/raid1/www/Hosts/bankrupt/TCR_Public/100120.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Wednesday, January 20, 2010, Vol. 14, No. 19
Headlines
ADVANCED BLAST: Assets to be Sold; Bids Due Feb. 1
AEROTHRUST CORP: U.S. Trustee Forms 5-Member Creditors Committee
AEROTHRUST CORP: Section 341(a) Meeting Set for January 29
AFC ENTERPRISES: Brenner West Discloses 4.7% Equity Stake
AFFYMAX INC: Board Hikes Annual Base Salaries, Performance Bonuses
ALFRED WILEY CLARK: Voluntary Chapter 11 Case Summary
ALL AMERICAN PROPERTIES: Voluntary Chapter 11 Case Summary
AMERICAN AXLE: Says 2009 Full Year Sales Roughly $1.5 Billion
AMR CORP: To Release Fourth Quarter 2009 Earnings Today
ANAVERDE LLC: Files for Chapter 11 for Sale
ANAVERDE LLC: Case Summary & 20 Largest Unsecured Creditors
ARTIO GLOBAL: To Release Q4 and Full Year 2009 Results on Feb. 2
ARTHUR FEFFERMAN: Case Summary & 10 Largest Unsecured Creditors
ARVINMERITOR INC: Registers 1.2MM Shares Issuable Under 2010 Plan
ASHBY ENTERPRISES: Case Summary & 20 Largest Unsecured Creditors
ATENOGENES BAEZ: Case Summary & 8 Largest Unsecured Creditors
AURA SYSTEMS: Posts $2.17-Mil. Net Loss in November 30 Quarter
AWESOME ACQUISITION: Restructuring Won't Move Moody's 'B2' Rating
BARE ESCENTUALS: Moody's Reviews 'Ba3' Corporate Family Rating
BERNIE'S AUDIO: Updated Chapter 11 Case Summary
BKMJ PROPERTIES: Case Summary & 2 Largest Unsecured Creditors
BLOUNT INT'L: Expects to Report $502MM in Fiscal Year 2009 Sales
BOB STEVENS: Case Summary & 3 Largest Unsecured Creditors
BROADWAY 401: DIP Financing, Cash Collateral Use Gets Interim Nod
BROADWAY 401: Files Schedules of Assets & Liabilities
BROADWAY 401: Taps Lovells as Bankruptcy Counsel
BROADWAY 401: Wants to Hire Bayard P.A. as Delaware Counsel
BRUNDAGE-BONE: Case Summary & 20 Largest Unsecured Creditors
CABLEVISION SYSTEMS: Inks Registration Rights Deal with Dolan
CABLEVISION SYSTEMS: Board Approves Distribution of MSG Shares
CACI INTERNATIONAL: Moody's Gives Pos. Outlook, Keeps 'Ba2' Rating
CANWEST GLOBAL: Frank King Resigns From Board of Directors
CANWEST GLOBAL: Grafstein et al. Plan to Bid for 3 Daily Papers
CATHOLIC CHURCH: Associated Press Intervenes in Delaware Case
CATHOLIC CHURCH: Wil. Committee Gets OK for Pachulski as Counsel
CATHOLIC CHURCH: Wilmington Committee Has LECG as Advisor
CENTRAL METAL: Asks for Court's Permission to Use Cash Collateral
CHARTER COMMUNICATIONS: Unions Find Holes in Reorganization Plan
CHEMTURA CORP: Wins Nod to Auction Off PVC Additives February 22
CHI SOUTHWEST: Updated Chapter 11 Case Summary
CHENIERE ENERGY: Board Approves 2% Base Salary Increase for Execs
CHOICE HOTELS: Gets Remaining 60% Stake in India Hotel Chain
CINCINNATI BELL: Inks Deal with NICE Systems and AnswerOn
CITIGROUP INC: Reports $1.6 Billion Full Year 2009 Net Loss
CITY CAPITAL: Posts $1.36-Mil. Net Loss in Q2 2009
COASTAL CONCRETE II: Completes Out-of-Court Restructuring of Debt
CRUSADER ENERGY: February 19 Set as Post-Confirmation Bar Date
CYTORI THERAPEUTICS: Gets FDA Marketing Clearance for Fat Graft
DAVID HAASE: Voluntary Chapter 11 Case Summary
DEXCOM INC: Says Q4 Product Revenues Up 43%; Canaccord Buys Shares
DHP HOLDINGS: Has Until April 30 to Propose a Chapter 11 Plan
DISH NETWORK: Court Awards $51 Million in Anti-Piracy Case
DUDERSTADT FOUNDATION: Case Summary & 20 Largest Unsec. Creditors
EL JEFE'S PROPERTIES: Case Summary & Unsecured Creditor
EXELIXIS INC: Promotes Lupe Rivera to EVP for Operations
EQUINOX HOLDINGS: Moody's Assigns 'B1' Rating on $400 Mil. Notes
ERICKSON RETIREMENT: Capmark Wants Panel Disbanded as to Littleton
ERICKSON RETIREMENT: PNC Wants Panel Disbanded as to 5 Debtors
ERICKSON RETIREMENT: Says Sec. 1104 Examiner Unnecessary
EXELIXIS INC: Promotes Lupe Rivera to EVP for Operations
FILI ENTERPRISES: Asks for Court OK for $1-Mil. DIP Financing
FILI ENTERPRISES: Court Grants Interim OK to Use Cash Collateral
FILI ENTERPRISES: Amends List Largest Unsecured Creditors
FILI ENTERPRISES: Sec. 341 Creditors Meeting Set for Feb. 16
FILI ENTERPRISES: Asks for Court OK for $1-Mil. DIP Financing
FILI ENTERPRISES: Court Grants Interim OK to Use Cash Collateral
FONTAINEBLEAU LAS VEGAS: Brugnara Presents $170MM "All Cash" Offer
FUNDAMENTAL PROVISIONS: Gets Final Approval to Access Lenders Cash
GENERAL MOTORS: Seeks Union Concessions at Former Delphi Plants
GLG PARTNERS: Restores Base Salaries of Executives
GREAT ATLANTIC & PACIFIC TEA: Q3 Net Loss Widens to $559,586,000
GRIFFIN & SHULA: Case Summary & 20 Largest Unsecured Creditors
GULFSTREAM INT'L: Has Deal to Convert $1.5MM Debt to Stock
HACKETTS STORES: Forms HIIO Inc to Offer Clothing Apparel
HAROLD COLE: Updated Chapter 11 Case Summary
HEILIG-MEYERS: Liquidation Trust Distributes RoomStore Stock
HOVNANIAN ENTERPRISES: 10-5/8% Notes Exchange Bid Expires Feb. 17
INDUSTRY WEST: Case Summary & 7 Largest Unsecured Creditors
INTERNATIONAL ALUMINUM: Has Official Committee of Creditors
JAMES KNOWLES: Voluntary Chapter 11 Case Summary
JAMES TIERNO: Case Summary & 14 Largest Unsecured Creditors
JAPAN AIRLINES: Files to Reorganize in Tokyo and NYC
JAPAN AIRLINES: Chapter 15 Case Summary
JOHN DAVIS: Case Summary & 20 Largest Unsecured Creditors
JOHNSON BROADCASTING: Confirmation Hearing Set for February 23
JURGIELEWICZ DUCK: Case Summary & 20 Largest Unsecured Creditors
KDJ ADVERTISING: Blames Recession for Chapter 11 Filing
KRAVE ENTERTAINMENT: Files for Chapter 11 to Continue Business
LANDAMERICA FIN'L: CDC Wants Rule 2004 Exam on Records Custodian
LANDAMERICA FIN'L: R. Blue Sues Capital Title on Dischargeability
LANDAMERICA FIN'L: Sues Lehr Properties to Stay Suit
LEAF BRANDS: Neil Reithinger Steps Down as CFO and COO
LOCATION BASED: Posts $2.3 Million Net Loss in November 30 Quarter
LSP ENERGY: Moody's Junks Ratings on Cash Shortfall
MARKET STREET: Has Until January 21 to File Schedules & Statement
MECHANICAL TECHNOLOGY: Inks Common Stock Deal With Counter Point
MEDICURE INC: Posts C$176,000 Net Loss in November 30 Quarter
MEGA BRAND: Recapitalization Won't Affect Moody's 'Ca' Rating
MERIDIAN RESOURCE: Inks Compromise & Settlement Deal With Shell
MOODY'S CORP: To Release Q4 and Full-Year 2009 Results on Feb. 4
MORRIS PUBLISHIBNG: Files Chapter 11 with Plan
MORRIS PUBLISHING: Gets Court OK of Critical First-Day Motions
NATIONAL HOME: To Close Three Stores by March 2010
NORTHEAST BIOFUELS: Sunoco Hires ICM to Retrofit Ethanol Plant
NORTHEAST OHIO: Case Summary & 3 Largest Unsecured Creditors
OCEAN SMART: Poss $266,000 Net Loss in First Quarter Ended Nov. 30
PACIFIC ENERGY: Court OKs Sale of Beta Interests and SPBP Stock
PACIFIC ENERGY: Court Dismisses San Pedro Bay's Chapter 11 Case
PALM BEACH: Files Amended List of Largest Unsecured Creditors
PALM BEACH: Files Schedules of Assets and Liabilities
PARADISE SOUTH: Case Summary & 14 Largest Unsecured Creditors
PARLUX FRAGRANCES: Reports 3% Increase Net Sales in Third Quarter
PETER PIETRANGELO: Updated Chapter 11 Case Summary
PORT HOSPITALITY: Case Summary & 20 Largest Unsecured Creditors
PROTOSTAR LTD: U.S. Trustee Amends Members of Creditors Committee
QUEBECOR WORLD: Litigation Trust Files Over 1,600 Avoidance Suits
RAMSEY HOLDINGS: Files Schedules of Assets and Liabilities
R.B.G. CORP: Voluntary Chapter 11 Case Summary
REGIS INSURANCE: A.M. Best Downgrades FSR to 'B-'
RELIANCE AVIATION: Files for Chapter 11 Bankruptcy
RENEW ENERGY: Court Denies ALL Fuels' Plea to Reconsider Sale
RENEW ENERGY: Valero Energy Given Green Light for Plant Purchase
RICHARD MUNSON: Case Summary & 20 Largest Unsecured Creditors
RITZ COURT: Case Summary & 20 Largest Unsecured Creditors
RIVER WEST: Has Access Joffco Square Rental Until February 7
RONALD ALAN DAVIDOFF: Voluntary Chapter 11 Case Summary
RUFFIN ROAD: Case Summary & Unsecured Creditor
RYNESS COMPANY: Emerges from Chapter 11 Protection
SARASOTA ESTATE: Voluntary Chapter 11 Case Summary
SEQUENOM INC: Inks Deal to Resolve Class Action Lawsuit
SHAWN HUDSPETH: Case Summary & 11 Largest Unsecured Creditors
SHERWOOD FARMS: Files for Chapter 11 in Orlando
SINGLE TOUCH: Recurring Losses Prompt Going Concern Doubt
SINOBIOPHARMA INC: Earns $1.07 Million in November 30 Quarter
SMART ONLINE: Atlas Capital Reports 39% Equity Stake
SMURFIT-STONE: Calpine Corrugated Cash Use Extended Until Jan. 30
SMURFIT-STONE: Disclosure Statement Hearing on January 29
SMURFIT-STONE: Gets Nod to Arrange $1.2 Bil. Exit Financing
SMURFIT-STONE: IRS Wants Interest Payments for Tax Claims
SMURFIT-STONE: Sees $124-Mil. Net Loss This Year; Profit in 2011
TOUSA INC: Gets Approval for Amendment to CIGNA Pact
TOUSA INC: Has Protocol for 1,200 Adversary Proceedings
TOUSA INC: Proposes Waterford Waiver Agreement
UAL CORP: Completes $700 Million Sr. Notes Private Offering
UCBH HOLDINGS: Fitch Downgrades Issuer Default Rating to 'D'
UNIGENE LABORATORIES: Delays Effective Date of Shelf Prospectus
US AIRWAYS: 1st Circuit Rules on Rederford ADA Lawsuit
US AIRWAYS: Reports December Traffic Results
US AIRWAYS: To Release Full Year 2009 Results on January 28
U.S. INTER-MEX: Voluntary Chapter 11 Case Summary
V-STRATEGIC: Voluntary Chapter 11 Case Summary
VELOCITY EXPRESS: Debtor Now VEC Liquidating Following Assets Sale
WAVE SYSTEMS: Gets $5.7MM in Maintenance Orders for Automaker
WEST FELICIANA: Voluntary Chapter 11 Case Summary
WHITEHALL JEWELERS: Can Use Term Lenders Cash Until February 28
WOOD RIDGE DEVELOPMENT: Voluntary Chapter 11 Case Summary
WORKSTREAM INC: Posts $341,000 Net Loss in November 30 Quarter
WP HICKMAN: Court to Consider Plan Confirmation Tomorrow, Jan. 21
* Paul Berkowitz Returns to Greenberg Traurig
* Upcoming Meetings, Conferences and Seminars
*********
ADVANCED BLAST: Assets to be Sold; Bids Due Feb. 1
--------------------------------------------------
Advanced Blast Protection, Inc., has obtained Bankruptcy Court
Approval for the sale of all of its assets free and clear of all
liabilities. These assets consist primarily of the trade names
RhinoRunner and RhinoPAK; customer lists; technical data packages;
drawing packages; vehicle and product designs; manufacturing
processes and procedures, marketing materials, customer lists,
product formulations and patent rights for One-Way(TM) Glass (the
"Assets"). On a cumulative basis since 2004, there has been a
cumulative investment in the Assets of in excess of $18 Million
and they have generated in excess of $42 Million in sales.
The deadline for submission of written bids is 4:00 p.m. (Eastern
Standard Time) on February 1, 2010. Interested parties may
contact the Debtor through its counsel Leslie Gem Cloyd, Esq. with
the firm of Berger Singerman, P.A., 350 East Las Olas Boulevard,
Suite 1000, Fort Lauderdale, FL 33301 (Email:
LCloyd@bergersingerman.com or Telephone: (954) 377-0414), to
obtain information on the bidding procedures.
Advanced Blast Protection, Inc., filed for Chapter 11 on Nov. 2,
2009 (Bankr. S.D. Fla. Case No. 09-34185). Leslie Gern Cloyd,
Esq., represents the Debtor. The Chapter 11 petition says assets
and debts are $1,000,001 to $10,000,000.
AEROTHRUST CORP: U.S. Trustee Forms 5-Member Creditors Committee
----------------------------------------------------------------
Roberta A. DeAngelis, Acting U.S. Trustee for Region 3, appointed
five members to the official committee of unsecured creditors in
the Chapter 11 cases of AeroThrust Corporation, et al.
The Creditors Committee members are:
1. Lufthansa Technik AG
Attn: Robin McDougall
1640 Hempstead Tpk.
East Meadow, NY 11554
Tel: (516) 296-9284
Fax: (516) 296-9399
2. International Association of Machinists & Aerospace Workers,
AFL-CIO
Attn: William H. Haller
9000 Machinists Place
Upper Marlboro, MD 20772
Tel: (301) 967-4510
Fax: (301) 967-4594
3. Avioserv San Diego, Inc.
Attn: Jennifer Bowman
6495 Marindustry Place
San Diego, CA 92121
Tel: (858) 812-9747
Fax: (858) 812-9752
4. Tran Logistics, LLC
Attn: Lilly Tran
2801 NW 74th Ave., Suite 170
Miami, FL 33122
Tel: (305) 392-7464
Fax: (305) 392-7496
5. Phoenix Composite Solutions, LLC
Attn: John Scanlon
5911 Mission St.
Oscoda, MI 48750
Tel: (984) 739-7108
Fax: (989) 739-3364
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 Attnempt 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.
Miami, Florida-based AeroThrust Corporation provides engine
repair, maintenance and overhaul of the CFM56 and JT8D engines.
AeroThurst is 100% owned by Windstar Capital LLC, a Los Angeles-
based company that bought it from Saab AB for $50.1 million in
2001. The Company filed for Chapter 11 bankruptcy protection on
December 27, 2009 (Bankr. D. Del. Case No. 09-14541). Its
affiliate, AeroThrust Engine Leasing Holding Company, LLC, also
filed a Chapter 11 bankruptcy petition. AeroThurst holds a 51%
interest in AeroThrust Leasing Holding LLC. Thomas F. Driscoll,
III, Esq., at Bifferato LLC, assists the Debtors in their
restructuring efforts. AeroThrust Corp. listed $50,000,001 to
$100,000,000 in assets and $10,000,001 to $50,000,000 in
liabilities. The Company owes $11.6 million to secured lender PNC
Bank.
AEROTHRUST CORP: Section 341(a) Meeting Set for January 29
----------------------------------------------------------
Roberta DeAngelis, Acting U.S. Trustee for Region 3, will convene
a meeting of creditors in AeroThrust Corporation, et al.'s
Chapter 11 cases on January 29, 2010, at 3:00 p.m. The meeting
will be held at J. Caleb Boggs Federal Building, 2nd Floor, Room
2112, Wilmington, Delaware.
This is the first meeting of creditors required under Section
341(a) of the Bankruptcy Code in all bankruptcy cases.
All creditors are invited, but not required, to attend. This
Meeting of Creditors offers the one opportunity in a bankruptcy
proceeding for creditors to question a responsible office of the
Debtor under oath about the company's financial affairs and
operations that would be of interest to the general body of
creditors.
Miami, Florida-based AeroThrust Corporation provides engine
repair, maintenance and overhaul of the CFM56 and JT8D engines.
AeroThurst is 100% owned by Windstar Capital LLC, a Los Angeles-
based company that bought it from Saab AB for $50.1 million in
2001. The Company filed for Chapter 11 bankruptcy protection on
December 27, 2009 (Bankr. D. Del. Case No. 09-14541). Its
affiliate, AeroThrust Engine Leasing Holding Company, LLC, also
filed a Chapter 11 bankruptcy petition. AeroThurst holds a 51%
interest in AeroThrust Leasing Holding LLC. Thomas F. Driscoll,
III, Esq., at Bifferato LLC, assists the Debtors in their
restructuring efforts. AeroThrust Corp. listed $50,000,001 to
$100,000,000 in assets and $10,000,001 to $50,000,000 in
liabilities. The Company owes $11.6 million to secured lender PNC
Bank.
AFC ENTERPRISES: Brenner West Discloses 4.7% Equity Stake
---------------------------------------------------------
Brenner West Capital Advisors, LLC, discloses holding 1,202,749
shares or roughly 4.7% of the common stock of AFC Enterprises,
Inc., as of December 31, 2009.
AFC Enterprises, Inc. (NASDAQ: AFCE), develops, operates and
franchises quick-service restaurants under the trade names
Popeyes(R) Chicken & Biscuits and Popeyes(R) Louisiana Kitchen.
The Company operates two business segments: franchise restaurants
and company-operated restaurants.
At October 4, 2009, the Company had $115.7 million in total
assets, including $31.3 million in total current assets; against
$31.6 million in total current liabilities and $107.0 million in
total long-term liabilities, resulting in shareholders' deficit of
$22.9 million.
* * *
As reported by the Troubled Company Reporter on December 18, 2009,
Moody's Investors Service affirmed all ratings of AFC Enterprises,
including its B1 Corporate Family Rating and Ba3 rating of its
senior secured credit facilities, with a stable outlook. Its
Speculative Grade Liquidity rating was affirmed at SGL-3
concurrently.
AFFYMAX INC: Board Hikes Annual Base Salaries, Performance Bonuses
------------------------------------------------------------------
The Board of Directors of Affymax, Inc., on January 7, 2010,
approved (a) increases in annual base salaries for 2010, (b) cash
performance bonuses for 2009, and (c) stock option grants pursuant
to the 2006 Equity Incentive Plan for these executive officers:
No. of
2010 New 2010 Securities
Salary Base Underlying
Name Increase Salary Bonus Options
---- -------- -------- ----- ----------
Arlene M. Morris $18,445 $545,000 $244,058 $90,000
President and CEO
Anne-Marie $10,899 $374,199 $121,147 $35,000
Duliege, MD, MS
Chief Medical Officer
Paul B. Cleveland $11,695 $345,847 $108,503 $35,000
EVP-Corp Development
and CFO
Robert $7,850 $321,850 $100,586 $25,000
Venteicher, Ph.D.
SVP-Technical
Operations
Steven Love $7,417 $254,665 $68,129 $15,000
VP-Finance and
Chief Accounting
Officer
The shares vest and become exercisable in a series of 48
successive equal monthly installments over the four-year period
measured from January 1, 2010. The stock options have an exercise
price of $24.50 per share, the closing price of the Company's
Common Stock as reported by The NASDAQ Global Market on the date
of grant.
About Affymax Inc.
Headquartered in Palo Alto, California, Affymax, Inc., is a
biopharmaceutical company that develops novel drugs to improve the
treatment of serious and often life-threatening conditions. The
Company's product candidate, Hematide(TM), is designed to treat
anemia associated with chronic renal failure.
As of September 30, 2009, Affymax Inc. had $144,932,000 in total
assets against $147,664,000 in total liabilities. As of September
30, 2009, the Company had accumulated deficit of $360,542,000 and
stockholders' deficit of $2,732,000.
ALFRED WILEY CLARK: Voluntary Chapter 11 Case Summary
-----------------------------------------------------
Joint Debtors: Alfred Wiley Clark
aka Butch Clark
Janice Oglesby Clark
185 Battery Row
Wilsonville, AL 35007
Case No.: 10-00216
Type of Business:
Chapter 11 Petition Date: January 14, 2010
Court: United States Bankruptcy Court
Northern District Of Alabama (Birmingham)
Judge: Albert E. Radcliffe
Debtors' Counsel: Frederick Mott Garfield, Esq.
Sexton & Associates, PC
1330 21st Way South
Birmingham, AL 35205
Tel: (205) 558-4999
Fax: (205) 558-4997
Email: fmgarfield@sextonattorneys.com
Estimated Assets: $10,000,001 to $50,000,000
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.
ALL AMERICAN PROPERTIES: Voluntary Chapter 11 Case Summary
----------------------------------------------------------
Debtor: All American Properties, Inc.
1140 Avenue of the Americas, Suite 1800
New York, NY 10036
Bankruptcy Case No.: 10-00273
Chapter 11 Petition Date: January 14, 2010
Court: United States Bankruptcy Court
Middle District of Pennsylvania (Harrisburg)
Judge: Letitia Z. Paul
Debtor's Counsel: Robert E. Chernicoff, Esq.
Cunningham and Chernicoff PC
2320 North Second Street
Harrisburg, PA 17110
Tel: (717) 238-6570
Fax: (717) 238-4809
Email: rec@cclawpc.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.
AMERICAN AXLE: Says 2009 Full Year Sales Roughly $1.5 Billion
-------------------------------------------------------------
American Axle & Manufacturing Holdings, Inc., disclosed in a
regulatory filing with the Securities and Exchange Commission
AAM's Full Year 2009 update:
-- AAM's full year sales in 2009 were approximately
$1.5 billion.
-- AAM's content-per-vehicle was $1,403 for the full year
2009. AAM's content-per-vehicle is measured by the dollar
value of its product sales supporting GM's North American
light truck and SUV programs and Chrysler's Heavy Duty
Dodge Ram pickup trucks.
-- AAM expects to report a profit in the fourth quarter of
2009.
-- AAM has filed a U.S. tax refund claim under the Worker,
Homeownership, and Business Assistance Act of 2009.
Applicable provisions of the Act allow AAM to carryback
its 2008 net operating loss 5 years (from 2 previously) to
2003. AAM's refund claim related to this special 5-year
carryback election is $48.8 million.
The Company also disclosed AAM's cash and liquidity update:
-- AAM expects to report positive free cash flow for the
fourth quarter of 2009; and
-- As of December 31, 2009, AAM had roughly $481 million of
liquidity, consisting of available cash, short-term
investments and committed borrowing capacity on AAM's U.S.
credit facilities, including the GM Second Lien Term
Credit Facility. This compares to a committed liquidity
position of approximately $370 million at September 30,
2009.
AAM's full year capital spending in 2009 was approximately
$141 million.
AAM expects full year capital spending in 2010 to approximate 4%-
5% of sales.
About American Axle
Headquartered in Detroit, Michigan, American Axle & Manufacturing
Holdings Inc. (NYSE: AXL) -- http://www.aam.com/-- is a world
leader in the manufacture, engineering, design and validation of
driveline and drivetrain systems and related components and
modules, chassis systems and metal-formed products for trucks,
sport utility vehicles, passenger cars and crossover utility
vehicles. In addition to locations in the United States
(Michigan, New York, Ohio and Indiana), AAM also has offices or
facilities in Brazil, China, Germany, India, Japan, Luxembourg,
Mexico, Poland, South Korea, Thailand and the United Kingdom.
* * *
As reported by the Troubled Company Reporter on September 24,
2009, Moody's Investors Service raised Axle's Corporate Family
Rating to Caa3 from Ca, and raised the rating on Axle's secured
guaranteed term loan to B3 from Caa2. Moody's affirmed the
company's Probability of Default Rating at Caa3, and affirmed the
ratings on the unsecured guaranteed notes and the unsecured
convertible notes at Ca. The Speculative Grade Liquidity Rating
is SGL-4. The outlook is changed to stable from negative.
The TCR also said Standard & Poor's Ratings Services revised its
outlook on Axle to developing from negative and affirmed its
'CCC+' corporate credit rating and other ratings.
AMR CORP: To Release Fourth Quarter 2009 Earnings Today
-------------------------------------------------------
In conjunction with the announcement, AMR will host a conference
call with the financial community at 2 p.m. Eastern Time. During
this conference call, senior management of AMR will review, among
other things, details of AMR's fourth quarter financial results,
the industry environment, recent strategic and cost reduction
initiatives, the revenue environment, cash flow results, liquidity
measures and capital requirements, and will provide an outlook for
the future.
A live webcast of this call will be available on the Investor
Relations page of the American Airlines Web site --
http://www.aa.com/ A replay of the webcast will also be available
for several days following the call.
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.
ANAVERDE LLC: Files for Chapter 11 for Sale
-------------------------------------------
Anaverde LLC filed for Chapter 11 bankruptcy on Jan. 15 in
Delaware (Bankr. D. Del. Case No. 10-10113).
According to Bill Rochelle at Bloomberg News, Anaverde LLC was
developing a master-planned community in Palmdale, California,
until discovering that a spur of the San Andreas Fault ran under
the project. It filed for Chapter 11 to sell the property mostly
for the benefit of the secured lender owed $63.9 million.
The lender is Cadim Note Inc.
San Francisco-based Anaverde intends to sell the project as part
of a liquidating Chapter 11 plan. The project, the second phase
of a development, was to have 3,500 lots. The property was
partially graded. No homes were built.
According to the Bloomberg report, the disclosure statement
explaining the Plan says that the lender stands to recover as much
as 16.4%. The buyer will pay $20.25 million in cash and payments
over time, plus 25% of proceeds above $26 million from selling the
land over two years. The lender is carving out $350,000 cash to
be divided among unsecured creditors under the Plan.
Papers filed along with the petition listed the assets for
$25.2 million against debt totaling $65.1 million.
ANAVERDE LLC: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: Anaverde LLC
One Maritime Plaza, Suite 1103
San Francisco, CA 94111
Bankruptcy Case No.: 10-10113
Chapter 11 Petition Date: January 15, 2010
Court: United States Bankruptcy Court
District of Delaware (Delaware)
Judge: Mary F. Walrath
Debtor's Counsel: Kevin Scott Mann, Esq.
Cross & Simon, LLC
913 N. Market Street, 11th Floor
P.O. Box 1380
Wilmington, DE 19899-1380
Tel: (302) 777-4200
Fax: (302) 777-4224
Email: kmann@crosslaw.com
Estimated Assets: $10,000,001 to $50,000,000
Estimated Debts: $50,000,001 to $100,000,000
The petition was signed by Christopher Yelich.
Debtor's List of 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Cadim, Inc. Note $63,907.748
63 Kendrick Street, Value of
Suite One security:
Needham, MA 02494-2708 $13,000,000
Lockton Insurance Brokers, Trade debt $255,582
LLC
aka Bond Safeguard
1919 S Highland Ave.
Suite 300a
Lombard, IL 60148
West Union School District Trade debt $212,969
Los Angeles County Trade debt $198,638
Tax Collector
Summit Envirosolutions, Trade debt $90,594
Inc.
Goodwin Procter Trade debt $75,805
Modular Space Corporation Trade debt $34,996
Griffin Dewatering Trade debt $33,824
Corporation
Lewis Brisbois Bisgaard Trade debt $33,261
& Smith
R.C. Becker & Son, Inc. Trade debt $30,378
SIKAND Engineering Trade debt $24,039
American Heritage Trade debt $19,409
Landscape
RAFS, Inc. Trade debt $9,528
Michelson Environmental Trade debt $6,832
Inc.
Andy Gump, Inc. Trade debt $4,578
Terry Foster Equipment Trade debt $4,280
Rentals
Lucas Austin Alexander Trade debt $3,936
Rutan & Tucker, LLP Trade debt $2,106
SR Consultants West Trade debt $1,358
Pacific Business Capital Trade debt $1,320
Corp.
ARTIO GLOBAL: To Release Q4 and Full Year 2009 Results on Feb. 2
----------------------------------------------------------------
Artio Global Investors Inc. has said preliminary month-end assets
under management were $56.0 billion as of December 31, 2009,
compared to $55.6 billion as of November 30, 2009.
The Company plans to announce its results for the fourth quarter
and full year 2009 on February 2, 2010 in a news release that will
be issued at approximately 7:00 a.m. Eastern Time. The news
release will also be available in the Investor Relations section
of the Company's Web site at http://www.ir.artioglobal.com/
Richard Pell, Chairman, Chief Executive Officer and Chief
Investment Officer, Glen Wisher, President, and Frank Harte, Chief
Financial Officer, plan to host a conference call that day at 8:00
a.m. Eastern Time to discuss these results. The call will be open
to the public and can be accessed by dialing 1 888 680 0860
(callers inside the U.S.) or +1 617 213 4852 (callers outside the
U.S.). The number should be dialed at least ten minutes prior to
the start of the call. The passcode for the call will be
80728240. A simultaneous webcast of the call will also be
available to the public on a listen-only basis on the Company's
website.
To pre-register for the conference call please use the following
link:
https://www.theconferencingservice.com/prereg/key.process?key=PDNL
KPP3P
For those unable to listen to the live broadcast, a replay will be
available by dialing 1 888 286 8010 (callers inside the U.S.) or
+1 617 801 6888 (callers outside the U.S.), passcode 11768646,
beginning approximately two hours after the event for two weeks.
An audio replay of the call will also be available in the Investor
Relations section of the Company's website.
About Artio Global Investors
Artio Global Investors Inc. (NYSE: ART) --
http://www.artioglobal.com/-- is the indirect holding company of
Artio Global Management LLC, a registered investment adviser
headquartered in New York City that actively invests in global
equity and fixed income markets, primarily for institutional and
intermediary clients.
As of September 30, 2009, the Company had $280,402,800 in total
assets against $313,768,000 in total liabilities. The Company as
of September 30, 2009, has retained deficit of $605,984,200; non-
controlling interests of $10,163,400; and total deficit of
$33,365,200.
ARTHUR FEFFERMAN: Case Summary & 10 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Arthur Fefferman
39 Rose Road
Livingston, NJ 07039
Bankruptcy Case No.: 10-11059
Chapter 11 Petition Date: January 15, 2010
Court: United States Bankruptcy Court
District of New Jersey (Newark)
Judge: Morris Stern
Debtor's Counsel: Gerald H. Gline, Esq.
Cole, Schotz, Meisel, Forman & Leonard
25 Main Street
Hackensack, NJ 07601
Tel: (201) 489-3000
Fax: (201) 489-1536
Email: ggline@coleschotz.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $50,000,001 to $100,000,000
According to the schedules, the Company has assets of $3,102,025,
and total debts of $51,076,817.
A full-text copy of Mr. Fefferman's petition, including a list of
his 10 largest unsecured creditors, is available for free at:
http://bankrupt.com/misc/njb10-11059.pdf
The petition was signed by Mr. Fefferman.
ARVINMERITOR INC: Registers 1.2MM Shares Issuable Under 2010 Plan
-----------------------------------------------------------------
ArvinMeritor, Inc., filed with the Securities and Exchange
Commission a Form S-8 registration statement to register 1,200,000
shares of Common Stock, par value $1 per share, and associated
preferred share purchase rights issuable under the ArvinMeritor,
Inc. 2010 Long-Term Incentive Plan.
The proposed maximum aggregate offering price is $13,998,000.
About ArvinMeritor Inc.
Based in Troy, Michigan, ArvinMeritor, Inc. (NYSE: ARM) --
http://www.arvinmeritor.com/-- is a premier global supplier of a
broad range of integrated systems, modules and components to the
motor vehicle industry. The company marks its centennial
anniversary in 2009, celebrating a long history of 'forward
thinking.' The company serves commercial truck, trailer and
specialty original equipment manufacturers and certain
aftermarkets, and light vehicle manufacturers.
As of September 30, 2009, ArvinMeritor had $2.508 billion in total
assets and shareowners' deficit of $1.277 billion. As of
September 30, 2009, short-term debt was $97 million; Accounts
payable was $674 million; Other current liabilities were
$411 million; Liabilities of discontinued operations were
$107 million; Long-term debt was $1.080 billion; Retirement
benefits were $1.077 billion; Other liabilities were $310 million,
and Minority interests were $29 million.
* * *
In December, Fitch Ratings affirmed ArvinMeritor's Issuer Default
Rating at 'CCC'; revised the Company's Senior secured bank
facility rating to 'B+/RR1' from 'B/RR1'; and downgraded the
Company's Senior unsecured notes rating to 'C/RR6' from 'CC/RR5'.
ASHBY ENTERPRISES: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------------
Debtor: Ashby Enterprises (Brandon), Inc.
9239 Adamo Dr.
Tampa, FL 33619
Bankruptcy Case No.: 10-00706
Debtor-affiliates filing separate Chapter 11 petitions:
Entity Case No.
------ --------
A.B.C.C. Enterprise, LLC 10-00705
A.S.K. Contract Flooring, Inc. 10-00708
Flooring Gallery, Inc. 10-00710
Chapter 11 Petition Date: January 14, 2010
Court: United States Bankruptcy Court
Middle District of Florida (Tampa)
Debtor's Counsel: Bernard J. Morse, Esq.
Morse & Gomez PA
11268 Winthrop Main Street, Suite 102
Riverview, FL 33578
Tel: (813) 341-8400
Fax: (813) 463-1807
Email: chipmorse@morsegomez.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/flmb10-00706.pdf
The petition was signed by Rufus Ashby, president of the Company.
ATENOGENES BAEZ: Case Summary & 8 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: Atenogenes Baez
11-44 Welling Court
Astoria, NY 11102
Bankruptcy Case No.: 10-40241
Chapter 11 Petition Date: January 14, 2010
Court: United States Bankruptcy Court
Eastern District of New York (Brooklyn)
Judge: Elizabeth S. Stong
Debtor's Counsel: Richard S. Feinsilver, Esq.
One Old Country Road, Suite 125
Carle Place, NY 11514
Tel: (516) 873-6330
Fax: (516) 873-6183
Email: feinlawny@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 $1,253,100,
and total debts of $1,450,440.
A full-text copy of the Debtor's petition, including a list of its
8 largest unsecured creditors, is available for free at:
http://bankrupt.com/misc/nyeb10-40241.pdf
The petition was signed by Atenogenes Baez.
AURA SYSTEMS: Posts $2.17-Mil. Net Loss in November 30 Quarter
--------------------------------------------------------------
Aura Systems, Inc., and subsidiaries reported a net loss of
$2,173,432 on net revenues of $1,160,577 for the three months
ended November 30, 2009, compared to a net loss of $2,520,759 on
net revenues of $1,065,172 for the three months ended November 30,
2008.
The decrease in net loss for the third quarter of fiscal 2010 was
due to the higher gross profit recorded as a result of higher
sales levels, the reduction in selling, general and administrative
expenses, and the reduction in the third quarter interest charges.
The Company reported a net loss of $13,528,088 on net revenues of
$2,425,383 for the nine months ended November 30, 2009, compared
to a net loss of $7,384,720 on net revenues of $1,891,157 for the
nine months ended November 30, 2008.
Balance Sheet
At November 30, 2009, the Company's consolidated balance sheets
showed $5,402,658 in total assets and total liabilities of
$9,502,148, resulting in a $4,099,490 shareholders' deficit.
The Company's consolidated balance sheets at November 30, 2009,
also showed strained liquidity with $2,493,139 in total current
assets available to pay $9,002,148 in total current liabilities.
A full-text copy of the Company's quarterly report on Form 10-Q is
available for free at http://researcharchives.com/t/s?4d91
Going Concern Doubt
"The accompanying financial statements have been prepared on a
going concern basis which contemplates the realization of assets
and the satisfaction of liabilities in the normal course of
business.
"During the nine month periods ended November 30, 2009, and 2008,
the Company incurred losses of $13,528,088 and $7,384,720,
respectively and had negative cash flows from operating activities
of $5,147,305 and $5,273,043, respectively.
"If the Company is unable to generate profits or continue to
obtain financing for its working capital requirements, it may have
to curtail its business sharply or cease business altogether."
About Aura Systems
Based in El Segundo, California. Aura Systems, Inc. designs,
assemble and sell the AuraGen(R), the Company's patented mobile
power generator that uses the engine of a vehicle to generate
power. The AuraGen(R) delivers on-location, plug-in electricity
for any end use, including industrial, commercial, recreational
and military applications. The Company began commercializing the
AuraGen(R) in late 1999.
El Segundo, Calif.-based Aura Systems, Inc. should not be confused
with Decatur, Illinois-based Aura Systems Inc., which specializes
in the design and system integration of ergonomic and material
handling systems and equipment. The two companies are not
related.
Headquartered in Decatur, Illinois, Aura Systems, Inc. --
http://www.aura-systems.com/-- filed for Chapter 11 protection on
October 6, 2009 (Bankr. C.D. Ill. Case No. 09-72982). Judge Mary
P. Gorman presides over the case. Andrew Bourey, Esq., at Bourey
Law Offices, in Decatur, Illinois, represents the Debtor as
counsel. In its petition, the Debtor listed total assets of
$94,722 and total debts of $1,258,804.
A full-text copy of Decatur, Illinois-based Aura Systems, Inc.'s
petition, including a list of its 20 largest unsecured creditors,
is available for free at:
http://bankrupt.com/misc/ilcb09-72982.pdf
AWESOME ACQUISITION: Restructuring Won't Move Moody's 'B2' Rating
-----------------------------------------------------------------
Moody's Investors Service commented that Awesome Acquisition
Company, LP's current B2 corporate family rating and negative
outlook are not affected by the company's restructuring plan to
focus on franchisee support and guest experience. Moody's views
this restructuring plan as a logical step in reaction to its
persistently pressured top line and worsening same store sales
trend experienced in 2009.
Moody's last rating action for Awesome occurred on March 9, 2009,
when its ratings outlook was changed to negative from stable.
Awesome Acquisition Company, LP, headquartered in Coppell, Texas,
is a holding company with two separate and distinct operations,
CiCi Enterprises and JMC Restaurant Distribution. CiCi's is an
owner, operator and franchisor of CiCi's Pizza, a buffet style,
all you want, restaurant with a pizza centric menu. JMC is the
distribution arm of the company and services CiCi's operation
exclusively. The company's annual sales approximate $190 million.
BARE ESCENTUALS: Moody's Reviews 'Ba3' Corporate Family Rating
--------------------------------------------------------------
Moody's placed all of the ratings of Bare Escentuals, Inc.,
including the company's corporate family rating of Ba3, under
review for possible upgrade following its announcement that it had
signed a definitive agreement with Shiseido Co., Ltd to be
acquired for $1.7 billion through an all-cash tender offer and
second-step merger. The transaction, which has been approved by
the Boards of Directors of both companies remains subject to a
number of conditions including the successful tender offer of the
shares held by a majority of the public shareholders and is
expected to close sometime in the first quarter of 2010.
Moody's review will focus on 1) whether or not amounts currently
outstanding under Bare's existing revolving credit and first lien
term loan remain outstanding after the proposed transaction is
completed and 2) if the debt remains outstanding, whether or not
Shiseido, rated Aa3 (under review for possible downgrade) would
legally assume the obligations.
These ratings of Bare were put under review for possible upgrade:
-- Corporate family rating of Ba3;
-- Probability of default rating of B1;
-- $25 million secured first lien revolving credit of Ba3 due
2011 (LGD 2, 29%)
-- $230 million secured first lien term loan of Ba3 due 2011
(LGD 2, 29%)
The last rating action regarding Bare was on September 3, 2008,
when Moody's upgraded the company's corporate family to Ba3 from
B1.
Bare Escentuals Beauty, Inc., with headquarters in San Francisco,
California is a leading marketer of cosmetics and skin products,
under the Bare Escentuals and MD Formulations brands. Sales for
the last twelve months ended September 30, 2009, were
$540 million.
Shiseido Co., Ltd., rated Aa3 (under review for possible
downgrade) and headquartered in Tokyo, is a leading producer of
cosmetics and hair care products in Japan. The company's
consolidated sales for FYE3/2009 were JPY690.3 billion.
BERNIE'S AUDIO: Updated Chapter 11 Case Summary
-----------------------------------------------
Debtor: Bernie's Audio Video TV Appliance Co., Inc.
1559 King Street
Enfield, CT 06082
Bankruptcy Case No.: 10-20087
Type of Business: Bernie's operates electronic appliance stores.
Chapter 11 Petition Date: January 14, 2010
Court: United States Bankruptcy Court
District of Connecticut (Hartford)
Judge: Chief Judge Albert S. Dabrowski
Debtor's Counsel: Barry S. Feigenbaum, Esq.
Rogin Nassau LLC.
185 Asylum Street, 22nd Floor
Hartford, CT 06103
Tel: (860) 278-7480
Fax: (860) 278-2179
Email: bfeigenbaum@roginlaw.com
Matthew Wax-Krell, Esq.
Rogin Nassau LLC
185 Asylum Street
CityPlace I 22nd Floor
Hartford, CT 06103
Tel: (860) 278-7480
Fax: (860) 278-2179
Email: mwax-krell@roginlaw.com
Estimated Assets: $10,000,001 to $50,000,000
Estimated Debts: $10,000,001 to $50,000,000
The petition was signed by Milton P. Rosenberg, the company's
chief executive officer.
Debtor's List of 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
GE Money Bank Claim on termination $730,767
4246 South Riverboat Road of amended and restated
Suite 200 consumer revolving
Salt Lake City, credit card program
UT 84123-2551 agreement
Toshiba Trade $509,307
82 Totowa Road
Wayne, NJ 07470
Monster Power Trade $298,140
7251 West Lake Mead Blvd
Suite 342
N. Las Vegas, NV 89128
Haier America Trading Trade $250,172
1356 Broadway
New York, NY 10018
Serta Mattress Trade $198,646
Z Line Designs Inc. Trade $193,273
Omni Mount System, Inc. Trade $167,218
The Pointe at South
Mountain
The Hartford Courant Newspaper Advertising $159,334
Electrolux Home Products Trade $123,857
Quebecor World (USA) Inc. Advertising $117,004
Ashley Furniture Trade $79,778
Constellation NewEnergy Eelctricity $69,723
Genn-1
Bose Trade $67,642
The Mountain
Whirlpool Corporation Trade $62,059
Milestone Associates, Real Estate $60,000
Inc. Commission
The Providence Journal Trade $58,951
Company
Techcraft Manufacturing Trade $54,099
Inc.
LG Electronics USA, Inc. Trade $49,093
WFSB Television Advertising $48,661
Lakewood Road Investments Landlord $44,349
LLC
c/o Acre Group, LLC
BKMJ PROPERTIES: Case Summary & 2 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: BKMJ Properties, LLC
1233 Infinity Court
Lincoln, NE 68512
Bankruptcy Case No.: 10-40109
Chapter 11 Petition Date: January 15, 2010
Court: United States Bankruptcy Court
District of Nebraska (Lincoln Office)
Judge: Bankruptcy Judge Timothy J. Mahoney
Debtor's Counsel: David Grant Hicks, Esq.
Pollak & Hicks PC
6910 Pacific St, #216
Omaha, NE 68106
Tel: (402) 345-1717
Email: dhickslaw@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 the Debtor's petition, including a list of its
2 largest unsecured creditors, is available for free at:
http://bankrupt.com/misc/neb10-40109.pdf
The petition was signed by Barry S. Fowler, manager of the
Company.
BLOUNT INT'L: Expects to Report $502MM in Fiscal Year 2009 Sales
----------------------------------------------------------------
Blount International, Inc., estimates that sales for the fiscal
year ended December 31, 2009, will be roughly $502 million and
operating income will range between $54 million and $56 million.
The Company had previously estimated full year sales to range
between $480 million and $490 million and operating income to
range between $57 million and $60 million. The revised operating
income range includes roughly $8.6 million in incremental non-
recurring expenses related to settlement of a certain litigation
matter on December 31, 2009, fees associated with the Company's
December refinancing activities and costs associated with the
transition of the Company's Chief Executive Officer. The Company
had debt outstanding of $286 million and cash on hand of roughly
$55 million as of December 31, 2009.
Blount expects to report full year financial results by March 9,
2010.
Commenting on the revised outlook, Josh Collins, Chief Executive
Officer, stated: "The year finished solidly for the Company, as
we recorded year-over-year sales growth of approximately 6% in the
fourth quarter when several geographical markets continued to
recover from the weakness experienced earlier in 2009. Equally
encouraging is the Company's continued ability to generate cash,
as evidenced by a $24 million reduction in debt achieved during
the fourth quarter."
The Company also disclosed that its wholly owned subsidiary
Blount, Inc., and certain of its affiliates, and Fisher-Barton
Blades, Inc., located in Watertown, Wisconsin, have agreed to
settle all claims made in Fisher Barton Blades, Inc. v. Blount,
Inc., Dixon Industries and Frederick Manufacturing Corp., Case No.
05-C-460, in the United States District Court for the Eastern
District of Wisconsin.
Blount Inc. for itself and as successor by merger to Frederick
Manufacturing Corp. and Blount's subsidiary 4520 Corp., Inc., as
successor by merger to Dixon Industries, Inc., have agreed to
license U.S. Patent No.s 5,916,114 and 5,899,052, owned by Fisher-
Barton, as well as Fisher-Barton's "Marbain" trademark. A
Confidential Settlement and License Agreement was executed on
December 31, 2009, and the Federal District Judge Randa entered an
Order Granting Voluntary Dismissal of all claims with prejudice on
January 5, 2010.
The terms of the Agreement remain confidential; however, Blount
did state that the Agreement calls for an initial payment, which
was made on January 4, 2010, and the entry into the patent and
trademark licenses whereby Blount has certain rights to use the
patents and trademark in exchange for the payment of specified
royalties over the term of the license.
Extension of Credit Facility
On December 7, 2009, Blount said it has amended and restated its
senior credit facility. The primary terms amended include an
extension of the maturity from August 2010 until February 2012 for
the majority of amounts available under the facility, a reduction
in the borrowing capacity of the revolving credit facility from
$90 million to $60 million and an increase in interest rates
applicable to 96% of the $107.5 million of term loans outstanding.
Approximately $4 million of the existing term loans outstanding
will retain an August 2010 maturity date. At the time of the
amendment and restatement, the Company had approximately
$48 million in borrowing capacity available under the $60 million
revolving credit facility and $58 million of cash on hand.
General Electric Capital Corporation acted as the Administrative
Agent in the amendment and restatement of the senior credit
facility.
About Blount International
Based in Portland, Oregon, Blount International, Inc. [NYSE:
"BLT"] -- http://www.blount.com/-- is a diversified international
company whose principal business is its Outdoor Products segment,
the world's largest manufacturer of saw chain and related
accessories with manufacturing plants in the United States,
Canada, Brazil and China. Blount sells its products in more than
100 countries around the world.
At September 30, 2009, the Company had $487,849,000 in total
assets against $510,003,000 in total liabilities, resulting in
$22,154,000 in stockholders' deficit.
BOB STEVENS: Case Summary & 3 Largest Unsecured Creditors
---------------------------------------------------------
Debtor: Bob Stevens Appliances and T.V. Inc.
381-9 Old Riverhead Road
Westhampton Beach, NY 11978
Bankruptcy Case No.: 10-70278
Chapter 11 Petition Date: January 14, 2010
Court: United States Bankruptcy Court
Eastern District of New York (Central Islip)
Judge: Robert E. Grossman
Debtor's Counsel: Ronald D. Weiss, Esq.
734 Walt Whitman Road, Suite 203
Melville, NY 11747
Tel: (631) 271-3737
Fax: (631) 271-3784
Email: weiss@ny-bankruptcy.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $100,001 to $500,000
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/nyeb10-70278.pdf
The petition was signed by Bob Stevens, president of the Company.
BROADWAY 401: DIP Financing, Cash Collateral Use Gets Interim Nod
------------------------------------------------------------------
Broadway 401 LLC, et al., sought and obtained interim
authorization from the Hon. Kevin J. Carey of the U.S. Bankruptcy
Court for the District of Delaware to incur postpetition secured
obligations from a syndicate of lenders led by PB Capital
Corporation, as lender and as senior agent for the lenders, and
use cash collateral.
The DIP lenders have committed to provide up to an aggregate
principal amount of $500,000 on an interim basis, and up to an
aggregate principal amount of $1,308,055 on a final basis.
Neil B. Glassman, Esq., and Jamie L. Edmonson, Esq., at Bayard
P.A., the attorneys for the Debtors, explain the Debtors need the
money to fund their Chapter 11 case, pay suppliers and other
parties. The Debtors will also use the Cash Collateral to provide
additional liquidity. The Debtors will use the collateral
pursuant to a budget, a copy of which is available for free at:
http://bankrupt.com/misc/BROADWAY_budget.pdf
The initial approved budget may be modified or supplemented from
time to time by additional budgets as required by the amended
senior loan agreement
The Debtors will grant replacement liens on all DIP collateral
subject and junior only to the post-petition liens, and grant
security interests, liens, and superpriority claims and priming
liens in favor of the Senior Agent and the Senior Lenders, to
secure the postpetition obligations.
Interest, fees, and costs and expenses due on or after the
Petition Date to Senior Agent and/or Senior Lenders under the DIP
loan documents will be charged to the Debtors as required by the
applicable DIP loan documents and the Court's interim order.
A copy of the summary of DIP financing terms is available for free
at http://ResearchArchives.com/t/s?4d99
The amended senior loan agreement, and Senior Agent's and each
Senior Lender's willingness to permit the use of cash collateral
and to make DIP loans on February 25, 2010, if the Court hasn't
entered the Final Order, and on March 16, 2010, if the Court
hasn't approved the disclosure statement and confirmed the
reorganization plan.
The DIP collateral lien is subject to a carveout for U.S. Trustee
and Clerk of Court fees; up to $20,000 in fees payable to
professional employed in the Debtors' case and professionals
employed by the creditors' committee.
The Court has set a final hearing for February 16, 2010, at
4:00 p.m. on the Debtors' request to obtain DIP financing and use
cash collateral.
Kaye Scholer LLC represents the Senior Agent.
About Broadway 401
New York-based Broadway 401 LLC, along with Broadway Mass
Associates LLC, and Broadway Mass TIC I LLC, is owned by Lazar
Muller, Samuel Weiss, Charles Herzka, David Weldler and the 1997
Neumann Family Trust. The Debtors acquired the property located
at 401 Massachusetts Ave. and 425 Massachusetts Ave. between
December 2004 and January 2006 for more than $47 million. Since
that time, they've improved the properties with two 14-story
residential towers containing 559 residential condominiums. The
towers are known as "The Dumont" and are reportedly "vacant but
essentially . . . complete and ready for occupancy."
Broadway 401 filed for Chapter 11 bankruptcy protection on
January 11, 2010 (Bankr. D. Delaware Case No. 10-10070). The
Company's affiliates -- Broadway Mass Associates LLC; Broadway
Mass TIC I LLC, et al. -- filed separate Chapter 11 petitions.
Jamie Lynne Edmonson, Esq., at Bayard PA, assists the Debtors in
their restructuring efforts.
Broadway 401 listed $100,000,001 to $500,000,000 in assets and
$100,000,001 to $500,000,000 in liabilities.
BROADWAY 401: Files Schedules of Assets & Liabilities
-----------------------------------------------------
Broadway 401 LLC has filed with the U.S. Bankruptcy Court for the
District of Delaware its schedules of assets and liabilities,
disclosing:
Name of Schedule Assets Liabilities
---------------- ------ -----------
A. Real Property $108,000,000 $213,606,725
to $157,000,000 (plus an
unrecorded mortgage
in the amount of
$37,514,136
in aggregate)
B. Personal Property $486,180
C. Property Claimed as
Exempt
D. Creditors Holding
Secured Claims $213,606,725
E. Creditors Holding
Unsecured Priority
Claims
F. Creditors Holding
Unsecured Non-priority
Claims $39,284,703
------------- -----------
TOTAL $108,486,180 $252,891,427
to $157,486,180
New York-based Broadway 401 LLC, along with Broadway Mass
Associates LLC, and Broadway Mass TIC I LLC, is owned by Lazar
Muller, Samuel Weiss, Charles Herzka, David Weldler and the 1997
Neumann Family Trust. The Debtors acquired the property located
at 401 Massachusetts Ave. and 425 Massachusetts Ave. between
December 2004 and January 2006 for more than $47 million. Since
that time, they've improved the properties with two 14-story
residential towers containing 559 residential condominiums. The
towers are known as "The Dumont" and are reportedly "vacant but
essentially . . . complete and ready for occupancy."
Broadway 401 filed for Chapter 11 bankruptcy protection on
January 11, 2010 (Bankr. D. Delaware Case No. 10-10070). The
Company's affiliates -- Broadway Mass Associates LLC; Broadway
Mass TIC I LLC, et al. -- filed separate Chapter 11 petitions.
Jamie Lynne Edmonson, Esq., at Bayard PA, assists the Debtors in
their restructuring efforts.
Broadway 401 listed $100,000,001 to $500,000,000 in assets and
$100,000,001 to $500,000,000 in liabilities.
BROADWAY 401: Taps Lovells as Bankruptcy Counsel
------------------------------------------------
Broadway 401 LLC, et al., have sought authorization from the U.S.
Bankruptcy Court for the District of Delaware to employ Lovells
LLP as bankruptcy counsel, nunc pro tunc to the Petition Date.
Lovells will, among other things:
a. assist the Debtors in reviewing and consummating any
transactions contemplated during the Chapter 11 cases;
b. assist the Debtors in reviewing, estimating, and resolving
claims asserted against their estates;
c. subject to certain agreements with the Senior Lenders and
Mezzanine Lenders, commence and conduct any and all
litigation necessary or appropriate to assert rights held
by the Debtors or to defend the Debtors, protect assets of
their estates, or otherwise further the goal of completing
a successful reorganization; and
d. advise and assist the Debtors in connection with the
confirmation of a plan of reorganization and related
documents, and the wind-up and disposition of any
remaining assets and of the Debtor entities.
Lovells will be paid based on the hourly rates of its personnel:
Partners $640 to $1,000
Counsel $615 to $645
Associates $300 to $575
Senior Attorneys $300-$575
Legal Assistants $220-$275
Robin E. Keller, a member of Lovells, assures the Court that the
firm is "disinterested" as that term is defined in Section 101(14)
of the Bankruptcy Code.
New York-based Broadway 401 LLC, along with Broadway Mass
Associates LLC, and Broadway Mass TIC I LLC, is owned by Lazar
Muller, Samuel Weiss, Charles Herzka, David Weldler and the 1997
Neumann Family Trust. The Debtors acquired the property located
at 401 Massachusetts Ave. and 425 Massachusetts Ave. between
December 2004 and January 2006 for more than $47 million. Since
that time, they've improved the properties with two 14-story
residential towers containing 559 residential condominiums. The
towers are known as "The Dumont" and are reportedly "vacant but
essentially . . . complete and ready for occupancy."
Broadway 401 filed for Chapter 11 bankruptcy protection on
January 11, 2010 (Bankr. D. Delaware Case No. 10-10070). The
Company's affiliates -- Broadway Mass Associates LLC; Broadway
Mass TIC I LLC, et al. -- filed separate Chapter 11 petitions.
Jamie Lynne Edmonson, Esq., at Bayard PA, assists the Debtors in
their restructuring efforts.
Broadway 401 listed $100,000,001 to $500,000,000 in assets and
$100,000,001 to $500,000,000 in liabilities.
BROADWAY 401: Wants to Hire Bayard P.A. as Delaware Counsel
-----------------------------------------------------------
Broadway 401 LLC, et al., have sought permission from the U.S.
Bankruptcy Court for the District of Delaware to employ Bayard,
P.A., as Delaware counsel, nunc pro tunc to the Petition Date.
Bayard will, among other things:
a. pursue confirmation of a plan and approval of a disclosure
statement;
b. prepare necessary motions, applications, answers, orders,
reports, and other legal papers in connection with the
administration of the Debtors' estates;
c. appear in Court and to protect the interests of the
Debtors before the Court; and
d. assist with any disposition of the Debtors' assets, by
sale or otherwise.
Bayard will be paid based on the hourly rates of its personnel:
Directors $425-$795
Senior Counsel $400-$510
Associates $230-$425
Paraprofessionals $195-$245
Neil B. Glassman, a director of Bayard, assures the Court that the
firm is "disinterested" as that term is defined in Section 101(14)
of the Bankruptcy Code.
New York-based Broadway 401 LLC, along with Broadway Mass
Associates LLC, and Broadway Mass TIC I LLC, is owned by Lazar
Muller, Samuel Weiss, Charles Herzka, David Weldler and the 1997
Neumann Family Trust. The Debtors acquired the property located
at 401 Massachusetts Ave. and 425 Massachusetts Ave. between
December 2004 and January 2006 for more than $47 million. Since
that time, they've improved the properties with two 14-story
residential towers containing 559 residential condominiums. The
towers are known as "The Dumont" and are reportedly "vacant but
essentially . . . complete and ready for occupancy."
Broadway 401 filed for Chapter 11 bankruptcy protection on
January 11, 2010 (Bankr. D. Delaware Case No. 10-10070). The
Company's affiliates -- Broadway Mass Associates LLC; Broadway
Mass TIC I LLC, et al. -- filed separate Chapter 11 petitions.
Jamie Lynne Edmonson, Esq., at Bayard PA, assists the Debtors in
their restructuring efforts.
Broadway 401 listed $100,000,001 to $500,000,000 in assets and
$100,000,001 to $500,000,000 in liabilities.
BRUNDAGE-BONE: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: Brundage-Bone Concrete Pumping, Inc.
ods JLS Concrete Pumping, Inc.
ods Beton Equipco, Inc.
ods Beton Insurance Company, Inc.
ods Brundage-Bone Concrete Pumping, LTD
6461 Downing St
Denver, CO 80229-7225
Bankruptcy Case No.: 10-10758
Debtor-affiliate filing separate Chapter 11 petition:
Entity Case No.
------ --------
JLS Concrete Pumping, Inc. 10-10760
fka JLS Acquisition Corp.
Chapter 11 Petition Date: January 18, 2010
Court: United States Bankruptcy Court
District of Colorado (Denver)
Judge: A. Bruce Campbell
About the Business: JLS Concrete Pumping has been providing
superior service at competitive pricing to our
clients for over 20 years. JLS Concrete
Pumping services California and Nevada from
its corporate headquarters in Ventura and from
satellite yards in Bakersfield, Fresno,
Gardena, Lancaster, Las Vegas, Moorpark, Palm
Springs, Riverside, San Diego, San Luis
Obispo, Santa Clarita, Temecula, Thousand
Oaks, and Ventura. JLS has pumped concrete
for some of the largest projects in
California.
Debtors' Counsel: David Wadsworth, Esq.
1660 Lincoln St., Ste. 2200
Denver, CO 80264
Tel: (303) 296-1999
Fax: (303) 296-7600
Email: dvw@sendwass.com
Harvey Sender, Esq.
1660 Lincoln St., Ste. 2200
Denver, CO 80264
Tel: (303) 296-1999
Fax: (303) 296-7600
Email: Sendertrustee@sendwass.com
Estimated Assets: $100,000,001 to $500,000,000
Estimated Debts: $100,000,001 to $500,000,000
According to the schedules, the Company has assets of
$325,708,061, and total debts of $230,277,103.
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/cob10-10758.pdf
A. Brundage-Bone Concrete Pumping, Inc.'s List of 20 Largest
Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
GE Commercial Finance Bank loan $8,662,525
aka GE Capital Solutions Collateral:
519 Virginia Dr $1,500,000
Fort Washington, PA 19034 Unsecured:
$7,162,525
Commerce Bank Leasing, Bank loan $2,321,717
Inc. Collateral:
8000 Forsyth Blvd $0
Saint Louis, MO 63105-1797 Unsecured:
$2,321,717
Key Bank National Bank loan $23,903,962
Association Collateral:
1675 Broadway Ste 200 $22,016,920
Denver, CO 80202-4629 Unsecured:
$1,887,041
Wells Fargo Bank Bank loan $1,177,500
MAC P6101-142 Collateral:
1300 SW 5th Ave 14th Fl $1,000,000
Portland, OR 97201-5667 Unsecured:
$1,177,500
Wells Fargo Bank Bank loan $7,802,733
MAC P6101-142 Collateral:
1300 SW 5th Ave 14th Fl $34,256,317
Portland, OR 97201-5667 Unsecured:
$1,019,030
PNC Equipment Finance Bank loan $4,662,727
Two PNC Plaza, 13th Floor Collateral:
620 Liberty Ave $8,487,468
Pittsburgh, PA 15222-2722 Unsecured:
$685,230
People's Capital and Bank loan $3,824,977
Leasing Corp. Collateral:
255 Bank St. $3,533,599
Waterbury, CT 06702-2219 Unsecured:
$291,378
Key Equipment Finance, Bank loan $5,287,088
Inc. Collateral:
1000 S. McCaslin Blvd $9,718,316
Superior, CO 80027-9456 Unsecured:
$164,839
Putzmeister, Inc. Trade debt $95,151
Wells Fargo Bank Bank loan $1,589,240
1300 SW 5th Ave 14th Fl Collateral:
Portland, OR 97201-5667 $1,500,000
Unsecured:
$89,240
Wells Fargo Bank Bank loan $1,044,000
MAC P6101-142 Collateral:
1300 SW 5th Ave 14th Fl $1,000,000
Portland, OR 97201-5667 Unsecured:
$44,000
Fireman's Fund Insurance $40,450
Sun Coast Resources, Inc. $26,552
Lone Star Bank Bank loan $1,024,112
2700 Bee Caves Rd Ste 100 Collateral:
Austin, TX 78746-5678 $1,000,000
Unsecured:
$24,112
Michelin North America $24,460
Littlefield Oil Co. $18,771
Construction Forms Bank loan $14,859
General Motors Acceptance Bank loan $14,124
Corp. Collateral:
$0
Unsecured:
$14,124
Construction Forms $14,002
SOPUS Products
B. JLS Concrete Pumping, Inc.'s List of 20 Largest Unsecured
Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Brundage-Bone Concrete $284,900
Pumping, Inc.
6461 Downing Street
Denver, CO 80229
Int'l Union of Operating $148,633
Engineers
Putzmeister, Inc. $76,200
First Insurance Funding $51,700
Corp.
Putzmeister America $27,062
Attn: Dave Adams
GP Resources, Inc. $24,593
(Pacific Pride)
Hilltop Group, Inc. $14,090
Operating Engineers $10,189
Local Union No. 3
Tor Truck Corporation $9,226
Los Angeles County Tax $9,212
Collector
Norman Spencer McKernan $9,063
Schwing America, Inc. Trade debt $8,889
Liberty Mutual Insurance $8,767
Company
Robert V. Jensen, Inc. $7,532
DMV Renewel $6,749
Brundage-Bone Concrete $6,374
Pumping, Inc.
M/S 95
Michelin $3,759
SV Holding $3,480
Santa Clarita Mobile
Advantage Telecom $3,237
Sopus Products $2,527
The petition was signed by Bruce F. Young, president/CEO of the
Company.
CABLEVISION SYSTEMS: Inks Registration Rights Deal with Dolan
-------------------------------------------------------------
Cablevision Systems Corporation on January 13, 2010, entered into
a registration rights agreement -- Dolan Registration Rights
Agreement -- with Charles F. Dolan, the Chairman of Cablevision,
and all other holders of Cablevision NY Group Class B Common Stock
(other than the Charles F. Dolan Children Trusts), the Dolan
Children's Foundation and the Dolan Family Foundation.
Cablevision will provide the parties to the Dolan Registration
Rights Agreement -- and, in certain cases, transferees and
pledgees of shares of Cablevision NY Group Class B Common Stock
owned by these parties -- with certain demand and piggyback
registration rights with respect to their shares of Cablevision NY
Group Class A Common Stock -- including those issued upon
conversion of shares of Cablevision NY Group Class B Common Stock.
The Dolan Parties own roughly 32.5 million shares of Cablevision
NY Group Class B Common Stock, which represent 59.8% of the
outstanding Cablevision NY Group Class B Common Stock as well as
3.4 million shares of Cablevision NY Group Class A Common Stock,
which represent 1.4% of the outstanding Cablevision NY Group Class
A Common Stock. The shares of Cablevision NY Group Class B Common
Stock and Cablevision NY Group Class A Common Stock, collectively,
represent 11.9% of Cablevision's outstanding common stock and
41.5% of the aggregate voting power of Cablevision's outstanding
common stock.
The Charles F. Dolan Children Trusts and Cablevision also entered
into a registration rights agreement on January 13. Cablevision
will provide the Children Trusts -- and, in certain cases,
transferees and pledgees of shares of Cablevision NY Group Class B
Common Stock owned by these parties -- with certain demand and
piggy-back registration rights with respect to their shares of
Cablevision NY Group Class A Common Stock -- including those
issued upon conversion of shares of Cablevision NY Group Class B
Common Stock. The Children Trusts own 21.9 million shares of
Cablevision NY Group Class B Common Stock, which represent 40.2%
of the outstanding Cablevision NY Group Class B Common Stock, as
well as 1.1 million shares of Cablevision NY Group Class A Common
Stock, which represent 0.4% of the outstanding Cablevision NY
Group Class A Common Stock. The shares of Cablevision NY Group
Class B Common Stock and Cablevision NY Group Class A Common
Stock, collectively, represent 7.6% of Cablevision's common stock
and 27.8% of the aggregate voting power of Cablevision's
outstanding common stock.
In the Children Trusts Registration Rights Agreement, each
Children Trust will agree that in the case of any sale or
disposition of its shares of Cablevision's NY Group Class B Common
Stock -- other than to Charles F. Dolan or other Dolan family
interests -- by such Children Trust, or of any of the Children
Trust Shares by any other Dolan family interest to which such
shares of Cablevision NY Group Class B Common Stock are
transferred, such stock will be converted to Cablevision NY Group
Class A Common Stock. The Dolan Registration Rights Agreement
does not include a comparable conversion obligation, and the
conversion obligation in the Children Trusts Registration Rights
Agreement does not apply to the Dolan Shares.
About Cablevision Systems
Headquartered in Bethpage, New York, Cablevision Systems Corp. is
predominantly a domestic cable TV multiple system operator serving
approximately 3.1 million subscribers in and around the New York
metropolitan area. Among other entertainment-and media-related
business ventures, the company also owns and distributes
programming to cable television and direct broadcast satellite
providers throughout the United States through its Rainbow
National Services subsidiary.
As of September 30, 2009, the Company had $10,127,998,000 in total
assets against $15,321,360,000 in total liabilities and
$11,371,000 in redeemable noncontrolling interests. The Company
as of September 30, 2009, had non-controlling interest of $24,000
and total deficiency of $5,204,733,000.
* * *
As reported by the Troubled Company Reporter on Oct. 15, 2009,
Standard & Poor's said it lowered its issue-level rating on
Cablevision Systems Corp. (BB/Negative/--) subsidiary Newsday
LLC's $650 million senior secured credit facility due 2013, which
consists of a $525 million fixed-rate term loan and a $125 million
floating-rate term loan. S&P is lowering the issue-level rating
on the loan to 'BB' from 'BB+' and removed it from CreditWatch,
where it was placed with negative implications on Feb. 9, 2009.
S&P also revised the recovery rating on the loan to '3' from '2'.
A '3' recovery rating indicates that lenders can expect meaningful
(50%-70%) recovery in the event of payment default.
The TCR reported on Sept. 11, 2009, Standard & Poor's affirmed the
'BB' corporate credit rating of Cablevision. Cablevision has
around $11.8 billion of debt reported outstanding at June 30,
2009. The outlook is negative.
Cablevision carries "Ba2" Corporate Family and Probability of
Default Ratings from Moody's.
CABLEVISION SYSTEMS: Board Approves Distribution of MSG Shares
--------------------------------------------------------------
The Board of Directors of Cablevision Systems Corp. on January 12,
2010, approved the distribution of all of the common stock of
Madison Square Garden, Inc., a company which owns the sports,
entertainment and media businesses previously owned and operated
by the MSG segment of Cablevision, to the stockholders of
Cablevision. The Distribution will take the form of a
distribution by Cablevision of one share of MSG Class A Common
Stock for every four shares of Cablevision NY Group Class A Common
Stock held of record at the close of business in New York City on
January 25, 2010, and one share of MSG Class B Common Stock for
every four shares of Cablevision NY Group Class B Common Stock
held of record on the Record Date. The Distribution will become
effective and the new shares will be distributed on February 9,
2010.
On January 12, 2010, the Board of Directors of CSC Holdings, LLC
authorized the distribution to Cablevision, its sole member, of
all of the common stock of MSG. The transaction will take place
prior to the Distribution by Cablevision.
As reported by the Troubled Company Reporter in December, James L.
Dolan will be the Executive Chairman of MSG and will devote a
portion of his business time to that role. He will retain his
position as Cablevision's President and Chief Executive Officer
and will devote most of his business time to that role.
Hank J. Ratner will be the President and Chief Executive Officer
of MSG. It is expected that he will devote a majority of his time
to that role but will also retain his position as Cablevision's
Vice Chairman and will devote a portion of his time to that role.
These Cablevision directors will also become directors of MSG in
connection with the Distribution: Charles F. Dolan, James L.
Dolan, Thomas C. Dolan, Deborah A. Dolan-Sweeney, Marianne Dolan
Weber, Brad Dorsogna, Brian G. Sweeney and Vincent Tese.
Following the Distribution, MSG will be a public company and
Cablevision will have no continuing common stock ownership
interest in MSG.
About Cablevision Systems
Headquartered in Bethpage, New York, Cablevision Systems Corp. is
predominantly a domestic cable TV multiple system operator serving
approximately 3.1 million subscribers in and around the New York
metropolitan area. Among other entertainment-and media-related
business ventures, the company also owns and distributes
programming to cable television and direct broadcast satellite
providers throughout the United States through its Rainbow
National Services subsidiary.
As of September 30, 2009, the Company had $10,127,998,000 in total
assets against $15,321,360,000 in total liabilities and
$11,371,000 in redeemable noncontrolling interests. The Company
as of September 30, 2009, had non-controlling interest of $24,000
and total deficiency of $5,204,733,000.
* * *
As reported by the Troubled Company Reporter on Oct. 15, 2009,
Standard & Poor's said it lowered its issue-level rating on
Cablevision Systems Corp. (BB/Negative/--) subsidiary Newsday
LLC's $650 million senior secured credit facility due 2013, which
consists of a $525 million fixed-rate term loan and a $125 million
floating-rate term loan. S&P is lowering the issue-level rating
on the loan to 'BB' from 'BB+' and removed it from CreditWatch,
where it was placed with negative implications on Feb. 9, 2009.
S&P also revised the recovery rating on the loan to '3' from '2'.
A '3' recovery rating indicates that lenders can expect meaningful
(50%-70%) recovery in the event of payment default.
The TCR reported on Sept. 11, 2009, Standard & Poor's affirmed the
'BB' corporate credit rating of Cablevision. Cablevision has
around $11.8 billion of debt reported outstanding at June 30,
2009. The outlook is negative.
Cablevision carries "Ba2" Corporate Family and Probability of
Default Ratings from Moody's.
CACI INTERNATIONAL: Moody's Gives Pos. Outlook, Keeps 'Ba2' Rating
------------------------------------------------------------------
Moody's Investors Service has changed the rating outlook of CACI
International, Inc., to positive from stable and upgraded the
senior secured bank debt rating to Baa3 from Ba1. The Ba2
corporate family and probability of default, and the SGL-1
speculative grade liquidity ratings have been affirmed.
The outlook change reflects CACI's growing scale, sustained
moderate leverage, good cash flow and likelihood that demand from
the U.S. Department of Defense, particularly the Army, should
remain strong through 2011. Since FY2005 CACI has spent
approximately $700 million on acquisitions as the company has
become a more entrenched supplier of information management and
systems engineering/support services to the U.S. Government. The
company's enlarged scale and proven performance during the
Iraq/Afghanistan conflicts have deepened its position as a solid,
prime DoD contractor and have helped improve credit profile
resilience. The positive outlook also notes that CACI's new focus
on expanding its federal health and energy business lines may
enable greater revenue diversity in the future. Greater revenue
diversity could help CACI to avoid a gradual growth decline that
may impact heavily defense-focused contractors in coming years.
The outlook acknowledges CACI's acquisition spending, which has
been low over the past 18 months, will likely resume. Continued
strong free cash flow generation to supplement acquisition debt
may still help the company achieve the greater size and return
levels needed to support a higher rating.
The Ba2 corporate family rating reflects strong metrics for the
rating category that coincide with the defense sector's current
demand peak. However, since FY2005 margins have steadily
declined. Therefore, even though internal cash flow generation
partially funded acquisition spending, total return gains have not
accompanied greater scale. As well, the U.S. government's fiscal
budget forecasts declining defense spending growth rates beginning
in FY2011. In Moody's view, as combat-related demand ebbs from
high levels, federal fiscal deficits and renewed focus on
procurement practices and conflicts of interest could represent
new margin challenges for DoD contractors such as CACI. These
factors support the continued Ba2 corporate family rating despite
relatively strong credit metrics.
The rating on CACI's senior secured debt has been upgraded to Baa3
from Ba1 due to lower senior secured debt in the capital structure
following a recent $50 million term loan prepayment, and pursuant
to Moody's Loss Given Default Methodology.
Potential for upward rating momentum will depend on an expectation
that revenues could grow to the $4 billion level with EBITDA
margin above 10%, a good liquidity profile, and maximum leverage,
including acquisitions, in the low 3.0 times range (Moody's
adjusted basis). Downward rating momentum, not currently
anticipated, could develop if margins continue to decline with
leverage exceeding the 4.0 times level; if the company's ability
to convert its earnings to cash flow materially weakens or; if
return on assets declines below 2.0%.
The speculative grade liquidity rating of SGL-1 continues to
reflect a strong liquidity profile. Liquidity profile strength
stems from a high cash balance and internal cash flow level
relative to near term debt service and other required spending
needs. Ample financial covenant compliance headroom under the
company's senior secured credit facility exists which suggests
high probability of continued access to CACI's undrawn $240
million revolver. Moody's notes that in May 2011 the revolver and
the $280 million term loan mature which could bring downward
pressure on the SGL-1 rating. The SGL-1 rating affirmation
assumes that the term loan will not become a near-term liability
without a growing cash balance or a larger, multi-year source of
committed liquidity.
Ratings upgraded:
* $240 million senior secured revolver due May 2011 to Baa3 LGD 2,
21% from Ba1 LGD 2, 23%
* $280 million senior secured term loan B due May 2011 to Baa3 LGD
2, 21% from Ba1 LGD 2, 23%
Ratings affirmed:
* Corporate family and probability of default Ba2
* Speculative grade liquidity SGL-1
Moody's last rating action on CACI occurred May 2007 when the Ba2
corporate family rating was affirmed.
CACI International Inc, based in Arlington, VA, provides
information technology services and solutions for the U.S.
Department of Defense, federal civilian agencies, the government
of the United Kingdom as well as large commercial enterprises and
state and local governments. Last twelve months ended September
2009 revenues were $2.8 billion.
CANWEST GLOBAL: Frank King Resigns From Board of Directors
----------------------------------------------------------
Canwest Global Communications Corp announced that Mr. Frank King
has tendered his resignation from the Company's Board of Directors
effective immediately. Mr. King has resigned in order to pursue a
number of other business commitments, community service and time
owed to his family after years of public and corporate service.
Mr. King, 73, joined the board in November 2004 to assist Canwest
in the oversight of its newspaper and broadcasting businesses.
While serving as a director, Mr. King was a member of Canwest's
Human Resources Committee and Chair of the Company's Governance
and Nominating Committee.
"I would like to thank Frank King for over five years of dedicated
service to Canwest, its Board of Directors and its shareholders,"
said Canwest's Chair, Derek Burney.
Leonard Asper, Canwest's President and CEO, said Mr. King embodied
the Company's values through his dedication to public and
corporate service and through his willingness to put the needs of
Canwest ahead of his own.
"Canwest benefited from many years of Frank's wise counsel and
considerable financial and business experience," Mr. Asper said.
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: Grafstein et al. Plan to Bid for 3 Daily Papers
---------------------------------------------------------------
Jerry Grafstein, a retired senator in Canada, told Bloomberg News
in an interview that his team plans to bid for the National Post,
Montreal Gazette and Ottawa Citizen, three daily newspapers owned
by Canwest Global Communications Corp.
Bloomberg's Doug Alexander says Mr. Grafstein's investor group
includes Quebec editor Beryl Wajsman and media consultant Raymond
Heard.
Ontario Superior Court Judge Sarah Pepall has approved a sale
process for Canwest's publications. Bloomberg notes the court-
appointed monitor overseeing the sale will only consider bids for
all or "substantially all" of the assets.
"If the courts say no, the courts say no," Mr. Grafstein told
Bloomberg. "But the courts will be looking at everything and see
what's valuable and what's not."
Mr. Grafstein told Bloomberg his group is preparing an application
to review Canwest's finances, the first step in making a bid. Mr.
Grafstein said they have "very strong financial support." Mr.
Grafstein, however, declined to name the investors.
"I believe that there's a future for newspapers if they have
strong roots in each of their communities and they're locally
owned and controlled and they can marry it with the Internet," Mr.
Grafstein, 75, who retired from the Senate this month, told
Bloomberg.
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).
CATHOLIC CHURCH: Associated Press Intervenes in Delaware Case
-------------------------------------------------------------
On October 19, 2009, James E. Sheehan filed a request for relief
from the automatic stay to allow his abuse action filed in January
2008 to continue to trial and judgment. Subsequently, he and the
Catholic Diocese of Wilmington, Inc., entered into a compromise
and settlement agreement with respect to his action. The Diocese
also sought and obtained authority to file Mr. Sheehan's
settlement amount under seal.
By this motion, The Associated Press seeks authority from the U.S.
Bankruptcy Court for the District of Delaware to intervene in the
bankruptcy case to obtain access to judicial records and
proceedings. AP also asks the Court to vacate the order sealing
Mr. Sheehan's settlement amount.
Jeffrey M. Schlerf, Esq., at Fox Rothschild LLP, in Wilmington,
Delaware, contends that a "court may properly consider a motion to
intervene permissively for the limited purpose of modifying a
protective order," citing Pansy v. Stroudsburg, 23 F.3d 772, 779
(3d Cir. 1994). He asserts that the public's right to access
judicial records is well-established. He adds that in bankruptcy
jurisprudence, a Chapter 11 reorganization proceeding is an open
book and all records filed in that proceeding are generally
accessible to the public.
Mr. Schlerf argues that the settlement amount is not confidential
commercial information because it is not an information "that is
so critical to an entity's operations that disclosing the
information will unfairly benefit that entity's competitors." He
points out that the Seal Order should be vacated and the
Settlement Amount disclosed because the Settlement Amount in the
hands of the Diocese's competitors will not result in injury to
the Diocese's commercial operations.
* * *
Judge Sontchi allowed AP to intervene in the bankruptcy case for
the purpose of accessing judicial records and proceedings. He
also vacated the order sealing the Sheehan Settlement Amount, and
directed the Diocese to file a notice setting forth that amount.
Hence, the Diocese revealed in a notice that the Settlement Amount
is $17,500.
About the Diocese of Wilmington
The Diocese of Wilmington covers Delaware and the Eastern Shore of
Maryland and serves about 230,000 Catholics. The Delaware diocese
is the seventh Roman Catholic diocese to file for Chapter 11
protection to deal with lawsuits for sexual abuse. Previous
filings were by the dioceses in Spokane, Washington; Portland,
Oregon; Tucson, Arizona; Davenport, Iowa, Fairbanks, Alaska; and
San Diego, California.
The bankruptcy filing automatically stayed eight consecutive abuse
trials scheduled in Delaware scheduled to begin October 19. There
are 131 cases filed against the Diocese, with 30 scheduled for
trial.
The Diocese filed for Chapter 11 on Oct. 18, 2009 (Bankr. D. Del.
Case No. 09-13560). Attorneys at Young Conaway Stargatt & Taylor,
LLP, serve as counsel to the Diocese. The Ramaekers Group, LLC is
the financial advisor. The petition says assets range $50,000,001
to $100,000,000 while debts are between $100,000,001 to
$500,000,000. (Catholic Church Bankruptcy News; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000).
CATHOLIC CHURCH: Wil. Committee Gets OK for Pachulski as Counsel
----------------------------------------------------------------
The Official Committee of Unsecured Creditors of the Catholic
Diocese of Wilmington, Inc., sought and obtained authority from
the U.S. Bankruptcy Court for the District of Delaware to retain
Pachulski Stang Ziehl & Jones LLP as its counsel, nunc pro tunc to
November 4, 2009.
Prior to the Petition Date, an unofficial committee of abuse
survivors, comprised of certain abuse survivors, was formed in
connection with CDOW's restructuring efforts. Pachulski Stang
represented the Unofficial Committee, and James E. Sheehan, an
individual abuse survivor, in connection with his request for
relief from the automatic stay against the Diocese.
On November 4, 2009, the Office of the United States Trustee
appointed the Creditors Committee. The Unofficial Committee has
disbanded, and Pachulski Stang from resigned its representation of
Mr. Sheehan. Pachulski Stang has also represented creditors
committees of other bankrupt Catholic Churches, and the Society of
Jesus, Oregon Province.
As Committee counsel, Pachulski Stang will:
(a) assist, advise and represent the Creditors Committee in
its consultations with the Diocese regarding the
administration of the bankruptcy case;
(b) assist, advise and represent the Creditors Committee in
analyzing the Diocese's assets and liabilities,
investigating the extent and validity of liens, and
participate in and review any proposed asset sales, any
asset dispositions, financing arrangements and cash
collateral stipulations or proceedings;
(c) review and analyze all applications, motions, orders,
statements of operations and schedules filed with the
Court by the Diocese or third parties, advise the
Creditors Committee as to their propriety, and, after
consultation with the Creditors Committee, take
appropriate action;
(d) prepare necessary applications, motions, answers, orders,
reports and other legal papers on behalf of the Creditors
Committee;
(e) represent the Creditors Committee at hearings and
communicate with the Committee regarding the issues
raised, as well as the decisions of the Court;
(f) perform all other legal services for the Creditors
Committee, which may be necessary and proper in the
proceeding;
(g) represent the Creditors Committee in connection with any
litigation, disputes or other matters that may arise in
connection with the case;
(h) assist, advise and represent the Creditors Committee in
any manner relevant to reviewing and determining the
Diocese's rights and obligations under leases and other
executory contracts;
(i) assist, advise and represent the Creditors Committee in
investigating the acts, conduct, assets, liabilities and
financial condition of the Diocese, its operations and the
desirability of the continuance of any portion of those
operations, and any other matters relevant to the case or
to the formulation of a plan of reorganization;
(j) assist, advise and represent the Creditors Committee in
its participation in the negotiation, formulation and
drafting of a plan of liquidation or reorganization;
(k) advise the Creditors Committee on the issues concerning
the appointment of a trustee or examiner under Section
1104 of the Bankruptcy Code;
(l) assist, advise and represent the Creditors Committee in
understanding its powers and its duties under the
Bankruptcy Code and the Bankruptcy Rules, and in
performing other services as are in the interests of those
represented by the Committee; and
(m) assist, advise and represent the Creditors Committee in
the evaluation of claims and on any litigation matters,
including avoidance actions.
Pachulski Stang will be paid based on its current standard hourly
rates, and will be reimbursed for actual, necessary expenses:
Laura Davis Jones $825
James I. Stang $825
Hamid R. Rafatjoo $595
Curtis A. Hehn $495
Mark Billion $375
Patricia Cuniff $215
James I. Stang, Esq., a partner at Pachulski Stang, assures the
Court that his firm is a "disinterested person," within the
meaning of Section 101(14) of the Bankruptcy Code.
* * *
The Court approved the application. Judge Sontchi directed
Pachulski Stang to make a good faith effort to identify separately
in its fee applications any services performed from and after the
entry of the approval order, which relate to the enforcement of
alleged restrictions on the use or disposition of property that
the Diocese contends is held in trust or otherwise unavailable to
satisfy the claims of general unsecured creditors under applicable
law, and that those services will be placed in billing categories
labeled AA-Nondebtor or AA-Restricted.
About the Diocese of Wilmington
The Diocese of Wilmington covers Delaware and the Eastern Shore of
Maryland and serves about 230,000 Catholics. The Delaware diocese
is the seventh Roman Catholic diocese to file for Chapter 11
protection to deal with lawsuits for sexual abuse. Previous
filings were by the dioceses in Spokane, Washington; Portland,
Oregon; Tucson, Arizona; Davenport, Iowa, Fairbanks, Alaska; and
San Diego, California.
The bankruptcy filing automatically stayed eight consecutive abuse
trials scheduled in Delaware scheduled to begin October 19. There
are 131 cases filed against the Diocese, with 30 scheduled for
trial.
The Diocese filed for Chapter 11 on Oct. 18, 2009 (Bankr. D. Del.
Case No. 09-13560). Attorneys at Young Conaway Stargatt & Taylor,
LLP, serve as counsel to the Diocese. The Ramaekers Group, LLC is
the financial advisor. The petition says assets range $50,000,001
to $100,000,000 while debts are between $100,000,001 to
$500,000,000. (Catholic Church Bankruptcy News; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000).
CATHOLIC CHURCH: Wilmington Committee Has LECG as Advisor
---------------------------------------------------------
The Official Committee of Unsecured Creditors of the Catholic
Diocese of Wilmington, Inc., sought and obtained authority from
the U.S. Bankruptcy Court for the District of Delaware to retain
LECG, LLC, as its financial advisor, nunc pro tunc to November 9,
2009.
As financial advisor, LECG will:
(a) assist the Creditors Committee in the review of financial
related disclosures required by the Court and Bankruptcy
Code, including the Schedules of Assets and Liabilities,
the Statement of Financial Affairs, and Monthly Operating
Reports;
(b) analyze the Diocese's accounting reports and financial
statements to assess the reasonableness of the Diocese's
financial disclosures;
(c) assist the Creditors Committee in the evaluation of the
Diocese's organizational structure, including its
relationship with the Parishes and other non-debtor
organizations and charities;
(d) assist the Creditors Committee in evaluating the Diocese's
cash management system, including the Diocese's pooled
investor account;
(e) assist the Creditors Committee in evaluating the Diocese's
ownership interests of property alleged to be held in
trust by the Diocese for the benefit of third parties and
property alleged to be owned by non-debtor juridic
entities;
(f) assist the Creditors Committee in analyzing the Diocese's
assets and liabilities, and participate in and review any
proposed asset sales, and any other any asset
dispositions;
(g) assist the Creditors Committee in the review of financial
information distributed by the Diocese to creditors and
others, including cash flow projections and budgets, cash
receipts and disbursement analysis, analysis of various
asset and liability accounts, and analysis of proposed
transactions for which Court approval is sought;
(h) attend at meetings and assist in discussions with the
Diocese, the Creditors Committee, the U.S. Trustee, and
other parties-in-interest and professionals hired by those
parties as requested;
(i) assist in the review and preparation of information and
analysis necessary for the confirmation of a plan, or for
the objection to any plan filed in the case, which the
Creditors Committee opposes;
(j) assist the Creditors Committee in investigating the
assets, liabilities and financial condition of the
Diocese, the Diocese's operations and the desirability of
the continuance of any portion of those operations;
(k) provide forensic accounting and investigations with
respect to transfers of the Diocese's assets;
(l) assist the Creditors Committee with the evaluation and
analysis of claims and on any litigation matters,
including avoidance actions for fraudulent conveyances and
preferential transfers, and actions concerning the
property of the Diocese's estate; and
(m) assist the Creditors Committee with respect to any
adversary proceedings that may be filed in the case.
LECG will be paid based on its standard hourly billing rates:
Directors $575 - $725
Managing Consultants $340 - $420
Consultants $295 - $325
Associates $215 - $245
Paraprofessionals $125 - $160
LECG will also be reimbursed for its actual, necessary expenses
and other charges incurred in connection with its retention.
Fernanda Schmid, LECG's associate general counsel, assures the
Court that LECG is a "disinterested person," within the meaning of
Section 101(14) of the Bankruptcy Code.
About the Diocese of Wilmington
The Diocese of Wilmington covers Delaware and the Eastern Shore of
Maryland and serves about 230,000 Catholics. The Delaware diocese
is the seventh Roman Catholic diocese to file for Chapter 11
protection to deal with lawsuits for sexual abuse. Previous
filings were by the dioceses in Spokane, Washington; Portland,
Oregon; Tucson, Arizona; Davenport, Iowa, Fairbanks, Alaska; and
San Diego, California.
The bankruptcy filing automatically stayed eight consecutive abuse
trials scheduled in Delaware scheduled to begin October 19. There
are 131 cases filed against the Diocese, with 30 scheduled for
trial.
The Diocese filed for Chapter 11 on October 18, 2009 (Bankr. D.
Del. Case No. 09-13560). Attorneys at Young Conaway Stargatt &
Taylor, LLP, serve as counsel to the Diocese. The Ramaekers
Group, LLC, is the financial advisor. The petition says assets
range $50,000,001 to $100,000,000 while debts are between
$100,000,001 to $500,000,000. (Catholic Church Bankruptcy News;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
CENTRAL METAL: Asks for Court's Permission to Use Cash Collateral
-----------------------------------------------------------------
Central Metal, Inc., seeks authority from the U.S. Bankruptcy
Court for the Central District of California to use the cash
collateral from January 16, 2010, until February 27, 2010,
securing their obligation to their prepetition lenders.
As of the Petition Date, the Debtor owes Center Bank $16.3 million
and KEB LA Financial Corp. $900,000.
Monica Y. Kim and Juliet Y. Oh at Levene, Neale, Bender, Rankin &
Brill L.L.P., the attorneys for the Debtor, explains that the
Debtor needs the money to fund its Chapter 11 case, purchase
additional scrap metal to replenish sold inventory, and to pay
suppliers and other parties. The Debtors will use the collateral
pursuant to a budget, a copy of which is available for free at:
http://bankrupt.com/misc/CENTRAL_METAL_budget.pdf
The Debtor is asking that it be permitted to use cash collateral
in accordance with the Budget, subject to a permitted deviance of
up to 10% of the total expenses for any week, with any unused
portions to be carried over into the following week.
In exchange for using the cash collateral, the Debtor proposes to
grant secured creditors replacement liens against the Debtor's
assets, with the replacement lien to have the same extent,
validity, and priority as the pre-petition lien held by the
creditors. The Debtor says that the existing personal guaranty by
Jong Uk Byun provides further adequate protection. The real
property upon which the Debtor runs its facilities is either owned
by the Debtor or by the Debtor's principal, Jong Uk Byun.
Huntington Park, California-based Central Metal, Inc., is a fully
integrated scrap metal processing company that purchases,
processes and sells ferrous and non-ferrous metals domestically
and internationally. The Company is one of the largest processing
companies on the West Coast, has one of the largest land sites and
processing capacities, and is fully diversified in its business
portfolio that entails dynamic trading relationships with renowned
metal manufacturers around the world.
The Company filed for Chapter 11 bankruptcy protection on
January 8, 2010 (Bankr. C.D. Calif. Case No. 10-10642). Juliet Y.
Oh, Esq., who has an office in Los Angeles, California, 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.
CHARTER COMMUNICATIONS: Unions Find Holes in Reorganization Plan
----------------------------------------------------------------
Reorganized Charter Communications Inc. filed a motion before the
Bankruptcy Court to enforce the reorganization plan which contains
provisions giving releases to officers and directors.
Charter wants the Bankruptcy Court to enter an order enforcing the
injunction in the Confirmed Plan of Reorganization against
commencing or continuing any causes of action against the Iron
Workers Local No. 25 Pension Fund, Indiana Laborers Fund, and Iron
Workers District Council of Western New York and Vicinity Pension
Fund, as court-appointed Lead Plaintiffs in the action styled Iron
Workers Local No. 25 Pension Fund v. Allen, et al., Case No. 4:09-
cv-00405-JLH (E.D. Ark.).
The three union pension funds believe they have the right to sue
officers and directors of Charter Communications. The pension
plans contend the Plan, which became effective November, doesn't
apply to them because they sold their stock before the plan was
confirmed.
Charter counters that the unions' suggestion to reopen that
they are not "interest" holders, merely because they sold their
stock after Charter entered chapter 11 proceedings but before the
"record date," is absurd. Under that approach, a party seeking to
circumvent a proposed release could simply dispose of its security
interests prior to a plan's effective date, Charter pointed out.
Charter's motion is scheduled for hearing on Jan. 26.
The class-action plaintiffs are represented by Coughlin Stoia
Geller Rudman & Robbins LLP.
About Charter Communications
Based in St. Louis, Missouri, Charter Communications, Inc. (Pink
OTC: CHTRQ) -- http://www.charter.com/-- is a broadband
communications company and the fourth-largest cable operator in
the United States. Charter provides a full range of advanced
broadband services, including advanced Charter Digital Cable(R)
video entertainment programming, Charter High-Speed(R) Internet
access, and Charter Telephone(R). Charter Business(TM) similarly
provides scalable, tailored, and cost-effective broadband
communications solutions to business organizations, such as
business-to-business Internet access, data networking, video and
music entertainment services, and business telephone. Charter's
advertising sales and production services are sold under the
Charter Media(R) brand.
Charter Communications and more than a hundred affiliates filed
voluntary Chapter 11 petitions on March 27, 2009 (Bankr. S.D.N.Y.
Case No. 09-11435). As of March 31, 2009, the Debtors had total
assets of $13,650,000,000, and total liabilities of
$24,501,000,000. Pacific Microwave filed for bankruptcy April 20,
2009, disclosing assets of not more than $50,000 and debts of more
than $1 billion.
The Hon. James M. Peck presides over the cases. Richard M. Cieri,
Esq., Paul M. Basta, Esq., and Stephen E. Hessler, Esq., at
Kirkland & Ellis LLP, in New York, serve as counsel to the
Debtors, excluding Charter Investment Inc. Albert Togut, Esq., at
Togut, Segal & Segal LLP in New York, serves as Charter
Investment, Inc.'s bankruptcy counsel. Curtis, Mallet-Prevost,
Colt & Mosel LLP, in New York, is the Debtors' conflicts counsel.
Ernst & Young LLP is the Debtors' tax advisors. KPMG LLP is the
Debtors' independent auditor. The Debtors' valuation consultants
are Duff & Phelps LLC; the Debtors' financial advisors are Lazard
Freres & Co. LLC; and the Debtors' restructuring consultants are
AlixPartners LLC. The Debtors' regulatory counsel is Davis Wright
Tremaine LLP, and Friend Hudak & Harris LLP. The Debtors' claims
agent is Kurtzman Carson Consultants LLC.
Judge James M. Peck of the U.S. Bankruptcy Court for the Southern
District of New York approved the Debtors' pre-arranged joint plan
of reorganization in a bench ruling on Oct. 15, 2009.
On Nov. 30, 2009, Charter Communications, Inc., announced that it
has successfully completed its financial restructuring, which
significantly improves the Company's capital structure by reducing
debt by approximately 40 percent, or approximately $8 billion.
Charter Communications, Inc., has emerged from Chapter 11 under
its pre-arranged Joint Plan of Reorganization, which was confirmed
by the United States Bankruptcy Court for the Southern District of
New York on Nov. 17, 2009.
CHEMTURA CORP: Wins Nod to Auction Off PVC Additives February 22
----------------------------------------------------------------
Chemtura Corp. obtained approval from the Bankruptcy Court to
auction the global PVC additives business on Feb. 22.
Chemtura related in late December 2009 that it has entered into a
definitive agreement with SK Capital Partners, a New York-based
private equity firm focusing on the specialty materials, chemicals
and healthcare industries, whereby SK Capital has agreed to
acquire Chemtura's global PVC Additives business. The sale will
include certain assets, the stock of a European subsidiary and the
assumption of certain liabilities. The PVC Additives business had
revenues of $374 million in the calendar year of 2008 and $177
million for the nine months ended Sept. 30, 2009.
The Debtors delivered to the Court a copy of a Share and Asset
Purchase Agreement among Chemtura and SK Atlas LLC, and SK Capital
Partners II LP, a full-text copy of which is available for free at
http://bankrupt.com/misc/ChemSKPurAg.pdf
The Purchase Agreement essentially governs the sale of Chemtura
Corporation's ownership interests in all of the issued and
outstanding capital stock of Chemtura Vinyl Additives GmbH, a
non-Debtor company organized in accordance with the laws of the
Federal Republic of Germany, and certain assets relating to the
design, manufacture, assembly, marketing, sale and distribution
of tin and mixed metal stabilizers, organic-based stabilizers,
epoxidized soybean oil, liquid phosphate esters, chemical foaming
agents and impact modifiers, and related intermediates as engaged
in by Chemtura at its Taft, Louisiana facility and by Chemtura
Vinyl.
Pursuant to the Purchase Agreement, the consideration for the
Assets and the Shares to be sold consists of:
(1) $2,056,000 in initial cash;
(2) a "Trade Accounts Payable Adjustment Payment," totaling
$7,156,610;
(3) a "European Trade Accounts Payable Adjustment Payment,"
which is an amount equal to the outstanding European Trade
Accounts Payable that are not past due;
(4) a "Shared Accounts Payable Adjustment Payment," totaling
$200,000;
(5) an "Accrued Payroll and Benefits Adjustment Payment,"
which is an amount equal to the outstanding payroll and
benefits to be paid to the employees at the Taft Facility;
and
(6) the Purchaser's assumption of certain liabilities.
The sale to SK Capital is subject to higher and better offers at
the February 22 auction. Competing bids are due Feb. 16. The
hearing for approval of the sale will be Feb. 23.
About Chemtura Corp.
Based in Middlebury, Connecticut, Chemtura Corporation (CEM) --
http://www.chemtura.com/-- with 2008 sales of $3.5 billion, is a
global manufacturer and marketer of specialty chemicals, crop
protection products, and pool, spa and home care products.
Chemtura Corporation and 26 of its U.S. affiliates filed voluntary
petitions for relief under Chapter 11 on March 18, 2009 (Bankr.
S.D.N.Y. Case No. 09-11233). M. Natasha Labovitz, Esq., at
Kirkland & Ellis LLP, in New York, serves as bankruptcy counsel.
Wolfblock LLP serves as the Debtors' special counsel. The
Debtors' auditors and accountant are KPMG LLP; their investment
bankers are Lazard Freres & Co.; their strategic communications
advisors are Joele Frank, Wilkinson Brimmer Katcher; their
business advisors are Alvarez & Marsal LLC and Ray Dombrowski
serves as their chief restructuring officer; and their claims and
noticing agent is Kurtzman Carson Consultants LLC.
As of December 31, 2008, the Debtors had total assets of
$3.06 billion and total debts of $1.02 billion.
Bankruptcy Creditors' Service, Inc., publishes Chemtura
Bankruptcy News. The newsletter tracks the Chapter 11
proceedings undertaken by Chemtura Corp. and its affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
CHI SOUTHWEST: Updated Chapter 11 Case Summary
----------------------------------------------
Debtor: CHI Southwest, LLC
fka CHI, LLC
fka CHI Management, LLC
3131 Turtle Creek Blvd., Suite 810
Dallas, TX 75219
Bankruptcy Case No.: 10-30383
Debtor-affiliates filing separate Chapter 11 petitions:
Entity Case No.
------ --------
CHI Austin, LLC 10-30380
CHI Central, LLC 10-30381
CHI Management, LLC 10-30392
Chapter 11 Petition Date: January 15, 2010
Court: United States Bankruptcy Court
Northern District of Texas (Dallas)
Judge: Stacey G. Jernigan
Debtor's Counsel: Rakhee V. Patel, Esq.
Pronske & Patel, P.C.
2200 Ross Avenue, Suite 5350
Dallas, TX 75201
Tel: (214) 658-6500
Fax: (214) 658-6509
Email: rpatel@pronskepatel.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/txnb10-30383.pdf
The petition was signed by Dennis L. Wells, president of the
company.
CHENIERE ENERGY: Board Approves 2% Base Salary Increase for Execs
-----------------------------------------------------------------
Cheniere Energy, Inc., said the Compensation Committee of the
Company's Board of Directors approved a base salary increase of 2%
for executive officers of the Company effective January 4, 2010.
In addition, the Compensation Committee approved a bonus payment
for executive officers of the Company with respect to the year
ended December 31, 2009, payable in cash and shares of common
stock of the Company.
The 2010 annual base salary and the 2009 Bonus Amount for the
Company's executive officers are:
2009 Bonus Amount
2010 Annual -----------------
Executive Officer Base Salary Cash Shares
----------------- ----------- ---- ------
Charif Souki $734,400 $1,080,000 190,000
Chairman, CEO and
President
Meg A. Gentle $278,280 $245,540 77,000
SVP and CFO
Jean Abiteboul $334,998 $299,030 100,000
SVP - International
R. Keith Teague $278,280 $245,540 77,000
SVP - Asset Group
H. Davis Thames $278,280 $245,540 135,000
SVP - Marketing
Mr. Abiteboul's base salary is EUR233,725. The amount reported in
the table represents the U.S. dollar equivalent based on the
December 31, 2009 exchange rate of $1.4333 to EUR 1.
Houston, Texas-based Cheniere Energy, Inc. (NYSE Amex: LNG) --
http://www.cheniere.com/-- is developing a network of three LNG
receiving terminals and related natural gas pipelines along the
Gulf Coast of the United States. Cheniere is pursuing related
business opportunities both upstream and downstream of the
terminals. Cheniere is also the founder and holds a 30% limited
partner interest in a fourth LNG receiving terminal.
As of September 30, 2009, Cheniere had total assets of
$2,789,045,000 against total current liabilities of $116,244,000;
long-term debt, net of discount of $2,684,279,000; long-term debt-
related parties, net of discount of $344,697,000; deferred revenue
of $34,500,000; and other non-current liabilities of $16,930,000.
As of September 30, 2009, the Company had accumulated deficit of
$962,045,000, non-controlling interest of $224,334,000 and total
deficit of $407,605,000.
CHOICE HOTELS: Gets Remaining 60% Stake in India Hotel Chain
------------------------------------------------------------
Choice Hotels International, Inc., has agreed to acquire the
remaining 60% ownership interest in Choice Hospitality (India)
Ltd. Choice Hospitality India serves as the master partner and
franchisor of Choice's hotel brands in India, and after the
completion of the transaction, the entity will be operated as a
wholly owned subsidiary.
"We plan to focus extensive development resources on growing our
presence in India, which now stands at 28 hotels," said Stephen P.
Joyce, the company's president and chief executive officer.
"India is an extremely important key market for our global growth
and we're looking forward to the great development potential that
it holds for our brands and our hotels."
Choice Hospitality India is part of Choice Hotels International,
one of the largest and most widespread lodging franchisors of the
world with over 6000 hotels across the globe. Choice Hospitality
India is one of the fastest and finest growing hotel chains with
28 properties in over 21 destinations in India and another 14
properties under different stages of development. These hotels
are in various destinations including New Delhi, Mumbai, Chennai,
Ahmedabad, Bangalore, Gurgaon, Hyderabad, Jaipur, Kodaikanal,
Lucknow, Faridabad, Amritsar, Shimla, Manali, Corbett, Pune,
Nashik, Haldwani, Chiplun, Tuticorin and Vijayawad. Its presence
in all the gateway cities proves that the chain is widely accepted
by business as well as leisure travelers who recognize and trust
the brand.
About Choice Hotels
Silver Spring, Maryland-based Choice Hotels International, Inc.
(NYSE: CHH) -- http://www.choicehotels.com/-- franchises more
than 6,000 hotels, representing more than 485,000 rooms in the
United States and more than 35 other countries and territories. As
of September 30, 2009, more than 700 hotels are under
construction, awaiting conversion or approved for development in
the United States, representing more than 59,000 rooms, and more
than 100 hotels, representing approximately 9,400 rooms, are under
construction, awaiting conversion or approved for development in
more than 20 other countries and territories. The company's
Comfort Inn, Comfort Suites, Quality, Sleep Inn, Clarion, Cambria
Suites, MainStay Suites, Suburban Extended Stay Hotel, Econo Lodge
and Rodeway Inn brands serve guests worldwide. In addition, via
its Ascend Collection membership program, travelers in the United
States, Canada and the Caribbean have upscale lodging options at
historic, boutique and unique hotels.
As of September 30, 2009, the Company had total assets of
$353,028,000 against total liabilities of $485,938,000, resulting
in stockholders' deficit of $132,910,000. The September 30
balance sheet also showed strained liquidity: The Company had
total current assets of $135,813,000 against total current
liabilities of $149,231,000.
CINCINNATI BELL: Inks Deal with NICE Systems and AnswerOn
---------------------------------------------------------
Cincinnati Bell has selected the joint NICE-AnswerOn Customer
Churn Reduction business solution which integrates NICE
Interaction Analytics and transactional data analytics from
AnswerOn. The end-to-end solution enables Cincinnati Bell to
create more accurate churn prediction models by integrating
multidimensional analysis results into their churn reduction
models.
The solution cross-references customer interaction and
transactional data and alerts customer retention personnel in near
real-time. It helps Cincinnati Bell build highly personalized
offers for at-risk customers, deliver the offers in a proactive
and timely manner, and perform on-going measurement and monitoring
for fine-tuning of churn models and retention offerings
effectiveness.
NICE Systems Ltd. (NASDAQ: NICE) provides advanced solutions that
enable enterprises and security organizations to extract Insight
from Interactions, transactions and surveillance to drive business
performance, reduce risk and ensure safety.
AnswerOn Inc. provides customer retention, acquisition and loyalty
solutions to telecommunications service providers.
On November 18, 2009, Cincinnati Bell announced that it had
entered into a definitive agreement with American Tower
Corporation to sell 196 wireless communication towers and related
equipment to American Tower for $100 million in cash, subject to
certain closing adjustments. The transaction closed December 23,
2009, at a final purchase price of $99.9 million. Cincinnati Bell
will remain a tenant on all 196 towers under a long-term lease
agreement.
About Cincinnati Bell
Headquartered in Cincinnati, Ohio, Cincinnati Bell Inc. (NYSE:
CBB) -- http://www.cincinnatibell.com/-- provides integrated
communications solutions-including local, long distance, data,
Internet, and wireless services. In addition, the Company
provides office communications systems as well as complex
information technology solutions including data center and managed
services. Cincinnati Bell conducts its operations through three
business segments: Wireline, Wireless, and Technology Solutions.
As of Sept. 30, 2009, the Company had $2.01 billion in total
assets against $2.62 billion in total liabilities, resulting in
$614.0 million in stockholders' deficit.
Cincinnati Bell carries Fitch's 'B+' Issuer Default Rating.
CITIGROUP INC: Reports $1.6 Billion Full Year 2009 Net Loss
-----------------------------------------------------------
Citigroup Inc. on Tuesday reported a full year 2009 net loss of
$1.6 billion, or $0.80 per share. Managed revenues were $91.1
billion for the year. The fourth quarter 2009 net loss was $7.6
billion, or $0.33 per share. Excluding the $6.2 billion after-tax
loss associated with TARP repayment and exiting the loss-sharing
agreement, the fourth quarter net loss was $1.4 billion or $0.06
per share.
Citigroup reported a net loss of $27.6 billion for the full year
2008.
The provision for loan losses in the fourth quarter was $8.2
billion, down 36% from the prior year and 10% from the prior
quarter.
"We have made enormous progress in 2009," said Vikram Pandit,
Chief Executive Officer of Citigroup. "It was our responsibility
to get our own house in order. We greatly improved Citi's capital
strength, reduced the size and scope of the company, and refocused
our business strategy to take advantage of our unmatched global
network. We created Citi Holdings to rationalize non-strategic
businesses, totally overhauled risk management, cut costs by over
$13 billion annually, reduced headcount by 100,000, and reduced
assets by $500 billion from peak levels. And to take advantage of
all these changes, we assembled a talented new management team
focused on the new Citicorp franchise to move us forward.
"We also completed the repayment of $20 billion invested in the
company by the U.S. government through the Troubled Asset Relief
Program (TARP) and exited the loss-sharing agreement with the
government," said Mr. Pandit. "As we enter 2010, we are strongly
capitalized, significantly more efficient, and are executing on a
clear strategy that is focused on clients. With the commitment
and dedication of our people, we have created a strong foundation
for the future."
Mr. Pandit concluded: "In the near term, we will continue to focus
on sustainable profitability and growth, and supporting the global
economic recovery. I believe we are positioned for long-term
success, and have a strategy that combines our international
footprint, global talent and unique capabilities to serve our
clients and customers here and around the world. We serve nearly
every Fortune 500 company and 85% of the top global companies,
enabling liquidity and capital flows by providing the financial
infrastructure that facilitates these companies' international
operations. Citi is one of the great franchises in financial
services, and with our renewed financial strength and strategy, we
can now completely focus on executing this strategy."
Commenting on Citi's financial results, John Gerspach, Chief
Financial Officer of Citigroup, said: "We have made significant
progress in 2009. While the environment continues to be
challenging, we have a strong capital base and client franchise.
Although we remain cautious and continue to monitor the future
impacts of our current loss mitigation efforts, we continue to see
indications that credit may be stabilizing or improving,
particularly in Asia and Latin America."
Key Highlights
-- Citigroup 2009 managed revenues increased 49% to
$91.1 billion, up from $61.2 billion in 2008 reflecting,
in part, the absence of significant marks taken in 2008.
-- Full year operating expenses declined 31% to
$47.8 billion. Excluding goodwill impairments and
restructuring/repositioning charges recorded in 2008,
operating expenses were down 15%.
-- Fourth quarter managed revenues were $7.9 billion, or
$17.9 billion excluding a $10.1 billion pre-tax loss
associated with the TARP repayment and exiting the loss
-sharing agreement, down from $23.1 billion in the third
quarter, which included a $1.4 billion pre-tax gain from
the extinguishment of debt associated with the exchange
offers.
-- Fourth quarter net credit losses of $7.1 billion were down
$800 million from the prior quarter, marking the second
consecutive quarter of improvement. Managed net credit
losses were $10.0 billion, down from $11.0 billion in the
prior quarter.
-- Fourth quarter net loan loss reserve build was $700
million. For the year, the company added a net build of
$8.0 billion to the allowance for loan losses. The
allowance for loan losses was $36.0 billion at year-end,
or 6.1% of total loans.
-- Citicorp full year revenues outside the North America
region were $41 billion, 68% of total Citicorp revenues.
-- Citi Holdings assets declined $70 billion to $547 billion
during the quarter and were down $351 billion from peak
levels in the first quarter of 2008.
-- Citi completed 14 divestitures in Citi Holdings in 2009,
including Smith Barney, Nikko Cordial Securities and Nikko
Asset Management.
-- Regional Consumer Banking (RCB) deposits grew $31 billion
or 12% in 2009. Full year managed revenues declined 6% to
$29 billion, reflecting an 11% decline in average assets
versus 2008. This revenue decline was more than offset by
expense declines of 12% (excluding a fourth quarter 2008
goodwill impairment). High credit costs continued to
affect financial results.
-- RCB full year revenues outside the North America region
were $15.5 billion, 68% of total RCB revenues.
-- Securities and Banking (S&B) 2009 revenues were $29.4
billion, excluding credit value adjustments (CVA), up 23%
versus 2008. Fourth quarter revenues (excluding CVA) were
$5.4 billion, down from $6.6 billion in the third quarter,
and up from $5.1 billion in the fourth quarter of 2008.
-- Transaction Services 2009 net income was $3.7 billion, up
12% versus 2008 on revenues of $9.8 billion.
-- Firmwide deposits were $836 billion, up $62 billion from
the prior year and $3 billion from the prior quarter.
Citigroup fourth quarter revenues were $5.4 billion, or $15.5
billion excluding the loss on the repayment of TARP and exiting
the loss-sharing agreement, down from $20.4 billion in the prior
quarter which included a $1.4 billion gain from the extinguishment
of debt associated with the exchange offers.
Citicorp fourth quarter revenues were $11.7 billion, down from
$13.0 billion in the prior quarter. Managed revenues were $13.4
billion, down from $14.8 billion in the prior quarter. Excluding
the impact of CVA in each quarter, managed revenues were down
approximately 7% sequentially, due primarily to declines in S&B
revenues.
Citi Holdings fourth quarter revenues were $4.7 billion versus
$6.7 billion in the prior quarter. Managed revenues were $5.5
billion during the quarter, down from $7.6 billion in the prior
quarter. Key drivers of the decline included lower positive net
revenue marks within the Special Asset Pool (SAP) of $200 million
versus $1.5 billion in the prior quarter (see Appendix A), as well
as the prior quarter's $300 million pre-tax gain on the sale of
Citigroup's Managed Futures business, and lower net interest
revenue within Local Consumer Lending. SAP asset sales of
approximately $10 billion resulted in $800 million of pre-tax
gains during the quarter.
During 2009, Citi provided $458 billion in new credit in the U.S.
Since the start of the U.S. housing crisis in 2007, Citi has
worked with more than 715,000 homeowners to help them avoid
potential foreclosure. Citi completed 130,000 mortgage loan
modifications during 2009. In addition, Citi established more
than 119,000 trial modifications during the year under the Home
Affordable Modification Program or its own proprietary
modification program. Citi is also currently helping more than
1.5 million credit card members to manage their card debt through
a variety of forbearance programs. The company has remained
committed to long-standing programs that provide small and mid-
sized companies access to credit to grow their businesses. Citi
has provided over $4.5 billion of new (and renewed) credit to
small and mid-sized businesses in 2009.
Net Income
Citigroup's net loss was $7.6 billion in the fourth quarter versus
$100 million of net income in the third quarter. Excluding the
impact of the TARP repayment and exiting the loss-sharing
agreement in the fourth quarter and the gain on debt
extinguishment associated with the exchange offers in the third
quarter, net income was lower by $600 million sequentially. The
impact of the TARP repayment, exiting of the loss-sharing
agreement and the gain on debt extinguishment were recorded in the
Corporate/Other segment.
Citicorp fourth quarter net income was $1.7 billion, down from
$2.3 billion from the prior quarter, as declines in S&B revenues
and higher operating expenses were partially offset by sequential
declines in credit costs across businesses. Income growth in Asia
and Latin America was offset by declines in North America and
EMEA.
Citi Holdings fourth quarter net loss was $2.5 billion versus a
loss of $1.9 billion in the prior quarter as a sequential decline
in credit costs was more than offset by a reduction in positive
revenue marks, lower net interest revenue and the absence of the
$200 million after-tax gain on the sale of Citigroup's Managed
Futures business in the quarter.
Corporate/Other fourth quarter revenues were negative $11.0
billion down from positive $700 million in the prior quarter, due
to the $10.1 billion pre-tax loss on the TARP repayment and
exiting the loss-sharing agreement, and the prior quarter's $1.4
billion pre-tax gain from the extinguishment of debt associated
with the exchange offers.
Balance Sheet
As of December 31, 2009, total assets were $1.85 trillion, down 2%
from the third quarter reflecting business dispositions and asset
sales within Citi Holdings. During the quarter approximately $46
billion of cash and deposits with banks were redeployed into
liquid securities held in the available-for-sale portfolio. Total
liabilities were $1.70 trillion.
A full-text copy of Citigroup's earnings release is available at
no charge at http://ResearchArchives.com/t/s?4da2
A full-text copy of Citi's Quarterly Financial Data Supplement is
available at no charge at http://ResearchArchives.com/t/s?4da3
Bonus Payments
The New York Times says Citigroup plans to hand out large bonus
checks in the coming weeks. The NY Times notes Bank employees, on
average, took home about $94,000 in bonus pay last year, slightly
less than the $96,000 average in 2008. NY Times says top
investment bankers and traders, however, could receive bonuses
worth at least several million dollars. Over all, the bank paid a
total of $25 billion in compensation, about 20% less than in 2008
although the company has almost 100,000 fewer employees.
NY Times also notes Citigroup's results were in sharp contrast
with those of JPMorgan Chase, which has reported earnings of $11.7
billion in 2009, more than double its profit in 2008. JPMorgan
earned $3.3 billion in the fourth quarter alone.
About Citigroup
Based in New York, Citigroup Inc. (NYSE: C) -- is a global
diversified financial services holding company whose businesses
provide a broad range of financial services to consumer and
corporate customers. Citigroup has roughly 200 million customer
accounts and does business in more than 140 countries.
Citigroup's businesses are aligned in three reporting segments:
(i) Citicorp, which consists of Regional Consumer Banking (in
North America, EMEA, Asia, and Latin America) and the
Institutional Clients Group (Securities and Banking, including the
Private Bank, and Transaction Services); (ii) Citi Holdings, which
consists of Brokerage and Asset Management, Local Consumer
Lending, and a Special Asset Pool; and (iii) Corporate/Other.
As reported in the Troubled Company Reporter on November 25, 2008,
the U.S. government entered into an agreement with Citigroup to
provide a package of guarantees, liquidity access, and capital.
The U.S. Treasury and the Federal Deposit Insurance Corporation
agreed to provide protection against the possibility of unusually
large losses on an asset pool of roughly $306 billion of loans and
securities backed by residential and commercial real estate and
other such assets, which will remain on Citigroup's balance sheet.
As a fee for this arrangement, Citigroup issued preferred shares
to the Treasury and FDIC. The Federal Reserve agreed to backstop
residual risk in the asset pool through a non-recourse loan.
Citigroup, the third-biggest U.S. bank, received $45 billion in
bailout aid. Other bailed-out banks, including Bank of America
Corp., Wells Fargo & Co., have pledged to repay TARP money.
JPMorgan Chase & Co., Goldman Sachs Group Inc. and Morgan Stanley,
repaid TARP funds in June. Citigroup is selling assets to repay
the bailout funds.
Citigroup is one of the banks that, according to results of the
government's stress test, need more capital.
CITY CAPITAL: Posts $1.36-Mil. Net Loss in Q2 2009
--------------------------------------------------
City Capital Corporation reported a net loss of $1,361,369 on
total revenues of $817,012 for the three months ended June 30,
2009, compared to a net loss of $644,140 on total revenues of
$91,503 for the same period of 2008.
The Company had a consolidated net operating loss of $1,759,230
for the three months ended June 30, 2009, compared to $1,144,331
for the three months ended June 30, 2008, an increase of $614,899
or 54% from operations.
For the six months ended June 30, 2009, the Company reported total
revenues of $873,432 and a net loss of $2,538,419, compared to
total revenues of $98,503 and a net loss of $1,367,835 for the
same period in 2008.
Balance Sheet
At June 30, 2009, the Company's consolidated balance sheets showed
$3,122,166 in total assets and $7,486,096 in total liabilities,
resulting in a $4,363,930 shareholders' deficit.
The Company's consolidated balance sheets at June 30, 2009, also
showed strained liquidity with $2,598,159 in total current assets
available to pay $7,104,464 in total current liabilities.
A full-text copy of the Company's quarterly report on Form 10-Q is
available at no charge at http://researcharchives.com/t/s?4d90
Going Concern Doubt
The Company has incurred a net loss of $2,538,419 for the six
months ended June 30, 2009 and has reported an accumulated deficit
of $14,690,613 as of June 30, 2009.
"This raises substantial doubt as to the Company's ability to
continue as a going concern."
About City Capital
Based in Franklin, Tennessee, City Capital Corporation is a
professional management and diversified holding company engaged in
leveraging investments, holdings and other assets to build value
for investors and shareholders. The Company acquires and
revitalizes distressed investment opportunities in multiple
industry segments, creating potentially long-term returns for the
Company.
COASTAL CONCRETE II: Completes Out-of-Court Restructuring of Debt
-----------------------------------------------------------------
Coastal Concrete II LLC, a South Carolina-based manufacturer of
ready-made concrete for the residential and commercial markets,
has successfully completed an out-of-court financial restructuring
of its senior and mezzanine debt facilities and equity. The
investment banking group of Carl Marks Advisory Group LLC (CMAG)
served as financial advisor to the bank group.
GE Commercial Finance retained CMAG as agent for its senior lender
group to develop and implement a balance sheet restructuring,
enhancing the company's ability to service its long-standing
customer base, as well as expand in the future.
Acquired by Park Avenue Equity Partners LP in 2007, Coastal
Concrete supplies ready-made concrete to customers primarily in
South Carolina and Georgia. In business since 1985, the company
operates 12 permanent concrete plants and one mobile concrete
facility. Although the Southeast has been a leading area for
construction in the United States, the recent downturn in
construction resulting from poor economic conditions severely
impacted the company's operations.
CMAG managed Coastal Concrete's restructuring process, rightsizing
the capital structure to improve future liquidity for the company.
As a result of the restructuring, Coastal Concrete has developed
into a much stronger company.
"Coastal Concrete has served the construction market in the
Southeast for more than two decades and is very important to the
region's economy, employing a significant number of individuals,"
said Warren H. Feder, partner at CMAG. "The company's exceptional
management team was key to the restructuring success. They went
to great lengths to ensure that the employees and their families
will continue to have the opportunity to grow with Coastal. Being
part of that experience has meant a great deal to the Carl Marks
team."
The successful reorganization, combined with the nascent signs for
recovery in the Southeast's construction market, positions Coastal
Concrete for an optimistic future, Feder added.
About Carl Marks Advisory Group
and Carl Marks Securities
Carl Marks Advisory Group LLC -- http://www.carlmarks.com/-- with
offices in New York, Vienna, Va., Bedminster, N.J., and Charlotte,
N.C., provides a wide array of investment banking and financial
and operational advisory services to the middle market, including
mergers and acquisitions advice, sourcing of capital, financial
restructuring plans, strategic business assessments, improvement
plans and interim management.
Carl Marks Securities LLC, based in New York, assists its clients
in executing private placements of debt and equity. The firm is a
member of FINRA and SIPC.
CRUSADER ENERGY: February 19 Set as Post-Confirmation Bar Date
--------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Texas has
established February 19, 2010, at 4:00 p.m. (prevailing Central
time) as the post-confirmation bar date for any asserted expense
or claim, seeking a higher or superior priority than that of a
general unsecured creditor, in the Chapter 11 cases of Crusader
Energy Group Inc. and its debtor-affiliates.
Based in Oklahoma City, Oklahoma, Crusader Energy Group Inc. (Pink
Sheets: CKGRQ) -- http://www.ir.crusaderenergy.com/-- explores,
develops and acquires oil and gas properties, primarily in the
Anadarko Basin, Williston Basin, Permian Basin, and Fort Worth
Basin in the United States. It has working interests in more than
1,000 wells.
Crusader Energy and its affiliates filed for Chapter 11
protection on March 30, 2009 (Bankr. N.D. Tex. Lead Case No.
09-31797). The Debtors' financial condition as of
September 30, 2008, showed total assets of $749,978,331 and
total debts of $325,839,980.
Beth Lloyd, Esq., Richard H. London, Esq., and William Louis
Wallander, Esq., at Vinson & Elkins, L.L.P., represent the
Debtors as counsel. Jefferies & Company, Inc. acts as financial
adviser to Crusader in its Chapter 11 reorganization. BMC Group
Inc. is claims and notice agent. Holland N. Oneil, Esq., Michael
S. Haynes, Esq., and Richard McCoy Roberson, Esq., at Gardere,
Wynne & Sewell, represent the official committee of unsecured
creditors as counsel.
CYTORI THERAPEUTICS: Gets FDA Marketing Clearance for Fat Graft
---------------------------------------------------------------
The U.S. Food and Drug Administration has granted Cytori
Therapeutics 510(k) marketing clearance for its PureGraft(TM)
System. Cytori will launch the first and only device in the
United States cleared for aesthetic body contouring using
autologous fat. PureGraft(TM) allows a patient's own fat tissue
to rapidly be prepared in about 15 minutes for re-injection back
into the same patient for aesthetic contouring.
PureGraft(TM) will be sold in the United States directly by Cytori
as well as through select distribution partners on a non-exclusive
basis. The product will be available in the first quarter of 2010
and will be formally launched at the American Society of Aesthetic
Plastic Surgeons in May 2010.
Cytori is also seeking marketing approval (CE Mark certification)
for PureGraft(TM) in Europe, which is expected in the first half
of 2010. In Europe, PureGraft(TM), in addition to being sold as a
standalone product, will be used to complement Cytori's currently
available autologous tissue processing system as a means to expand
the potential number of clinical applications.
According to the American Society of Plastic Surgeons' most recent
report of plastic surgery statistics, over 46,000 fat grafting
procedures were performed in the United States in 2008. Currently,
over 5,000 plastic surgeons are registered with the American
Society of Plastic Surgeons.
About Cytori
Based in San Diego, California, Cytori Therapeutics (NASDAQ: CYTX)
-- http://www.cytori.com/-- is an emerging leader in providing
patients and physicians around the world with medical
technologies, which harness the potential of adult regenerative
cells from adipose tissue. The Company's StemSource(R) product
line is sold globally for cell banking and research applications.
As of September 30, 2009, the Company had $25,001,000 in total
assets against $26,424,000 in total liabilities, resulting in
$1,423,000 in stockholders' deficit.
DAVID HAASE: Voluntary Chapter 11 Case Summary
----------------------------------------------
Joint Debtors: David Haase
Andrea Haase
112 East 17th Street, #3W
New York, NY 10003
Bankruptcy Case No.: 10-10166
Chapter 11 Petition Date: January 14, 2010
Court: United States Bankruptcy Court
Southern District of New York (Manhattan)
Judge: Duncan W. Keir
Debtors' Counsel: Douglas J. Pick, Esq.
Pick & Zabicki LLP
369 Lexington Avenue, 12th Floor
New York, NY 10017
Tel: (212) 695-6000
Fax: (212) 695-6007
Email: dpick@picklaw.net
Estimated Assets: Not Stated
Estimated Debts: Not Stated
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.
DEXCOM INC: Says Q4 Product Revenues Up 43%; Canaccord Buys Shares
------------------------------------------------------------------
DexCom Inc. disclosed in a regulatory filing with the Securities
and Exchange Commission that estimated, unaudited product revenues
were roughly $6.6 million for the fourth quarter of 2009, up
roughly 43% sequentially from the prior quarter. DexCom sold
roughly 2,800 starter kits during the fourth quarter of 2009,
amounting to an increase of roughly 31% in starter kit sales
compared to the third quarter of 2009. Sequentially, sensor
revenues were up roughly 50% compared to the third quarter of
2009.
DexCom's President and Chief Executive Officer Terry Gregg was
slated to make a presentation at the J.P. Morgan 28th Annual
Healthcare Conference in San Francisco on January 12, 2010.
Meanwhile, DexCom on January 14, 2010, entered into an
underwriting agreement with Canaccord Adams Inc. The Underwriting
Agreement provides for the sale to the Underwriter of up to
4,025,000 shares of DexCom common stock, par value $0.001 per
share, at a price to the Underwriter of $8.30 per share, including
an overallotment option of 525,000 shares. The shares are being
offered and sold under a prospectus supplement filed with the
Securities and Exchange Commission pursuant to Rule 424(b) of the
Securities Act of 1933, as amended, in connection with an offering
pursuant to DexCom's shelf registration statement on Form S-3
(File Number 333-162874). The Offering is expected to close on
January 21, 2010.
Approval of 2010 Bonus Plan
On January 13, 2010, the Board of Directors of DexCom approved a
bonus plan for fiscal 2010 for the Company's management and select
individual contributors, including its chief executive officer,
chief financial officer and its other named executive officers.
The target bonus for the Chief Executive Officer is 80% of his
base salary; the target bonus for the Company's Chief
Administrative Officer is 50% of his base salary; the target bonus
for the Company's Senior Vice President of Operations is 45% of
his base salary; the target bonus for the Company's Senior Vice
President of Clinical, Regulatory and Quality is 40% of his base
salary; the target bonus for the Company's Vice Presidents is 30%
of their respective base salaries, and the target bonus for the
remainder of the Company's management employees and select
contributors is 25% of their respective base salaries.
With respect to the CEO, 75% of any bonus paid under the 2010 Plan
is based on achieving certain annual revenue goals and 25% is
based on achieving certain operating expense goals. For the
remainder of the Company's eligible employees, the amount of any
bonus awarded under the 2010 Plan will be predicated on achieving
targeted revenue goals, targeted operating expense goals, and
performance milestones. Generally speaking, 60% of any bonus paid
under the 2010 Plan is based on achieving certain annual revenue
goals, 20% is based on achieving targeted operating expense goals
and 20% is based on achieving certain performance milestones.
About DexCom
San Diego, California-based DexCom, Inc. (NASDAQ:DXCM) is a
medical device company focused on the design, development and
commercialization of continuous glucose monitoring systems for
ambulatory use by people with diabetes and by healthcare providers
in the hospital for the treatment of both diabetic and non-
diabetic patients.
At September 30, 2009, the Company had $53,956,000 in total assets
against $63,057,000 in total liabilities. At September 30, 2009,
the Company had accumulated deficit of $279,679,000 and
stockholders' deficit of $9,101,000.
DHP HOLDINGS: Has Until April 30 to Propose a Chapter 11 Plan
-------------------------------------------------------------
The Hon. Mary F. Walrath of the U.S. Bankruptcy Court for the
District of Delaware, in a third order, extended DHP Holdings II
Corporation, et al's exclusive exclusive right to file a Chapter
11 plan until April 20, 2010, and their exclusive right to solicit
acceptances of that plan until June 23, 2010.
Headquartered in Bowling Green, Kentucky, DHP Holdings II
Corporation is the parent of DESA Heating, which sells and
distributes heating commercial products in Europe and Mexico under
brand names including ReddyHeater, Comfort Glow and Master
Portable Heaters. The Company has manufacturing, storage and
distribution facilities in Alabama and California.
DHP Holdings II and six of its affiliates filed for Chapter 11
protection on December 29, 2008 (Bankr. D. Del. Lead Case No.
08-13422). The Company's international arm, HIG-DHP Barbados, has
not filed for bankruptcy. HIG-DHP Barbados holds 100% of the
equity of all foreign nondebtor subsidiaries, which manufacture,
distribute and sell commercial and consumer goods in Europe,
Mexico, and Canada.
Laura Davis Jones, Esq., and Timothy P. Cairns, Esq., at
Pachulski, Stang, Ziehl Young & Jones LLP, represent the Debtors
as counsel. The Debtors proposed AEG Partners as restructuring
consultants, and Craig S. Dean as chief restructuring officer and
Kevin Willis as assistant chief restructuring officer. The Court
approved Epiq Bankruptcy Solutions LLC as noticing, claims and
balloting agent. As of November 29, 2008, the Company, along with
its non-debtor subsidiaries and affiliates, had assets of
$132.5 million and liabilities of $133.2 million.
DISH NETWORK: Court Awards $51 Million in Anti-Piracy Case
----------------------------------------------------------
DISH Network L.L.C., EchoStar Technologies L.L.C. and NagraStar
said a Florida federal court issued a $51 million judgment against
Robert Ward, who posted software on the Internet that allowed
individuals to illegally receive DISH Network programming using
Free-To-Air receivers.
In the summary judgment decision, the court made two significant
holdings that will strengthen the companies' ability to pursue
pirates in the future. The court held that the posting of pirate
software constitutes a violation of the Federal Communications
Act, and that statutory damages should be calculated based on how
many individuals downloaded the pirate software.
"This is a significant victory in our effort to eradicate piracy
of the DISH Network system. We thank the court for its well-
reasoned analysis," said Pascal Lenoir, CEO of NagraStar.
About DISH Network
Englewood, Colorado-based DISH Network L.L.C., a
subsidiary of DISH Network Corporation (Nasdaq: DISH) --
http://www.dishnetwork.com/-- provides more than 14 million
satellite TV customers, as of December 10, 2009, with the highest
quality programming and technology at the best value, including
the lowest all-digital price nationwide. Customers have access to
hundreds of video and audio channels, the most HD channels, the
most international channels, state-of-the-art interactive TV
applications, and award-winning HD and DVR technology including
1080p Video on Demand and the ViP(R) 722 HD DVR, a CNET and PC
Magazine "Editors' Choice."
As of September 30, 2009, DISH Network had total assets of
$8,658,739,000 against total liabilities of $10,040,111,000. As
of September 30, 2009, the Company had accumulated deficit of
$2,036,138,000, Noncontrolling interest of $557,000 and
stockholders' deficit of $1,381,372,000.
DUDERSTADT FOUNDATION: Case Summary & 20 Largest Unsec. Creditors
-----------------------------------------------------------------
Debtor: Duderstadt Foundation Co., Inc.
2215 Belknap Place
San Antonio, TX 78212
Bankruptcy Case No.: 10-50199
Chapter 11 Petition Date: January 15, 2010
Court: United States Bankruptcy Court
Western District of Texas (San Antonio)
Judge: Chief Bkptcy Judge Ronald B. King
Debtor's Counsel: William R. Davis, Jr., Esq.
Langley & Banack, Inc
745 E Mulberry Ave, Suite 900
San Antonio, TX 78212
Tel: (210) 736-6600
Fax: (210) 735-6889
Email: wrdavis@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/txwb10-50199.pdf
The petition was signed by Frank J. Duderstadt, president of the
Company.
EL JEFE'S PROPERTIES: Case Summary & Unsecured Creditor
-------------------------------------------------------
Debtor: El Jefe's Properties, LLC
1350 Imperia Drive
Henderson, NV 89052
Bankruptcy Case No.: 10-10606
Chapter 11 Petition Date: January 15, 2010
Court: United States Bankruptcy Court
District of Nevada (Las Vegas)
Judge: Meredith A. Jury
Debtor's Counsel: Andrew J. Driggs, Esq.
Driggs Law Group
312 Glistening Cloud Drive
Henderson, NV 89012
Tel: (702) 270-2150
Fax: (702) 270-2125
Email: andrew@driggslawgroup.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Debtor identified Nevada State Development Corp. with a debt
claim (Building and Real Property located at 9925 S. Eastern Ave,
Las Vegas, Nevada) for $1,500,000 ($2,975,000 secured) ($2,139,000
senior lien) 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/nvb10-10606.pdf
The petition was signed by Kathleen Reichardt, manager of the
Company.
EXELIXIS INC: Promotes Lupe Rivera to EVP for Operations
--------------------------------------------------------
Exelixis, Inc., on January 14, 2010, promoted Lupe M. Rivera to
the position of Executive Vice President, Operations from her
previous position of Senior Vice President, Operations, a position
she held since July 2007.
Ms. Rivera previously served as Senior Vice President, Human
Resources and Communications from January 2007 through June 2007,
as Vice President, Human Resources from July 2004 through December
2006, and as the Company's Human Resources Director from January
2002 through June 2004. Ms. Rivera joined the Company in 2002
from AT&T's Digital Subscriber Line unit where she held the
position of District Manager, Human Resources.
Prior to joining AT&T, Ms. Rivera was Director, Human Resources
for NorthPoint Communications, and prior to that she held various
positions with Deltanet, an information technology company. Ms.
Rivera also spent 12 years in banking with Valley National Bank of
Arizona, Bank One, Arizona and Bank One, Utah. Ms. Rivera holds a
Masters Degree in Human Resources & Organization Development from
University of San Francisco. Ms. Rivera is a certified Senior
Professional in Human Resources by the Human Resource
Certification Institute and a Certified Compensation Professional
from World at Work (formerly known as the American Compensation
Association).
Amendment to Silicon Valley Bank Facility
On December 22, 2009, Exelixis entered into Amendment No. 9 to the
Loan and Security Agreement, dated May 22, 2002, with Silicon
Valley Bank. Amendment No. 9 provides for an extension of the
term of an existing equipment loan facility under the Loan
Agreement.
Prior to the effectiveness of Amendment No. 9, the Company could
only draw advances under Facility D through December 31, 2009. As
a result of Amendment No. 9, the Company may now draw advances
under Facility D through June 30, 2011.
In connection with the extension of the term, the size of the
facility was increased to $33,621,220 from $30,000,000. This
resulted in an increase in the amount of available funds under
Facility D to $15,000,000 as of December 22, 2009, after giving
effect to prior advances under Facility D. The Company is
required to borrow advances under Facility D in a minimum amount
equal to $2.5 million by each of June 30, 2010, December 31, 2010
and June 30, 2011. In the event the Company does not borrow any
Minimum Advance by the applicable required date, the Company is
required to pay interest on the difference on the amount borrowed
and $2.5 million.
As of December 22, 2009, total outstanding borrowing under the
Loan Agreement was $24.0 million.
About Exelixis Inc.
Headquartered in South San Francisco, California, Exelixis, Inc.,
develops innovative therapies for cancer and other serious
diseases. Through its drug discovery and development activities,
Exelixis is building a portfolio of novel compounds that it
believes has the potential to be high-quality, differentiated
pharmaceutical products.
As of September 30, 2009, the Company had total assets of
$421,102,000 against total liabilities of $563,872,000. As of
September 30, 2009, the Company had accumulated deficit of
$1,060,889,000 and stockholders' deficit of $142,770,000.
EQUINOX HOLDINGS: Moody's Assigns 'B1' Rating on $400 Mil. Notes
----------------------------------------------------------------
Moody's Investors Service assigned a B1 rating to Equinox
Holdings, Inc.'s proposed $400 million of senior secured notes due
2016. Concurrently, Moody's also affirmed Equinox's B3 corporate
family rating and B3 probability of default rating. Proceeds from
the proposed senior secured note offering, along with proceeds
from a proposed HoldCo PIK notes issuance and balance sheet cash,
will be used to refinance all of the company's existing debt and
pay related fees and expenses. The rating outlook remains stable.
Moody's believes that Equinox's stable financial performance and
good execution over the last year has strengthened its position
within the B3-ratings level and demonstrated the resiliency of its
operating model. However, the rating is still constrained by
company's relatively modest interest coverage and cash flow
generation as well as its exposure to weak discretionary spending
trends amidst a still very challenging macro environment. The
rating is also constrained by Equinox's high geographic
concentration and continued dependence, albeit improved from
historic levels, on a limited number of clubs in the New York area
for greater than 50% of the company's revenues and profitability.
The rating derives support from the favorable long-term growth
fundamentals for the fitness industry and Moody's expectation of
improved profitability due to the maturation of clubs built by
Equinox in the last few years.
These ratings were assigned:
* $400 million of Senior Secured Notes due 2016 -- B1 (LGD 3, 32%)
The ratings on the proposed notes are subject to Moody's
satisfactory review of the final documentation.
These ratings were affirmed:
* Corporate Family Rating at B3;
* Probability of Default Rating at B3;
Upon closing of the proposed transaction and repayment of existing
debt, Moody's will withdraw these ratings:
* $290 million of 9.25% Senior Unsecured Notes due 2012 -- B2 (LGD
3, 38%)
The last rating action was on September 22, 2006 when Moody's
upgraded the rating on Equinox's 9.25% senior unsecured notes due
2012 to B2 from B3 as per Moody's Loss Given Default methodology.
Headquartered in New York, Equinox Holdings, Inc., is an operator
of high-end full-service fitness clubs that offer an integrated
selection of Equinox-branded programs, services and products. The
company operated 50 fitness clubs in the U.S. as of December 2009.
In February 2006, the company was acquired by Related Companies,
L.P., a New York limited partnership, in a leveraged buyout for
approximately $520 million. Revenues for the twelve month period
ended September 30, 2009, were approximately $344 million.
ERICKSON RETIREMENT: Capmark Wants Panel Disbanded as to Littleton
------------------------------------------------------------------
Capmark Finance, Inc., N.A., as administrative and collateral
agent for itself and certain lenders that provided construction
financing to Debtor Littleton Campus, LLC, asks the Court to
disband the Official Committee of Unsecured Creditors in
Littleton Campus' bankruptcy case.
Monica S. Blacker, Esq., at Mintz Levin Cohn Ferris Glovsky and
Popeo, PC, in Boston, Massachusetts, points out that there is no
role for a committee of unsecured creditors in connection with
Littleton Campus. For one, she notes, no member of the existing
Creditors Committee is a creditor of Littleton Campus and thus,
the Committee cannot be considered representing the interests of
the creditors of Littleton Campus. In this light, the Creditors
Committee lacks standing to participate Littleton Campus' Chapter
11 case and thus, should be disbanded, Ms. Blacker insists.
Ms. Blacker adds that although the U.S. Trustee for Region 6
reconstituted the composition of the Creditors Committee on
January 8, 2010, it does not solve the problem. She states that
Morgan Stanley, a member of the Committee, is not a creditor of
Littleton Campus, but an affiliate of the holder of a potential
claim against Littleton Campus. Thus, Morgan Stanley is not
eligible to serve on the Creditors Committee, she insists.
Littleton Campus' schedules of assets and liabilities reflect
that the scheduled unsecured claims total $47,361. Thus, at the
very most, the interests the Creditors Committee is allegedly
representing hold claims against Littleton Campus in the maximum
amount of $47,361, as compared to the total aggregate scheduled
unsecured claims against all of the Debtors, which exceed
$35 million, Ms. Blacker points out.
In addition, Ms. Blacker notes that given the amount of claims
held by Capmark as well as the right of Capmark to receive the
distributions, over 99% of any amounts recovered by the Committee
will revert back to Capmark.
Ms. Blacker also argues that the Committee has taken a very
litigious role in Littleton Campus' Chapter 11 case. As these
actions cannot result in any meaningful recovery to the unsecured
creditors allegedly represented by the Committee, the only effect
that the actions of the Committee are likely to have is to
unnecessarily increase the cost of administration, she asserts.
Since the Committee must be disbanded as to Littleton Campus'
Chapter 11 case, no fees or costs, including attorneys' fees, may
be awarded to the Committee or its counsel in Littleton Campus'
Chapter 11 case, Ms. Blacker 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: PNC Wants Panel Disbanded as to 5 Debtors
--------------------------------------------------------------
Pursuant to Rules 2022 and 9014 of the Federal Rules of
Bankruptcy Procedure, PNC Bank, National Association, in its
capacity as administrative agent for various senior secured
project lenders, asks the Court to disband the Official Committee
of the Unsecured Creditors in the bankruptcy cases of five
Project Debtors:
(1) Novi Campus LLC
(2) Houston Campus, L.P.
(3) Kansas Campus, LLC
(4) Ashburn Campus LLC
(5) Concord Campus, LP
PNC Bank further asks the Court to:
(i) declare null and void and of no force and effect all acts
taken by the Creditors Committee in the Project Debtors'
Chapter 11 cases; and
(ii) bar the Creditors Committee and its counsel from
receiving any expense reimbursement or compensation,
including attorneys' fees, from the assets of the
Debtors.
PNC Bank complains that none of the Committee members is a
prepetition unsecured creditor of the Project Debtors or a person
representing a prepetition unsecured creditor as their appointed
agent.
Specifically, five members of the Committee are unsecured
creditors of other Debtors whose Chapter 11 cases have been
administratively consolidated with the Chapter 11 cases of the
Project Debtors, Daniel I. Morenoff, Esq., at K&L Gates LLP, in
Dallas, Texas, discloses. Another Committee member, Morgan
Stanley is not a creditor of any type, which at most is an
affiliate of three special purpose entities that, depending on
Debtors Dallas Campus, LP, Kansas Campus, LLC, or Littleton
Campus LLC, are either a subordinated secured creditor or a
purported ground lessor.
In this light, the Creditors Committee is illegally constituted
and its appointment violated Section 1102(a) of the Bankruptcy
Code, Mr. Morenoff asserts. Section 1102 does not permit persons
who are not creditors of the debtor to be a member of the
committee, he explains.
Moreover, Mr. Morenoff reminds the Court that the Creditors
Committee has taken various actions in or affecting the Project
Debtors' Chapter 11 cases, including a motion asking the Court to
hold that PNC Bank does not have a continuing security interest
in postpetition Initial Entrance Deposits due to Section 552(a)
of the Bankruptcy Code. These actions of the Creditors Committee
are illegal and ultra vires and are null and void, he argues.
"Unless the Committee is promptly disbanded in the Project
Debtors' Chapter 11 cases, the Committee can be expected to take
additional illegal and ultra vires actions that dissipate the
resources of the Project Debtors' estates and impede an effective
reorganization and confirmation of a plan from occurring," he
says.
Mr. Morenoff further contends that the illegal composition of the
Creditors Committee and the ultra vires actions of its counsel
preclude any compensation or expense reimbursement of the
Committee or its counsel from the assets of the Project Debtors.
PNC Bank thus objects to a surcharge of its collateral to pay any
fees or expenses incurred by the illegally constituted Creditors
Committee.
The Court will hold a hearing on February 5, 2010, to consider
the Motions to Disband.
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: Says Sec. 1104 Examiner Unnecessary
--------------------------------------------------------
Erickson Retirement Communities LLC and its units allege that the
joint request of 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., for the appointment of an examiner
under Section 1104 of the Bankruptcy Code in the Debtors' Chapter
11 cases is a transparent attempt by constituencies who are
seeking to exercise hold up leverage to delay the progress of
these Chapter 11 cases and extort a settlement, which does not
reflect their economic interests.
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."
Counsel to the Debtors, Vincent P. Slusher, Esq., at DLA Piper
LLP, in Dallas, Texas, asserts that none of the other Debtors
have fixed, liquidated, unsecured debt exceeding $5 million
pursuant to Section 1104(c)(3). He reminds the Court that the
Debtors recently filed an Amended Joint Plan of Reorganization
and Disclosure Statement and are seeking to close a sale
transaction with Redwood Capital Investments LLC. In this light,
there is no need to accommodate the Mezzanine Lenders' request,
which will only be burdensome, costly, and will interfere with
the Debtors' reorganization efforts, he insists.
Moreover, as the legitimate rights of the Mezzanine Lenders have
been preserved, there is no need for an examiner to protect their
interests, Mr. Slusher contends. The Mezzanine Lenders'
dissatisfaction with the fact that they are not receiving a
greater share of the proceeds under the Amended Plan because they
are contractually subordinated, is not a sufficient ground to
saddle the Debtors' estates with the cost of an examiner with
sweeping powers, he maintains.
The Debtors thus ask the Court to deny the Examiner Motion.
Should the Court determine that it must appoint an examiner in
these Chapter 11 cases, the scope and duration of the examiner's
investigation should be extremely limited, the Debtors urge the
Court.
Wilmington Trust FSB and Capmark Finance, Inc. join in the
objections filed by the Debtors, Wells Fargo Bank National
Association, U.S. Bank National Association, and PNC Bank,
National Association.
The Court has continued the hearing with respect to the Examiner
Motion to February 5, 2010.
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 Oct. 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)
EXELIXIS INC: Promotes Lupe Rivera to EVP for Operations
--------------------------------------------------------
Exelixis, Inc., on January 14, 2010, promoted Lupe M. Rivera to
the position of Executive Vice President, Operations from her
previous position of Senior Vice President, Operations, a position
she held since July 2007.
Ms. Rivera previously served as Senior Vice President, Human
Resources and Communications from January 2007 through June 2007,
as Vice President, Human Resources from July 2004 through December
2006, and as the Company's Human Resources Director from January
2002 through June 2004. Ms. Rivera joined the Company in 2002
from AT&T's Digital Subscriber Line unit where she held the
position of District Manager, Human Resources.
Prior to joining AT&T, Ms. Rivera was Director, Human Resources
for NorthPoint Communications, and prior to that she held various
positions with Deltanet, an information technology company. Ms.
Rivera also spent 12 years in banking with Valley National Bank of
Arizona, Bank One, Arizona and Bank One, Utah. Ms. Rivera holds a
Masters Degree in Human Resources & Organization Development from
University of San Francisco. Ms. Rivera is a certified Senior
Professional in Human Resources by the Human Resource
Certification Institute and a Certified Compensation Professional
from World at Work (formerly known as the American Compensation
Association).
Amendment to Silicon Valley Bank Facility
On December 22, 2009, Exelixis entered into Amendment No. 9 to the
Loan and Security Agreement, dated May 22, 2002, with Silicon
Valley Bank. Amendment No. 9 provides for an extension of the
term of an existing equipment loan facility under the Loan
Agreement.
Prior to the effectiveness of Amendment No. 9, the Company could
only draw advances under Facility D through December 31, 2009. As
a result of Amendment No. 9, the Company may now draw advances
under Facility D through June 30, 2011.
In connection with the extension of the term, the size of the
facility was increased to $33,621,220 from $30,000,000. This
resulted in an increase in the amount of available funds under
Facility D to $15,000,000 as of December 22, 2009, after giving
effect to prior advances under Facility D. The Company is
required to borrow advances under Facility D in a minimum amount
equal to $2.5 million by each of June 30, 2010, December 31, 2010
and June 30, 2011. In the event the Company does not borrow any
Minimum Advance by the applicable required date, the Company is
required to pay interest on the difference on the amount borrowed
and $2.5 million.
As of December 22, 2009, total outstanding borrowing under the
Loan Agreement was $24.0 million.
About Exelixis Inc.
Headquartered in South San Francisco, California, Exelixis, Inc.,
develops innovative therapies for cancer and other serious
diseases. Through its drug discovery and development activities,
Exelixis is building a portfolio of novel compounds that it
believes has the potential to be high-quality, differentiated
pharmaceutical products.
As of September 30, 2009, the Company had total assets of
$421,102,000 against total liabilities of $563,872,000. As of
September 30, 2009, the Company had accumulated deficit of
$1,060,889,000 and stockholders' deficit of $142,770,000.
FILI ENTERPRISES: Asks for Court OK for $1-Mil. DIP Financing
-------------------------------------------------------------
Fili Enterprises, Inc., has sought permission from the U.S.
Bankruptcy Court for the Southern District of California to obtain
postpetition secured financing from GPG Capital, LLC.
The DIP lender has committed to provide the Debtor with a
$1,000,000 revolving credit facility on a senior secured super-
priority basis. The proposed DIP Financing will be available to
the Debtor on a revolving basis to cover cash shortfalls, if and
when there are shortfalls. Funds will not be drawn -- and
accordingly, the estate will not be obligated to pay interest --
unless and until there is a need.
Brendan P. Collins, Esq., the attorney for the Debtor, explains
that the Debtor needs the money to fund its Chapter 11 case, pay
suppliers and other parties.
The DIP facility will mature on July 31, 2010. Advances
outstanding under the DIP Facility will bear interest at 14.0%.
Interest will be payable monthly in arrears and calculated on the
basis of a 360-day year and actual days elapsed. In the event of
default, the Debtors will pay an additional 2.0% default interest
per annum.
The Lender will receive a commitment fee in the amount equal to
5.0% of the DIP Facility commitment. The fee will be deemed fully
earned and paid upon the disbursement of the DIP Facility. The
Debtor will also pay to Lender from and after the date of the
final order is entered, a non-refundable unused commitment fee of
0.50% per annum of the daily average unused portion of the DIP
Facility, payable monthly in arrears and on the Maturity Date.
All obligations of Debtor under the DIP Facility will be:
(a) entitled to super-priority administrative expense claim
status, subject to (i) the payment of allowed professional fees
and disbursements incurred by Debtor and any official committees
appointed in this Case in an amount not to exceed $750,000 in the
aggregate, and (ii) the payment of fees (collectively the "Carve-
Out Expenses"), and (b) secured by a security interest in and lien
on the assets of the Debtor. The security interests in and liens
on the assets of Debtor will be first priority, senior secured
liens not subject to subordination, but subject to the Carve-Out
Expenses. All borrowings by Debtor, all reimbursement obligations
with respect to all costs, fees and expenses of the Investors, and
all other obligations owed to the Lender will be secured and
charged to the loan account to be established under the DIP
Facility. All obligations will be payable upon the Maturity
Date.
The DIP Facility may be repaid at any time in whole or in part
without premium or penalty.
Debtor won't make any capital expenditure in excess of $100,000
without the Lender's approval. There will be other customary
covenants which are customary in facilities.
A copy of the DIP agreement is available for free at:
http://bankrupt.com/misc/FILI_ENTERPRISES_loanpact.pdf
About Fili Enterprises
San Diego, California-based Fili Enterprises, Inc. -- dba Daphne's
Greek Cafe, aka Daphne's Greek Express -- filed for Chapter 11
bankruptcy protection on January 11, 2010 (Bankr. S.D. Calif. Case
No. 10-00324). Brendan Collins, Esq., and Natasha Johnson, Esq.,
at DLA Piper LLP (US), assist 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.
FILI ENTERPRISES: Court Grants Interim OK to Use Cash Collateral
----------------------------------------------------------------
Fili Enterprises, Inc., sought and obtained authority from the
Hon. Peter W. Bowie of the U.S. Bankruptcy Court for the Southern
District of California to use Bank of America's cash collateral
until January 28, 2010.
Brendan P. Collins, Esq., the attorney of 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 budget, a copy of which is available for free at:
http://bankrupt.com/misc/FILI_ENTERPRISES_budget.pdf
Because the Debtor's use of Cash Collateral may result in the
diminution of the value of the Prepetition Collateral and the Cash
Collateral, or either of them, the Court has granted claims
against the Debtor's estate in favor of Bank of America as
adequate protection, which claims will be in the amount of any
postpetition diminution in the value of the Prepetition Collateral
and the Cash Collateral, or either of them.
Bank of America is granted replacement security interests in, and
liens upon, the Prepetition Collateral, all postpetition proceeds
thereof and all postpetition assets of the Debtor, whether the
property and assets were acquired by the Debtor before or after
the Petition Date.
The Debtor is authorized and directed to provide Bank of America
and its counsel, consultants, and other representatives, and
agents with non-privileged operating and financial information as
may be reasonably requested by Bank of America to Debtor's
counsel.
The Court has set a January 27, 2010 hearing on the Debtor's
request to use cash collateral.
San Diego, California-based Fili Enterprises, Inc. -- dba Daphne's
Greek Cafe, aka Daphne's Greek Express -- filed for Chapter 11
bankruptcy protection on January 11, 2010 (Bankr. S.D. Calif. Case
No. 10-00324). Brendan Collins, Esq., and Natasha Johnson, Esq.,
at DLA Piper LLP (US), assist 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.
FILI ENTERPRISES: Amends List Largest Unsecured Creditors
---------------------------------------------------------
Fili Enterprises, Inc., has filed with the U.S. Bankruptcy Court
for the Southern District of California an amended list of 20
largest unsecured creditors.
A full-text copy of the Debtor's amended list of creditors is
available for free at http://bankrupt.com/misc/casb10-00324.pdf
San Diego, California-based Fili Enterprises, Inc. -- dba Daphne's
Greek Cafe, aka Daphne's Greek Express -- filed for Chapter 11
bankruptcy protection on January 11, 2010 (Bankr. S.D. Calif. Case
No. 10-00324). Brendan Collins, Esq., and Natasha Johnson, Esq.,
at DLA Piper LLP (US), assist 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.
FILI ENTERPRISES: Sec. 341 Creditors Meeting Set for Feb. 16
------------------------------------------------------------
The U.S. Trustee for Region 15 will convene a meeting of Fili
Enterprises, Inc.'s creditors on February 16, 2010, at 1:30 p.m.
at Office of the U.S. Trustee, 402 W. Broadway (use C St.
entrance), Suite 630, San Diego, CA 92101.
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.
San Diego, California-based Fili Enterprises, Inc. -- dba Daphne's
Greek Cafe, aka Daphne's Greek Express -- filed for Chapter 11
bankruptcy protection on January 11, 2010 (Bankr. S.D. Calif. Case
No. 10-00324). Brendan Collins, Esq., and Natasha Johnson, Esq.,
at DLA Piper LLP (US), assist 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.
FILI ENTERPRISES: Asks for Court OK for $1-Mil. DIP Financing
-------------------------------------------------------------
Fili Enterprises, Inc., has sought permission from the U.S.
Bankruptcy Court for the Southern District of California to obtain
postpetition secured financing from GPG Capital, LLC.
The DIP lender has committed to provide the Debtor with a
$1,000,000 revolving credit facility on a senior secured super-
priority basis. The proposed DIP Financing will be available to
the Debtor on a revolving basis to cover cash shortfalls, if and
when there are shortfalls. Funds will not be drawn -- and
accordingly, the estate will not be obligated to pay interest --
unless and until there is a need.
Brendan P. Collins, Esq., the attorney for the Debtor, explains
that the Debtor needs the money to fund its Chapter 11 case, pay
suppliers and other parties.
The DIP facility will mature on July 31, 2010. Advances
outstanding under the DIP Facility will bear interest at 14.0%.
Interest will be payable monthly in arrears and calculated on the
basis of a 360-day year and actual days elapsed. In the event of
default, the Debtors will pay an additional 2.0% default interest
per annum.
The Lender will receive a commitment fee in the amount equal to
5.0% of the DIP Facility commitment. The fee will be deemed fully
earned and paid upon the disbursement of the DIP Facility. The
Debtor will also pay to Lender from and after the date of the
final order is entered, a non-refundable unused commitment fee of
0.50% per annum of the daily average unused portion of the DIP
Facility, payable monthly in arrears and on the Maturity Date.
All obligations of Debtor under the DIP Facility will be:
(a) entitled to super-priority administrative expense claim
status, subject to (i) the payment of allowed professional fees
and disbursements incurred by Debtor and any official committees
appointed in this Case in an amount not to exceed $750,000 in the
aggregate, and (ii) the payment of fees (collectively the "Carve-
Out Expenses"), and (b) secured by a security interest in and lien
on the assets of the Debtor. The security interests in and liens
on the assets of Debtor will be first priority, senior secured
liens not subject to subordination, but subject to the Carve-Out
Expenses. All borrowings by Debtor, all reimbursement obligations
with respect to all costs, fees and expenses of the Investors, and
all other obligations owed to the Lender will be secured and
charged to the loan account to be established under the DIP
Facility. All obligations will be payable upon the Maturity
Date.
The DIP Facility may be repaid at any time in whole or in part
without premium or penalty.
Debtor won't make any capital expenditure in excess of $100,000
without the Lender's approval. There will be other customary
covenants which are customary in facilities.
A copy of the DIP agreement is available for free at:
http://bankrupt.com/misc/FILI_ENTERPRISES_loanpact.pdf
About Fili Enterprises
San Diego, California-based Fili Enterprises, Inc. -- dba Daphne's
Greek Cafe, aka Daphne's Greek Express -- filed for Chapter 11
bankruptcy protection on January 11, 2010 (Bankr. S.D. Calif. Case
No. 10-00324). Brendan Collins, Esq., and Natasha Johnson, Esq.,
at DLA Piper LLP (US), assist 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.
FILI ENTERPRISES: Court Grants Interim OK to Use Cash Collateral
----------------------------------------------------------------
Fili Enterprises, Inc., sought and obtained authority from the
Hon. Peter W. Bowie of the U.S. Bankruptcy Court for the Southern
District of California to use Bank of America's cash collateral
until January 28, 2010.
Brendan P. Collins, Esq., the attorney of 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 budget, a copy of which is available for free at:
http://bankrupt.com/misc/FILI_ENTERPRISES_budget.pdf
Because the Debtor's use of Cash Collateral may result in the
diminution of the value of the Prepetition Collateral and the Cash
Collateral, or either of them, the Court has granted claims
against the Debtor's estate in favor of Bank of America as
adequate protection, which claims will be in the amount of any
postpetition diminution in the value of the Prepetition Collateral
and the Cash Collateral, or either of them.
Bank of America is granted replacement security interests in, and
liens upon, the Prepetition Collateral, all postpetition proceeds
thereof and all postpetition assets of the Debtor, whether the
property and assets were acquired by the Debtor before or after
the Petition Date.
The Debtor is authorized and directed to provide Bank of America
and its counsel, consultants, and other representatives, and
agents with non-privileged operating and financial information as
may be reasonably requested by Bank of America to Debtor's
counsel.
The Court has set a January 27, 2010 hearing on the Debtor's
request to use cash collateral.
San Diego, California-based Fili Enterprises, Inc. -- dba Daphne's
Greek Cafe, aka Daphne's Greek Express -- filed for Chapter 11
bankruptcy protection on January 11, 2010 (Bankr. S.D. Calif. Case
No. 10-00324). Brendan Collins, Esq., and Natasha Johnson, Esq.,
at DLA Piper LLP (US), assist 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.
FONTAINEBLEAU LAS VEGAS: Brugnara Presents $170MM "All Cash" Offer
-----------------------------------------------------------------
San Francisco real estate developer Luke Brugnara told the Las
Vegas Review-Journal in an e-mail he has submitted a $170 million
"all cash" offer with the U.S. Bankruptcy Court in Miami for the
Fontainebleau project. Review-Journal relates Mr. Brugnara said
he would pay up to $200 million for the Fontainebleau project, and
that he is backed financially by a New York City hedge fund.
The Review-Journal' Howard Stutz says Mr. Brugnara indicated he
had proof of funding to the bankruptcy court examiner in the case.
On Monday, Mr. Brugnara provided the Review-Journal with
documentation of the offer.
The bankruptcy court will hold an auction for the project
Thursday. Fontainebleau was 70% completed before construction
stopped in April after lenders cut off $800 million in financing.
The project once had a budget of almost $3 billion, the report
notes.
Carl Icahn, who serves as stalking horse bidder, has offered
$156.6 million in cash and financing for Fontainebleau.
Penn National Gaming Inc. in November initially offered $101.5
million for the project -- $50 million in cash and $51.5 million
in DIP financing. Penn National raised its offer to $145 million,
but was topped by Carl Icahn. Penn National eventually pulled out
of the bidding process.
FONTAINEBLEAU BANKRUPTCY NEWS reports that Craig Road Development
Corporation in a letter dated December 2, 2009, informed the Court
of its interest to acquire 100% of the "Tier A" casino hotel and
resort from Fontainebleau. An entity formed by CRDC and certain
investors -- Heroes Property Group, LLC -- will pay $350,000,000
for 100% of the Project's equity, payable in cash at closing. The
letter, however, indicated the Sellers would be responsible for
retiring any funded and interest bearing debt, including capital
leases, of the Project. The Project's stock purchased by Heroes
Property Group will be free and clear of all liens and
encumbrances.
Eugene Hill, chief executive officer of Craig Road Development
Corporation, relates that the Project would be completed through
separate funding, estimated at $800 million. Funding for the
acquisition and build out will come from commercial sources and
the repayment of the funds will be from operational income. The
completed facility will become one of three Department of Defense
resort properties in the United States, Mr. Hill elaborated.
In a letter sent to CRDC on December 4, 2009, Judge Cristol asked
CRDC to coordinate with the Debtors and the Chapter 11 Examiner if
it wishes to participate in the January 21, 2010 Auction.
It is unclear if other bidders had entered the picture, according
to the Review-Journal.
On Monday, Mr. Brugnara told the Review-Journal he wouldn't
complete the 3,889-room hotel tower right away, but would finish
the Fontainebleau's retail element and open the shopping area.
"The land and the site alone are worth more than $200 million,"
Mr. Brugnara told the Review-Journal. "The rent from the retail
component would be used to finish the tower. Money is so tight
right now."
If he is successful at the auction, Mr. Brugnara said it would
take him between 30 and 60 days to close the Fontainebleau
transaction, according to the report.
"I've closed over $1 billion in transactions, and I've closed 100
percent of my deals," Mr. Brugnara told the Review-Journal.
The Review-Journal says Mr. Brugnara disputed analysts' comments
that it would take at least $1.5 billion to complete the 63-story
building, saying it would cost far less to finish the tower.
Run In With Authorities
The Review-Journal recalls that Mr. Brugnara in March 2001 was
denied a gaming license on unanimous votes by both the three-
person Gaming Control Board and five-member Nevada Gaming
Commission for the Silver City Casino, which he purchased in 1999
for $30 million. The casino has since been closed and converted
into a shopping center across from the Echelon site near
Convention Center Drive. Mr. Brugnara had proposed to build a
high-rise condominium tower on the site but those plans have since
been dropped.
The report notes gaming regulators in 1999 were openly hostile to
Mr. Brugnara's license application, citing several matters
including a failure to file federal tax forms and a $1 million
fine by San Francisco authorities. The control board hearing
alone took more than six hours to complete, the report recalls.
Mr. Brugnara told the Review-Journal on Monday that the 2001
licensing matter was "water under the bridge" and he thought he
would be successful this time around if he acquires the
Fontainebleau.
The report also recalls that in April 2008, a federal grand jury
in San Francisco indicted Mr. Brugnara for filing false tax
returns by failing to report more than $45 million in capital
gains from the sales of real property. Mr. Brugnara, however,
said that matter was being settled. The report says a spokesman
for the U.S. attorney's office in San Francisco could not be
reached for comment Monday because of the federal holiday.
About Fontainebleau Las Vegas
Fontainebleau Las Vegas -- http://www.fontainebleau.com/-- is
constructing a luxury resort, Fontainebleu Las Vegas, on the
northern end of the Las Vegas Strip.
Fontainebleau Las Vegas Holdings, LLC, Fontainebleau Las Vegas,
LLC, Fontainebleau Las Vegas Capital Corp. filed for Chapter 11
protection on June 9, 2009 (Bankr. S.D. Fla. Lead Case No.
09-21481). Judge A. Jay Cristol presides over the Debtors' cases.
Scott L Baena, Esq., at Bilzin Sumberg Baena Price & Axelrod LLP,
represents the Debtors in their restructuring efforts. The
Debtors' Financial Advisor are Moelis & Company LLC and Citadel
Derivatives Group LLC. The Debtors' Special Litigation Counsel is
David M. Friedman, Esq., at Kasowitz, Benson, Torres & Friedman
LLP and the Debtors' Special Counsel is Jack J. Kessler, Esq., and
Alan Rubin, Esq., at Buchanan Ingersoll & Rooney PC. The Debtors'
Claims Agent is Kurtzman Carson Consulting LLC. Attorneys at
Genovese Joblove & Battista, P.A., and Fox Rothschild, LLP,
represent the Official Committee of Unsecured Creditors.
As of June 9, 2009, Fontainebleau Las Vegas LLC listed more than
$1 billion in debt and a similar amount in assets, while each of
Fontainebleau Las Vegas Capital Corp. and Fontainebleau Las Vegas
Holdings, LLC, listed less than $50,000 in assets and more than
$1 billion in debts.
Bankruptcy Creditors' Service, Inc., publishes Fontainebleau
Bankruptcy News. The newsletter tracks the Chapter 11 proceedings
of Fontainebleau Las Vegas Holdings, LLC, and its debtor-
affiliates. (http://bankrupt.com/newsstand/or 215/945-7000)
FUNDAMENTAL PROVISIONS: Gets Final Approval to Access Lenders Cash
------------------------------------------------------------------
The Hon. Douglas D. Dodd of the U.S. Bankruptcy Court for the
Middle District of Louisiana, in a final order, authorized
Fundamental Provisions, L.L.C., et al., to use cash securing their
obligations to their prepetition lenders.
The Debtors related that certain creditors, including the Internal
Revenue Service, may claim a lien on the Debtor's credit card
deposits, which constitute cash collateral. As of the date of
filing, the Debtors estimate that it has $25,000 in credit card
slips that have been deposited for collection, which creditors may
assert constitute cash collateral. In the ordinary case, these
credit card deposits are collected and replaced on a daily basis
with other credit card deposits arising from the sale of food and
beverages.
The Debtors would use the money to fund their Chapter 11 case, pay
suppliers and other parties.
The Court also said that the Debtors may exceed each line item in
the Budget by up to 20%, so long as the aggregate amount of the
budget on a monthly basis is not exceeded by more than 20%.
In exchange for using the cash collateral, the Debtors will grant
the prepetition lenders replacement security interests in and
liens on all post-petition assets of the Debtor and its estates
and superpriority administrative expense claim.
Gonzales, Louisiana-based Fundamental Provisions, LLC -- fdba
Pollo, Inc., et al. -- filed for Chapter 11 bankruptcy protection
on December 8, 2009 (Bankr. M.D. La. Case No. 09-11897).
Fundamental Provision's affiliates -- Pollo, Inc., and Thaxco,
Inc. -- also filed Chapter 11 bankruptcy petitions. Barry W.
Miller, Esq., at Heller, Draper, Hayden, Patrick & Horn, assists
the Debtors in their restructuring efforts. Fundamental
Provisions listed $10,000,001 to $50,000,000 in assets and
$10,000,001 to $50,000,000 in liabilities.
GENERAL MOTORS: Seeks Union Concessions at Former Delphi Plants
---------------------------------------------------------------
Detroit Free Press Business Writer Jewel Gopwani reports that
General Motors is seeking concessions from workers at UAW-
represented plants that GM acquired last year from its Delphi
Corp.
Detroit Free Press cited the plant's workers and a memo to workers
from a union local. Detroit Free Press relates that at union
meetings in Saginaw and Lockport, New York, UAW officials told
workers at GM parts plants that proposed concessions include wage
freezes and a $3 an-hour pay cut for skilled-trades workers.
Plants in Wyoming near Grand Rapids, Kokomo, Ind., and Rochester,
N.Y., may also have to consider concessions, Detroit Free Press
says.
Free Press says analysts expect GM to sell those parts plants, and
union concessions could help. A GM spokesman declined to comment
on union negotiations, the report notes.
"We were advised in order to remain competitive, there will be
other necessary modifications we must consider and ratify,"
according to the memo from UAW local 686 in Lockport, N.Y., Free
Press says.
About General Motors
General Motors Company -- http://www.gm.com/-- is one of the
world's largest automakers, tracing its roots back to 1908. With
its global headquarters in Detroit, GM employs 209,000 people in
every major region of the world and does business in some 140
countries. GM and its strategic partners produce cars and trucks
in 34 countries, and sell and service these vehicles through these
brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, Opel,
Vauxhall and Wuling. GM's largest national market is the United
States, followed by China, Brazil, the United Kingdom, Canada,
Russia and Germany. GM's OnStar subsidiary is the industry leader
in vehicle safety, security and information services.
GM acquired its operations from General Motors Company, n/k/a
Motors Liquidation Company, on July 10, 2009, pursuant to a sale
under Section 363 of the Bankruptcy Code. Motors Liquidation or
Old GM is the subject of a pending Chapter 11 reorganization case
before the U.S. Bankruptcy Court for the Southern District of New
York.
At September 30, 2009, GM had US$107.45 billion in total assets
against US$135.60 billion in total liabilities.
About Motors Liquidation
General Motors Corporation and three of its affiliates filed for
Chapter 11 protection on June 1, 2009 (Bankr. S.D.N.Y. Lead Case
No. 09-50026). General Motors changed its name to Motors
Liquidation Co. following the sale of its key assets to a company
60.8% owned by the U.S. Government.
The Honorable Robert E. Gerber presides over the Chapter 11 cases.
Harvey R. Miller, Esq., Stephen Karotkin, Esq., and Joseph H.
Smolinsky, Esq., at Weil, Gotshal & Manges LLP, assist the Debtors
in their restructuring efforts. Al Koch at AP Services, LLC, an
affiliate of AlixPartners, LLP, serves as the Chief Executive
Officer for Motors Liquidation Company. GM is also represented by
Jenner & Block LLP and Honigman Miller Schwartz and Cohn LLP as
counsel. Cravath, Swaine, & Moore LLP is providing legal advice
to the GM Board of Directors. GM's financial advisors are Morgan
Stanley, Evercore Partners and the Blackstone Group LLP.
Bankruptcy Creditors' Service, Inc., publishes General Motors
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by General Motors Corp. and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
GLG PARTNERS: Restores Base Salaries of Executives
--------------------------------------------------
GLG Partners, Inc., disclosed in a regulatory filing with the
Securities and Exchange Commission that effective January 1, 2010,
the base salaries of Noam Gottesman, the Company's Chairman and
Co-Chief Executive Officer; Emmanuel Roman, Co-Chief Executive
Officer of the Company; and Pierre Lagrange, Senior Managing
Director of the GLG Partners LP subsidiary of the Company -- which
had been voluntarily temporarily decreased between April 1 and
December 31, 2009, at the request of the executives -- were
restored to their pre-April 1, 2009 levels under each of the
employment agreements, as amended March 24, 2009, with the Company
or certain of its subsidiaries.
For each executive, the aggregate base salary under all of such
executive's employment agreements with the Company or the
subsidiaries at the restored levels is $1 million annually. The
salary restorations were pursuant to the terms of the employment
agreements of Messrs. Gottesman, Roman and Lagrange previously
disclosed.
However, on January 4, 2010, the employment agreements between Mr.
Gottesman and each of the Company and GLG Partners LP were further
amended to reallocate between the two agreements his restored
annual base salary effective January 1, 2010, from $400,000 and
$400,000, respectively, to $600,000 and $200,000, respectively.
About GLG Partners
GLG Partners, Inc., is a U.S.-listed asset management company
offering clients a diverse range of alternative and traditional
investment products and account management services. The
Company's primary business is to provide investment management
advisory services for various investment funds and companies and
accounts it manages
As of September 30, 2009, the Company had total assets of
$466,580,000 against total liabilities of $743,716,000. As of
September 30, 2009, the Company had accumulated deficit of
$1,486,711,000, non-controlling interest of $17,666,000 and
stockholders' deficit of $277,136,000.
GREAT ATLANTIC & PACIFIC TEA: Q3 Net Loss Widens to $559,586,000
----------------------------------------------------------------
The Great Atlantic & Pacific Tea Company, Inc., posted wider net
loss of $559,586,000 for the 12 weeks ended December 5, 2009, from
a net loss of $14,412,000 for the same period ended November 29,
2008. The Company's net loss widened to $705,055,000 for the 40
weeks ended December 5, 2009, from a net loss of $31,249,000 for
the same period ended November 29, 2008.
Sales for the third quarter were $1,962,692,000 versus
$2,120,954,000 last year. Comparable store sales decreased 5.8%.
Sales for the 40 weeks year to date were $6,817,996,000 versus
$7,226,255,000 in 2008. Comparable store sales decreased 4.2%.
Excluding non-operating items, adjusted EBITDA was $180 million
versus $241 million last year.
Christian Haub, Executive Chairman of the Board, said, "The US
food retail market continues to face one of the most difficult and
challenging environments in many years which analysts expect will
extend through the first half of 2010. Unemployment, deflation
and the resulting price competition combined with consumers'
drastic changes in spending behavior has severely impacted both
our industry and our business.
"Since assuming the role of interim CEO, I have launched efforts
to assess all aspects of our business and to develop initiatives
to improve our performance in the short term. During this
important process, we have been fully engaged with Yucaipa and
have leveraged their significant skills and industry expertise.
We have determined that our previous merchandising and marketing
programs did not meet the consumer's changing needs. As a result,
we have been changing our go-to-market direction and implemented a
number of initiatives to mitigate the negative external influences
and provide our customers with better value, service and quality
products.
"This quarter marks the transition to a different approach which
we expect will translate to improved performance in the coming
months. At the same time, we are working together with Yucaipa to
develop longer-term strategies to drive sustainable success in the
future. These efforts combined with our strong strategic position
in the Northeast, our superior store base and our resolve to
implement strategic changes makes me confident in the Company's
long-term prospects."
As of December 5, 2009, the Company had $3,025,429,000 in total
assets against $3,383,900,000 in total liabilities, resulting in
stockholders' deficit of $402,186,000.
A full-text copy of the Company's quarterly report on Form 10-Q is
available at no charge at http://ResearchArchives.com/t/s?4d9a
About Great Atlantic & Pacific Tea
The Great Atlantic & Pacific Tea Company, Inc., based in Montvale,
New Jersey, operates conventional supermarkets, combination food
and drug stores and discount food stores in 8 U.S. states and the
District of Columbia. The Company's business consists strictly of
retail operations, which totaled 433 stores as of December 5,
2009. During the 40 weeks ended December 5, 2009, the Company
operated in four reportable segments: Fresh, Price Impact, Gourmet
and Other. The Other segment includes Food Basics and Liquor
businesses.
* * *
The Company's existing corporate rating with Moody's Investors
Service is B3 with a negative outlook. The Company's senior
unsecured debt is rated Caa1, its senior secured notes are rated
B3 and its liquidity rating is SGL-3.
The Company's corporate credit rating with Standard & Poor's
Ratings Group is B- with a stable outlook. Its senior unsecured
debt is rated CCC, and its recovery rating is 6, indicating that
lenders can expect a negligible (0%-10%) recovery in the event of
a payment default. Its senior secured notes are rated B-, with a
recovery rating of 4, indicating that lenders can expect an
average recovery (30%-50%) in the event of a payment default. Its
preferred stock rating is CCC-.
GRIFFIN & SHULA: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: Griffin & Shula Enterprises, Inc.
PO Box 1792
Dothan, AL 36302
Bankruptcy Case No.: 10-10068
Chapter 11 Petition Date: January 15, 2010
Court: United States Bankruptcy Court
Middle District of Alabama (Dothan)
Judge: William R. Sawyer
Debtor's Counsel: Margaret Baxley, Esq.
Baxley Law Firm LLC
407 Honeysuckle Rd, Suite 100
Dothan, AL 36305
Tel: (334) 699-7800
Fax: (334) 699-7937
Email: mlabaxleyal@gmail.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/almb10-10068.pdf
The petition was signed by Porter Griffin, president/chairman of
board of directors of the Company.
GULFSTREAM INT'L: Has Deal to Convert $1.5MM Debt to Stock
----------------------------------------------------------
Gulfstream International Group, Inc., has reached an agreement in
principle with Gulfstream Funding II, LLC, to convert $1.5 million
of subordinated debt to convertible preferred stock, effective
January 15, 2010. Terms of the agreement remain subject to final
determination, which should be completed within the next two
weeks. The Lender has granted a waiver extending the maturity
date until such time as the conversion agreement is completed.
The Lender made a subordinated loan to the Company on October 7,
2009. The subordinated promissory note for $1,500,000, as well as
interest accrued at 12%, was due to be repaid to the Lender on
January 15, 2010. The Company utilized the funds obtained from
the subordinated loans for additional working capital and other
general corporate purposes.
About Gulfstream International Group, Inc.
Gulfstream -- http://www.gulfstreamair.com/-- is a regional air
carrier based in Fort Lauderdale, Florida, operating for 20 years.
The Company specializes in providing travelers with access to
niche locations not typically covered by major carriers.
Gulfstream International Airlines, Inc. operates more than 150
scheduled flights per day, serving nine destinations in Florida,
ten destinations in the Bahamas, five destinations from
Continental Airline's Cleveland hub under the Department of
Transportation's Essential Air Service Program and charter service
to Cuba.
HACKETTS STORES: Forms HIIO Inc to Offer Clothing Apparel
---------------------------------------------------------
Watertown Daily Time relates Hacketts Stores Inc. created a new
subsidiary, HIIO Inc., to offer clothing apparels in smaller store
locations. Herbert L. Becker is the president of the new
subsidiary.
Based in New York, Patrick Hacketts Hardware Co. --
http://www.hackettsonline.com/-- operates department stores. The
company filed for Chapter 11 bankruptcy in November 2009.
HAROLD COLE: Updated Chapter 11 Case Summary
--------------------------------------------
Debtor: Harold E. Cole
dba Harold E. Cole Antiques
27 Middle Quarter Road
Woodbury, CT 06798
Bankruptcy Case No.: 10-50091
Chapter 11 Petition Date: January 15, 2010
Court: United States Bankruptcy Court
District of Connecticut (Bridgeport)
Debtor's Counsel: Ira B. Charmoy, Esq.
Zeldes Needle & Cooper
1000 Lafayette Blvd
P.O. Box 1740
Bridgeport, CT 06601
Tel: (203) 333-9441
Fax: (203) 333-1489
Email: icharmoy@znclaw.com
Maximino Medina, Jr., Esq.
Zeldes Needle & Cooper
1000 Lafayette Boulevard
P.O. Box 1740
Bridgeport, CT 06601
Tel: (203) 333-9441
Fax: (203) 333-1489
Email: mmedina@znclaw.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $500,001 to $1,000,000
A list of the Company's 18 largest unsecured creditors is
available for free at:
http://bankrupt.com/misc/ctb10-50091.pdf
The petition was signed by Mr. Cole.
HEILIG-MEYERS: Liquidation Trust Distributes RoomStore Stock
------------------------------------------------------------
RoomStore, Inc.'s transfer agent on January 11, 2010, issued
2,858,660 shares of common stock to the 5,027 Class 5b
beneficiaries of the Heilig-Meyers Liquidating Trust, in
accordance with directions received from the Trust.
"RoomStore is pleased to close this final chapter of a very long
and complicated Heilig-Meyers Company bankruptcy process. I would
like to thank our loyal employees, shareholders, customers and
vendors for their perseverance," said RoomStore President and CEO
Curtis C. Kimbrell. He added, "We welcome our many new
shareholders, and we look forward to working with our shareholders
to achieve greater success at RoomStore."
Heilig-Meyers Company filed for chapter 11 protection on
Aug. 16, 2000 (Bankr. E.D. Va. Case No. 00-34533), reporting
$1.3 billion in assets and $839 million in liabilities. When the
Company filed for bankruptcy protection it operated hundreds of
retail stores in more than half of the 50 states. In April 2001,
the company shut down its Heilig-Meyers business format. In
June 2001, the Debtors sold its Homemakers chain to Rhodes, Inc.
GOB sales have been concluded and the Debtors are liquidating
their remaining Heilig-Meyers assets. Bruce H. Matson, Esq., Troy
Savenko, Esq., and Katherine Macaulay Mueller, Esq., at LeClair
Ryan, P.C., in Richmond, Va., represented the Debtors.
Heilig-Meyers' Third Amended and Restated Joint Liquidating Plan
of Reorganization became effective on February 17, 2006. The
Heilig-Meyers Liquidation Trust was established on the Effective
Date, and Anthony H. N. Schnelling was appointed as the
Liquidation Trustee. Pursuant to the terms of the Third Amended
Plan, pre-petition creditors were to receive beneficial interests
in the Liquidation Trust in settlement of their claims. On the
Effective Date, all of the Companies' assets were transferred to
the Liquidation Trust to be converted to cash for distribution or,
in the alternative, distributed directly to the beneficiaries of
the Liquidation Trust. Existing shares of the Companies' common
stock were cancelled on the Effective date and equity holders
received no distribution under the Plan.
HOVNANIAN ENTERPRISES: 10-5/8% Notes Exchange Bid Expires Feb. 17
-----------------------------------------------------------------
K. Hovnanian Enterprises, Inc., said its offer to exchange all
Outstanding 10-5/8% Senior Secured Notes due 2016 ($785,000,000
aggregate principal amount outstanding) for 10-5/8% Senior Secured
Notes due 2016, which have been registered under the Securities
Act of 1933 will expire at 5:00 p.m., New York City Time, on
February 17, 2010, unless extended.
K. Hovnanian does not currently intend to extend the expiration
date. K. Hovnanian will not receive any proceeds from the
exchange offer.
The exchange notes are being offered to satisfy some of K.
Hovnanian's obligations under registration rights agreement
entered into in connection with the placement of the outstanding
notes. The terms of the exchange notes to be issued in the
exchange offer are substantially identical to the outstanding
notes, except that the exchange notes will be freely tradeable.
Hovnanian Enterprises, Inc., as parent company, will fully and
unconditionally guarantee K. Hovnanian's obligations under the
exchange notes.
The exchange notes may be sold in the over-the-counter market, in
negotiated transactions or through a combination of such methods.
K. Hovnanian does not plan to list the exchange notes on a
national market.
A full-text copy of the prospectus is available at no charge at
http://ResearchArchives.com/t/s?4d9b
About Hovnanian Enterprises
Hovnanian Enterprises, Inc. (NYSE: HOV), founded in 1959 by Kevork
S. Hovnanian, is headquartered in Red Bank, New Jersey. The
Company is one of the nation's largest homebuilders with
operations in Arizona, California, Delaware, Florida, Georgia,
Illinois, Kentucky, Maryland, Minnesota, New Jersey, New York,
North Carolina, Ohio, Pennsylvania, South Carolina, Texas,
Virginia and West Virginia. The Company's homes are marketed and
sold under the trade names K. Hovnanian(R) Homes(R), Matzel &
Mumford, Brighton Homes, Parkwood Builders, Town & Country Homes,
Oster Homes, First Home Builders of Florida and CraftBuilt Homes.
As the developer of K. Hovnanian's(R) Four Seasons communities,
the Company is also one of the nation's largest builders of active
adult homes.
At October 31, 2009, the Company had $2.024 billion in total
assets against $2.340 billion in total liabilities. At
October 31, 2009, the Company had accumulated deficit of
$826.007 million and stockholder's deficit of $349.598 million.
* * *
Hovnanian carries S&P's "CCC" corporate credit rating; Moody's
"Caa1" corporate family rating; and Fitch's "CCC" Issuer Default
Rating.
INDUSTRY WEST: Case Summary & 7 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: Industry West Commerce Center, LLC,
a California limited liability company
1960 Los Alamos Rd.
Santa Rosa, CA 95409
Bankruptcy Case No.: 10-10088
Chapter 11 Petition Date: January 14, 2010
Court: United States Bankruptcy Court
Northern District of California (Santa Rosa)
Debtor's Counsel: John H. MacConaghy, Esq.
MacConaghy and Barnier
645 1st St. W #D
Sonoma, CA 95476
Tel: (707) 935-3205
Email: macclaw@macbarlaw.com
Estimated Assets: $10,000,001 to $50,000,000
Estimated Debts: $10,000,001 to $50,000,000
The petition was signed by Vincent Rizzo, the Company's authorized
agent.
Debtor's List of 7 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Catalyst Construction Trade debt $59,517
Pacific Gas & Electric Construction services $18,620
Debbie Farquahr
Cushman & Wakerfield of Professional services $6,403
CA Inc
Anderson, Ziegler, et al Professional services $4,529
McNutt Law Group Professional services $2,308
Pachulski Stang Ziehl Professional services $1,113
& Jones
Natural Images Trade debt $850
INTERNATIONAL ALUMINUM: Has Official Committee of Creditors
-----------------------------------------------------------
Roberta A. Deangelis, Acting United States Trustee, Region 3,
appoints these persons to the Committee of Unsecured Creditors of
International Aluminum Corp.:
1. Carlyle Mezzanine Partners, L.P.,
Attn: James C. Shevlet, Jr.,
11100 Santa Monica Blvd., Suite 300,
Los Angeles, CA 90025,
Phone: 310-575-1700,
Fax: 310-575-1740
2. AEA Mezzanine Funding B LLC,
Attn: Joseph Carrabino, Jr.,
One Stamford Plaza, 263 Tresser Blvd.,
Stamford, CT 06901,
Phone: 203-564-2671,
Fax: 203-564-2661
3. Southeastern Extrusion & Tool, Inc.,
Attn: Paul Fickbohm, PO Box 2218,
Florence, AL 35630,
Phone: 256-766-6421,
Fax: 256-766-7227
Bill Rochelle at Bloomberg News notes that two members of the
Committee are investors Carlyle Mezzanine Partners LP and AEA
Mezzanine Funding B LLC. The identities of the majority of the
Committee could turn out to be significant because the company's
plan would give nothing to mezzanine lenders.
The Chapter 11 Plan
International Aluminum Corp. and its units have filed with the
U.S. Bankruptcy Court for the District of Delaware a joint plan of
reorganization and disclosure statement.
Under the Plan, senior secured creditors -- owed $125 million on a
term loan and $20 million on a revolving loan -- would receive $38
million in new notes and 100% of the equity in the reorganized
companies. They will recover 72.5% to 82% of their claims.
Holders of other secured claims would have their claims reinstated
and will recover 100%.
General unsecured claims, administrative expense claims, tax
claims, certain priority non-tax claims and certain other secured
claims would be paid in full.
Holders of 12.75% Senior Subordinated Notes due 2014, aggregating
$45 million would receive nothing on account of their claims.
Carlyle Mezzanine Partners, L.P., is agent under the senior
subordinated loan agreement. Existing equity interests would be
extinguished and equity holders won't have any distributions.
They are deemed to reject the Plan and won't be receiving ballots.
About International Aluminum
International Aluminum filed for Chapter 11 bankruptcy protection
on January 4, 2010 (Bankr. D. Delaware Case No. 10-10003). The
Company's affiliates, including IAC Holding Co. and United States
Aluminum Corporation, also filed Chapter 11 bankruptcy petitions.
John Henry Knight, Esq., and L. Katherine Good, Esq., at Richards,
Layton & Finger, P.A., assist the Debtors in their restructuring
efforts. Weil, Gotshal & Manges LLP is the Debtor's co-counsel.
Moelis & Company is the Debtor's financial advisor. Kurtzman
Carson Consultants LLC is the Debtor's claims agent. The Debtor
listed $198 million in assets and $217 million in liabilities as
of November 30, 2009.
JAMES KNOWLES: Voluntary Chapter 11 Case Summary
------------------------------------------------
Joint Debtors: James N. Knowles
Sara Knowles
372 Laun Street
Altadena, CA 91001
Bankruptcy Case No.: 10-11762
Chapter 11 Petition Date: January 18, 2010
Court: United States Bankruptcy Court
Central District of California (Los Angeles)
Judge: Ernest M. Robles
Debtors' Counsel: Michael A. Cisneros, Esq.
Attorney at Law
50 W Lemon Ave Ste 12
Monrovia, CA 91016
Tel: (626) 359-3692
Fax: (626) 359-3728
Email: mcisneros@mac.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 $1,482,600
and total debts of $1,737,385.
The Company says it does not have unsecured creditors who are non
insiders when they filed their petition.
The petition was signed by the Joint Debtors.
JAMES TIERNO: Case Summary & 14 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: James P. Tierno
dba Ace-Tech Auto Sales
dba Ace-Tech Computer Sales
10 Casey Road
McDonald, PA 15057
Bankruptcy Case No.: 10-20251
Chapter 11 Petition Date: January 18, 2010
Court: United States Bankruptcy Court
Western District of Pennsylvania (Pittsburgh)
Debtor's Counsel: Robert O. Lampl, Esq.
960 Penn Avenue, Suite 1200
Pittsburgh, PA 15222
Tel: (412) 392-0330
Fax: (412) 392-0335
Email: rol@lampllaw.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $100,001 to $500,000
A full-text copy of Mr. Tierno's petition, including a list of his
14 largest unsecured creditors, is available for free at:
http://bankrupt.com/misc/pawb10-20251.pdf
The petition was signed by Mr. Tierno.
JAPAN AIRLINES: Files to Reorganize in Tokyo and NYC
----------------------------------------------------
Japan Airlines Corp. filed for reorganization January 19 in the
Tokyo District Court and filed a Chapter 15 petition in New York
(Bankr. S.D.N.Y. Case No. 10-10198). The Company said debt is
$28 billion.
Starting October 2009, the Debtors engaged in advance
consultations regarding possible debt restructuring with the
Enterprise Turnaround Initiative Corporation of Japan, a fund
established to help revive firms with state-guaranteed loans. In
discussions with ETIC, ultimately it was determined that a court-
supervised restructuring would provide the Debtors' the best
opportunity to restructure their debt and return to profitability.
To effectuate this restructuring, the Debtors voluntarily filed
for the commencement of a corporate reorganization proceeding with
the Tokyo District Court under the Corporate Reorganization Act of
Japan on January 19, 2010. In the Japan Proceeding, the Debtors
intend to obtain the approval of the relevant affected creditors,
and confirmation by the Tokyo District Court, of a debt
restructuring plan.
To ensure sufficient liquidity to maintain their businesses and
safe flight operations without disruption during the pendency of
the Japan Proceeding, the Debtors have entered into an agreement
pursuant to which ETIC and the Development Bank of Japan have
committed to provide approximately $5 billion of postpetition
financing to effectuate the
reorganization.
Tokyo Proceedings
Japan Airlines Corporation, Japan Airlines International Co., Ltd.
and JAL Capital Co., Ltd., filed January 19 -- jointly with the
Development Bank of Japan Japan Bank for International
Cooperation, Mizuho Corporate Bank, Ltd., The Bank of Tokyo-
Mitsubishi UFJ, Ltd. and Sumitomo Mitsui Banking Corporation -- an
application to the Enterprise Turnaround Initiative Corporation of
Japan for support for its restructuring and received the decision
from ETIC to provide support.
In addition, JAL filed the petitions for commencement of corporate
reorganization proceedings with the Tokyo District Court. The
Court entered an order commencing the proceedings and appointed
ETIC and Eiji Katayama, Esq., as reorganization trustees.
With respect to the certified alternative dispute resolution
procedures as prescribed in the Act on Special Measures for
Revitalization of Industrial Vitality and Innovation of Industrial
Activities that JAL had begun, the termination of those procedures
was decided by the Japanese Association of Turnaround
Professionals, a private operator of the Turnaround ADR Procedure,
prior to the filing of the petitions for commencement of corporate
reorganization proceedings.
The Trustees obtained comprehensive Court approval authorizing
JAL's continued payment of certain commercial transaction claims,
including payments for fuel and other supplies and services, as
well as leases and other related obligations. Also, JAL will be
able to obtain the DIP financing from DBJ and ETIC.
JAL said in a press release that the continuation of group's
flight operations will not be interrupted and our safe flight
operations will be surely performed. IT said that customers'
airline tickets and frequent flyer miles will be fully protected
and the frequent flyer program is expected to be continued as it
has been conducted.
A full-text copy of JAL's news release is available for free at:
http://press.jal.co.jp/en/release/201001/001432.html
Chapter 15 Petition
Aside from Japan Airlines Corp. Japan Airlines International Co.,
Ltd. and JAL Capital Co., Ltd. also filed Chapter 15 petitions.
To ensure the effective and economic administration of the
Debtors' restructuring efforts, the Debtors say they require the
protection afforded to foreign debtors pursuant to chapter 15 of
the Bankruptcy Code for their valuable assets in the United
States.
The Debtors want the U.S. Court to hold that Japan Proceeding is a
"foreign main proceeding" within the meaning of Section 1502(4) of
the Bankruptcy Code, as each of the Debtors is a Japanese company
having a substantial connection to Japan, and having its center of
main interest in Japan.
The New York court will assist the court in Japan by stopping
creditor actions in the U.S. The New York court, following
hearings, is expected to enter preliminary and permanent
injunctions against creditor actions in the U.S.
Immediately upon the recognition of a foreign main proceeding, the
automatic stay and selected other provisions of the Bankruptcy
Code take effect within the United States. The foreign
representative is also authorized to operate the debtor's business
in the ordinary course. The U.S. court is authorized to issue
preliminary relief as soon as the petition for recognition is
filed.
Ryan B. Bennett, Esq., at Kirkland & Ellis, LLP, represents the
Chapter 15 debtors.
The Chapter 15 petition says assets and debts both exceed $1
billion.
Protracted Bankruptcy Case Seen
The Wall Street Journal's Hiroyuki Kachi reports that Japan
Airlines Corp.'s stint under bankruptcy protection isn't likely to
be short or simple. The Journal cites JAL's massive liabilities
and sprawling business that covers everything from jet-fuel
procurement to aircraft leasing, both in Japan and overseas. The
Journal says JAL's case could also raise challenging questions
about whether bankruptcy protection will be recognized as it does
business in other countries.
"One thing that can become a big future problem is whether the
court protection will be valid outside Japan as an international
bankruptcy case," Hideyuki Kobayashi, Esq., at Blakemore & Mitsuki
law office in Tokyo, said, according to the Journal. Citing also
Japanese law and the uncertainty surrounding its fortunes, he
added, "We can expect at least three years for JAL's revival."
JAL filed for bankruptcy in Tokyo District Court pursuant to
Japan's Corporate Rehabilitation Act, which is based on U.S.
bankruptcy law.
The Journal also notes Japan's bankruptcy protection law has
undergone several revisions to date, aimed at making it easier to
use and bringing it closer into line with Chapter 11. Citing
Teikoku Databank, the Journal says among the 134 companies that
filed for bankruptcy protection under the act between January 2004
and June 2009, around 50% have already managed to revive
themselves, and only 1.5% actually went bankrupt and were
liquidated. Those companies took an average of 1.7 years to exit
the reorganization process, data from Teikoku Databank showed,
compared with 12.1 years for companies entering bankruptcy
protection 10 years ago.
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 in the Troubled Company Reporter-Asia Pacific on
December 4, 2009, Standard & Poor's Ratings Services lowered to
'SD' (selective default) from 'CC' its long-term corporate credit
ratings on Japan Airlines Corp. and Japan Airlines International
Co. Ltd., its wholly owned subsidiary, and removed the ratings
from CreditWatch. At the same time, Standard & Poor's maintained
its senior unsecured debt ratings on both companies at 'CCC' and
kept the ratings on CreditWatch with developing implications. On
Sept. 18, 2009, S&P placed the corporate credit and senior
unsecured debt ratings on both companies on CreditWatch with
negative implications and maintained the CreditWatch status on
Oct. 16, 2009, and Nov. 4, 2009. On Nov. 13, 2009, S&P maintained
its CreditWatch status on the corporate ratings on both companies
and revised to developing its CreditWatch status on the senior
unsecured debt ratings.
The TCR-AP reported on Nov. 3, 2009, that Moody's Investors
Service 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.
JAPAN AIRLINES: Chapter 15 Case Summary
---------------------------------------
Chapter 15 Petitioner: Eiji Katayama,
foreign representative
Chapter 15 Debtor: Japan Airlines Corporation
JAL Building
2-4-11 Higashi Shinagawa
Shinagawa-ku
Tokyo
Japan
Chapter 15 Case No.: 10-10198
Debtor-affiliates filing separate Chapter 15 petitions:
Entity Case No.
------ --------
Japan Airlines International Co., Ltd. 10-10199
JAL Capital Co., Ltd. 10-10200
Type of Business: 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.
Chapter 15 Petition Date: January 19, 2010
Court: Southern District of New York (Manhattan)
Judge: James M. Peck
Foreign
Representative's
Counsel: Ryan B. Bennett, Esq.
Kirkland & Ellis, LLP
300 North LaSalle
Chicago, IL 60654
Tel: (312) 862-2000
Fax: (312) 862-2200
Email: rbennett@kirkland.com
Japan Counsel
to Foreign
Representative: Naho Ebata
Abe, Ikubo & Katayama
Fukuoka Building, 9th Floor
2-8-7 Yaesu, Chuo-Ku
Tokyo 104-0028 Japan
Tel: 81 3 3273 2600
Fax: 81 3 3273 2033
http://www.aiklaw.co.jp
Chapter 15
Case Claims
Agent: Kurtzman Carson Consultants LLC
2335 Alaska Avenue
El Segundo, CA 90245
Tel: 877-770-0497
Estimated Assets: More than $1,000,000,000
Estimated Debts: More than $1,000,000,000
JOHN DAVIS: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------
Joint Debtors: John C. Davis
Renee B. Davis
26491 Riverbank Road
Salisbury, MD 21801
Bankruptcy Case No.: 10-10877
Chapter 11 Petition Date: January 14, 2010
Court: United States Bankruptcy Court
District of Maryland (Baltimore)
Judge: Duncan W. Keir
Debtors' Counsel: Michael E. Crowson, Esq.
The Law Firm Of Ann Shaw, P.A.
212 W. Main Street Suite 303
Salisbury, MD 21801
Email: michael@lawislocal.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $10,000,001 to $50,000,000
According to the schedules, the Company has assets of $1,579,115,
and total debts of $20,325,444.
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/mdb10-10877.pdf
The petition was signed by the Joint Debtors.
JOHNSON BROADCASTING: Confirmation Hearing Set for February 23
--------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Texas will
consider at a hearing on February 23, 2010, at 4:30 p.m. (central
standard time) the confirmation of Johnson Broadcasting Inc.
and Johnson Broadcasting of Dallas Inc.'s Plan of Reorganization.
The hearing will be held in Courtroom 600, 6th Floor, Bob Casey
Courthouse, 515 Rusk, Houston, Texas before the Hon. Jeff Bohm.
According to the Disclosure Statement, the Plan provides for the
waterfall distribution of the sale proceeds from the sale of
assets of JBI and JBD. The Debtors reserve their right to take
any necessary actions, seeking to pay in full secured claims
attaching to the property immediately after the closing of the
sale without the necessity of confirmation of the Plan or the
conclusion of any other pending or proposed sales of the Debtors'
assets.
Each holder of an allowed general unsecured claim will receive its
pro rate share up to the allowed amount of the claimant's allowed
claim.
All distributions under the Plan will be made by the Plan agent.
A full-text copy of the Disclosure Statement is available for free
at http://bankrupt.com/misc/JohnsonBroadcasting_DS.pdf
Based in Houston, Texas, Johnson Broadcasting Inc. and Johnson
Broadcasting of Dallas Inc. own and operate television stations in
Texas. Closely held Johnson Broadcasting Inc. and Johnson
Broadcasting of Dallas Inc. filed separate petitions for Chapter
11 relief on October 13, 2008 (Bankr. S.D. Texas Case No. 08-36583
and 08-36585, respectively). Johnson sought Chapter 11 protection
in October 2008 when the lessor of equipment sought to foreclose.
The controlling shareholder, Douglas R. Johnson, also filed in
Chapter 11 (Bankr. S.D Tex. Case No. 08-35584).
John James Sparacino, Esq., Joseph Peak Rovira, Esq., and Timothy
Alvin Davidson, II, Esq., at Andrews and Kurth, serve as counsel
to the Debtors. In its schedules, Johnson Broadcasting Inc.
listed total assets of $7,759,501 and total debts of $14,232,988.
JURGIELEWICZ DUCK: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------------
Debtor: Jurgielewicz Duck Farm
P.O. Box 68
Moriches, NY 11955
Bankruptcy Case No.: 10-70231
Chapter 11 Petition Date: January 12, 2010
Court: United States Bankruptcy Court
Eastern District of New York (Central Islip)
Judge: Dorothy Eisenberg
Debtor's Counsel: Arnold Mitchell Greene, Esq.
Robinson Brog Leinwand Greene et al
1345 Avenue of the Americas, 31st Floor
New York, NY 10105
Tel: (212) 603-6399
Fax: (212) 956-2164
Email: amg@robinsonbrog.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/nyeb10-70231.pdf
The petition was signed by Benjamin Jurgielewicz, general partner
of the Company.
KDJ ADVERTISING: Blames Recession for Chapter 11 Filing
-------------------------------------------------------
Matthew Flamm at Crain's New York Business reports that KDJ
Advertising filed for Chapter 11 bankruptcy the U.S. Bankruptcy
Court for the Southern District of New York, and laid off its
workers blaming recession and downturn in financial advertising.
According to papers filed with the court, the company owes $80,599
to NBC Universal; $52,360, WABC-AM; $35,292, Newsday; and
$621,500, New York Islanders hockey team.
The company posted debts of between $1 million and $10 million,
Mr. Flamm notes.
KDJ Advertising operates an advertising company in New York.
KRAVE ENTERTAINMENT: Files for Chapter 11 to Continue Business
--------------------------------------------------------------
John G. Edwards at Las Vegas Review-Journal says Krave
Entertainment LLC filed for Chapter 11 bankruptcy to continue
operations at Harmon Theater and Krave nightclub.
The Company listed assets of $153,000 and debts of $3.5 million
including $602,000 in payroll taxes that it owed to Internal
Revenue Services. The company said it owes $299,000 for sales
taxes and $174,000 for entertainment taxes to Nevada Department of
Taxation, Mr. Edwards adds.
Krave Entertainment operates Harmon Theater and Krave nightclub at
the Miracle Mile Shops at Planet Hollywood.
LANDAMERICA FIN'L: CDC Wants Rule 2004 Exam on Records Custodian
----------------------------------------------------------------
CDC Rural LP entered into an exchange agreement with LandAmerica
1031 Exchange Services, Inc., to effectuate a Section 1031 tax-
deferred exchange on replacement properties. In accordance with
the Rural Exchange Agreement, CDC Rural conveyed the relinquished
property located in Tempe, Arizona. LES then sold the CDC Rural
Relinquished Property to Bubion Investment Co., LLC, as required
under the CDC Rural Exchange Agreement.
The CDC Rural Exchange Agreement required LES (i) to hold about
$1.6 million in sale proceeds with respect to the CDC Rural
Relinquished Property for the benefit of CDC Rural, and (ii) to
guarantee that CDC Rural would receive interest on the funds at
the rate outlined under the Exchange Agreement.
CDC Glendale LP also entered into an exchange agreement with LES
to effectuate a Section 1031 tax deferred exchange on replacement
properties. The Glendale Exchange Agreement required LES to hold
approximately $1.3 million in proceeds from the sale of the CDC
Glendale Relinquished Property.
CDC Glendale and CDC Rural believe that they were defrauded by
the Debtors and certain other parties working in concert with the
Debtors into entering into Exchange Agreements mere days before
the Debtors' bankruptcy filing.
The Debtors' confirmed Chapter 11 Plan provides an injunction
against pursuing claims against the Debtors' officers and
directors to the extent it depletes any officer and director
insurance policy coverage. In this light, CDC seeks documents
and other information from the Debtors concerning the identity of
third parties who are or are not covered by the Debtors' D&O
Policies.
CDC specifically requests that each of the Debtors designate one
or more custodians who can present testimony on their behalf as
to:
-- the source, authenticity, and other factors relevant to
the admission into evidence under the Federal Rules of
Evidence of the documents produced in response to the
document request as well as the subject matter set forth
in each document; and
-- the Debtors' inability, if any, to produce any of the
documents requested.
In addition, CDC needs to review specific document response to
the document requests which it believes are in the possession,
custody or control of the Debtors as part of the assessment.
Accordingly, CDC asks the Court to compel the Debtors' records
custodian to appear for examination pursuant to Rule 2004 of the
Federal Rules of Bankruptcy Procedure before a duly authorized
court reporter at the offices of Sands Anderson Marks & Miller,
at 801 East Main Street, Suite 1800, in Richmond, Virginia, at
10:00 a.m., on January 14, 2010, to testify and provide
information on the requested topics.
CDC also seeks permission to continue the Rule 2004 Exam on the
records custodian day to day until completed.
About LandAmerica Financial
LandAmerica Financial Group, Inc., provides real estate
transaction services with offices nationwide and a vast network of
active agents. LandAmerica and its affiliates operate through
approximately 700 offices and a network of more than 10,000 active
agents throughout the world, including Mexico, Canada, the
Caribbean, Latin America, Europe, and Asia.
LandAmerica Financial Group and its affiliate LandAmerica 1031
Exchange Services, Inc. filed for Chapter 11 protection Nov. 26,
2008 (Bankr. E.D. Va. Lead Case No. 08-35994). Attorneys at
Willkie Farr & Gallagher LLP and McGuireWoods LLP serve as co-
counsel. Zolfo Cooper is the restructuring advisor. Epiq
Bankruptcy Solutions serves as claims and notice agent.
Attorneys at Akin Gump Strauss Hauer & Feld LLP and Tavenner &
Beran, PLC, serve as counsel to the Creditors Committee of 1031
Exchange. Bingham McCutchen LLP and LeClair Ryan serve as counsel
to the Creditors Committee of LFG.
In its bankruptcy petition, LFG listed total assets of
$3,325,100,000, and total debts of $2,839,800,000 as of Sept. 30,
2008.
On March 6, 2009, affiliate LandAmerica Assessment Corporation,
aka National Assessment Corporation, filed its own petition for
Chapter 11 relief. Affiliate LandAmerica Title Company filed for
for Chapter 11 relief on March 27, 2009. LandAmerica Credit
Services, Inc., filed for Chapter 11 in July 2009.
Bankruptcy Creditors' Service, Inc., publishes LandAmerica
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by LandAmerica Financial and its affiliate LandAmerica
1031 Exchange Services, Inc. (http://bankrupt.com/newsstand/or
215/945-7000)
LANDAMERICA FIN'L: R. Blue Sues Capital Title on Dischargeability
-----------------------------------------------------------------
Rolando Blue asserted an adversary complaint, seeking to
determine the dischargeability of debt and declare certain debt
as non-dischargeable, pursuant to Section 523 of the Bankruptcy
Code and Rules 4007 and 7001 of the Federal Rules of Bankruptcy
Procedure, against Debtor Capital Title Group, Inc., and certain
other defendants.
Mr. Blue, a member of California-based Amigo Management, LLC,
executed a promissory note in San Diego, California, with Maria
A. De Leon. The promissory note obligated Ms. De Leon to make
payments to Mr. Blue in the principle amount of $25,000. The
note is secured by a second deed of trust to certain real
property in County of San Diego, in California, known as 127 San
Jacinto Drive. The Deed of Trust established Ms. De Leon as the
trustor, Gateway Title Company as the trustee, and Mr. Blue,
through his company Amigo Management, LLC, as the beneficiary.
Ms. De Leon granted Mr. Blue the power to sell the Property.
Ms. De Leon defaulted on the promissory note in March 2007. Mr.
Blue subsequently retained Capital Title Group to act as trustee
with respect to the Property.
Capital Title Group then served on Ms. De Leon a Notice of
Default, which listed the incorrect principal amount as the
amount required to redeem the promissory note. The Default
Notice was subsequently rescinded. Capital Title served another
Default Notice on March 23, 2007, but that Notice again listed an
incorrect principal amount as the amount required to redeem the
promissory note.
Capital Title then issued a document entitled Assignment of Deed
of Trust, purporting to assign Mr. Blue's interests in the
Property to Deutsche Bank National Trust Company, as Trustee for
Carrington Mortgage Loan, Series 2005-NC2 Asset Backed Pass
Through Certificates. The Assignment of Deed of Trust named an
entity called New Century Mortgage Corporation as the new
beneficiary of the Property. The Deed Assignment was signed by
Frank Mercado, Jr., an officer of New Century Mortgage.
Mr. Blue contends that he did not consent to Deed Assignment. He
maintains at Capital Title did not contact him to obtain his
consent on the assignment of his interests in the Property to
Deutsche Bank. Mr. Blue adds that (1) he was never provided
notice of the Deed Assignment, and (2) he did not receive payment
in any form from Deutsche Bank or the Defendants with respect to
the Deed Assignment. Mr. Blue believes the Defendants received
certain consideration for the Deutsche Bank Deed Assignment.
Mr. Blue, through his company Amigo Management and as beneficiary
under the Deed of Trust, initiated a non-judicial foreclosure
under California law. As a result of the non-judicial
foreclosure sale, Mr. Blue obtained title to the Property. As a
result of Capital Title's willful violation of California law,
Ms. De Leon commenced an action on September 30, 2008, in the
Superior Court of San Diego, Case No. 2008-00092851-CU-BC-CTL,
naming Mr. Blue as defendant. The San Diego State Court Action
seek to set aside the foreclosure sale on the basis of fraud,
alleging (i) that the Notices of Default were invalid due to
material misstatements as to the redemption and reinstatement
amounts, and (ii) that Mr. Blue did not have standing to
foreclose on the Property because he assigned his interests in
the Property to Deutsche Bank.
Mr. Blue notes that Capital Title has not rescinded the Deed
Assignment, thereby impairing his title to the Property. He
complains that as a direct result of Capital Title's conduct, he
has been sued and forced to retain legal counsel.
Mr. Blue says he has not ascertained the true names and
capacities of the other defendants in his Adversary Complaint
against Capital Title and thus, sues those Defendants under
fictitious names, Does 1-10. He intends to amend his Complaint
to allege the Other Defendants' true names and capacities as soon
as available. Mr. Blue alleges that the Doe Defendants are
responsible in some manner for the occurrences alleged in his
Complaint.
Pursuant to his Adversary Complaint, Mr. Blue asks the Court to:
(a) establish Capital Title's liability, including attorneys'
fees and costs incurred in the De Leon Action and in
filing Mr. Blue's Adversary Complaint;
(b) declare that Capital Title's liability to Mr. Blue is
Non-dischargeable pursuant to Section 523(a)(4) of the
Bankruptcy Code; and
(c) award him punitive damages in an amount to be proven at
trial and in a sum of no less than $50,000.
About LandAmerica Financial
LandAmerica Financial Group, Inc., provides real estate
transaction services with offices nationwide and a vast network of
active agents. LandAmerica and its affiliates operate through
approximately 700 offices and a network of more than 10,000 active
agents throughout the world, including Mexico, Canada, the
Caribbean, Latin America, Europe, and Asia.
LandAmerica Financial Group and its affiliate LandAmerica 1031
Exchange Services, Inc. filed for Chapter 11 protection Nov. 26,
2008 (Bankr. E.D. Va. Lead Case No. 08-35994). Attorneys at
Willkie Farr & Gallagher LLP and McGuireWoods LLP serve as co-
counsel. Zolfo Cooper is the restructuring advisor. Epiq
Bankruptcy Solutions serves as claims and notice agent.
Attorneys at Akin Gump Strauss Hauer & Feld LLP and Tavenner &
Beran, PLC, serve as counsel to the Creditors Committee of 1031
Exchange. Bingham McCutchen LLP and LeClair Ryan serve as counsel
to the Creditors Committee of LFG.
In its bankruptcy petition, LFG listed total assets of
$3,325,100,000, and total debts of $2,839,800,000 as of Sept. 30,
2008.
On March 6, 2009, affiliate LandAmerica Assessment Corporation,
aka National Assessment Corporation, filed its own petition for
Chapter 11 relief. Affiliate LandAmerica Title Company filed for
for Chapter 11 relief on March 27, 2009. LandAmerica Credit
Services, Inc., filed for Chapter 11 in July 2009.
Bankruptcy Creditors' Service, Inc., publishes LandAmerica
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by LandAmerica Financial and its affiliate LandAmerica
1031 Exchange Services, Inc. (http://bankrupt.com/newsstand/or
215/945-7000)
LANDAMERICA FIN'L: Sues Lehr Properties to Stay Suit
----------------------------------------------------
LandAmerica Financial Group, Inc., and LandAmerica 1031 Exchange
Services, Inc., initiated an adversary complaint for injunctive
relief against Lehr Properties, L.P., on November 19, 2009.
Under the Complaint, the Debtors seek to enjoin the prosecution
of a recent action initiated by Lehr or the commencement of any
action by Lehr unless Lehr takes the actions in accordance with a
"scheduling protocol order" issued by the Bankruptcy Court in
relation to several Section 1031 Exchange Adversary Complaints
filed by several parties in the Debtors' bankruptcy cases.
The Lehr Action referred under the Debtors' complaint is the
proceeding commenced by Lehr on July 1, 2009, in the Superior
Court of the State of California for the County of Los Angeles,
Case No. BC417004, naming, among other parties, Golden Escrow,
Inc., as a defendant. Golden Escrow is a wholly owned subsidiary
of County Title Holding Corporation, which in turn is a wholly
owned subsidiary of LFG. Under the Lehr Action, Lehr filed
charges against Golden Escrow for gross negligence, breach of
fiduciary duty, and constructive fraud. It centers on an alleged
transaction by which Lehr alleges that Golden Escrow referred
Lehr to LES to facilitate a like-kind exchange.
The Debtors note that Lehr has alleged that it transferred
$802,063 to LES to facilitate the like-kind exchange. But for
the deliberate omission of LES as a named defendant, the Debtors
argue, the Lehr Claims are indistinguishable from those that have
been raised in a number of other adversary proceedings filed
against LES in the Bankruptcy Court which, subject to the terms
of a Scheduling Protocol for Adversary Proceedings, have been
uniformly stayed.
The Debtors note that Lehr filed a proof of claim in LES'
bankruptcy case on April 2, 2009, asserting a general unsecured
claim of $802,063 for breach of an Exchange Agreement between
Lehr and LES.
The Debtors also inform the Court that LFG and Hartford Fire
Insurance Company are parties to an indemnity agreement, whereby
LFG agreed to indemnify and exonerate Hartford from any loss and
expense of whatever kind that Hartford may incur or sustain as a
result of or in connection with the furnishing of any bond on
behalf of LFG or its affiliates. The Debtors aver that Hartford
has furnished Bond No. 14 BSB EA6798 with the California
Department of Corporations on behalf of Golden Escrow. In this
light, LFG may be obligated to indemnify Hartford for any loss
sustained as a result of a claim by Lehr against the Bond, the
Debtors point out.
More importantly, the Debtors assert that allowing Lehr to
recover on its claims outside of a Bankruptcy Court-supervised
process will eviscerate the fundamental Bankruptcy Code policy of
requiring similarly situated creditors to be treated equally and
may result in a double recovery for Lehr.
About LandAmerica Financial
LandAmerica Financial Group, Inc., provides real estate
transaction services with offices nationwide and a vast network of
active agents. LandAmerica and its affiliates operate through
approximately 700 offices and a network of more than 10,000 active
agents throughout the world, including Mexico, Canada, the
Caribbean, Latin America, Europe, and Asia.
LandAmerica Financial Group and its affiliate LandAmerica 1031
Exchange Services, Inc. filed for Chapter 11 protection Nov. 26,
2008 (Bankr. E.D. Va. Lead Case No. 08-35994). Attorneys at
Willkie Farr & Gallagher LLP and McGuireWoods LLP serve as co-
counsel. Zolfo Cooper is the restructuring advisor. Epiq
Bankruptcy Solutions serves as claims and notice agent.
Attorneys at Akin Gump Strauss Hauer & Feld LLP and Tavenner &
Beran, PLC, serve as counsel to the Creditors Committee of 1031
Exchange. Bingham McCutchen LLP and LeClair Ryan serve as counsel
to the Creditors Committee of LFG.
In its bankruptcy petition, LFG listed total assets of
$3,325,100,000, and total debts of $2,839,800,000 as of Sept. 30,
2008.
On March 6, 2009, affiliate LandAmerica Assessment Corporation,
aka National Assessment Corporation, filed its own petition for
Chapter 11 relief. Affiliate LandAmerica Title Company filed for
for Chapter 11 relief on March 27, 2009. LandAmerica Credit
Services, Inc., filed for Chapter 11 in July 2009.
Bankruptcy Creditors' Service, Inc., publishes LandAmerica
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by LandAmerica Financial and its affiliate LandAmerica
1031 Exchange Services, Inc. (http://bankrupt.com/newsstand/or
215/945-7000)
LEAF BRANDS: Neil Reithinger Steps Down as CFO and COO
------------------------------------------------------
Leaf Brands Inc. said that Neil Reithinger resigned as the
company's chief financial officer and chief operating officer and
member of the board of directors, but will remain with the company
as a non-executive worker for 90 days under his agreement with the
company.
The board appointed David Tsiang as the company's CFO effective
January 7, 2010. He will receive an annual salary of $130,000,
and be granted 350,000 options to purchase common stock at an
exercise price of $0.63 per share.
Baywood International, Inc. changed its name effective October 16,
2009 to New Leaf Brands, Inc. to reflect the change in strategic
direction with the sale of Baywood's nutraceutical businesses on
October 9, 2009. The name change was effective in the market at
the open of business October 19, 2009, at which time the Company's
ticker symbol changed from BAYW.OB to NLEF.OB.
On July 24, 2009, the Company entered into an Asset Purchase
Agreement with Nutra, Inc., a subsidiary of Nutraceutical
International Corporation. The Company sold substantially all of
the rights and assets of Nutritional Specialties' business,
including but not limited to its accounts, notes and other
receivables, inventory, tangible assets, rights existing under
assigned purchase orders, proprietary rights, government licenses,
customer lists, records, goodwill and assumed contracts. Certain
rights and assets were excluded from the purchased assets,
including the right to market, sell and distribute beverages.
The Company's new planned strategic direction is to build a
beverage company around its New Leaf brand of ready-to-drink teas
and other new functional beverages. Even with limited access to
capital, the Company has grown the New Leaf brand. New Leaf
beverages are sold in 24 states, through 75 distributors and 14
well-known retailers in over 8,000 outlets. The Company sold
118,820 cases of iced tea in the third quarter of 2009, up over
54% from 77,124 cases in the third quarter of 2008. The Company
anticipates that, after its debts are repaid and renegotiated, it
will be able to raise capital to grow its New Leaf brand as well
as develop additional brands.
In exchange, Nutra, Inc. agreed to pay an aggregate purchase price
of $8,250,000 in cash, less payment of liabilities, a $250,000
retention and certain pre-closing working capital adjustments.
Pursuant to the Agreement, the assets of Nutritional Specialties
were evaluated at closing to see if they have a minimum net asset
value as of the closing date, after giving effect to normal
generally accepted accounting principles, adjustments for reserves
and except for routine reductions related to normal amortization
and depreciation, equal to $1,848,604. If the net asset value was
greater or less than $1,848,604 at the closing, the purchase price
payable at closing would be increased or decreased by the amount
of such difference on a dollar-for-dollar basis. At closing, the
net asset value was $2,176,411 and therefore the initial purchase
price of $8,250,000 was increased by $327,807. The asset sale
contemplated by the Agreement closed on October 9, 2009.
The Company is currently in default on notes that mature before
November 10, 2009. The Company said $1,364,219 of this debt was
paid in October 2009 and the Company intends to convert the
remaining debt into equity. In the subsequent period ended as of
November 10, 2009, the related party debt holders agreed to
convert an aggregate of $3,822,638 of debt and $492,704 of accrued
interest into an aggregate of 17,261,368 shares of common stock at
a conversion price of $0.25 per share. The effect of these
conversion will be a expense of roughly $7,060,000 based on the
intrinsic value of the company stock compared to the exercise
price. As of November 16, 2009, the shares have not yet been
issued.
LOCATION BASED: Posts $2.3 Million Net Loss in November 30 Quarter
------------------------------------------------------------------
Location Based Technologies, Inc., reported a net loss of
$2,312,682 on total net revenue of $53,300 for the three months
ended November 30, 2009, compared to a net loss of $3,092,177 on
no revenue for the comparable period ended November 30, 2008.
For the three months ended November 30, 2009, the Company reported
other expenses consisting of financing costs, amortization
expenses, interest expense and foreign currency gains totaling
$1,266,572 as compared to $1,861,170 for the three months ended
November 30, 2008. The decrease at November 30, 2009, is
primarily attributed to a decrease in stock based financing costs
paid to consultants providing capital raising services.
The decrease in net loss is primarily attributed to a decrease in
other expenses.
Balance Sheet
At November 30, 2009, the Company's consolidated balance sheets
showed $3,148,670 in total assets and $3,938,882 in total current
liabilities, resulting in a $790,212 shareholders' deficit.
The Company reported negative working capital of $3,393,316 at
November 30, 2009, as compared to negative working capital of
$2,074,994 at August 31, 2009.
A full-text copy of the Company's quarterly report on Form 10-Q is
available at no charge at http://researcharchives.com/t/s?4d8d
Going Concern Doubt
"The Company has incurred net losses since inception, and as of
November 30, 2009, had an accumulated deficit of $22,078,668.
These conditions raise substantial doubt as to the Company's
ability to continue as a going concern."
About Location Based Technologies
Headquartered in Irvine, Calif., Location Based Technologies, Inc.
(OTC BB: LBAS) designs, develops, and markets personal, pet,
personal property and vehicle locator devices and services.
LSP ENERGY: Moody's Junks Ratings on Cash Shortfall
---------------------------------------------------
Moody's Investors Service downgraded LSP Energy Limited
Partnership's rating on its senior secured bonds to Caa1 from B3.
The outlook remains negative.
The rating action reflects the Project's $3.6 million draw on its
debt service reserve to make its January 2010 debt service
payment. The recent draw follows on a $4 million draw in July
2009 and a $5.2 million draw in January 2009. Approximately
$3.7 million remains in the debt service reserve, which is
equivalent to approximately 1.4 months of debt service.
A major factor in the cash flow shortfall were outages incurred at
the Project. The Unit 3 steam turbine generator incurred a major
outage in 2009 due to a high level of cycling operations. The
estimated net cost to the project after insurance proceeds is
approximately $3 million for Unit 3. LSP Energy also had to spend
$1.9 million to resolve potentially similar outages occurring at
Unit 1.
The rating action also considers the Project's 2010 budget, which
forecasts insufficient cash flow to fully meet debt service. The
shortfall could potentially result in full utilization of the
remaining debt service reserve within the next year. The timing
of any draw is likely to be dependent on actual incurrence of
operating expenditures, the timing and level of receipt of
insurance proceeds tied to the 2009 outages and the Project's
ability to maintain strong operational performance.
The Caa1 rating currently considers expectations for meaningful
recovery in the event of a default given historical asset sales in
the region though significant uncertainty remains. Recovery based
solely on LSP's cash flows are likely to result in lower recovery
since the Project's offtake contracts mature in 2013 and 2016 and
net wholesale revenue is currently modest for gas fired generation
in the region.
The negative outlook reflects the significant potential for
default within the next year and uncertain recovery prospects.
The rating could be downgraded again if the Project were to
further utilize its debt service reserves or if recovery prospects
weaken.
LSP Energy Limited Partnership is a limited partnership that owns
and operates an 837 MW combined-cycle natural gas-fired electric
generating facility located in Batesville, Mississippi. LSP is
96% owned by Complete Energy Holdings, a privately held operator
of electric generation. Complete is headquartered in Houston,
Texas and is approximately 100% owned by individuals.
The last rating action on LSP occurred on November 14, 2008, when
the Project was downgraded to B3.
MARKET STREET: Has Until January 21 to File Schedules & Statement
-----------------------------------------------------------------
The Hon. Elizabeth W. Magner of the U.S. Bankruptcy Court for the
Eastern District of Louisiana extended until January 21, 2010,
Market Street Properties, LLC's time to file its schedules of
assets and liabilities and statement of financial affairs.
As reported in the Troubled Company Reporter on January 6, 2010,
the Debtor asked for a January 25 filing extension stating the it
needed additional time to gather together the necessary
information to complete its schedules and statement.
Oceanside, New York-based Market Street Properties, LLC, filed for
Chapter 11 bankruptcy protection on December 23, 2009 (Bankr. E.D.
La. Case No. 09-14172). Christopher T. Caplinger, Esq., who has
an office in New Orleans, Louisiana, 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.
MECHANICAL TECHNOLOGY: Inks Common Stock Deal With Counter Point
----------------------------------------------------------------
MTI MicroFuel Cells Inc., a majority-owned subsidiary of
Mechanical Technology, Incorporated, entered into a Common Stock
and Warrant Purchase Agreement with Counter Point Ventures Fund
II, L.P. Counter Point, a venture fund focused on investments in
high-technology companies, is co-owned by General Electric Company
and Dr. Walter L. Robb, a member of the Board of Directors of the
Company and MTI Micro, and is a current stockholder of MTI Micro.
Dr. Robb and Counter Point beneficially held approximately 29.5%
of the fully-diluted capital stock of MTI Micro immediately prior
to the First Closing described below, and now hold an aggregate of
approximately 30.7% of the fully-diluted capital stock of MTI
Micro after giving effect to the First Closing.
Pursuant to the Purchase Agreement, MTI Micro may issue and sell
to Counter Point up to 28,571,429 shares of common stock, par
value $0.01 per share, at a purchase price per share of $0.070,
over a period of 12 months, and warrants to purchase shares of
Micro Common Stock equal to 20% of the shares of Micro Common
Stock purchased under the Purchase Agreement at an exercise price
of $0.070 per share. The sale and issuance of the Micro Common
Stock and Warrants shall occur over multiple closings occurring
over two one month closing periods and five two-month closing
periods, the first Closing of which occurred on January 11, 2010
with MTI Micro raising $165,000 from the sale of 2,357,143 shares
of Micro Common Stock and Warrants to purchase 471,429 shares of
Micro Common Stock to Counter Point.
Subsequent Closings may occur thereafter at MTI Micro's sole
discretion during the Closing Periods upon delivery of written
notice by MTI Micro to Counter Point of its desire to consummate a
Closing, and Counter Point's acceptance of such offer under the
Purchase Agreement on the terms agreed upon with MTI Micro. In
the event the terms and conditions of the Purchase Agreement no
longer reflect current market conditions or otherwise following
the First Closing, either party may elect not to participate in a
Subsequent Closing(s) or the parties may amend the Purchase
Agreement on mutually agreeable terms with respect to such
Subsequent Closing(s).
The purchase price per share of the Micro Common Stock and the
exercise price of the Warrants are the same as the conversion
price of MTI Micro's bridge notes that were converted into Micro
Common Stock in December 2009, resulting in the conversion of an
aggregate of $3,910,510 of outstanding principal and accrued
interest under secured promissory notes issued by MTI Micro into
an aggregate of 55,864,425 shares of Micro Common Stock at a
conversion price of $0.070 per share.
If MTI Micro were to issue and sell the remainder of the
28,571,429 shares under the Purchase Agreement, the Company would
continue to hold an aggregate of 55.8% of the fully-diluted
capital stock of MTI Micro.
A full-text copy of the common stock warrant purchase agreement is
available for free at http://ResearchArchives.com/t/s?4d7c
A full-text copy of the common stock warrant is available for free
at http://ResearchArchives.com/t/s?4d7d
About Mechanical Technology
Headquartered in Albany, New York, Mechanical Technology
Incorporated, operates in two segments, the New Energy segment
which is conducted through MTI MicroFuel Cells Inc., a majority
owned subsidiary, and the Test and Measurement Instrumentation
segment, which is conducted through MTI Instruments, Inc., a
wholly owned subsidiary.
MTI Micro is developing Mobion(R) cord-free power packs to replace
current lithium-ion and similar rechargeable battery systems in
many handheld electronic devices for the military and consumer
markets. Mobion(R) power packs are based on direct methanol fuel
cell technology which has been recognized as enabling technology
for advanced portable power sources by the scientific community
and industry analysts. As the need for advancements in portable
power increases, MTI Micro is developing Mobion(R) cord-free
rechargeable power pack technology as a compelling solution for
powering the multi-billion dollar portable electronics market. As
of September 30, 2009, the Company owned approximately 97% of MTI
Micro's outstanding common stock.
* * *
Mechanical Technology and its subsidiaries reported a net loss of
$884,000 for the three months ended September 30, 2009, from a net
loss of $4,016,000 for the year ago period. The Company reported
a net loss of $2,572,000 for the nine months ended September 30,
2009, from a net loss of $10,481,000 for the year ago period.
At September 30, 2009, the Company had total assets of $4,329,000
against total liabilities of $4,991,000, resulting in
stockholders' deficit of $662,000.
The Company has incurred significant losses as it continued to
fund the direct methanol fuel cell product development and
commercialization programs of its majority owned subsidiary, MTI
Micro, and had a consolidated accumulated deficit of
$120.1 million and working capital deficit of $1.5 million at
September 30, 2009. Because of these losses, limited current cash
and cash equivalents, negative cash flows and accumulated deficit,
the report of the Company's independent registered public
accounting firm for the year ended December 31, 2008 expressed
substantial doubt about the Company's ability to continue as a
going concern.
MEDICURE INC: Posts C$176,000 Net Loss in November 30 Quarter
-------------------------------------------------------------
Medicure Inc. reported a net loss of C$176,219 on products sales
of C$977,297 for the three months ended November 30, 2009,
compared to a net loss of C$6,975,310 on product sales of
C$1,457,960 for the three months ended November 30, 2008.
The quarterly loss for the three month period ended November 30,
2009 is C$6,799,091 lower than the three month period ended
November 30, 2008, due to:
-- C$4,959,070 spread between 2010 Q2 foreign exchange gain of
C$1,080,967 and 2009 Q2 loss of C$3,878,103.
-- C$1,080,182 decrease in selling, general and administrative
expenses;
-- C$480,663 decrease in sales attributable to a decline in
wholesale sales offset by the price increase introduced
during 2009.
For the six months ended November 30, 2009, the Company reported a
net loss of C$2,085,778 on products sales of C$1,918,257, compared
to a net loss of C$9,983,911 on products sales of C$2,628,819 for
the six months ended November 30,2008.
Balance Sheet
At November 30, 2009, the Company's consolidated balance sheets
showed C$7,850,850 in total assets and C$29,399,351 in total
liabilities, resulting in a C$21,548,501 shareholders' deficit.
The Company's consolidated balance sheets at November 30, 2009,
also showed strained liquidity with C$2,228,058 in total current
assets available to pay C$5,088,212 in total current liabilities.
A full-text copy of the Company's interim consolidated financial
statements for the three and six months ended November 30, 2009,
is available for free at http://researcharchives.com/t/s?4d8f
Going Concern
These consolidated financial statements have been prepared on a
going concern basis in accordance with Canadian generally accepted
accounting principles.
"There is significant doubt about the appropriateness of the use
of the going concern assumption because the Company has
experienced operating losses and cash outflows from operations
since incorporation and has significant debt servicing
obligations. In addition, the Company has had to seek extensions
from its lender under its secured debt financing agreement dated
September 17, 2007, to defer required payments originally due
July 15 and October 15, 2009. Without these extensions the
Company would have been in default in respect to its long-term
debt. Upon an event of default, the lender could exercise its
security rights under the agreement.
The Company has experienced a loss of $2,085,778 and negative cash
flows from operations of $1,349,660 in the six months ending
November 30, 2009, and has accumulated a deficit of $150,635,078
as at November 30, 2009."
"The Company is also in discussions with its senior lender to
restructure its debt. Based on the Company's operating plan, its
existing working capital is not sufficient to fund its planned
operations, capital requirements, debt servicing obligations, and
commitments through the end of the fiscal 2010 year without
restructuring of its debt and raising additional capital. No
agreements with the lender or other potential lenders or investors
have been reached yet and there can be no assurance that such
agreements will be reached. Further, the Company's financing
agreement includes certain restrictive covenants on commercial and
developmental products including intellectual property. The
ability of the Company to execute on its operating plan is likely
to be contingent on having collaborative relationships with its
lender. If the Company is unable to restructure its debt,
complete other strategic alternatives, and/or secure additional
funds, the Company will have to consider additional strategic
alternatives which may include, among other strategies, asset
divestitures, monetization of certain intangibles, and/or the
winding up, dissolution or liquidation of the Company."
About Medicure Inc.
Based in Manitoba, Canada, Medicure Inc. (TSX: MPH) --
http://www.medicure.com/-- is a biopharmaceutical company engaged
in the research and development and commercialization of human
therapeutics. The Company has the U.S. rights to the commercial
product, AGGRASTAT(R) Injection (tirofiban hydrochloride) in the
United States and its territories (Puerto Rico, U.S. Virgin
Islands, and Guam). AGGRASTAT(R), a glycoprotein GP IIb/IIIa
receptor antagonist, is used for the treatment of acute coronary
syndrome (ACS) including unstable angina, which is characterized
by chest pain when one is at rest, and non-Q-wave myocardial
infarction.
MEGA BRAND: Recapitalization Won't Affect Moody's 'Ca' Rating
-------------------------------------------------------------
Moody's commented that Mega Brand's proposed recapitalization,
which will repay the secured lenders at 70 cents on the dollar
(including the cash and equity portions) and extinguish all of the
current debt does not affect the current Ca CFR or Caa3 Secured
debt ratings.
Should the transaction close Moody's would assign a "D" rating to
the rated debt instruments and subsequently withdraw the ratings.
The last rating action for the company took place on April 17th
2009 when the CFR rating was lowered to Ca from Caa2.
MEGA Brands manufactures and markets a broad line of toys and
stationery and activities products. It is based in Montreal,
Canada and had sales of $333 million in as of LTM September 2009.
MERIDIAN RESOURCE: Inks Compromise & Settlement Deal With Shell
---------------------------------------------------------------
The Meridian Resource Corporation and Shell Oil Company entered
into a Compromise and Settlement Agreement regarding the Shell
indemnity claims under the two acquisition agreements related to
the fields.
Under the terms of the Settlement Agreement, the Company will
a) make a cash payment to Shell of $5 million in five annual
payments of $1 million each, the first $1 million payment
being payable upon the earlier of April 1, 2010 or the
closing of a sale of the assets or equity interest in the
Company to a third party dated as of December 22, 2009,
among the Company, Alta Mesa Holdings, LP and Alta Mesa
Acquisition Sub, LLC qualifies as such a sale transaction),
with subsequent annual installments of $1 million to be made
on January 4 of each of the following four years;
b) convey to Shell certain acreage in Terrebonne Parish,
Louisiana, which acreage is nonproducing and which has no
Company oil or gas reserves associated with it;
c) plug and abandon certain wells and remediate certain acreage
located in Louisiana in due course; and
d) release Shell from indemnity claims under the two
acquisition agreements related to the fields.
In consideration for the foregoing, Shell agreed to release the
Company from any indemnity claim arising from any current or
historical claim against Shell, and to release Meridian's
indemnity obligation with respect to any future claim on all but a
small subset of the properties acquired pursuant to the
acquisition agreements related to the fields. The releases of
claims become effective upon the initial $1 million cash payment
to Shell and the conveyance to Shell of the Terrebonne Parish
acreage, which are expected to occur at the closing of the Merger.
About Meridian Resource
Based in Houston, Texas, The Meridian Resource Corporation
(NYSE:TMR) -- http://www.tmrc.com/-- is an independent oil and
natural gas company engaged in the exploration, exploitation,
acquisition and development of oil and natural gas in Louisiana,
Texas, and the Gulf of Mexico. Meridian has access to an
extensive inventory of seismic data and, among independent
producers, is a leader in using 3-D seismic and other technologies
to analyze prospects, define risk, target and complete high-
potential wells for exploration and development. Meridian has a
field office in Weeks Island, Louisiana.
At September 30, 2009, the Company had $190,339,000 in total
assets, including $18,090,000 in total current assets, against
$120,634,000 in total current liabilities and $17,736,000 in asset
retirement obligations.
The Company noted that its default under the debt agreements,
which has been mitigated in the short term by certain forbearance
agreements, negatively impacts future cash flow and the Company's
access to credit or other forms of capital. There is substantial
doubt as to the Company's ability to continue as a going concern
for a period longer than the next 12 months, the Company said.
It added that it might have to seek protection under federal
bankruptcy laws if it is unable to comply with the forbearance
agreements or if those agreements expire.
MOODY'S CORP: To Release Q4 and Full-Year 2009 Results on Feb. 4
----------------------------------------------------------------
Moody's Corporation will release fourth quarter and full-year 2009
results before the start of NYSE trading on February 4, 2010. A
copy of the release will be posted on Moody's Shareholder
Relations Web site, http://ir.moodys.com
Moody's will hold a teleconference on February 4, 2010, at 11:30
a.m. Eastern Time to discuss its fourth quarter and full-year 2009
results. Raymond W. McDaniel, Jr., Chairman and Chief Executive
Officer of Moody's Corporation and Linda S. Huber, Executive Vice
President and Chief Financial Officer of Moody's Corporation, will
jointly host the call. Their remarks will be followed by a
question and answer period.
Individuals within the United States and Canada can access the
call by dialing 1-800-289-0722. Other callers should dial +1-913-
905-3198. Please dial in to the call by 11:20 a.m. Eastern Time.
The passcode for the call is "Moody's Corporation."
The teleconference will also be webcast with an accompanying slide
presentation and can be accessed through Moody's Shareholder
Relations website, http://ir.moodys.comunder "Featured Events",
until midnight Eastern Time, February 28, 2010.
A replay of the teleconference will be available from 4:00 p.m.
Eastern Time, February 4, 2010, until midnight Eastern Time,
February 28, 2010. The replay can be accessed from within the
United States and Canada by dialing 1-888-203-1112. Other callers
can access the replay at +1-719-457-0820. The replay confirmation
code is 2814160.
About Moody's
Based in New York, Moody's Corporation (NYSE: MCO) --
http://www.moodys.com/-- is the parent company of Moody's
Investors Service, which provides credit ratings and research
covering debt instruments and securities, and Moody's Analytics,
which encompasses the growing array of Moody's non-ratings
businesses including risk management software for financial
institutions, quantitative credit analysis tools, economic
research and data services, data and analytical tools for the
structured finance market, and training and other professional
services. Moody's Corp., which reported revenue of $1.8 billion
in 2008, employs approximately 4,000 people worldwide and
maintains a presence in 27 countries.
As of September 30, 2009, the Company had total assets of
$1,874,200,000 against total liabilities of $2,521,700,000. As of
September 30, 2009, the Company had non-controlling interests of
$9,400,000 and shareholders' deficit of $647,500,000. The
September 30 balance sheet showed strained liquidity: The Company
had total current assets of $896,500,000 against total current
liabilities of $1,202,300,000.
MORRIS PUBLISHIBNG: Files Chapter 11 with Plan
----------------------------------------------
With the support of an overwhelming majority of its bondholders,
Morris Publishing Group today filed a plan in U.S. Bankruptcy
Court for the Southern District of Georgia in Augusta to complete
the restructuring of its debt.
Morris has asked the Court to approve a plan that will reduce
bondholder debt through the issuance of $100 million of new second
lien secured notes due in 2014 in exchange for the cancellation of
approximately $278.5 million principal amount of outstanding
senior subordinated notes due 2013 plus accrued interest.
Holders of approximately 93 percent of the existing notes voted to
support the filing of a prepackaged reorganization plan in
bankruptcy court.
"This filing is the final step in the financial restructuring we
announced last fall,'' said William S. Morris III, chairman of
Morris Publishing Group. "We are pleased that so many of our
noteholders agreed to support this move to get Morris Publishing
on more solid financial ground.''
Under the prepackaged plan, Morris Publishing will reduce its
overall indebtedness from approximately $415 million to $126.5
million. The new notes will bear interest of at least 10 percent,
but could bear interest up to 15 percent, some of which may be
paid in-kind until Morris Publishing repays its remaining senior
debt. The company reduced its senior indebtedness by $110 million
last fall.
Morris Publishing Group will continue to operate its 13 daily
newspapers, its non-daily newspapers, its websites, city magazines
and free community newspapers without interruption. Readers and
advertisers should notice no change in operations. All
obligations to employees and vendors will be met in full.
About Morris Publishing
Morris Publishing Group, LLC -- http://www.morrisrestructures.com/
and http://www.morris.com/-- is a privately held media company
based in Augusta, Georgia. Morris Publishing currently owns and
operates 13 daily newspapers as well as nondaily newspapers, city
magazines and free community publications in the Southeast,
Midwest, Southwest and Alaska.
Morris Publishing Group LLC filed for Chapter 11 on Jan. 19, 2010
(Bankr. S.D. Ga. Case No. 10-10134). Neal, Gerber & Eisenberg LLP
serves as counsel. Kurtzman Carson Consultants LLC serves as
claims and notice agent. The petition says assets and debts are
$100 million to $500 million.
MORRIS PUBLISHING: Gets Court OK of Critical First-Day Motions
--------------------------------------------------------------
Morris Publishing Group disclosed that, as part of its financial
restructuring, the company has received Court approval to continue
business operations without interruption.
Judge John Dalis of the U.S. Bankruptcy Court in Augusta granted
critical "first-day" motions that allow the company to continue
paying wages and benefits to employees and to continue covering
both pre- and post-petition obligations to suppliers and
customers. The court also granted the company authority to
continue using its cash to fund its operating expenses.
"We are gratified that the Court approved these critical motions,
ensuring that our customers, employees and suppliers will see no
change in our business operations," said William S. Morris III,
chairman of Morris Publishing. "This allows us to complete the
final step in our debt restructuring without any noticeable impact
to our newspapers. Just as important it saves thousands of jobs
and enables us to continue to operate our business with the same
high standards we have for three generations."
The Court set a deadline of Feb. 10 for objections to the Plan and
Disclosure Statement, and scheduled a confirmation hearing on the
reorganization plan for Feb. 17.
Mark A. Berkoff, a partner with Morris Publishing's legal counsel
Neal, Gerber & Eisenberg LLP, said he expected the Morris
restructuring "will be one of the fastest newspaper
reorganizations in U.S. history."
With the overwhelming support of its bondholders, Morris
Publishing filed a prepackaged plan of reorganization on Tuesday.
The company is asking the Court to approve a plan that will reduce
bondholder debt through the issuance of $100 million of new second
lien secured notes due in 2014 in exchange for the cancellation of
approximately $278.5 million principal amount of outstanding
senior subordinated notes due 2013 plus accrued interest.
Holders of approximately 93 percent of the existing notes who
voted, voted to support the pre-packaged reorganization plan.
With its restructuring plan, Morris Publishing will reduce its
overall indebtedness from approximately $415 million to
$126.5 million.
About Morris Publishing
About Morris Publishing
Morris Publishing Group, LLC -- http://www.morrisrestructures.com/
and http://www.morris.com/-- is a privately held media company
based in Augusta, Georgia. Morris Publishing currently owns and
operates 13 daily newspapers as well as nondaily newspapers, city
magazines and free community publications in the Southeast,
Midwest, Southwest and Alaska.
Morris Publishing Group LLC filed for Chapter 11 on Jan. 19, 2010
(Bankr. S.D. Ga. Case No. 10-10134). Neal, Gerber & Eisenberg LLP
serves as counsel. Kurtzman Carson Consultants LLC serves as
claims and notice agent. The petition says assets and debts are
$100 million to $500 million.
NATIONAL HOME: To Close Three Stores by March 2010
--------------------------------------------------
The Associated Press, citing papers filing papers with the court,
reports that National Home Centers Inc. will close three stores in
Bentonville, Clarksville, and Little Rock, by end of March.
Based in Springdale, Arizona, National Home Centers provides
materials for the building industry. The company filed for
Chapter 11 bankruptcy when it failed to reach a deal with its
primary lender CIT Group. The company is now liquidating its west
Little Rock, Arizona, home center, and phasing out LBM in
Bentonville.
NORTHEAST BIOFUELS: Sunoco Hires ICM to Retrofit Ethanol Plant
--------------------------------------------------------------
Andrew Henderson at the Valley News reports that Sunoco Inc.
selected Kansas-based petroleum marketing firm ICM Inc. to
retrofit Northeast Biofuels' largest ethanol plant in Volney.
Sunoco acquired the facility in 2009 for $8.5 million in an
auction, Mr. Henderson notes.
About Northeast Biofuels
Northeast Biofuels, LP, is a limited partnership formed to
develop, own and operate an ethanol facility in Fulton, New York.
NEB is 100% owned by an intermediate holding company, NEB
Holdings, LP, which is in turn 85% owned by Permolex
International, L.P., and 15% by other project developers.
The Company and two of its affiliates filed for Chapter 11
protection on January 14, 2009 (Bankr. N.D. N.Y. Lead Case No.
09-30057). Jeffrey A. Dove, Esq., at Menter, Rudin & Trivelpiece,
P.C., represents the Debtors in their restructuring efforts.
Blank Rome LLP will serve as the Debtors' counsel. The U.S.
Trustee for Region 2 appointed creditors to serve on an Official
Committee of Unsecured Creditors. Sara C. Bond, Esq., and Stephen
A. Donato, Esq., Bond, Schoeneck & King, PLLC, represent the
Committee. When the Debtors filed for protection from their
creditors, they listed assets and debt between $100 million to
$500 million each.
NORTHEAST OHIO: Case Summary & 3 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: Northeast Ohio Properties, Inc.
911 East Touhy Avenue
Des Plaines, IL 60018
Bankruptcy Case No.: 10-40121
Chapter 11 Petition Date: January 14, 2010
Court: United States Bankruptcy Court
Northern District of Ohio (Youngstown)
Judge: Kay Woods
Debtor's Counsel: Richard G. Zellers, Esq.
Richard G. Zellers & Associates
3810 Starrs Centre Dr
Canfield, OH 44406
Tel: (330) 702-0780
Fax: (330) 702-0788
Email: zellersesq@cs.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/ohnb10-40121.pdf
The petition was signed by Shaukat M. Sindhu, vice president of
the Company.
OCEAN SMART: Poss $266,000 Net Loss in First Quarter Ended Nov. 30
------------------------------------------------------------------
Ocean Smart, Inc., reported a net loss of $265,885 on revenue of
$573,088 for the three months ended November 30, 2009, compared to
a net loss of $364,946 on revenue of $577,105 for the three months
ended November 30, 2008.
Gross profit for the three months ended November 30, 2009, as
compared to gross loss of roughly $63,000 for the three months
ended November 30, 2008.
Operating expenses for the three months ended November 30, 2009,
were approximately $296,000. Operating expenses were
approximately $273,000 for the three months ended November 30,
2008.
Interest expense for the three months ended November 30, 2009, was
approximately $18,000. Interest expense for the three months
ended November 30, 2008, was approximately $11,000. Other income
for the three months ended November 30, 2009, was roughly $2,000
as opposed to other expense of nil for the three months ended
November 30, 2008.
Balance Sheet
At November 30, 2009, the Company's consolidated balance sheets
showed total assets of $5,236,438, total liabilities of
$2,414,531, and total stockholders' equity of $2,821,907.
The Company's consolidated balance sheets at November 30, 2009,
also showed strained liquidity with $826,636 in total current
assets available to pay $1,798,975 in total current liabilities.
A full-text copy of the Company's quarterly report is available at
no charge at http://researcharchives.com/t/s?4d8b
Going Concern Doubt
As reported in the Troubled Company Reporter on January 4, 2010,
LBB & Associates Ltd., LLP, in Houston, 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 August 31, 2009, and 2008. The
independent public accounting firm pointed to the Company's
absence of significant revenues, recurring losses from operations,
and its need for additional financing in order to fund its
projected loss in 2010.
As of November 30, 2009, the Company had a cash balance of
approximately $17,800 and an accumulated deficit of approximately
$25,300,000 including a net loss of roughly $266,000 for the first
three months of the 2010 fiscal year.
About Ocean Smart
Based in Gaithersburg, Maryland, Ocean Smart, Inc. (OTC BB: OCSM)
through its subsidiary, Island Scallops Ltd., engages in farming,
processing, and marketing marine species, such as scallops and
sablefish. The Company's primary product is farmed 'Qualicum
Beach Scallop' for sale throughout North America. The Company was
formerly known as Edgewater Foods International, Inc. and changed
its name to Ocean Smart, Inc., in 2009.
PACIFIC ENERGY: Court OKs Sale of Beta Interests and SPBP Stock
---------------------------------------------------------------
The Hon. Kevin J. Carey of the U.S. Bankruptcy Court for the
District of Delaware approved the asset sale of Beta Operating
Company, LLC, a debtor-affiliate of Pacific Energy Resources Ltd.,
to Rise Energy Beta, LLC and SP beta Properties, LLC.
Pursuant to the Section 363 of the Bankruptcy Code, PERL agreed to
sell to Rise the operating interests; and to the successful
bidders in their buyer percentages the Beta interests and the SPBP
stock.
The purchase and sale agreement provides for:
(i-a) a credit bid by Rise of $80.0 million of the seller
indebtedness owing to Rise as of the closing date in
consideration of the acquisition by Rise of its buyer
percentage of the Beta interests and the SPBP stock and
100% of the operating assets; and
(i-b) a credit bid by Silver Point through the assumption on
the closing date by Silver Point of $177.5 million of the
seller indebtedness plus the balance of the revolving
facility comprising a portion of the DIP credit agreement
(but not to exceed $22 million) owed to Silver Point or
Silver Point's affiliates in consideration of the
acquisition by Silver Point of its buyer percentage of
the Beta interests and the SPBP stock.
(ii) the successful bidders' assumption of buyer percentages
of assumed Beta liabilities and the assumed operating
liabilities;
(iii) the extinguishment of any seller indebtedness that is not
otherwise part of the credit bid amount or the assumed
secured debt; and
(iv) the successful bidders' agreement to fund, for the
benefit of the Debtors' estates on the closing date of
the sale, the total amount of $11.9 million in accordance
with the wind-down budget.
About Pacific Energy
Headquartered in Long Beach, California, Pacific Energy Resources
Ltd. -- http://www.pacenergy.com/-- engages in the acquisition
and development of oil and gas properties, primarily in the United
States. The Company and seven of its affiliates filed for
Chapter 11 protection on March 8, 2009 (Bankr. D. Del. Lead Case
No. 09-10785). Attorneys at Pachulski Stang Ziehl & Jones LLP,
represent the Debtors as counsel. The Debtors proposed Rutan &
Tucker LLP as special corporation and litigation counsel;
Schully, Roberts, Slattery & Marino, PLC, as special oil and gas
and transactional counsel; Devlin Jensen as special Canadian
counsel; Scott W. Winn, at Zolfo Cooper Management, LLC, as chief
restructuring officer; Lazard Freres & Co. LLC as investment
banker; and Albrecht & Associates, Inc., as agent for the Debtors
in the sale of their oil and gas properties. Omni Management
Group, LLC, is the claims, balloting, notice and administrative
agent for the Debtors. When the Debtors filed for protection from
their creditors, they listed between $100 million and
$500 million each in assets and debts.
PACIFIC ENERGY: Court Dismisses San Pedro Bay's Chapter 11 Case
---------------------------------------------------------------
The Hon. Kevin J. Carey of U.S. Bankruptcy Court for the District
of Delaware approved the dismissal of the Chapter 11 case of San
Pedro Bay Pipeline Company, a debtor-affiliate of Pacific Energy
Resources Ltd.
The Court said that San Pedro Bay's case will be dismissed upon
the closing of the sale of its stock.
Headquartered in Long Beach, California, Pacific Energy Resources
Ltd. -- http://www.pacenergy.com/-- engages in the acquisition
and development of oil and gas properties, primarily in the United
States. The Company and seven of its affiliates filed for
Chapter 11 protection on March 8, 2009 (Bankr. D. Del. Lead Case
No. 09-10785). Attorneys at Pachulski Stang Ziehl & Jones LLP,
represent the Debtors as counsel. The Debtors proposed Rutan &
Tucker LLP as special corporation and litigation counsel;
Schully, Roberts, Slattery & Marino, PLC, as special oil and gas
and transactional counsel; Devlin Jensen as special Canadian
counsel; Scott W. Winn, at Zolfo Cooper Management, LLC, as chief
restructuring officer; Lazard Freres & Co. LLC as investment
banker; and Albrecht & Associates, Inc., as agent for the Debtors
in the sale of their oil and gas properties. Omni Management
Group, LLC, is the claims, balloting, notice and administrative
agent for the Debtors. When the Debtors filed for protection from
their creditors, they listed between $100 million and
$500 million each in assets and debts.
PALM BEACH: Files Amended List of Largest Unsecured Creditors
-------------------------------------------------------------
Palm Beach Finance II, L.P., filed with the U.S. Bankruptcy Court
for the Southern District of Florida an amended list of its
largest unsecured creditors.
A full-text copy of the amended list of largest unsecured
creditors is available for free at:
http://bankrupt.com/misc/PalmBeach_AmendedListofUnsecCreditors.pdf
Palm Beach Gardens, Florida-based Palm Beach Finance II, L.P.,
filed for Chapter 11 bankruptcy protection on November 30, 2009
(Bankr. S.D. Fla. Case No. 09-36396). The Debtor's affiliate,
Palm Beach Finance Partners, L.P., also filed for bankruptcy.
Paul A. Avron, Esq., and Paul Steven Singerman, Esq., who have
offices in Miami, Florida, assist the Debtors in their
restructuring efforts. Palm Beach Finance II listed $500,000,001
to $1,000,000,000 in assets and $500,000,001 to $1,000,000,000 in
liabilities.
PALM BEACH: Files Schedules of Assets and Liabilities
-----------------------------------------------------
Palm Beach Finance II, L.P., filed with the U.S. Bankruptcy Court
for the Southern District of Florida its schedules of assets and
liabilities, disclosing:
Name of Schedule Assets Liabilities
---------------- ----------- -----------
A. Real Property $0
B. Personal Property $867,561,000
C. Property Claimed as
Exempt
D. Creditors Holding
Secured Claims $0
E. Creditors Holding
Unsecured Priority
Claims $0
F. Creditors Holding
Unsecured Non-priority
Claims $769,389,349
----------- -----------
TOTAL $867,561,000 $769,389,349
Palm Beach Gardens, Florida-based Palm Beach Finance II, L.P.,
filed for Chapter 11 bankruptcy protection on November 30, 2009
(Bankr. S.D. Fla. Case No. 09-36396). The Debtor's affiliate,
Palm Beach Finance Partners, L.P., also filed for bankruptcy.
Paul A. Avron, Esq., and Paul Steven Singerman, Esq., who have
offices in Miami, Florida, assist the Debtors in their
restructuring efforts. Palm Beach Finance II listed $500,000,001
to $1,000,000,000 in assets and $500,000,001 to $1,000,000,000 in
liabilities.
PARADISE SOUTH: Case Summary & 14 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: Paradise South Mortuary Services, LLC
dba Paradise South Casket Company
dba Paradise South Casket Company, Inc.
6868 North Loop East, Suite 304
Houston, TX 77028
Bankruptcy Case No.: 10-30465
Chapter 11 Petition Date: January 18, 2010
Court: United States Bankruptcy Court
Southern District of Texas (Houston)
Judge: Karen K. Brown
Debtor's Counsel: William Kyle Vaughn, Esq.
Lapus Greiner Lai Corsini
5800 Ranchester Drive
Houston, TX 77036
Tel: (713) 988-5666
Email: kvaughn@lglcus.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $500,001 to $1,000,000
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/txsb10-30465.pdf
The petition was signed by Julius J. Larry III, chief executive
officer of the Company.
PARLUX FRAGRANCES: Reports 3% Increase Net Sales in Third Quarter
-----------------------------------------------------------------
Parlux Fragrances Inc. reported that its unaudited net sales for
the quarter ended Dec. 31, 2009 were estimated to be
$48.5 million, a 3% increase over $47.3 million reported for the
same period of the prior year, while net sales results for the
nine months ended Dec. 31, 2009, were estimated at $128.6 million,
compared to $123.0 million for the comparable prior year period,
an increase of approximately 5% over the prior year.
These sales figures exclude approximately $3.5 million of GUESS?
inventory that was sold at cost during the current quarter to
Coty, Inc., the new GUESS? fragrance licensee. Including the
sales to Coty, net sales increased by 10% to $52.0 and 7% to
$132.1 for the quarter and nine months ended Dec. 31, 2009,
respectively.
Mr. Neil J. Katz, Chairman and CEO, noted, "In this difficult
economy the U.S. prestige fragrance industry continued to
struggle; however, we did see positive trends in the international
and mass market channels. Despite the difficult marketplace, we
continued to introduce our new brands while controlling expenses.
Although our sales increase was not as high as expected, I am
pleased that our sales grew versus last year, and were much
stronger than the trends in the fragrance category."
Mr. Katz continued, "We were also able to sell our GUESS? finished
goods inventory to our customers and Coty, and continue to
negotiate the transfer of our remaining unfinished inventory to
Coty. Although not yet finalized, we expect to record some
charges for certain GUESS? promotional items and other unfinished
inventory. In addition, efforts were made this quarter to
significantly reduce inventory levels of certain legacy brands,
which licenses are scheduled to expire in the near future."
Mr. Katz added, "Despite the expiration of the GUESS? license, we
remain optimistic that our new brands and product launches in the
upcoming year will provide a platform for growth and positive
results."
The Company anticipates reporting its earnings for the three and
nine months ended Dec. 31, 2009, during the second week of
February 2010, followed by the Company's quarterly investor
conference call.
About Parlux Fragrances
Parlux Fragrances, Inc. (NASDAQ:PARL) -- http://www.parlux.com/--
is a manufacturer and international distributor of prestige
products. It holds licenses for Paris Hilton, Jessica Simpson,
GUESS?, Nicole Miller, Josie Natori, Queen Latifah, Marc Ecko,
Rihanna, Kanye West, XOXO, Ocean Pacific (OP), Andy Roddick,
babyGund, and Fred Hayman Beverly Hills designer fragrances, as
well as Paris Hilton watches, cosmetics, sunglasses, handbags and
other small leather accessories.
As of September 30, 2009, the Company's consolidated balance
sheets showed $148.4 million in total assets, $36.0 million in
total liabilities, and $112.4 million in total shareholders'
equity.
Extension of Forbearance Period
As reported in the Troubled Company Reporter on November 3, 2009,
the Company signed a Second Amendment to Loan Agreement and
Amendment to Forbearance Agreement with Regions Bank extending the
forbearance period through February 15, 2010, and calling for the
Company to repay the remaining loan balance over the course of the
extension period.
PETER PIETRANGELO: Updated Chapter 11 Case Summary
--------------------------------------------------
Debtor: Peter B. Pietrangelo
1668 Peachtree Lane
Warrington, PA 18976
Bankruptcy Case No.: 10-10256
Chapter 11 Petition Date: January 13, 2010
Court: United States Bankruptcy Court
Eastern District of Pennsylvania (Philadelphia)
Judge: Bruce I. Fox
Debtor's Counsel: Jeffrey S. Cianciulli, Esq.
Weir & Partners LLP
1339 Chestnut Street, Suite 500
Philadelphia, PA 19107
Tel: (215) 665-8181
Email: jcianciulli@weirpartners.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 4 largest unsecured creditors is available
for free at:
http://bankrupt.com/misc/paeb10-10256.pdf
The petition was signed by Mr. Pietrangelo.
PORT HOSPITALITY: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Port Hospitality, LLC
dba Baymont Inn and Suites
18201 Shelburne Rd
Shaker Heights, OH 44118
Bankruptcy Case No.: 10-10297
Chapter 11 Petition Date: January 15, 2010
Court: United States Bankruptcy Court
Northern District of Ohio (Cleveland)
Judge: Pat E. Morgenstern-Clarren
Debtor's Counsel: Lisa A. Meyer, Esq.
Dettelbach, Sicherman & Baumgart
1801 E. 9th St., #1100
Cleveland, OH 44114
Tel: (216)696-6000
Fax: (216) 696-3338
Email: lmeyer@dsb-law.com
Richard A. Baumgart, Esq.
Dettelbach, Sicherman & Baumgart
1100 AmTrust Bank Center
1801 East 9th Street
Cleveland, OH 44114-3169
Tel: (216) 696-6000
Fax: (216) 696-3338
Email: rbaumgart@dsb-law.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 $1,533,248,
and total debts of $4,603,696.
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/ohnb10-10297.pdf
The petition was signed by Thomas Nantell, managing member of the
Company.
PROTOSTAR LTD: U.S. Trustee Amends Members of Creditors Committee
-----------------------------------------------------------------
Roberta A. DeAngelis, Acting U.S. Trustee for Region 3, amended
the members of the official committee of unsecured creditors in
the Chapter 11 cases of ProtoStar Ltd., et al., to reflect the
resignation of Space Systems/Loral, Inc. from the Committee.
The Creditors Committee now consist of:
1. Philippine Long Distance Telephone Company
Attn: Florentino Mabasa, Jr.
Ramon Cojuangco Building
Makati Ave.
Makati City, Philippines
Fax: (632) 810-3803
2. ILS International Launch Services
Attn: Anne Lawrence/Phil Slack
1875 Explorer St., Suite 700
Reston, VA 20190
Tel: (571) 633-7417
Fax: (571) 633-7500
3. Integral Systems, Inc.
Attn: R. Miller Adams
6721 Columbia Gateway Drive
Columbia, MD 21046
Tel: (443) 539-5016
Fax: (410) 312-2980
4. Afro Asian Satellite Communications Mauritius Ltd.
Attn: Avnindra Mohan
St. James Court, Suite 308
St. Denis Street
Port Louis, Mauritius
Tel: (230) 211-6242
Fax: (230) 211-7489
Hamilton, HM EX, Bermuda-based ProtoStar Ltd. is a satellite
operator formed in 2005 to acquire, modify, launch and operate
high-power geostationary communication satellites for direct-to-
home satellite television and broadband internet access across the
Asia-Pacific region.
The Company and its affiliates filed for Chapter 11 on July 29,
2009 (Bankr. D. Del. Lead Case No. 09-12659). The Debtor selected
Pachulski Stang Ziehl & Jones LLP as Delaware counsel; Law Firm of
Appleby as their Bermuda counsel; UBS Securities LLC as financial
advisor & investment banker and Kurtzman Carson Consultants LLC as
claims and noticing agent. The Debtors have tapped UBS Securities
LLC as investment banker and financial advisor. In their
petition, the Debtors listed between US$100 million and
US$500 million each in assets and debts. As of December 31, 2008,
ProtoStar's consolidated financial statements, which include non-
debtor affiliates, showed total assets of US$463,000,000 against
debts of US$528,000,000.
QUEBECOR WORLD: Litigation Trust Files Over 1,600 Avoidance Suits
-----------------------------------------------------------------
NetDockets reports that over the past week, Eugene Davis, the
litigation trustee for the Quebecor World Litigation Trust, has
filed more than 1,600 adversary complaints instituting preference
actions against vendors and other parties-in-interest in the
bankruptcy cases of Quebecor World (USA) Inc. and its affiliates.
The Quebecor World Litigation Trust was established under the
Debtors' confirmed Plan of Reorganization for purposes of pursuing
certain claims that were contributed to the Trust under the plan.
Those contributed claims include preference actions, which are
transfers made by the debtor entities made for or on account of
antecedent debts in the 90 day period prior to their bankruptcy
filings. Under sections 547 and 550 of the Bankruptcy Code, those
transfers are deemed preferential and recoverable by the debtors'
estates unless a valid defense exists.
NetDockets says the adversary complaints that have been filed over
the past week -- and are continuing to be filed in significant
volume -- seek to recover payments made in the 90 days prior to
the July 21, 2009 bankruptcy filings on the account that such
payments were either preferential transfers pursuant to section
547, fraudulent conveyances pursuant to section 548, and/or
recoverable postpetition transactions (because they may have
cleared after the bankruptcy filings) pursuant to section 549.
The complaints, according to NetDockets, also seek disallowance of
any claims asserted by the defendants against the debtors pursuant
to section 502(d) of the Bankruptcy Code "until such time as
Defendant pays to Plaintiff an amount equal to the aggregate
amount of All Avoided Transfers, plus interest thereon and costs."
To the extent that any such claims have already been allowed
against the debtors, the complaints seek reconsideration and
disallowance pursuant to section 502(j). The complaints appear to
be essentially form complaints with an exhibit attached listing
the payments to the specific plaintiff that the litigation trustee
seeks to recover.
About Quebecor World
Based in Montreal, Quebec, Quebecor World Inc. (CA:IQW) --
http://www.quebecorworldinc.com/-- provides market solutions,
including marketing and advertising activities, well as print
solutions to retailers, branded goods companies, catalogers and to
publishers of magazines, books and other printed media. It has
127 printing and related facilities located in North America,
Europe, Latin America and Asia. In the United States, it has 82
facilities in 30 states, and is engaged in the printing of books,
magazines, directories, retail inserts, catalogs and direct mail.
The company has operations in Mexico, Brazil, Colombia, Chile,
Peru, Argentina, and the British Virgin Islands.
Ernst & Young, Inc., the monitor of Quebecor World Inc., and its
affiliates' reorganization proceedings under the Canadian
Companies' Creditors Arrangement Act, filed a petition under
Chapter 15 of the Bankruptcy Code before the U.S. Bankruptcy Court
for the Southern District of New York on September 30, 2008, on
behalf of QWI (Bankr. S.D.N.Y. Case No. 08-13814). The Chapter 15
case is before Judge James M. Peck. Kenneth P. Coleman, Esq., at
Allen & Overy LLP, in New York, serves as counsel to the Chapter
15 petitioner.
QWI and certain of its subsidiaries commenced the CCAA proceedings
before the Quebec Superior Court (Commercial Division) on
January 20, 2008. The following day, 53 of QWI's U.S.
subsidiaries, including Quebecor World (USA), Inc., filed
petitions under Chapter 11 of the U.S. Bankruptcy Code.
The Honorable Justice Robert Mongeon oversees the CCAA case.
Francois-David Pare, Esq., at Ogilvy Renault, LLP, represents the
Company in the CCAA case. Ernst & Young Inc. was appointed as
Monitor.
Quebecor World (USA) Inc., its U.S. subsidiary, along with other
U.S. affiliates, filed for Chapter 11 bankruptcy before the U.S.
Bankruptcy Court for the Southern District of New York (Lead Case
No. 08-10152). Anthony D. Boccanfuso, Esq., at Arnold & Porter
LLP, represents the Debtors in their restructuring efforts. The
Official Committee of Unsecured Creditors is represented by Akin
Gump Strauss Hauer & Feld LLP.
Based in Corby, Northamptonshire, Quebecor World PLC --
http://www.quebecorworldplc.com/-- is the U.K. subsidiary of
Quebecor World Inc. that specializes in web offset magazines,
catalogues and specialty print products for marketing and
advertising campaigns. The Company employs around 290 people.
Quebecor PLC was placed into administration with Ian Best and
David Duggins of Ernst & Young LLP appointed as joint
administrators effective January 28, 2008.
QWI is the only entity involved in the CCAA proceedings that is
not a Debtor in the Chapter 11 Cases.
As of June 30, 2008, Quebecor World's unaudited consolidated
balance sheet showed total assets of US$3,412,100,000 total
liabilities of US$4,326,500,000 preferred shares of US$62,000,000
and total shareholders' deficit of US$976,400,000.
On June 30, 2009, Judge Peck and the Honorable Judge Robert
Mongeon of the Quebec Superior Court of Justice, in a joint
hearing, approved the plan of compromise filed by Quebecor World
Inc. and its affiliates in their cases before the Canadian
Companies' Creditors Arrangement Act and the Chapter 11 plan of
reorganization filed by Quebecor World (USA), Inc., and its debtor
affiliates in the U.S. Bankruptcy Court.
On July 21, 2009, Quebecor World Inc. and its affiliated debtors
and debtors-in-possession emerged from protection under the
Companies' Creditors Arrangement Act in Canada and Chapter 11 of
the U.S. Bankruptcy Code. Quebecor World has said it will emerge
from bankruptcy as a reorganized new company to be called "Novink
Corp."
Bankruptcy Creditors' Service, Inc., publishes Quebecor World
Bankruptcy News. The newsletter tracks the parallel proceedings
undertaken by QWI and its affiliates under United States and
Canadian bankruptcy laws. (http://bankrupt.com/newsstand/or
215/945-7000)
RAMSEY HOLDINGS: Files Schedules of Assets and Liabilities
----------------------------------------------------------
Ramsey Holdings, Inc. 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 $0
B. Personal Property $308,271
C. Property Claimed as
Exempt
D. Creditors Holding
Secured Claims $73,554,000
E. Creditors Holding
Unsecured Priority
Claims $0
F. Creditors Holding
Unsecured Non-priority
Claims $32,077,688
----------- -----------
TOTAL $308,271 $105,631,688
Tulsa, Oklahoma-based Ramsey Holdings, Inc., filed for Chapter 11
bankruptcy protection on December 18, 2009 (Bankr. N.D. Okla. Case
No. 09-13998). The Company's affiliates -- Auto Crane Company;
Eskridge, Inc.; Ramsey Industries, Inc.; and Ramsey Winch Company
-- also filed for Chapter 11 bankruptcy protection. John D. Dale,
Esq., at Gable & Gotwals assists the Debtors in their
restructuring efforts. Ramsey Holdings listed $10,000,001 to
$50,000,000 in assets and $50,000,001 to $100,000,000 in
liabilities.
R.B.G. CORP: Voluntary Chapter 11 Case Summary
----------------------------------------------
Debtor: R.B.G. Corp.
2295 Airways Blvd
Memphis, TN 38114
Bankruptcy Case No.: 10-20410
Chapter 11 Petition Date: January 14, 2010
Court: United States Bankruptcy Court
Western District of Tennessee (Memphis)
Judge: Paulette J. Delk
Debtor's Counsel: Darryl W. Humphrey, Esq.
4646 Poplar Avenue, Suite 530
Memphis, TN 38117-4435
Tel: (901) 881-5107
Fax: (901) 761-4446
Email: ddagdm@bellsouth.net
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Company says it does not have unsecured creditors who are non
insiders when they filed their petition.
The petition was signed by Ricky Pitre, owner of the Company.
REGIS INSURANCE: A.M. Best Downgrades FSR to 'B-'
-------------------------------------------------
A.M. Best Co. has downgraded the financial strength rating to B-
(Fair) from B+ (Good) and issuer credit rating to "bb-" from
"bbb-" of Regis Insurance Company (Regis) (Wayne, PA). The
outlook for both ratings has been revised to negative from stable.
These rating actions reflect the recent disclosure of the lack of
financial flexibility at Regis' privately held parent, Tiber
Holding Corporation (Wilmington, DE), due to that organization's
high consolidated financial leverage, lack of access to additional
capital and other operating issues. Additionally, these rating
actions consider Regis' continued poor operating performance.
Regis' historically weak operating results largely reflect its
lack of premium scale, thus driving ongoing underwriting losses
through high expense ratios. Somewhat offsetting these negative
rating factors are Regis' conservative underwriting leverage and
niche market expertise in the small to mid-size commercial
segment. While underwriting results have largely been negative,
total return measures have generally been positive over a 10-year
period with consideration of capital gains. Positive rating
factors also include management's strong underwriting culture and
insistence upon proper pricing, reserving and terms and
conditions.
The rating outlook recognizes A.M. Best's concerns that management
will be challenged to achieve an efficient operating scale, the
failure of which will negatively impact the profitability of Regis
and its ability to grow surplus.
RELIANCE AVIATION: Files for Chapter 11 Bankruptcy
--------------------------------------------------
Paul Brinkmann at South Florida Business Journal reports that
Reliance Aviation - Fort Lauderdale made a voluntary filing under
Chapter 11, listing no assets and debts of $5.6 million.
The Company said it owes $4.2 million to Nationwide
Laboratories/Advanced Flight Concepts/Mark Ginsberg of Fort
Lauderdale; $400,000, Keith St. Clair; and $52,000, Banyan Air
Service, Mr. Brinkmann notes.
Susan Lasky of Wilton Manors represents the company, Mr. Brinkmann
says.
Reliance Aviation - Fort Lauderdale operates an aviation company.
RENEW ENERGY: Court Denies ALL Fuels' Plea to Reconsider Sale
-------------------------------------------------------------
Wisconsin Ag Connection says the U.S. Bankruptcy Court for the
Western District of Wisconsin denied ALL Fuels-Jefferson LLC's
plea to reconsider the sale of Renew Energy facilities in
Jefferson to Valero Energy. ALL Fuels argued that it topped
Valero's bid by $5 million at the December 11 auction.
Valero Energy offered $72 million for the company's assets, report
notes.
About Renew Energy
Headquartered in Jefferson, Wisconsin, Renew Energy LLC --
http://www.renewenergyllc.com/-- operates an ethanol plant
facility. The Company filed for Chapter 11 on January 30, 2009
(Bankr. W.D. Wis. Case No. 09-10491). Christopher Combest, Esq.,
at Quarles & Brady LLP, represents the Debtor in its restructuring
efforts. William T. Neary, the United States Trustee for Region
11, appointed five creditors to serve on an Official Committee of
Unsecured Creditors. The Debtor disclosed $188,953,970 in total
assets and $194,410,573 in total debts.
RENEW ENERGY: Valero Energy Given Green Light for Plant Purchase
----------------------------------------------------------------
Bill Rochelle at Bloomberg News reports that Renew Energy LLC won
approval from the Bankruptcy Court to sell its ethanol plant to
Valero Energy Corp. for $72 million cash. The sale of the 110
million gallon-a-year ethanol refinery to San Antonio-based Valero
was approved December 17. All Fuels & Energy Co. filed a motion
on Dec. 22, contending it made the best offer at the Dec. 11
auction. The motion, however, was denied.
About Renew Energy
Headquartered in Jefferson, Wisconsin, Renew Energy LLC --
http://www.renewenergyllc.com/-- operates an ethanol plant
facility. The Company filed for Chapter 11 on January 30, 2009
(Bankr. W.D. Wis. Case No. 09-10491). Christopher Combest, Esq.,
at Quarles & Brady LLP, represents the Debtor in its restructuring
efforts. William T. Neary, the United States Trustee for Region
11, appointed five creditors to serve on an Official Committee of
Unsecured Creditors. The Debtor disclosed $188,953,970 in total
assets and $194,410,573 in total debts.
RICHARD MUNSON: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------------
Joint Debtors: Richard J. Munson
Lida Downey
aka Lida Downey Munson
2648 North Burling Street
Chicago, IL 60614
Bankruptcy Case No.: 10-01559
Chapter 11 Petition Date: January 16, 2010
Court: United States Bankruptcy Court
Northern District of Illinois (Chicago)
Judge: Susan Pierson Sonderby
Debtors' Counsel: Gregory K. Stern, Esq.
53 West Jackson Blvd., Suite 1442
Chicago, IL 60604
Tel: (312) 427-1558
Fax: (312) 427-1289
Email: gstern1@flash.net
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 $1,287,775
and total debts of $2,185,870.
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/ilnb10-01559.pdf
The petition was signed by the Joint Debtors.
RITZ COURT: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------
Debtor: Ritz Court, LLC
128 East Seventh Street
Plainfield, NJ 07060
Bankruptcy Case No.: 10-10852
Chapter 11 Petition Date: January 13, 2010
Court: United States Bankruptcy Court
District of New Jersey (Newark)
Judge: Morris Stern
Debtor's Counsel: Richard D. Trenk, Esq.
Trenk, DiPasquale, Webster,
Della Fera & Sodono, P.C.
347 Mt. Pleasant Avenue, Suite 300
West Orange, NJ 07052
Tel: (973) 243-8600
Email: rtrenk@trenklawfirm.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/njb10-10852.pdf
The petition was signed by David Connolly, member of the Company.
RIVER WEST: Has Access Joffco Square Rental Until February 7
------------------------------------------------------------
The Hon. Eugene R. Wedoff of the U.S. Bankruptcy Court for the
Northern District of Illinois, in a third interim order,
authorized River West Plaza-Chicago, LLC dba Joffco Square to:
-- use cash collateral of Bank of America, N.A., including but
not limited to the rental income of Joffco Square until
February 7, 2010; and
-- grant adequate protection to BofA.
A continued hearing on the Debtor's use of cash collateral will be
held on February 3, 2010, at 10:00 a.m.
The Debtor would use the cash collateral to pay operating and
overhead expenses of Joffco Square.
As adequate protection, the Debtor will continue operating Joffco
Square. In addition, the Debtor will continue to make interest
payments to the lender.
River West Plaza-Chicago LLC, dba Joffco Square, is an Illinois
limited liability company, with its principal office located at 5
Revere Drive, Suite 200, Northbrook, Illinois 60062. The Company
filed for Chapter 11 bankruptcy protection on December 7, 2009
(Bankr. N.D. Ill. Case No. 09-46258). Forrest B. Lammiman, Esq.,
at Meltzer, Purtill & Stelle LLC 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.
RONALD ALAN DAVIDOFF: Voluntary Chapter 11 Case Summary
-------------------------------------------------------
Debtor: Ronald Alan Davidoff
8445 N 15th Street
Phoenix, AZ 85020
Bankruptcy Case No.: 10-01175
Chapter 11 Petition Date: January 15, 2010
Court: United States Bankruptcy Court
District of Arizona (Phoenix)
Judge: Charles G. Case II
Debtor's Counsel: Dean M. Dinner, Esq.
Nussbaum & Gillis
14500 N. Northsight Blvd., Suite 116
Scottsdale, AZ 85260-0001
Tel: (480) 609-0011
Email: ddinner@nussbaumgillis.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The petition was signed by Mr. Davidoff.
RUFFIN ROAD: Case Summary & Unsecured Creditor
----------------------------------------------
Debtor: Ruffin Road Office Park LP
26478 Ynez Road
Temecula, CA 92591
Bankruptcy Case No.: 10-11060
Chapter 11 Petition Date: January 14, 2010
Court: United States Bankruptcy Court
Central District of California (Riverside)
Judge: Meredith A. Jury
Debtor's Counsel: Thomas C. Nelson, Esq.
550 West C Street, Suite 1850
San Diego, CA 92101
Tel: (619) 236-1245
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Debtor identified AT&T with a trade debt claim for $689 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/cacb10-11060.pdf
The petition was signed by Kevin Tucker, president of General
Partner of the Company.
RYNESS COMPANY: Emerges from Chapter 11 Protection
--------------------------------------------------
Building Online reports that Ryness Company has emerged from
Chapter 11 protection less than nine months after it filed in the
U.S. Bankruptcy Court in the Northern District of California.
The Ryness Company -- http://www.ryness.com/-- has been at the
forefront of some of the nation's fastest growing new home markets
for nearly 35 years, working with clients in the planning, design,
sales and marketing of over 175,000 homes in over 2,000 new home
communities throughout the western United States. The company
provides strategic data, advice and counsel in such areas as land
acquisition, market research and sales and marketing management.
The company also publishes the weekly Ryness Report, providing the
homebuilding community with a comparison of sales activity between
various regions and markets, including year-to-date totals from
the same week of the previous year.
The Ryness Company, Inc. filed for Chapter 11 on Feb. 26, 2009
(Bankr. N.D. Calif Case No. 09-41466). It said in its petition
that debts range from $10 million to $50 million.
SARASOTA ESTATE: Voluntary Chapter 11 Case Summary
--------------------------------------------------
Debtor: Sarasota Estate & Jewelry Buyers, Inc.
640 S. Washington Blvd., Suite 240
Sarasota, FL 34236
Bankruptcy Case No.: 10-00789
Chapter 11 Petition Date: January 15, 2010
Court: United States Bankruptcy Court
Middle District of Florida (Tampa)
Judge: Michael G. Williamson
Debtor's Counsel: Kevin P. O'Brien, Esq.
Law Offices of Kevin P. O'Brien, P.A.
805 West Azeele Street
Tampa, FL 33606
Tel: (813) 549-1490
Fax: (813) 387-3050
Email: kevinpaobrien@aol.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 Haiel Suwaity, president of the
Company.
SEQUENOM INC: Inks Deal to Resolve Class Action Lawsuit
-------------------------------------------------------
Sequenom Inc. entered into a stipulation of settlement which will
resolve the class action securities lawsuits consolidated under
the caption In re Sequenom, Inc. Securities Litigation, S.D. Cal.
Case No. 09-CV-0921 LAB, pending in the U.S. District Court for
the Southern District of California.
Attorneys for Harry Stylli, Paul Hawran, Allan T. Bombard, Charles
R. Cantor, Steven Owings, Harry F. Hixson, Jr., and Elizabeth
Dragon, all of whom were named as defendants in the consolidated
lawsuits, have also entered into the stipulation of settlement.
The stipulation of settlement, a copy of which is filed as Exhibit
99.1 hereto, remains subject to preliminary and final approval by
the U.S. District Court.
Subject to final approval of the stipulation of settlement by the
U.S. District Court, in exchange for a release of all claims by
the class members and a dismissal of the consolidated lawsuits,
the Company has agreed to:
* pay the class members and their attorneys a total of
$14 million which will be funded from insurance proceeds,
* issue to the class members and their attorneys shares of our
common stock, and
* adopt certain corporate governance measures, including an
amendment to our Bylaws to provide that at all times a
majority of its directors must be independent.
The number of shares of the Company's common stock to be issued
will be determined on a date to be established after final
approval of the settlement by the U.S. District Court and will
constitute 9.95% of the shares of our common stock outstanding
post-issuance, provided that certain shares issued after entry
into the stipulation of settlement, including any shares issued in
a bona fide financing, in connection with a licensing,
collaboration or acquisition transaction or pursuant to our
currently existing equity incentive plans, will be excluded from
the shares outstanding calculation. As of December 23, 2009, we
had 61,693,241 shares of common stock outstanding, and if the
share number had been determined as of that date, we would have
been obligated to issue 6,816,743 shares of common stock pursuant
to the terms of the settlement.
In connection with the approval of the stipulation of settlement,
our board of directors implemented the agreed upon corporate
governance measures and approved the amendment to our Bylaws.
If the settlement is approved preliminarily by the U.S. District
Court, potential class members will be notified of the proposed
settlement and the procedure by which they can request to be
excluded from the class. The settlement will then be subject to
final approval by the U.S. District Court.
About Sequenom Inc.
Sequenom, Inc. (NASDAQ:SQNM) is a diagnostic testing and genetics
analysis company. The Company is focused on providing products,
services, diagnostic testing, applications and genetic analysis
products that translate the results of genomic science into
solutions for biomedical research, translational research,
molecular medicine applications, and agricultural, livestock and
other areas of research.
As of September 30, 2009, the Company had total assets of
$101,942,000 against total current liabilities of $18,489,000,
deferred revenue, less current portion of $384,000, other long-
term liabilities of $3,693, and long-term portion debt and
obligations of $2,141,000.
The Company added that there is substantial doubt about its
ability to continue as a going concern. Although the Company
related that its cash, cash equivalents and current marketable
securities will be sufficient to fund its operating expenses and
capital requirements through 2010, it will require significant
additional financing in the future to fund its operations.
SHAWN HUDSPETH: Case Summary & 11 Largest Unsecured Creditors
-------------------------------------------------------------
Joint Debtors: Shawn Paul Hudspeth
Jennifer Lynne Hudspeth
aka Jennifer Lynne Johnson
11208 Deprise Cove
San Diego, CA 92131
Bankruptcy Case No.: 10-00487
Chapter 11 Petition Date: January 14, 2010
Court: United States Bankruptcy Court
Southern District of California (San Diego)
Judge: Louise DeCarl Adler
Debtors' Counsel: Craig E. Dwyer, Esq.
8745 Aero Drive, Suite 301
San Diego, CA 92123
Tel: (858) 268-9909
Fax: (858) 268-4230
Email: craigedwyer@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 the Debtors' petition, including a list of
their 11 largest unsecured creditors, is available for free at:
http://bankrupt.com/misc/casb10-00487.pdf
The petition was signed by the Joint Debtors.
SHERWOOD FARMS: Files for Chapter 11 in Orlando
-----------------------------------------------
Sherwood Farms Inc. filed a Chapter 11 petition on Jan. 15 in
Orlando, Florida (Bankr. M.D. Fla. Case No. 10-00578).
Groveland, Florida-based Sherwood Farms Inc. is a grower and
wholesaler of orchids. Sherwood said it owes $7 million to first-
and second-lien lenders. Sherwood said in a filing that cash,
accounts receivable, inventory, and real property are worth
$8 million.
Mariane L. Dorris, Esq., at Latham Shuker Eden & Beaudine LLP,
represents the Debtor in its restructuring effort.
SINGLE TOUCH: Recurring Losses Prompt Going Concern Doubt
---------------------------------------------------------
Weaver & Martin LLC, in Kansas City, Missouri, expressed
substantial doubt about Single Touch Systems, Inc. and
subsidiaries' ability to continue as a going concern after
auditing the Company's consolidated financial statements as of and
for the years ended September 30, 2009, and 2008.
The independent public accounting firm pointed to the Company's
recurring losses and negative cash flows from operations.
The Company reported a net loss of $13,560,841 on revenue of
$813,019 for the year ended September 30, 2009, compared to a net
loss of $11,123,003 on revenue of $1,713,014 for the previous
fiscal period.
Balance Sheet
At September 30, 2009, the Company's consolidated balance sheets
showed $2,354,732 in total assets and $10,926,401 in total
liabilities, resulting in a $8,571,669 shareholders' deficit.
The Company's consolidated balance sheets at September 30, 2009,
also showed strained liquidity with $1,569,982 in total current
assets available to pay $6,214,001 in total current liabilities.
A full-text copy of the Company's annual report on Form 10-K is
available at no charge at http://researcharchives.com/t/s?4d8a
About Single Touch Systems Inc.
Headquartered in Encinitas, California, Single Touch Systems, Inc.
(OTC BB: SITO) through its wholly owned subsidiary, Single Touch
Interactive, Inc., is engaged in the business of wireless
application development, publishing and distribution. Single
Touch Interactive is a provider of customized easy-to-use wireless
solutions. It's patent pending technology simplifies adoption by
reaching new data subscribers and generating new revenue streams
for carriers and content owners.
SINOBIOPHARMA INC: Earns $1.07 Million in November 30 Quarter
-------------------------------------------------------------
Sinobiopharma, Inc., and subsidiaries reported net income of
$1,073,550 on sales of $2,137,471 for the three months ended
November 30, 2009, compared to a net loss of $1,045,239 on sales
of $971,173 for the three months ended November 30, 2008.
The increase in sales was due to the continuing growth in sales of
Cisatracurium Besylate. The increase in net income was due to the
increase in sales and decrease of the stock-based compensation
expense.
For the six months ended November 30, 2008, the Company reported
net income of $1,310,717 on sales of $3,431,235, compared to a net
loss of $897,376 on sales of $1,902,376 for the six months ended
November 30,2008.
Balance Sheet
At November 30, 2009, the Company's consolidated balance sheets
showed total assets of $6,927,840, total current liabilities of
$4,445,765, and total stockholders' equity of $2,482,075.
The Company had negative working capital of $2,565,449 at
November 30, 2009, compared to negative working capital of
$3,487,160 at May 31, 2009.
A full-text copy of the Company's quarterly report on Form 10-Q is
available at no charge at http://researcharchives.com/t/s?4d8e
Going Concern Doubt
"For the six months period ended November 30, 2009, the Company
had net income of $1,310,717, but had the cumulative losses since
commencement of operations of $6,400,562 and negative working
capital of $2,565,449 as of November 30, 2009, which raises
substantial doubt about the Company's ability to continue as a
going concern. The ability of the Company to meet its commitments
as they become payable is dependent on the ability of the Company
to obtain necessary financing or achieve a consistently profitable
level of operations. There are no assurances that the Company
will be successful in achieving these goals."
About Sinobiopharma Inc.
Based in Nantong City, Jiangsu Province, China, Sinobiopharma,
Inc., through its operating subsidiary Dong Ying China, is engaged
in the research, development, manufacture and marketing of
biopharmaceutical products in China. The Company has developed
new methods for synthesis of active pharmaceutical ingredient
("API") and innovative drug delivery (new formulation) that
dramatically reduces the time and cost of drug development. The
Company's current therapeutic focus is on anesthesia-assisted
agents and cardiovascular drugs.
In November 2009, the Company received final approval from all
authorities for the production and sales of its new drug
Perindopril with brand name of Yitai. Yitai is a cardiovascular
drug used for the patients with heart disease and high blood
pressure. It is covered by Chinese health insurance.
Sinobiopharma, Inc., was incorporated in the State of Nevada.
SMART ONLINE: Atlas Capital Reports 39% Equity Stake
----------------------------------------------------
Atlas Capital SA discloses that as of January 4, 2010, it has
acquired, in the aggregate, 7,224,297 shares or roughly 39% of the
common stock of Smart Online Inc. either from the Company or from
other shareholders of the Company. Atlas Capital has paid
$19,585,819.12 for the shares from corporate funds, including
56,206 shares acquired from Dennis Michael Nouri -- the former
President and Chief Executive Officer of the Company -- pursuant
to a note cancellation agreement. In exchange for the shares
acquired from Mr. Nouri, Atlas Capital cancelled a note under
which Mr. Nouri owed Atlas Capital principal and interest totaling
$85,117.
On February 24, 2009, the Company sold convertible secured
subordinated notes due November 14, 2010, in the principal amount
of $500,000 to Atlas Capital. Noteholders holding a majority of
the aggregate principal amount of the Notes outstanding agreed
that the Company may sell additional convertible secured
subordinated notes in an aggregate principal amount of up to
$6 million to new investors or existing Noteholders at any time on
or before December 31, 2009 with a maturity date of November 14,
2010 or later. In addition, the definition of "Maturity Date" for
each of the Notes was changed from November 14, 2010 to the date
upon which the Note is due and payable, which is the earlier of
(1) November 14, 2010, (2) a change of control, or (3) if an event
of default occurs, the date upon which Noteholders accelerate the
indebtedness evidenced by the Notes.
On each of April 3, 2009 and June 2, 2009, the Company sold a Note
in the principal amount of $500,000 to Atlas Capital on
substantially the same terms and conditions as the previously
issued Notes. On each of July 16, 2009, August 26, 2009,
September 8, 2009, and October 5, 2009, the Company sold a Note in
the principal amount of $250,000 to Atlas Capital on substantially
the same terms and conditions as the previously issued Notes. On
November 6, 2009, the Company sold a Note in the principal amount
of $500,000, and on December 23, 2009, the Company sold a Note in
the principal amount of $750,000, to the Reporting Person on
substantially the same terms and conditions as the previously
issued Notes.
The Company is obligated to pay interest on the Notes at an
annualized rate of 8% payable in quarterly installments commencing
three months after the purchase date of the Notes. The Company
does not have the ability to prepay the Notes without the approval
of Noteholders holding at least a majority of the principal amount
of the Notes then outstanding.
On the earlier of November 14, 2010, or a merger or acquisition or
other transaction pursuant to which the Company's existing
stockholders hold less than 50% of the surviving entity, or the
sale of all or substantially all of the Company's assets, or
similar transaction, or event of default, each Noteholder in its
sole discretion shall have the option to:
-- convert the principal then outstanding on its Notes into
shares of Common Stock, or
-- receive immediate repayment in cash of the Notes,
including any accrued and unpaid interest.
If a Noteholder elects to convert its Notes under these
circumstances, the conversion price will be the lowest "applicable
conversion price" determined for each Note. The "applicable
conversion price" for each Note shall be calculated by multiplying
120% by the lowest of:
-- the average of the high and low prices of the Common Stock
on the OTC Bulletin Board averaged over the five trading
days prior to the closing date of the issuance of such
Note,
-- if the Common Stock is not traded on the Over-The-Counter
market, the closing price of the Common Stock reported on
the Nasdaq National Market or the principal exchange on
which the Common Stock is listed, averaged over the five
trading days prior to the closing date of the issuance of
such Note, or
-- the closing price of the Common Stock on the OTC Bulletin
Board, the Nasdaq National Market or the principal
exchange on which the Common Stock is listed, as
applicable, on the trading day immediately preceding the
date such Note is converted, in each case as adjusted for
stock splits, dividends or combinations, recapitalizations
similar events.
Payment of the Notes will be automatically accelerated if the
Company enters voluntary or involuntary bankruptcy or insolvency
proceedings.
Atlas Capital said it has no plans or proposals which would relate
to or result in any of these matters:
(a) the acquisition by any person of additional securities
of the Company, or the disposition of securities of the
Company;
(b) an extraordinary corporate transaction, such as a
merger, reorganization, or liquidation, involving the
Company or any of its subsidiaries;
(c) a sale or transfer of a material amount of assets of the
Company or any of its subsidiaries;
(d) any change in the present Board of Directors or
management of the Company, including any plans or
proposals to change the number or term of the Company's
Board of Directors or to fill any existing vacancies
thereon;
(e) any material change in the present capitalization or
dividend policy of the Company;
(f) any other material change in the Company's business or
Corporate structure;
(g) changes in the Company's charter, bylaws, or instruments
corresponding thereto or other actions which may impede
the acquisition of control of the Company by any person;
(h) causing a class of securities of the Company to be
delisted from a national securities exchange or to cease
to be authorized to be quoted in an inter-dealer
quotation system of a registered national securities
association;
(i) a class of equity securities of the Company becoming
eligible for termination of registration pursuant to
Section 12(g)(4) of the Securities Exchange Act of 1934,
as amended; or
(j) any action similar to any of those enumerated.
Durham, North Carolina-based Smart Online, Inc. --
http://www.smartonline.com/-- develops and markets software
products and services (One Biz(TM)) targeted to small businesses
that are delivered via a Software-as-a-Service model. The Company
sells its SaaS products and services primarily through private-
label marketing partners. In addition, the Company provides
sophisticated and complex Web site consulting and development
services, primarily in the e-commerce retail and direct-selling
organization industries.
At September 30, 2009, the Company had $1,788,096 in total assets
against $13,610,936 in total liabilities, resulting in
stockholders' deficit of $11,822,840.
SMURFIT-STONE: Calpine Corrugated Cash Use Extended Until Jan. 30
-----------------------------------------------------------------
The Bankruptcy Court previously entered its final order
authorizing Calpine Corrugated LLC, one of the debtor-affiliates
of Smurfit-Stone Container Corp., to use cash collateral and
granting adequate protection to certain prepetition lenders.
The Final Order provides that Calpine Corrugated will be
authorized to use Cash Collateral solely in accordance with a
certain budget attached to the Final Order. In addition, the
Order provides that Calpine Corrugated's authority to use Cash
Collateral will terminate upon the earliest to occur of:
(i) January 2, 2010;
(ii) the dismissal of Calpine Corrugated's Chapter 11 case or
the conversion of the Chapter 11 case to a case under
Chapter 7 of the Bankruptcy Code;
(iii) the appointment of a trustee or examiner with expanded
powers in Calpine Corrugated's Chapter 11 case;
(iv) the entry of an order reversing, staying, vacating or
otherwise modifying in any material respect the terms of
the Final Order;
(v) failure by Calpine Corrugated to comply with any material
provision of the Final Order, as determined by the Court
pursuant to a final order after notice and a hearing;
(vi) any misrepresentation of a material fact made after the
Petition Date by any of the Debtors or their agents to
the Prepetition Lenders about (a) the financial condition
of Calpine Corrugated, (b) the nature, extent, location
or quality of any Prepetition Collateral, or (c) the
disposition or use of any Prepetition Collateral,
including the Cash Collateral, in each case as determined
by the Court pursuant to a final order after notice and a
hearing;
(vii) the sale after the Petition Date of any portion of
Calpine Corrugated's assets outside the ordinary course
of business without the prior written consent of the
Prepetition Lenders, each in its sole discretion; and
(viii) the failure by Calpine Corrugated to comply with any
material terms of the Prepetition Credit Agreements after
the Petition Date.
Subsequently, the Debtors asked that the Prepetition Lenders
consent to an extension of the Scheduled Termination Date to
permit Calpine Corrugated to continue using Cash Collateral in
accordance with the terms and conditions of the Final Order and a
13-week budget.
A copy of the Budget is available for free at:
http://bankrupt.com/misc/SmrftCC13wkBud.pdf
However, Union Bank asked the Debtors to limit an extension to
four weeks, through and including January 30, 2010, in order to
give Union Bank additional time to analyze the Extended Budget,
without prejudice to the Debtors' ability to seek a further
extension of the Scheduled Termination Date.
In a Court-approved stipulation, the Debtors, Union Bank, and the
CIT Group/Equipment Financing, Inc. agree that effective as of
January 2, 2010, (i) the Scheduled Termination Date, the Budget
Period, and Calpine Corrugated's authority to use Cash Collateral
will be extended through and including January 30, 2010, and (ii)
the Extended Budget, for the period from January 2, 2010, through
and including January 30, 2010, will constitute the Budget.
About Smurfit-Stone
Smurfit-Stone Container Corp. -- http://www.smurfit-stone.com/--
is one of the leading integrated manufacturers of paperboard and
paper-based packaging in North America and one of the world's
largest paper recyclers. The Company operates 162 manufacturing
facilities that are primarily located in the United States and
Canada. The Company also owns roughly one million acres of
timberland in Canada and operates wood harvesting facilities in
Canada and the United States. The Company employs roughly 21,250
employees, 17,400 of which are based in the United States. For
the quarterly period ended September 30, 2008, the Company
reported roughly $7.450 billion in total assets and $5.582 billion
in total liabilities on a consolidated basis.
Smurfit-Stone and its U.S. and Canadian subsidiaries filed for
Chapter 11 protection on January 26, 2009 (Bankr. D. Del. Lead
Case No. 09-10235). Certain of the company's affiliates,
including Smurfit-Stone Container Canada Inc., a wholly owned
subsidiary of SSCE, and certain of its affiliates, filed to
reorganize under the Companies' Creditors Arrangement Act in the
Ontario Superior Court of Justice in Canada.
Smurfit-Stone joined pulp- and paper-related bankruptcies as
rising Internet use hurts magazines and newspapers. Corporacion
Durango SAB, Mexico's largest papermaker, sought U.S. bankruptcy
in October. Quebecor World Inc., a magazine printer and Pope &
Talbot Inc., a pulp-mill operator, also sought cross-border
bankruptcies for their operations in the U.S. and Canada.
James F. Conlan, Esq., Matthew A. Clemente, Esq., Dennis M.
Twomey, Esq., and Bojan Guzina, Esq., at Sidley Austin LLP, in
Chicago, Illinois; and Robert S. Brady, Esq., and Edmon L. Morton,
Esq., at Young Conaway Stargatt & Taylor in Wilmington, Delaware,
serve as the Debtors' bankruptcy counsel. PricewaterhouseCooper
LLC, serves as the Debtors' financial and investment consultants.
Lazard Freres & Co. LLC acts as the Debtors' investment bankers.
Epiq Bankruptcy Solutions LLC acts as the Debtors' notice and
claims agent.
Bankruptcy Creditors' Service, Inc., publishes Smurfit-Stone
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
and ancillary foreign proceedings undertaken by Smurfit-Stone
Container Corp. and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
SMURFIT-STONE: Disclosure Statement Hearing on January 29
---------------------------------------------------------
Smurfit-Stone Container Corp. and its units will seek approval of
the disclosure statement explaining their proposed reorganization
plan at a hearing on Jan. 29.
The Debtors aver that the Disclosure Statement contains "adequate
information," as that term is defined in Section 1125(a)(i) of the
Bankruptcy Code. Parties have until Jan. 21 to file objections.
In addition, the Debtors propose to establish these dates with
respect to the solicitation and confirmation of the Joint Plan:
* 02/05/2010 - record date for determining claim holders
entitled to receive a solicitation package
* 03/29/2010 - deadline by which all ballots must be properly
executed and received by Epiq Bankruptcy
Solutions LLC, the voting agent
* 03/29/2010 - deadline for Rule 3018 Motions
* 03/29/2010 - deadline for filing confirmation objections
* 04/14/2010 - hearing to consider all Rule 3018 Motions
* 04/14/2010 - confirmation hearing
Smurfit-Stone filed its Plan of Reorganization on December 1 and
plans to emerge from restructuring proceedings in both the United
States and Canada either late in the first quarter or early in the
second quarter of 2010. Under the Plan, unsecured creditors of
the operating debtors will receive shares of stock and stock
holders of the Smurfit-Stone entities will retain their interests.
A blacklined copy of the Amended Plan is available for free at:
http://bankrupt.com/misc/SmrftPlanBlkln.pdf
A blacklined copy of the Amended Disclosure Statement is
available for free at:
http://bankrupt.com/misc/SmrftAmDSBlkln.pdf
About Smurfit-Stone
Smurfit-Stone Container Corp. -- http://www.smurfit-stone.com/--
is one of the leading integrated manufacturers of paperboard and
paper-based packaging in North America and one of the world's
largest paper recyclers. The Company operates 162 manufacturing
facilities that are primarily located in the United States and
Canada. The Company also owns roughly one million acres of
timberland in Canada and operates wood harvesting facilities in
Canada and the United States. The Company employs roughly 21,250
employees, 17,400 of which are based in the United States. For
the quarterly period ended September 30, 2008, the Company
reported roughly $7.450 billion in total assets and $5.582 billion
in total liabilities on a consolidated basis.
Smurfit-Stone and its U.S. and Canadian subsidiaries filed for
Chapter 11 protection on January 26, 2009 (Bankr. D. Del. Lead
Case No. 09-10235). Certain of the company's affiliates,
including Smurfit-Stone Container Canada Inc., a wholly owned
subsidiary of SSCE, and certain of its affiliates, filed to
reorganize under the Companies' Creditors Arrangement Act in the
Ontario Superior Court of Justice in Canada.
Smurfit-Stone joined pulp- and paper-related bankruptcies as
rising Internet use hurts magazines and newspapers. Corporacion
Durango SAB, Mexico's largest papermaker, sought U.S. bankruptcy
in October. Quebecor World Inc., a magazine printer and Pope &
Talbot Inc., a pulp-mill operator, also sought cross-border
bankruptcies for their operations in the U.S. and Canada.
James F. Conlan, Esq., Matthew A. Clemente, Esq., Dennis M.
Twomey, Esq., and Bojan Guzina, Esq., at Sidley Austin LLP, in
Chicago, Illinois; and Robert S. Brady, Esq., and Edmon L. Morton,
Esq., at Young Conaway Stargatt & Taylor in Wilmington, Delaware,
serve as the Debtors' bankruptcy counsel. PricewaterhouseCooper
LLC, serves as the Debtors' financial and investment consultants.
Lazard Freres & Co. LLC acts as the Debtors' investment bankers.
Epiq Bankruptcy Solutions LLC acts as the Debtors' notice and
claims agent.
Bankruptcy Creditors' Service, Inc., publishes Smurfit-Stone
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
and ancillary foreign proceedings undertaken by Smurfit-Stone
Container Corp. and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
SMURFIT-STONE: Gets Nod to Arrange $1.2 Bil. Exit Financing
-----------------------------------------------------------
Smurfit-Stone Container Corp. and its units sought and obtained
authority from the Court to enter into an exit term loan facility
engagement and arrangement letter and fee letter with JPMorgan
Chase Bank, N.A., J.P. Morgan Securities, Inc., Deutsche Bank
Securities Inc. and Banc of America Securities LLC.
As previously reported, the Debtors filed revised versions of
their Joint Plan of Reorganization and Disclosure Statement for
the Joint Plan of Reorganization. A hearing to consider approval
of the Disclosure Statement is scheduled for January 29, 2010.
James F. Conlan, Esq., at Sidley Austin LLP, in Chicago,
Illinois, notes that a key element of the restructuring
contemplated by the Plan is the availability of exit financing
that provides sufficient funding for the Debtors to meet their
cash obligations and to have sufficient working capital for their
business operations and general corporate purposes.
The Plan specifically provides that certain of the Debtors will
enter into definitive documentation for their exit financing on
or prior to the effective date of the Plan. Mr. Conlan contends
that entry into the Term Loan Arrangement Documents constitutes
the first step in arranging a $1,200,000,000 exit term loan
facility for the Debtors.
The Term Facility will be a new six-year senior secured term loan
facility. The term loans made under the Term Facility will be
repayable in equal quarterly installments for five years and nine
months and will equal one percent of its original principal
amount, with the balance payable at maturity. The Term Loan
Commitments will terminate if the Funding Date has not occurred
on or prior to the date that is five months after the closing
date.
The Term Loans will be available in a single drawing on the
effective date of the Plan and interest will accrue on a per
annum basis, at the option of the company, at (i) the Libor rate
for the applicable interest period, subject to a two percent
floor, plus five percent or (ii) highest of the prime rate, the
federal funds rate plus 0.5% and the one month Libor rate plus
one percent, subject to a three percent floor, plus four percent.
The Term Loans will be secured by a first priority lien on
substantially all assets of the Debtors and a pledge of capital
stock of all material subsidiaries and a second priority lien on
accounts receivable, inventory and related assets.
Pursuant to the Arrangement Letter:
* J.P. Morgan, DBSI, and BAS will act as joint bookrunners for
the Term Loan Facility;
* J.P. Morgan, DBSI, and BAS will act as co-lead arrangers;
* JPMCB will act as administrative agent and collateral agent;
and
* DBSI will act as syndication agent.
The Arrangement Letter also provides that the Debtors will
indemnify the Arrangement Parties and will reimburse the
Arrangement Parties for reasonable out-of-pocket expenses.
The Arrangement Letter will automatically terminate, unless the
parties thereto, in their sole discretion, agree to an extension,
(i) if a definitive credit agreement is entered into with respect
to the Term Loan Facility on the stated date on which the lending
commitments under the credit agreement expire by their terms
without the funding date having occurred or (ii) on June 30,
2010, if no definitive credit agreement is entered into with
respect to the Term Loan Facility.
In return for the Arrangement Parties' undertakings, the Debtors
have agreed, among other things, to enter into a certain
Arrangement Fee Letter, pursuant to which the Debtors agree to
pay to J.P. Morgan an arrangement fee based on $1,200,000,000 or
a lesser amount of commitments as are raised by the Arrangement
Parties.
Mr. Conlan tells the Court that once the Term Loan Arrangement
Documents are executed and approved, the Arrangement Parties and
the Debtors will seek commitments from prospective lenders in
respect of the Term Loan Facility, and the Debtors and
Arrangement Parties will negotiate the definitive documentation
for the Term Loan Facility, including a credit agreement. He
adds that the Debtors will separately seek the Court's authority
to enter into a definitive credit agreement in respect of the
Term Loan Facility at the appropriate time.
A copy of the Arrangement Letter is available for free at:
http://bankrupt.com/misc/SmrftEngArrLttr.pdf
A copy of the term sheet is available for free at:
http://bankrupt.com/misc/SmrftTrmSht.pdf
Parties Want to Seal Arrangement Fee Letter
In a separate filing, the Debtors and the Arrangement Parties
sought and obtained Court approval to file under seal the
Arrangement Fee Letter because it contains information that is
both commercially sensitive to the Debtors and the Arrangement
Parties.
Mr. Conlan relates that the Debtors will disclose the Arrangement
Fee Letter to the United States Trustee, the Official Committee
of Unsecured Creditors, and other necessary parties.
The sealed Arrangement Fee Letter was filed on January 14, 2009.
Prior to this, the Debtors and the Arrangement Parties sought and
obtained a Court order shortening the time for notice of their
Request.
About Smurfit-Stone
Smurfit-Stone Container Corp. -- http://www.smurfit-stone.com/--
is one of the leading integrated manufacturers of paperboard and
paper-based packaging in North America and one of the world's
largest paper recyclers. The Company operates 162 manufacturing
facilities that are primarily located in the United States and
Canada. The Company also owns roughly one million acres of
timberland in Canada and operates wood harvesting facilities in
Canada and the United States. The Company employs roughly 21,250
employees, 17,400 of which are based in the United States. For
the quarterly period ended September 30, 2008, the Company
reported roughly $7.450 billion in total assets and $5.582 billion
in total liabilities on a consolidated basis.
Smurfit-Stone and its U.S. and Canadian subsidiaries filed for
Chapter 11 protection on January 26, 2009 (Bankr. D. Del. Lead
Case No. 09-10235). Certain of the company's affiliates,
including Smurfit-Stone Container Canada Inc., a wholly owned
subsidiary of SSCE, and certain of its affiliates, filed to
reorganize under the Companies' Creditors Arrangement Act in the
Ontario Superior Court of Justice in Canada.
Smurfit-Stone joined pulp- and paper-related bankruptcies as
rising Internet use hurts magazines and newspapers. Corporacion
Durango SAB, Mexico's largest papermaker, sought U.S. bankruptcy
in October. Quebecor World Inc., a magazine printer and Pope &
Talbot Inc., a pulp-mill operator, also sought cross-border
bankruptcies for their operations in the U.S. and Canada.
James F. Conlan, Esq., Matthew A. Clemente, Esq., Dennis M.
Twomey, Esq., and Bojan Guzina, Esq., at Sidley Austin LLP, in
Chicago, Illinois; and Robert S. Brady, Esq., and Edmon L. Morton,
Esq., at Young Conaway Stargatt & Taylor in Wilmington, Delaware,
serve as the Debtors' bankruptcy counsel. PricewaterhouseCooper
LLC, serves as the Debtors' financial and investment consultants.
Lazard Freres & Co. LLC acts as the Debtors' investment bankers.
Epiq Bankruptcy Solutions LLC acts as the Debtors' notice and
claims agent.
Bankruptcy Creditors' Service, Inc., publishes Smurfit-Stone
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
and ancillary foreign proceedings undertaken by Smurfit-Stone
Container Corp. and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
SMURFIT-STONE: IRS Wants Interest Payments for Tax Claims
---------------------------------------------------------
On behalf of the Internal Revenue Service, Yonatan Gelblum, Esq.,
trial attorney, tax division of the U.S. Department of Justice,
contends that the provisions of Smurfit-Stone Container Corp.'s
Chapter 11 Plan of Reorganization regarding payment of the IRS'
priority tax claims do not provide for the payment of interest on
the claims should the Debtors opt to pay the claims over time.
Fundamental time-value-of-money principles instruct that the
United States will not receive the total "value" of its priority
tax claims at the Plan's effective date, as required by Section
1129(a)(9)(C) of the Bankruptcy Code, unless the Plan provides an
appropriate rate of interest on any deferred payment of the
United States' priority tax claims, Mr. Gelblum tells the Court.
IRS further objects to the provisions of the Plan regarding
payment of the IRS' administrative tax claims because they do not
provide for the payment of interest on the claims should the
Debtors not timely pay the claims.
Mr. Gelblum asserts that the Plan must provide that, to the
extent payment of administrative taxes is not made as of the date
the tax is due, interest will be paid on the taxes at the then-
current underpayment rate.
For these reasons, the IRS asks the Court to deny confirmation of
the Plan.
Smurfit-Stone filed its Plan of Reorganization on December 1 and
plans to emerge from restructuring proceedings in both the United
States and Canada either late in the first quarter or early in the
second quarter of 2010. Under the Plan, unsecured creditors of
the operating debtors will receive shares of stock and stock
holders of the Smurfit-Stone entities will retain their interests.
A blacklined copy of the Amended Plan is available for free at:
http://bankrupt.com/misc/SmrftPlanBlkln.pdf
A blacklined copy of the Amended Disclosure Statement is
available for free at:
http://bankrupt.com/misc/SmrftAmDSBlkln.pdf
About Smurfit-Stone
Smurfit-Stone Container Corp. -- http://www.smurfit-stone.com/--
is one of the leading integrated manufacturers of paperboard and
paper-based packaging in North America and one of the world's
largest paper recyclers. The Company operates 162 manufacturing
facilities that are primarily located in the United States and
Canada. The Company also owns roughly one million acres of
timberland in Canada and operates wood harvesting facilities in
Canada and the United States. The Company employs roughly 21,250
employees, 17,400 of which are based in the United States. For
the quarterly period ended September 30, 2008, the Company
reported roughly $7.450 billion in total assets and $5.582 billion
in total liabilities on a consolidated basis.
Smurfit-Stone and its U.S. and Canadian subsidiaries filed for
Chapter 11 protection on January 26, 2009 (Bankr. D. Del. Lead
Case No. 09-10235). Certain of the company's affiliates,
including Smurfit-Stone Container Canada Inc., a wholly owned
subsidiary of SSCE, and certain of its affiliates, filed to
reorganize under the Companies' Creditors Arrangement Act in the
Ontario Superior Court of Justice in Canada.
Smurfit-Stone joined pulp- and paper-related bankruptcies as
rising Internet use hurts magazines and newspapers. Corporacion
Durango SAB, Mexico's largest papermaker, sought U.S. bankruptcy
in October. Quebecor World Inc., a magazine printer and Pope &
Talbot Inc., a pulp-mill operator, also sought cross-border
bankruptcies for their operations in the U.S. and Canada.
James F. Conlan, Esq., Matthew A. Clemente, Esq., Dennis M.
Twomey, Esq., and Bojan Guzina, Esq., at Sidley Austin LLP, in
Chicago, Illinois; and Robert S. Brady, Esq., and Edmon L. Morton,
Esq., at Young Conaway Stargatt & Taylor in Wilmington, Delaware,
serve as the Debtors' bankruptcy counsel. PricewaterhouseCooper
LLC, serves as the Debtors' financial and investment consultants.
Lazard Freres & Co. LLC acts as the Debtors' investment bankers.
Epiq Bankruptcy Solutions LLC acts as the Debtors' notice and
claims agent.
Bankruptcy Creditors' Service, Inc., publishes Smurfit-Stone
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
and ancillary foreign proceedings undertaken by Smurfit-Stone
Container Corp. and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
SMURFIT-STONE: Sees $124-Mil. Net Loss This Year; Profit in 2011
----------------------------------------------------------------
Smurfit-Stone Container Corp. estimates a $124 million net loss in
2010 will turn to a $43 million profit in 2011, Bill Rochelle at
Bloomberg News reported, citing projections given to prospective
lenders. In a presentation aimed at securing $1.2 billion in
financing to exit bankruptcy reorganization, the Company estimates
that earnings before interest, taxes, depreciation and
amortization of $384 million in 2010 will become EBITDA of
$655 million in 2014 when net income is projected to be $134
million. The preliminary results for 2009 show a net loss of $209
million and $441 million in EBITDA. Given two profitable quarters
in 2009, the projected net loss for the year will result from a
projected fourth quarter 2009 loss of $221 million.
Smurfit-Stone filed its Plan of Reorganization on December 1 and
plans to emerge from restructuring proceedings in both the United
States and Canada either late in the first quarter or early in the
second quarter of 2010. Under the Plan, unsecured creditors of
the operating debtors will receive shares of stock and stock
holders of the Smurfit-Stone entities will retain their interests.
A blacklined copy of the Amended Plan is available for free at:
http://bankrupt.com/misc/SmrftPlanBlkln.pdf
A blacklined copy of the Amended Disclosure Statement is
available for free at:
http://bankrupt.com/misc/SmrftAmDSBlkln.pdf
About Smurfit-Stone
Smurfit-Stone Container Corp. -- http://www.smurfit-stone.com/--
is one of the leading integrated manufacturers of paperboard and
paper-based packaging in North America and one of the world's
largest paper recyclers. The Company operates 162 manufacturing
facilities that are primarily located in the United States and
Canada. The Company also owns roughly one million acres of
timberland in Canada and operates wood harvesting facilities in
Canada and the United States. The Company employs roughly 21,250
employees, 17,400 of which are based in the United States. For
the quarterly period ended September 30, 2008, the Company
reported roughly $7.450 billion in total assets and $5.582 billion
in total liabilities on a consolidated basis.
Smurfit-Stone and its U.S. and Canadian subsidiaries filed for
Chapter 11 protection on January 26, 2009 (Bankr. D. Del. Lead
Case No. 09-10235). Certain of the company's affiliates,
including Smurfit-Stone Container Canada Inc., a wholly owned
subsidiary of SSCE, and certain of its affiliates, filed to
reorganize under the Companies' Creditors Arrangement Act in the
Ontario Superior Court of Justice in Canada.
Smurfit-Stone joined pulp- and paper-related bankruptcies as
rising Internet use hurts magazines and newspapers. Corporacion
Durango SAB, Mexico's largest papermaker, sought U.S. bankruptcy
in October. Quebecor World Inc., a magazine printer and Pope &
Talbot Inc., a pulp-mill operator, also sought cross-border
bankruptcies for their operations in the U.S. and Canada.
James F. Conlan, Esq., Matthew A. Clemente, Esq., Dennis M.
Twomey, Esq., and Bojan Guzina, Esq., at Sidley Austin LLP, in
Chicago, Illinois; and Robert S. Brady, Esq., and Edmon L. Morton,
Esq., at Young Conaway Stargatt & Taylor in Wilmington, Delaware,
serve as the Debtors' bankruptcy counsel. PricewaterhouseCooper
LLC, serves as the Debtors' financial and investment consultants.
Lazard Freres & Co. LLC acts as the Debtors' investment bankers.
Epiq Bankruptcy Solutions LLC acts as the Debtors' notice and
claims agent.
Bankruptcy Creditors' Service, Inc., publishes Smurfit-Stone
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
and ancillary foreign proceedings undertaken by Smurfit-Stone
Container Corp. and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
TOUSA INC: Gets Approval for Amendment to CIGNA Pact
----------------------------------------------------
TOUSA, Inc., sought and obtained the Court's authority to enter
into an amendment to an Administrative Services Only Agreement
with Connecticut General Life Insurance Company or "CIGNA".
As previously reported, the Prepetition Employee Obligations
Order authorized the Debtors to continue all wage and benefit
programs, including an insurance coverage provided by CIGNA.
Moreover, TOUSA provides to its employees two separate medical
insurance plans: the Preferred Provider Option and the CIGNA Fund
Health Reimbursement Arrangement. TOUSA also provides a dental
insurance plan PPO through CIGNA. Each of these plans is
provided through the Administrative Services Only Agreement
entered into between TOUSA and CIGNA. The Agreement was set to
expire last December 31, 2009.
In this light, TOUSA, with the assistance of its insurance
broker, contacted five insurance carriers to determine whether
any carrier was willing to provide health insurance coverage to
the Debtors after expiration of the Administrative Services Only
Agreement, Paul Steven Singerman, Esq., at Berger Singerman,
P.A., in Miami, Florida, stated. However, all these efforts were
unsuccessful and it became evident that the benefit program
provided by CIGNA was the only available option for continuing
health insurance coverage, Mr. Singerman noted.
Thus, TOUSA entered into arm's-length negotiations with CIGNA to
extend the term of the Services Agreement and maintain the health
insurance plans provided to its employees. As a result of those
negotiations, the Parties ultimately entered into an Amendment.
The salient terms of the Amendment are:
(a) The term of the Administrative Services Only Agreement
will be extended until March 31, 2010, at which time the
Agreement will automatically terminate unless terminated
sooner pursuant to the termination provisions of the
Agreement;
(b) The terms of the Services Agreement will be extended if
these conditions are met:
-- The administrative fess for January 1, 2010, through
March 31, 2010, will be $76,312. The administrative
fees for processing run out claims for an additional
three months after termination of the Agreement will
be $76,312. These fees, totaling $152,624 are to be
paid to CIGNA by or before December 31, 2009;
-- All other fees in the Services Agreement will be due
and payable per the term of the Agreement and will
be current as of December 31, 2009;
-- All prepetition amounts due to CIGNA by TOUSA will
be paid and received by December 31, 2009;
-- Payment of the "Stop Loss" premiums will be current
as of December 31, 2009; and
-- TOUSA will have obtained any and all necessary
approvals from the Court for the Amendment and the
related obligations before December 31, 2009;
(c) The Benefit Plan bank account will be maintained at all
times at the required level of $437,000, funded weekly. If
at any time the Bank Account becomes overdrawn, the
Agreement will terminate immediately without further notice
and CIGNA will stop paying claims; and
(d) If the Agreement is made effective through March 31, 2010,
CIGNA agrees to process run out claims from three months
from the date of termination provided that TOUSA maintains
the interest amount in the Bank Account at the required
level of $437,000.
Mr. Singerman maintained that TOUSA's entry into the Amendment
will allow it to continue providing health and dental insurance
coverage to its employees, which is important to ensure that
remaining employees receive necessary benefits during their
continued employment.
About Tousa Inc.
Headquartered in Hollywood, Florida, TOUSA Inc. (Pink Sheets:
TOUS) -- http://www.tousa.com/-- fka Technical Olympic U.S.A.
Inc., dba Technical U.S.A., Inc., Engle Homes, Newmark Homes L.P.,
TOUSA Homes Inc. and Newmark Homes Corp. is a leading homebuilder
in the United States, operating in various metropolitan markets in
10 states located in four major geographic regions: Florida, the
Mid-Atlantic, Texas, and the West.
The Debtor and its debtor-affiliates filed for separate Chapter 11
protection on January 29, 2008 (Bankr. S.D. Fla. Case No. 08-
10928). The Debtors have selected M. Natasha Labovitz, Esq.,
Brian S. Lennon, Esq., Richard M. Cieri, Esq., and Paul M. Basta,
Esq., at Kirkland & Ellis LLP; and Paul Steven Singerman, Esq., at
Berger Singerman, to represent them in their restructuring
efforts. Lazard Freres & Co. LLC is the Debtors' investment
banker. Ernst & Young LLP is the Debtors' independent auditor and
tax services provider. Kurtzman Carson Consultants LLC acts as
the Debtors' Notice, Claims & Balloting Agent.
TOUSA's direct subsidiary, Beacon Hill at Mountain's Edge LLC dba
Eagle Homes, filed for Chapter 11 Protection on July 30, 2008
(Bankr. S.D. Fla. Case No. 08-20746). It listed assets between
$1 million and $10 million, and debts between $1 million and
$10 million.
The Official Committee of Unsecured Creditors hired Patricia A.
Redmond, Esq., and the law firm Stearns Weaver Weissler Alhadeff &
Sitterson, P.A., as its local counsel.
TOUSA Inc.'s balance sheet at June 30, 2008, showed total assets
of $1,734,422,756 and total liabilities of $2,300,053,979.
Bankruptcy Creditors' Service, Inc., publishes TOUSA Bankruptcy
News. The newsletter tracks the Chapter 11 proceeding undertaken
by TOUSA Inc. and its affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
TOUSA INC: Has Protocol for 1,200 Adversary Proceedings
-------------------------------------------------------
TOUSA Inc. and its units intend to commence about 1,200 adversary
proceedings to avoid and recover transfers they made to certain
parties within the 90 days before the Petition Date.
To that end, the Debtors have established proposed categories for
Adversary Proceedings based on the amount of money sought to be
recovered:
Adversary Amounts to be
Track Recovered
---------- ---------------------
I $25,000 to $50,000
II $50,001 to $100,000
III $100,001 to $250,000
IV more than $250,000
The Debtors further propose these uniform procedures for the
Adversary Proceedings:
(a) Each complaint will be labeled with its applicable track
number;
(b) The Debtor will serve all Track I, II, III, and IV
summonses and complaints on or before "day 30," 2010; and
(c) Answers or other responses permitted by the Federal Rules
of Bankruptcy Procedure are to be filed by "day 60," 2010.
The Debtors propose a form of Summons and Notice of
Pretrial/Trial in an Adversary Proceeding, as modified from the
Court's local summons form to conform to the proposed procedures
regarding the deadline for filing responses to the Adversary
Complaints.
The Debtors also propose the form of an Order Setting Filing and
Disclosure Requirements for Pretrial and Trial for each of tracks
of the Adversary Proceedings. The Proposed Orders Setting Pre-
trial Requirements will include these deadlines, expressed as the
number of days from the deadline of service of respective
summonses and complaints:
Track I Track II Track III Track IV
Event Days Days Days Days
----- ------- -------- --------- --------
Rule 26(a)(1) disclosures 125 145 165 185
Pleading Amendments 140 160 180 200
Expert Reports 165 185 210 225
Discovery Completion 220 240 265 280
Dispositive Motions 250 270 295 310
Final Pre-trial 280 300 325 340
The Pretrial Requirements Proposed Orders will also provide that
all motions and other matters concerning Track I, Track II, Track
III and Track IV Adversary Proceedings will be heard only at
previously scheduled omnibus hearings in these Adversary
Procedures.
In addition, the Debtors ask the Court to enter an order
referring each of the Adversary Proceedings to mandatory
mediation. The Debtors urge the Court to adopt the Delaware
Bankruptcy Court's Standing Order of April 7, 2004, as revised,
making claims to avoid preferential transfers subject to
mandatory mediation in these Adversary Proceedings and in
addition, that the Debtors' bankruptcy estates pay for all
mediation costs.
The Debtors believe that proposed procedures will promote
efficient resolution of the Adversary Proceedings consistent with
Rule 1001 of the Federal Rules of Bankruptcy Procedure.
Accordingly, by this motion, the Debtors ask the Court to:
(a) approve their proposed procedures and deadlines for the
Adversary Proceedings Protocol;
(b) approve the form of Summons with respect to each of the
Adversary Proceedings;
(c) direct the Summonses to be issued in the form proposed in
connection with each of the Adversary Proceedings;
(d) approve the form of the Proposed Orders Setting Pretrial
Requirements;
(e) schedule omnibus hearing dates for motions and other
matters; and
(f) select the mediators who will be handling the mediation of
the Adversary Proceedings.
About Tousa Inc.
Headquartered in Hollywood, Florida, TOUSA Inc. (Pink Sheets:
TOUS) -- http://www.tousa.com/-- fka Technical Olympic U.S.A.
Inc., dba Technical U.S.A., Inc., Engle Homes, Newmark Homes L.P.,
TOUSA Homes Inc. and Newmark Homes Corp. is a leading homebuilder
in the United States, operating in various metropolitan markets in
10 states located in four major geographic regions: Florida, the
Mid-Atlantic, Texas, and the West.
The Debtor and its debtor-affiliates filed for separate Chapter 11
protection on January 29, 2008 (Bankr. S.D. Fla. Case No. 08-
10928). The Debtors have selected M. Natasha Labovitz, Esq.,
Brian S. Lennon, Esq., Richard M. Cieri, Esq., and Paul M. Basta,
Esq., at Kirkland & Ellis LLP; and Paul Steven Singerman, Esq., at
Berger Singerman, to represent them in their restructuring
efforts. Lazard Freres & Co. LLC is the Debtors' investment
banker. Ernst & Young LLP is the Debtors' independent auditor and
tax services provider. Kurtzman Carson Consultants LLC acts as
the Debtors' Notice, Claims & Balloting Agent.
TOUSA's direct subsidiary, Beacon Hill at Mountain's Edge LLC dba
Eagle Homes, filed for Chapter 11 Protection on July 30, 2008
(Bankr. S.D. Fla. Case No. 08-20746). It listed assets between
$1 million and $10 million, and debts between $1 million and
$10 million.
The Official Committee of Unsecured Creditors hired Patricia A.
Redmond, Esq., and the law firm Stearns Weaver Weissler Alhadeff &
Sitterson, P.A., as its local counsel.
TOUSA Inc.'s balance sheet at June 30, 2008, showed total assets
of $1,734,422,756 and total liabilities of $2,300,053,979.
Bankruptcy Creditors' Service, Inc., publishes TOUSA Bankruptcy
News. The newsletter tracks the Chapter 11 proceeding undertaken
by TOUSA Inc. and its affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
TOUSA INC: Proposes Waterford Waiver Agreement
----------------------------------------------
TOUSA Inc. and its affiliates ask the Bankruptcy Court to
authorize Debtor TOUSA Homes, Inc.'s entry into a Conveyance,
Waiver and Release of Liability Agreement with Waterford Estates
Community Development District.
Waterford Estates is a residential development of TOUSA Homes
located in Charlotte County, Florida. TOUSA Homes currently owns
112 lots within Waterford Estates.
In connection with the development of Waterford Estates, the
Waterford CDD was authorized under applicable Florida law to
impose special assessments to help pay for local improvements
that benefited Waterford Estates. To that end, on May 4 and
July 14, 2006, the Waterford CDD passed resolutions authorizing
it to undertake certain capital improvement projects and, in
connection with the funding for those projects, approving special
assessments against the lots within Waterford Estates owned by
TOUSA Homes.
In addition to the assessments, for the purpose of funding the
various improvements within Waterford Estates, the CDD issued
$8,500,000 in aggregate principal amount of Special Assessment
Bonds, Series 2006A, as well as $10,000,000 in aggregate
principal amount of Special Assessment Bonds, Series 2006B. The
2006 Bonds were issued pursuant to a master trust indenture among
the CDD and U.S. Bank National Association, as trustee. The
Series 2006A Bonds are due May 1, 2037; the Series 2006B Bonds
are due May 1, 2013. Repayment of the 2006 Bonds was secured by
the special assessments imposed upon property owners pursuant to
the Assessment Resolutions.
Paul Steven Singerman, Esq., at Berger Singerman, P.A., in Miami,
Florida, discloses that TOUSA Homes has failed to satisfy its
obligations to pay the special assessments to the Waterford CDD.
As a result, the Waterford CDD asserted that all of TOUSA Homes'
assessments associated with the Real Property, which total
$2.1 million, are due and payable, together with statutory
penalties and the CDD's attorney fees.
Thus, in May 2008, the Waterford CDD filed Claim No. 2689 against
TOUSA Homes, asserting a secured claim for $2,176,999. Under the
current market conditions, the CDD claim exceeds the market value
of the Real Property, according to Mr. Singerman.
TOUSA Homes also entered into several additional funding and
management services agreements with the Waterford CDD in
connection with the development of Waterford Estates. The CDD
has asserted that TOUSA Homes' failure to satisfy the TOUSA Homes
Assessments has triggered its foreclosure rights with respect to
the Real Property.
Thus, to avoid a lift stay request and a foreclosure proceeding
with respect to the Real Property and to resolve all existing
disputes, TOUSA Homes and the Waterford CDD entered into the
Agreement, whereby:
(a) TOUSA Homes will execute and deliver to Billing, Cochran,
Lyles, Mauro & Ramsey, P.A., as escrow agent, a Quit Claim
Deed, and a Bill of Sale and Assignment. Pursuant to the
Deed and the Bill of Sale, TOUSA Homes will convey to the
Waterford CDD, or its designee:
-- the Real Property and all buildings, structures and
Improvements located on the Real Property;
-- TOUSA Homes' rights and interest in and to, among other
things, any assignable licenses, permits, development
rights, construction or performance bonds relating to
the use, operation or maintenance of the premises;
-- all fixtures, furniture, equipment, appliances and
other types and items of personal property used in
connection with the operation of the Premises and owned
by TOUSA Homes;
-- all of TOUSA Homes' right and interest in, among
others, all construction contracts, plans and records
concerning the Premises, including all architectural,
mechanical and electrical plans and specifications; and
-- all intangible personal property owned by TOUSA Homes
and used in connection with the Premises and the name
"Waterford Estates;"
(b) The Agreement is subject to entry of an order approving
the contemplated transactions. Upon entry of the Order,
the Escrow Agent will deliver the Deed and Bill of Sale to
the Waterford CDD and the transaction set forth under the
Agreement will be deemed closed;
(c) Upon the Closing Date, the Waterford CDD will be deemed to
forever waive and release TOUSA Homes and its officers
from any and all obligations with respect to:
-- the assessments adopted pursuant to the Assessment
Resolutions or the administration of the Assessments
or any other obligations to the District;
-- any or all of the transactions, which are the subject
of the Assessment Resolutions or the Bond Documents or
any other agreements between the Waterford CDD and
TOUSA Homes;
-- the Real Property; or
-- any fact, matter or transaction pertaining to the
obligations, including any and all monetary damage
claims against TOUSA Homes under the Bond Documents or
any other agreements between the District and TOUSA
Homes.
Pursuant to the Agreement, the Waterford CDD agrees not to
sue or assert liability against the TOUSA Parties for
breach of any covenant under any agreement between the CDD
and TOUSA Homes or any covenant in the Bond Documents that
is not included under the Agreement; and
(d) The Waterford District will withdraw its Claim.
Mr. Singerman says that in connection with the Debtors' new
business plan, the Debtors do not intend to further develop the
Real Property within Waterford Estates. However, the failure to
pay the TOUSA Homes Assessments has triggered the possibility of
foreclosure on the Real Property, which foreclosure would be
expensive and time consuming. Against this backdrop, Mr.
Singerman points out, the Agreement will resolve all of the
Waterford CDD's outstanding claims concerning Waterford Estates,
thus avoiding the costs and expenses associated with litigation
and foreclosure that were inevitable absent the Agreement.
The Debtors' request was set to be considered at a hearing on
January 13, 2010.
About Tousa Inc.
Headquartered in Hollywood, Florida, TOUSA Inc. (Pink Sheets:
TOUS) -- http://www.tousa.com/-- fka Technical Olympic U.S.A.
Inc., dba Technical U.S.A., Inc., Engle Homes, Newmark Homes L.P.,
TOUSA Homes Inc. and Newmark Homes Corp. is a leading homebuilder
in the United States, operating in various metropolitan markets in
10 states located in four major geographic regions: Florida, the
Mid-Atlantic, Texas, and the West.
The Debtor and its debtor-affiliates filed for separate Chapter 11
protection on January 29, 2008 (Bankr. S.D. Fla. Case No. 08-
10928). The Debtors have selected M. Natasha Labovitz, Esq.,
Brian S. Lennon, Esq., Richard M. Cieri, Esq., and Paul M. Basta,
Esq., at Kirkland & Ellis LLP; and Paul Steven Singerman, Esq., at
Berger Singerman, to represent them in their restructuring
efforts. Lazard Freres & Co. LLC is the Debtors' investment
banker. Ernst & Young LLP is the Debtors' independent auditor and
tax services provider. Kurtzman Carson Consultants LLC acts as
the Debtors' Notice, Claims & Balloting Agent.
TOUSA's direct subsidiary, Beacon Hill at Mountain's Edge LLC dba
Eagle Homes, filed for Chapter 11 Protection on July 30, 2008
(Bankr. S.D. Fla. Case No. 08-20746). It listed assets between
$1 million and $10 million, and debts between $1 million and
$10 million.
The Official Committee of Unsecured Creditors hired Patricia A.
Redmond, Esq., and the law firm Stearns Weaver Weissler Alhadeff &
Sitterson, P.A., as its local counsel.
TOUSA Inc.'s balance sheet at June 30, 2008, showed total assets
of $1,734,422,756 and total liabilities of $2,300,053,979.
Bankruptcy Creditors' Service, Inc., publishes TOUSA Bankruptcy
News. The newsletter tracks the Chapter 11 proceeding undertaken
by TOUSA Inc. and its affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
UAL CORP: Completes $700 Million Sr. Notes Private Offering
-----------------------------------------------------------
United Air Lines Inc. completed its private offerings, consisting
of $500,000,000 aggregate principal amount of 9.875% Senior
Secured Notes due 2013 and $200,000,000 aggregate principal amount
of 12.000% Senior Second Lien Notes due 2013.
The Notes were sold only to qualified institutional buyers in
accordance with Rule 144A under the Securities Act of 1933, as
amended and to non-U.S. persons in accordance with Regulation S
under the Securities Act.
The Senior Secured Notes were issued under an Indenture, dated as
of January 15, 2010, by and among United, the guarantors named
therein, The Bank of New York Mellon Trust Company, N.A., as
trustee and Wilmington Trust FSB, as collateral trustee. The
Senior Secured Notes will mature on August 1, 2013. The interest
on the Senior Secured Notes is payable semi-annually on February 1
and August 1 of each year, beginning August 1, 2010. The Senior
Secured Notes will be senior secured obligations of United,
unconditionally guaranteed on a senior unsecured basis by the
Guarantors. The Senior Secured Notes will be secured by United's
route authority to operate between the United States and Japan and
beyond Japan to points in other countries, certain airport takeoff
and landing slots and airport gate leaseholds utilized in
connection with these routes. The Second Lien Notes were issued
under an Indenture, dated as of January 15, 2010, by and among
United, the Guarantors, the Trustee and the Collateral Trustee.
The Second Lien Notes will mature on November 1, 2013. The
interest on the Second Lien Notes is payable semi-annually on
February 1 and August 1 of each year, beginning August 1, 2010.
The Second Lien Notes will be junior secured obligations of
United, unconditionally guaranteed on a senior unsecured basis by
the Guarantors. The Second Lien Notes will be secured by the
Collateral on a junior lien basis. Under certain circumstances,
United may be required to pay special interest to holders of the
Notes, in an amount equal to 2% per annum of the principal amount
of the respective Notes, unless cured pursuant to the terms of the
applicable Indenture.
United, at its option, may redeem some or all of the Senior
Secured Notes at any time on or after February 1, 2012, at the
redemption prices specified in such notes, plus accrued and unpaid
interest and special interest, if any. In addition, at any time
prior to February 1, 2012, United, at its option, may redeem:
1) some or all of the Senior Secured Notes at a price equal to
100% of their principal amount plus a "make-whole" premium
and accrued and unpaid interest and special interest, if
any, and
2) up to 35% of the aggregate principal amount of the Senior
Secured Notes with the proceeds of certain equity offerings
at the redemption price specified in such notes.
In addition, at any time prior to February 1, 2013, United, at its
option, may redeem, during any 12-month period, up to 10% of the
original aggregate principal amount of the Senior Secured Notes at
a redemption price of 103% of their principal amount, plus accrued
and unpaid interest and special interest, if any.
United, at its option, may redeem some or all of the Second Lien
Notes at any time on or after February 1, 2012 at the redemption
prices specified in such notes, plus accrued and unpaid interest
and special interest, if any. In addition, at any time prior to
February 1, 2012, United, at its option, may redeem:
1) some or all of the Second Lien Notes at a price equal to
100% of their principal amount plus a "make-whole" premium
and accrued and unpaid interest and special interest, if
any, and
2) up to 35% of the aggregate principal amount of the Second
Lien Notes with the proceeds of certain equity offerings at
the redemption price specified in such notes.
About UAL Corporation
Based in Chicago, Illinois, UAL Corporation (NASDAQ: UAUA) --
http://www.united.com/-- is the holding company for United
Airlines, Inc. United Airlines is the world's second largest air
carrier. The airline flies to Brazil, Korea and Germany.
The company filed for Chapter 11 protection on Dec. 9, 2002
(Bankr. N.D. Ill. Case No. 02-48191). James H.M. Sprayregen,
Esq., Marc Kieselstein, Esq., David R. Seligman, Esq., and Steven
R. Kotarba, Esq., at Kirkland & Ellis, represented the Debtors in
their restructuring efforts. Fruman Jacobson, Esq., at
Sonnenschein Nath & Rosenthal LLP represented the Official
Committee of Unsecured Creditors. Judge Eugene R. Wedoff
confirmed a reorganization plan for United on Jan. 20, 2006. The
Company emerged from bankruptcy on Feb. 1, 2006. (United Airlines
Bankruptcy News; Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
UAL Corp. carries a 'Caa1' probability of default rating from
Moody's, 'B-' long term foreign issuer credit rating from Standard
& Poor's, and 'CCC' long term issuer default rating from Fitch.
UCBH HOLDINGS: Fitch Downgrades Issuer Default Rating to 'D'
------------------------------------------------------------
Fitch Ratings has downgraded the long-term Issuer Default Rating
to 'D' from 'C' and the Individual rating to 'F' from 'E' of UCBH
Holdings, Inc., as the company is in bankruptcy. Fitch also has
withdrawn all outstanding ratings of UCBH Holdings, Inc., and its
subsidiaries.
Fitch has taken these rating actions:
UCBH Holdings, Inc.
-- Long-term IDR downgraded to 'D' from 'C', withdrawn;
-- Short-term IDR downgraded to 'D' from 'C'; withdrawn;
-- Preferred Stock 'C/RR6'; withdrawn;
-- Individual downgraded to 'F' from 'E'; withdrawn;
-- Support '5'; withdrawn;
-- Support Floor 'NF'; withdrawn.
United Commercial Bank
-- Individual 'F'; withdrawn.
UCBH Trust Co.
UCBH Capital Trust I
UCBH Capital Trust II
UCBH Capital Trust III
UCBH Capital Trust IV
UCBH Capital Trust V
UCBH Holdings Statutory Trust I
UCBH Holdings Statutory Trust II
-- Trust Preferred Securities 'C/RR6'; withdrawn.
UNIGENE LABORATORIES: Delays Effective Date of Shelf Prospectus
---------------------------------------------------------------
Unigene Laboratories, Inc., has delayed the effective date of its
registration statement related to the issuance of $30 million in
Common Stock; Warrants to purchase common stock, debt securities
or units; Rights to purchase common stock, debt securities or
units; Debt Securities; and Units.
In a Form S-3 registration statement filed in December, the
Company said it intends to use the net proceeds from the sale of
the securities for general corporate purposes and other working
capital expenditures. Unigene will sell the securities to or
through underwriters or dealers, directly to a limited number of
purchasers or a single purchaser, through agents or through a
combination of any of these methods of sale, as designated from
time to time. If any agents or underwriters are involved in the
sale of any of these securities, the applicable prospectus
supplement will provide the names of the agents or underwriters
and any applicable fees, commissions or discounts.
Going Concern Doubt
At September 30, 2009, the Company's consolidated balance sheets
showed $25,838,000 in total assets and $56,333,000 in total
liabilities, resulting in a $30,495,000 shareholders' deficit.
"We need additional cash from increases in Fortical sales or
royalties, milestones from existing agreements or upfront payments
from new agreements or from financings in order to meet our near-
term obligations." This raises substantial doubt about the
Company's ability to continue as a going concern.
The Company's independent registered public accounting firm has
added an explanatory paragraph to their audit opinion issued in
connection with the financial statements for each of the years
ended December 31, 2008, 2007, and 2006, concerning the
substantial doubt about Unigene Laboratories' ability to continue
as a going concern.
About Unigene
Unigene Laboratories, Inc. OTCBB: UGNE) -- http://www.unigene.com/
-- is a biopharmaceutical company focusing on the oral and nasal
delivery of large-market peptide drugs. Due to the size of the
worldwide osteoporosis market, Unigene is targeting its initial
efforts on developing calcitonin and PTH-based therapies.
Fortical(R), Unigene's nasal calcitonin product for the treatment
of postmenopausal osteoporosis, received FDA approval and was
launched in 2005. Unigene has licensed the U.S. rights for
Fortical to Upsher-Smith Laboratories, worldwide rights for its
oral PTH technology to GlaxoSmithKline, worldwide rights for its
calcitonin manufacturing technology to Novartis and worldwide
rights (except for China) for its oral calcitonin program to Tarsa
Therapeutics, Inc. Unigene's patented oral delivery technology
has successfully delivered, in preclinical and/or clinical trials,
various peptides including calcitonin, PTH and insulin. Unigene's
patented manufacturing technology is designed to cost-effectively
produce peptides in quantities sufficient to support their
worldwide commercialization as oral or nasal therapeutics.
US AIRWAYS: 1st Circuit Rules on Rederford ADA Lawsuit
------------------------------------------------------
In the matter entitled Rederford v. U.S. Airways, Inc. pending
before the 1st Circuit Court of Appeals, the Court ruled on
December 17, 2009, that:
"A terminated airline employee's cause of action for
Disability discrimination under the Americans with
Disabilities Act (ADA) was a "claim" discharged in the
airline's Chapter 11 bankruptcy proceeding. Although the
employee asserted that she was entitled to the equitable
remedy of reinstatement, that remedy could be reduced to
money damages in the alternative. As such, the cause of
action was subject to discharge under the bankruptcy code's
broad definition of "claim."
About US Airways
US Airways, along with US Airways Shuttle and US Airways Express,
operates more than 3,200 flights per day and serves more than 200
communities in the U.S., Canada, Europe, the Middle East, the
Caribbean and Latin America. The airline employs more than 33,000
aviation professionals worldwide and is a member of the Star
Alliance network, which offers its customers more than 17,000
daily flights to 916 destinations in 160 countries worldwide. And
for the eleventh consecutive year, the airline received a Diamond
Award for maintenance training excellence from the Federal
Aviation Administration (FAA) for its Charlotte, North Carolina
hub line maintenance facility. For more company information,
visit http://www.usairways.com/
Under a Chapter 11 plan declared effective on March 31, 2003,
USAir emerged from bankruptcy with the Retirement Systems of
Alabama taking a 40% equity stake in the deleveraged carrier in
exchange for $240 million infusion of new capital.
US Airways and its subsidiaries filed another Chapter 11 petition
on September 12, 2004 (Bankr. E.D. Va. Case No. 04-13820). Brian
P. Leitch, Esq., Daniel M. Lewis, Esq., and Michael J. Canning,
Esq., at Arnold & Porter LLP, and Lawrence E. Rifken, Esq., and
Douglas M. Foley, Esq., at McGuireWoods LLP, represented the
Debtors in their restructuring efforts. In the Company's second
bankruptcy filing, it listed $8,805,972,000 in total assets and
$8,702,437,000 in total debts.
The USAir II bankruptcy plan became effective on September 27,
2005. The Debtors completed their merger with America West on the
same date. (US Airways Bankruptcy News; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000).
* * *
As reported by the TCR on September 25, 2009, Moody's affirmed US
Airways' Corporate Family and Probability of Default Ratings at
'Caa1'. US Airways Group carries a 'CCC' issuer default rating
from Fitch.
As of June 30, 2009, reorganized US Airways had total assets of
$7,858,000,000 against debts of $8,194,000,000, for a
stockholders' deficit of $336,000,000.
US AIRWAYS: Reports December Traffic Results
--------------------------------------------
US Airways Group, Inc., announced December, fourth quarter and
full-year 2009 traffic results. Mainline revenue passenger miles
(RPMs) for the month were 4.5 billion, down 3.6 percent versus
December 2008. Capacity was 5.7 billion available seat miles
(ASMs), down 2.4 percent versus December 2008. Passenger load
factor for the month of December was 79.3 percent, down 1.0 point
versus December 2008.
US Airways President Scott Kirby said, "Our December consolidated
(mainline and Express) passenger revenue per available seat mile
(PRASM) decreased approximately two percent versus the same period
last year while total revenue per available seat mile decreased
approximately one percent on a year-over-year basis. As we close
calendar year 2009, we are pleased our revenue performance
continued to show improvement with positive trends in both booked
yields and corporate revenue.
"We would also like to thank our 32,000 employees for their
tremendous efforts to take care of our customers during a
challenging holiday travel period. We continued our strong
operational performance throughout 2009 and look forward to
building upon that momentum into 2010."
For the first ten months of 2009, as reported by the U.S.
Department of Transportation (DOT), US Airways was number one in
on-time performance among the nation's five largest network
carriers. For the month of December, US Airways' preliminary on-
time performance as reported to the DOT was 75.2 percent with a
completion factor of 96.9 percent. Adverse winter weather and
new TSA-mandated security protocols impacted these metrics.
This summarizes US Airways Group's traffic results for the month,
quarter and full-year ended December 31, 2009 and 2008, consisting
of mainline operated flights as well as US Airways Express flights
operated by wholly owned subsidiaries PSA Airlines and Piedmont
Airlines:
US Airways Mainline
December
2009 2008 % Change
Mainline Revenue Passenger Miles (000)
Domestic 3,523,552 3,783,773 (6.9)
Atlantic 578,687 524,544 10.3
Latin 385,969 347,676 11.0
--------- ---------
Total 4,488,208 4,655,993 (3.6)
Mainline Available Seat Miles (000)
Domestic 4,383,398 4,617,875 (5.1)
Atlantic 752,776 720,175 4.5
Latin 525,607 462,879 13.6
--------- ---------
Total 5,661,781 5,800,929 (2.4)
Mainline Load Factor (%)
Domestic 80.0 81.9 (1.5) pts
Atlantic 76.9 72.8 4.1 pts
Latin 73.4 75.1 (1.7) pts
--------- ---------
Total Mainline Load Factor 79.3 80.3 (1.0) pts
Mainline Enplanements
Domestic 3,582,856 3,913,236 (8.4)
Atlantic 141,550 135,938 4.1
Latin 287,332 283,062 1.5
--------- ---------
Total Mainline Enplanements 4,011,738 4,332,236 (7.4)
QUARTER TO DATE
2009 2008 % Change
Mainline Revenue Passenger Miles (000)
Domestic 10,582,860 11,134,185 (5.0)
Atlantic 1,884,747 1,667,881 13.0
Latin 869,733 815,565 6.6
---------- ----------
Total 13,337,340 13,617,631 (2.1)
Mainline Available Seat Miles (000)
Domestic 13,126,292 13,672,603 (4.0)
Atlantic 2,420,674 2,279,525 6.2
Latin 1,174,101 1,075,336 9.2
---------- ----------
Total 16,721,067 17,027,464 (1.8)
Mainline Load Factor (%)
Domestic 80.6 81.4 (0.8)pts
Atlantic 77.9 73.2 4.7 pts
Latin 74.1 75.8 (1.7)pts
---------- ----------
Total 79.8 80.0 (0.2)pts
Mainline Enplanements
Domestic 10,967,871 11,696,230 (6.2)
Atlantic 466,347 431,311 8.1
Latin 683,191 678,731 0.7
---------- ----------
Total 12,117,409 12,806,272 (5.4)
YEAR TO DATE
2009 2008 % Change
Mainline Revenue Passenger Miles (000)
Domestic 44,314,111 47,914,796 (7.5)
Atlantic 9,341,654 8,525,523 9.6
Latin 4,235,006 4,129,494 2.6
---------- ----------
Total 57,890,771 60,569,813 (4.4)
Mainline Available Seat Miles (000)
Domestic 53,253,229 58,084,174 (8.3)
Atlantic 11,994,666 10,989,785 9.1
Latin 5,480,590 5,077,339 7.9
---------- ----------
Total 70,728,485 74,151,298 (4.6)
Mainline Load Factor (%)
Domestic 83.2 82.5 0.7 pts
Atlantic 77.9 77.6 0.3 pts
Latin 77.3 81.3 (4.0)pts
---------- ----------
Total 81.8 81.7 0.1 pts
Mainline Enplanements
Domestic 45,246,798 49,252,067 (8.1)
Atlantic 2,368,010 2,189,843 8.1
Latin 3,401,229 3,378,195 0.7
---------- ----------
Total 51,016,037 54,820,105 (6.9)
US Airways Express
(Piedmont Airlines, PSA Airlines)
December
2009 2008 % Change
Express Revenue Passenger Miles (000)
Domestic 160,474 164,208 (2.3)
Express Available Seat Miles (000)
Domestic 241,318 256,241 (5.8)
Express Load Factor (%)
Domestic 66.5 64.1 2.4 pts
Express Enplanements
Domestic 600,537 602,495 (0.3)
QUARTER TO DATE
2009 2008 % Change
Express Revenue Passenger Miles (000)
Domestic 519,751 509,325 2.0
Express Available Seat Miles (000)
Domestic 749,455 781,268 (4.1)
Express Load Factor (%)
Domestic 69.4 65.2 4.2 pts
Express Enplanements
Domestic 1,955,982 1,887,108 3.6
YEAR TO DATE
2009 2008 % Change
Express Revenue Passenger Miles (000)
Domestic 2,127,324 2,170,025 (2.0)
Express Available Seat Miles (000)
Domestic 3,126,779 3,244,253 (3.6)
Express Load Factor (%)
Domestic 68.0 66.9 1.1 pts
Express Enplanements
Domestic 7,905,484 7,839,737 0.8
Consolidated US Airways Group, Inc.
December
2009 2008 % Change
Consolidated Revenue Passenger Miles (000)
Domestic 3,684,026 3,947,981 (6.7)
Atlantic 578,687 524,544 10.3
Latin 385,969 347,676 11.0
---------- ----------
Total 4,648,682 4,820,201 (3.6)
Consolidated Available Seat Miles (000)
Domestic 4,624,716 4,874,116 (5.1)
Atlantic 752,776 720,175 4.5
Latin 525,607 462,879 13.6
---------- ----------
Total 5,903,099 6,057,170 (2.5)
Consolidated Load Factor (%)
Domestic 79.7 81.0 (1.3) pts
Atlantic 76.9 72.8 4.1 pts
Latin 73.4 75.1 (1.7) pts
---------- ----------
Total 78.7 79.6 (0.9) pts
Consolidated Enplanements
Domestic 4,183,393 4,515,731 (7.4)
Atlantic 141,550 135,938 4.1
Latin 287,332 283,062 1.5
---------- ----------
Total 4,612,275 4,934,731 (6.5)
QUARTER TO DATE
2009 2008 % Change
Consolidated Revenue Passenger Miles (000)
Domestic 11,102,611 11,643,510 (4.6)
Atlantic 1,884,747 1,667,881 13.0
Latin 869,733 815,565 6.6
---------- ----------
Total 13,857,091 14,126,956 (1.9)
Consolidated Available Seat Miles (000)
Domestic 13,875,747 14,453,871 (4.0)
Atlantic 2,420,674 2,279,525 6.2
Latin 1,174,101 1,075,336 9.2
---------- ----------
Total 17,470,522 17,808,732 (1.9)
Consolidated Load Factor (%)
Domestic 80.0 80.6 (0.6) pts
Atlantic 77.9 73.2 4.7 pts
Latin 74.1 75.8 (1.7) pts
---------- ----------
Total Consolidated Load Factor 79.3 79.3 - pts
Consolidated Enplanements
Domestic 12,923,853 13,583,338 (4.9)
Atlantic 466,347 431,311 8.1
Latin 683,191 678.731 0.7
---------- ----------
Total 14,073,391 14,693,380 (4.2)
YEAR TO DATE
2009 2008 % Change
Consolidated Revenue Passenger Miles (000)
Domestic 46,441,435 50,084,821 (7.3)
Atlantic 9,341,654 8,525,523 9.6
Latin 4,235,006 4,129,494 2.6
---------- ----------
Total 60,018,095 62,739,838 (4.3)
Consolidated Available Seat Miles (000)
Domestic 56,380,008 61,328,427 (8.1)
Atlantic 11,994,666 10,989,785 9.1
Latin 5,480,590 5,077,339 7.9
---------- ----------
Total 73,855,264 77,395,551 (4.6)
Consolidated Load Factor (%)
Domestic 82.4 81.7 0.7 pts
Atlantic 77.9 77.6 0.3 pts
Latin 77.3 81.3 (4.0) pts
---------- ----------
Total Consolidated Load Factor 81.3 81.1 0.2 pts
Consolidated Enplanements
Domestic 53,152,282 57,091,804 (6.9)
Atlantic 2,368,010 2,189,843 8.1
Latin 3,401,229 3,378,195 0.7
---------- ----------
Total 58,921,521 62,659,842 (6.0)
US Airways also initiated or announced new service offerings
during the month of December:
* Commenced its first-ever service to South America with
daily, nonstop service from its Charlotte hub to Rio de
Janeiro, Brazil. The year-round service, which originates
at the airline's Philadelphia hub, will be operated with
Boeing 767 aircraft with seating for 18 in Envoy, US
Airways' international business class, and 186 in the main
cabin
* Initiated new, daily, nonstop service between its largest
hub in Charlotte and Honolulu, Hawaii on the island of
Oahu. The year-round flight complements US Airways' daily
nonstop service to Oahu, Maui, Kauai and the Big Island
from its Phoenix hub. The flight will be operated with
Boeing 767 aircraft with seating for 18 in First Class and
186 in the main cabin.
* Announced daily, year-round nonstop service to Rome from
Charlotte beginning on May 13, 2010. The new flight will
complement US Airways' daily nonstop service to Rome from
Philadelphia, the airline's international gateway.
* Inaugurated the airline's first ever service to Montego
Bay, Jamaica from its Western U.S. hub at Phoenix Sky
Harbor International Airport. This new route complements
existing service to Jamaica from US Airways' two East Coast
hubs in Charlotte, N.C., and Philadelphia, as well as
Boston. Passengers will travel from Phoenix to Montego Bay
on an Airbus A319 aircraft with seating for 12 in First
Class and 112 in the main cabin.
* Unveiled new seasonal nonstop service to Anchorage, Alaska
from its Philadelphia hub to begin June 1, 2010,
complementing existing year-round Anchorage service from
Phoenix.
About US Airways
US Airways, along with US Airways Shuttle and US Airways Express,
operates more than 3,200 flights per day and serves more than 200
communities in the U.S., Canada, Europe, the Middle East, the
Caribbean and Latin America. The airline employs more than 33,000
aviation professionals worldwide and is a member of the Star
Alliance network, which offers its customers more than 17,000
daily flights to 916 destinations in 160 countries worldwide. And
for the eleventh consecutive year, the airline received a Diamond
Award for maintenance training excellence from the Federal
Aviation Administration (FAA) for its Charlotte, North Carolina
hub line maintenance facility. For more company information,
visit http://www.usairways.com/
Under a Chapter 11 plan declared effective on March 31, 2003,
USAir emerged from bankruptcy with the Retirement Systems of
Alabama taking a 40% equity stake in the deleveraged carrier in
exchange for $240 million infusion of new capital.
US Airways and its subsidiaries filed another Chapter 11 petition
on September 12, 2004 (Bankr. E.D. Va. Case No. 04-13820). Brian
P. Leitch, Esq., Daniel M. Lewis, Esq., and Michael J. Canning,
Esq., at Arnold & Porter LLP, and Lawrence E. Rifken, Esq., and
Douglas M. Foley, Esq., at McGuireWoods LLP, represented the
Debtors in their restructuring efforts. In the Company's second
bankruptcy filing, it listed $8,805,972,000 in total assets and
$8,702,437,000 in total debts.
The USAir II bankruptcy plan became effective on September 27,
2005. The Debtors completed their merger with America West on the
same date. (US Airways Bankruptcy News; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000).
* * *
As reported by the TCR on Sept. 25, 2009, Moody's affirmed US
Airways' Corporate Family and Probability of Default Ratings at
'Caa1'. US Airways Group carries a 'CCC' issuer default rating
from Fitch.
As of June 30, 2009, reorganized US Airways had total assets of
$7,858,000,000 against debts of $8,194,000,000, for a
stockholders' deficit of $336,000,000.
US AIRWAYS: To Release Full Year 2009 Results on January 28
-----------------------------------------------------------
US Airways Group, Inc., will conduct a live audio webcast of its
fourth quarter and full year 2009 financial results conference
call with the financial community on Thursday, Jan. 28 at
12:30 p.m. ET (10:30 a.m. MT).
The webcast will be available to the public on a listen-only basis
at the company's Web site, http://www.usairways.com. An
archive of the webcast will be available on the site through Feb.
28. Listeners to the webcast will need a current version of
Windows MediaPlayer software and at least a 28.8 kbps connection
to the Internet.
January 6 Investor Update
US Airways Group, Inc., delivered to the U.S. Securities and
Exchange Commission, on January 6, 2010, a report updating its
financial and operational outlook for 2009:
* Fleet/Liquidity Changes - On November 24, 2009 the Company
announced that it had restructured its existing aircraft
delivery schedule. The Company's actions included the
deferral of 54 Airbus aircraft previously scheduled for
delivery between 2010 and 2012 that are now to be delivered in
2013 and beyond. The Company will take delivery of two A320
and two A330 aircraft in 2010 and an additional 24 A320 family
aircraft in 2011 and 2012 (12 in the second half of 2011 and
12 in the second half of 2012). These deferrals will not
significantly alter the airline's capacity plans as aircraft
originally scheduled to be replaced will be retained until the
rescheduled new aircraft delivery dates.
These deferral arrangements will reduce the Company's aircraft
capital expenditures over the next three years by
approximately $2.5 billion, and reduce near- and medium-term
obligations to Airbus and others by approximately
$132 million.
* 2009 Capacity Guidance - For 2009, domestic mainline capacity
was down approximately eight percent while total mainline
capacity was down approximately five percent. Express
capacity was down approximately four percent.
US Airways entered into a term sheet to sell 10 of its Embraer
190 aircraft to Republic Airline Inc. As of November 24,
2009, all of the 10 aircraft sales have been completed. US
Airways will lease back eight of the 10 aircraft from Republic
for periods ranging from one to seven months. The impact to
mainline capacity was immaterial for 2009. The Company
continues to evaluate other options for the remaining 15
Embraer 190 aircraft. In addition, the Company expects to
incur a non-operating special charge (non-cash) of
approximately $49 million related to this transaction.
* Cash - As of September 30, 2009, the Company had approximately
$2.0 billion in total cash and investments, of which
$0.5 billion was restricted. In addition, as of September 30,
2009, the Company's Auction Rate Securities had a book value
of $228 million ($411 million par value). While these
securities are held as investments in non-current marketable
securities on our balance sheet, they are included in the
unrestricted cash calculation. During the third quarter, the
Company completed an underwritten public stock offering, which
included the sale of 29 million shares of common stock at a
price of $4.75 per share. The net proceeds from this
transaction after transaction costs, were approximately
$137 million and are included in the total cash and investments
balance. The Company expects to end the fourth quarter with
approximately $2.0 billion in total cash and investments, of
which $0.5 billion is restricted.
* Fuel - The Company's legacy fuel hedge positions are now
closed and the Company has not entered into any new hedge
contracts since the third quarter, 2008. For the fourth
quarter 2009, the Company anticipates paying between $2.03 and
$2.08 per gallon of jet fuel (including taxes).
* Profit Sharing/CASM - Profit sharing equals 10% of pre-tax
earnings excluding special items up to a 10% pre-tax margin
and 15% above the 10% margin.
* Cargo/Other Revenue - cargo revenue, ticket change fees,
excess/overweight baggage fees, first and second bag fees,
contract services, simulator rental, airport clubs, Materials
Services Company (MSC), and inflight service revenues. The
Company's a la carte revenue initiatives are expected to
generate in excess of $400 million in revenue in 2009.
* Taxes/NOL - As of December 31, 2008, the Company had
approximately $1.4 billion of gross net operating loss
carryforwards to reduce federal taxable income, substantially
all of which are available to reduce taxable income in 2009.
In the first nine months of 2009, the Company recognized a tax
loss, which increased Federal NOL available to approximately
$2.2 billion as of September 30, 2009.
The Company's net deferred tax asset, which includes the NOL, is
subject to a full valuation allowance. As a result, income tax
benefits are not recognized in the Company's statement of
operations. Future utilization of the NOL will result in a
corresponding decrease in the valuation allowance and offset the
Company's tax provision dollar for dollar. As of September 30,
2009, the Company's federal valuation allowance is $595 million
and the state valuation allowance is $88 million.
The Company reported a loss in the nine months ended
September 30, 2009, and did not recognize a tax provision in this
period. To the extent profitable for the full year 2009, the
Company will use NOL to reduce federal and state taxable income.
The Company does not expect to be subject to AMT liability in
2009; however, it could be obligated to record and pay state
income tax related to certain states where NOL may be limited or
not available to be used.
A full-text copy of the investor relations update is available
for free at http://ResearchArchives.com/t/s?4d6c
About US Airways
US Airways, along with US Airways Shuttle and US Airways Express,
operates more than 3,200 flights per day and serves more than 200
communities in the U.S., Canada, Europe, the Middle East, the
Caribbean and Latin America. The airline employs more than 33,000
aviation professionals worldwide and is a member of the Star
Alliance network, which offers its customers more than 17,000
daily flights to 916 destinations in 160 countries worldwide. And
for the eleventh consecutive year, the airline received a Diamond
Award for maintenance training excellence from the Federal
Aviation Administration (FAA) for its Charlotte, North Carolina
hub line maintenance facility. For more company information,
visit http://www.usairways.com/
Under a Chapter 11 plan declared effective on March 31, 2003,
USAir emerged from bankruptcy with the Retirement Systems of
Alabama taking a 40% equity stake in the deleveraged carrier in
exchange for $240 million infusion of new capital.
US Airways and its subsidiaries filed another Chapter 11 petition
on September 12, 2004 (Bankr. E.D. Va. Case No. 04-13820). Brian
P. Leitch, Esq., Daniel M. Lewis, Esq., and Michael J. Canning,
Esq., at Arnold & Porter LLP, and Lawrence E. Rifken, Esq., and
Douglas M. Foley, Esq., at McGuireWoods LLP, represented the
Debtors in their restructuring efforts. In the Company's second
bankruptcy filing, it listed $8,805,972,000 in total assets and
$8,702,437,000 in total debts.
The USAir II bankruptcy plan became effective on September 27,
2005. The Debtors completed their merger with America West on the
same date. (US Airways Bankruptcy News; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000).
* * *
As reported by the TCR on Sept. 25, 2009, Moody's affirmed US
Airways' Corporate Family and Probability of Default Ratings at
'Caa1'. US Airways Group carries a 'CCC' issuer default rating
from Fitch.
As of June 30, 2009, reorganized US Airways had total assets of
$7,858,000,000 against debts of $8,194,000,000, for a
stockholders' deficit of $336,000,000.
U.S. INTER-MEX: Voluntary Chapter 11 Case Summary
-------------------------------------------------
Debtor: U.S. Inter-Mex Transportation, LLC
301 E. Nolana, P.O. Box 4525
McAllen, TX 78502
Bankruptcy Case No.: 10-70033
Chapter 11 Petition Date: January 15, 2010
Court: United States Bankruptcy Court
Southern District of Texas (McAllen)
Judge: Richard S. Schmidt
Debtor's Counsel: Eduardo V. Rodriguez, Esq.
Malaise Law Firm
1265 N Expressway 83
Brownsville, TX 78521
Tel: (956) 547-9638
Fax: (956) 547-9630
Email: evrcourt@malaiselawfirm.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 Richard V. Martinez, president of the
Company.
V-STRATEGIC: Voluntary Chapter 11 Case Summary
----------------------------------------------
Debtor: V-Strategic Group,LLC
848 Brickell Avenue #1210
Miami, FL 33131
Bankruptcy Case No.: 10-10721
Chapter 11 Petition Date: January 14, 2010
Court: United States Bankruptcy Court
Southern District of Florida (Miami)
Judge: Robert A. Mark
Debtor's Counsel: Henry Hernandez, Esq.
7955 NW 12 St., Ste 429
Miami, FL 33126
Tel: (305) 599-8999
Fax: (305) 599-4112
Email: bankruptcy@hernandez-law.com
Estimated Assets:
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 Joe M. Ventura, managing member of the
Company.
VELOCITY EXPRESS: Debtor Now VEC Liquidating Following Assets Sale
------------------------------------------------------------------
The Hon. Mary F. Walrath of the U.S. Bankruptcy Court for the
District of Delaware approved the change of Velocity Express
Corporation, et al.'s names and caption of the Debtors' Chapter 11
cases.
In November 2009, the Bankruptcy Court approved the sale of
Velocity Express' operating assets to a subsidiary of ComVest
Investment Partners III, L.P., a leading private investment firm
with a proven track record in the transportation industr.
The changes will be:
Old Name New Name
------- --------
Velocity Express Corporation VEC Liquidating Corporation
Velocity Express, Inc. MCTS2
Velocity Express Leasing, Inc. MCTS3
CD&L, Inc. MCTS4
VXP Mid-West, Inc. MCTS5
VXP Mid-West Leasing, Inc. MCTS6
Clayton/National Courier
Systems, Inc. MCTS7
Click Messenger Service, Inc. MCTS8
Olympic Courier Systems, Inc. MCTS9
Securities Courier Corporation MCTS10
Silver Star Express, Inc. MCTS11
Velocity Express -- http://www.velocityexpress.com/-- has one of
the largest nationwide networks of regional, time definite, ground
delivery service areas, providing a national footprint for
customers desiring same day service throughout the United States.
The Company's services are supported by a customer-focused
technology infrastructure, providing customers with the
reliability and information they need to manage their
transportation and logistics systems, including a proprietary
package tracking system that enables customers to view the status
of any package via a flexible web reporting system.
Velocity, together with 12 affiliates, filed for Chapter 11 on
Sept. 24, 2009 (Bankr. D. Del. Case No. 09-13294). The Company
listed assets of $94.1 million and debt of $120.6 million as of
Sept. 1.
ComVest Velocity Acquisition I, LLC, buyer of the Debtors' assets,
is represented in the case by Kenneth G. Alberstadt, Esq., at
Akerman Senterfitt LLP in New York.
DIP Lender Burdale is represented in the case by Jonathan M.
Cooper, Esq., Randall L. Klein, Esq., and Sarah J. Risken, Esq.,
at Goldberg Kohn Bell Black Rosenbloom & Moritz, LTD., in Chicago,
Illinois.
WAVE SYSTEMS: Gets $5.7MM in Maintenance Orders for Automaker
-------------------------------------------------------------
Wave Systems Corp. has received a series of significant license
and maintenance orders for its EMBASSY(R) Remote Administration
Server (ERAS) software for a U.S.-based automotive company for
managing its worldwide employees' laptop computers equipped with
hardware-based, self-encrypting drives for the protection of
sensitive customer, financial, competitive and other confidential
data.
The orders were received by Wave through an OEM partner in late
December and total approximately $5.7 million. On average, the
orders account for tens of thousands of new licenses per year for
each of the next three years, along with maintenance orders for
each of the next five years. The orders include approximately
$1.9 million for software licenses (and annual maintenance)
delivered and invoiced at the end of 2009; approximately
$2.25 million for additional software licenses (and annual
maintenance) to be delivered and invoiced at the end of 2010;
approximately $1.07 million for additional software licenses (and
annual maintenance) to be delivered and invoiced at the end of
2011 and for annual maintenance to be invoiced at the end of 2012
and 2013, respectively. Consistent with Wave's revenue
recognition policies for licenses and maintenance, the orders are
expected to be recognized as revenue over a 365-day period from
the date of invoice. Non-invoiced orders are cancellable on 30
days notice to Wave.
Steven Sprague, President and CEO of Wave Systems, commented,
"These orders -- which are by far our largest to date for ERAS
software -- acknowledge the importance and value of securing
mission-critical corporate data using hardware encryption."
Wave's EMBASSY Trusted Drive Manager client software, which works
in conjunction with ERAS, comes bundled with each self-encrypting
drive available through certain PC OEMs.
In addition to self-encrypting drives, ERAS can also manage
Trusted Platform Modules (TPMs), widely deployed security chips
that can securely authenticate users and devices. In 2009 the TPM
was recognized as an international standard by the International
Organization for Standardization (ISO) and the International
Electrotechnical Commission (IEC).
About Wave Systems
Wave Systems Corp. -- http://www.wave.com/-- develops, produces
and markets products for hardware-based digital security,
including security applications and services that are
complementary to and work with the specifications of the Trusted
Computing Group -- http://www.trustedcomputinggroup.org/-- an
industry standards organization comprised of computer and device
manufacturers, software vendors and other computing products
manufacturers. Specifications developed by the TCG are designed
to address a broad range of current and evolving digital security
issues. The issues include: identity protection, data security,
digital signatures, electronic transaction integrity, platform
trustworthiness, network security and regulatory compliance.
Going Concern
At September 30, 2009, the Company had $5,607,313 in total assets
against $7,088,090 in total liabilities, resulting in
stockholders' deficit of $1,480,777. The September 30 balance
sheet showed strained liquidity: The Company had $5,197,098 in
total assets against $6,888,675 in total liabilities.
Wave has said it may not have sufficient cash to fund operations
for the 12-months ending September 30, 2010, and may engage in
financing activities to generate additional funding to cover its
operating costs for the 12-months ending September 30, 2010.
Due to Wave's current cash position, its capital needs over the
next year and beyond and the uncertainty as to whether Wave will
achieve its sales forecast for its products and services,
substantial doubt exists with respect to Wave's ability to
continue as a going concern.
WEST FELICIANA: Voluntary Chapter 11 Case Summary
-------------------------------------------------
Debtor: West Feliciana Acquisition, LLC
2105 LA Hwy 964
Saint Francisville, LA 70775
Bankruptcy Case No.: 10-10053
Chapter 11 Petition Date: January 17, 2010
Court: United States Bankruptcy Court
Middle District of Louisiana (Baton Rouge)
Judge: Christopher S. Sontchi
Debtors' Counsel: Louis M. Phillips, Esq.
One American Place
301 Main Street, Suite 1600
Baton Rouge, LA 70801
Tel: (225) 381-9643
Fax: (225) 336-9763
Email: lphillips@gordonarata.com
Estimated Assets: $50,000,001 to $100,000,000
Estimated Debts: $10,000,001 to $50,000,000
The petition was signed by F. Allen Byrd, the company's chief
executive officer.
WHITEHALL JEWELERS: Can Use Term Lenders Cash Until February 28
---------------------------------------------------------------
The Hon. Kevin Gross of the U.S. Bankruptcy Court for the District
of Delaware authorized WJ Holdings Liquidating Company fka
Whitehall Jewelers Holdings, Inc., et al., to:
-- use their term lenders' cash collateral until February 28,
2010, in accordance with the budget; and
-- make distribution to PWJ Lending II LLC, as agent for the
term lenders, from cash on hand.
A hearing on the Debtors' use of the cash collateral beyond
February 28 will be held on February 23, 2010, at 11:00 a.m.
As reported in the Troubled Company Reporter on January 5, 2010,
the Debtors requested for an extension until March 31, 2010.
The Debtors would use the cash collateral to fund their business
postpetition.
The Debtors also related that they are addressing their remaining
wind-down issues, including the pursuit of the remaining assets,
and the reconciliation of, objection to or settlement of claims
asserted against their estates. The Debtors are in discussions
with PWJ and the creditors committee with respect to the final
resolution of the Debtors' estates and the ultimate disposition of
the Debtors' cases.
As reported in the Troubled Company Reporter on March 25, 2009,
the Debtors related that the payment of the interim distribution
to PWJ will not prejudice the Debtors since up to $15 million of
PWJ's secured claims is entitled to priority in payment over
allowed unsecured claims in accordance with the Global Settlement
Agreement among the Debtors, the Debtors' pre- and postpetition
lenders, the Committee of Unsecured Creditors, and various
participating consignment vendors. The Global Settlement
Agreement resolved fully and finally all disputes concerning,
among other things, competing interests in the Debtors' consigned
merchandise, well as certain other claims among the parties.
Headquartered in Chicago, Illinois, Whitehall Jewelers Holdings,
Inc. -- http://www.whitehalljewellers.com/-- through its
subsidiary, Whitehall Jewelers, Inc., operates as a specialty
retailer of fine jewelry in the United States. It offers a
selection of merchandise, including diamonds, gold, precious and
semi-precious jewelry, and watches. As of June 23, 2008, it
operated 373 stores in regional and super-regional shopping malls
under the names Whitehall and Lundstrom.
The Company and Whitehall Jewelers, Inc., filed for Chapter 11
relief on June 23, 2008 (Bankr. D. Del. Lead Case No. 08-11261).
Scott Rutsky, Esq., Peter Antoszyk, Esq., Adam T. Berkowitz, Esq.,
and Jesse I. Redlener, Esq., at Proskauer Rose LLP, represent the
Debtors as bankruptcy counsel. James E. O'Neill, Esq., and Laura
Davis Jones, Esq., at Pachulski, Stang Ziehl & Jones, LLP,
represent the Debtors as Delaware counsel. Epiq Bankruptcy
Solutions LLC is the claims, noticing and balloting agent.
In its schedules, Whitehall Jewelers, Inc., listed total assets of
$246,571,775 and total debts of $173,694,918.
WOOD RIDGE DEVELOPMENT: Voluntary Chapter 11 Case Summary
---------------------------------------------------------
Debtor: Wood Ridge Development, Inc.
dba Carothers Crossing
7279 Carothers Parkway
Nolensville, TN 37135
Bankruptcy Case No.: 10-00325
Chapter 11 Petition Date: January 15, 2010
Debtor-affiliate filing separate Chapter 11 petition:
Debtor Case No.
------ --------
Wood Ridge Investments, LLC 10-00332
Court: United States Bankruptcy Court
Middle District of Tennessee (Nashville)
Judge: Marian F. Harrison
Debtor's Counsel: Robert J Welhoelter, Esq.
Robert J. Welhoelter, Attorney at Law
320 31st Avenue North, Suite A
Nashville, TN 37203
Tel: (615) 760-5871
Fax: (615) 760-5873
Email: rjwelho@gmail.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 Don B. Smithson, president of the
Company.
WORKSTREAM INC: Posts $341,000 Net Loss in November 30 Quarter
--------------------------------------------------------------
Workstream Inc. reported a net loss of $341,132 on net revenues of
$5,030,119 for the three months ended November 30, 2009, compared
to a net loss of $1,349,629 on net revenues of $5,144,323 for the
same period ended November 30, 2008.
For the six months ended November 30, 2009, the Company had net
revenues of $9,241,864 and a net loss of $701,014, compared to net
revenues of $10,697,209 and a net loss of $3,401,202 for the same
period ended November 30, 2008.
Balance Sheet
At November 30, 2009, the Company's consolidated balance sheets
showed $23,304,765 in total assets and $30,626,859 in total
liabilities, resulting in a $7,322,094 shareholders' deficit.
The Company's consolidated balance sheets at November 30, 2009,
also showed strained liquidity with $4,915,174 in total current
assets available to pay $8,402,764 in total current liabilities.
As of November 30, 2009, the Company has approximately $1,194,000
in cash and cash equivalents, which primarily consists of deposits
held with banks, compared to approximately $1,644,000 at May 31,
2009. The decrease was primarily due to funding for the rewards
programs and seasonal lack of annual billings in the first quarter
of each fiscal year.
A full-text copy of the Company's quarterly report on Form 10-Q is
available at no charge at http://researcharchives.com/t/s?4d89
Going Concern Doubt
The opinion of the Company's independent registered public
accounting firm on the audited financial statements as of and for
the year ended May 31, 2009, contained an explanatory paragraph
regarding substantial doubt about the Company's ability to
continue as a going concern.
The Company has incurred substantial losses in recent periods and,
as a result, has a shareholders' deficit of $7,322,094 as of
November 30, 2009. Losses for the six months ended November 30,
2009 were $701,014 and losses for the years ended May 31, 2009,
and 2008, were $4,856,356 and $52,616,875, respectively.
"The Company's ability to continue as a going concern depends upon
its ability to successfully refinance approximately $21.6 million
of its senior secured notes payable, including accrued interest
thereon, generate positive cash flows from operations and obtain
sufficient additional financing, if necessary. The senior secured
notes went into default on May 22, 2009, due to the Company's
suspension of trading on the NASDAQ Stock Market as a result of
its shareholders' deficit. Such Notes were restructured on
December 11, 2009."
About Workstream Inc.
Workstream Inc. -- http://www.workstreaminc.com/-- is a provider
of services and web-based software applications that address the
needs of companies to more effectively manage their Human Capital
Management functions. HCM is the process by which companies
recruit, train, compensate, evaluate performance, motivate,
develop and retain their employees.
WP HICKMAN: Court to Consider Plan Confirmation Tomorrow, Jan. 21
-----------------------------------------------------------------
The Hon. M. Bruce McCullough of the U.S. Bankruptcy Court for the
Western District of Pennsylvania will consider on January 21,
2010, at 10:30 a.m. (EST), the confirmation of W.P. Hickman
Systems, Inc., et al.'s Plan of Liquidation. The hearing will be
held at Courtroom B, 54th Floor U.S. Steel Tower, 600 Grant
Street, Pittsburg, Pennsylvania.
As reported in the Troubled Company Reporter on November 11, 2009,
according to the Disclosure Statement, the Plan divides the Claims
against the Debtors into 5 Classes and designates the equity
interests in the Debtors as a separate Class:
Class 1 - Secured Claims. Each holder of an allowed secured
claim, will receive, at the option of the Reorganized Debtors, and
in full satisfaction of the claim.
Class 2 - Priority Non-Tax Claims. Each holder of an allowed
priority non-tax claim, if any, will receive cash in an amount
equal to 100% of the unpaid amount of their respective allowed
priority non-tax claim.
Class 3 - FirstMerit Unsecured Claim. Specifically, pursuant to
the Bankruptcy Court's final order dated Feb. 27, 2009, FirstMerit
will have an allowed non-priority general unsecured claim in the
total amount of $2,105,604. FirstMerit will receive, prior to any
distribution to holders of General unsecured claims, priority tax
claims, and priority non-tax claims, but after payment in full of:
(i) all fees and expenses of litigation and otherwise monetizing
the proceeds; and (ii) all allowed administrative claims, the
first $300,000, plus the priority FirstMerit claim, from the
proceeds of any causes of action as the amount become available.
Class 4 - General Unsecured Claims. Each holder of an allowed
general unsecured claim will receive, in one or more distributions
as permitted under the Plan, the lesser of (i) cash in an amount
equal to 100% of the unpaid amount of their allowed general
unsecured claim, or (ii) their ratable proportion of the Debtor's
cash.
Class 5 - Warranty Claims. Holders of Warranty Claims will not
receive any distribution.
Class 6 - Equity Interests. All equity interests will be deemed
cancelled and extinguished. Holders of equity interests will not
receive any distribution.
Under the Plan, holders of Class 3 Claim and Class 4 Claims will
receive a distribution in an amount less than the amount they are
owed. Accordingly, holders of Claims in Class 3 and Class 4 are
impaired and are entitled to vote to accept or reject the Plan.
Class 1 and Class 2 are not impaired under the Plan and,
therefore, are not entitled to vote on it. Class 5 and Class 6
are impaired, but because those Classes will likely receive no
distribution under the Plan, holders of Warranty Claims and Equity
Interests are not entitled to vote on the Plan. Thus, the Debtors
will not solicit votes from members of Classes 1, 2, 5 and 6.
The Reorganized Debtors will use the Remaining Assets in order to
fund the Plan. The Reorganized Debtors will continue prosecuting
and commence any other causes of action and will liquidate any
remaining assets and use the proceeds of the litigation and sales
to fund the Plan. Liquidation and sales of remaining assets after
the Effective Date will not be subject to further Bankruptcy Court
Order, provided however, consistent with section 6.10 of the Plan,
settlement of any Causes of Action will be subject to approval of
the Bankruptcy Court if the amount claimed by the Reorganized
Debtors against a defendant is unliquidated or equals to or
exceeds $100,000. The Reorganized Debtors may settle any or all
causes of action as it deems appropriate, without the need to
obtain approval or any other or further relief from the Bankruptcy
Court, if the amount claimed by the Reorganized Debtors against a
defendant is less than $100,000. The payments to be made to
holders of allowed claims will be made by the disbursing agent in
accordance with the Plan.
A full-text copy of the Disclosure Statement is available for free
at http://bankrupt.com/misc/WPHICKMAN_DS.pdf
A full-text copy of the Joint Plan of Liquidation is available for
free at http://bankrupt.com/misc/WPHICKMAN_planofLiquidation.pdf
Headquartered in Solon, Ohio, W.P. Hickman Systems, Inc. --
http://www.wphickman.com/-- offers commercial roofing products.
The Debtors engage in providing services to the federal government
through its GSA certification and are involved in major buying
groups including Sodexho-USA, Horizon Resource Group and U.S
Community Services. The company and its affiliates filed for
Chapter 11 protection on Oct. 2, 2008 (Bankr. W.D. Pa. Lead Case
No. 08-26591). Paul J. Cordaro, Esq., and Aurelius P. Robleto,
Esq., at Campbell & Levine LLC represent the Debtors in their
restructuring efforts. James E. Van Horn, Esq., at McGuireWoods
LLP represent the Official Committee of Unsecured Creditors as
counsel. W.P. Hickman listed assets of between $10 million and
$50 million, and the same range of debts.
* Paul Berkowitz Returns to Greenberg Traurig
---------------------------------------------
James P.S. Leshaw, Esq., a shareholder at Greenberg Traurig,
P.A., disclosed in a document filed in TOUSA Inc.'s Chapter 11
case that Paul Berkowitz, executive vice president of TOUSA, Inc.,
was a shareholder of Greenberg Traurig for the period from
September 30, 1993, until December 31, 2006. Mr. Leshaw noted
that Mr. Berkowitz had an outstanding offer to return to Greenberg
Traurig upon termination of his employment with TOUSA.
Mr. Berkowitz and TOUSA subsequently agreed to sever Mr.
Berkowitz' employment with TOUSA effective December 31, 2009.
Mr. Berkowitz thus re-joined Greenberg Traurig as an attorney and
shareholder effective January 1, 2010. According to Mr.
Berkowitz, he expects to be employed by TOUSA to provide legal
services as an attorney at Greenberg Traurig and be paid on an
hourly basis.
* Upcoming Meetings, Conferences and Seminars
---------------------------------------------
January 27-29, 2010
TURNAROUND MANAGEMENT ASSOCIATION
Distressed Investing Conference, Bellagio, Las Vegas
Contact: http://www.turnaround.org/
Feb. 21-23, 2010
INSOL
International Annual Regional Conference
Madinat Jumeirah, Dubai, UAE
Contact: 44-0-20-7929-6679 or http://www.insol.org/
April 20-22, 2010
TURNAROUND MANAGEMENT ASSOCIATION
Sheraton New York Hotel and Towers, New York, NY
Contact: http://www.turnaround.org/
Apr. 29-May 2, 2010
AMERICAN BANKRUPTCY INSTITUTE
Annual Spring Meeting
Gaylord National Resort & Convention Center, Maryland
Contact: 1-703-739-0800; http://www.abiworld.org/
June 17-20, 2010
AMERICAN BANKRUPTCY INSTITUTE
Central States Bankruptcy Workshop
Grand Traverse Resort and Spa, Traverse City, Michigan
Contact: 1-703-739-0800; http://www.abiworld.org/
July 7-10, 2010
AMERICAN BANKRUPTCY INSTITUTE
Northeast Bankruptcy Conference
Ocean Edge Resort, Brewster, Massachusetts
Contact: 1-703-739-0800; http://www.abiworld.org/
July 14-17, 2010
AMERICAN BANKRUPTCY INSTITUTE
Southeast Bankruptcy Conference
The Ritz-Carlton Amelia Island, Amelia, Fla.
Contact: http://www.abiworld.org/
Aug. 5-7, 2010
AMERICAN BANKRUPTCY INSTITUTE
Mid-Atlantic Bankruptcy Workshop
Hyatt Regency Chesapeake Bay, Cambridge, Maryland
Contact: 1-703-739-0800; http://www.abiworld.org/
Oct. 6-8, 2010
TURNAROUND MANAGEMENT ASSOCIATION
TMA Annual Convention
JW Marriott Grande Lakes, Orlando, Florida
Contact: http://www.turnaround.org/
Dec. 2-4, 2010
AMERICAN BANKRUPTCY INSTITUTE
22nd Annual Winter Leadership Conference
Camelback Inn, Scottsdale, Arizona
Contact: 1-703-739-0800; http://www.abiworld.org/
Mar. 31-Apr. 3, 2011
AMERICAN BANKRUPTCY INSTITUTE
Annual Spring Meeting
Gaylord National Resort & Convention Center, Maryland
Contact: 1-703-739-0800; http://www.abiworld.org/
June 9-12, 2011
AMERICAN BANKRUPTCY INSTITUTE
Central States Bankruptcy Workshop
Grand Traverse Resort and Spa
Traverse City, Michigan
Contact: http://www.abiworld.org/
October 25-27, 2011
TURNAROUND MANAGEMENT ASSOCIATION
Hilton San Diego Bayfront, San Diego, CA
Contact: http://www.turnaround.org/
Dec. 1-3, 2011
AMERICAN BANKRUPTCY INSTITUTE
23rd Annual Winter Leadership Conference
La Quinta Resort & Spa, La Quinta, California
Contact: 1-703-739-0800; http://www.abiworld.org/
The Meetings, Conferences and Seminars column appears in the
Troubled Company Reporter each Wednesday. Submissions via
e-mail to conferences@bankrupt.com are encouraged.
Last Updated: December 6, 2009
*********
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A list of Meetings, Conferences and Seminars appears in each
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conferences@bankrupt.com/
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then-ending.
For copies of court documents filed in the District of Delaware,
please contact Vito at Parcels, Inc., at 302-658-9911. For
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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.
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*** End of Transmission ***