcy Code.
Victoria W. Counihan, Esq., at Greenberg Traurig LLP, in
Wilmington, Delaware, reminds the Court that Debtors 400 Beach
Drive and Clearwater Bluff have sold substantially all of their
properties through auctions which did not generate any net
proceeds. Accordingly, both Debtors do not have sufficient funds
to complete a Chapter 11 plan of reorganization.
Against this backdrop, Ms. Counihan says that the Debtors' board
of directors has concluded that the next action to take it to
convert the Chapter 11 cases of 400 Beach Drive and Clearwater
Bluff into proceedings under Chapter 7.
Debtors 400 Beach Drive and Clearwater Bluff are prepared to meet
with the U.S. Trustee and any trustee-designated representative
for a briefing on the status of the Debtors' affairs for the
facilitation of an orderly transition into Chapter 7 as is
practical under the circumstances, according to Ms. Counihan.
The Debtors also intend to prepare reports contemplated under
Rule 1019(5) of the Federal Rules of Bankruptcy Procedure, as
well as additional information that will be helpful to a Chapter
7 trustee in administering their estates.
In addition, the Debtors ask the Court to (i) set a deadline for
all bankruptcy professionals to file their final fee applications
or requests for compensation on or before 30 days from the entry
of an order converting their cases into Chapter 7 proceedings,
and (ii) set a hearing for final approval of the fee
applications.
Once requests of 400 Beach Drive and Clearwater Bluff are granted
by the Court, they will be removed from the jointly-administered
cases under Case No. 09-11390. All pleadings filed with the
Court with respect to the Debtors will be filed on the docket for
the converted bankruptcy cases under Case Nos. 09-11396 and 09-
11392.
About Opus South
Headquartered in Atlanta, Georgia, Opus South Corporation --
http://www.opuscorp.com/-- provides an array of real estate
related services across the United States including real estate
development, architecture & engineering, construction and project
management, property management and financial services.
The Company and its affiliates filed for Chapter 11 on April 22,
2009 (Bankr. D. Del. Lead Case No. 09-11390). Victoria Watson
Counihan, Esq., at Greenberg Traurig, LLP, represents the Debtors
in their restructuring efforts. The Debtors propose to employ
Landis, Rath & Cobb, LLP, as conflicts counsel, Chatham Financial
Corporation as real estate broker, Delaware Claims Agency LLC as
claims agent. The Debtors have assets and debts both ranging from
$50 million to $100 million.
Bankruptcy Creditors' Service, Inc., publishes Opus West
Bankruptcy News. The newsletter tracks the separate Chapter 11
proceedings of Opus West Corp. and Opus South Corp. and their
related debtor-affiliates. (http://bankrupt.com/newsstand/
or 215/945-7000)
OPUS SOUTH: Waters Edge Lenders' Plan Sent for Voting
-----------------------------------------------------
Judge Mary Walrath of the U.S. Bankruptcy Court for the District
of Delaware approved on January 6, 2010, the Disclosure Statement
filed, as amended, by Plan Proponents Wachovia Bank, National
Association, as agent and on its own behalf; Regions Bank; PNC
Bank, National Association; and Bank of America in relation to
the Chapter 11 Plan they filed for Debtor Waters Edge One LLC.
The Plan Proponents are lender parties to the Opus South Debtors.
The Court ruled that the Waters Edge Disclosure Statement
complies with all the aspects of Section 1125 of the Bankruptcy
Code and contains adequate information.
Before the Court entered the Disclosure Statement Order, the Plan
Proponents prepared an amended Chapter 11 Plan of Liquidation and
Disclosure Statement for Water Edge One dated December 31, 2009.
Among others, the Amended Disclosure Statement included:
* The proposed dates with respect to the Voting Deadline, the
Confirmation Objection Deadline and the Confirmation Hearing
Date;
* Clearer language on the treatment of claims in Classes 3 and
4:
-- Specifically, creditors holding claims within Class 3
will only be entitled to receive postpetition interest
on their claims if there are sufficient funds to pay
in full the holders of Claims under Class 2 and Class
3 from the net proceeds of the RMSSR Claims.
-- In addition, Class 3 may be entitled to postpetition
interest if there are monetary recoveries from sources
other than the RMSSR Claims which generate sufficient
funds to pay the holders of the Class 3 Claims in
full.
-- Holders of Class 4 interests will not receive or
retain any property unless the Class 2 and Class 3
Claimants are paid in full all sums due and owing in
respect of their Allowed Claims, plus pre- and
postpetition interest and other charges permitted
under applicable law, from the RMSSR Claims. The
holders of Class 4 Interests may also receive excess
proceeds from other recoveries, excluding the RMSSR
Claims, only after the holders of the Class 3 Claims
have been paid in full, including all postpetition
interest. The Interests will not be cancelled and the
Debtor may not be dissolved until the RMSSR Claims are
resolved or unless the Agent and the Interest holders
consent to an earlier dissolution.
* Provisions on the appointment of an estate representative
pursuant to Section 1123(b)(3) of the Bankruptcy Code to
pursue the RMSSR Claims and Avoidance Actions, and other
claims, and to liquidate the Debtor. It is currently
anticipated that the estate representative will be the newly
formed Liquidation Trust.
* Provisions that the Liquidation Trust will be financed by
an Exit Financing, which may be used to pay in full the DIP
Facility. Under the DIP Loan Agreement, the Lenders have
the sole and exclusive right, but not the obligation, to
provide post-confirmation exit financing in order to
continue pursuing the RMSSR Claims. The DIP Loan Agreement
further provides that the Lenders will 10 days prior to an
Effective Date provide the Liquidation Trust, as borrower
with a good faith written proposal for Lenders to provide
the Post-Confirmation Financing. The Exit Financing will
provide that it will not impose any duty or liability on the
Exit Lenders with respect to the pursuit or other
disposition of the RMSSR Claims, provided that if the Exit
Lenders elect not to continue to finance the prosecution of
the RMSSR Claims following the entry of an order approving
the Exit Financing, they will pay all costs, expenses and
fees which have accrued prior to the election and the
Liquidation Trustee will then be entitled to seek
alternative financing or other arrangements to fund or
prosecute the RMSSR Claims.
Redlined copies of the Amended Waters Edge Plan and Disclosure
Statement are available for free at:
http://bankrupt.com/misc/OpSAmDS.pdf
http://bankrupt.com/misc/OpSAmPlan.pdf
Any objections to the Disclosure Statement that have not been
previously settled or withdrawn are overruled, the Court held.
The Court approved the Plan Proponents' proposed solicitation and
tabulation procedures. The proposed contents of the Solicitation
Package are also approved. At the behest of the Plan Proponents,
Judge Walrath has established:
-- December 30, 2009, as the Voting Record Date;
-- January 7, 2010, as the deadline for the distribution of
the Solicitation Packages; and
-- February 10, 2010, as the Plan Voting Deadline.
In addition, Womble Carlyle Sandridge & Rice PLLC is authorized
by the Court to perform all balloting services.
The proposed form of the Ballots and the proposed Confirmation
Hearing Notice are approved.
For Plan-voting purposes, (a) if any party wishes to have its
claim allowed in a manner that is inconsistent with the Ballot it
received, or (b) if any party that did not receive a Ballot
wishes to have its Claim temporarily allowed for voting purposes
only, that party must serve on the Plan Proponents and file with
the Court, on or before the later of (i) 15 days after service of
the Confirmation Hearing Notice, or (ii) 15 days after the date
of service of notice of objection on the party to any of its
claims, a motion for an order pursuant to Rule 3018(a) of the
Federal Rules of Bankruptcy Procedure temporarily allowing its
claim for purposes of voting.
Judge Walrath will convene a hearing on February 17, 2010, for
timely filed Rule 3018 Motions.
The Confirmation Hearing of the Plan will be on February 17,
2010, at 11:30 a.m. Eastern Standard Time. The Confirmation
Hearing may be continued from time to time with the consent of
the concerned parties. All objections to the confirmation of the
Plan must be filed no later than February l, 2010, at 4:00 p.m.
prevailing Eastern time.
About Opus South
Headquartered in Atlanta, Georgia, Opus South Corporation --
http://www.opuscorp.com/-- provides an array of real estate
related services across the United States including real estate
development, architecture & engineering, construction and project
management, property management and financial services.
The Company and its affiliates filed for Chapter 11 on April 22,
2009 (Bankr. D. Del. Lead Case No. 09-11390). Victoria Watson
Counihan, Esq., at Greenberg Traurig, LLP, represents the Debtors
in their restructuring efforts. The Debtors propose to employ
Landis, Rath & Cobb, LLP, as conflicts counsel, Chatham Financial
Corporation as real estate broker, Delaware Claims Agency LLC as
claims agent. The Debtors have assets and debts both ranging from
$50 million to $100 million.
Bankruptcy Creditors' Service, Inc., publishes Opus West
Bankruptcy News. The newsletter tracks the separate Chapter 11
proceedings of Opus West Corp. and Opus South Corp. and their
related debtor-affiliates. (http://bankrupt.com/newsstand/
or 215/945-7000)
OPUS WEST: Wants Plan Hearing Adjourned to Jan. 27
--------------------------------------------------
Opus West Corp. and its units ask the Bankruptcy Court to reset
the confirmation hearing with respect to the Chapter 11 Plan of
Liquidation of their Chapter 11 plan of liquidation through
January 27, 2010, and extend the voting deadline through
January 20, 2010.
The Court previously scheduled a combined hearing to consider
final approval of Opus West's Disclosure Statement and
confirmation of the Opus West Plan on January 6, 2010.
The Voting Deadline was also previously set for January 4, 2010.
Because of the holidays, the Opus West Debtors believe that
creditors and other parties-in-interest would benefit from
additional time to consider the Plan and cast a ballot on it.
The Opus West Debtors, however, note that the Final Disclosure
Statement hearing currently set for January 6, 2010, will go on
as scheduled. They ask the Court that the request be heard on an
expedited basis on the same date.
Opus West Corporation and its debtor affiliates delivered to the
Court their original Chapter 11 Plan of Liquidation and
Disclosure Statement on November 25, 2009, and subsequently
amended it on December 2, 2009.
The Chapter 11 Plan
Opus West Corporation and its debtor affiliates presented to the
U.S. Bankruptcy Court for the Northern District of Texas a joint
Chapter 11 plan of liquidation and an accompanying disclosure
statement on November 25, 2009.
The Opus West Plan contemplates the liquidation of the Debtors
and the resolution of certain claims through a series of
mechanisms, in order to provide a distribution to holders of
general unsecured claims.
Upon the occurrence of the Plan Effective Date, the Plan and all
remaining property of each Debtor's Estate will be managed under
the direction of a Surviving Officer, in consultation with an
Oversight Committee.
Holders of secured claims will recover 100 cents on the dollar.
Holders of priority non-tax claims are expected to recover 90% of
their claims. General unsecured claimants, owed a total of
$885,996,580, will recover a pro rata share of remaining assets.
About Opus West Corporation
Based in Phoenix, Arizona, Opus West Corporation is a full-service
real estate development firm that focuses on acquiring,
constructing, operating, managing, leasing and/or disposing of
real estate development projects primarily located in the western
United States.
Opus West and its affiliates filed for Chapter 11 on July 6, 2009
(Bankr. N.D. Tex. Case No. 09-34356). Clifton R. Jessup, Jr., at
Greenberg Traurig, LLP, represents the Debtors in their
restructuring efforts. Franklin Skierski Lovall Hayward, LLP, is
co-counsel to the Debtors. Pronske & Patel, P.C., is conflicts
counsel. Chatham Financial Corp. is financial advisor. BMC Group
is the Company's claims and notice agent. As of May 31, Opus West
-- together with its non-debtor affiliates -- had $1,275,334,000
in assets against $1,462,328,000 in debts. In its bankruptcy
petition, Opus West said it had assets and debts both ranging from
$100 million to $500 million.
Opus West joins affiliates that previously filed for bankruptcy.
Opus East LLC, a real estate operator from Rockville, Maryland,
commenced a Chapter 7 liquidation on July 1 in Delaware. Opus
South Corp., a Florida condominium developer based in Atlanta,
filed a Chapter 11 petition April 22 in Delaware.
Bankruptcy Creditors' Service, Inc., publishes Opus West
Bankruptcy News. The newsletter tracks the separate Chapter 11
proceedings of Opus West Corp. and Opus South Corp. and their
related debtor-affiliates. (http://bankrupt.com/newsstand/
or 215/945-7000)
OSI RESTAURANT: Bank Debt Trades at 15% Off in Secondary Market
---------------------------------------------------------------
Participations in a syndicated loan under which OSI Restaurant
Partners, Inc., is a borrower traded in the secondary market at
84.83 cents-on-the-dollar during the week ended Friday, Jan. 8,
2010, according to data compiled by Loan Pricing Corp. and
reported in The Wall Street Journal. This represents increase of
3.40 percentage points from the previous week, The Journal
reports. The loan matures May 9, 2014. The Company pays 225
basis points above LIBOR to borrow under the facility. The bank
debt carries Moody's B3 rating and Standard & Poor's B+ rating.
The debt is one of the biggest gainers and losers among 160 widely
quoted syndicated loans with five or more bids in secondary
trading for the week ended Jan. 8, 2010.
OSI Restaurant Partners, Inc., is the #3 operator of casual-dining
spots (behind Darden Restaurants and Brinker International), with
more than 1,400 locations in the U.S. and 20 other countries. Its
flagship Outback Steakhouse chain boasts more than 950 locations
that serve steak, chicken, and seafood in Australian-themed
surroundings. OSI also operates the Carrabba's Italian Grill
chain, with about 240 locations. Other concepts include Bonefish
Grill, Fleming's Prime Steakhouse, and Cheeseburger In Paradise.
Most of the restaurants are company owned. A group led by
chairman Chris Sullivan took the company private in 2007.
As reported by the Troubled Company Reporter on Feb. 24, 2009,
Moody's Investors Service downgraded OSI Restaurant's Probability
of Default rating to Ca from Caa1 and lowered the rating on its
$550 million 10% senior unsecured notes to C from Caa3. Moody's
also placed OSI's Corporate Family and senior secured ratings on
review for possible downgrade.
The review was prompted by the recent announcement that OSI
continues to experience a substantial decline in earnings and
store traffic to levels worse than Moody's previously expected.
The company also announced that it will likely need to take an
impairment charge of between $480 and $540 million for goodwill
due to a reduction in its projected results for future periods as
a result of poor overall economic conditions.
PAETEC HOLDING: Moody's Assigns 'B1' Rating on $275 Mil. Notes
--------------------------------------------------------------
Moody's Investors Service assigned a B1 rating to PAETEC Holding
Corp.'s proposed $275 million (gross proceeds) senior secured note
issuance. The company will use the net proceeds from the note
issuance primarily to repay outstandings on term and revolving
loans under its existing senior secured credit facilities. As
part of the rating action, Moody's has affirmed all other ratings,
including the SGL-1 liquidity rating. The rating outlook remains
stable. Moody's will withdraw ratings on the Senior Secured Term
Loan once it is repaid.
Assignments:
Issuer: PAETEC Holding Corp.
-- Senior Secured Regular Bond/Debenture, Assigned B1, LGD3 --
34%
PAETEC's B2 corporate family rating and stable rating outlook
reflect PAETEC's high leverage for its rating category and modest
free cash flow. In addition, the rating reflects Moody's view
that the operating environment for CLECs will continue to be
difficult. Moody's expects the company's revenues to stabilize
after declining over the past 12 months as the economy recovers,
although concerns remain that the pace of the recovery and
relative softness in the acquired McLeodUSA Incorporated (McLeod)
properties will challenge the Company's ability to grow revenues
over the next 12-18 months. The ratings are supported by PAETEC's
operating scale as one of the largest CLECs operating in the US,
and the potential for the Company to drive its cost structure
lower and provide a platform for greater product diversity by
utilizing its long-haul and metro fiber assets.
PAETEC's SGL-1 rating continues to reflect Moody's view that it
should maintain very good liquidity over the coming 12 months,
notwithstanding the company's announced $25 million stock buyback
program through December 31, 2010. Moody's believes the company
ended 2009 with about $140 million in cash, and expects Paetec to
have full access to its $50 million revolver, as the company
expects to pay off the outstanding balance of the revolver in full
with the proceeds of the new debt issuance.
Moody's most recent rating action on Paetec was on June 16, 2009,
when Moody's assigned a B1 rating to the Company $350 million note
issuance.
PAETEC is a CLEC headquartered in Fairport, NY. The Company
generated nearly $1.6 billion in revenues in 2008.
PAETEC HOLDING: S&P Affirms 'B' Rating on $275 Mil. Senior Notes
----------------------------------------------------------------
Standard & Poor's Ratings Services said it affirmed its 'B' issue-
level rating on Fairport, New York-based competitive local
exchange carrier PAETEC Holding Corp.'s upsized $275 million of
senior secured notes due 2017 to be issued under rule 144A with
registration rights. The recovery rating on the notes is '3',
indicating expectations for meaningful (50% to 70%) recovery in
the event of payment default. Proceeds will be used to
permanently retire the existing senior secured term loan.
Additionally, a portion of proceeds will be used to repay
remaining amounts outstanding under the revolving credit as well
as related fees and expenses.
At the same time, S&P affirmed all other ratings on PAETEC,
including the 'B' corporate credit rating. The outlook is stable.
Total debt outstanding as of Sept. 30, 2009, was about
$928 million.
"The upsized notes will add a degree of financial flexibility by
extending maturities," said Standard & Poor's credit analyst Allyn
Arden, "but business prospects over the next year are still
somewhat uncertain given market conditions."
PALMA CEIA: Voluntary Chapter 11 Case Summary
---------------------------------------------
Debtor: Palma Ceia Apartments, LLC
6464 54th Avenue North
St. Petersburg, FL 34116
Bankruptcy Case No.: 10-00166
Chapter 11 Petition Date: January 6, 2010
Court: United States Bankruptcy Court
Middle District of Florida (Tampa)
Judge: K. Rodney May
Debtor's Counsel: Scott A. Stichter, Esq.
Stichter, Riedel, Blain & Prosser
110 E. Madison Street, Suite 200
Tampa, FL 33602-4700
Tel: (813) 229-0144
Fax: (813) 229-1811
Email: sstichter.ecf@srbp.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The petition was signed by Ronald L. Glas.
PARROTT BROADCASTING: Case Summary & 20 Largest Unsec. Creditors
----------------------------------------------------------------
Debtor: Parrott Broadcasting Limited Partnership
dba Radio Stations KIPA, KHWI and KHBC
P.O. BOX 11
HAGERMAN, ID 83332
Bankruptcy Case No.: 10-40017
Chapter 11 Petition Date: January 7, 2010
Court: United States Bankruptcy Court
District of Idaho [LIVE] (Twin Falls)
Judge: Jim D. Pappas
Debtor's Counsel: Brent T. Robinson, Esq.
POB 396
Rupert, ID 83350
Tel: (208) 436-4717
Email: btr@idlawfirm.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A full-text copy of the Debtor's petition, including a list of its
20 largest unsecured creditors, is available for free at:
http://bankrupt.com/misc/idb10-40017.pdf
The petition was signed by Scott D. Parker, general partner of the
Company.
PENN TRAFFIC: Seeks to Sell Assets to Tops Markets
--------------------------------------------------
Penn Traffic filed a motion in federal bankruptcy court to approve
a sale of the Company's assets to Tops Markets. The motion is
subject to court approval and any higher and better offers. The
following is a joint statement of the United Food and Commercial
Workers International Union, UFCW Local 1, UFCW Local 23, and UFCW
Local 1776, which collectively represent approximately 4,800 Penn
Traffic employees:
"Today represents a significant milestone in the renewal of a
company with deep roots in New York and Pennsylvania. Consumers,
political leaders, and grocery workers came together to produce an
agreement that will benefit the entire community. The proposed
sale would preserve thousands of good jobs and keep open dozens of
stores in our neighborhoods. UFCW members have a long-standing
relationship with Tops Market, and we look forward to serving as
partners in this chapter of the company's growth."
Meanwhile, the Post-Standard reports that Price Chopper wants to
buy the Penn Traffic Co. shells which will be gutted and rebranded
over a period of several months. Price Chopper is not
guaranteeing any of the company employees at its 22 stores,
including in Central York, will be hired.
About Penn Traffic
Syracuse, New York-based The Penn Traffic Company -- dba P&C
Foods, Bi-Lo Foods, and Quality Markets -- operates supermarkets
in Pennsylvania, upstate New York, Vermont, and New Hampshire
under the Bilo, P&C and Quality trade names. The Company filed
for Chapter 11 bankruptcy protection on November 18, 2009 (Bankr.
D. Delaware Case No. 09-14078). Ann C. Cordo, Esq., and Gregory
W. Werkheiser, Esq., at Morris, Nichols, Arsht & Tunnell assist
the Company in its restructuring effort. Donlin Recano is the
Company's claims agent. The Company listed $150,347,730 in assets
and $136,874,394 in liabilities as of May 4, 2009.
These affiliates also filed separate Chapter 11 petition: Sunrise
Properties, Inc.; Pennway Express, Inc.; Penny Curtiss Baking
Company, Inc.; Big M Supermarkets, Inc.; Commander Foods Inc.; P
and C Food Markets, Inc. of Vermont; and P.T. Development, LLC.
PERF-GO GREEN: September 30 Balance Sheet Upside-Down by $7.7 MM
----------------------------------------------------------------
Perf-Go Green Holdings, Inc.'s consolidated balance sheets at
September3 0, 2009, showed total assets of $3,201,412 and, total
liabilities of $10,898,791, resulting in a stockholders' deficit
of $7,697,379.
The Company's consolidated balance sheets at September 30, 2009,
also showed strained liquidity with $1,971,375 in total current
assets available to pay $9,423,120 in total current liabilities.
The Company reported net income of $6,776,494 on sales of $346,827
for the three months ended September 30, 2009, compared with net
income of $5,717,000 on sales of $425,000 for the same period of
2008.
Results for the three-month periods ended September 30, 2009, and
2008, included other income of $8,711,815 and $10,564,000,
respectively, related to the decrease in the fair value of the
Company's derivative liabilities. The decrease in value primarily
resulted from the decrease in the Company's stock prices during
the three-month period ended September 30, 2009, and 2008.
The Company reported sales of $890,137 and net income of
$4,161,304 for the nine months ended September 30, 2009, compared
to sales of $426,000 and a net loss of $27,134,000 for the
corresponding period of 2008.
Operating loss was $4,055,198 for the six months ended
September 30, 2009, compared to an operating loss of $14,873,000
during the same period last year.
A full-text copy of the Company's quarterly report is available at
not charge at http://researcharchives.com/t/s?4d29
Going Concern Doubt
The Company reported an operating loss of $4,055,198 and used net
cash of $975,592 in operating activities for the six month period
ended September 30, 2009. The Company also has a working capital
deficit of $7,451,745 and a stockholders' deficit of $7,697,379 as
of September 30, 2009. The Company's net income for this period
reflects the non-cash change in the unrealized gain related to
derivative liabilities of $9,961,831.
Further, losses from operations are continuing subsequent to
September 30, 2009, and the Company anticipates that it will
continue to generate significant losses from operations for the
near future. The Company believes its current available cash
along with anticipated revenues may be insufficient to meet its
cash needs for the near future.
"These conditions raise substantial doubt about the Company's
ability to continue as a going concern."
About Perf Go Green
Base in New York, N.Y., Perf Go Green Holdings, Inc. (OTC BB:
PGOGE) -- http://www.perfgogreen.com/-- operates as a
biodegradable plastics company in the United States and Canada.
The Company focuses on the development and marketing of an eco-
friendly, non-toxic, food contact compliant, biodegradable plastic
products, and other everyday green products for families,
individuals, children, and pets.
PHELPS HARMON: Voluntary Chapter 11 Case Summary
------------------------------------------------
Debtor: Phelps John Murphy Harmon
aka P.J. Murphey Harmon
aka Murphey Harmon
1305 S Blvd
Houston, TX 77006
Bankruptcy Case No.: 10-30193
Chapter 11 Petition Date: January 5, 2010
Court: United States Bankruptcy Court
Southern District of Texas (Houston)
Judge: Wesley W. Steen
Debtor's Counsel: Pete W. Weston, Esq.
Weston and Associates PLLC
5001 Bissonnet, Ste 200
Bellaire, TX 77401
Tel: (713) 623-4242
Fax: (713) 623-2042
Email: mail@westonlegal.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Debtor did not file a list of its 20 largest unsecured
creditors when it filed its petition.
The petition was signed by Mr. Harmon.
PHILADELPHIA NEWSPAPERS: Lenders Fight to Keep Delivery Contracts
-----------------------------------------------------------------
Law360 reports that secured lenders for Philadelphia Newspapers
LLC have asked a judge to reconsider allowing the newspaper
company to break off contracts with third-party distributors,
contending that the move may constitute poor business judgment and
could actually hurt the company's bottom line.
Philadelphia Newspapers -- http://www.philly.com/-- owns and
operates numerous print and online publications in the
Philadelphia market, including the Philadelphia Inquirer, the
Philadelphia Daily News, several community newspapers, the
region's number one local Web site, philly.com, and a number of
related online products. The Company's flagship publications are
the Inquirer, the third oldest newspaper in the country and the
winner of numerous Pulitzer Prizes and other journalistic
recognitions, and the Daily News.
Philadelphia Newspapers and its debtor-affiliates filed for
Chapter 11 bankruptcy protection on February 22, 2008 (Bankr. E.D.
Pa. Case No. 09-11204). Proskauer Rose LLP is the Debtors'
bankruptcy counsel, while Lawrence G. McMichael, Esq., at Dilworth
Paxson LLP is the local counsel. The Debtors' financial advisor
is Jefferies & Company Inc. The Garden City Group, Inc., serves
as claims and notice agent. Philadelphia Newspapers listed assets
and debts of $100 million to $500 million in its bankruptcy
petition.
PINNACLE FOODS: Bank Debt Trades at 5% Off in Secondary Market
--------------------------------------------------------------
Participations in a syndicated loan under which Pinnacle Foods is
a borrower traded in the secondary market at 94.89 cents-on-the-
dollar during the week ended Friday, Jan. 8, 2010, according to
data compiled by Loan Pricing Corp. and reported in The Wall
Street Journal. This represents increase of 2.06 percentage
points from the previous week, The Journal reports. The Company
pays 275 basis points above LIBOR to borrow under the facility.
The bank loan matures on April 2, 2014, and carries Moody's B2
rating and Standard & Poor's B rating. The debt is one of the
biggest gainers and losers among 160 widely quoted syndicated
loans with five or more bids in secondary trading for the week
ended Jan. 8, 2010.
On Nov. 24, 2009, the Troubled Company Reporter said that Standard
& Poor's placed its rating on Pinnacle Foods Group LLC, including
its 'B-' corporate credit rating, on CreditWatch with positive
implications. "We placed the ratings on CreditWatch positive when
Pinnacle Foods announced an agreement to acquire Birds Eye Foods,
Inc., in a transaction valued at $1.3 billion," said Standard &
Poor's credit analyst Christopher Johnson. "We believe that the
acquisition will likely be leverage neutral." S&P estimates that
pro forma debt to EBITDA, excluding any EBITDA synergies, would be
about 7.8x compared with a ratio of about 7.7x for the 12 months
ended Sept. 30, 2009, and that potential synergies from the
combination could result in reduced leverage following the close
of the transaction.
Based in Mt. Lakes, N.J., Pinnacle Foods Group LLC manufactures,
markets and distributes branded food products. It was formerly
referred as Pinnacle Foods Group, Inc., prior to April 2, 2007.
PLY GEM: Moody's Upgrades Corporate Family Rating to 'Caa1'
-----------------------------------------------------------
Moody's Investors Service upgraded Ply Gem Industries, Inc.'s
Corporate Family Rating to Caa1 from Caa2 and its Probability of
Default Rating to Caa1 from Caa2 and affirmed the senior secured
notes due 2013 at Caa1. In a related rating action Moody's
assigned a Caa3 rating to the proposed senior subordinated notes
due 2014 and upgraded the existing 9.0% senior subordinated notes
due 2012 to Caa3 from Ca. The outlook is changed to stable from
negative.
The upgrade of Ply Gem's corporate family rating results from the
recent announcement that CI Capital Partners LLC, Ply Gem's
indirect principal shareholder, through a series of transactions
is transferring approximately $257.3 million of 9.0% senior
subordinated notes due 2012 that it owns to Ply Gem for no
consideration as a capital contribution. Ply Gem is also
refinancing the balance of the 9.0% senior subordinated notes due
2012 with new senior subordinated notes due 2014. Despite the
reduction in approximately $250 million of balance sheet debt Ply
Gem remains highly leveraged. On a pro form basis through
October 3, 2009, debt leverage is reduced to about 9.0 times
versus 11.2 times, while (EBITDA - CAPEX)/interest expense will
stay around 0.6 times (all ratios adjusted per Moody's
methodology). Interest savings associated with the debt transfer
should more than offset the anticipated higher interest rate for
the proposed senior subordinated notes.
Ply Gem's corporate family rating is constrained by the company's
weak end markets, uncertainty surrounding near-term pricing power,
anticipated weak free cash flow generation, and potential limited
availability under the revolving credit facility. New residential
construction and repair and remodeling sectors, the company's
primary end markets, are expected to remain challenging throughout
2010. The demand in the new residential construction market is
still weak and is, to some extent, dependent on tax incentive
programs for buyers sponsored by the federal government. Economic
uncertainties and inability by home owners to finance major
upgrades due to credit constraints will continue to tamper the
repair and remodeling sector. In addition, Ply Gem may be unable
to immediately pass higher raw material costs for commodities such
as oil and aluminum to its customers. Further, despite improved
operating efficiencies, Ply Gem's ability to generate meaningful
levels of free cash is limited, resulting in the company's
necessity for unfettered access to its revolving credit facility.
The need to use the revolving credit facility to fund working
capital demands and potential operating shortfalls would result in
lower availability. The lower availability may increase the
possibility that Ply Gem would need to meet its fixed charge
coverage ratio as defined in its revolver credit facility
agreement. At the same time, Moody's believes that Ply Gem should
reap some benefits from its cost cutting initiatives and
anticipates that the company's leverage and interest coverage
metrics becoming more supportive of the Caa1 Corporate Family
Rating over the intermediate term.
The change in the ratings outlook to stable from negative
incorporates Moody's view that current availability under Ply
Gem's asset-based revolving credit facility, the refinancing of
the 2012 maturing debt, and improved debt leverage credit metrics
give the company some financial flexibility to contend with the
near-term pressures in the new construction housing and repair and
remodeling sectors.
The rating on the proposed senior subordinated notes due 2014
reflect the claim it has on the company's assets as the most
junior obligation in Ply Gem's capital structure. Proceeds from
the proposed senior subordinated notes due 2014 issuance will be
used to retire the balance of the 9.0% senior subordinated notes
due 2012 that is not transferred as a capital contribution to Ply
Gem and to pay related fees and expenses. Once the refinancing
and the transfer is completed, the rating on the $360 million 9.0%
senior subordinated notes due 2012 will be withdrawn.
These ratings/assessments were affected by this action:
* Corporate Family Rating upgraded to Caa1 from Caa2;
* Probability of Default Rating upgraded to Caa1 from Caa2;
* $720 million senior secured notes due 2013 affirmed at Caa1,
buts its loss given default assessment is changed to (LGD4, 51%)
from (LGD3, 36%);
* Senior subordinated notes due 2014 rated Caa3 (LGD6, 93%);
* $360 million senor subordinated notes due 2012 upgraded to Caa3
(LGD6, 93%) from Ca (LGD5, 89%).
The last rating action was on May 1, 2009, at which time Moody's
affirmed Ply Gem Industries, Inc.'s Caa2 Corporate Family and
upgraded the Probability of Default Rating to Caa2.
Ply Gem Industries, Inc., headquartered in Cary, North Carolina,
is a leading manufacturer of residential exterior building
products in North America. The company's core products are vinyl
siding, windows, patio doors, fencing, railing, and stone, serving
both the new construction and repair and remodel end markets.
Revenues for the last twelve months through October 3, 2009
totaled $971 million.
PREFERRED VOICE: Management Sees Looming Liquidity Crunch
---------------------------------------------------------
Management of Preferred Voice Inc. projects working capital needs
to be roughly $1,440,000 until September 2010 for corporate
overhead and equipment purchases to continue to deploy services to
carrier customers. Additionally, the Company has $1,511,250 of
debentures due on or before September 30, 2010.
In a regulatory filing with the Securities and Exchange Commission
in November, the Company said management believes that current
cash and cash equivalents and cash that may be generated from
operations will not be sufficient to meet both the anticipated
capital requirements and the debenture repayment on their maturity
date. Management believes that it can negotiate extensions on the
debentures which will allow them to meet working capital needs
from anticipated operating cash flows as well as extinguish some
portion of the debentures due.
According to the Company, if it cannot renegotiate extensions on
the debenture maturity dates or operating projections are not
realized it may be forced to raise additional capital through the
issuance of new shares, the exercise of outstanding warrants, or
reduction of current overhead.
The Company said there is substantial doubt about its ability to
continue as a going concern.
In November, the Company reported net income of $101,763 for the
three months ended September 30, 2009, from a net loss of $93,623
for the same period in 2008. The Company reported net income of
$274,383 for the six months ended September 30, 2009, from a net
loss of $83,798 for the same period in 2008.
Net sales were $1,058,673 for the three months ended September 30,
2009, and $2,156,797 for the six months ended September 30. Net
sales were $953,499 for the three months ended September 30, 2008,
and $1,913,672 for the six months ended September 30, 2008.
At September 30, 2009, the Company had $1,135,847 in total assets
against $1,751,074 in total current liabilities, resulting in
$615,227 stockholders' deficit. Cash and cash equivalents at
September 30, 2009, were approximately $295,733, a decrease of
$170,454 from $466,187 at March 31, 2009. The Company said it has
relied primarily on the issuance of stock, convertible debentures
and warrants to fund operations since January 1997 when it sold
its long-distance resale operation.
In September 2006, the Company completed the sale of 117 units
with each Unit consisting of a 3-year, 6% Convertible Debenture in
the principal amount of $10,000, and 14,286 5-year warrants to
purchase a share of Common Stock, $0.001 par value per share, of
the Company at an exercise price of $0.10 for an aggregate of
$1,170,000.
Preferred Voice, Inc., provides enhanced services to the
telecommunications industry throughout the United States and
maintains its principal offices in Dallas, Texas.
PRIVE VEGAS: Agency Extends Liquor License Until April 9
--------------------------------------------------------
The Clark County Business License Department extended Prive Vegas
LLC's temporary liquor license until April 9, 2010, saying the
nightclub complied with the county regulations and conditions
on the temporary license since it was issued on Sept. 21, 2009.
The extension was issued pending completion of background
investigation into the club's new ownership, according to Arnold
M. Knightly at Las Vegas Review-Journal.
rive Vegas owns the Living Room and Prive, adjacent nightclubs
inside the Planet Hollywood Resort and Casino in Las Vegas. The
nightclubs opened this year, according to the clubs' Web site.
Prive Vegas LLC filed for Chapter 11 protection in Miami (Bankr.
S.D. Fla. Case No. 09-34880). The case was assigned to U.S.
Bankruptcy Judge A. Jay Cristol. The petition says debt is
$1 million to $10 million while assets are less than $1 million.
PRM REALTY GROUP: Voluntary Chapter 11 Case Summary
---------------------------------------------------
Debtor: PRM Realty Group, LLC, Debtor
150 North Wacker Dr., Suite 1120
Chicago, IL 60606-1611
Bankruptcy Case No.: 10-30241
Chapter 11 Petition Date: January 6, 2010
Debtor-affiliate filing separate Chapter 11 petition January 6,
2010:
Entity Case No.
------ --------
Peter R. Morris 10-30240
Debtor-affiliate filing separate Chapter 11 petition November 3,
2009:
Entity Case No.
------ --------
Bon Secour Partners, LLC 09-37580
PM Transportation, LLC 09-37581
Debtor-affiliate filing separate Chapter 11 petition April 1,
2009:
Entity Case No.
------ --------
Rangeline Properties, LLC 09-31921
Debtor-affiliate filing separate Chapter 11 petition March 6,
2009:
Entity Case No.
------ --------
PRS II, LLC 09-31436
Debtor-affiliate filing separate Chapter 11 petition March 5,
2009:
Entity Case No.
------ --------
Morris Radio Enterprises, LLC 09-31416
Court: United States Bankruptcy Court
Northern District of Texas (Dallas)
Judge: Barbara J. Houser
About the Business:
Debtors' Counsel: Gerrit M. Pronske, Esq.
Pronske & Patel, P.C.
2200 Ross Avenue, Suite 5350
Dallas, TX 75201
Tel: (214) 658-6500
Fax: (214) 658-6509
Email: gpronske@pronskepatel.com
Estimated Assets: $100,000,001 to $500,000,000
Estimated Debts: $100,000,001 to $500,000,000
The petition was signed by Peter R. Morris.
QHB HOLDINGS: Files Schedules of Assets and Liabilities
-------------------------------------------------------
QHB Holdings LLC, and its debtor-affiliates filed with the U.S.
Bankruptcy Court for the District of Delaware a summary of their
schedules of assets and liabilities, disclosing:
Name of Schedule Assets Liabilities
---------------- ----------- -----------
A. Real Property $0
B. Personal Property $19,387,210
C. Property Claimed as
Exempt
D. Creditors Holding
Secured Claims $331,823,710
E. Creditors Holding
Unsecured Priority
Claims $0
F. Creditors Holding
Unsecured Non-priority
Claims $54,697,428
----------- -----------
$19,387,210 $386,521,138
Green Cary, North Carolina-based QHB Holdings LLC and its debtor-
affiliates filed for Chapter 11 on December 4, 2009, (Bankr. D.
Del. Lead Case No. 09-14312). Eric Michael Sutty, Esq. and
Jeffrey M. Schlerf, Esq. at Fox Rothschild LLP represent the
Debtors in their restructuring efforts. The Debtors listed assets
and debts both ranging from $500,000,001 to $1,000,000,000
QWEST COMMUNICATIONS: Fitch Puts 'BB+' Rating on $500 Mil. Notes
----------------------------------------------------------------
Fitch Ratings has assigned a 'BB+' rating to Qwest Communications
International, Inc.'s proposed $500 million issuance of senior
unsecured notes due 2018. The new notes will be guaranteed by
wholly owned subsidiaries Qwest Services Corporation and Qwest
Capital Funding, Inc. on a senior unsecured basis. The notes will
rank pari passu with Qwest's existing senior unsecured notes due
February 2011, 2014, and 2015 and will be governed by the same
indenture, dated Feb. 5, 2004, as the existing senior unsecured
notes issued by Qwest. The proceeds from the issuance are
expected to be used for general corporate purposes including
refinancing existing indebtedness. Qwest and its wholly owned
subsidiaries have an Issuer Default Rating of 'BB'. The Rating
Outlook for Qwest and its subsidiaries is Stable. As of Sept. 30,
2009, Qwest had approximately $14.1 billion of debt outstanding.
Overall the ratings assigned to Qwest and its subsidiaries
incorporate the scope, scale and relatively consistent cash flow
generated by Qwest Corporation's local exchange business, and the
stable operating trends of Qwest's enterprise segment. Fitch
believes that Qwest has sufficient capacity within the current
ratings to withstand the continued pressure on its operating
profile due to ongoing competitive, technology substitution and
economic factors. The ratings are supported by Qwest's ability to
continually enhance operating margins and efficiently invest
capital into its physical plant, positioning the company to
generate relatively consistent levels of EBITDA and free cash flow
(defined as cash flow from operations less capital expenditures
and dividends).
Fitch continues to believe that Qwest's credit profile is strong
within the current ratings category, however, its competitive
position is weaker when compared to its regional bell operating
company (RBOC) peer group. In Fitch's opinion when compared to
its RBOC peer group, Qwest lacks revenue diversity and revenue
growth opportunities, particularly a strong facilities-based
wireless business, which can offset technology, economic and
competitive issues that continue to erode Qwest's land-line
business. Qwest's business profile is more wire-line voice and
consumer centric relative to its RBOC peer group. These
businesses arguably are most exposed to competitive and technology
threats. The current economic environment - in particular slower
housing starts and higher unemployment - only exasperate the
competitive and wireless substitution threats.
Balancing the operational concerns is Fitch's expectation that
Qwest will continue to generate relatively stable amounts of free
cash flow as Fitch believes that the company has a sufficient
level of flexibility within its capital budget to manage free cash
flow generation. During the first nine months of 2009, the
company generated approximately $1 billion of free cash flow,
marking a significant increase when compared with $426 million of
free cash flow generated during the same period last year.
Contributing to the large free cash flow growth was a 28% year-
over-year reduction in capital expenditures. The weaker economy
(slow housing starts) as well as operating efficiencies and cost
reductions produced the lower capital spending. Looking ahead
Fitch expects Qwest will generate approximately $1 billion of free
cash flow during the ratings horizon.
Qwest's liquidity position and overall financial flexibility are
strong and are supported by expected free cash flow generation,
cash on hand ($2.1 billion as of Sept. 30, 2009) and available
borrowing capacity from Qwest's new $1.035 billion senior secured
revolver, which expires Sept. 30, 2013. Overall, Qwest's capital
structure strategy continues to revolve around refinancing the
debt maturing at Qwest Corporation while using free cash flow
generation to retire Qwest and QCF scheduled maturities.
Importantly, Fitch believes that Qwest management is committed to
maintaining QC's strong credit profile. Fitch does not expect
Qwest to increase leverage at QC to fund investments, share
repurchases or refinance debt issued at QCF or Qwest.
From Fitch's perspective, Qwest's liquidity position and financial
flexibility will be put under pressure during the near term as the
company addresses a total of $4.3 billion of debt scheduled to
mature during 2010 and 2011. Scheduled maturities during 2010
total approximately $2.2 billion, including Qwest's 3.5%
convertible notes due 2025 and QC's $500 million term loan.
QC's senior note offering in April 2009 removes re-financing
risk related to the QC maturity. Fitch expects holders of the
convertible notes to exercise a put option on Nov. 15, 2010.
The issuance along with the $550 million of senior notes due
2015 issued by Qwest in September largely mitigates the
refinancing risks related to the convertible notes. In addition,
the re-financing risk is back-stopped by borrowing capacity under
Qwest's new revolver. Finally Fitch expects that approximately
$403 million of QCF maturities will be retired through free cash
flow generation. Fitch notes that Qwest has called its 7.25%
senior notes due 2011 thereby reducing 2011 scheduled maturities
by $525 million. Existing cash, coupled with expected free cash
flow generation during 2011 should be sufficient to address the
remaining $801 million QCF maturities while $825 million of QC
notes are expected to be re-financed.
The Stable Rating Outlook reflects Fitch's expectation that the
company's operating strategies, in particular the continued
strengthening of Qwest's service bundle and investment in high
speed data, will preserve operating margins and slow the rate of
erosion of Qwest's Mass Market operating segment. Operational
issues will, in Fitch's opinion, have the greatest influence when
considering negative rating actions. Key among these issues will
be Qwest's ability to maintain or enhance operating margins,
continue to generate consistent levels of free cash flow, and
stabilize revenue and access line erosion. While acknowledging a
potential strengthening of Qwest's credit profile, positive
ratings actions would likely be considered as Fitch observes a
persistent trend of positive revenue growth in each of the
company's operating segments along with stable operating margins.
QWEST COMMUNICATIONS: Moody's Puts 'Ba3' Rating on $500 Mil. Notes
------------------------------------------------------------------
Moody's Investors Service has assigned a Ba3 rating to Qwest
Communications International Inc.'s proposed $500 million offering
of senior unsecured notes due 2018. The notes will be guaranteed
on a senior unsecured basis by Qwest Services Corporation and
Qwest Capital Funding, Inc., wholly owned subsidiaries of Qwest
Communications International Inc. The Company intends to use the
proceeds for general corporate purposes, including repayment of
indebtedness. In conjunction with the rating action, Moody's has
affirmed the Company's Ba2 corporate family rating with a stable
outlook, along with the SGL-1 speculative grade liquidity rating.
While ratings are not expected to change, Moody's Loss Given
Default point estimates on the Company's individual debt
securities are subject to change depending on the final size of
the offering completed and the relative mix of debt claims in the
proforma consolidated capitalization structure. The point
estimate below also is based on Moody's expectation that the
$1.265 billion convertible note with scheduled maturity in 2025
issued by QCII will be redeemed in November 2010.
Moody's analyst Dennis Saputo said "Qwest's Ba2 corporate family
rating continues to be supported by the Company's still sizable
subscriber base, the predictable cash generating capabilities of
its local telephone operating subsidiary, Qwest Corporation,
moderate overall leverage, and expectations for additional debt
reduction." Although Qwest faces challenges including growing
competition in its local markets, accelerating access-line losses,
and a lingering tough macroeconomic environment, the Company
continues to effectively manage costs and is expected to generate
significant free cash flow in 2010 and 2011. Despite these
expectations, the Company still faces significant annual debt
maturities (more so at the Qwest Corporation level than at the
parent level as a result of recent capital raising at the parent
level) and is reliant on market access to meet upcoming
obligations. Moody's views the debt issuance as another step in
addressing these maturities.
Saputo added, however, that "the declining trends in revenue and
access lines are unlikely to reverse over the rating horizon. As
a result, Moody's believe that longer-term, Qwest faces many
challenges in sustaining its credit profile in a tough operating
environment while balancing the demands of its shareholders."
Ratings actions include these:
Issuer: Qwest Communications International Inc.
* $500 million new Senior Unsecured notes -- Assigned Ba3 (LGD5,
81%)
* Corporate Family Rating -- Affirmed Ba2
* Probability of Default Rating -- Affirmed Ba2
* Rating Outlook -- Stable
Moody's most recent rating action related to QCII was taken on
September 14, 2009 at which time Moody's assigned a Ba3 rating to
Qwest Communications International Inc.'s 8.00% senior unsecured
notes due October 1, 2015.
Qwest is a RBOC and nationwide inter-exchange carrier
headquartered in Denver, CO.
QWEST COMMUNICATIONS: S&P Assigns 'B+' Rating on $500 Mil. Notes
----------------------------------------------------------------
Standard & Poor's Ratings Services said that it assigned a 'B+'
issue-level rating and a '6' recovery rating to Qwest
Communications International Inc.'s proposed $500 million senior
notes due 2018. The '6' recovery rating indicates the expectation
for negligible (0%-10%) recovery of principal in the event of
payment default. The notes are to be issued under rule 144A with
registration rights with proceeds for general corporate purposes
including debt refinancing.
At the same time, S&P affirmed its ratings, including the 'BB'
corporate credit rating, on Qwest and related entities. The
outlook is negative and reflects the secular pressure on the
company's core wireline business. The Denver-based diversified
telecommunications provider reported over $14 billion of debt at
Sept. 30, 2009.
"The ratings on Qwest reflect the secular decline of the company's
core wireline business, an industrywide trend; leverage of 4.0x
debt to EBITDA, pro forma for the proposed bond issuance and
adjusted for operating leases and OPEBs, which is high for the
rating; and significant debt maturities," said Standard & Poor's
credit analyst Richard Siderman. Tempering factors include solid
cash flow generation, which, in combination with material cash
balances and a $945 million revolver, provide good liquidity.
Additionally, Qwest remains the dominant local telephone exchange
carrier in most areas of its 14-state market, a legacy of its
former status as the regulated, but protected, monopoly telephone
carrier.
RANDALL DAVIS: Voluntary Chapter 11 Case Summary
------------------------------------------------
Debtor: Randall L. Davis Rental Properties, LLC
310 Montgomery Crossroads, Suite 15
Savannah, GA 31406
Bankruptcy Case No.: 10-40014
Chapter 11 Petition Date: January 5, 2010
Court: United States Bankruptcy Court
Southern District of Georgia (Savannah)
Debtor's Counsel: C. James McCallar, Jr., Esq.
McCallar Law Firm
P.O. Box 9026
Savannah, GA 31412
Tel: (912) 234-1215
Fax: (912) 236-7549
Email: mccallarlawfirm@aol.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The petition was signed by Randall Davis, member of the company.
RAYMOND PROFESSIONAL: Lawyers' Letters Complied with Rule 9011
--------------------------------------------------------------
WestLaw reports that a letter that Chapter 11 debtors' counsel
mailed to attorneys whose filing allegedly violated Bankruptcy
Rule 9011, more than 21 days before the debtors' motion for Rule
9011 sanctions, was sufficient to satisfy the requirements of the
"safe harbor" provision of Rule. The letter contained a detailed
recitation of the same violations set forth in the sanctions
motion and expressly informed the attorneys of the debtors' intent
to seek Rule 9011 sanctions if the offending paper was not
withdrawn. A bankruptcy court has discretion when deciding
whether a movant has complied substantially with the procedural
requirements of Bankruptcy Rule 9011 and is entitled to decision
on the merits of its request for Rule 9011 sanctions. In re
Raymond Professional Group, Inc., --- B.R. ----, 2009 WL 4110775
(Bankr. N.D. Ill.) (Schmetterer, J.).
Engineering and design company Raymond Professional Group, Inc. --
http://www.raymond-co.com/index.cfm?fuseaction=home-- and five of
its affiliates filed Chapter 11 petitions (Bankr. N.D. Ill. Case
No. 06-16748) on December 18, 2006. The Debtors are represented
by Jason M. Torf, Esq., at Schiff Hardin LLP in Chicago. When the
Debtors sought Chapter 11 protection, they estimated their assets
and debts between $1 million and $100 million.
READER'S DIGEST: Further Expands Ernst & Young Work
---------------------------------------------------
Reader's Digest Association Inc. and its units their second
amended supplemental application to expand the scope of the
employment of Ernst & Young LLP, as auditor, to include certain
additional services, nunc pro tunc to October 15, 2009.
Pursuant to the Additional Engagement Letter, Ernst & Young will
provide these services:
(a) audit and report on the consolidated financial statements
of The Reader's Digest Association, Inc., at and for the
period from July 1, 2009, to January 30, 2010;
(b) consultation and research services related to the
accounting and financial reporting guidance in FASB
Accounting Standards Codification 852, Reorganizations,
including "Fresh Start" accounting and the related review
of the Company's "Fresh Start" valuation and disclosure;
and
(c) accounting services related to the potential financing of
Reader's Digest upon emergence from Chapter 11
reorganization, including the review of unaudited interim
financial information, the review of financing documents
and information included in the documents, preparation of
required "comfort letters" and other services directly
related to the financing.
For the January 30, 2010 Financial Statement Audit Services, Ernst
& Young will be paid a flat fee of $2,162,400, plus reimbursement
of expenses, for up to 12,400 hours of professional hours. If
Ernst & Young's professional hours incurred in providing Audit
Services exceed 12,400 hours, the firm will be paid at a flat
hourly rate of $200 per hour for any hours in excess of 12,400
hours.
For the Fresh Start and Financial Accounting Services, Ernst &
Young will be paid based on its hourly rates for those services:
Level Rates
----- -----
Partner $547
Senior Manager $487
Manager $426
Senior $304
Staff $213
Thomas A. Williams, Reader's Digest's chief financial officer and
senior vice president, assures Judge Drain that Ernst & Young's
services will not duplicate or overlap with the services being
performed by the Debtors' other retained consultants and advisors.
About The Reader's Digest Association
RDA is a global multi-brand media and marketing company that
educates, entertains and connects audiences around the world. The
company builds multi-platform communities based on branded
content. With offices in 44 countries, it markets books,
magazines, and music, video and educational products reaching a
customer base of 130 million in 78 countries. It publishes 94
magazines, including 50 editions of Reader's Digest, the world's
largest-circulation magazine, operates 65 branded Web sites
generating 22 million unique visitors per month, and sells
40 million books, music and video products across the world each
year. Its global headquarters are in Pleasantville, N.Y.
Reader's Digest said that as of June 30, 2009, it had total assets
of $2.2 billion against total debts of $3.4 billion.
Reader's Digest, together with its 47 affiliates, filed for
Chapter 11 on August 24 (Bankr. S.D.N.Y. Case No. 09-23529).
Kirkland & Ellis LLP has been engaged as general restructuring
counsel. Mallet-Prevost, Colt & Mosle LLP has been tapped as
conflicts counsel. Ernst & Young LLP is auditor. Miller Buckfire
& Co, LLC, is financial advisor. AlixPartners, LLC, is
restructuring consultant. Kurtzman Carson Consultants is notice
and claims agent.
The Official Committee of Unsecured Creditors is tapping BDO
Seidman, LLP, as financial advisor, Trenwith Securities, LLP, as
investment banker and Otterbourg, Steindler, Houston & Rosen,
P.C., as counsel.
Bankruptcy Creditors' Service, Inc., publishes Reader's Digest
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by Reader's Digest and its affiliates
(http://bankrupt.com/newsstand/or 215/945-7000)
READER'S DIGEST: Panel Has Nod to Retain Industry Expert
--------------------------------------------------------
The Bankruptcy Court authorized the Official Committee of
Unsecured Creditors of The Reader's Digest Association, Inc., et
al., to retain Stuart U. Goldfarb as special industry expert.
The Committee said that Mr. Goldfarb's services would be limited
to meeting with the panel's financial advisors and attorneys,
reviewing and analyzing the Debtors' business plan and related
financial information, advising on areas in the Business Plan for
potential revenue growth or cost savings, conveying his findings
to the Creditors' Committee and its advisors, and attending any
required deposition or Court hearing.
The retention was approved despite the Debtors' objection.
Mr. Goldfarb will be paid at the rate of $600 per hour, to be
capped at $30,000 for the first phase of his engagement, inclusive
of expenses, based on an estimate of 50 hours.
Mr. Goldfarb is entitled to submit detailed invoices to the
Debtors; their counsel, conflicts counsel and postpetition
lenders; the U.S. Trustee, and the Creditors' Committee's counsel
for compensation for professional services rendered and for
reimbursement of expenses incurred in the First Phase in
accordance with the various guidelines established by the US
Trustee and the Court's order establishing procedures for interim
compensation and reimbursement of expenses.
The Creditors' Committee is also authorized to retain Mr. Goldfarb
as special industry expert at the rate of $600 per hour for the
second phase of his engagement, provided that prior to his
performing any services in connection with the Second Phase the
creditors Committee will either (i) obtain the consent of the
Debtors and the senior secured lenders, or (ii) file a notice with
the Court on an expedited basis, which provides the Debtors and
the senior secured lenders an opportunity to be heard in
opposition to Mr. Goldfarb's retention for the Second Phase.
To the extent that Mr. Goldfarb is authorized to perform Second
Phase services, he will be entitled to submit detailed invoices to
the Notice Parties for compensation for professional services
rendered and reimbursement of expenses incurred in the Second
Phase, provided that the total amount of his requested fees and
expenses will not exceed $20,000 in the aggregate, absent the
consent of the Debtors and the senior secured lenders.
Notwithstanding anything in the order to the contrary, the U.S.
Trustee, the Debtors and other parties-in-interest will retain all
rights to object to the fees and expenses requested by Mr.
Goldfarb, based on the reasonableness standard provided for in
Section 330 of the Bankruptcy Code. The Debtors also reserve
their right to contest that Mr. Goldfarb qualifies as an industry
expert for any work performed in the Second Phase.
About The Reader's Digest Association
RDA is a global multi-brand media and marketing company that
educates, entertains and connects audiences around the world. The
company builds multi-platform communities based on branded
content. With offices in 44 countries, it markets books,
magazines, and music, video and educational products reaching a
customer base of 130 million in 78 countries. It publishes 94
magazines, including 50 editions of Reader's Digest, the world's
largest-circulation magazine, operates 65 branded Web sites
generating 22 million unique visitors per month, and sells
40 million books, music and video products across the world each
year. Its global headquarters are in Pleasantville, N.Y.
Reader's Digest said that as of June 30, 2009, it had total assets
of $2.2 billion against total debts of $3.4 billion.
Reader's Digest, together with its 47 affiliates, filed for
Chapter 11 on August 24 (Bankr. S.D.N.Y. Case No. 09-23529).
Kirkland & Ellis LLP has been engaged as general restructuring
counsel. Mallet-Prevost, Colt & Mosle LLP has been tapped as
conflicts counsel. Ernst & Young LLP is auditor. Miller Buckfire
& Co, LLC, is financial advisor. AlixPartners, LLC, is
restructuring consultant. Kurtzman Carson Consultants is notice
and claims agent.
The Official Committee of Unsecured Creditors is tapping BDO
Seidman, LLP, as financial advisor, Trenwith Securities, LLP, as
investment banker and Otterbourg, Steindler, Houston & Rosen,
P.C., as counsel.
Bankruptcy Creditors' Service, Inc., publishes Reader's Digest
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by Reader's Digest and its affiliates
(http://bankrupt.com/newsstand/or 215/945-7000)
READER'S DIGEST: Wants Cushman & Wakefield as Real Estate Broker
----------------------------------------------------------------
The Reader's Digest Association Inc. and its units seek the
Court's authority to employ, pursuant to Section 363 of the
Bankruptcy Code, Cushman & Wakefield, Inc., as their real estate
broker.
The Debtors have sought the Court's permission to enter into two
new non-residential real property leases to support the relocation
of their corporate offices into newer, more efficient space better
suited to their current and post-emergence needs, which will allow
the Debtors to realize substantial long-term cost savings. As set
forth in the New Leases Motion, the Debtors retained Cushman to
assist them with a comprehensive review of their current leases
and potential replacement leases as part of the Debtors' real
estate and space planning initiative, implemented as part of their
long-term strategic business planning efforts.
James H.M. Sprayregen P.C., Esq., at Kirkland & Ellis LLP, in New
York, tells the Court that as is customary in commercial real
estate transactions, Cushman's commissions in connection with the
New Leases will be paid by the new landlords and not by the
Debtors' bankruptcy estates. The commissions are calculated based
on the rent payable under the New Leases, he notes. He assures
the Court and parties-in-interest that the commissions do not, and
did not, affect the cost of the New Leases to the Debtors.
Cushman's commissions were not negotiated in connection with any
of the locations the Debtors considered leasing, including the New
Lease premises, Mr. Sprayregen discloses. He says the commission
costs are "baked in" to the square foot rates that landlords
charge. He clarifies that under standard practices in the
commercial real estate industry, there would have been no
reduction in the cost of the New Leases had the Debtors not
retained a broker because, typically, if a prospective tenant does
not retain a broker in seeking to obtain a new lease, the landlord
either pockets the difference, or in some circumstances, the
commissions are payable to the landlord's own agent or real estate
management company.
Mr. Sprayregen reveals that Cushman has made certain
accommodations, in light of the Debtors' pending Chapter 11 cases
to benefit the estates and ensure that Cushman's compensation
would not derail the Debtors' efforts to enter into the New
Leases. He explains that while at least 50% of the commission on
a new lease is normally payable upon execution of the lease, with
the remainder payable upon some future date to protect the
landlords in the event that the Debtors did not emerge from
chapter 11 and could not perform under the New Leases.
Recognizing the facts in the Chapter 11 cases and wanting to
accommodate the needs of its long-time client, Mr. Sprayregen
reveals that Cushman offered to bear the risk with respect to its
commissions and agreed that it would not be entitled to any
commissions on the New Leases unless and until the Debtors
successfully emerge from Chapter 11 and the New Leases become
effective by their terms.
The Court will commence a hearing on January 12, 2010, to consider
the application. Objections are due January 7.
About The Reader's Digest Association
RDA is a global multi-brand media and marketing company that
educates, entertains and connects audiences around the world. The
company builds multi-platform communities based on branded
content. With offices in 44 countries, it markets books,
magazines, and music, video and educational products reaching a
customer base of 130 million in 78 countries. It publishes 94
magazines, including 50 editions of Reader's Digest, the world's
largest-circulation magazine, operates 65 branded Web sites
generating 22 million unique visitors per month, and sells
40 million books, music and video products across the world each
year. Its global headquarters are in Pleasantville, N.Y.
Reader's Digest said that as of June 30, 2009, it had total assets
of $2.2 billion against total debts of $3.4 billion.
Reader's Digest, together with its 47 affiliates, filed for
Chapter 11 on August 24 (Bankr. S.D.N.Y. Case No. 09-23529).
Kirkland & Ellis LLP has been engaged as general restructuring
counsel. Mallet-Prevost, Colt & Mosle LLP has been tapped as
conflicts counsel. Ernst & Young LLP is auditor. Miller Buckfire
& Co, LLC, is financial advisor. AlixPartners, LLC, is
restructuring consultant. Kurtzman Carson Consultants is notice
and claims agent.
The Official Committee of Unsecured Creditors is tapping BDO
Seidman, LLP, as financial advisor, Trenwith Securities, LLP, as
investment banker and Otterbourg, Steindler, Houston & Rosen,
P.C., as counsel.
Bankruptcy Creditors' Service, Inc., publishes Reader's Digest
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by Reader's Digest and its affiliates
(http://bankrupt.com/newsstand/or 215/945-7000)
RED ROCKET: $270,000 DIP Financing Gets Final Approval
------------------------------------------------------
Red Rocket Fireworks, Inc., has obtained final approval from the
Hon. Arthur B. Federman of the U.S. Bankruptcy Court for the
Western District of Missouri to enter into the Debtor in
Possession Financing and Consignment Agreement with C&A Pyro, LLC.
As reported by the TCR on December 22, 2009, the Debtor sought
authority from the Court to obtain postpetition secured financing
from C&A. The DIP lender committed to provide up to $270,000.
Raymond I. Plaster, Esq., the attorney for the Debtor, explains
that the Debtor needs the money to finance its upcoming New Year's
holiday sales season.
C&A will be permitted to apply for an administrative expense
priority in the event of a shortfall in the repayment of the DIP
Line. Excluded from this priority provision will be the Debtor's
pre-petition retainer deposited in the Raymond I. Plaster, PC
Missouri Lawyers Trust Account in the sum of $20,961. In the
event C&A requests the court to impress the shortfall with
priority, the request will be without prejudice to any committee,
parties in interest or UST seeking a carve out.
The final hearing on the Debtor's motion to use cash collateral
was held on January 7, 2010.
Rock Hill, South Carolina-based Red Rocket Fireworks, Inc., filed
for Chapter 11 bankruptcy protection on December 11, 2009 (Bankr.
W.D. Mo. Case No. 09-62800). Raymond I. Plaster, Esq., who has an
office in Springfield, Missouri, assists the Company in its
restructuring effort. The Company listed $10,000,001 to
$50,000,000 in assets and $10,000,001 to $50,000,000 in
liabilities.
REEF SWD 2007-A: Voluntary Chapter 11 Case Summary
--------------------------------------------------
Debtor: Reef SWD 2007-A, L.P.
1901 N. Central Expressway, Suite 300
Richardson, TX 75080
Bankruptcy Case No.: 10-30197
Chapter 11 Petition Date: January 5, 2010
Court: United States Bankruptcy Court
Northern District of Texas (Dallas)
Judge: Stacey G. Jernigan
Debtor's Counsel: Cameron W. Kinvig, Esq.
Hunton & Williams, LLP
1445 Ross Avenue, Suite 3700
Dallas, TX 75202
Tel: (214) 979-2968
Fax: (214) 979-3963
Email: ckinvig@hunton.com
Michael Scott Held, Esq.
Hunton & Williams LLP
1445 Ross Ave., Suite 3700
Dallas, TX 75202-2799
Tel: (214) 468-3334
Fax: (214) 468-3599
Email: mheld@hunton.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The petition was signed by Michael J. Mauceli,
REGENT BROADCASTING: Moody's Downgrades Default Rating to 'D'
-------------------------------------------------------------
Moody's Investors Service downgraded Regent Broadcasting LLC's
Probability of Default Rating to D from Caa2 and placed its Caa1
Corporate Family Rating and the company's Caa1 bank debt ratings
under review for possible downgrade following the company's
announcement that it missed payments of interest and principal.
There remains significant uncertainty as Regent continues to
negotiate with its lenders and in Moody's view, a bankruptcy
filing cannot be ruled out if the banks do not reach a unanimous
common solution and decide to accelerate their loans. Absent the
professional fees and term loan amortization, Moody's believe
Regent could absorb some increase in interest pricing beyond the
default interest rate. Regent's speculative grade liquidity
rating remains at SGL-4.
Regent has been in technical default of its bank loan agreement
since early 2009. Lenders imposed default rate interest and a
minimum base rate and therefore Regent has been paying a much
higher borrowing rate while continuing to engage lenders in
discussions for an amendment and longer term solution to its non-
compliance and related liquidity issues. Up until December 31,
2009, the company had been current under the payment obligations
in its credit agreement. However, Regent did not make required
interest and principal payments on its $190 million of first lien
bank debt, which were due on December 31, 2009, and the one day
grace period has lapsed. In addition, the company has not made
its scheduled payment under its interest rate swap arrangement at
year end. Moody's deems a default to have occurred when a payment
of interest or principal is not made by the end of a grace period,
irrespective of lender acceleration or notice of an event of
default. Consequently, the probability of default rating has been
lowered to D from Caa2.
Reported debt-to-EBITDA leverage is over 9.0x and the company is
consuming cash heading into a seasonally weak period. While free
cash flow has been approximately breakeven in recent quarters, the
term loan amortized at $1.5 million per quarter in 2009 and is
scheduled to step up to $2.2 million per quarter in 2010, which
will likely result in a burn of the company's cash balance.
Regent has also been incurring significant professional fees in
connection with lender negotiations. Regent had $6 million of
cash at 9/30/09 and, based on Moody's view of the company's
expected performance, would run out of cash in the second quarter
of 2010 if it goes current on its scheduled interest and principal
payments without some combination of a modification to
amortization requirements, restoration of the revolving credit
facility, and flexibility under its maintenance covenants. Such
changes are tantamount to either a refinancing or if the bank debt
is swapped for a new facility with a reduction in principal, a
debt restructuring.
The review for possible downgrade will focus on Regent's ability
to achieve a restructuring of its bank credit agreement that
provides sufficient liquidity to support its operations for the
intermediate-term. The current Caa1 CFR reflects Moody's view
that with current debt levels, that a higher than average recovery
is likely. The ratings could be confirmed at Caa1 if Regent is
able to restructure its balance sheet or secure an amendment such
that Moody's expect sufficient liquidity to support operations as
advertising recovers over the next 18-24 months and potentially
reduce leverage. However, the ratings could be downgraded if an
amendment does not provide sufficient liquidity to support
operations beyond 2010, and if the balance sheet debt structure is
unsustainable due to potentially higher debt and leverage levels
which would lead to a lower recovery for debt holders.
The SGL-4 speculative grade liquidity rating reflects cash
consumption and defaulted first lien bank debt (principal and
accrued interest) that could be declared due by lenders. Balance
sheet cash is insufficient to repay these obligations and the
company has minimal sources of alternative liquidity.
These ratings are impacted by the action:
Regent Broadcasting LLC
-- Probability of Default Rating, Downgraded to D from Caa2
-- Corporate Family Rating, Placed on Review for Possible
Downgrade, currently Caa1
-- Senior Secured Bank Credit Facility, Placed on Review for
Possible Downgrade, currently Caa1 LGD3 35%
-- Outlook, Changed To Rating Under Review From Developing
-- Speculative Grade Liquidity Rating is unchanged at SGL-4
The last rating action for Regent occurred on May 18, 2009, when
Moody's downgraded the corporate family rating to Caa1 from B3 and
the probability of default rating to Caa2 from Caa1.
Regent Broadcasting LLC owns and operates 62 stations located in
13 markets.
RG GLOBAL: Posts $186,000 Net Loss in 2nd Qtr. Ended September 30
-----------------------------------------------------------------
RG Global Lifestyles, Inc., reported a net loss of $185,919 for
the three months ended September 30, 2009, compared to a net loss
of $1,163,674 for the same period of 2008.
The Company reported a net loss of $427,162 on total revenues of
$57,739 for the six months ended September 30, 2009, compared to a
net loss of $2,760,886 on total revenues of $90,419 for the same
period last year.
At September 30, 2009, the Company's consolidated balance sheets
showed $1,217,839 in total assets and $4,360,640 in total
liabilities, resulting in a $3,142,801 shareholders' deficit.
The Company's consolidated balance sheets at September 30, 2009,
also showed strained liquidity with $6,065 in total current assets
available to pay $4,140,642 in total current liabilities.
A full-text copy of the Company's Form 10-Q is available at no
charge at http://researcharchives.com/t/s?4d2a
Going Concern Doubt
During the six months ended September 30, 2009, the Company
incurred an operating loss from continuing operations before
income taxes of $721,100, and used $314,683 of cash for
operations. As of September 30, 2009, the Company had a working
capital deficit of $4,134,577. "These conditions raise
substantial doubt about the Company's ability to continue as a
going concern."
About RG Global
RG Global Lifestyles Inc. (OTC BB: RGBL) --
http://www.rgglife.com/-- is a full service water and wastewater
treatment engineering and construction company headquartered in
Southern California.
RICCO INC: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------
Debtor: Ricco, Inc.
aka Amico Partners
aka Ambizioso Partners
aka Lupo Tana Partners
aka Tre Manichinos Partners
Route 1 Box 239
Elk Garden, WV 26717
Bankruptcy Case No.: 10-00023
Type of Business:
Chapter 11 Petition Date: January 7, 2010
Court: United States Bankruptcy Court
Northern District of West Virginia (Martinsburg)
Judge: A. Bruce Campbell
Debtor's Counsel: Todd Johnson, Esq.
Johnson Law, PLLC
Post Office Box 519
Morgantown, WV 26507-0519
Tel: (304) 292-7933
Fax: (304) 292-7931
Email: johnsonlawoffice@gmail.com
Estimated Assets: $10,000,001 to $50,000,000
Estimated Debts: $1,000,001 to $10,000,000
According to the schedules, the Company has assets of $15,162,600,
and total debts of $4,093,674.
The petition was signed by Ralph A. Calandrella, the company's
president.
Debtor's List of 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Alice Andrzejewski Personal Loan $60,000
Beatrice V. Paugh Personal Loan $117,000
Brian Sowers Ambiziosa Partners $167,000
Personal Loan
Carolyn Calendrella Personal Loan $60,000
Daniel Kelley Personal Loan $145,000
Doris J. Sowers and Personal Loan $100,000
Carolyn Calandrella
obo Mildred Kitzmiller
(deceased)
Doris J. Sowers and Personal Loan $200,000
Carolyn Calandrella
obo Mildred Kitzmiller
(deceased)
Douglas M. Bircher Personal Loan $51,789
Elk District Volunteer Personal Loan $115,000
Fire Co., Inc.
Gary N. Paugh Personal Loan $50,000
James F. and Mary L. Personal Loan $72,000
Bruckey
Jay R. Reed and Margaret Personal Loans $1,350,385
S. Reed
6003 22nd Avenue DR East
Palmetto, FL 34221
Jeremy T. Iser Personal Loan $90,000
John and Susan Daley Personal Loan $219,000
John F. Dixon Personal Loan $50,000
Ralph and Linda Franz Personal Loan $56,000
T. Scott Wilson Personal Loan $60,000
Troxell Keplinger Personal Loan $240,000
Willard C. and Dorothy Personal Loan $50,000
L. Roth
William E. and Marcia L. Personal Loan $75,000
Lucas
RICHARD LARSEN: Case Summary & 18 Largest Unsecured Creditors
-------------------------------------------------------------
Joint Debtors: Richard E. Larsen
dba RL Construction
Teri A. Larsen
2940 E. Houston Ave
Gilbert, AZ 85234
Bankruptcy Case No.: 09-33934
Chapter 11 Petition Date: December 31, 2009
Court: United States Bankruptcy Court
District of Arizona (Phoenix)
Judge: Vincent P. Zurzolo
Debtors' Counsel: Robert M. Cook, Esq.
Law Offices Of Robert M. Cook PLLC
219 W Second St
Yuma, AZ 85364
Tel: (928) 782-7771
Fax: (928) 782-7778
Email: robertmcook@yahoo.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $500,001 to $1,000,000
A full-text copy of the Debtors' petition, including a list of
their 18 largest unsecured creditors, is available for free at:
http://bankrupt.com/misc/azb09-33934.pdf
The petition was signed by the Joint Debtors.
RIDGEVIEW HEIGHTS: Sec. 341 Creditors Meeting Set for Jan. 29
-------------------------------------------------------------
The U.S. Trustee for Region 8 will convene a meeting of Ridgeview
Heights, LLC's creditors on January 29, 2010, at 8:30 a.m. at
Customs House, 701 Broadway, Room 100, Nashville, TN 37203.
This is the first meeting of creditors required under Section
341(a) of the U.S. Bankruptcy Code in all bankruptcy cases.
All creditors are invited, but not required, to attend. This
Meeting of Creditors offers the one opportunity in a bankruptcy
proceeding for creditors to question a responsible office of the
Debtor under oath about the company's financial affairs and
operations that would be of interest to the general body of
creditors.
Bartlett, Tennessee-based Ridgeview Heights, LLC, filed for
Chapter 11 bankruptcy protection on December 28, 2009 (Bankr. M.D.
Tenn. Case No. 09-14692). Paul E. Jennings, Esq., who has an
office in Murfreesboro, Tennessee, assists the Company in its
restructuring effort. The Company listed $10,000,001 to
$50,000,000 in assets and $1,000,001 to $10,000,000 in
liabilities.
R.J. FINANCIAL: Case Summary & 20 Largest Unsec. Creditors
----------------------------------------------------------
Debtor: R.J. Financial, Inc.
9301 Tampa Avenue, Unit 64
Northridge, CA 91324
Bankruptcy Case No.: 10-10209
Chapter 11 Petition Date: January 7, 2010
Court: United States Bankruptcy Court
Central District of California (San Fernando Valley)
Judge: Maureen Tighe
Debtor's Counsel: Sandford Frey, Esq.
633 W Fifth St 51st Fl
Los Angeles, CA 90071
Tel: (213) 614-1944
Email: Sfrey@cmkllp.com
Stuart I. Koenig, Esq.
633 W 5th St 51st Fl
Los Angeles, CA 90071
Tel: (213) 614-1944
Email: Skoenig@cmkllp.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A full-text copy of the Debtor's petition, including a list of its
20 largest unsecured creditors, is available for free at:
http://bankrupt.com/misc/cacb10-10209.pdf
The petition was signed by Randy Abalkhad, president of the
Company.
RK REALTY ONE: Voluntary Chapter 11 Case Summary
------------------------------------------------
Debtor: RK Realty One Associates
1616 Walnut Street, Suite 2400
Philadelphia, PA 19103
Bankruptcy Case No.: 09-30027
Chapter 11 Petition Date: December 30, 2009
Court: United States Bankruptcy Court
Eastern District of Pennsylvania (Philadelphia)
Judge: Chief Judge Stephen Raslavich
Debtor's Counsel: Edmond M. George, Esq.
Obermayer Rebmann Maxwell & Hippel, LLP
1617 John F. Kennedy Blvd.
One Penn Center, Suite 1900
Philadelphia, PA 19103
Tel: (215) 665-3140
Email: edmond.george@obermayer.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Debtor did not file a list of its 20 largest unsecured
creditors when it filed its petition.
The petition was signed by Neal Rodin, general partner of the
Company.
RURAL/METRO CORPORATION: CEO Stepdown Won't Move Moody's Ratings
----------------------------------------------------------------
Moody's Investors Service commented that there is no immediate
impact to the B2 CFR or positive outlook of Rural/Metro
Corporation following the announcement that Jack Brucker, the
company's long-time CEO, had resigned for personal reasons.
The last rating action was on October 21, 2009, when Moody's rated
Rural/Metro's refinancing transaction and changed the outlook to
positive.
Rural Metro provides emergency and non-emergency medical
transportation, fire protection, airport fire and rescue and home
healthcare services in 22 states and approximately 400 communities
within the United States. The services are provided under
contract with government entities, hospitals, healthcare
facilities and other healthcare organizations. Net revenue for
the twelve months ended September 30, 2009, was approximately
$507 million.
SEQUA CORP: Bank Debt Trades at 9% Off in Secondary Market
----------------------------------------------------------
Participations in a syndicated loan under which Sequa Corporation
is a borrower traded in the secondary market at 90.65 cents-on-
the-dollar during the week ended Friday, Jan. 8, 2010, according
to data compiled by Loan Pricing Corp. and reported in The Wall
Street Journal. This represents increase of 1.71 percentage
points from the previous week, The Journal reports. The Company
pays 325 basis points above LIBOR to borrow under the facility.
The bank loan matures on Nov. 28, 2014, and carries Moody's B2
rating and Standard & Poor's B- rating. The debt is one of the
biggest gainers and losers among 160 widely quoted syndicated
loans with five or more bids in secondary trading for the week
ended Jan. 8, 2010.
The Troubled Company Reporter, on Oct. 12, 2009, related that
Moody's confirmed Sequa Corporation's Caa1 Corporate Family and
the Probability of Default Ratings. Simultaneously, the company's
senior secured bank credit facility rating was confirmed at B2 and
the rating for the senior unsecured notes was confirmed at Caa2.
The rating outlook is negative. This action completes the review
for possible downgrade that was
initiated on March 16, 2009.
On July 1, 2009, the TCR reported Standard & Poor's lowered its
corporate credit rating on Sequa Corporation to 'B-' from 'B'.
S&P also lowered its issue-level rating on the company's senior
debt to 'B-' (the same as the corporate credit rating) from 'BB-'.
In addition, Standard & Poor's revised the recovery rating on this
debt to '3' from '1', indicating S&P's expectations of meaningful
(50%-70%) recovery in the event of a payment default. At the same
time, S&P lowered its issue-level rating on Sequa's senior
unsecured debt to 'CCC' (two notches below the corporate credit
rating) from 'B-'. S&P also revised the recovery rating on this
debt to '6' from '5', indicating S&P's expectations of negligible
(0%-10%) recovery the event of a payment default. S&P also
revised the outlook to negative from stable.
Sequa Corporation, headquartered in New York, is a diversified
industrial company operating in three business segments: aerospace
through Chromalloy Gas Turbine, automotive through ARC Automotive
and Casco Products and metal coating through Precoat Metals. LTM
revenue as of 6/30/09 was approximately $1.5 billion.
SERGIO GONZALEZ: Voluntary Chapter 11 Case Summary
--------------------------------------------------
Joint Debtors: Sergio Gonzalez
Margarita Gonzalez
POB 5206
Goodyear, AZ 85338
Bankruptcy Case No.: 10-00223
Chapter 11 Petition Date: January 6, 2010
Court: United States Bankruptcy Court
District of Arizona (Phoenix)
Debtors' Counsel: Steven D. Keist, Esq.
P.O. Box 1734
Glendale, AZ 85311-1734
Tel: (623) 937-9799
Fax: (623) 435-9057
Email: steven.keist@azbar.org
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Debtors did not file a list of their 20 largest unsecured
creditors when they filed their petition.
The petition was signed by the Joint Debtors.
SERVICE MASTER: Bank Debt Trades at 7% Off in Secondary Market
--------------------------------------------------------------
Participations in a syndicated loan under which The ServiceMaster
Co. is a borrower traded in the secondary market at 93.25 cents-
on-the-dollar during the week ended Friday, Jan. 8, 2010,
according to data compiled by Loan Pricing Corp. and reported in
The Wall Street Journal. This represents increase of 3.67
percentage points from the previous week, The Journal reports.
The Company pays 300 basis points above LIBOR to borrow under the
facility. The bank loan matures on July 24, 2014, and carries
Moody's B1 rating and Standard & Poor's B+ rating. The debt is
one of the biggest gainers and losers among 160 widely quoted
syndicated loans with five or more bids in secondary trading for
the week ended Jan. 8, 2010.
The ServiceMaster Co. -- http://www.servicemaster.com/-- serves
residential and commercial customers through a network of over
5,500 company-owned locations and franchised licenses. The
Company's brands include TruGreen, TruGreen LandCare, Terminix,
American Home Shield, ServiceMaster Clean, Merry Maids, Furniture
Medic, and AmeriSpec. The core services of the Company include
lawn care and landscape maintenance, termite and pest control,
home warranties, disaster response and reconstruction, cleaning
and disaster restoration, house cleaning, furniture repair, and
home inspection.
SERVICE SUPPLY: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: Service Supply Distribution, LLC
P.O. Box 749
Cordele, GA 31010-0749
Bankruptcy Case No.: 09-12409
Chapter 11 Petition Date: December 30, 2009
Court: United States Bankruptcy Court
Middle District of Georgia (Albany)
Judge: James D. Walker Jr.
Debtor's Counsel: Ward Stone, Jr., Esq.
Stone & Baxter, LLP
577 Mulberry Street, Suite 800
Fickling and Co. Building
Macon, GA 31201
Tel: (478) 750-9898
Fax: (478) 750-9899
Email: wstone@stoneandbaxter.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A full-text copy of the Debtor's petition, including a list of its
20 largest unsecured creditors, is available for free at:
http://bankrupt.com/misc/gamb09-12409.pdf
The petition was signed by Monroe Hunt, manager of the Company.
SEVERN JUPITER: Voluntary Chapter 11 Case Summary
-------------------------------------------------
Debtor: Severn Jupiter, LLC
1116 Love Street
Jupiter, FL 33477
Bankruptcy Case No.: 10-10041
Type of Business:
Chapter 11 Petition Date: January 6, 2010
Court: United States Bankruptcy Court
District of Delaware (Delaware)
Debtor's Counsel: Shannon D. Leight, Esq.
Ciardi Ciardi & Astin
One Commerce Square, Suite 1930
2005 Market Street
Philadelphia, PA 19103
Tel: (215) 557-3550
Fax: (215) 557-3551
Email: sleight@ciardilaw.com
Estimated Assets: $10,000,001 to $50,000,000
Estimated Debts: $10,000,001 to $50,000,000
The Debtor did not file a list of its 20 largest unsecured
creditors when it filed its petition.
SHADOW GROUP: Case Summary & 15 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: The Shadow Group, L.L.C.
POB 41229
Greensboro, NC 27404
Bankruptcy Case No.: 10-10015
Chapter 11 Petition Date: January 6, 2010
Court: United States Bankruptcy Court
Middle District of North Carolina (Greensboro)
Judge: Bankruptcy Judge Thomas W. Waldrep Jr.
Debtor's Counsel: Dirk W. Siegmund, Esq.
Ivey, McClellan, Gatton, & Talcott, LLP
Suite 500, 100 S. Elm St.
P.O. Box 3324
Greensboro, NC 27402-3324
Tel: (336) 274-4658
Fax: (336) 274-4540
Email: dws@imgt-law.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A full-text copy of the Debtor's petition, including a list of its
15 largest unsecured creditors, is available for free at:
http://bankrupt.com/misc/ncmb10-10015.pdf
The petition was signed by Barbara Greene, member/manager of the
Company.
SHERWOOD/CLAY-AUSTIN: Gets Interim Nod to Use Cash Collateral
-------------------------------------------------------------
The Hon. Douglas D. Dodd of the U.S. Bankruptcy Court for the
Middle District of Louisiana has granted Sherwood/Clay-Austin
Lights LLC permission to use cash collateral on an interim basis.
As reported by the TCR on November 16, 2009, the Debtor sought
authorization from the Court to use, on an interim basis, cash
collateral to meet necessary expenses incurred in the ordinary
course of its business, including payroll and the costs associated
with these proceedings, pursuant to a budget. A copy of the
budget is available for free at:
http://bankrupt.com/misc/SHERWOOD_budget.pdf
The Court ruled that the Debtor may exceed any line item in the
Budget by up to 15% in any week, so long as the aggregate amount
of the Budget for any week is not exceeded by more than 10%.
The Court grants claims against the Debtor's estate in favor of
Legg Mason Real Estate Capital II, a Delaware Corporation, as
adequate protection in the amount of any post-petition diminution
in the value of Legg Mason's interest in cash that may constitute
the Cash Collateral or any of its Pre-petition Collateral from and
after November 2, 2009 (the Petition Date) to the extent such
interests are entitled to adequate protection against diminution
The grant of Adequate Protection to Legg Mason in this order in no
way will prejudice Legg Mason's right to assert that the adequate
protection granted in this order is or may become inadequate.
In order to secure the Adequate Protection Claim, Legg Mason is
granted, effective immediately, replacement security interests in
and liens upon all post-petition personal and real property of the
Debtor and its estate and all proceeds and products of such
personal and real property, and post-petition accounts and cash to
the extent that Legg Mason prepetition possessed a valid and
perfected security interest and lien in any such accounts and/or
cash.
The Adequate Protection Liens granted to Legg Mason will be
subject only to valid, perfected, enforceable and unavoidable
liens and security interests granted by the Debtor or operation of
law to any person or entity that were superior in priority to the
prepetition security interests and liens held by Legg Mason and
only to the extent such prepetition liens are not otherwise
subject to avoidance or subordination.
The Debtor will: (a) continue to keep the Collateral fully insured
against all loss, peril and hazard; and (b) pay any and all post-
petition taxes, assessments and governmental charges with respect
to such Collateral.
The Debtor will pay 90% of its net revenue to Legg Mason as
adequate protection payments. The remaining 10% will be held in
reserve in the Debtor's operating account and is subject to Legg
Mason's lien; provided however that the amount held in reserve
will not exceed $30,000 (and any amount exceeding $30,000 will be
paid to Legg Mason) unless a higher amount is agreed to by Legg
Mason. The payment and the accounting justifying the payment will
be made on or before the 20th of each month beginning December 20
for the month of November.
The Court has set a January 8, 2010 final hearing on the Debtor's
request to access cash collateral.
About Sherwood/Clay-Austin
Baton Rouge, Louisiana-based Sherwood/Clay-Austin Lights LLC filed
for Chapter 11 bankruptcy protection on November 2, 2009 (Bankr.
M.D. La. Case No. 09-11725). Douglas S. Draper, Esq., who has an
office in New Orleans, Louisiana, assists the Company in its
restructuring efforts. The Company listed $10,000,001 to
$50,000,000 in assets and $10,000,001 to $50,000,000 in
liabilities.
SIMON WORLDWIDE: Forms Special Committee to Explore Options
-----------------------------------------------------------
Simon Worldwide, Inc., said its Board of Directors has formed a
Special Committee consisting of its independent directors,
Allan I. Brown and Joseph W. Bartlett, to explore alternative
courses of action for the Company, including the possible
acquisition or combination with one or more operating businesses
including the potential acquisition of Ceiva Logic, Inc., by the
Company.
The Company cautioned there can be no assurance that the
exploration of alternatives, including the evaluation of the offer
with respect to Ceiva, will result in any agreements or
transactions, or that, if completed, any agreements or
transactions will be successful or on attractive terms. The
Company's review of alternatives is underway, but no timetable has
been set for its completion.
Simon Worldwide has not earned any revenues and continues to incur
losses in 2009 within its continuing operations for the general
and administrative expenses being incurred to manage the affairs
of the Company and resolve outstanding legal matters. The Company
posted a net loss of $562,000 for the three months ended
September 30, 2009, from net income of $275,000 for the same
period in 2008. The Company posted a net loss of $1,509,000 for
the nine months ended September 30, 2009, from net income of $988
for the same period in 2008.
To fund operations, the Company is utilizing cash received
pursuant to a settlement with McDonald's in 2004, $2.1 million
received from Yucaipa AEC in July 2008 and March 2009, and
$1.75 million received in August 2008 in settlement of the
Company's lawsuit against PricewaterhouseCoopers LLC. Management
believes it has sufficient capital resources and liquidity to
operate the Company for the foreseeable future. In connection
with the Company's settlement of its litigation with McDonald's
and related entities, the Company received net cash proceeds,
after attorney's fees, of $13 million and, due to the elimination
of liabilities associated with the settlement of $12 million, the
Company recorded a gain of approximately $25 million in 2004.
However, as a result of significant losses from operations, a lack
of any operating revenue and a potential liquidation in connection
with a recapitalization agreement, the Company's independent
registered public accounting firm has expressed substantial doubt
about the Company's ability to continue as a going concern.
At September 30, 2009, the Company had $16.0 million in total
assets against $804,000 in total current liabilities.
In 2008, the Company entered into a Recapitalization Agreement
with Overseas Toys, an affiliate of Yucaipa. In connection with
the Recapitalization Agreement, in the event the Company does not
consummate a business combination by the later of (i) December 31,
2010 or (ii) December 31, 2011 in the event that a letter of
intent, an agreement in principle or a definitive agreement to
complete a business combination was executed on or prior to
December 31, 2010, but the business combination was not
consummated prior to such time, and no qualified offer have been
previously consummated, the officers of the Company will take all
such action necessary to dissolve and liquidate the Company as
soon as reasonably practicable.
Notwithstanding, the Company will not be required to be dissolved
and liquidated if Overseas Toys, the Company's largest
shareholder, or any affiliate thereof will have made a qualified
offer no earlier than 120 days and at least 60 days prior to the
termination date, and will have consummated such qualified offer
by having purchased all shares of stock properly and timely
tendered and not withdrawn pursuant to the terms of the qualified
offer.
About Simon Worldwide
Prior to August 2001, Simon Worldwide, Inc. (OTC: SWWI) was a
multi-national, full service promotional marketing company. In
August 2001, McDonald's Corporation, the Company's principal
customer, terminated its 25-year relationship with the Company as
a result of the embezzlement by a former Company employee of
winning game pieces from McDonald's promotional games administered
by the Company. Other customers also terminated their
relationships with the Company, resulting in the Company no longer
having a business.
By April 2002, the Company had effectively eliminated a majority
of its ongoing promotions business operations and was in the
process of disposing of its assets and settling its liabilities
related to the promotions business and defending and pursuing
litigation with respect thereto. The Company has been able to
resolve a significant number of outstanding liabilities that
existed in August 2001 or arose subsequent to that date.
SIX FLAGS: ASM Capital, et al., Buys Claims in December
-------------------------------------------------------
The Clerk of the U.S. Bankruptcy Court for the District of
Delaware recorded transfers of 36 claims totaling $354,339 from
December 3, 2009 to January 6, 2010:
(a) ASM Capital, L.P.:
Transferee Claim No. Claim Amount
---------- --------- ------------
Anmar Foods Inc. - $1,491
Bleck & Bleck Architects - $1,500
Boston Business Journal 68 $6,750
Collinson Enterprises - $5,409
Don Donnelley Signs - $2,004
E-Zee Supply Co. 544 $3,474
G. Mann Painting - $5,000
Greenleaf Paper Converting - $1,248
J.L. Automotive - $2,696
Judge & Dolph - $2,090
Kaemmerlen Parts & Service, Inc. - $8,918
Lawrence Fabrics Structures, Inc. 129 $10,845
Pedro J Padilla - $1,320
Perfetti Van Meele USA Inc. 372 $2,426
Primo Painting Contractor, Inc. - $9,415
Risner Naukam Design 706 $2,798
USA Shade & Fabric Structures Inc. - $30,496
(b) ASM Capital III, LP:
Transferee Claim No. Claim Amount
---------- --------- ------------
Matrix Sales Group LLC 401 $22,968
Streeter Group Inc. - $7,992
V& H Construction Inc. 709 $27,758
(c) Claims Recovery Group LLC:
Transferee Claim No. Claim Amount
---------- --------- ------------
Commission Junction - $15,273
(d) Fair Harbor Capital, LLC:
Harbor Sales Co., Inc. - $2,785
Performance Lighting Inc. - $487
SDS Sportwear Ltd. 311 $1,024
XYZ Two Way Radio Service 206 $2,179
(e) TR Capital, LLC:
Transferee Claim No. Claim Amount
---------- --------- ------------
Pro Pump Inc. 523 $65,955
Pro Pump - $67,626
(f) U.S. Debt Recovery IV, LLC:
Transferee Claim No. Claim Amount
---------- --------- ------------
Ace Party Rental 658 $594
Advance TEC Industries - $388
Central Jersey Hot Mix Asphalt - $1,287
Curtis Lumber 2112 $13,248
Pueblo Building Materials, Inc. - $1,162
Royal Pet Supplies - $286
Theta Eta Sigma Chi - $891
Timothy Peters Plumbing & Heating - $23,756
Wilson Paving - $800
The Commonwealth of Massachusetts Department of Revenue withdrew
its claim under Claim Nos. 710 and 910, 718 and 918, and 721 and
910, totaling $1,285.
About Six Flags
Headquartered in New York City, Six Flags, Inc., is the world's
largest regional theme park company with 20 parks across the
United States, Mexico and Canada.
Six Flags filed for Chapter 11 protection on June 13, 2009 (Bankr.
D. Del. Lead Case No. 09-12019). Paul E. Harner, Esq., Steven T.
Catlett, Esq., and Christian M. Auty, Esq., at Paul, Hastings,
Janofsky & Walker LLP in Chicago, Illinois, act as the Debtors'
lead counsel. Daniel J. DeFranceschi, Esq., and L. Katherine
Good, Esq., at Richards, Layton & Finger, P.A., in Wilmington,
Delaware, act as local counsel. Cadwalader Wickersham & Taft LLP,
serves as special counsel. Houlihan Lokey Howard & Zukin Capital
Inc., serves as financial advisors, while KPMG LLC acts as
accountants. Kurtzman Carson Consultants LLC serves as claims and
notice agent. As of March 31, 2009, Six Flags had $2,907,335,000
in total assets and $3,431,647,000 in total liabilities.
Bankruptcy Creditors' Service, Inc., publishes Six Flags
Bankruptcy News. The newsletter provides gavel-to-gavel coverage
of the Chapter 11 proceedings undertaken by Six Flags Inc. and its
various affiliates. (http://bankrupt.com/newsstand/or 215/945-
7000).
SIX FLAGS: Moody's Assigns Corporate Family Rating at 'B1'
----------------------------------------------------------
Moody's Investors Service assigned Six Flags Theme Parks Inc. a
(P)B1 Corporate Family Rating and (P)B1 Probability of Default
Rating based on the company's proposed reorganized capital
structure upon emergence from Chapter 11 bankruptcy.
Additionally, Moody's assigned a (P)B1 rating to SFTP's proposed
$830 million senior secured bank credit facility. SFTP plans to
utilize the net proceeds from the credit facility and a
$450 million rights offering to repay in full the pre-petition
credit facility as part of the reorganization. The rating outlook
is stable.
Assignments:
Issuer: Six Flags Theme Parks Inc.
-- Corporate Family Rating, Assigned (P)B1
-- Probability of Default Rating, Assigned (P)B1
-- Senior Secured Bank Credit Facility, Assigned a (P)B1, LGD 3
- 47%
Outlook Actions:
Issuer: Six Flags Theme Parks Inc.
-- Outlook, Assigned Stable
The provisional ratings are prospective and are based on an
assumption that Six Flags, Inc.'s (SFTP's ultimate parent)
December 18, 2009 fourth amended joint plan of reorganization is
confirmed and becomes effective. Approximately $2 billion of the
company's $2.7 billion of pre-petition debt (including the
$307 million of PIERS preferred stock) would be eliminated under
the proposed plan, which is assumed to occur by the end of April
2010. The bankruptcy judge approved SFI's disclosure statement
and scheduled a confirmation hearing for March notwithstanding an
alternative plan proposed by a group of SFI's bondholders
purporting to have a blocking position with respect to one of
SFI's three unsecured classes. Assignment of definitive ratings
is subject to completion of the rights offering and SFI's POR (any
modifications arising from negotiations with the alternative plan
ad hoc creditors committee or other substantive changes would need
to be evaluated), a review of the final terms and conditions of
the debt instruments, and the company's liquidity position
including headroom under financial maintenance covenants. SFI and
its domestic subsidiaries filed for Chapter 11 bankruptcy on
June 13, 2009.
SFTP's (P)B1 CFR reflects the sizable attendance and revenue
generated from the geographically diversified regional amusement
park portfolio, lower margins relative to other regional theme
park operators, vulnerability to cyclical consumer spending, high
(albeit lower) leverage following the reorganization, and
liquidity and funding risks associated with minority holders'
annual right to put their share of partnership parks to the
company. The new management team installed after the Dan Snyder-
led proxy takeover at the end of 2005 has made progress in making
the parks more family-friendly and generating incremental revenue
from licensing and sponsorships. Moody's believes a continuation
of these actions along with alleviating the burden of the
previously over-levered capital structure provides an opportunity
to further improve park performance. High labor costs and less
pricing power than other regional park operators are nevertheless
likely to sustain a margin differential relative to properties
with a more stable operating track record. Debt-to-EBITDA
leverage remains high following the reorganization (approximately
5.5x projected 2009 incorporating Moody's standard adjustments,
the partnership park puts as debt and before deducting
reorganization related costs from EBITDA), but is expected to
decline to a high 4x range in 2010 as operating performance
improves and free cash flow is utilized to reduce debt. Avoiding
the adverse effects that swine flu had on visits to Six Flags'
parks in Texas and Mexico should lift attendance modestly in 2010.
The amusement park industry is mature and operators must compete
with a wide variety of leisure and entertainment activities to
generate consumer interest, with attendance growth in the low
single digit range likely over the next 3-5 years.
The senior secured credit facility consists of a $150 million
revolver and $680 million term loan. The facilities are secured
by a first lien on substantially all of the assets of wholly-owned
domestic subsidiaries and are guaranteed by SFI, Six Flags
Operations Inc. and SFTP's domestic subsidiaries.
Holders of minority interests in the partnership parks have a
right to put their stake to SFI annually in May. Approximately
$308 million of such minority interests are exercisable in May
2010 and Six Flags estimates the total potential obligation is
$356 million once all puts are exercisable by 2012. The amount of
puts exercised annually has generally been low (averaging less
than $5 million annually from 2002-2008 before increasing to
$66 million in 2009), in part because the holders receive a cash
flow stream on the investment that grows at the rate of inflation.
Moody's believes the company's reorganization plan assumption of
$30 million of puts exercised annually is reasonable, but Six
Flags would need to seek incremental external financing if the
full amount of the puts are exercised. Accordingly, Moody's
expects to assign a SGL-4 speculative-grade liquidity rating once
definitive ratings are assigned upon completion of the
reorganization.
The entities holding the partnership interest will establish a
$150 million multiple draw term loan facility with Time Warner in
conjunction with the reorganization to provide additional backstop
financing for the puts in addition to the existing $41 million
Time Warner loan utilized to fund a portion of the 2009 put
exercises. The new TW loan would be guaranteed on a senior
unsecured basis by SFTP and the guarantors of SFTP's credit
facility. SFI's share of the partnership park cash flow is
required to be used to fund the TW loans. The TW loan guarantees
are effectively subordinated to SFTP's credit facility with
respect to the wholly-owned parks, and the instruments are ranked
below the credit facility in Moody's quantitative notching model.
Moody's anticipates that if SFI is unable to satisfy the puts, a
default under SFTP's credit facilities would be triggered and the
company would lose its ownership interest in the partnership
parks. Moody's believes access to the incremental partnership
cash flow if the puts are exercised along with the lower leverage
profile subsequent to the reorganization increases the likelihood
that Six Flags would have sufficient access to new external
financing to help fund any put obligation not covered by the new
TW loan and the revolver. The refinancing risk is nevertheless
consistent with a CFR in the single-B range.
The stable rating outlook reflects Moody's expectation that Six
Flags will generate positive free cash flow and reduce debt-to-
EBITDA moderately below 5.0x in 2010, and that partnership put
exercises will be at a level manageable within the company's cash,
projected free cash flow and the new TW loan.
Moody's last rating action for Six Flags was on June 15, 2009,
when the PDR was lowered to D from Ca following the company's
announcement that it had filed a voluntary petition for
reorganization under Chapter 11 of the U.S. Bankruptcy Code. The
company's ratings were subsequently withdrawn on June 22, 2009.
Six Flags' ratings were assigned by evaluating factors that
Moody's considers relevant to the credit profile of the issuer,
such as the company's (i) business risk and competitive position
compared with others within the industry; (iii) capital structure
and financial risk; (iii) projected performance over the near to
intermediate term; and (iv) management's track record and
tolerance for risk. Moody's compared these attributes against
other issuers both within and outside Six Flags' core industry and
believes Six Flags' ratings are comparable to those of other
issuers with similar credit risk.
Six Flags, Inc., headquartered in New York City, is a regional
theme park company that operates 20 parks spread across North
America. The park portfolio includes 16 wholly-owned facilities
(including parks near New York City, Chicago and Los Angeles),
three consolidated partnership parks -- Six Flags over Texas, Six
Flags over Georgia, White Water Atlanta, as well as Six Flags
Great Escape Lodge, which is accounted for under the equity
method. Six Flags currently owns 52% of SFOT and approximately
29% of SFOG/White Water Atlanta. Revenue including the
consolidation of the partnership parks was $929 million for the
LTM ended 9/30/09.
SK FOODS: Michael Chavez Admits Getting Bribes from Broker
----------------------------------------------------------
The Associated Press reports that Michael Chavez, former
purchasing manager for Safety Inc., admitted receiving bribes from
an SK Foods sales broker between 2000 and 2007.
AP relates that Mr. Chavez was charged with two counts of wire
fraud and will plead guilty in a conspiracy to drive up food
prices nationwide. He faces a maximum 20 years in prison and
$250,000 fine, AP notes.
SK Foods LP runs a tomato processing facility in Lemoore. It
filed for Chapter 11 bankruptcy protection after being dropped by
its lending group. As reported by the Troubled Company Reporter
on May 12, 2009, creditors filed an involuntary Chapter 11
petition SK Foods LP and affiliate RHM Supply/ Specialty Foods
Inc. before the U.S. Bankruptcy Court for the Eastern District of
California. SK Foods had said that it was preparing to file a
voluntary Chapter 11 petition.
SMARTLENS CORPORATION: Case Summary & 20 Largest Unsec. Creditors
-----------------------------------------------------------------
Debtor: SmARTlens Corporation
511 Woodhaven Way
Athens, GA 30606
Bankruptcy Case No.: 09-25474
Chapter 11 Petition Date: December 31, 2009
Court: United States Bankruptcy Court
Northern District of Georgia (Gainesville)
Judge: Robert Brizendine
Debtor's Counsel: Herbert C. Broadfoot, II, Esq.
Ragsdale, Beals, Seigler, et al.
2400 International Tower
229 Peachtree Street, N.E.
Atlanta, GA 30303
Tel: (404) 588-0500
Fax: (404) 523-6714
Email: broadfoot@rbspg.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A full-text copy of the Debtor's petition, including a list of its
20 largest unsecured creditors, is available for free at:
http://bankrupt.com/misc/ganb09-25474.pdf
The petition was signed by Wallace Randall Abney, CEO of the
Company.
SOLAR ENERTECH: Converts Series A & B Convertible Notes
-------------------------------------------------------
Solar EnerTech Corp. on Friday announced significant changes to
the Company's Series A and Series B Convertible Notes and Series
A, Series B and Series C Warrants.
On January 7, 2010, the Company retired $11,559,145 in aggregate
outstanding principal owed under the Company's Series A and Series
B Convertible Notes by entering into a Series A and Series B Notes
Conversion Agreement with the holders of the Notes representing at
least 75% of the aggregate principal amounts outstanding under the
Notes.
Under the Conversion Agreement, all of the Notes have been amended
and election has been taken such that all outstanding principal
and all accrued but unpaid interest with respect to all of the
outstanding Notes have been automatically converted into shares of
the Company's common stock at a conversion price per share of
common stock of $0.15 effective as of January 7, 2010. The
holders of the Notes have agreed to waive all accrued and unpaid
late charges instead of converting them into stock. No further
payments are owing or payable under the Notes.
Approximately 78,277,055 shares of the Company's common stock are
issuable in the conversion. As of the Conversion Date, each Note
no longer represents a right to receive any cash payments
(including, but not limited to, interest payments) and only
represents a right to receive the shares of common stock into
which such Note has been automatically converted into.
On January 7, 2010, the Company also entered into an Amendment to
the Series A, Series B and Series C Warrants with the holders of
at least a majority of the common stock underlying each of the
Company's outstanding Series A Warrants, Series B Warrants and
Series C Warrants. The Warrant Amendment reduces the exercise
price for all of the Warrants to $0.15, removes certain maximum
ownership provisions and removes antidilution provisions for
lower-priced security issuances.
In addition, the Board of Directors appointed David A. Field and
David Anthony to the Company's Board of Directors, effective upon
the date of the Company's filing of its Form 10-K for the fiscal
year ended September 30, 2009. Mr. Field is currently the
President and Chief Executive Officer of Applied Solar, LLC and a
director of ThermoEnergy Corporation. Mr. Anthony is currently
the Managing Director of 21 Ventures and sits on the boards of
ThermoEnergy Corporation, Agent Video Intelligence, Axion Power
International, Inc., 3GSolar, BioPetroClean, and VOIP Logic.
Commenting on the restructuring, Leo Young, Chief Executive
Officer of Solar EnerTech said, "We are pleased to be able to
restructure and retire our Series A and Series B Convertible
Notes. Our efforts to improve our capital structure will improve
our balance sheet and help support our strategic expansion and
long term growth initiatives."
Commenting on the addition of Messrs. Field and Anthony, Mr. Young
said, "We are pleased to announce that David Field and David
Anthony have joined our Board of Directors. We believe they will
be wonderful additions and look forward to their input and
expertise as we endeavor to continue to grow Solar EnerTech."
About Solar EnerTech
Solar EnerTech Corp. (OTC Bulletin Board: SOEN) is a photovoltaic
solar energy cell manufacturing enterprise incorporated in the
United States with its corporate office in Mountain View,
California. The Company has established a 67,107-square-foot
manufacturing facility at Jinqiao Modern Technology Park in
Shanghai, China. The Company currently has two 25MW solar cell
production lines and a 50MW solar module production facility.
Solar EnerTech has also established a Joint R&D Lab at Shanghai
University to develop higher efficiency cells and to put the
results of that research to use in its manufacturing processes.
Led by one of the industry's top scientists, the Company expects
its R&D program to help bring Solar EnerTech to the forefront of
advanced solar technology research and production.
SONTERRA ENERGY: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: Sonterra Energy Corporation
45 NE Loop 410, Suite 495
San Antonio, TX 78216
Bankruptcy Case No.: 10-50129
Chapter 11 Petition Date: January 7, 2010
Court: United States Bankruptcy Court
Western District of Texas (San Antonio)
Debtor's Counsel: R. Glen Ayers, Jr., Esq.
Langley and Banack, Inc
745 E Mulberry, 9th Floor
San Antonio, TX 78212
Tel: (210) 736-6600
Fax: (210) 735-6889
Email: gayers@langleybanack.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A full-text copy of the Debtor's petition, including a list of its
20 largest unsecured creditors, is available for free at:
http://bankrupt.com/misc/txwb10-50129.pdf
The petition was signed by Michael R. Ward, president and CEO of
the Company.
SPANSION INC: To Purchase Distribution Business of Japan Unit
-------------------------------------------------------------
Spansion Inc. has reached verbal agreement to acquire the
distribution business of its former subsidiary, Spansion Japan,
that is the subject of a proceeding under the Japanese Corporate
Reorganization Law pending in the Tokyo District Court. Spansion
also verbally approved a new foundry services agreement which
would include wafer and sort services from Spansion Japan. In a
hearing before the U.S. Bankruptcy Court today, a representative
of GE Financial Services Corporation, the agent for Spansion
Japan's syndicate of secured lenders, announced their support for
the agreements, subject to final approval of the syndicate
members. The agreements remain subject to completion of
definitive agreements and approval by the U.S. Bankruptcy Court
with jurisdiction over Spansion's chapter 11 case as well as the
Tokyo District Court.
"Upon court approval, these agreements finalize Spansion's plan
for manufacturing services and on-going support for Japanese
customers as it continues its planned emergence from Chapter 11 in
the first quarter of 2010," said John Kispert, Spansion president
and CEO. "We are pleased that this agreement will also help
enable Spansion Japan to reorganize as a stand-alone entity."
Spansion Japan would retain certain unsecured claims against
Spansion Inc. that could be compromised under Spansion's proposed
plan of reorganization. Any awards related to these claims would
be treated as pre-petition obligations and would not affect the
company's capital structure upon emergence from Chapter 11
bankruptcy. The complete definitive terms and conditions of the
settlement will be filed with the U.S. Bankruptcy Court on or
before January 15, 2010. The U.S. Bankruptcy Court has scheduled a
hearing to consider approval of the settlement on January 29,
2010.
About Spansion Inc.
Spansion Inc. (Pink Sheets: SPSNQ) -- http://www.spansion.com/--
is a Flash memory solutions provider. Spansion is a former joint
venture of AMD and Fujitsu.
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)
STARPOINTE ADERRA: Corriente Residences Now Managed Condo Capital
-----------------------------------------------------------------
Corriente Residences, a 192-unit, eight-building condominium
community in Scottsdale, Ariz., is now under the management of one
of the nation's most experienced, well-capitalized condominium
development companies - Denver-based Condo Capital Solutions
(CCS).
Corriente Residences went to foreclosure sale December 30, 2009
and CCS is now the owner. CCS purchased the Starpointe
Communities construction loans for both Corriente and Aderra
Condominium Residences last August for an undisclosed price.
"Condo Capital Solutions saw this as an opportunity to expand its
presence in Arizona and to bring financial strength, 25 years of
development expertise and a successful marketing approach to the
marketplace," said Holly Rasmussen, vice president of sales and
marketing for CCS.
Starpointe Aderra Condominiums Limited Partnership decided to file
for bankruptcy protection on December 30, 2009. The Aderra
Condominium Residences, at 11640 N. Tatum Blvd. in Phoenix,
continues to be managed by Starpointe Communities.
Corriente Residences, located at 7601 E. Indian Bend Road in
Scottsdale, offers one- and two-bedroom condominium homes. More
than 50 of the 72 completed units have been sold. CCS intends to
continue to complete the five remaining buildings as the market
demands.
To date, CCS has acquired completed and partially completed
condominium projects, valued at approximately $150 million in the
past year.
The company was recently recognized in the national media
spotlight for the $20.3 million purchase of 64 unsold condominium
units at Bridgeview Condominiums on the south shore of Tempe Town
Lake.
The company also owns and is marketing two projects in Tucson -
Rio del Sol Condominium Homes and Boulder Canyon at La Reserve.
About Corriente Residences
Corriente Residences is conveniently located in the heart of
Scottsdale, Arizona, just minutes away from world-class shopping,
dining and outdoor recreation. Situated on Indian Bend Road
between Scottsdale Road and the Loop 101, Corriente is adjacent to
Silverado Golf Course and across the street from McCormick Ranch
Golf Course.
About Condo Capital Solutions
Denver-based Condo Capital Solutions specializes in investing in
distressed real estate with a focus on condominium projects. The
company has developed a portfolio approaching 40 communities
nationwide, including projects in Arizona, Colorado, Florida and
Texas.
STARPOINTE ADERRA: Asks Court's Permission to Use Cash Collateral
-----------------------------------------------------------------
Starpointe Aderra Condominiums, L.P., seeks authority from the
U.S. Bankruptcy Court for the District of Arizona to use the cash
collateral securing their obligation to CCS Arizona II, LLC.
In June 2005, the Debtor entered into three loan transactions with
Ohio Savings Bank ("OSB") to fund the purchase and construction of
the Starpointe Aderra development. The complete Loan Agreement
had three notes, a Land Loan, in the original amount of
$20,000,000; a Mezzanine Loan in the original amount of
$3,325,000; and a Unit Construction Loan, in the original amount
of $15,000,000. In January 2007, the parties modified the Loan
Agreement to increase the principal amount of the Unit
Construction Loan to $22,877,000. Subsequent to the 2007 Loan
modification, AmTrust Bank took over OSB in a banking merger
between the parties. In August of 2009, CCS purchased the Loan
Agreement (all three notes) from AmTrust for $18,424,974. At the
time of the purchase, the outstanding loan balance was
$27,015,831.83
Warren J. Stapleton, Esq., at Osborn Maledon, P.A., the attorney
for the Debtor, explains that the Debtor needs the money to fund
its Chapter 11 case, pay suppliers and other parties. The Debtors
will use the collateral pursuant to a weekly budget, a copy of
which is available for free at:
http://bankrupt.com/misc/STARPOINTE_budget.pdf
In exchange for using the cash collateral, the Debtors seek to
grant adequate protection to the prepetition lenders by:
(1) making periodic cash payments to the creditor sufficient to
protect the creditor's interest in the collateral from any
decrease in value; or (2) providing an additional or replacement
lien sufficient to protect the creditor's interest in the
collateral from any decrease in value; or (3) granting the
creditor such other relief as would result in the realization of
the indubitable equivalent of the creditor's interest in the
collateral.
The Debtor proposes that these are sufficient to adequately
protect CCS's interest in its collateral under the Deed of Trust
and Assignment of Rents:
(a) First, Starpointe Aderra will continue to pay CCS the
release prices for all condominium units sold during the
course of the case -- these prices range from $74,600 to
$148,000 per unit based on the type and how many of those
units have previously been sold.
(b) Second, Starpointe Aderra will make a monthly payment to
CCS of 4.25% of the remaining principal balance on the
loans (after the prior months' payments from the rent
and the condominium unit sales). This 'interest' payment
averages to $65,565 per month during the first year of
the Debtor's projections.
The remaining funds will be used to operate the business,
including payment of homeowner's association fees (HOA), taxes,
marketing costs, and maintenance costs for the property.
CCS has objected to the Debtor's request to use collateral, saying
that in discussions between the parties, CCS has learned that the
Debtor hasn't unequivocally taken the position that CCS is fully
secured by an equity cushion, and reserves the right, instead, to
take the position in the future that in fact CCS is not fully
secured.
CCS says that if the Debtor is allowed to retain any net proceeds
from unit sales, CCS faces a significant risk its interests in its
collateral will not be adequately protected. Thus, for purposes
of an interim order authorizing use of cash collateral, the Debtor
should be required to pay 100% of the net proceeds of each unit
sale to CCS. At a minimum, the Debtor should be required to pay
CCS the amount which CCS has calculated would be necessary to
fully retire its secured debt from unit sales. CCS is refining
its projections, but believes, at this time, that that amount is
at least $450,000. "If, however, payment to CCS in any amount
less than 100% of the Debtor's net monthly revenues after payment
of operating expenses is permitted, then the Debtor should be
required to make interest payments to CCS as additional adequate
protection. Those interest payments should be calculated at the
contract rates provided for in the loan documents, and should be
based on the full amount due under the loans, not CCS' purchase
price for the loans," CCS states.
CCS believes that other line items in the Debtor's proposed
operating budget are inflated and not fairly reflective of the
appropriate cost of the Debtor's operations. CCS is willing to
consent to the balance of the budget, for the month of January
only, pending receipt of futher information from the Debtor
supporting its operating expenses.
CCS is represented by Caroline C. Fuller, Esq, at Fairfield and
Woods, P.C.
About Starpointe Aderra
Scottsdale, Arizona-based Starpointe Aderra Condominiums Limited
Partnership is an upscale community of 312 homes in 13 three-
storey buildings. The Company filed for Chapter 11 bankruptcy
protection on December 29, 2009 (Bankr. D. Ariz. Case No. 09-
33625). Warren J. Stapleton, Esq., at Osborn Maledon, assists the
Company in its restructuring effort. The Company listed
$10,000,001 to $50,000,000 in assets and $10,000,001 to
$50,000,000 in liabilities.
STARPOINTE ADERRA: Asks for Court Okay to Sell Two Condominiums
---------------------------------------------------------------
Starpointe Aderra Condominiums Limited Partnership has sought
authorization from the U.S. Bankruptcy Court for the District Of
Arizona for the third party sale of two condominiums, Units 3010
and 3030.
Debtor has filed a motion to retain Starpointe Marketing
Concepts, LLC ("SMC") as its broker post-petition to market the
sale of its condominium Units. SMC has marketed the Debtor's
condominiums and received acceptable purchase offers for two
units, numbers 3010 (the Sage 2 model) and 3030 (the Azure model).
The proposed buyers for Unit 3010 are Frank and Cheryl Cancelli,
who have agreed to a purchase price of $245,000. The sale of unit
3010 to the Cancellis will result in net proceeds after costs of
sale of $213,050. Of this amount, CCS will be entitled to a
contractual release price of $134,200.
The proposed buyer for Unit 3030 is Lauren Curci Worthington, who
has agreed to a purchase price of $320,000. The sale of unit 3030
to Ms. Worthington will result in net proceeds after costs of sale
of $288,900. Of this amount, CCS will be entitled to a
contractual release price of $148,000.
If the sale of unit 3010 is approved by the Court, the transaction
is set to close on or before January 31, 2010, or as otherwise
agreed by the Debtor and the Cancellis. If the sale of unit 3030
is approved by the Court, the transaction will close on or before
a date mutually agreed to by the Debtor and Ms. Worthington (the
original closing date of December 28, 2009, having already
passed). The Debtor says, "We've talked to both Buyers and
they're ready to close escrow in January 2010."
The units will be sold free and clear of liens, claims, and
encumbrances, with CCS's lien to attach to the extent of the
release prices, which release prices will be paid to CCS at the
close of escrow.
Any claims of CCS to any remaining sale proceeds will be preserved
and addressed in any cash collateral agreements or orders approved
by this Court.
The Debtor's agreement with SMC (which has been submitted to the
Court for approval) provides that SMC will be compensated at a
rate of 3% of the sale price of any condominium sold as a result
of its efforts. The 3% brokerage fee is a standard industry rate.
Contingent upon the Court approving the sales of Unit 3010 to the
Cancellis for a purchase price of $245,000, and of Unit 3030 to
Ms. Worthington for a purchase price of $320,000, SMC is entitled
to fees of $7,350 and $9,600, respectively. The Debtor requests
approval of the fees, and authorization for payment to SMC of such
amounts at closing. The Debtor further requests a waiver of the
10-day stay to allow the order approving the Debtor's request to
sell the condominiums to take effect immediately.
Scottsdale, Arizona-based Starpointe Aderra Condominiums Limited
Partnership is an upscale community of 312 homes in 13 three-
storey buildings. The Company filed for Chapter 11 bankruptcy
protection on December 29, 2009 (Bankr. D. Ariz. Case No. 09-
33625). Warren J. Stapleton, Esq., at Osborn Maledon, assists the
Company in its restructuring effort. The Company listed
$10,000,001 to $50,000,000 in assets and $10,000,001 to
$50,000,000 in liabilities.
STARPOINTE ADERRA: Sec. 341 Creditors Meeting Set for Feb. 2
------------------------------------------------------------
The U.S. Trustee for Region 14 will convene a meeting of
Starpointe Aderra Condominiums Limited Partnership's creditors on
February 2, 2010, at 11:00 a.m. at US Trustee Meeting Room, 230 N.
First Avenue, Suite 102, Phoenix, AZ (341-PHX).
This is the first meeting of creditors required under Section
341(a) of the U.S. Bankruptcy Code in all bankruptcy cases.
All creditors are invited, but not required, to attend. This
Meeting of Creditors offers the one opportunity in a bankruptcy
proceeding for creditors to question a responsible office of the
Debtor under oath about the company's financial affairs and
operations that would be of interest to the general body of
creditors.
Scottsdale, Arizona-based Starpointe Aderra Condominiums Limited
Partnership is an upscale community of 312 homes in 13 three-
storey buildings. The Company filed for Chapter 11 bankruptcy
protection on December 29, 2009 (Bankr. D. Ariz. Case No. 09-
33625). Warren J. Stapleton, Esq., at Osborn Maledon, assists the
Company in its restructuring effort. The Company listed
$10,000,001 to $50,000,000 in assets and $10,000,001 to
$50,000,000 in liabilities.
STARPOINTE ADERRA: Taps Osborn Maledon as Bankruptcy Counsel
------------------------------------------------------------
Starpointe Aderra Condominiums, L.P., sought and obtained
permission from the Hon. Randolph J. Haines of the U.S. Bankruptcy
Court for the District of Arizona to employ Osborn Maledon, P.A.,
as bankruptcy counsel, effective as of the filing of the Chapter
11 petition.
Osborn Maledon will, among other things:
a. assist the Debtor in preparation of the Debtor's voluntary
Chapter 11 petition and statements and schedules;
b. assist the Debtor in the formulation, preparation and
prosecution of a plan of reorganization and related
disclosure statement, as well as such agreement(s), if
any, as may be necessary or proper to implement the plan;
c. assist the Debtor's conduct of litigation, and other
matters related to the administration and conduct of
Debtor's Chapter 11 case; and
d. assist and advise the Debtor in its discussions with
creditors relating to the administration of this case.
Warren J. Stapleton, a partner of Osborn Maledon, said that says
that the firm will be paid based on the hourly rates of its
personnel:
Partners & Attorneys of Counsel $245-$565
Associates $190-$250
Paralegals $55-$185
Mr. Stapleton assured the Court that Osborn Maledon is
"disinterested" as that term is defined in Section 101(14) of the
Bankruptcy Code.
Scottsdale, Arizona-based Starpointe Aderra Condominiums Limited
Partnership is an upscale community of 312 homes in 13 three-
storey buildings. The Company filed for Chapter 11 bankruptcy
protection on December 29, 2009 (Bankr. D. Ariz. Case No. 09-
33625). Warren J. Stapleton, Esq., at Osborn Maledon, assists the
Company in its restructuring effort. The Company listed
$10,000,001 to $50,000,000 in assets and $10,000,001 to
$50,000,000 in liabilities.
STAR TRIBUNE: M. Klingensmith Named New Publisher
-------------------------------------------------
Minneapolis/St. Paul Business Journal reports that Star Tribune
named former Time Inc. executive Michael Klingensmith as publisher
to replace Chris Harte.
Headquartered in Minneapolis, Minnesota, The Star Tribune Company
-- http://www.startribune.com/-- operates the largest newspaper
in the state of Minnesota and published seven days each week in an
edition for the Minneapolis-Saint Paul metropolitan area.
The Company and its affiliate, Star Tribune Holdings Corporation,
filed for Chapter 11 protection on January 15, 2009 (Bankr.
S.D.N.Y. Lead Case No. 09-10244). Attorneys at at Davis Polk &
Wardwell, represented the Debtors in their restructuring effort.
Blackstone Advisory Services L.P. served as financial advisor.
The Garden City Group, Inc., served as noticing and claims agent.
Attorneys at Lowenstein Sandler PC, represented the official
committee of unsecured creditors. In its bankruptcy petition,
Star Tribune listed assets and debts between $100 million and
$500 million each.
SUMI PRINTING: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: Sumi Printing and Blinding, Inc.
dba SUMI Office Services
351 E. Walnut Street
Carson, CA 90746
Bankruptcy Case No.: 10-10458
Chapter 11 Petition Date: January 6, 2010
Court: United States Bankruptcy Court
Central District of California (Los Angeles)
Judge: Vincent P. Zurzolo
Debtor's Counsel: Dennis E. Mcgoldrick, Esq.
350 S Crenshaw Blvd Ste A207B
Torrance, CA 90503
Tel: (310) 328-1001
Email: dmcgoldricklaw@yahoo.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A full-text copy of the Debtor's petition, including a list of its
20 largest unsecured creditors, is available for free at:
http://bankrupt.com/misc/cacb10-10458.pdf
The petition was signed by Ronald Sumi, chief executive officer of
the Company.
SUMMIT MATERIALS: Moody's Assigns 'B2' Corporate Family Rating
--------------------------------------------------------------
Moody's Investors Service assigned a B2 corporate family rating
and a B3 probability of default rating to Summit Materials KY
Acquisitions LLC, as well as a B2 rating to the company's senior
secured credit facilities consisting of $137 million term loan and
$37 million revolving credit facility. The rating outlook is
stable. This is the first time that Moody's has rated the
company.
The B2 Corporate Family and B3 Probability of Default ratings
balance the company's small scale, limited geographic
diversification, and prospective acquisition, integration, and
execution risks against the company's experienced management team,
reasonable opening credit metrics, and likely equity support for
acquisitions from its majority owner, Blackstone. The ratings
presume that Summit completes the acquisition of Hinkle
Contracting Corporation along the terms the company has outlined,
including equity funding for a portion of the transaction. The
company's acquisition driven growth strategy presents a range of
credit risks in the near term, including potential changes in the
balance of its capital structure, and integration and execution
risks. However, over a longer time horizon, if well executed, the
plan will help the company build scale and improve its risk
profile.
The stable outlook presumes that the company will maintain its
relatively modest financial leverage profile even as it seeks
acquisition driven growth by focusing on reasonably priced
acquisition opportunities and funding a portion of the
acquisitions with equity provided by its majority owner. The
stable outlook also anticipates that management will prove able to
efficiently integrate and operate newly acquired properties.
These ratings/assessments were assigned:
* Corporate Family Rating B2;
* Probability of Default Rating B3;
* $137 million senior secured term loan -- B2, LGD-3, 33%;
* $37 million senior secured revolving credit facility -- B2, LGD-
3, 33%.
Summit Materials, headquartered in Washington D.C. is a
manufacturer of asphalt, building aggregates and other building
materials.
SUNGARD DATA: Bank Debt Trades at 2% Off in Secondary Market
------------------------------------------------------------
Participations in a syndicated loan under which SunGard Data
Systems, Inc., is a borrower traded in the secondary market at
98.08 cents-on-the-dollar during the week ended Friday, Jan. 8,
2010, according to data compiled by Loan Pricing Corp. and
reported in The Wall Street Journal. This represents increase of
2.27 percentage points from the previous week, The Journal
reports. The Company pays 362.5 basis points above LIBOR to
borrow under the loan facility, which matures on Feb. 28, 2016.
The bank debt carries Moody's Ba3 rating and Standard & Poor's BB
rating. The debt is one of the biggest gainers and losers among
160 widely quoted syndicated loans with five or more bids in
secondary trading for the week ended Jan. 8, 2010.
SunGard Data Systems, Inc., headquartered in Wayne, Pennsylvania,
is a provider of software and IT services to the financial
services industry well as higher education institutions and the
public sector. SunGard also provides disaster recovery/business
continuity services through its Availability Services division.
As stated by the Troubled Company Reporter on Sept. 1, 2009,
Moody's Investors Service affirmed SunGard's 'B2' corporate family
and probability of default ratings, along with its SGL-2
speculative grade liquidity rating.
Standard & Poor's Ratings Services rates (i) SunGard's corporate
rating at 'B+', and its (ii) $2.7 billion tranche B secured term
loan maturing Feb. 28, 2016, and the $580 million secured
revolving credit facility maturing May 11, 2013, at 'BB'.
SWIFT TRANSPORTATION: Bank Debt Trades at 8% Off
------------------------------------------------
Participations in a syndicated loan under which Swift
Transportation Co., Inc., is a borrower traded in the secondary
market at 92.25 cents-on-the-dollar during the week ended Friday,
Jan. 8, 2010, according to data compiled by Loan Pricing Corp. and
reported in The Wall Street Journal. This represents increase of
1.92 percentage points from the previous week, The Journal
reports. The loan matures on March 15, 2014. The Company pays
325 basis points above LIBOR to borrow under the facility. The
debt carries Moody's B3 rating and Standard & Poor's B- rating.
The debt is one of the biggest gainers and losers among 160 widely
quoted syndicated loans with five or more bids in secondary
trading for the week ended Jan. 8, 2010.
Swift Transportation Co., Inc. -- http://www.swifttrans.com/--
hauls freight such as building materials, paper products, and
retail merchandise throughout the U.S. and in Mexico. The Company
operates a fleet of about 18,000 tractors and 48,000 trailers from
a network of about 40 terminals. Its services include dedicated
contract carriage, in which drivers and equipment are assigned to
a customer long-term. Besides standard dry ans, Swift's fleet
includes refrigerated, flatbed, and other specialized trailers, as
well as about 5,800 intermodal containers.
SWORDFISH FINANCIAL: June 30 Balance Sheet Upside-Down by $2.8MM
----------------------------------------------------------------
Swordfish Financial, Inc.'s consolidated balance sheets at
June 30, 2009, showed total assets of $2,945,869 and total
liabilities of $5,722,614, resulting in a $2,776,745 shareholders'
deficit.
The Company's consolidated balance sheets at June 30, 2009, also
showed strained liquidity with $2,808,277 in total current assets
available to pay $3,953,604 in total current liabilities.
The Company reported a net loss of $4,784,466 on sales of
$2,021,692 for the three months ended June 30, 2009, compared to
net income of $73,996 on sales of $1,450,166 for the same period
of 2008.
Net sales gains for the second quarter were primarily driven from
acquisitions during the past two years.
Results for the three months ended June 30, 2009, includes a
$3,963,708 provision for impairment of assets, which was due to
the M&I Bank's taking over the Company's assets and operations and
liquidating the assets to recover approximately $1,699,000 owed by
the Company.
For the six months ended June 30, 2009, the Company's net loss was
$5,625,045 on sales of $3,900,753, compared to a net loss of
$518,282 on sales of $3,817,231 for the same period last year.
Going Concern Doubt
The Company incurred net losses of $5,625,045 and $518,282,
respectively, for the six months ended June 30, 2009, and 2008,
and had an accumulated deficit of $10,293,561 as of June 30, 2009.
The Company is currently in default of the remaining $450,000 of
the note with a related party.
The Company is currently in default on its line of credit with a
bank and in August 2008 it entered into a voluntary surrender
agreement allowing the bank with its superior lien position to
assume control of the Company's assets and operations until it
liquidates sufficient assets to pay off the line of credit which
is $1,698,995 at June 30, 2009.
"Despite cost reduction initiatives, the Company will be unable to
pay its obligations in the normal course of business or service
its debt in a timely manner throughout 2009 without raising
additional debt or equity capital."
"Our recurring net losses and inability to generate sufficient
cash flows to meet our obligations and sustain our operations
raise substantial doubt about our ability to continue as a going
concern."
About Swordfish Financial
Swordfish Financial, Inc. (OTC Pinksheets: SWRF) is a newly formed
diversified financial asset recovery company. SFI primary revenue
source will come from the recovery and retrieval of orphaned and
dormant assets of high net worth individuals and companies held in
financial institutions around the world.
The Company was formerly known as Nature Vision, Inc., a Minnesota
corporation which designed, manufactured and marketed outdoor
recreation products primarily for the sport fishing and hunting
markets.
On August 14, 2009, Nature Vision closed a stock purchase
agreement with Swordfish Financial, Inc. pursuant to which the
Company sold an aggregate of 10,987,417 shares of its common stock
in exchange for a $3,500,000 promissory note payable in two
installments of $1,750,000 each with the first installment being
45 days from the date of the note and the second installment being
120 days from the date of the note.
On August 14, 2009, simultaneously with the signing of the
Swordfish Financial agreement, Nature Vision entered into a
Voluntary Surrender Agreement with its primary lender, M&I
Business Credit LLC, who as of August 14, 2009, was owed
approximately $1,800,000 by the Company. In accordance with the
Voluntary Surrender Agreement, the Company agreed to tender to the
creditor possession of the Company's premises and all of the
Company's collateral, which was basically all of the Company's
assets.
TAYLOR ANGELOS: Case Summary & 17 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: Taylor Angelos
aka Darlene Angelos
aka Darlene Henry
PO Box 1202
Topanga, CA 90290
Bankruptcy Case No.: 09-27618
Chapter 11 Petition Date: December 30, 2009
Court: United States Bankruptcy Court
Central District of California (San Fernando Valley)
Judge: Maureen Tighe
Debtor's Counsel: Philip D. Dapeer, Esq.
2625 Townsgate Rd., Ste 330
Westlake Village, CA 91361
Tel: (323) 954-9144
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
According to the schedules, the Company has assets of $1,158,384
and total debts of $1,715,880.
A full-text copy of the Debtor's petition, including a list of its
17 largest unsecured creditors, is available for free at:
http://bankrupt.com/misc/cacb09-27618.pdf
The petition was signed by Taylor Angelos.
THERMOENERGY CORP: Sept 30 Balance Sheet Upside-Down by $13.3 MM
----------------------------------------------------------------
ThermoEnergy Corporation's consolidated balance sheets at
September 30, 2009, showed total assets of $1,368,000 and total
liabilities of $14,717,000, resulting in a stockholders' deficit
of $13,349,000.
At September 30, 2009, the Company's consolidated balance sheets
also showed strained liquidity with $955,000 in total current
assets of $955,000 available to pay $13,167,000 in total current
liabilities.
The Company reported a net loss of $4,623,000 on contract and
grant income of $970,000 for the three months ended September 30,
2009, compared to a net loss of $2,662,000 on contract and grant
income of $326,000 for the same period of 2008.
Results for the current quarter include a loss on extinguishment
in the amount of $1,208,000, absent in 2008.
For the nine months ended September 30, 2009, contract and grant
income was $2,608,000 and net loss was $10,055,000, compared to
contract and grant income of $1,511,000 and net loss of $8,266,000
for the same period last year.
A full-text copy of the Company's quarterly report is available at
no charge at http://researcharchives.com/t/s?4d28
Going Concern Issues
The Company has incurred net losses since inception and will
require substantial additional capital to continue
commercialization of the technologies and to fund the Company's
liabilities, which included approximately $2,442,000 of payroll
tax liabilities, $3,708,000 of convertible debt securities in
default, net of debt discounts aggregating $209,000 and $3,154,000
of contingent liability reserves. In addition, the Company may be
subject to tax liens if it cannot satisfactorily settle the
outstanding payroll tax liabilities and may also face criminal
and/or civil action with respect to the impact of the payroll tax
matters
The independent auditor of the Company, in its report for the
fiscal year ended December 31, 2008, issued a "going concern"
opinion regarding the Company, stating that there is a substantial
doubt that the Company can continue as a going concern.
About Thermoenergy Corp.
Based in Little Rock, Arkansas, ThermoEnergy Corp., (OTC: TMEN) --
http://www.thermoenergy.com/-- is a diversified technologies
company, engaged in the commercialization of patented and/or
proprietary municipal and industrial wastewater treatment and
power generation technologies.
TIEGS FAMILY: Files Schedules of Assets & Liabilities
-----------------------------------------------------
Tiegs Family Trust has filed with the U.S. Bankruptcy Court for
the District of Colorado its schedules of assets and liabilities,
disclosing:
Name of Schedule Assets Liabilities
---------------- ------ -----------
A. Real Property $16,655,000.00
B. Personal Property $1,694,341.23
C. Property Claimed as
Exempt
D. Creditors Holding
Secured Claims $12,889,334.70
E. Creditors Holding
Unsecured Priority
Claims $11,038.10
F. Creditors Holding
Unsecured Non-priority
Claims $1,194,714.79
------------- ------------
TOTAL $18,349,341.23 $14,095,087.59
Colorado Springs, Colorado-based Tiegs Family Trust filed for
Chapter 11 bankruptcy protection on November 23, 2009 (Bankr. D.
Colo. Case No. 09-35050). Julie B. Cliff, Esq., at Bettencourt
Cliff, P.C., assists the Company in its restructuring effort.
According to the schedules, the Company has assets of $16,655,259,
and total debts of $13,406,089.
TIEGS FAMILY: No Creditors Committee Appointed by U.S. Trustee
--------------------------------------------------------------
Charles F. McVay, the U.S. Trustee for Region 19, said that there
were too few unsecured creditors who are willing to serve on
Creditors' Committees for Tiegs Family Trust. Accordingly, no
statutory committee of unsecured creditors was named by the U.S.
Trustee.
Colorado Springs, Colorado-based Tiegs Family Trust filed for
Chapter 11 bankruptcy protection on November 23, 2009 (Bankr. D.
Colo. Case No. 09-35050). Julie B. Cliff, Esq., at Bettencourt
Cliff, P.C., assists the Company in its restructuring effort.
According to the schedules, the Company has assets of $16,655,259,
and total debts of $13,406,089.
TIMBERLINE HOLDINGS: Voluntary Chapter 11 Case Summary
------------------------------------------------------
Debtor: Timberline Holdings, LP
11144 Fuqua Street, Suite 200
Housotn, TX 77089
Bankruptcy Case No.: 10-30239
Chapter 11 Petition Date: January 5, 2010
Court: United States Bankruptcy Court
Southern District of Texas (Houston)
Judge: Wesley W. Steen
Debtor's Counsel: Leonard H. Simon, Esq.
Pendergraft & Simon L.L.P.
2777 Allen Parkway, Ste 800
Houston, TX 77019
Tel: (713) 737-8207
Fax: (832) 202-2810
Email: lsimon@pendergraftsimon.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Debtor did not file a list of its 20 largest unsecured
creditors when it filed its petition.
The petition was signed by Ben Azopardi.
TLC VISION: Ch. 11 Plan Leaves Shareholders in Dust
---------------------------------------------------
Hoping for a swift emergence from bankruptcy, TLC Vision Corp. has
submitted a prepackaged plan that would restructure approximately
$105 million in prepetition debt, give unsecured creditors a
severe haircut and wipe out the laser eye surgery provider's
existing shareholders, Law360 reports.
TLCVision -- http://www.tlcvision.com/-- is North America's
premier eye care services company, providing eye doctors with the
tools and technologies needed to deliver high-quality patient
care. Through its centers' management, technology access service
models, extensive optometric relationships, direct to consumer
advertising and managed care contracting strength, TLCVision
maintains leading positions in Refractive, Cataract and Eye Care
markets.
TLC Vision (USA) Corporation, and two of its corporate affiliates
filed petitions for Chapter 11 on Dec. 21, 2009 (Bankr. D. Del.
Case No. 09-14473). The petition says assets and debts are
$100 million to $500 million.
The Company's lead U.S. restructuring counsel is the law firm of
Proskauer Rose LLP and Canadian restructuring counsel is the law
firm of Torys LLP. The Company's financial advisor is Conway Del
Genio Gries & Co., LLC. Epiq Bankruptcy Solutions is claims and
notice agent.
TONJA LYNN DEMOFF: Case Summary & 14 Largest Unsecured Creditors
----------------------------------------------------------------
Debtor: Tonja Lynn Demoff
220 Disney
Sedona, AZ 86336
Bankruptcy Case No.: 10-00303
Chapter 11 Petition Date: January 6, 2010
Court: United States Bankruptcy Court
District of Arizona (Phoenix)
Debtor's Counsel: Pernell W. Mcguire, Esq.
Mcguire Gardner, PLLC
320 N. Leroux, Suite A
Flagstaff, AZ 86001
Tel: (928) 779-1173
Fax: (928) 779-1175
Email: pmcguire@mcguiregardner.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A full-text copy of the Debtor's petition, including a list of its
14 largest unsecured creditors, is available for free at:
http://bankrupt.com/misc/azb10-00303.pdf
The petition was signed by Tonja Lynn Demoff.
TRC NUTRITIONAL: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: TRC Nutritional Labs, Inc.
12320 E. Skelly Drive
Tulsa, OK 74128
Bankruptcy Case No.: 09-14113
Chapter 11 Petition Date: December 31, 2009
Court: United States Bankruptcy Court
Northern District of Oklahoma (Tulsa)
Judge: Dana L. Rasure
Debtor's Counsel: Mark A. Craige, Esq.
MorrelSaffaCraige, PC
3501 S. Yale
Tulsa, OK 74135
Tel: (918) 664-0800
Fax: (918) 663-1383
Email: mark@law-office.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
According to the schedules, the Company has assets of $9,769,139
and total debts of $5,787,541.
A full-text copy of the Debtor's petition, including a list of its
20 largest unsecured creditors, is available for free at:
http://bankrupt.com/misc/oknb09-14113.pdf
The petition was signed by Elmer G. Heinrich, president of the
Company.
TRIBUNE CO: Objects to J. McCormick's $50 Billion Claim
-------------------------------------------------------
Tribune Company and its debtor affiliates ask Judge Kevin J. Carey
of the U.S. Bankruptcy Court for the District of Delaware to
disallow and expunge Claim No. 5844 filed against Debtor Tribune
Company by claimant JoAnna Canzoneri McCormick asserting
$50,000,000,000 claim. The Debtors assert that the McCormick
Claim is not an allowable claim because the claim:
(i) fails to set forth the factual and legal basis for any
"right to payment" that could constitute prima facie
evidence of the validity and amount of the alleged
$50,000,000,000 claim; and
(ii) no legal or factual theory exists upon which relief could
be granted under any applicable law.
The McCormick Claims is asserted to be based on "Heir/Beneficiary
and Ownership" and is asserted to be secured by real estate, motor
vehicle, "personal property", and "intelligent property contract
fraud." The asserted amount of the McCormick Claim is
unliquidated but is estimated on its fact at $50,000,000,000.
The Debtors relate that while no supporting details were filed
with the McCormick Claim, it suggests that the claim is based upon
"the new discovery of charges of murder of Robert Rutherford
McCormick and a fraud [sic] Last Will and Testament along with
assets, money, property from a will to a Foundation."
According to the Debtors, Ms. McCormick is attempting to
articulate a theory by which she is entitled to a "100% ownership"
interest in Tribune Company, based on conjecture that the
charitable trusts established under the provisions in the last
will and testament of Robert R. McCormick upon his death in 1955
were fraudulent in nature such that she, as a purported family
member, is the heir and beneficiary of the McCormick legacy.
Mr. McCormick, known as the "Colonel" after his rank in World War
I, was owner, editor, and publisher of the Chicago Tribune
newspaper from approximately 1910 until his death in 1955 at the
age of 74. Under Mr. McCormick's will, certain charitable trusts
were established to perpetuate his legacy in support of community
involvement, human services, journalism, citizenship, and early
childhood education. These trusts were subsequently recognized as
charitable corporations under the General Not-For-Profit
Corporation Act of Illinois, and became what are today the Robert
R. McCormick Foundation and the Cantigny Foundation. The
Foundations were funded by Mr. McCormick's estate, including his
Tribune Company common stock. In 1985, upon the death of Mr.
McCormick's wife, the Foundations received the balance of the
family's Tribune Company stock from a trust created by Mr.
McCormick for the benefit of his wife. The Foundations have been
operating for more than fifty years, and are today among the
nation's largest public charities.
The Debtors aver that upon review of their own books and records,
and the operative facts and law, they have determined that they
have no liability whatsoever to Ms. McCormick, much less that Ms.
McCormick is entitled to an allowed claim of $50 billion.
About Tribune Co.
Headquartered in Chicago, Illinois, Tribune Co. --
http://www.tribune.com/-- is a media company, operating
businesses in publishing, interactive and broadcasting, including
ten daily newspapers and commuter tabloids, 23 television
stations, WGN America, WGN-AM and the Chicago Cubs baseball team.
The Company and 110 of its affiliates filed for Chapter 11
protection on Dec. 8, 2008 (Bankr. D. Del. Lead Case No. 08-
13141). The Debtors proposed Sidley Austin LLP as their counsel;
Cole, Schotz, Meisel, Forman & Leonard, PA, as Delaware counsel;
Lazard Ltd. and Alvarez & Marsal North America LLC as financial
advisors; and Epiq Bankruptcy Solutions LLC as claims agent. As
of Dec. 8, 2008, the Debtors have $7,604,195,000 in total assets
and $12,972,541,148 in total debts.
Bankruptcy Creditors' Service, Inc., publishes Tribune Bankruptcy
News. The newsletter tracks the chapter 11 proceeding undertaken
by Tribune Company and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
TRIBUNE CO: Proposes Hearst Corp. Settlement
--------------------------------------------
Debtors Tribune Company, Southern Connecticut Newspapers, Inc.,
and Tribune License, Inc., ask the Court to approve a final
reconciliation and adjustment of working capital and related
amounts with Hearst Danbury Holdings, LLC, The Hearst Corporation
and Hearst Soco Newspapers, LLC.
On November 1, 2007, Tribune Company, Southern Connecticut
Newspapers, Inc., and Tribune License, Inc., closed a sale of
substantially all of the assets of SCNI on a going-concern basis
to Hearst Danbury Holdings, LLC, The Hearst Corporation and Hearst
Soco Newspapers, LLC, for approximately $62.4 million pursuant to
an Asset Purchase Agreement dated as of October 24, 2007.
Pursuant to the APA, the Buyer acquired good, marketable title in
the Purchased Assets, including all accounts receivable generated
by the business. The APA also included certain post-closing
features including working capital adjustment provision, a
severance benefit payment provision in respect of terminated
employees, and a Transition Services Agreement, whereby SCNI
agreed to provide certain "back office" and administrative
services to the Buyer for a period of time after the closing.
The APA's post-closing working capital adjustment terms provided
that within 90 days from the Closing Date, the Buyer was to
deliver to Tribune its determination of the Working Capital Amount
for the purpose of calculating the final purchase price
adjustment. In February 2008, the Buyer delivered that
determination to Tribune but Tribune did not agree with the
Buyer's working capital calculation and purchase price adjustment.
Over the ensuing months, the Parties worked to negotiate a
tentative agreement on the working capital and purchase price
adjustment, including offsets for amounts due to Tribune that had
been "swept" by the Buyer post-closing and other amounts that they
Buyer paid on behalf of Tribune for pre-closing expenses, but this
agreement was not finalized pending the Buyer's verification of
certain of the amounts.
In addition to the working capital and other adjustments, another
post-closing reconciliation matter concerned the APA's employee
severance benefit provision, which required the Buyer to reimburse
Tribune for certain severance benefits and related costs paid with
respect to certain employees of the business in excess of $1.4
million. During the post-closing period, Tribune paid severance
benefits in excess of the Base Severance Cap, resulting in a total
reimbursement obligation of the Buyer to Tribune of $465,813,
including $70,921 in postpetition payments processed by Tribune on
behalf of the Buyer and pursuant to the Buyer's reimbursement
obligation.
The Parties also entered into the TSA whereby SCNI agreed to
provide certain post-closing services to be reimbursed by the
Buyer, including cash management and administrative functions
until that time as the Buyer fully established its own
capabilities or until termination of the service period as
specified in the TSA. The services performed by SCNI for the
Buyer included payroll services, accounting, accounts payable and
general ledger functions, cash management, benefit plans and
programs, Internet publication and Web site services and newspaper
printing services. SCNI provided these transition services to the
Buyer at cost. Based on the last transition services invoice
dated as of August 2008, the Buyer owes $213,636 under the TSA.
Following intermittent discussion, in October 2009, Tribune and
the Buyer resumed efforts to finally reconcile and resolve all
amounts owed by and among the Parties pursuant to the APA,
including the working capital adjustment, purchase price
adjustments, severance payments paid by Tribune in excess of the
Base Severance Cap and outstanding amounts owed by the Buyer under
the TSA. The Parties have now reconciled and resolved all post-
closing adjustments resulting in the Buyer owing a balance of
$465,150.
The Debtors intend to recoup the balance owed from the Buyer by
offsetting certain funds in the Debtors' possession that belong to
the Buyer. Specifically, in accordance with the TSA, the Debtors
have administered on behalf of the Buyer that certain SCNI lockbox
depository account held at Bank of America, N.A. The Lockbox
Account historically received and continues to receive advertising
receipts that are the property of the Buyer under the terms of the
APA, but which the Buyer has yet to transition to a lockbox
account in its name. Accordingly, while this account is titled in
the name of SCNI, the funds belong solely to the Buyer. The
balance in the Lockbox Account is approximately $1.4 million.
The Parties have agreed that, upon Bankruptcy Court approval, the
Debtors will release to the Buyer its funds in the Lockbox Account
net of the amounts due to the Debtors from the Buyer of $465,150.
Hence, the remaining balance of approximately $969,000 will be
released to the Buyer, with the Debtors' offset against the
Buyer's funds in the Lockbox Account and the release to the Buyer
of the Net Buyer Funds constituting the full and final
reconciliation and adjustment of post-closing amounts due between
the Parties and the satisfaction of all remaining obligations of
the Parties under the APA. The Debtors will thereafter promptly
close the Lockbox Account following completion of the offset and
release of the Net Buyer Funds.
About Tribune Co.
Headquartered in Chicago, Illinois, Tribune Co. --
http://www.tribune.com/-- is a media company, operating
businesses in publishing, interactive and broadcasting, including
ten daily newspapers and commuter tabloids, 23 television
stations, WGN America, WGN-AM and the Chicago Cubs baseball team.
The Company and 110 of its affiliates filed for Chapter 11
protection on Dec. 8, 2008 (Bankr. D. Del. Lead Case No. 08-
13141). The Debtors proposed Sidley Austin LLP as their counsel;
Cole, Schotz, Meisel, Forman & Leonard, PA, as Delaware counsel;
Lazard Ltd. and Alvarez & Marsal North America LLC as financial
advisors; and Epiq Bankruptcy Solutions LLC as claims agent. As
of Dec. 8, 2008, the Debtors have $7,604,195,000 in total assets
and $12,972,541,148 in total debts.
Bankruptcy Creditors' Service, Inc., publishes Tribune Bankruptcy
News. The newsletter tracks the chapter 11 proceeding undertaken
by Tribune Company and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
TRIBUNE CO: Proposes to Buy Tail Coverage for $5.6 Million
----------------------------------------------------------
In connection with its indemnification obligations, Tribune
Company maintains certain directors and officers liability and
fiduciary liability insurance policies, principally for the
benefit of the Debtors' directors, officers, employees, and agents
who are or were involved or may be involved in the future in any
threatened, pending, or completed action, suit, or proceeding, by
reason of the fact that those persons are or were serving as a
director, officer, employee, or agent of the Debtors, including
service with respect to the Debtors' employee benefit plans. The
Policies include primary directors and officers liability coverage
provided by Federal Insurance Company, a member of the Chubb
Group, and primary fiduciary liability coverage provided by
Illinois National Insurance Company, a member of Chartis.
Kate J. Stickles, Esq., at Cole, Schotz, Meisel, Forman & Leonard,
P.A., in Wilmington, Delaware, relates that Tribune completed its
review in mid-December 2009 for an extension of the existing
Policies with the Insurance Providers, and, in its ordinary course
of business, extended the coverage that has existed for the past
two years for an additional year. The 12-month extension of the
Policies is effective December 20, 2009, and provides coverage,
under the terms, conditions, limitations, and exclusions of the
Policies, for claims made on or prior to December 20, 2007.
According to Ms. Stickles, the cost of the 12-month extension was
approximately $9.8 million. In addition, Ms. Stickles notes, the
Insurance Providers agreed to offer the Debtors a six-year
extended reporting period under the Policies that could be
exercised at any time during the 12-month extension of the
Policies, in accordance with the Policies' terms. She tells the
Court that the cost of the additional Tail Coverage is
approximately $5.6 million in the aggregate for the Policies,
provided the Tail Coverage offer is accepted prior to the offer
expiration date of February 3, 2010, and is paid in full upon
acceptance. In the event the Debtors exercise the Tail Coverage
during the 12-month extension period, no further premiums will be
payable to obtain the Tail Coverage, she maintains.
The 12-month extension of the Policies also includes an additional
3-month extension option, available for election until
December 20, 2010, which provides for further extension of the
Policies until March 20, 2011, in return for a pro-rata premium to
be calculated based on the annual extension premium applicable to
the existing Policies. If the additional 3-month extension is
selected, the period to exercise Tail Coverage is also extended
until March 20, 2011, without any additional premium beyond the
cost of the 3-month extension of the overall Policies.
The Debtors believe that it is more likely than not that a plan of
reorganization will be confirmed in their Chapter 11 proceedings
during the next 15 months, necessitating the acquisition of tail
coverage equivalent to what is being offered by the Insurance
Providers, except that the coverage would normally cost between 1
and 2.5 times the total annual premiums. The Debtors have
determined that in the event a plan is not confirmed within the
next 15 months, and if the existing insurers are not willing to
provide a further extension of the Tail Coverage offer and the
underlying insurance coverage under the Policies at reasonable
rates, the Debtors will exercise the Tail Coverage so as not to
lose the benefit of the approximately $5.6 million premium spent
to obtain the Tail Coverage for their estates.
The Debtors tell the Court that they have obtained a commitment
from the Insurance Providers to leave open their offer of Tail
Coverage at reduced rates for a period of 45 days after
December 20, 2009, so that they may obtain the Court's approval to
purchase the Tail Coverage and pay the approximately $5.6 million
in premium within that time. The Insurance Providers' offer
expires unless accepted by the Debtors prior to February 3, 2010.
By this motion, the Debtors seek the Court's authority for Tribune
Company to purchase a six-year extended reporting period under the
Debtors' existing directors and officers liability and fiduciary
liability insurance policies for an aggregate premium of
approximately $5.6 million, which could be exercised at any time
over the next 12-month period.
According to Ms. Stickles, Chapter 11 debtors routinely purchase
"tail" coverage in connection with a plan of reorganization, to
extend existing "claims-made" insurance policies following the
effective date of the plan, which typically terminates that
coverage according to the policy terms. She relates that the
Debtors have been offered the opportunity to purchase the Tail
Coverage now, in advance and outside of the plan process, at a
significant discount over what the Debtors would otherwise expect
to pay to purchase separate tail coverage.
About Tribune Co.
Headquartered in Chicago, Illinois, Tribune Co. --
http://www.tribune.com/-- is a media company, operating
businesses in publishing, interactive and broadcasting, including
ten daily newspapers and commuter tabloids, 23 television
stations, WGN America, WGN-AM and the Chicago Cubs baseball team.
The Company and 110 of its affiliates filed for Chapter 11
protection on Dec. 8, 2008 (Bankr. D. Del. Lead Case No. 08-
13141). The Debtors proposed Sidley Austin LLP as their counsel;
Cole, Schotz, Meisel, Forman & Leonard, PA, as Delaware counsel;
Lazard Ltd. and Alvarez & Marsal North America LLC as financial
advisors; and Epiq Bankruptcy Solutions LLC as claims agent. As
of Dec. 8, 2008, the Debtors have $7,604,195,000 in total assets
and $12,972,541,148 in total debts.
Bankruptcy Creditors' Service, Inc., publishes Tribune Bankruptcy
News. The newsletter tracks the chapter 11 proceeding undertaken
by Tribune Company and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
TXCO RESOURCES: Creditors Show Support for Anadarko Bid
-------------------------------------------------------
Law360 reports that unsecured creditors of TXCO Resources Inc.
have asked that a judge modify procedures for auctioning off the
bankrupt oil company to make it easier for Anadarko Petroleum
Corp. to prevail over stalking horse bidder Newfield Exploration
Co.
TXCO Resources Inc. is an independent oil and natural gas
enterprise with interests in the Maverick Basin of Southwest
Texas, the Fort Trinidad area of East Texas, the onshore Gulf
Coast region and the Marfa Basin of Texas, the Midcontinent region
of Western Oklahoma and willow Gulf of Mexico waters. The
Company's business strategy is to acquire undeveloped mineral
interests and internally develop a multi-year drilling inventory
through the use of advanced technologies, such as 3-D seismic and
horizontal drilling. The Company accounts for its oil and natural
gas operations under the successful efforts method of accounting
and trade its common stock under the symbol "TXCOQ.pk."
The Company and its subsidiaries 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.
UNITED SITE: S&P Downgrades Corporate Credit Rating to 'SD'
-----------------------------------------------------------
Standard & Poor's Ratings Services said that it lowered its
corporate credit rating on Westborough, Massachusetts-based United
Site Services Inc. to 'SD' (selective default) from 'CC'.
In addition, S&P lowered the issue rating on the company's
$265 million term loan to 'D' from 'C', as the loan amounts were
fully exchanged for equity. The debt rating and '5' recovery
rating on the term loan will be withdrawn. The 'CCC' issue rating
on the company's $100 million revolving credit facility was
affirmed, and the '1' recovery rating is unchanged.
The rating actions follow USS' announcement that it has completed
its financial restructuring, exchanging more than $400 million of
its term loan and mezzanine debt for equity. The company's
$100 million revolving credit facility remains in place, and it
had roughly $19 million available under the facility following the
restructuring.
"The 'SD' corporate credit rating reflects S&P's view that the
exchange was distressed," said Standard & Poor's credit analyst
James Siahaan.
The company's equity is now majority-owned by funds managed by GSO
Capital Partners LP and Angelo, Gordon & Co. LLC or their
affiliates, as the ownership position of previous equity sponsor
DLJ Merchant Banking Partners has been heavily diluted.
US ANTIMONY: Mexican Mill May Start Operations by End of Q1
-----------------------------------------------------------
United States Antimony Corporation said the start-up of its mill
near Berrnal in the State of Queretaro, Mexico, could be realized
by the end of the first quarter of 2010.
On December 23, USAMSA, USAC's wholly owned subsidiary, has
received its final permit from SEMARNAT (the Mexican Federal
Agency for Environmental Protection) to start construction of the
mill.
The mill will upgrade antimony rock from the Soyatal District and
antimony, silver and gold- bearing rock from the Los Juarez area
both in the State of Querretaro, Mexico. It will have an initial
calculated production rate of 150 metric tons per day. The mill
was prefabricated in Montana and most of it is now in El Paso,
Texas and Mexico. Mill start-up could be realized by the end of
the first quarter of 2010.
The Company said in December it will upgrade rock to a 60%
antimony grade that will be shipped to the USAMSA smelter in the
State of Coahuila, Mexico. The smelter has been operating on
high-grade rock being mined at the Soyatal District and from ore
and concentrates from Central America, Peru, and other deposits in
Mexico.
USAC disclosed in a regulatory filing in November that at
September 30, 2009, it accrued $40,802 for penalties assessed at
its Bear River Zeolite facility. The Company said it is trying to
eliminate the penalty through an appeals process.
In November, the Company reported its operations resulted in a net
loss of $49,718 for the three-month period ended September 30,
2009, compared with net loss of $74,780 for the same period ended
September 30, 2008. The difference in income for the third
quarter of 2009 compared to the similar period of 2008 is
primarily due to a decrease in production costs relative to
revenues. Both period's losses are largely the result of expenses
related to Mexican exploration.
Total revenues from antimony product sales for the third quarter
of 2009 were $801,601 compared with $875,987 for the comparable
quarter of 2008, a decrease of $74,386. Total revenue from sales
of zeolite products during the third quarter of 2009 were $411,369
at an average sales price of $135.41 per ton, compared with the
same quarter sales in 2008 of $553,864 at an average sales price
of $142.45 per ton.
The Company's operations resulted in a net loss of $325,903 for
the nine month period ended September 30, 2009, compared with net
income of $485,256 for the same period ended September 30, 2008.
The decrease in income of $811,159 for the first nine months of
2009 compared to the similar period of 2008 is primarily due to
the recognition of revenue related to an expired exclusivity
contract in 2008. Mexican exploration costs were a major
contributing factor to the 2009 loss.
Total revenues from antimony product sales for the first nine
months of 2009 were $1,857,545 compared with $2,989,018 for the
first nine months of 2008, a decrease of $1,131,473. Total
revenue from sales of zeolite products during the first nine
months of 2009 were $1,079,869 at an average sales price of
$131.10 per ton compared with the same period's sales in 2008 of
$1,282,878 at an average sales price of $133.37 per ton. The
decrease in revenue for the first nine months of 2009 compared to
the first nine months of 2008 was due to a decrease in tons sold
during the first nine months of 2009.
At September 30, 2009, Company assets totaled $3,638,954, total
liabilities were $1,113,918, and total stockholders' equity was
$2,525,036. Total stockholders' equity increased $741,538 from
December 31, 2008, primarily because of sales of common stock and
conversion of debt to common stock, offset by net losses incurred.
At September 30, 2009, the Company's total current liabilities
exceeded its total current assets by $553,973. To continue as a
going concern, the Company said it must generate profits from its
antimony and zeolite sales or acquire additional capital resources
through the sale of its securities or from short and long-term
debt financing. Without financing and profitable operations, the
Company may not be able to meet its obligations, fund operations
and continue in existence.
While management is optimistic that the Company will be able to
sustain profitable operations and meet its financial obligations,
there can be no assurance of such results. The Company's
management is confident, however, given recent increases in
pricing, the expectation of acquiring new customers, and continued
reduction in capital spending, that it will be able to generate
cash from operations and financing sources that will enable it to
meet its obligations until September 2010.
At September 30, 2009, the Company had negative working capital of
$554,000 and an accumulated deficit of $21 million. The Company
said there is substantial doubt that it will be able to meet its
obligations and continue in existence as a going concern.
A full-text copy of the Company's quarterly report for the
September 2009 quarter is available at no charge at:
http://ResearchArchives.com/t/s?4ade
About US Antimony
United States Antimony Corporation (OTCBB:UAMY) --
http://www.usantimony.com/-- is a junior mining and chemical
company with three product lines that each present tremendous
potential: antimony, zeolite and precious metals (silver and
gold). The zeolite operation is a wholly owned subsidiary, Bear
River Zeolite with its mine and processing plant near Preston,
Idaho.
Antimony is a metal that is used primarily in plastics as a flame
retardant. It is also used in bearings, ordinance, porcelain,
glass, batteries, textile goods, elastomers, and numerous other
applications.
Zeolite is a unique volcanic rock that has a natural cation
exchange feature (it holds calcium, ammonium, potassium, sodium,
magnesium, etc. loosely in its crystal lattice).
VALUE CITY: PBGC Assumes Pension Plans at GB & Gramex Units
-----------------------------------------------------------
The Pension Benefit Guaranty Corporation assumed responsibility
for two underfunded pension plans covering about 760 former
workers and retirees of GB Retailers Inc. and Gramex Retail Stores
Inc., wholly owned subsidiaries of Value City Department Stores
LLC, Columbus, Ohio.
The PBGC stepped in because the pension plans face abandonment as
Value City is liquidating all of its assets under bankruptcy
proceedings, and no entity will remain to finance and administer
the plans. Retirees under the plans will continue to receive
their monthly benefit checks without interruption, and other
workers will receive their pensions when they are eligible to
retire.
Together, the GB Stores Inc. 1982 Employees' Retirement Plan and
the Gramex Retail Stores Inc. Retirement Plan are 63% funded, with
assets of $7.4 million to cover $11.7 million in benefit
liabilities, according to PBGC estimates. The agency expects to
be responsible for the entire $4.3 million shortfall. The PBGC
will take over the assets and use insurance funds to pay
guaranteed benefits earned under the plans which ended as of
May 31, 2009. The Gramex plan had been frozen since March 1,
2000.
Within the next several weeks, the PBGC will send notification
letters to all participants in the plans. Under provisions of the
Pension Protection Act of 2006, the maximum guaranteed pension the
PBGC can pay is determined by the legal limits in force on the
date of the plan sponsor's bankruptcy. Therefore participants in
the GB and Gramex pension plans are subject to the limits in
effect on October 26, 2008, which set a maximum guaranteed amount
of $51,750 a year for a 65-year-old. The maximum guaranteed
amount is lower for those who retire earlier or elect survivor
benefits. In addition, certain early retirement subsidies and
benefit increases made within the past five years may not be fully
guaranteed.
Workers and retirees with questions may consult the PBGC Web site,
http://www.pbgc.gov/or call toll-free at 1-800-400-7242. For
TTY/TDD users, call the federal relay service toll-free at
1-800-877-8339 and ask for 800-400-7242.
Retirees of GB Retailers and Gramex Retail who draw a benefit from
the PBGC may be eligible for the federal Health Coverage Tax
Credit. Further information may be found on the PBGC Web site at
http://www.pbgc.gov/workers-retirees/benefits-
information/content/page13692.html
Assumption of the plans' unfunded liabilities will have no
significant effect on the PBGC's financial statements because an
estimate of the claim was previously included in the agency's
fiscal year 2009 financial statements, in accordance with
generally accepted accounting principles.
PBGC is a federal corporation created under the Employee
Retirement Income Security Act of 1974. It currently guarantees
payment of basic pension benefits earned by 44 million American
workers and retirees participating in over 29,000 private-sector
defined benefit pension plans. The agency receives no funds from
general tax revenues. Operations are financed largely by insurance
premiums paid by companies that sponsor pension plans and by
investment returns.
VENETIAN MACAU: Bank Debt Trades at 4% Off in Secondary Market
--------------------------------------------------------------
Participations in a syndicated loan under which Venetian Macau US
Finance Co., LLC, is a borrower traded in the secondary market at
96.43 cents-on-the-dollar during the week ended Friday, Jan. 8,
2010, according to data compiled by Loan Pricing Corp. and
reported in The Wall Street Journal. This represents increase of
2.13 percentage points from the previous week, The Journal
reports. The Company pays 550 basis points above LIBOR to borrow
under the facility. The bank loan matures on May 25, 2011, and
carries Moody's B3 rating and Standard & Poor's B- rating.
Meanwhile, participations in a syndicated loan under which Las
Vegas Sands Corp. is a borrower traded in the secondary market at
89.66 cents-on-the-dollar during the week ended Friday, Jan. 8,
2010, according to data compiled by Loan Pricing Corp. and
reported in The Wall Street Journal. This represents increase of
2.66 percentage points from the previous week, The Journal
reports. The Company pays 175 basis points above LIBOR to borrow
under the facility. The bank loan matures on May 1, 2014, and
carries Moody's B3 rating and Standard & Poor's B- rating.
The loans are two of the biggest gainers and losers among the 160
widely quoted syndicated loans with five or more bids in secondary
trading for the week ended Jan. 8, 2010.
Venetian Macau US Finance Co., LLC (also known as VML US Finance
LLC), and Venetian Macau Limited are wholly owned subsidiaries of
Las Vegas Sands. VML owns the Sands Macau in the People's
Republic of China Special Administrative Region of Macau and is
also developing additional casino hotel resort properties in
Macau.
Based in Las Vegas, Nevada, Las Vegas Sands Corp. (NYSE: LVS) --
http://www.lasvegassands.com/-- owns and operates The Venetian
Resort Hotel Casino, The Palazzo Resort Hotel Casino, and an expo
and convention center. The company also owns and operates the
Sands Macao, the first Las Vegas-style casino in Macao, China.
As reported by the TCR on Aug. 4, 2009, Moody's placed Las Vegas
Sands Corp.'s ratings, including its 'B3' Corporate Family Rating,
on review for possible downgrade. Moody's cited weak operating
results and heightened concern regarding the Company's ability to
maintain compliance with financial covenants, among other things.
The Company also carries 'B-' issuer credit ratings from Standard
& Poor's.
VERMILLION INC: Closes $43.05MM Private Placement of Common Stock
-----------------------------------------------------------------
Vermillion, Inc., closed a private placement transaction with a
group of investors as of January 7, 2010. Vermillion received
approximately $43.05 million in gross proceeds from the sale of
approximately 2,328,000 shares of its common stock at a price of
$18.4932 per share.
The United States Bankruptcy Court for the District of Delaware
issued a confirmation order approving Vermillion's plan of
reorganization.
The shares of Vermillion's common stock issued in connection with
the private placement have not been registered under the
Securities Act of 1933, as amended. Accordingly, these securities
may not be offered or sold in the United States except pursuant to
an effective registration statement or an applicable exemption
from the registration requirements of the Securities Act.
Vermillion has agreed to file within 120 days after the closing
one or more registration statements covering the resale of the
common stock.
About Vermillion
Vermillion, Inc., is dedicated to the discovery, development and
commercialization of novel high-value diagnostic tests that help
physicians diagnose, treat and improve outcomes for patients.
Vermillion, along with its prestigious scientific collaborators,
has diagnostic programs in oncology, hematology, cardiology and
women's health.
VERMILLION INC: Court Approves Vermillion's Plan of Reorganization
------------------------------------------------------------------
Vermillion, Inc. disclosed its Plan of Reorganization was
confirmed January 7 by the United States Bankruptcy Court for the
District of Delaware. The Honorable Judge Christopher S. Sontchi
presided.
Gail S. Page, Executive Chairperson of the Company's Board of
Directors said, "This is a great day, not only for Vermillion
shareholders, but for all the women who will benefit from our
OVA1(TM) test, the first FDA-cleared test for assisting physicians
in determining whether an ovarian tumor is likely to be malignant.
With this order, we are now poised to commercialize, with our
partner Quest Diagnostics, this important test. Additionally, we
will be able to continue the development of the other potential
tests in our pipeline."
On December 28, 2009 Vermillion entered into securities purchase
agreements in connection with a private placement with a group of
investors effective December 24, 2009. Under the terms of the
agreements, the Company will receive approximately $43.05 million
in gross proceeds from the sale of approximately 2,328,000 shares
of its common stock.
Vermillion's legal advisor in connection with its successful
reorganization efforts is Paul, Hastings, Janofsky & Walker LLP.
About Vermillion
Vermillion, Inc. is dedicated to the discovery, development and
commercialization of novel high-value diagnostic tests that help
physicians diagnose, treat and improve outcomes for patients.
Vermillion, along with its prestigious scientific collaborators,
has diagnostic programs in oncology, hematology, cardiology and
women's health.
VERTIS HOLDINGS: Unit Commences Debt for Equity Exchange
--------------------------------------------------------
Vertis Holdings, Inc.'s principal operating subsidiary, Vertis,
Inc., has commenced an offer to exchange its outstanding 13(1)/2
percent Senior Pay-in-Kind Notes due 2014 for shares of Holdings'
common stock. Vertis is offering to exchange 838.37 shares of
Common Stock for each $1,000 principal amount of Notes validly
tendered, and not validly withdrawn. The Exchange Offer is open
only to "qualified institutional buyers" and "accredited
investors" as such terms are defined under the Securities Act of
1933.
Concurrently with the Exchange Offer, Vertis is soliciting
consents from eligible holders to certain amendments to the
indenture governing the Notes to remove substantially all of the
restrictive covenants and certain events of default in the
Indenture. Approval of the Proposed Amendments requires the
consent of holders of at least a majority of the aggregate
outstanding principal amount of Notes. Eligible holders that
validly tender, and do not validly withdraw, their Notes at or
prior to 5 p.m., New York City time, on Jan. 21, 2010, will be
paid a consent fee of $5.00 per $1,000 principal amount of Notes.
An eligible holder who validly tenders its Notes for exchange will
be deemed to have delivered a consent with respect to such
tendered Notes. Notes may not be withdrawn after the Consent Time.
The purpose of the Exchange Offer and Consent Solicitation is to
improve Vertis' capital structure by reducing its overall debt
approximately $220 million and annual non-cash interest expense by
more than $30 million. Vertis believes consummation of the
Exchange Offer and Consent Solicitation will better position
Vertis to enter into value enhancing transactions, while
simultaneously mitigating future refinancing risks. In addition,
Vertis believes consummation of the Exchange Offer and Consent
Solicitation will provide suppliers, customers and employees with
more confidence in Vertis as a result of an improved capital
structure.
The Exchange Offer and Consent Solicitation will expire at 5:00
p.m., New York City time, on Feb. 5, 2010, unless extended by
Vertis. Eligible holders of the Notes may contact the Information
and Exchange Agent, Bondholder Communications Group, LLC at (212)
809-2663 with any questions regarding the Exchange Offer and
Consent Solicitation. The Exchange Offer and Consent Solicitation
are subject to the terms and conditions set forth in the
confidential offering memorandum and consent solicitation
statement and the related letter of transmittal, both dated
Jan. 7, 2010. In order to qualify as an eligible holder and
receive a copy of the Offering Memorandum and Letter of
Transmittal, please visit the eligibility website,
www.bondcom.com/vertis or contact the Information and Exchange
Agent as soon as possible. Once investors qualify on the
eligibility website, they will receive certain supplemental
information and communications relating to the Exchange Offer and
Consent Solicitation.
Prior to the date hereof, certain holders of the Notes, which
collectively held, through one or more of their affiliates and
consolidated funds, approximately 61 percent of the aggregate
outstanding principal amount of Notes, each executed a support
agreement whereby they agreed to validly tender all of their Notes
in the Exchange Offer at or prior to the Consent Time.
Consummation of Exchange Offer and Consent Solicitation is
conditioned upon the satisfaction or waiver of the conditions set
forth in the Offering Memorandum and the Letter of Transmittal.
Such conditions include, among other things, (i) eligible holders
of at least 97 percent of the aggregate outstanding principal
amount of Notes tendering their Notes at or prior to the
Expiration Time, (ii) the issuance of Common Stock will not
conflict with certain limitations in Holdings' certificate of
incorporation or certain agreements to which Holdings is a party
to and (iii) certain amendments, consents and waivers to Holdings'
and Vertis' revolving credit facility and term loan agreement
necessary to effectuate the Exchange Offer and Consent
Solicitation have been entered into. Vertis may waive any of
these or any other conditions to the consummation of the Exchange
Offer and Consent Solicitation in its sole discretion.
About Vertis Holdings Inc.
Headquartered in Baltimore, Maryland, Vertis Holdings, Inc. --
http://www.vertisinc.com/-- is a provider of targeted print
advertising and direct marketing solutions to America's retail and
consumer services companies. The company and its six affiliates
filed for Chapter 11 protection on July 15, 2008 (Bankr. D. Del.
Case No. 08-11460). Gary T. Holtzer, Esq. and Stephen A.
Youngman, Esq. at Weil, Gotshal & Manges LLP represent the Debtors
as lead counsels. Mark D. Collins, Esq. and Michael Joseph
Merchant, Esq. at Richards Layton & Finger, P.A. represent the
Debtors as Delaware local counsels. Lazard Freres & Co. LLC is
the company's financial advisor. When the Debtors filed for
protection from their creditors they listed assets of between
$500 million and $1 billion and debts of more than $1 billion.
(Vertis Bankruptcy News, Issue 7; Bankruptcy Creditors' Service
Inc., http://bankrupt.com/newsstand/or 215/945-7000)
VIDEOTRON LTEE: Moody's Rates Senior Unsecured Notes at 'Ba2'
-------------------------------------------------------------
Moody's Investors Service rated Videotron Ltee's new C$200-to-
300 million senior unsecured notes Ba2. Moody's expect that +/-
C$200 million of the proceeds will be used to fund repayment of
similarly sized debt obligations at Videotron's parent company,
Quebecor Media Inc., and that the balance will be retained by
Videotron to bolster liquidity as the company's wireless services
infrastructure investment continues. Overall, the transaction is
neutral to QMI's overall credit profile and, accordingly, its Ba3
corporate family and Ba3 probability of default ratings were
affirmed. QMI's rating outlook remains stable.
At the same time, QMI's speculative grade liquidity rating was
reduced to SGL-3 (adequate) from SGL-2 (good). This action is
somewhat influenced by, but is distinct from the notes issue.
Despite bolstering liquidity from the proceeds of the new notes
issue (presuming it is up-sized from the original C$200 million
amount), Moody's nonetheless expect that Videotron will make
increasing use of its revolving credit capacity in 2010 as its
wireless services investment continues. While disburesments are
easily predictcable, the timing and magnitude of receipts from
wireless-related revenues are uncertain and depend on subscriber
growth and related customer acquisition expenses and ARPU. The
QMI corporate family also faces a couple of refinancing milestones
over the next year or so. The liquidity rating presumes that the
tenor of QMI's liquidity facility is extended well beyond its
current January 2011 maturity, and that the January 2011 maturity
date of the Osprey Media liquidity facility does not compromise
overall liquidity arrangements. Subsequently, there is the April
2012 maturity of Videotron's liquidity facility, and the October
2012 maturity of the Sun Media facility. Term debt maturities do
not appear to be problematic as the refinance transaction
addresses a maturity at QMI. The small $115 million maturity at
Osprey in Q1-11 should not be an issue. While Moody's do not
expect liquidity to be problematic, it will not be as strong as it
had been and, accordingly, QMI's speculative grade liquidity
rating has been repositioned to SGL-3, indicating that liquidity
arrangements are adequate.
The Videotron senior unsecured notes are part of a C$1.8 billion
pool of debt ranking between senior debts at Vidoetron
($575 million senior secured revolving credit facility) and junior
debts are QMI ($1.5 billion, pro forma), and a similar structure
is in place with Videotron's sister company, Sun Media Inc. (Sun
Media). In part, the senior unsecured pool (at both Videotron and
Sun Media, including the new notes) owes its one-notch upgrade
from QMI's Ba3 CFR to the relative size of the junior-ranking
pool, and the contemplated refinance reduces the junior-ranking
pool's loss absorption contribution to nearly the minimum required
to maintain the up-lift. It is presumed that QMI will, over time,
take steps to assure that the relative balance of its debt
structure is maintained so that the senior unsecured ratings can
be maintained.
QMI has a complex legal entity structure and is involved in a
number of distinct lines of business. The Ba3 CFR is based on the
presumption that advertising revenues in broadcast and news media
businesses stop contracting and begin to slowly expand as 2010
unfolds. In addition, it is anticipated that Videotron's cable
business continues to grow and its cash flow will support the
ongoing build-out of the company's wireless services
infrastructure.
Assignments:
Issuer: Videotron Ltee
-- Senior Unsecured Regular Bond/Debenture, Assigned a range of
40 - LGD3 to Ba2
Other rating and loss given default assessment actions:
Issuer: Quebecor Media, Inc.
-- Corporate Family Rating, Unchanged at Ba3
-- Probability of Default Rating, Unchanged at Ba3
-- Speculative Grade Liquidity Rating, Downgraded to SGL-3 from
SGL-2
-- Senior Secured Bank Credit Facility, Unchanged at B1, with
the LGD assessment revised to LGD5, 76% from LGD5, 74%
Issuer: Sun Media Corporation
-- Senior Unsecured Regular Bond/Debenture, Unchanged at Ba2,
with the LGD assessment revised to LGD3, 40% from LGD3, 32%
Issuer: Videotron Ltee
-- Senior Unsecured Regular Bond/Debenture, Unchanged at Ba2,
with the LGD assessment revised to LGD3, 40% from LGD3, 32%
Moody's most recent rating action concerning Quebecor Media Inc.
was taken on February 26, 2009, at which time the company's Ba3
CFR and PDR were affirmed in conjunction with a new note issue in
the name of Videotron Ltee being rated Ba2.
Headquartered in Montreal, Canada, Videotron is a wholly-owned
subsidiary of Quebecor Media Inc., a privately held leading
Canadian media holding company. Through its operating companies,
QMI has activities in cable distribution, business, residential
and mobile wireless telecommunications, newspaper publishing (Sun
and Osprey Media), television broadcasting, book, magazine and
video retailing, publishing and distribution, music recording,
production and distribution and new media services.
VIDEOTRON LTEE: S&P Assigns 'BB-' Rating on C$200 Mil. Notes
------------------------------------------------------------
Standard & Poor's Ratings Services said it assigned its debt issue
and recovery ratings to Montreal-based cable service provider,
Videotron Ltee's proposed C$200 million senior unsecured notes due
Jan. 15, 2020. Videotron is a 100%-owned subsidiary of Montreal-
based Quebecor Media Inc. The notes and the guarantees are senior
unsecured obligations of Videotron, ranking equally with all
existing and future unsecured unsubordinated debt of the company.
S&P rate the notes 'BB-' (the same as the corporate credit rating
on Quebecor Media), with a recovery rating of '3', indicating
lenders can expect a meaningful (50%-70%) recovery in the event of
a payment default.
At the same time, S&P affirmed its 'BB-' debt rating on
Videotron's existing senior unsecured notes. The recovery rating
is unchanged at '3'.
S&P has also affirmed all other ratings, including the 'BB-' long-
term corporate credit rating on Videotron, Quebecor Media, and
another subsidiary, Sun Media Corp. The outlook on all companies
is stable.
Proceeds from the proposed notes offering will be used to repay
balances outstanding under Videotron's senior secured revolving
credit facility and for general corporate purposes.
The ratings on Quebecor Media are based on the credit risk profile
of the company and its consolidated subsidiaries, including 100%-
owned Videotron, the largest cable operator in Quebec, and third-
largest in Canada; and 100%-owned Sun Media, the largest newspaper
publisher in Canada when including Osprey Media Publishing Inc.
The ratings on both Videotron and Sun Media are equalized with
those on the parent.
"The ratings on Quebecor Media reflect S&P's view of the company's
aggressive financial risk profile characterized by relatively high
adjusted debt to EBITDA, weak cash flow protection measures, and
an aggressive financial policy given its acquisitive nature and
historically high tolerance for debt," said Standard & Poor's
credit analyst Madhav Hari. "S&P also base the ratings on what
S&P consider the weak business risk profile of Quebecor Media's
mature newspaper operations, which continue to face industry-
specific as well as economy-related challenges; intense
competition at the company's various business segments; and high
capital expenditures in the cable segment," Mr. Hari added.
The stable outlook reflects S&P's expectations that growth at
Quebecor Media's core cable operations will offset weakness at the
news media segment and internally generated cash flow from the
company's existing operations will largely fund the launch of
wireless services in the next two years. Absent acquisitions, S&P
expects Quebecor Media's adjusted debt to EBITDA to weaken only
modestly from current levels, but should remain below S&P's 4x
target for the ratings. A revision of the outlook to positive is
less likely in the near term given ongoing pressures in the news
media segment and the high investment needed to support the launch
of in-region wireless service. Nevertheless, S&P could revise the
outlook to positive (or raise the ratings) in the medium term if
the company demonstrates that it can post improved free cash flow
and if its adjusted debt to EBITDA improves toward the mid-3x
level, likely from an improvement in overall EBITDA as the
wireless losses moderate and the news media operations stabilize.
Alternatively, Standard & Poor's could revise the outlook to
negative if the news media operations deteriorate materially from
current levels or if the company pursues a more aggressive
wireless strategy, resulting in a weakening of Quebecor Media's
overall profitability and credit measures. In addition, S&P could
revise the outlook or the ratings downward should the company
pursue debt funded acquisitions that would cause pro forma
adjusted debt leverage to be materially higher than 4x.
VINEYARD COMPLEX: Voluntary Chapter 11 Case Summary
---------------------------------------------------
Debtor: The Vineyard Complex, LLC
51 Forest Road
Suite 316-90
Monroe, NY 10950
Bankruptcy Case No.: 10-35017
Chapter 11 Petition Date: January 5, 2010
Court: United States Bankruptcy Court
Southern District of New York (Poughkeepsie)
Debtor's Counsel: Ted T. Mozes, Esq.
16 Gladwyne Court
Spring Valley, NY 10977
Tel: (845) 362-6951
Fax: (501) 638-7838
Email: ttmozes@earthlink.net
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Debtor did not file a list of its 20 largest unsecured
creditors when it filed its petition.
The petition was signed by Abraham Hoffman, sole member of the
Company.
VISTA RIDGE: Files for Bankruptcy After Deal With Lender Failed
---------------------------------------------------------------
Amy Bounds at dailycamera says Vista Ridge Development LLC filed
for Chapter 11 bankruptcy after it failed to reach a financing
agreement with its lender Colorado Bank and Trust. The company
said it owes creditors at least $6.7 million.
The company said it needs to restructure to finish the 139-home
development, Ms. Bounds notes. Proceeds from the sale of new
homes will be used to pay $4.1 million that the company owed to
its lender, she adds.
Vista Development LLC is a real estate developer.
VISTA RIDGE: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: Vista Ridge Development, LLC
dba Chartered Homes of Colorado
1927 Windemere Lane
Erie, CO 80516
Bankruptcy Case No.: 09-37789
Chapter 11 Petition Date: December 30, 2009
Court: United States Bankruptcy Court
District of Colorado (Denver)
Debtor's Counsel: Garry R. Appel, Esq.
1917 Market St., Ste. A
Denver, CO 80202
Tel: (303) 297-9800
Email: appelg@appellucas.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
According to the schedules, the Company has assets of $5,046,339
and total debts of $6,786,430.
A full-text copy of the Debtor's petition, including a list of its
20 largest unsecured creditors, is available for free at:
http://bankrupt.com/misc/cob09-37789.pdf
The petition was signed by Ward Ritter, manager of the Company.
VISTEON CORP: Bank Debt Trades at 112.5% in Secondary Market
------------------------------------------------------------
Participations in a syndicated loan under which Visteon
Corporation is a borrower traded in the secondary market at 112.50
cents-on-the-dollar during the week ended Friday, Jan. 8, 2010,
according to data compiled by Loan Pricing Corp. and reported in
The Wall Street Journal. This represents increase of 2.17
percentage points from the previous week, The Journal reports.
The loan matures on May 30, 2013. Visteon pays 300 basis points
above LIBOR to borrow under the facility. Moody's has withdrawn
its rating on the bank debt and it is not rated by Standard &
Poor's. The debt is one of the biggest gainers and losers among
160 widely quoted syndicated loans with five or more bids in
secondary trading for the week ended Jan. 8, 2010.
Headquartered in Van Buren Township, Michigan, Visteon Corporation
(NYSE: VC) -- http://www.visteon.com/-- is a global automotive
supplier that designs, engineers and manufactures innovative
climate, interior, electronic and lighting products for vehicle
manufacturers, and also provides a range of products and services
to aftermarket customers. The company has corporate offices in
Van Buren Township, Michigan (U.S.); Shanghai, China; and Kerpen,
Germany. It has facilities in 27 countries and employs roughly
35,500 people. The Company has assets of $4,561,000,000 and debts
of $5,311,000,000 as of March 31, 2009.
Visteon Corporation and 30 of its affiliates filed for Chapter 11
protection on May 28, 2009, (Bank. D. Del. Case No. 09-11786
through 09-11818). Judge Christopher S. Sontchi oversees the
Chapter 11 cases. James H.M. Sprayregen, Esq., Marc Kieselstein,
Esq., and James J. Mazza, Jr., Esq., at Kirkland & Ellis LLP, in
Chicago, Illinois, represent the Debtors in their restructuring
efforts. Laura Davis Jones, Esq., James E. O'Neill, Esq., Timothy
P. Cairns, Esq., and Mark M. Billion, Esq., at Pachulski Stang
Ziehl & Jones LLP, in Wilmington, Delaware, serve as the Debtors'
local counsel. The Debtors' investment banker and financial
advisor is Rothschild Inc. The Debtors' notice, claims, and
solicitation agent is Kurtzman Carson Consultants LLC. The
Debtors' restructuring advisor is Alvarez & Marsal North America,
LLC.
Bankruptcy Creditors' Service, Inc., publishes Visteon Bankruptcy
News. The newsletter tracks the Chapter 11 proceedings of Visteon
Corp. and its debtor-affiliates. (http://bankrupt.com/newsstand/
or 215/945-7000)
VUE ORLANDO: To Auction Unsold Units on March 15
------------------------------------------------
Orland Business Journal reports that Vue Orlando LLC will hold an
auction on March 15, 2010, for its 165 unsold units and 7,972
square feet of retail space. The company is seeking qualified
bidder to acquire the property, report says.
Fisher Auction Co. Inc. will conduct the auction, report adds.
Vue Orlando LLC owns a condominium tower. The company had its
involuntary Chapter 7 liquidation proceeding converted to Chapter
11 reorganization.
WEST CORP: Bank Debt Trades at 2% Off in Secondary Market
---------------------------------------------------------
Participations in a syndicated loan under which West Corporation
is a borrower traded in the secondary market at 97.77 cents-on-
the-dollar during the week ended Friday, Jan. 8, 2010, according
to data compiled by Loan Pricing Corp. and reported in The Wall
Street Journal. This represents increase of 2.47 percentage
points from the previous week, The Journal reports. The Company
pays 387 basis points above LIBOR to borrow under the loan
facility, which matures on July 1, 2016. The bank debt carries
Moody's B1 rating while it is not rated by Standard & Poor's. The
debt is one of the biggest gainers and losers among 160 widely
quoted syndicated loans with five or more bids in secondary
trading for the week ended Jan. 8, 2010.
The Troubled Company Reporter on Oct. 9, 2009, said that Moody's
does not expect to take any immediate rating action following West
Corporation's announcement that it has filed for an initial public
offering of its common stock. West indicated in its Form S-1
filing that it intends to use part of the net proceeds from the
offering to repay or repurchase indebtedness.
The last rating action on West Corporation was on May 8, 2007, at
which time Moody's lowered the senior secured credit facility
rating to B1 from Ba3 while affirming all other credit and
liquidity ratings.
Based in Omaha, Nebraska, West Corporation is a leading provider
of business process outsourcing services. West has a B2 Corporate
Family Rating and a stable rating outlook.
WEST NEW CASTLE: Voluntary Chapter 11 Case Summary
--------------------------------------------------
Debtor: West New Castle, Ltd.
11144 Fuqua Street, Su8ite 200
Houston, TX 77089
Bankruptcy Case No.: 10-30229
Chapter 11 Petition Date: January 5, 2010
Court: United States Bankruptcy Court
Southern District of Texas (Houston)
Judge: Wesley W. Steen
Debtor's Counsel: Leonard H. Simon, Esq.
Pendergraft & Simon L.L.P.
2777 Allen Parkway, Ste 800
Houston, TX 77019
Tel: (713) 737-8207
Fax: (832) 202-2810
Email: lsimon@pendergraftsimon.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Debtor did not file a list of its 20 largest unsecured
creditors when it filed its petition.
The petition was signed by Ben Azopardi.
WESTON RANCH DEVELOPMENT: Voluntary Chapter 11 Case Summary
-----------------------------------------------------------
Debtor: Weston Ranch Development, LLC
Po Box 31090
Mesa, AZ 85275
Bankruptcy Case No.: 09-33901
Chapter 11 Petition Date: December 31, 2009
Court: United States Bankruptcy Court
District of Arizona (Phoenix)
Judge: Sarah Sharer Curley
Debtor's Counsel: Randy Nussbaum, Esq.
Nussbaum & Gillis, P.C.
14500 N. Northsight Blvd. - #116
Scottsdale, AZ 85260
Tel: (480) 609-0011
Fax: (480) 609-0016
Email: rnussbaum@nussbaumgillis.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $10,000,001 to $50,000,000
The Debtor did not file a list of its 20 largest unsecured
creditors when it filed its petition.
The petition was signed by Billy G. Johnson, manager of the
Company.
WOODSIDE GROUP: Emerges from Chapter 11 Bankruptcy
--------------------------------------------------
ABI reports that Woodside Group LLC emerged from bankruptcy
protection on Dec. 31 after its reorganization plan took effect.
Headquartered in North Salt Lake, Utah, Woodside Group LLC
http://www.woodside-homes.com/-- is the parent company of
multiple subsidiaries and through approximately 185 of those
subsidiaries is primarily engaged in homebuilding operations in
eight states. The operations of the Woodside Group are financed
through Woodside Group's affiliate Pleasant Hill Investments, LC.
Woodside Group, Pleasant Hill Investments and each of the 185
subsidiaries are the Debtors. Woodside Group also has
subsidiaries and affiliates that are not debtors.
On March 31, 2008, Woodside AMR 107, Inc., and Woodside Portofino,
Inc., filed voluntary petitions for relief under Chapter 11 of the
United States Bankruptcy Code. On August 20, 2008, an Ad Hoc
Group of Noteholders commenced the filing of involuntary petitions
against the Debtors (other than AMR 107 and Portofino). On August
20, 2008, JPMorgan Chase Bank, N.A., on behalf of the Bank Group,
commenced the filing of certain Joinders in the Involuntary
Petition. On September 16, 2008, the Debtors filed a
"Consolidated Answer to Involuntary Petitions and Consent to Order
for Relief" and the Court entered the "Order for Relief Under
Chapter 11."
The Debtors are jointly administered under Case No. 08-20682.
The Bankruptcy Cases are currently pending before the Honorable
Peter Carroll in the United States Bankruptcy Court for the
Central District of California (Riverside).
Harry D. Hochman, Esq., Jeremy V. Richards, Esq., Linda F. Cantor,
Esq., and Maxim B. Litvak, Esq., at Pachulski Stang Ziehl & Jones
LLP, in Los Angeles, represent the Debtors as counsel.
During 2007, the Woodside entities generated revenues exceeding
$1 billion on a consolidated basis. As of December 31, 2007, the
Woodside Entities had consolidated assets and liabilities of
approximately $1.5 billion and $1.1 billion, respectively. As of
the September 16, 2008 petition date, the Debtors have
approximately $70 million in cash. The Woodside Entities employ
approximately 494 employees.
In its schedules, Woodside Group, LLC, listed total assets of
$1,000,285,578 and total liabilities of $691,352,742. The
schedules are unaudited.
YANKEE CANDLE: Bank Debt Trades at 4% Off in Secondary Market
-------------------------------------------------------------
Participations in a syndicated loan under which The Yankee Candle
Company, Inc., is a borrower traded in the secondary market at
95.73 cents-on-the-dollar during the week ended Friday, Jan. 8,
2010, according to data compiled by Loan Pricing Corp. and
reported in The Wall Street Journal. This represents increase of
2.16 percentage points from the previous week, The Journal
reports. The loan matures on Feb. 6, 2014. The Company pays 200
basis points above LIBOR to borrow under the facility. The bank
debt carries Moody's Ba3 rating and Standard & Poor's BB- rating.
The debt is one of the biggest gainers and losers among 160 widely
quoted syndicated loans with five or more bids in secondary
trading for the week ended Jan. 8, 2010.
Based in South Deerfield, Massachusetts, The Yankee Candle
Company, Inc., designs, manufactures, and is a wholesaler and
retailer of premium scented candles. Yankee has a 39-year history
of offering distinctive products and marketing them as affordable
luxuries and consumable gifts. The Company sells its products
through a North American wholesale customer network of 19,689
store locations, a growing base of Company owned and operated
retail stores (491 located in 43 states as of Jan. 3, 2009,
including 28 Illuminations stores), direct mail catalogs, and its
Internet Web sites:
http://www.yankeecandle.com
http://www.illuminations.com
http://www.aromanaturals.com
Outside of North America, the Company sells its products primarily
through its subsidiary, Yankee Candle Company (Europe), Ltd.,
which has an international wholesale customer network of 2,994
store locations and distributors covering approximately 23
countries.
Yankee Holding Corp. is a holding company formed in connection
with the Company's Merger with an affiliate of Madison Dearborn
Partners, LLC, on Feb. 6, 2007, and is now the parent company of
The Yankee Candle Company, Inc.
Yankee Holding Corp. and subsidiaries had $1.372 billion in total
assets, and $1.375 billion in total liabilities, resulting in
$2.82 million in stockholders' deficit as of Jan. 3, 2009.
* 2009 Has 3rd Largest All-Time Bankruptcy Count, Says BData
------------------------------------------------------------
The number of publicly-traded companies filing for bankruptcy
protection in 2009 was 207: 181 Chapter 11's and 26 Chapter 7's.
This number reflects a significant uptick from the 2008 figure of
138. 2009 ranks as the 3rd largest annual total since 1980--
preceded only by 2001 and 2002, with respective filing counts of
263 and 220, according to http://www.BankruptcyData.com.
This year's combined asset count of $594 billion ranks as the 2nd
largest historic total. While high, that figure is half 2008's
record-shattering total of $1.2 trillion. Significant industry
representations last year include the (1) Manufacturing, (2)
Banking & Finance and (3) Oil & Gas sectors, which saw respective
filing counts of 28, 26 and 25.
The 26 Banking & Finance Chapter 7 and Chapter 11 filings list a
combined pre-petition asset figure of $249 billion. In fact, six
of 2009's financial bankruptcies placed on the 20 Largest Historic
Banking & Finance Industry List; and seven of those rank on 2009's
Top-10 Filings List:
10 Largest Public Bankruptcies of 2009
Company Bankruptcy Description Assets in
Date $mils
General 06/01/09 Manufactures & Sells Cars $91,047
Motors
Corp.
CIT 11/01/09 Bank Holding Company 80,449
Group
Inc.
Chrysler 04/30/09 Manufactures & Sells Cars 39,300
LLC
Thornburg 05/01/09 Residential Mortgage Lending
Co. 36,521
Mortgage,
Inc.
General 04/16/09 Real Estate Investment
Company 29,557
Growth
Properties,
Inc.
Lyondell 01/06/09 Global Chemical
Manufacturer 27,392
Chemical
Company
Colonial 08/25/09 Bank Holding
Company 25,816
BancGroup,
Inc.,
The (CBCG)
Capmark 10/25/09 Diversified Financial
Services Co. 20,638
Financial
Group
Inc.
Guaranty 08/27/09 Bank Holding Company 16,796
Financial
Group
Inc.
BankUnited 05/21/09 Bank Holding Company 15,046
Financial
Corpo
Charter 03/27/09 Broadband Communications
Co. 13,882
Commun
-nications,
Inc.
UCBH 11/24/09 Bank Holding Company 13,503
Holdings,
Inc.
* Pre-petition assets
Not only was the year's filing count elevated, the pre-petition
assets of companies seeking U.S. Bankruptcy Court protection was
also high: Six of 2009's bankruptcies place on the 20 Largest
Historic Filings List: General Motors Corporation (GM); CIT Group
Inc. (CIT); Chrysler LLC; Thornburg Mortgage, Inc. (TMA); General
Growth Properties, Inc. (GGP) and Lyondell Chemical Company
(listed in descending order by pre-petition asset figures).
If historic data is any indication of future trends, 2010 will
likely see continuing bankruptcy activity across the full range of
industries. George Putnam, III, Founder of New Generation
Research, explains, "So much debt was raised during the 2003 to
2007 period--much more than in the years leading up to either the
1989 through 1992 bankruptcy wave or the 2000 through 2003 wave--
that it will probably take several more years for the over-
leveraged companies to restructure their balance sheets. Each of
the two previous bankruptcy waves lasted about four years, and we
don't see any reason for this one to be any shorter, which
suggests it may last well into 2011."
* Auto Industry Needs New Approaches in Changed Global Market
-------------------------------------------------------------
The after effects of the worldwide economic and financial downturn
have altered the business landscape and have challenged long-
standing assumptions about successful operating structures. There
is a need to establish a new "normal" for the automotive industry
and the reality is that the game has changed, according to the
report 'Global Automotive Perspectives' by PricewaterhouseCoopers.
New approaches to everything automotive companies do from
reporting to their stakeholders and the investment community to
making decisions on tax and legal structures in a changed global
market are essential.
Richard Hanna, global auto leader, PricewaterhouseCoopers LLP
said, "During the last decade, the underlying competitive
landscape has changed dramatically because of the emergence of new
markets and new industry players as well as fundamental changes in
the economic environments of the mature markets. The global
recession has challenged the core operating models responsible for
delivering the business strategy of many companies.
In addition to the traditional disclosures on results of
operations, cash flows and financial position, users of financial
statements want insight into management strategy for dealing with
changing industry, extended liquidity information and transparent
discussion of risks and the company's outlook. Establishing a
regular information flow between companies and the investment
community develops a climate of confidence, creating a virtuous
circle of transparency and credibility."
The report highlights three key themes:
-- Robust and transparent reporting on financial results and
outlook
-- The golden rule of transfer pricing and how companies can
help themselves
-- Simplifying the business model
Financial reporting
Since the beginning of the economic crisis, reporting has focused
more on cash flow, and many companies have released enhanced
information on debt maturity and covenants, cost-optimized
liquidity and capital resources, their level of equity and
refinancing measures, and their level of working capital and cash
requirements.
However, based on PwC's discussions with analysts at the latest
"Meet the Experts" Conference in London, there are gaps between
the provided information and the information that the capital
markets need to understand a company's performance. Specifically,
capital markets want details on the impact of foreign exchange
translation on debt on the one hand, and acquired (or divested)
debt on the other hand. Numbers alone however, are not enough --
the analyst community need to understand the management's vision
and strategy.
Transfer pricing
Most companies have set rules to determine the prices for
intercompany transactions. These rules work under stable economic
conditions but might not be adequate during a downturn. For
example, typical transfer pricing arrangements may generate
situations in which a large number of entities within the group
are paying cash taxes while the group as a whole is loss-making.
The golden rule of transfer pricing (TP) is to set prices for
transactions between related parties as independent parties would
-- the so-called arm's-length principle.
Simplifying the business model
The automotive industry is over 100 years old, and layers of
complexity have been introduced at each turn of its evolution. It
has one of the most complicated upstream and downstream value
chains for a volume produced product.
Car manufacturers and suppliers need to have different strategies
for mature markets versus emerging markets. In emerging markets,
companies must have the very efficient market access platform to
position themselves to benefit from growth opportunities.
However, without the right strategy and execution in mature
markets, it is clear that companies cannot profit from emerging
markets -- the persistence of structural cost and complexity in
mature market operations will eventually rob all but the most
resilient competitors of the opportunity to compete in emerging
markets.
Richard Hanna, global auto leader, PricewaterhouseCoopers LLP
said, "A complex corporate operating model can be costly to manage
and to maintain. It can create specific challenges as well, not
the least of which is impaired operational efficiency. Change is
never easy however, provided the change effort is recognized and
managed appropriately, the size of the prize at the end of a
successful implementation can be significant -- a cost effective,
risk-compliant, tax efficient, and flexible organization which is
truly fit for the future, whatever it might hold."
About PricewaterhouseCoopers
PricewaterhouseCoopers -- http://www.pwc.com/-- provides
industry-focused assurance, tax and advisory services to build
public trust and enhance value for our clients and their
stakeholders. More than 163,000 people in 151 countries across
our network share their thinking, experience and solutions to
develop fresh perspectives and practical advice.
"PricewaterhouseCoopers" refers to the network of member firms of
PricewaterhouseCoopers International Limited, each of which is a
separate and independent legal entity.
* Colony Capital Declared Winning Bidder of $1 Billion in Loans
---------------------------------------------------------------
The Federal Deposit Insurance Corporation has closed on a sale of
an equity interest in a limited liability company created to hold
certain assets out of 22 failed bank receiverships. The winning
bidder of the Multibank Structured Transaction was Colony Capital
Acquisitions, LLC, Los Angeles, CA.
The sale was conducted on a competitive basis with bids received
on December 17, 2009. A total of 21 groups submitted bids to
purchase a 40% ownership interest in the newly formed LLC. The
participating FDIC receiverships will hold the remaining 60%
equity interest in the LLC.
The FDIC as Receiver for the failed banks conveyed to the LLC a
portfolio of approximately 1200 distressed commercial real estate
loans, of which 70% were delinquent. Collectively, the loans have
an unpaid principal balance of $1.02 billion. The FDIC said 75%
of the collateral of the portfolio is located in Georgia,
California, Nevada and Florida. The participating FDIC
receiverships provided financing to the LLC by issuing
approximately $233 million of corporate guaranteed notes. Colony
Capital paid a total of approximately $90.5 million (net of
working capital) in cash for its 40% equity stake in the LLC,
which equals approximately 44% of the unpaid principal balance of
the assets. As the LLC's managing equity owner, Colony Capital
will provide for the management, servicing and ultimate
disposition of the LLC's assets.
The bid received from Colony Capital Acquisition, LLC, was
determined to be the offer that resulted in the greatest return to
the participating receiverships. All of the loans were from banks
that have failed during the past 18 months. The sale closed on
January 7, 2010.
Congress created the Federal Deposit Insurance Corporation --
http://www.fdic.gov/-- in 1933 to restore public confidence in
the nation's banking system. The FDIC insures deposits at the
nation's 8,099 banks and savings associations and it promotes the
safety and soundness of these institutions by identifying,
monitoring and addressing risks to which they are exposed. The
FDIC receives no federal tax dollars - insured financial
institutions fund its operations.
* Commercial Property Is Biggest Risk, U.S. Bank Examiners Find
---------------------------------------------------------------
ABI reports that U.S. bank examiners concluded during a recent
review that losses on commercial real estate loans pose the
biggest risk to U.S. banks this year, troubling smaller lenders,
but unlikely to threaten the entire financial system.
* Las Vegas Real Estate Posts 2009 Gains Despite Recession
----------------------------------------------------------
According to newly released statistics, the Las Vegas real estate
market is poised for a comeback. Data compiled by the Greater Las
Vegas Association of Realtors and the state's top real estate
company show that approximately 95,000 transactions, or an
estimated 47,500 home sales, were made in 2009.
"Prudential Americana Group was involved in more than one out of
every ten home sales in Las Vegas last year," said Mark Stark, CEO
of the company. "Even though the average sales prices are down,
we posted nearly 50 percent more transactions than we did the
previous year. That is a great sign that the market is
stabilizing." According to the GLVAR's records, the average
single family home sales price was $204,000 in December 2008. In
December of 2009, the average sale price was $165,000.
"Prices are down 14 to 15 percent year over year, but that is a
victory after dropping three percent per month," said Forrest
Barbee, Prudential Americana Group's corporate broker and a GLVAR
board member. "Prices dropped 33 percent from December 2007 to
December 2008," he said.
One other bright spot Stark saw was the overall affordability of
homes. "People who thought in the past that home ownership was out
of reach have now come to understand that they have a golden
opportunity to not only purchase a home, but look forward to long-
term appreciation," he said.
One standout figure from 2009 is that 67 percent of all current
pending sales in Las Vegas are short sales, with 8,935 of 13,406.
And GLVAR now lists just 2,367 available REO, or bank-owned,
properties compared to nearly 10,000 one year ago.
"In 2009, the big trend in the Las Vegas resale market included
the significant increase in cash sales for both investors and
first time homebuyers," said Mr. Barbee. "We saw 41 percent of
home closings in December 2009 made with cash while FHA/VA buyers
continue to make up one third of the closings and conventional
loans." Mr. Barbee noted that over the past 12 months Las Vegas
has experienced a shrinking inventory of available properties --
most notably bank-owned listings. "This came in the wake of a
significant increase in overall demand, which resulted in record
high resale closings in the last half of 2009," he said.
"2010 should be the beginning of a recovery for residential real
estate," said Mr. Stark. "The actual extent of the recovery will
depend in part upon how successful Southern Nevada is in continued
job creation."
And for residential real estate, Barbee predicts that 2010 will be
the year that strides will be made to create a more efficient
climate for conducting short sales and loan modifications. "The
Home Affordability Financing Alternatives (HAFA) legislation will
pave the way for a much needed streamlined short sale process," he
said. "Short sales have been very, very difficult the past two
years. Banks have not been truly motivated to work on them
expeditiously and as a result they have taken anywhere from 6
months to 18 months to complete. The lengthy timeframes have led
to unusually high fallout rates in those escrows."
Prudential Americana Group -- http://www.americanagroup.com/-- is
Nevada's top selling real estate company. It is an independently
owned and operated member of Prudential Real Estate affiliates.
* PwC Sees Changes in Forest, Paper & Packaging Industries
----------------------------------------------------------
Forest, paper and fiber-based packaging companies face a changed
world requiring fundamental transformation within the industry,
according to PricewaterhouseCoopers' recent survey of 33 industry
executives based in North and Latin America, the Middle East,
Europe, Africa and Asia.
The survey, for the latest edition of PwC's annual CEO
Perspectives report, showed that while some European and North
American CEOs believe the worst is over, they anticipate a long
road ahead and a slow recovery. All CEOs in the mature markets
agree that it's unlikely that demand will return to pre-financial
crisis levels due to the rise of digital media for instance.
For executives in the emerging markets such as China, perspectives
differ more than ever from those in mature markets, as they face
continuing strong growth and a lack of structural decline for
paper products. Every Asian CEO PwC spoke to was bullish on the
future. Indeed, executives told PwC demand is already recovering
somewhat and they see FPP as a growing industry for their region.
Clive Suckling, global forest, paper and packaging leader at
PricewaterhouseCoopers, commented: "The economic crisis
exacerbated existing market declines and precipitated steep drops
in demand in many forest, paper and packaging companies. The
industry is standing on the brink of major changes and the need
for transformation is generally accepted.
"Executives need to look beyond short-term survival to the long-
term future of their companies and the new challenges ahead. For
instance every forest, paper and packaging company needs a
considered strategy around bioenergy and raise the profile of its
role in creating sustainable products."
For individual companies, CEOs told us that there is a need to:
Adjust capacity as the first step to long term survival.
Consolidation may be a precondition to achieving significant
reductions.
Improve cost structures. But not just cutting costs -- increasing
process innovation and efficient use of raw materials e.g. through
alternative uses of wood fiber, notably by producing energy and
fuels, to reduce costs in existing business and generate new
revenues.
Continue changing existing business models to maintain or restore
the health of core businesses.
Become far more innovative in every realm of existing operations
and in developing new businesses and collaborations.
Furthermore, CEOs believe that too many people still have a
negative perception of the industry's environmental impact, when
in reality the overall footprint is significantly less than is
popularly believed. For the industry, there is a need to
positively influence key stakeholder groups (i.e. policymakers,
customers and consumers at large) to position FPP as a truly
sustainable industry that derives the most value from every tree.
Potential collaborations and new revenue streams resulting from
new or alternative uses of fiber and biomass (energy, chemicals
etc.) may fundamentally alter the structure of the entire industry
in due course.
Clive Suckling, global forest, paper and packaging sector leader,
PricewaterhouseCoopers, concluded:
"Today's forest, paper and packaging executives are facing
decisions which more than ever could impact their companies for
decades to come. All will need to ensure that the main house is
standing on a firm foundation -- but many also need to build one
or more extensions, to house tomorrow's revenues."
About PricewaterhouseCoopers
PricewaterhouseCoopers -- http://www.pwc.com/-- provides
industry-focused assurance, tax and advisory services to build
public trust and enhance value for our clients and their
stakeholders. More than 163,000 people in 151 countries across
our network share their thinking, experience and solutions to
develop fresh perspectives and practical advice.
"PricewaterhouseCoopers" refers to the network of member firms of
PricewaterhouseCoopers International Limited, each of which is a
separate and independent legal entity.
* S&P Says 2009 Ends With 265 Defaults; 4 Issuers Default In 2010
-----------------------------------------------------------------
Standard & Poor's on Friday said global corporate defaults totaled
265 in full-year 2009 -- the highest annual tally since the
ratings agency's series began in 1981. It even exceeds the 229
defaults recorded in 2001 (the most recent recession), said an
article published Friday by Standard & Poor's, titled "Global
Corporate Default Update (Jan. 4 - 7, 2010) (Premium)."
By region, the U.S. led default activity with 193 defaults,
followed by the emerging markets with 36, Europe with 19, and the
other developed region (Australia, Canada, Japan, and New Zealand)
with 17. These tallies are all roughly twice their respective
regional default totals recorded in 2008.
"Distressed exchanges led default activity, accounting for 103
defaults," said Diane Vazza, head of Standard & Poor's Global
Fixed Income Research Group. "Missed interest or principal
payments came in second with 88 defaults, followed by 69
bankruptcy-related defaults and five defaults stemming from other
reasons, including regulatory or government takeovers."
So far in 2010, three U.S.-based issuers and one Canadian issuer
have defaulted. Two of the defaults resulted from distressed
exchanges and two were due to missed interest and principal
payments.
Despite unprecedented turbulence in the credit markets and record-
high default volume since 2008, the ability of corporate credit
ratings to serve as an effective measure of relative default risk
remains intact. This is evidenced by several factors, such as 87%
of the issuers that defaulted in 2009 were rated speculative grade
('BB+' and lower) prior to default, investment-grade-rated issuers
('BBB-' and above) have a 99% survival rate within a one-year time
horizon, and the majority of defaults in 2009 stemmed from the
weakest end of the credit spectrum, known as weakest links.
Globally, 278 issuers are weakest links (entities rated 'B-' and
lower with a negative outlook or ratings on CreditWatch negative),
and the regional distribution of weakest links closely mirrors the
default experience in 2009.
Of the global corporate defaulters in 2009, 40% of issues with
available recovery ratings had recovery ratings of '6' (indicating
S&P's expectation for negligible recovery of 0%-10%), 15% of
issues had recovery ratings of '5' (modest recovery prospects of
10%-30%), 12% had recovery ratings of '4' (average recovery
prospects of 30%-50%), and 11% had recovery ratings of '3'
(meaningful recovery prospects of 50%-70%). And for the remaining
two rating categories, 12% of issues had recovery ratings of '2'
(substantial recovery prospects of 70%-90%) and 10% of issues had
recovery ratings of '1' (very high recovery prospects of 90%-
100%).
* Wave of Bankruptcies Hits States Hammered by Housing Bust
-----------------------------------------------------------
ABI reports that personal bankruptcies soared last year in Western
states hit hardest by the real-estate bust.
* David Schwartzbaum Joins Greenberg Traurig
--------------------------------------------
The international law firm Greenberg Traurig LLP announced the
addition of M&A shareholder David M. Schwartzbaum to its New York
Corporate and Securities Practice. Schwartzbaum joined the firm
from Latham & Watkins LLP, where he was a senior corporate
partner.
"We see this period of transformational change in the legal market
as an opportunity to add key practitioners to benefit our
clients," said Richard A. Rosenbaum, President of Greenberg
Traurig. "In 2009, we made a number of strategic additions,
including Bruce Zirinsky as Co-Chair of the Business
Reorganization and Bankruptcy Practice, who joined with his team
in New York, and Paul Maher, as Chair of our new London office
(now with more than 25 lawyers), who is a senior leader of our
global M&A practice. We have long enjoyed an exceptional M&A
practice, with strong market leaders throughout our firm, and we
are pleased to start the new decade by adding David to that team,
a topnotch attorney who will help strengthen our corporate M&A
practice worldwide."
Schwartzbaum's practice includes the representation of principals
and financial advisors in public and private M&A transactions.
Over the course of his career, Schwartzbaum has handled negotiated
and unsolicited M&A transactions, cash and stock-for-stock
mergers, tender offers, exchange offers, cross-border
transactions, special committee representations, going-private
transactions and takeover defense assignments.
Gary Epstein, the Chair of the firm's Corporate and Securities
Practice, adds, "David is the kind of quality and cultural fit we
have always sought when bringing aboard key practice leaders. We
are taking the opportunity to form a Global M&A Steering
Committee, consisting of key leaders throughout the firm, to
elevate our entire M&A practice. I am pleased that David has
agreed to serve as a Co-Chair of this group."
Paul Maher, Chair of the firm's London office and currently Co-
Chair of its M&A Practice, and Patricia Menendez-Cambo, Chair of
the firm's Global Practice, both expressed excitement about this
addition and both will be involved in the M&A steering committee
when it is formed.
Maher said, "David's superior ability and reputation for advising
companies and financial advisors in complex M&A transactions,
coupled with the existing talent at the firm, will provide greater
value to clients as they evaluate and embark on future business
opportunities. I look forward to partnering with him across
continents."
"I look forward to working closely with David as we build the
practice globally," added Menendez-Cambo.
"I am delighted to be joining Greenberg Traurig. I believe that my
clients can benefit from its unique platform and its intense focus
on both quality and client service," said Schwartzbaum. "The
firm's strategic vision, its balanced model and its stability
during uncertain times, combined with its uniquely empowering and
nimble culture, make this the opportune time to help build its M&A
practice and leverage its platform and competitive position in the
marketplace."
Among Schwartzbaum's recent transactions are the representations
of CVT Therapeutics in its $1.4 billion sale to Gilead and of
Axcan Pharma in its $1.3 billion sale to an affiliate of TPG. As
part of his M&A practice, Schwartzbaum represents many leading
investment banking and advisory firms. His recent financial
advisory transactions include the representations of the financial
advisors to Stanley Works in its pending $4.5 billion merger with
Black & Decker and one of the financial advisors to XTO Energy in
its pending $41 billion merger with Exxon Mobil.
Schwartzbaum received his J.D., cum laude, from Harvard Law School
in 1987, and his M.A. and B.A., summa cum laude, from Yale
University in 1984.
Comprised of more than 350 lawyers, Greenberg Traurig's Corporate
and Securities Practice provides advice and services to companies
and entrepreneurs throughout the Americas, Europe and Asia.
Greenberg Traurig's practice groups and attorneys have been
recognized as No. 1 in their respective geographic regions by The
National Law Journal, Chambers & Partners, Corporate Board Member
magazine, Latin Lawyer magazine and numerous regional and local
professional publications.
About Greenberg Traurig LLP
Greenberg Traurig LLP is an international, full-service law firm
with approximately 1750 attorneys serving clients from more than
30 offices in the United States, Europe and Asia. In the U.S.,
the firm has more offices than any other among the Top 20 on The
National Law Journal's 2009 NLJ 250. In the U.K., the firm
operates as Greenberg Traurig Maher LLP. Additionally, Greenberg
Traurig has strategic alliances with the following independent law
firms: Studio Santa Maria in Milan and Rome, TA Lawyers GKJ in
Tokyo, and Weber Law Office in Zurich. The firm was Chambers and
Partners' USA Law Firm of the Year in 2007 and among the Top 3 in
the International Law Firm of the Year at the 2009 The Lawyer
Awards.
* Epiq Systems Ranks #1 for Corporate Restructuring Engagements
---------------------------------------------------------------
Epiq Systems, Inc. attained the top market share for number of new
corporate restructuring engagements during 2009. The company has
expanded its capacity to support increased volumes and begins 2010
with a strong inventory of cases in the early stages of
administration while continuing to develop a robust pipeline of
prospective new matters among anticipated 2010 filings.
Epiq was retained on signature engagements throughout 2009 from
clients in a wide variety of industries. elect retentions
included Chrysler, Thornburg Mortgage, Lyondell Chemical, Capmark
Financial, BankUnited Financial, Nortel Networks, Smurfit-Stone
Container and AbitibiBowater. Chapter 11 matters are frequently
complex, multi-year engagements that provide enhanced financial
visibility into future periods.
As previously reported, bankruptcy filings increased 34% over the
prior year for the government's fiscal year ended September 30,
2009, exceeding 1.4 million according to the Administrative Office
of the U.S. Courts. The quarter ended September 30, 2009 had more
new bankruptcy filings than any quarter since the enactment of new
bankruptcy legislation in 2005.
Tom W. Olofson, chairman and CEO, and Christopher E. Olofson,
president and COO of Epiq Systems stated, "Our bankruptcy group
continues to demonstrate industry leadership in each of Chapter 7,
11 and 13 matters. Our Chapter 11 market leadership position
reflects our commitment and capabilities in meeting the challenges
of the size, number and complexity of corporate restructuring
filings. In addition, our trustee services deposit portfolio
reached an all time high of $2.0 billion in the fourth quarter of
2009."
About Epiq Systems
Epiq Systems is a leading global provider of integrated technology
solutions for the legal profession. Our solutions streamline the
administration of bankruptcy, litigation, financial transactions
and regulatory compliance matters. We offer innovative technology
solutions for electronic discovery, document review, legal
notification, claims administration and controlled disbursement of
funds. Our clients include leading law firms, corporate legal
departments, bankruptcy trustees, government agencies and other
professional advisors who require innovative technology,
responsive service and deep subject-matter expertise.
* Arent Fox Names George Angelich as Partner
--------------------------------------------
Arent Fox LLP has named George Angelich, 41, as a partner in the
firm's bankruptcy and financial restructuring practice at its
office in New York City.
"George has distinguished himself with the excellence he brings to
our clients and the practice of law. We are proud to have him as
a colleague and congratulate him on his expanded role at Arent
Fox," said Managing Partner William R. Charyk.
George's practice on corporate reorganization and bankruptcy
matters. He represents committees of unsecured creditors, secured
creditors, indenture trustees, bondholder and noteholder groups,
and other entities in bankruptcy reorganization and liquidation
proceedings. Prior to joining Arent Fox, George served as a law
clerk to the Honorable Arthur J. Gonzalez, US Bankruptcy Judge for
the Southern District of New York. He also served as a law clerk
to the Honorable Cecelia G. Morris, U.S. Bankruptcy Judge for the
Southern District of New York.
Arent Fox LLP -- http://www.arentfox.com/-- with offices in
Washington, DC, New York and Los Angeles, provides services in
areas including intellectual property, real estate, bankruptcy and
financial restructuring, health care, life sciences, and complex
litigation. With more than 350 lawyers nationwide, Arent Fox has
extensive experience in corporate securities, financial
restructuring, bankruptcy, government relations, labor and
employment, finance, tax, corporate compliance, and the global
business market. The firm represents Fortune 500 companies,
government agencies, trade associations, foreign governments, and
other entities.
* BOND PRICING -- For the Week From January 4 to 8, 2009
--------------------------------------------------------
Company Coupon Maturity Bid Price
------- ------ -------- ---------
155 E TROPICANA 8.750% 4/1/2012 21.000
ABITIBI-CONS FIN 7.875% 8/1/2009 12.000
ADVANTA CAP TR 8.990% 12/17/2026 10.000
ALERIS INTL INC 9.000% 12/15/2014 6.000
ALERIS INTL INC 10.000% 12/15/2016 5.100
AMBAC INC 9.375% 8/1/2011 56.999
AMBASSADORS INTL 3.750% 4/15/2027 50.000
AMER GENL FIN 5.000% 1/15/2010 98.090
AMR CORP 10.450% 3/10/2011 75.000
ANTHRACITE CAP 11.750% 9/1/2027 20.000
APRIA HEALTHCARE 3.375% 9/1/2033 60.000
ARCO CHEMICAL CO 10.250% 11/1/2010 78.000
AT HOME CORP 0.525% 12/28/2018 0.125
ATHEROGENICS INC 1.500% 2/1/2012 0.375
BAC-CALL01/10 6.100% 7/15/2016 99.500
BANK NEW ENGLAND 8.750% 4/1/1999 10.000
BANK NEW ENGLAND 9.875% 9/15/1999 9.500
BANKUNITED FINL 3.125% 3/1/2034 5.625
BANKUNITED FINL 6.370% 5/17/2012 6.950
BLOCKBUSTER INC 9.000% 9/1/2012 60.450
BOWATER INC 6.500% 6/15/2013 29.650
BOWATER INC 9.500% 10/15/2012 33.500
CAPMARK FINL GRP 5.875% 5/10/2012 31.000
CHAMPION ENTERPR 2.750% 11/1/2037 2.500
CITADEL BROADCAS 4.000% 2/15/2011 5.000
CLEAR CHANNEL 4.500% 1/15/2010 100.000
COLLINS & AIKMAN 10.750% 12/31/2011 0.010
COLLINS & AIKMAN 12.875% 8/15/2012 0.998
COMPUCREDIT 3.625% 5/30/2025 43.375
COMPUDYNE CORP 6.250% 1/15/2011 39.500
CONGOLEUM CORP 8.625% 8/1/2008 21.003
CREDENCE SYSTEM 3.500% 5/15/2010 64.250
DECODE GENETICS 3.500% 4/15/2011 6.188
DECODE GENETICS 3.500% 4/15/2011 6.250
DECODE GENETICS 3.500% 4/15/2011 5.875
DEX MEDIA INC 8.000% 11/15/2013 30.000
DEX MEDIA INC 9.000% 11/15/2013 28.500
DEX MEDIA INC 9.000% 11/15/2013 28.000
DEX MEDIA WEST 9.875% 8/15/2013 34.500
DOWNEY FINANCIAL 6.500% 7/1/2014 26.000
DR HORTON 4.875% 1/15/2010 99.000
FAIRPOINT COMMUN 13.125% 4/1/2018 11.375
FAIRPOINT COMMUN 13.125% 4/2/2018 12.500
FEDDERS NORTH AM 9.875% 3/1/2014 0.740
FINLAY FINE JWLY 8.375% 6/1/2012 0.625
FRANKLIN BANK 4.000% 5/1/2027 2.000
GENERAL MOTORS 7.125% 7/15/2013 26.500
GENERAL MOTORS 7.700% 4/15/2016 27.000
GENERAL MOTORS 9.450% 11/1/2011 23.750
GMAC LLC 5.300% 1/15/2010 99.000
HAIGHTS CROSS OP 11.750% 8/15/2011 40.500
HAWAIIAN TELCOM 9.750% 5/1/2013 2.300
INDALEX HOLD 11.500% 2/1/2014 1.065
INN OF THE MOUNT 12.000% 11/15/2010 49.750
INTL LEASE FIN 3.250% 1/15/2010 99.100
INTL LEASE FIN 4.000% 1/15/2010 99.550
INTL LEASE FIN 4.150% 1/15/2010 99.311
INTL LEASE FIN 4.200% 2/15/2010 96.066
IRIDIUM LLC/CAP 10.875% 7/15/2005 0.125
LANDRY'S RESTAUR 9.500% 12/15/2014 85.140
LEHMAN BROS HLDG 1.500% 3/23/2012 17.000
LEHMAN BROS HLDG 4.375% 11/30/2010 20.000
LEHMAN BROS HLDG 4.500% 7/26/2010 21.000
LEHMAN BROS HLDG 4.500% 8/3/2011 18.000
LEHMAN BROS HLDG 4.700% 3/6/2013 14.900
LEHMAN BROS HLDG 4.800% 2/27/2013 12.500
LEHMAN BROS HLDG 4.800% 3/13/2014 22.250
LEHMAN BROS HLDG 5.000% 1/14/2011 20.370
LEHMAN BROS HLDG 5.000% 1/22/2013 18.500
LEHMAN BROS HLDG 5.000% 2/11/2013 16.625
LEHMAN BROS HLDG 5.000% 3/27/2013 18.000
LEHMAN BROS HLDG 5.000% 8/5/2015 10.868
LEHMAN BROS HLDG 5.100% 1/28/2013 17.500
LEHMAN BROS HLDG 5.150% 2/4/2015 16.250
LEHMAN BROS HLDG 5.250% 2/6/2012 21.500
LEHMAN BROS HLDG 5.250% 1/30/2014 12.000
LEHMAN BROS HLDG 5.250% 2/11/2015 17.500
LEHMAN BROS HLDG 5.500% 4/4/2016 20.500
LEHMAN BROS HLDG 5.500% 2/4/2018 15.000
LEHMAN BROS HLDG 5.500% 2/19/2018 18.250
LEHMAN BROS HLDG 5.500% 11/4/2018 16.706
LEHMAN BROS HLDG 5.550% 2/11/2018 18.250
LEHMAN BROS HLDG 5.600% 1/22/2018 18.500
LEHMAN BROS HLDG 5.625% 1/24/2013 22.750
LEHMAN BROS HLDG 5.700% 1/28/2018 18.070
LEHMAN BROS HLDG 5.700% 4/13/2029 13.500
LEHMAN BROS HLDG 5.750% 4/25/2011 21.010
LEHMAN BROS HLDG 5.750% 7/18/2011 22.000
LEHMAN BROS HLDG 5.750% 5/17/2013 21.250
LEHMAN BROS HLDG 6.000% 4/1/2011 15.375
LEHMAN BROS HLDG 6.000% 7/19/2012 21.250
LEHMAN BROS HLDG 6.000% 6/26/2015 12.875
LEHMAN BROS HLDG 6.000% 12/18/2015 17.250
LEHMAN BROS HLDG 6.000% 2/12/2018 17.250
LEHMAN BROS HLDG 6.000% 1/22/2020 16.500
LEHMAN BROS HLDG 6.000% 2/12/2020 16.750
LEHMAN BROS HLDG 6.000% 1/29/2021 16.625
LEHMAN BROS HLDG 6.200% 9/26/2014 21.500
LEHMAN BROS HLDG 6.250% 2/5/2021 17.500
LEHMAN BROS HLDG 6.500% 2/28/2023 16.000
LEHMAN BROS HLDG 6.500% 3/6/2023 17.000
LEHMAN BROS HLDG 6.600% 10/3/2022 15.250
LEHMAN BROS HLDG 6.625% 1/18/2012 22.750
LEHMAN BROS HLDG 6.625% 7/27/2027 16.000
LEHMAN BROS HLDG 6.800% 9/7/2032 17.000
LEHMAN BROS HLDG 6.850% 8/23/2032 17.000
LEHMAN BROS HLDG 6.900% 9/1/2032 16.000
LEHMAN BROS HLDG 6.900% 6/20/2036 11.900
LEHMAN BROS HLDG 7.000% 4/16/2019 16.500
LEHMAN BROS HLDG 7.000% 5/12/2023 17.000
LEHMAN BROS HLDG 7.000% 7/27/2037 17.308
LEHMAN BROS HLDG 7.000% 12/28/2037 15.700
LEHMAN BROS HLDG 7.000% 2/1/2038 18.000
LEHMAN BROS HLDG 7.000% 2/7/2038 15.000
LEHMAN BROS HLDG 7.000% 2/8/2038 18.500
LEHMAN BROS HLDG 7.250% 2/27/2038 16.625
LEHMAN BROS HLDG 7.350% 5/6/2038 17.000
LEHMAN BROS HLDG 7.730% 10/15/2023 15.500
LEHMAN BROS HLDG 7.875% 11/1/2009 20.100
LEHMAN BROS HLDG 7.875% 8/15/2010 20.945
LEHMAN BROS HLDG 8.000% 3/5/2022 14.000
LEHMAN BROS HLDG 8.000% 3/17/2023 16.625
LEHMAN BROS HLDG 8.050% 1/15/2019 15.500
LEHMAN BROS HLDG 8.500% 8/1/2015 17.000
LEHMAN BROS HLDG 8.500% 6/15/2022 15.500
LEHMAN BROS HLDG 8.750% 12/21/2021 17.000
LEHMAN BROS HLDG 8.800% 3/1/2015 18.875
LEHMAN BROS HLDG 8.920% 2/16/2017 20.000
LEHMAN BROS HLDG 9.500% 12/28/2022 20.000
LEHMAN BROS HLDG 9.500% 1/30/2023 16.625
LEHMAN BROS HLDG 9.500% 2/27/2023 18.500
LEHMAN BROS HLDG 10.000% 3/13/2023 17.500
LEHMAN BROS HLDG 11.000% 10/25/2017 18.000
LEHMAN BROS HLDG 11.000% 6/22/2022 16.375
LEHMAN BROS HLDG 11.000% 8/29/2022 17.250
LEHMAN BROS HLDG 11.000% 3/17/2028 16.000
LEHMAN BROS HLDG 11.500% 9/26/2022 15.021
LEHMAN BROS HLDG 18.000% 7/14/2023 18.250
LTX-CREDENCE 3.500% 5/15/2011 58.000
MAGNA ENTERTAINM 7.250% 12/15/2009 14.500
MAJESTIC STAR 9.500% 10/15/2010 65.000
MAJESTIC STAR 9.750% 1/15/2011 10.560
MERISANT CO 9.500% 7/15/2013 11.563
MERRILL LYNCH 2.700% 3/9/2011 96.000
METALDYNE CORP 10.000% 11/1/2013 3.500
METALDYNE CORP 11.000% 6/15/2012 2.000
MORRIS PUBLISH 7.000% 8/1/2013 32.500
NEFF CORP 10.000% 6/1/2015 12.000
NETWORK COMMUNIC 10.750% 12/1/2013 40.250
NEWARK GROUP INC 9.750% 3/15/2014 37.000
NORTH ATL TRADNG 9.250% 3/1/2012 36.500
OSCIENT PHARM 12.500% 1/15/2011 4.050
PMI CAPITAL I 8.309% 2/1/2027 19.500
PRIMUS TELECOM 13.000% 12/15/2016 98.500
PRIMUS TELECOM 13.000% 12/15/2016 98.500
RAFAELLA APPAREL 11.250% 6/15/2011 42.725
RAIT FINANCIAL 6.875% 4/15/2027 40.062
RH DONNELLEY 6.875% 1/15/2013 11.000
RH DONNELLEY 6.875% 1/15/2013 12.000
RH DONNELLEY 6.875% 1/15/2013 12.105
RH DONNELLEY 8.875% 1/15/2016 11.500
RH DONNELLEY 8.875% 10/15/2017 12.000
ROTECH HEALTHCA 9.500% 4/1/2012 58.625
SILVERLEAF RES 8.000% 4/1/2010 90.700
SIX FLAGS INC 9.625% 6/1/2014 34.000
SIX FLAGS INC 9.750% 4/15/2013 32.000
SPHERIS INC 11.000% 12/15/2012 41.000
STANLEY-MARTIN 9.750% 8/15/2015 30.000
STATION CASINOS 6.000% 4/1/2012 20.700
STATION CASINOS 6.500% 2/1/2014 0.500
STATION CASINOS 6.625% 3/15/2018 1.250
STATION CASINOS 7.750% 8/15/2016 16.000
THORNBURG MTG 8.000% 5/15/2013 9.000
TIMES MIRROR CO 7.250% 3/1/2013 26.000
TOM'S FOODS INC 10.500% 11/1/2004 2.250
TOUSA INC 7.500% 3/15/2011 4.500
TOUSA INC 7.500% 1/15/2015 6.000
TOUSA INC 9.000% 7/1/2010 51.500
TOUSA INC 9.000% 7/1/2010 51.000
TOUSA INC 10.375% 7/1/2012 4.000
TRANSMERIDIAN EX 12.000% 12/15/2010 12.114
TRIBUNE CO 4.875% 8/15/2010 26.100
TRIMAS CORP 9.875% 6/15/2012 97.025
TRS-CALL01/10 9.875% 6/15/2012 102.250
TRUMP ENTERTNMNT 8.500% 6/1/2015 1.250
VERASUN ENERGY 9.375% 6/1/2017 15.750
VERENIUM CORP 5.500% 4/1/2027 44.000
VION PHARM INC 7.750% 2/15/2012 12.000
WASH MUT BANK NV 5.550% 6/16/2010 43.000
WASH MUT BANK NV 5.950% 5/20/2013 0.250
WASH MUT BANK NV 6.750% 5/20/2036 0.500
WCI COMMUNITIES 7.875% 10/1/2013 1.550
WII COMPONENTS 10.000% 2/15/2012 60.000
YELLOW CORP 3.375% 11/25/2023 114.500
YELLOW CORP 5.000% 8/8/2023 83.125
*********
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. Marites Claro, Joy Agravante, Rousel Elaine Tumanda, Howard
C. Tolentino, 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 2010. 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 ***