/raid1/www/Hosts/bankrupt/TCR_Public/100416.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Friday, April 16, 2010, Vol. 14, No. 104
Headlines
146-148 CORTLANDT: Voluntary Chapter 11 Case Summary
2151 HOTEL: Case Summary & 20 Largest Unsecured Creditors
4101 LOUISANA: Voluntary Chapter 11 Case Summary
450 MADISON: Case Summary & 20 Largest Unsecured Creditors
9064 HWY: Voluntary Chapter 11 Case Summary
ABC MANAGEMENT: Voluntary Chapter 11 Case Summary
ALAMO IRON: Section 341(a) Meeting Scheduled for April 26
ALAMO IRON: U.S. Trustee Appoints Three Members to Creditors Panel
ALASKAN ADVENTURE: Voluntary Chapter 11 Case Summary
ALEXANDER LOPEZ: Case Summary & 18 Largest Unsecured Creditors
ALLIED DEFENSE: Posts $8.3 Million Net Loss in 2009
AMBRILIA BIOPHARMA: Obtains a Fourth Extension of CCAA Stay Order
AMERICAN TONERSERV: Posts $3.1 Million Net Loss in 2009
AMR CORPORATION: To Release Q1 2010 Earnings on April 21
ATLANTIC COAST: Court Dismisses Reorganization Case
ATRIUM COMPANIES: Court Fixes June 11 as Claims Bar Date
ATP OIL: Moody's Junks Corporate Family Rating; Outlook Positive
AUTONATION INC: Moody's Assigns 'Ba2' Rating on $1.06 Bil. Loan
AUTONATION INC: S&P Assigns 'BB+' Rating on $581.6 Mil. Loan
AVIZA TECHNOLOGY: Wins Confirmation of Liquidating Plan
AXCAN PHARMA: Moody's Reviews 'B1' Corporate Family Rating
BANK OF NEW ENGLAND: No Postpetition Interest for Junior Debt
BEAM MANAGEMENT: Involuntary Chapter 11 Case Summary
BERNARD MADOFF: Trustee to Ease Terms of Surge Trading Sale
BUTTRUM SURPRISE: Voluntary Chapter 11 Case Summary
C&S WHOLESALE: S&P Assigns 'BB-' Corporate Credit Rating
CAMERON-811: Cash Collateral Hearing Scheduled for April 28
CAMERON-811: Taps Cordray Wagner as Bankruptcy Counsel
CAPITOL CITY: Significant Operating Losses Cue Going Concern Doubt
CATALINA LIGHTING: Evolution Lighting to Acquire Assets
CHA HAWAII: No Trustee After Unintentional Cash Collateral Use
CHARTER COMMUNICATIONS: Prices $1.6 Billion Senior Notes Offering
CCO HOLDINGS: Moody's Assigns 'B2' Ratings on New Senior Notes
CCO HOLDINGS: S&P Assigns 'B' Rating on $1.6 Bil. Senior Notes
CHAPARRAL ENERGY: S&P Raises Corporate Credit Rating to 'B'
CLEAVER-BROOKS INC: S&P Assigns Corporate Credit Rating at 'B'
COACHMEN INDUSTRIES: HIG All American Holds 69.97% of Shares
CM REALTY: Case Summary & 7 Largest Unsecured Creditors
CONCRETE SOLUTIONS: Case Summary & 20 Largest Unsecured Creditors
CONTINENTAL AIRLINES: In Talks with UAL About Potential Tie-up
CORNELL-PINGRY ARMS: Case Summary & 20 Largest Unsecured Creditors
COTT CORPORATION: Moody's Raises Corporate Family Rating to 'B2'
CRAIG HART: Case Summary & 7 Largest Unsecured Creditors
CREDITWEST CORP: Section 341(a) Meeting Scheduled for April 30
CREDITWEST CORP: Files List of 20 Largest Unsecured Creditors
DELTA MUTUAL: Sells 1 Million Shares to Private Investor
DENNY'S CORP: Says Franchisees' Group Supports Management
DEUCE INVESTMENTS: No Creditors Committee Appointed in Case
DEUCE INVESTMENTS: Taps Stubbs & Perdue as Bankruptcy Counsel
DIAMOND DECISIONS: Ch. 11 Trustee Taps Levene Neale as Counsel
DYNAMIC BUILDERS: Wants to Obtain Unsecured Loan From Bonins
FELICIANO ARTABA: Case Summary & 16 Largest Unsecured Creditors
FIN'L GUARANTY: Sharps Reveals Tender Procedures for Offer
FREMONT GENERAL: Signature Files Amended Plan of Reorganization
FRONTERA COPPER: Revises Terms for Consensual Note Restructuring
GEMS TV: Section 341(a) Meeting Scheduled for May 12
GEMS TV: Wants Schedules Filing Deadline Extended Until June 4
GENERAL GROWTH: Appoints Sheli Rosenberg to Board of Directors
GENERAL MOTORS: Opel Meet in Germany May Not Yield Final Decision
GENERAL MOTORS: New GM Recalls 1.3MM Compacts on Steering Problem
GENERAL MOTORS: Walter Borst Named Promark Head, VP for New GM
GENERAL MOTORS: Discloses Material Provisions of Capital Stock
GENERAL MOTORS: Old GM Objects to Rudolph Town's $80-Bil. Claim
GENERAL MOTORS: J. Mealer Wants Protocol for Administering Claims
GOLDBERG-BAYMEADOWS: Files List of 20 Largest Unsecured Creditors
GOLDSTAKE EXPLORATIONS: Provides First Default Status Report
GORDON PARK: Case Summary & 6 Largest Unsecured Creditors
GRAFTECH INTERNATIONAL: Moody's Puts 'Ba1' Rating on $230MM Loan
GREATER GERMANTOWN: Section 341(a) Meeting Scheduled for May 11
GROWER CRANE: Case Summary & 5 Largest Unsecured Creditors
GSC INVESTMENT: Enters Into Definitive Deal with Saratoga
HCA INC: Adopts 2010 Sr. Officer Performance Excellence Program
HCA INC: Delays Exchange Offer for Freely Tradable Secured Notes
HCA INC: Lenders Extend $2-Bil. Tranche B Term Loans Until 2017
HCA INC: Major Shareholder Hercules Re-elects 13 Directors
HICKS SPORTS: Texas Rangers May Be Forced into Bankruptcy
HIGH RIVER: Posts First Default Status Report
HOLIDAY 360: Section 341(a) Meeting Scheduled for May 7
HILYER PROPERTIES: Case Summary & 3 Largest Unsecured Creditors
HOMEBANC MORTGAGE: Suit Against Ex-Executives Dismissed
INNOVATIVE TECHNOLOGY: Files List of Largest Unsecured Creditors
INNOVATIVE COMPANIES: Wants Plan Filing Extended Until June 12
INTERNATIONAL WIRE: Moody's Assigns 'B2' Corporate Family Rating
INTERNATIONAL WIRE: S&P Assigns 'B' Corporate Credit Rating
JAMES MORAN: Case Summary & 10 Largest Unsecured Creditors
JEFFERY HERNANDEZ: Case Summary & 14 Largest Unsecured Creditors
JEWELED OBJECTS: Voluntary Chapter 11 Case Summary
KID'S DOMAIN: Voluntary Chapter 11 Case Summary
KINSLEY FOREST: U.S. Trustee Unable to Form Creditors Committee
KJS SAMS: Voluntary Chapter 11 Case Summary
LEATHERSTOCKING ANTIQUES: Case Summary & Creditors List
LEHMAN BROTHERS: Sues IRS for $110 Million in Tax Refunds
LEHMAN BROTHERS: Wins Nod to Pay Fees of Cayman-Based SPVs
LEHMAN BROTHERS: LBCC Proposes to Assign LBI Claims
LEHMAN BROTHERS: Presents Claims Resolution Procedures
LEHMAN BROTHERS: Court OKs Deal on JPM's $7.68-Bil. Claim
LEHMAN BROTHERS: Has Nod to Restructure Hilton's $21-Bil. Loan
LEHMAN BROTHERS: Examiner Names Auction Players in Full Report
LEO KRAMER: Case Summary & 9 Largest Unsecured Creditors
LEROY WRIGHT: Case Summary & 7 Largest Unsecured Creditors
LOGOS AVIATION: Voluntary Chapter 11 Case Summary
LITO SALES: Case Summary & 16 Largest Unsecured Creditors
LYDIA CLADEK: Section 341(a) Meeting Scheduled for May 5
LYDIA CLADEK: Files Schedules of Assets & Liabilities
LYONDELL CHEMICAL: Citgo Balks at Lyondell's Proposed Cure Costs
MAIN STREET: Voluntary Chapter 11 Case Summary
MAJESTIC STAR: Lenders Say Casino Mortgages Valid
MARIAM GABRA: Case Summary & 11 Largest Unsecured Creditors
MARSH HAWK: Section 341(a) Meeting Scheduled for April 29
MFB REGENCY: Case Summary & 3 Largest Unsecured Creditors
MGM MIRAGE: Prices $1.0 Billion in Convertible Senior Notes
MICHAEL FERRIS: Case Summary & 20 Largest Unsecured Creditors
MISSION REAL: Asks for Court Approval to Sell Property
MJG BAKERS: Voluntary Chapter 11 Case Summary
MMR HOLDINGS: Voluntary Chapter 11 Case Summary
MONEYGRAM INT'L: Board OKs Amendments to Compensation Plans
MONEYGRAM INT'L: Names 4 Candidates for Election to Board
MONEYGRAM INT'L: Settles Stockholder Action on Subprime Losses
MOUNTAIN RESORT: Section 341(a) Meeting Scheduled for May 17
MOUNTAIN RESORT: Files List of Two Largest Unsecured Creditors
NATIONAL CENTURY: Bankruptcy Court Examines Barton Doctrine
NAVDEEP JAGGI: Case Summary & 37 Largest Unsecured Creditors
NCO GROUP: Moody's Downgrades Corporate Family Rating to 'B3'
NEWPAGE CORP: Unit Sells Hawkesbury Assets for C$80 Million
NORANDA ALUMINUM: Board OKs 2010 Annual Incentive Plan
NORTH BAY: U.S. Trustee Unable to Form Creditors Committee
ORBITZ WORLDWIDE: Moody's Affirms 'B2' Corporate Family Rating
PALM INC: Harbinger Holds 9.48% of Common Stock
PARKING CORP OF AMERICA: Creditors Balk at $111M Asset Sale Plan
PARLUX FRAGRANCES: Amends Employment Agreements with Execs
PEARL COMPANIES: Files for Chapter 11 in Fort Lauderdale
PETER KALIKOW: Second Circuit Reverses Sanction Award
PHOENIX WORLDWIDE: Cash Collateral Hearing Scheduled for May 18
PHOENIX WORLDWIDE: Promises to Pay Unsecured Claims in 10 Years
PHOENIX WORLDWIDE: Wants Solicitation Deadline Moved to July 26
POINT BLANK: Case Summary & 35 Largest Unsecured Creditors
PORTER OCALA: Case Summary & 4 Largest Unsecured Creditors
PRESIDENTIAL BUILDERS: Case Summary & 5 Largest Unsec Creditors
PSN USA: Insurer Not Liable Under Liquidating Trustee's Bond
RADNET MANAGEMENT: Moody's Affirms 'B2' Corporate Family Rating
REDPRAIRIE CORP: S&P Raises Corporate Credit Rating to 'B+'
REGENT COMMUNICATIONS: Resilient Appeals Confirmation Order
RICHARD DERRICK: Case Summary & 20 Largest Unsecured Creditors
RIO BRAVO: Case Summary & 2 Largest Unsecured Creditors
ROCK & REPUBLIC: US Trustee Appoints 7 Members to Creditors Panel
ROCK & REPUBLIC: Court Moves Schedules Filing Deadline to April 30
RUTH DELGADO: Case Summary & 20 Largest Unsecured Creditors
SAND BOX: Voluntary Chapter 11 Case Summary
SHARON MOKHTARI: Case Summary & 14 Largest Unsecured Creditors
SPON-DIVITS: Case Summary & 20 Largest Unsecured Creditors
SPX CORPORATION: Fitch Affirms 'BB+' Issuer Default Rating
SAINT VINCENTS: Returns to Chapter 11, Closing This Time
SAINT VINCENTS: Case Summary & 30 Largest Unsecured Creditors
STANDARD STEEL: Moody's Assigns 'Caa1' Rating on $135 Mil. Notes
STANDARD STEEL: S&P Puts 'B-' Corp. Rating on CreditWatch Positive
SUNESIS PHARMACEUTICALS: Caxton Holds 6.8% of Common Stock
SUNESIS PHARMACEUTICALS: Venrock Discloses Equity Stake
SUNESIS PHARMACEUTICALS: Vision Fund Holds 2.7% of Common Stock
SUNWEST MANAGEMENT: Marcus & Millichap Sells Tudor Heights
SWOOZIE'S INC: Localities Interfering with GOB Sales
TAZ HOLDINGS: Voluntary Chapter 11 Case Summary
TERRACE POINTE: Section 341(a) Meeting Scheduled for May 12
TERRACE POINTE: Files List of 20 Largest Unsecured Creditors
TRIBUNE COMPANY: Judge Blocks Lenders' Reorganization Plan
TRIBUNE CO: May Get Independent Examiner
TRINIDAD GOLF: Case Summary & 3 Largest Unsecured Creditors
UAL CORP: In Talks with Continental About Potential Combination
UNITED COMPONENTS: Carlyle Seeks Buyer, Taps Goldman Sachs
US AIRWAYS: UAL in Talks with Continental About Potential Tie-up
VANOWEN PARTNERSHIP: Case Summary & 12 Largest Unsecured Creditors
VERSO PAPER: Moody's Affirms 'B2' Rating; Gives Stable Outlook
VIJAY TANEJA: Trustee Took Property Free & Clear of Liens
VIKING SYSTEMS: Chairman Bopp Holds 40.2% of Common Stock
VISTEON CORPORATION: Files April 2010 Status Report
VITESSE SEMICONDUCTOR: Annual Stockholders' Meeting on May 11
VITESSE SEMICONDUCTOR: To Release Q2 2010 Earnings on May 10
WASHINGTON MUTUAL: Creditors Sue to Protect $356 Million in Claims
WESTLAND DEVCO: Section 341(a) Meeting Scheduled for May 12
WESTLAND DEVCO: Barclays Moves to Dismiss Chapter 11 Filing
WESTMORELAND COAL: Allen Blase Holds 0.001% of Depository Shares
WESTMORELAND COAL: T. Rowe Price Holds 7.3% of Common Stock
WESTMORELAND COAL: Vicino Holds 16.9% of Depositary Shares
WILDWING DEVELOPMENT: Case Summary & 11 Largest Unsec. Creditors
WILLIAMS WELDING: Voluntary Chapter 11 Case Summary
ZAYAT TABLES: Fifth Third Wants to Cut Cash Collateral Use
* March Has Record Claim Trades, SecondMarket Says
* Fried Frank Promotes Two to European Counsel in Paris Office
* BOOK REVIEW: Distressed Investment Banking - To the Abyss and
Back
*********
146-148 CORTLANDT: Voluntary Chapter 11 Case Summary
----------------------------------------------------
Debtor: 146-148 Cortlandt Street, LLC
139 Cortlandt Street
Sleepy Hollow, NY 10591
Tel: (914) 906-8307
Bankruptcy Case No.: 10-22708
Chapter 11 Petition Date: April 13, 2010
Court: U.S. Bankruptcy Court
Southern District of New York (White Plains)
Judge: Robert D. Drain
Debtor's Counsel: Jonathan S. Pasternak, Esq.
Rattet, Pasternak & Gordon Oliver, LLP
550 Mamaroneck Avenue, Suite 510
Harrison, NY 10528
Tel: (914) 381-7400
Fax: (914) 381-7406
E-mail: jsp@rattetlaw.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Company did not file a list of creditors together with its
petition.
The petition was signed by Cirilo Rodriguez, managing member.
2151 HOTEL: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------
Debtor: 2151 Hotel Circle South LLC
4747 Tosca Road
Woodland Hills, CA 91364
Bankruptcy Case No.: 10-14061
Chapter 11 Petition Date: April 8, 2010
Court: U.S. Bankruptcy Court
Central District of California (San Fernando Valley)
Judge: Maureen Tighe
Debtor's Counsel: Stuart J. Wald, Esq.
36154 Coffee Tree Place
Murrieta, CA 92562
Tel: (310) 429-3354
E-mail: stuart.wald@gmail.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $10,000,001 to $50,000,000
A copy of the Company's list of 20 largest unsecured creditors
filed together with the petition is available for free at:
http://bankrupt.com/misc/cacb10-14061.pdf
The petition was signed by Charles Crail, managing member.
4101 LOUISANA: Voluntary Chapter 11 Case Summary
------------------------------------------------
Debtor: 4101 Louisiana, LLC
P.O. Box 1799
Douglas, WY 82633
Bankruptcy Case No.: 10-18592
Chapter 11 Petition Date: April 14, 2010
Court: United States Bankruptcy Court
District of Colorado (Denver)
Judge: Michael E. Romero
Debtor's Counsel: James R. Chadderdon, Esq.
128 S. Tejon
Ste. 310
Colorado Springs, CO 80903
Tel: (719) 444-0422
E-mail: jchadderdon@qwestoffice.net
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The petition was signed by Bruce Reed, Sole Member.
450 MADISON: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: 450 Madison Avenue, LLC
aka Econo Lodge
450 Madison Ave
Lakewood, NJ 08701-3214
Bankruptcy Case No.: 10-21018
Chapter 11 Petition Date: April 13, 2010
Court: United States Bankruptcy Court
District of New Jersey (Trenton)
Judge: Kathryn C. Ferguson
Debtor's Counsel: Timothy P. Neumann, Esq.
Broege, Neumann, Fischer & Shaver
25 Abe Voorhees Drive
Manasquan, NJ 08736
Tel: (732) 223-8484
E-mail: tneumann@bnfsbankruptcy.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/njb10-21018.pdf
The petition was signed by Shimcha S. Shain, managing member.
9064 HWY: Voluntary Chapter 11 Case Summary
-------------------------------------------
Debtor: 9064 Hwy 285, LLC
9064 S. US Hwy 285
Suite 201
Morrison, CO 80465
Bankruptcy Case No.: 10-18500
Chapter 11 Petition Date: April 13, 2010
Court: United States Bankruptcy Court
District of Colorado (Denver)
Judge: Elizabeth E. Brown
Debtor's Counsel: Philipp C. Theune, Esq.
Theune Law Offices, P.C.
1763 Franklin St.
Denver, CO 80218-1124
Tel: (303) 832-1150
Fax: (303) 845-6934
E-mail: bankruptcy@theunelaw.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $500,001 to $1,000,000
The Debtor did not file a list of its largest unsecured creditors
together with its petition.
The petition was signed by Spenser House, manager.
ABC MANAGEMENT: Voluntary Chapter 11 Case Summary
-------------------------------------------------
Debtor: ABC Management Solutions
aka ABC-MTS
ABC Management Technology Solutions
13921 Park Center Road, Suite 120
Herndon, VA 20171
Bankruptcy Case No.: 10-12865
Chapter 11 Petition Date: April 13, 2010
Court: U.S. Bankruptcy Court
Eastern District of Virginia (Alexandria)
Judge: Robert G. Mayer
Debtor's Counsel: Joseph Michael Langone, Esq.
Law Offices of Joseph M. Langone
11876 Sunrise Valley Drive Suite 201-C
Reston, VA 20191
Tel: (703) 391-1161
Fax: (703) 391-1163
E-mail: langonej@hotmail.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 says that assets total
$697,978.15 while debts total $1,731,720.66.
The Company did not file a list of creditors together with its
petition.
The petition was signed by Cliff Thomas, Director.
ALAMO IRON: Section 341(a) Meeting Scheduled for April 26
---------------------------------------------------------
The U.S. Trustee for Region 7 will convene a meeting of Alamo Iron
Works, Inc.'s creditors on April 26, 2010, at 9:30 a.m. The
meeting will be held at San Antonio Room 333, U.S. Post Office
Building, 615 E. Houston Street, San Antonio, TX 78205.
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 Antonio, Texas-based Alamo Iron Works, Inc., filed for Chapter
11 bankruptcy protection on April 5, 2010 (Bankr. W.D. Texas Case
No. 10-51269). David S. Gragg, Esq., at Langley & Banack, Inc,
assists the Company in its restructuring effort. The Company
estimated its assets and debts at $10,000,001 to $50,000,000.
ALAMO IRON: U.S. Trustee Appoints Three Members to Creditors Panel
------------------------------------------------------------------
Charles F. McVay, the U.S. Trustee for Region 7, appoints three
members to the Official Committee of Unsecured Creditors in Alamo
Iron Works, Inc., et al.'s Chapter 11 cases.
The Committee members include:
1) JDM Steel Service
Attn: James Barnthouse
330 E. Joe Orr Rd.
Chicago Heights, IL 60411
Tel: (708) 371-1300
Fax: (708) 371-3308
E-mail: jbarnthouse@jdmsteel.com
2) Diversified Brands Division of Sherwin-Williams Co.
Attn: Richard S. Kulik and George Caruso
101 W. Prospect Avenue, Suite 610M
Cleveland, OH 44115-1075
Tel: (216) 515-8780
Fax: (216) 515-4958
E-mail: rskulik@sherwin.com; george.w.caruso@sherwin.com
3) Metalwest
Attn: Cyndi Wallin
1229 S. Fulton Avenue
Brighton, CO 80601
Tel: (303) 655-4534
Fax: (303) 655-4634
E-mail: cyndiwallin@metalwest.com
San Antonio, Texas-based Alamo Iron Works, Inc., filed for Chapter
11 bankruptcy protection on April 5, 2010 (Bankr. W.D. Texas Case
No. 10-51269). David S. Gragg, Esq., at Langley & Banack, Inc,
assists the Company in its restructuring effort. The Company
estimated its assets and debts at $10,000,001 to $50,000,000.
ALASKAN ADVENTURE: Voluntary Chapter 11 Case Summary
----------------------------------------------------
Debtor: Alaskan Adventure Tours, Inc
PO Box 293
Kodiak, AK 99615
Bankruptcy Case No.: 10-00282
Chapter 11 Petition Date: April 8, 2010
Court: U.S. Bankruptcy Court
District of Alaska (Anchorage)
Debtor's Counsel: Gary A. Spraker, Esq.
Christianson & Spraker
911 West 8th Avenue, Suite 201
Anchorage, AK 99501
Tel: (907) 258-6016
Fax: (907) 258-2026
E-mail: ecf@cslawyers.net
Estimated Assets: not stated
Estimated Debts: $1,000,001 to $10,000,000
The Company did not file a list of creditors together with its
petition.
The petition was signed by Kimberly C. Riedel, president.
ALEXANDER LOPEZ: Case Summary & 18 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: Alexander Lopez De Guzman
aka Alex Lopez De Guzman
20929 Divonne Drive
Walnut, CA 91789
Bankruptcy Case No.: 2-10-bk
Chapter 11 Petition Date: April 14, 2010
Court: United States Bankruptcy Court
Central District Of California (Los Angeles)
Debtor's Counsel: Kenneth R Graham, Esq.
171 Mayhew Way Ste 208
Pleasant Hill, CA 94523
Tel: (925) 932-0170
Fax: 925-932-3940
E-mail: krg@elaws.com
Estimated Assets: $0 to $50,000
Estimated Debts: $1,000,001 to $10,000,000
A list of the Company's 18 largest unsecured creditors filed
together with the petition is available for free at:
http://bankrupt.com/misc/cacb2-10.pdf
The petition was signed by Not Available.
ALLIED DEFENSE: Posts $8.3 Million Net Loss in 2009
---------------------------------------------------
The Allied Defense Group, Inc., filed its annual report on Form
10-K, showing a net loss of $8.3 million on $142.4 million of
revenue for 2009, compared with a net loss of $10.4 million on
$144.4 million of revenue for 2008.
The Company's balance sheet as of December 31, 2009, showed
$100.6 million in assets, $73.6 million of debts, and
$27.0 million of stockholders' equity.
BDO Seidman LLP, in Bethesda, Md., expressed substantial doubt
about the Company's ability to continue as a going concern. The
independent auditors noted that the Company has suffered recurring
losses from operations. Also, the Company has been unable to
obtain long-term and short-term financing necessary to support its
operations.
A full-text copy of the annual report is available for free at:
http://researcharchives.com/t/s?6009
Vienna, Va.-based The Allied Defense Group, Inc. is a
multinational defense business focused on the manufacture and sale
of ammunition and ammunition related products for use by the U.S.
and foreign governments. Allied's strategic business is conducted
by its two wholly owned subsidiaries: MECAR S.A. and MECAR USA,
Inc. Mecar is located in Nivelles, Belgium and Mecar USA is
located in Marshall, Texas.
AMBRILIA BIOPHARMA: Obtains a Fourth Extension of CCAA Stay Order
-----------------------------------------------------------------
Ambrilia Biopharma Inc. obtained on April 13, 2010, a fourth order
from the Superior Court of Quebec extending in its effect the
initial order issued by the Court on July 31, 2009, covering
Ambrilia and Cellpep Pharma Inc., its subsidiary, until June 30,
2010, the whole pursuant to the Companies' Creditors Arrangement
Act. The purpose of this extension is to provide Ambrilia with an
opportunity to develop and file a plan of arrangement for
consideration by its creditors and to complete its restructuring
process.
Ambrilia also is providing today its bi-weekly Default Status
Report under National Policy 12-203 - Cease Trade Orders for
Continuous Disclosure Defaults.
On April 1, 2010, Ambrilia announced that the filing of its 2009
audited financial statements, annual management's discussion and
analysis, related CEO and CFO certifications and its annual
information form, was being delayed beyond the filing deadline
thereof.
On November 16, 2009, Ambrilia had announced that the filing of
its interim financial statements, management's discussion and
analysis and related CEO and CFO certifications for the third
quarter ended on September 30, 2009, was being delayed beyond the
filing deadline thereof.
On August 11, 2009, Ambrilia had previously announced that the
filing of its interim financial statements, management's
discussion and analysis and related CEO and CFO certifications for
the second quarter ended on June 30, 2009, was being delayed
beyond the filing deadline thereof.
Ambrilia reports that, since its most recent default announcement
on April 1, 2010, there have not been any material changes to the
information contained therein, or any failure by Ambrilia to
fulfill its intentions with respect to satisfying the provisions
of the alternative information guidelines, and there have been no
additional defaults subsequent to such announcement. Further,
there has been no additional material information concerning
Ambrilia and its affairs since its last bi-weekly Default Status
Report dated April 1, 2010, that has not been disclosed. Ambrilia
intends to file, if required, its next Default Status Report by
April 28, 2010.
Ambrilia has been operating under the protection of the CCAA since
July 31, 2009.
Any recovery for creditors and other stakeholders, including
shareholders, is uncertain and is highly dependent upon a number
of factors, including the outcome of Ambrilia proceedings under
the Companies' Creditors Arrangement Act.
About Ambrilia Biopharma
Ambrilia Biopharma Inc. is a biotechnology company focused on the
discovery and development of novel treatments for viral diseases
and cancer. The company's strategy aims to capitalize on its
broad portfolio and original expertise in virology. Ambrilia's
product portfolio is comprised of oncology and antiviral assets,
including two new formulations of existing peptides for cancer
treatment, a targeted delivery technology for cancer, an HIV
protease inhibitor program as well as HIV integrase and entry
inhibitors, Hepatitis C virus inhibitors and anti-Influenza A
compounds. Ambrilia's head office, research and development and
manufacturing facilities are located in Montreal. The Company is
currently subject to court protection under the CCAA.
AMERICAN TONERSERV: Posts $3.1 Million Net Loss in 2009
-------------------------------------------------------
American TonerServ Corp. filed its annual report on Form 10-K,
showing a net loss of $3,136,952 on $29,200,212 of revenue for
2009, compared with a net loss of $4,640,996 on $12,745,634 of
revenue for 2008.
The Company's balance sheet as of December 31, 2009, showed
$17,051,769 in assets, $14,240,524 of debts, and $2,811,245 of
stockholders' equity.
Perry-Smith LLP, in Sacramento, Calif., expressed substantial
doubt about the Company's ability to continue as a going concern.
The independent auditors noted that the Company has suffered
recurring losses from operations resulting in an accumulated
deficit of $25,437,248, and its current liabilities exceed its
current assets at December 31, 2009 by $4,291,912.
A full-text copy of the Company's annual report is available at no
charge at http://researcharchives.com/t/s?6007
Santa Ana, Calif.-based American TonerServ Corp.
-- http://www.americantonerserv.com/-- markets compatible and
original- equipment -manufactured toner cartridges for use in
printers, copiers and fax machines.
AMR CORPORATION: To Release Q1 2010 Earnings on April 21
--------------------------------------------------------
AMR Corporation, parent company of American Airlines, Inc.,
anticipates announcing first quarter 2010 earnings on April 21,
2010. In conjunction with the announcement, on that date 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 first
quarter financial results, the industry environment, recent
strategic initiatives, the revenue environment, cash flow results,
liquidity measures, capital requirements and will provide an
outlook for the future.
About AMR Corporation
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.
At Dec. 31, 2009, AMR reported total assets of $25.438 billion,
including total current assets of $6.642 billion; against total
current liabilities of $7.728 billion, long-term debt, less
current maturities of $9.984 billion, obligations under capital
leases, less current obligations of $599 million, other
liabilities and credits of $10.616 billion; resulting in
stockholders' deficit of $3.489 billion.
* * *
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.
ATLANTIC COAST: Court Dismisses Reorganization Case
---------------------------------------------------
The Hon. Paul G. Hyman of the U.S. Bankruptcy Court for the
Southern District of Florida dismissed Atlantic Coast Paladin
Shores, LLC's Chapter 11 case.
The U.S. Trustee for Region 21 sought for the dismissal of the
Debtor's case due to the Debtor's failure to appear at the meeting
of creditors.
Sebastian, Florida-based Atlantic Coast Paladin Shores, LLC, filed
for Chapter 11 bankruptcy protection on March 2, 2010 (Bankr. S.D.
Fla. Case No. 10-15275). Martin Werner, Esq., who has an office
in Boca Raton, Florida, assists the Company in its restructuring
effort.
ATRIUM COMPANIES: Court Fixes June 11 as Claims Bar Date
--------------------------------------------------------
The Hon. Brendan L. Shannon of the U.S. Bankruptcy Court for the
District of Delaware has established June 11, 2010, at 4:00 p.m.,
prevailing Eastern Time, as the deadline for any individual or
entity to file proofs of claim against Atrium Companies Inc., et
al.
The Court also set July 19, 2010, at 4:00 p.m. ET as governmental
bar date.
Proofs of claims must be filed by:
first-class mail:
The Garden City Group, Inc.
Attn: Atrium Corporation, et al.
P.O. Box 9576
Dublin, Ohio 43017-4876
hand delivery or overnight mail:
The Garden City Group, Inc.
Attn: Atrium Corporation, et al.
5151 Blazer Parkway, suite AQ
Dublin, Ohio 43017-4876
Atrium Companies, Inc. -- http://www.atrium.com/-- manufactures
residential vinyl and aluminum windows and patio doors in North
America.
Atrium and its U.S. subsidiaries filed voluntary Chapter 11
petitions with the U.S. Bankruptcy Court in Delaware on
January 20, 2010 (Bankr. D. Del. Case No. 10-10150). The
Company's Canadian subsidiary also initiated reorganization
proceedings under the Companies' Creditors Arrangement Act (CCAA)
in the Ontario Superior Court of Justice in Toronto. The Chapter
11 petition says that debts range from $100 million to
$500 million. The Company's legal advisors are Kirkland & Ellis
in the U.S. and Goodmans LLP in Canada. Moelis & Company is
serving as financial advisor. Garden City Group Inc. serves as
claims and notice agent.
ATP OIL: Moody's Junks Corporate Family Rating; Outlook Positive
----------------------------------------------------------------
Moody's Investors Service assigned a Caa2 Corporate Family Rating
to ATP Oil & Gas Corporation, a Caa2 Probability of Default
Rating, a Caa2 (LGD 4; 53%) rating to its pending $1.5 billion of
senior secured second lien notes due 2015 and an SGL-3 Speculative
Grade Liquidity rating. The rating outlook is positive.
The notes will not be registered with the Securities and Exchange
Commission and are not guaranteed by existing subsidiaries. The
company reports that most of its reserves are held at the parent
issuer level, with the North Sea reserves held in foreign
subsidiaries. Second lien collateral comprises the majority of
ATP's reserves plus two-thirds of the equity in foreign
subsidiaries. Note proceeds will repay $1.278 billion of existing
first secured term loan debt. ATP's existing first secured bank
facility will be replaced by an unrated $100 million first secured
bank revolver scheduled to close with the note offering.
ATP is a small exploration and production company operating in
both the shallow and deep waters of the Gulf of Mexico
(approximately two-thirds of reserves) and in the North Sea. At
year-end 2009, ATP had approximately 135.1 mmboe in proven
reserves (SEC estimation standards), of which a very extremely
small 13% was proven developed reserves and a smaller proportion
was proven developed producing reserves. If successful, the
company believes it will convert approximately one-fourth of its
proven undeveloped reserves to PD status during the course of the
year, with PD reserve growth partially offset by 2010 production.
ATP's business model involves purchasing and then drilling and
developing other producers' non-strategic proven undeveloped
properties in the Gulf of Mexico and North Sea. It therefore
carries proportionately large up-front capital spending outlays,
long project lead times, delay and cost overrun risks
(particularly of its floating production platform construction
program), fast production decline curves, and the challenges of
sequencing new projects to come on line faster than older projects
are declining.
The ratings are restrained by ATP's currently small production,
cash flow, equity capital base and low diversification relative to
its high debt obligations, large net profits interests and other
long-term obligations, and heavy forecasted capital needs. While
Moody's recognize that the company's pivotal Telemark Hub has been
completed and is producing from its first well, it is premature to
factor into the ratings in its entirety the anticipated 2010
production response expected from three wells that are not yet
producing. Furthermore, given the nature of reservoir pressure,
potential unknown permeability barriers, and risk of premature
water encroachment, determining even the first well's reservoir
drive mechanism and estimating its decline curve are tenuous after
only three weeks of production.
Telemark represents over 35% of ATP's reserves and ATP's
forecasted Telemark daily production rate is more than double
ATP's fourth quarter 2009 production. Before reviewing the
positive outlook or ratings, ATP would need to get much further
into successfully executing its drilling, completion and
infrastructure work and establishing the overall production trend.
ATP carries especially high leverage on both daily production
rates and year-end 2009 PD reserves, even pro-forma for the
completion of the Telemark Hub. ATP would still have very high
leverage on production if it meets its 2010 production goals. Its
2010 capital spending budget exceeds existing pre-Telemark cash
flow and capital spending will continue at high levels for several
years. To the degree ATP meets its 2010 and 2011 production
growth targets, cash flow coverage of capital outlays would widen.
ATP carries high operating and capital risk concentrations due to
its strategy of holding 100% working interests in offshore
projects and in buying or constructing its own floating production
platforms. Much is riding on a successful Telemark Hub
development. In the meantime, it carries a short proven developed
reserve life and a notably short life of its small component of
proven developed producing reserves.
However, the ratings are supported by ATP's decade long history of
acquiring non-producing Gulf of Mexico and North Sea properties
from other producers and subsequently funding, drilling,
developing, completing, and bringing them to production; the
modest reversal in the first quarter of 2010 production after
several consecutive quarters of production decline; reasonable
prospects for a substantial 2010 production response from the
Telemark Hub properties; an established track record of raising
equity and loan capital and of monetizing properties and
production infrastructure to meet capital needs; and ATP's
inventory of proven undeveloped drilling locations around
established subsea and surface production infrastructure (although
still entailing heavy funding needs and drilling underperformance
risk).
ATP has been reasonably successful in drilling and developing
individual properties in offshore regions in the past, though it
has not yet sequenced them closely enough to build reserve and
production mass and diversification. Its short PDP reserve life
amplifies that risk. However, ATP's substantial oil and liquids
production component also positively exposes it to oil prices
which currently remain stronger than natural gas prices. In the
first quarter of 2010, ATP's well completion at Mississippi Canyon
Block 711 (part of its Gomez complex) and the resumption and the
addition of production at its Canyon Express Hub have together
boosted daily production volumes by more than 75% above depleted
fourth quarter 2009 daily production.
Regarding the positive outlook, to the degree ATP's planned 2010
production ramp up of its Gulf of Mexico Telemark Hub play matches
the timing and production rate ATP projects, the ratings may have
upside potential depending on the liquidity, cash flow, capital
spending and durability of production outlook at the time. In the
meantime, the timing, initial strength and duration of Telemark's
production response remain too speculative to support a higher
rating now. Any combination of third party delays drilling and
oilfield services delays, internal delays, geologic or drilling
and completion mechanics complications, disruption by Gulf of
Mexico tropical storm conditions, disappointing production
response or cost overruns could result in a move down to a stable
outlook.
In the context of currently weak and uncertain 2010 natural gas
prices, the SGL-3 is supported by sizeable pro-forma levels of
cash and the beginnings of both production and cash flow growth
this year. However, it is restrained by heavy capital spending
relative to existing annualized cash flow, Moody's view that it is
premature to fully incorporate Telemark's expected production
response and cash flows into liquidity ratings, uncertain covenant
coverage if the Telemark production ramp up underperforms, and the
expected full encumbrance of ATP's domestic oil and gas reserve
and production platform assets. The company continues to discuss
the potential to partly or fully monetize its ATP Titan floating
production platform, core to its Telemark Hub operation.
The notes are guaranteed by future domestic unrestricted
subsidiaries but not by existing domestic subsidiaries, primarily
because substantially all of the company's domestic assets are
currently held at the parent level. The notes will be
structurally and effectively subordinated to secured balance sheet
debt of up to $150 million, liens arising from production platform
and infrastructure monetizations, other balance sheet liabilities,
and, in claim on future production, to significant net profits,
overriding royalty interests sold to raise liquidity.
ATP Oil & Gas Corporation is an independent oil and gas company
headquartered in Houston, Texas.
AUTONATION INC: Moody's Assigns 'Ba2' Rating on $1.06 Bil. Loan
---------------------------------------------------------------
Moody's Investors Service assigned a Ba2 rating to AutoNation,
Inc.'s $1.06 billion amended and extended bank credit facility,
and a (P) Ba2 rating to the company's new senior unsecured shelf
registration. The company's existing ratings were affirmed.
AutoNation has a Ba1 Corporate Family Rating, Ba1 Probability of
Default Rating, stable outlook, and SGL-2 Speculative Grade
Liquidity rating.
AutoNation's Ba1 rating and stable outlook reflect its position as
the largest auto retailer in the U.S. and its good liquidity
profile. "The amendment and extension of almost all of
AutoNation's bank credit facility, despite the nominal reduction,
enhances the company's already good liquidity," stated Moody's
Senior Analyst Charlie O'Shea. Key rating concerns include the
difficult macroeconomic-driven sales environment, AutoNation's
relatively high 32% concentration of domestic vehicles in its
sales mix as compared to its peers, and its regional
concentrations in economically-challenged California and Florida.
New ratings assigned:
* $582 million senior unsecured bank revolving credit facility due
2014 at Ba2 (LGD 5, 83%)
* $479 million senior unsecured bank term loan due 2014 at Ba2
(LGD 5, 83%)
* Senior unsecured shelf registration at (P) Ba2
Ratings affirmed and LGD point estimates adjusted:
* Corporate Family Rating at Ba1
* Probability of Default Rating at Ba1
* Speculative Grade Liquidity rating at SGL-2
* $400 million senior unsecured notes due 2018 at Ba2 (LGD 5, 83%)
from Ba2 (LGD 5, 82%)
* $57 million senior unsecured bank revolving credit facility due
2012 at Ba2 (LGD 5, 83%) from Ba2 (LGD 5, 82%)
* $54 million senior unsecured bank term loan due 2012 at Ba2 (LGD
5, 83%) from Ba2 (LGD 5, 82%)
Ratings affirmed and to be withdrawn upon closing of $400 million
senior unsecured note offering:
* $133 million senior unsecured notes due 2014 at Ba2
* $146 million senior unsecured notes due 2013 at Ba2
The last rating action for AutoNation, Inc., was the March 31,
2010, affirmation of the Ba1 Corporate Family and Probability of
Default ratings, affirmation of the Ba2 senior unsecured revolver,
term loan, and note ratings, affirmation of the SGL-2 speculative
grade liquidity rating, the assignment of a Ba2 rating on the
$400 million senior unsecured note issue, and the continuation of
the stable outlook.
AutoNation, Inc., is the largest dedicated retailer of automobiles
with annual revenues of around $11 billion.
AUTONATION INC: S&P Assigns 'BB+' Rating on $581.6 Mil. Loan
------------------------------------------------------------
On April 14, 2010, Standard & Poor's Ratings Services assigned its
'BB+' issue-level ratings and '4' recovery ratings to AutoNation
Inc.'s $581.6 million Extended Revolving Facility due 2014 and
$479.4 million Extended Term Facility loan due 2014. The '4'
recovery ratings indicate S&P's expectation that lenders would
receive meaningful (30% to 50%) recovery in a payment default
scenario.
The Extended Facilities are the result of an amendment and
restatement under which AutoNation extended the maturity to
July 18, 2014, for the majority of its existing revolving credit
and term loan facilities. The Existing Facilities now consist of
$57 million in revolving loans and $54 million in term loans that
were not extended and will be due on the original maturity date of
July 18, 2012.
In S&P's view, the extension of maturities by two years improves
AutoNation's liquidity and financial flexibility by reducing near-
term debt refinancing risk. The company intends to use the
proceeds from a recent $400 million, 6.75% senior notes due 2018
offering to fund the tender for its $146 million, floating-rate
senior notes due 2013 and its $132.6 million in 7% senior notes
due 2014, as well as pay down about $66.6 million of its existing
term loan facility. The tender offer is scheduled to expire April
27.
The ratings on AutoNation reflect S&P's view that it will be able
to maintain current credit measures while preserving its moderate
financial policy and capability to generate free cash flow into
2011. During the recession and sharp downturn in light-vehicle
sales, the company controlled its variable costs to mitigate
margin erosion and offset difficult auto sales with its sizable
dealership network and diverse revenue streams.
Ratings List
AutoNation Inc.
Corp. credit rating BB+/Stable/--
Ratings Assigned
$581.6 mil. Extended Revolving Facility due 2014 BB+
Recovery rating 4
$479.4 mil. Extended Term Facility loan due 2014 BB+
Recovery rating 4
AVIZA TECHNOLOGY: Wins Confirmation of Liquidating Plan
-------------------------------------------------------
Aviza Technology Inc., which has sold the business of supplying
chipmaking equipment, won confirmation of its liquidating Chapter
11 plan on April 8. The plan hands out sale proceeds according to
priorities in bankruptcy law. The disclosure statement doesn't
say how much creditors may receive, partly because the $58 million
purchase price includes notes for $38.7 million.
About Aviza Technology Inc.
Headquartered in Scotts Valley, California, Aviza Technology Inc.
(NASDAQ GM:AVZA) -- http://www.aviza.com/-- designs,
manufactures, sells and supports semiconductor capital equipment
and process technologies for the global semiconductor industry and
related markets. The Company's systems are used in a variety of
segments of the semiconductor market for advanced silicon for
memory devices, 3-D packaging and power integrated circuits for
communications. The Company's manufacturing, R&D, sales and
customer support facilities are located in the United Kingdom,
Germany, France, Taiwan, China, Japan, Korea, Singapore and
Malaysia.
The Company and two of its subsidiaries, Aviza Inc. and Trikon
Technologies Inc., filed for Chapter 11 bankruptcy protection on
June 9, 2009 (Bankr. N.D. Calif. Case No. 09-54511). Judge Roger
L. Efremsky presides over the Chapter 11 case. Attorneys at the
Law Offices of Murray and Murray represent the Debtors. At the
time of the filing, Aviza Technology estimated assets and debts of
$10 million to $50 million.
AXCAN PHARMA: Moody's Reviews 'B1' Corporate Family Rating
----------------------------------------------------------
Moody's Investors Service placed the ratings of Axcan Intermediate
Holdings, Inc., the parent of Axcan Pharma Inc. and Axcan Pharma
US, Inc., including the B1 Corporate Family Rating and B1
Probability of Default Rating under review for possible downgrade.
The rating action follows the recently issued FDA communication to
healthcare professionals and the public, recommending that
patients not currently taking an approved pancreatic enzyme
product (PEP) to begin working with their healthcare professionals
to switch to an FDA-approved PEP. Based on an FDA mandated rule
requiring that all PEPs be marketed by prescription only, all
manufacturers of these products were required to must file NDAs
and receive FDA approval by April 28, 2010 to avoid an FDA
regulatory action that could remove unapproved products from the
market. Axcan has filed the NDAs within the mandated timeframe
and is currently seeking FDA approval for its PEPs, Ultrase and
Viokase, which together comprise approximately 24% of Axcan's
revenue base. Moody's believes it is possible that Axcan may not
receive FDA approvals for these products within the necessary
timeframe.
The rating review will consider Axcan's ability to receive FDA
approval of Ultrase and Viokase over the near term, as well as the
implications for Axcan's credit profile if this does not occur.
Under a scenario in which a near-term approval occurs and there is
limited erosion in the Ultrase and Viokase franchises, Moody's
could confirm Axcan's ratings. Under a scenario without a near-
term approval, Moody's review will consider: (1) the impact on
Axcan's profitability and cash flows resulting from the loss of
market share to competitive PEP products; (2) the impact on
Axcan's liquidity position over the next twelve months; and (3)
the potential for Axcan need to replenish its revenue base through
pipeline execution or business development. Liquidity currently
remains strong, with approximately $132 million of cash and
investments reported as of December 31, 2009 and limited short
term obligations.
Ratings placed under review for possible downgrade:
* B1 Corporate Family Rating
* B1 Probability of Default Rating
* Ba2 (LGD2, 28%) senior secured revolving credit facility of
$115 million due 2014
* Ba2 (LGD2, 28%) senior secured term loan A due 2014
* Ba2 (LGD2, 28%) 9.25% senior secured notes due 2015
* B3 (LGD5, 83%) 12.75% senior unsecured notes due 2016
Moody's last rating action on Axcan took place on March 27, 2009,
when Moody's affirmed Axcan's B1 Corporate Family Rating and
upgraded the company's liquidity rating to SGL-1 from SGL-2. The
company was first rated on January 25, 2008, in connection with
the all-cash acquisition of Axcan by TPG Capital through a
combination of equity and debt financing.
Axcan Pharma Inc., based in Mont St-Hilaire, Quebec, is a
specialty pharmaceutical company concentrating in the field of
gastroenterology with operations in North America and Europe.
Axcan had revenue of approximately US$423 million for the twelve
months ended December 31, 2009.
BANK OF NEW ENGLAND: No Postpetition Interest for Junior Debt
-------------------------------------------------------------
WestLaw reports that a Chapter 7 trustee failed to establish its
entitlement to post-petition interest, and thus distribution on
the junior indebtedness was warranted. There was a lack of direct
evidence regarding the drafting process of the junior indentures
or the parties' intent as to post-petition interest. New York law
at the time the indentures were offered required the document, in
order to allow for an award of post-petition interest, to
explicitly state that the rule precluding post-petition interest
did not apply. The counsel for the underwriters were trained
regarding that requirement. In re Bank of New England Corp., ---
F.Supp.2d ----, 2010 WL 938613 (D. Mass.) (Tauro, J.).
This matter has a long history. The Chapter 7 trustee moved for
leave to make distribution to Bank of New England's junior
bondholders, and the senior bondholders objected on the ground
that they should first be paid for any interest that accrued post-
petition. The Bankruptcy Court, William C. Hillman, Chief Judge,
269 B.R. 82, granted Dr. Branch's motion, and the senior
bondholders appealed. The District Court, Richard G. Stearns, J.,
295 B.R. 419, affirmed, and the senior bondholders again appealed.
The Court of Appeals, Selya, Circuit Judge, 364 F.3d 355, vacated
and remanded with instructions to remand to the Bankruptcy Court.
On remand, the Bankruptcy Court, William C. Hillman, J., 359 B.R.
384, first addressed questions as to burden of proof, and, 404
B.R. 17, authorized distribution on junior indebtedness. Dr.
Branch appealed. This second time around, the District Court
affirmed the Bankruptcy Court's decision.
Bank of New England Corporation filed for Chapter 7 liquidation on
Jan. 1, 1991 (Bankr. D. Mass. Case No. 91-10126). Dr. Ben Branch
serves as the chapter 7 trustee.
BEAM MANAGEMENT: Involuntary Chapter 11 Case Summary
----------------------------------------------------
Alleged Debtor: Beam Management, LLC
2600 Courtland Street
Sarasota, FL 34237
Case Number: 10-08580
Involuntary Chapter 11 Petition Date:
Court: U.S. Bankruptcy Court
Middle District of Florida (Tampa)
Petitioners' Counsel: Philip J. Landau, Esq.
Shraiberg, Ferrara & Landau, P.A.
2385 NW Executive Center Drive, Suite 300
Boca Raton, FL 33431
Tel: (561) 443-0800
Fax: (561) 998-0047
E-mail: plandau@sfl-pa.com
Debtor's Counsel: Pro Se
Creditors that signed the Chapter 11 petition:
Petitioners Nature of Claim Claim Amount
----------- --------------- ------------
Charles Grossman -- N/A
35 E. Grassy Sprain Road
Suite 306
Yonkers, NY 10710
GF Health Products, Inc. -- N/A
c/o Carla Franklin
2935 Northeast Parkway
Atlanta, GA 30360
BERNARD MADOFF: Trustee to Ease Terms of Surge Trading Sale
-----------------------------------------------------------
Bill Rochelle at Bloomberg News reports that Irving H. Picard, the
trustee for Bernard L. Madoff Investment Securities Inc., was
authorized by the bankruptcy judge to modify the contract with
Castor Pollux Securities LLC, which bought the Madoff market-
making business in June 2009 for $1 million cash plus as much as
another $24.5 million based on gross revenue through December
2013. Without modifying the contract, the trustee said that
Castor Pollux, now formally named Surge Trading Inc., would go out
of business.
About Bernard L. Madoff
Bernard L. Madoff Investment Securities LLC and Bernard L.
Madoff orchestrated the largest Ponzi scheme in history, with
losses topping US$50 billion.
On December 15, 2008, the Honorable Louis A. Stanton of the
U.S. District Court for the Southern District of New York granted
the application of the Securities Investor Protection Corporation
for a decree adjudicating that the customers of BLMIS are in need
of the protection afforded by the Securities Investor Protection
Act of 1970. The District Court's Protective Order (i) appointed
Irving H. Picard, Esq., as trustee for the liquidation of BLMIS,
(ii) appointed Baker & Hostetler LLP as his counsel, and (iii)
removed the SIPA Liquidation proceeding to the Bankruptcy Court
(Bankr. S.D.N.Y. Adv. Pro. No. 08-01789) (Lifland, J.).
On April 13, 2009, former BLMIS clients filed an involuntary
Chapter 7 bankruptcy petition against Bernard Madoff (Bankr.
S.D.N.Y. 09-11893). The case is before Hon. Burton Lifland. The
petitioning creditors -- Blumenthal & Associates Florida General
Partnership, Martin Rappaport Charitable Remainder Unitrust,
Martin Rappaport, Marc Cherno, and Steven Morganstern -- assert
$64 million in claims against Mr. Madoff based on the balances
contained in the last statements they got from BLMIS.
On April 14, 2009, Grant Thornton UK LLP as receiver placed Madoff
Securities International Limited in London under bankruptcy
protection pursuant to Chapter 15 of the U.S. Bankruptcy Code
(Bankr. S.D. Fla. 09-16751).
The Chapter 15 case was later transferred to Manhattan. In June
2009, Judge Lifland approved the consolidation of the Madoff SIPA
proceedings and the bankruptcy case.
Judge Denny Chin of the U.S. District Court for the Southern
District of New York on June 29, 2009, sentenced Mr. Madoff to
150 years of life imprisonment for defrauding investors in
United States v. Madoff, No. 09-CR-213 (S.D.N.Y.)
BUTTRUM SURPRISE: Voluntary Chapter 11 Case Summary
---------------------------------------------------
Debtor: Buttrum Surprise Commerce Center, LLC
1725 West Williams
Suite 51
Phoenix, AZ 85027
Bankruptcy Case No.: 2:10-bk
Chapter 11 Petition Date: April 14, 2010
Court: United States Bankruptcy Court
District of Arizona (Phoenix)
Judge: Judge Charles G. Case II
Debtor's Counsel: Don C. Fletcher, Esq.
Lake and Cobb
1095 West Rio Salado Parkway #206
Tempe, AZ 85281
Tel: (602) 523-3000
Fax: (602) 523-3001
E-mail: dfletcher@lakeandcobb.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The petition was signed by RB Holdings, LLC, Member.
C&S WHOLESALE: S&P Assigns 'BB-' Corporate Credit Rating
--------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB-' corporate
credit rating on Keene, N.H.-based C&S Wholesale Grocers Inc. The
outlook is stable.
At the same time, S&P assigned its 'BB-' senior secured debt
rating to C&S Group Enterprises LLC's proposed new $250 million
senior secured notes due 2017 and a '4' recovery rating,
indicating S&P's expectation that the note holders would receive
average (30%-50%) recovery in the event of a payment default.
These notes are guaranteed by C&S Wholesale Grocers, GU Markets
LLC, ES3 LLC, Surry Licensing LLC, and Warehouse Technologies LLC.
The speculative-grade rating on privately owned C&S Wholesale
Grocers reflects the company's position as one of the leading
wholesale grocery distributors, characteristically thin margins,
significant customer concentration, some seasonality to quarterly
operating results, high debt leverage, and moderate cash flow
protection measures. This is partially offset by its fairly low
cost operating position and an experienced management team.
In S&P's view, C&S Wholesale Grocers plays an important role
between suppliers and grocery retailers and that its size and
economies of scale give it an advantage over smaller competitors
in this fragmented industry. However, significant customer
concentration is a concern and, in S&P's view, operating
performance could be materially affected by the loss of one or
more large customers.
S&P believes the company's distribution center automation and
expansion plans will give it some further advantage over the
competition as well as modestly improving its razor thin margins
over the next several years. Although some of the very large
grocery retailers are automating their own distribution networks,
S&P believes that this is cost prohibitive for many grocery
retailers in the industry and should benefit C&S Wholesale Grocers
in the intermediate term.
Top-line trends have been negative over the last two quarters
because of deflation which has only been partially offset by
higher volumes, but S&P believes that the top-line should turn
positive in the second half of fiscal 2010 and beyond. The
negative sales trend was offset by gross margin improvement. S&P
expects that there will be some seasonality to quarterly operating
performance due to the mix of products and sales throughout the
year, weather, and fuel costs.
The company remains highly leveraged, with moderate cash flow
measures. Credit protection measures modestly improved for the 12
months ended Dec. 26, 2009, because of lower operating expenses.
S&P estimates that total debt (including S&P's adjustment for tax-
effected unfunded multiemployer pension liability) to EBITDA will
be in the 4.5x area, EBITDA to interest in the 3x area, and funds
from operations to total debt will be in the 20% area for the
fiscal year-ending Sept. 30, 2010.
CAMERON-811: Cash Collateral Hearing Scheduled for April 28
-----------------------------------------------------------
The Hon. Letitia Z. Paul of the U.S. Bankruptcy Court for the
Southern District of Texas will consider at a hearing on April 28,
2010, at 10:45 a.m., Cameron-811 Rusk, L.P.'s request to access
noteholders' cash collateral. The hearing will be held at
Courtroom 401, 4th Floor, U.S. Courthouse, 5154 Rusk St., Houston,
Texas. Objections, if any, are due on April 26, 2010, at
4:00 p.m.
The Debtor won second interim approval to use the cash collateral
in which Wells Fargo Bank, N.A., successor by merger to Wachovia
Bank, National Association and Redus TX Properties, LLC hold liens
against pursuant to the $15.5 million loans.
The Debtor would use the money to fund its operations while in
bankruptcy.
As adequate protection for any diminution in value of the lenders'
collateral, the Debtors will grant the noteholders a replacement
lien on the Debtor's postpetition rents and other receivables for
use of its cash collateral.
A full-text copy of the Debtor's motion and budget is available at
no charge at http://bankrupt.com/misc/Cameron811CCollateral.pdf
Houston, Texas-based Cameron-811 Rusk, L.P., filed for Chapter 11
bankruptcy protection on March 2, 2010 (Bankr. S.D. Texas Case No.
10-31856). Adrian Stanley Baer, Esq., who has an office in
Cordray Tomlin PC, assists the Company in its restructuring
effort. The Company estimated its assets and liabilities at
$10,000,001 to $50,000,000.
CAMERON-811: Taps Cordray Wagner as Bankruptcy Counsel
------------------------------------------------------
Cameron-811 Rusk, L.P., asks the U.S. Bankruptcy Court for the
Southern District of Texas for permission to employ Cordray Wagner
Scheneller as counsel.
CWS will, among other things:
-- advise the Debtor with respect to its powers and duties as
debtor-in-possession in the continued operation of its
business and management of its property;
-- take all necessary actions to protect and preserve the
Debtor's estate, including the prosecution of actions on the
Debtor's behalf, the defense of any actions commenced
against the Debtor, the negotiation of disputes in which the
Debtor is involved, and the preparation of objections to
claims filed against the Debtor's estate; and
-- prepare on behalf of the Debtor all necessary motions,
applications, answers, orders, reports, and papers in
connection with the orderly administration of the estate.
The Debtor proposes to pay the hourly rate of CWS personnel
through funds supplied by Cameron Interests Limited Partnership.
The hourly rate of Adrian Stanley Baer, Esq., the primary CWS
personnel assigned in the Chapter 11 case, is $325, while the
rates of other attorneys range from $300 - $350.
To the best of the Debtor's knowledge, CWS is a "disinterested
person" as that term is defined in Section 101(14) of the
Bankruptcy Code.
The firm can be reached at:
Cordray Tomlin PC
3606 Sul Ross
Houston, TX 77098
Tel: (713) 630-0600
Fax: (713) 630-0017
E-mail: abaer@clegal.com
Houston, Texas-based Cameron-811 Rusk, L.P., filed for Chapter 11
bankruptcy protection on March 2, 2010 (Bankr. S.D. Texas Case No.
10-31856). Adrian Stanley Baer, Esq., who has an office in
Cordray Tomlin PC, assists the Company in its restructuring
effort. The Company estimated its assets and liabilities at
$10,000,001 to $50,000,000.
CAPITOL CITY: Significant Operating Losses Cue Going Concern Doubt
------------------------------------------------------------------
Capitol City Bancshares, Inc., filed on April 7, 2010, its annual
report on Form 10-K for the year ended December 31, 2009.
Nichols, Cauley & Associates, LLC, in Atlanta, Ga., expressed
substantial doubt about Capitol City Bancshares, Inc.'s ability to
continue as a going concern. The independent auditors noted that
the Company has suffered significant losses from operations, which
has resulted in declining levels of capital.
The Company reported a net loss of $10.6 million on $6.2 million
of net interest income for 2009, compared to a net loss of
$945,120 on net interest income of $7.9 million of net interest
income for 2008.
The Company's balance sheet as of December 31, 2009, showed
$317.4 million in assets, $307.3 million of liabilities, and
$10.1 million of stockholders' equity. The Company had net loans
of $234.1 million and total deposits of $280.1 million at
December 31, 2009.
A full-text copy of the annual report is available for free at:
http://researcharchives.com/t/s?6008
Atlanta, Ga.-based Capitol City Bancshares, Inc., was incorporated
on April 14, 1998, for the purpose of serving as a bank holding
company for Capitol City Bank and Trust Company, a state banking
institution chartered under the laws of the State of Georgia on
June 30, 1994. The Bank operates a full-service banking business
and engages in a broad range of commercial banking activities,
including accepting customary types of demand and timed deposits,
making individual, consumer, commercial, and installment loans,
money transfers, safe deposit services, and making investments in
U.S. government and municipal securities.
CATALINA LIGHTING: Evolution Lighting to Acquire Assets
-------------------------------------------------------
Bill Rochelle at Bloomberg News reports that Catalina Lighting
Inc. was authorized by the Bankruptcy Court to sell its assets to
Evolution Lighting LLC for just enough to pay off the $3.3 million
owed to secured creditor Wachovia Bank NA. Evolution also owned
$18.6 million in Catalina's second-lien debt that will be
exchanged for the assets. The order approving the sale requires
Catalina to file a motion by June 1 either to dismiss the Chapter
11 case or convert to liquidation in Chapter 7.
About Catalina Lighting
Catalina Lighting Inc. is a maker of residential lighting
products. Catalina, based in Miami, distributes its products to
retailers including Wal-Mart, Lowes, OfficeMax, Sears, Staples
Kmart and Bed Bath and Beyond.
Catalina Lighting filed for Chapter 11 on Feb 25, 2010 (Bankr.
S.D. Fla. Case No. 10-14786). Affiliate Catalina Industries also
sought protection.
Stephen P. Drobny, Esq., at Shutts & Bowen LLP, represents the
Debtor in its Chapter 11 effort.
CHA HAWAII: No Trustee After Unintentional Cash Collateral Use
--------------------------------------------------------------
WestLaw reports that the unauthorized use of a creditor's cash
collateral by Chapter 11 debtors was a significant offense that
warranted a remedy, even though the debtors did not knowingly or
intentionally violate the creditor's rights in the cash
collateral, or use the cash for any purpose other than paying
normal and reasonable business and administrative expenses.
However, the appointment of Chapter 11 trustee, as suggested by
the creditor, was not an appropriate remedy. The debtors stopped
using the cash collateral promptly after the issue came to light,
such that there was no ongoing misconduct, and a trustee would be
no more likely than the debtors to raise enough cash to restore
the misused funds. In re CHA Hawaii, LLC, --- B.R. ----, 2010 WL
797285 (Bankr. D. Hawai'i) (Faris, J.).
Wichita, Kan.-based CHA Hawaii LLC, Hawaii Medical Center East
LLC, Hawaii Medical Center West LLC and Hawaii Medical Center LLC
sought chapter 11 protection (Bankr. D. Del. Case No. 08-12027,
transferred to Bankr. D. Hawaii Case No. 08-01369) on Aug. 29,
2008. The Debtors are represented by Christopher J. Muzzi, Esq.,
at Moseley Biehl Tsugawa Lau & Muzzi in Honolulu; Curtis A. Hehn,
Esq., Laura Davis Jones, Esq., and Timothy P. Cairns, Esq., at
Pachulski Stang Ziehl & Jones, LLP, in Wilmington, Del.; and
Michael J. Kaczka, Esq., Paul W. Linehan, Esq., and Shawn M.
Riley, Esq., at McDonald Hopkins LLC in Cleveland, Ohio. The
estimated their assets at $1 million and $10 million and their
debts at $50 million and $100 million at the time of the Chapter
11 filings.
CHARTER COMMUNICATIONS: Prices $1.6 Billion Senior Notes Offering
-----------------------------------------------------------------
Charter Communications, Inc.'s subsidiary, CCO Holdings, LLC, has
priced its previously announced offering of $1.6 billion Senior
Notes in two tranches, consisting of $900 million aggregate
principal amount of 7.875% Senior Notes due 2018 and $700 million
aggregate principal amount of 8.125% Senior Notes due 2020.
The net proceeds of this issuance will be used to finance the
tender offers announced today for any and all of CCO Holdings'
outstanding 8.75% Senior Notes due 2013 and any and all of Charter
Communications Operating, LLC's outstanding 8.375% Senior Second
Lien Notes due 2014.
The 2018 and 2020 Senior Notes will be sold to qualified
institutional buyers in reliance on Rule 144A and outside the
United States to non-U.S. persons in reliance on Regulation S.
The Notes have not been registered under the Securities Act of
1933, as amended, or any state securities laws and, unless so
registered, may not be offered or sold in the United States except
pursuant to an exemption from, or in a transaction not subject to,
the registration requirements of the Securities Act and applicable
state securities laws. The Company expects, subject to market
conditions, that the sale would be completed in approximately two
weeks.
About Charter Communications
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). The Company listed $13.65 billion in assets
against debts of $24.5 billion as of the filing. Attorneys at
Kirkland & Ellis LLP, in New York, served as bankruptcy counsel to
the Debtors. In November 2009, Charter Communications emerged
from bankruptcy, after completing a financial restructuring that
reduced debt by $8 billion.
* * *
As reported in the Troubled Company Reporter on April 13, 2010,
Standard & Poor's Ratings said it assigned ratings to St. Louis-
based Charter Communications Operating LLC's amended senior
secured credit facilities. The new facilities do not affect all
other ratings on parent Charter Communications Inc. (BB-/Stable/
--) and related entities, including its 'BB-' corporate credit
rating and the stable outlook. The company, which serves about
4.8 million basic cable TV subscribers, reported just over
$13 billion of debt at Dec. 31, 2009.
CCO HOLDINGS: Moody's Assigns 'B2' Ratings on New Senior Notes
--------------------------------------------------------------
Moody's Investors Service assigned B2 ratings to the proposed
issuance of new senior unsecured notes by CCO Holdings, LLC (an
indirect intermediate holding company owned by Charter
Communications, Inc. The new notes are anticipated to be split
between eight and ten year maturities, for a total in the range of
approximately $1.6 billion. In conjunction with the rating
assignments, Moody's raised its rating for CCO Holdings'
$350 million senior secured (first lien in name, but effectively
third lien as the security interest reflects only residual stock
of subsidiary Charter Communications Operating, LLC, or "CCO",
which already has first and second lien debt with creditors
benefiting from a pledge of assets) term loan to B1 from B2.
Moody's also assigned a speculative grade liquidity rating of SGL-
1 to Charter's indirect intermediate holding company, CCH II, LLC
("CCH II"), the legal entity for administrative purposes where the
unchanged Ba3 Corporate Family Rating and Ba3 Probability of
Default Rating reside, both of which were affirmed. All other
existing ratings were also affirmed, as outlined below, and are
not affected by the aforementioned actions. The rating outlook
remains stable.
This summary lists Moody's current ratings and the actions for
Charter's rated subsidiaries:
Issuer: CCH II, LLC (CCH II)
-- Corporate Family Rating, Affirmed Ba3
-- Probability of Default Rating, Affirmed Ba3
-- Speculative Grade Liquidity Rating, Assigned SGL-1
-- $1,766 Million of 13.5% Senior Unsecured Notes due 2016,
Affirmed B2 (to LGD6-93% from LGD6-94%)
Issuer: CCO Holdings, LLC (CCO Holdings)
-- $1,600 Million (New) Senior Unsecured Notes due 2018-2020,
Assigned B2 (LGD5-85%)
-- $800 Million of 8.75% Senior Unsecured Notes due 2013,
Affirmed B2 (to LGD5-85% from LGD5-88%)
-- $350 Million Senior Secured 1st Lien (CCO stock only,
effectively 3rd Lien) Term Loan due 2014, Upgraded to B1
(LGD5-78%) from B2 (LGD5-83%)
Issuer: Charter Communications Operating, LLC (CCO)
-- $1,100 Million of 8.0% Senior Secured 2nd Lien (CCO assets)
Notes due 2012, Affirmed B1 (to LGD4-69% from LGD5-73%)
-- $770 Million of 8.375% Senior Secured 2nd Lien (CCO assets)
Notes due 2014, Affirmed B1 (to LGD4-69% from LGD5-73%)
-- $546 Million of 10.875% Senior Secured 2nd Lien (CCO assets)
Notes due 2014, Affirmed B1 (to LGD4-69% from LGD5-73%)
-- $1,300 Million ($537 Million outstanding) Senior Secured 1st
Lien (CCO assets) Revolving Credit Facility due 2015,
Affirmed Ba2, (LGD2-28%)
-- $251 Million Senior Secured 1st Lien (CCO assets) Non
Revolving Term Loan due 2013, Affirmed Ba2, (LGD2-28%)
-- $3,000 Million Senior Secured 1st Lien (CCO assets) Term Loan
due 2016, Affirmed Ba2, (LGD2-28%)
-- $3,890 Million Senior Secured 1st Lien (CCO assets) Term Loan
due 2014, Affirmed Ba2, (LGD2-28%)
The outlook for all ratings is Stable.
The company also launched a tender offer to repurchase the
$770 million of 8.375% senior second lien notes due 2014 of CCO
and the $800 million of 8.75% senior unsecured notes 2013 of CCO
Holdings. Proceeds from the proposed bond offerings, along with a
combination of cash-on-hand and revolver borrowings, will be used
to fund the tender offers plus any associated transaction fees.
Moody's expects to withdraw its ratings for the 8.375% senior
second lien notes and 8.75% senior unsecured notes following
successful completion of the refinancing.
The B2 ratings for the new CCO Holdings notes reflect their
structural subordination to the sizeable amount of debt claims
residing at CCO. The upgrade of the $350 million CCO Holdings
term loan rating to B1 from B2 is based on the application of
Moody's Loss Given Default Methodology. The outcome is driven by
changes in the mix of debt capital, which following successful
completion of the proposed new financing and tender offer will
consist of a lower amount of structurally and effectively senior
secured second lien debt at CCO relative to both total debt and
the junior-ranking debt residing at CCO Holdings. CCO Holdings'
$350 million term loan benefits from a pledge of CCO stock, or the
residual equity after all CCO claims are satisfied, and thereby
ranks senior to the new notes and benefits further from the
enhanced loss absorption cushion afforded by a larger amount of
unsecured debt at CCO Holdings (which is additive to the CCH II
junior-ranking debt) supporting it.
There is no change to CCH II's Ba3 CFR or PDR, as the transactions
will have minimal impact on Charter's consolidated debt-to-EBITDA
financial leverage ratio and other key credit metrics. "Similar
to the just completed partial amendment and extension of CCO's
bank credit facilities, the current refinancing represents a
continuation of the company's proactive approach to addressing its
debt maturity profile, well in advance of when needed, while the
fixed income markets are hot and at a reasonably attractive cost
of capital," according to Russell Solomon, Moody's Senior Vice
President.
Charter's ratings continue to broadly reflect the company's
moderately high financial risk, evidenced by debt-to-EBITDA
leverage of approximately 5.6x, and a highly competitive market
environment, albeit Moody's expectation that the company will
generate more than $500 million of free cash flow in 2010
following its successful bankruptcy reorganization (and material
reduction in debt burden and accompanying debt service costs) in
November 2009. The Ba3 rating is supported by the company's large
size, above-average prospects for continued operational
improvements and meaningful perceived underlying asset value,
including a sizeable albeit shrinking subscriber base of
approximately 4.8 million basic video customers.
The SGL-1 rating reflects Moody's expectation that Charter will
maintain a robust liquidity profile over the next twelve months.
The company's liquidity position is characterized as "very good"
given its balance sheet cash, which stood at $254 million at
3/31/10, and projected annual free cash flow of at least
$500 million in 2010, and growing. Charter has access to a
$1.3 billion revolving credit facility with an undrawn capacity of
approximately $760 million at 3/31/10. Charter's short-term
liquidity profile also benefits from the absence of material debt
maturities until 2012. Debt maturities in 2010 and 2011 include
only modest requisite annual term loan amortization payments of
around $70 million, which Moody's expect will easily be paid with
cash on hand and/or revolver capacity. Based on Moody's
projections, Moody's anticipate Charter will remain in compliance
with financial covenants over the next twelve months with
sufficient EBITDA headroom.
The last rating action was on March 31, 2010, when Moody's
assigned a Ba2 rating to Charter's amended and restated credit
facilities.
Charter Communications, Inc., is one of the largest domestic cable
multiple system operators serving approximately 4.8 million basic
subscribers and generating annual revenues approximating
$6.8 billion. The company maintains its headquarters in St.
Louis, Missouri.
CCO HOLDINGS: S&P Assigns 'B' Rating on $1.6 Bil. Senior Notes
--------------------------------------------------------------
Standard & Poor's Ratings Services said it assigned its 'B' issue-
level rating and '6' recovery rating to co-borrowers CCO Holdings
LLC's and CCO Holdings Capital Corp.'s proposed $1.6 billion of
senior notes to be split into two tranches due 2018 and 2020. The
borrowers are subsidiaries of St. Louis-based cable TV operator
Charter Communications Inc. Proceeds will be used to tender for
$800 million of the 8.75% CCOH senior notes and $770 million of
the 8.375% Charter Communications Operating LLC senior second-lien
notes due 2014 as well as pay related fees and expenses.
Charter's 'BB-' corporate credit rating and stable outlook remain
unchanged.
At the same time, S&P raised the issue-rating on CCO's second-lien
debt to 'BB' from 'BB-' and revised the recovery rating on the
debt to '2' from '3'. The revision is based on S&P's assumption
that the company is successful in its tender offer to repay the
$770 million of second-lien notes, improving recovery prospects
for the remaining approximate $1.6 billion of second-lien debt at
CCO.
Rating List
Charter Communications Inc.
Corporate Credit Rating BB-/Stable/--
Ratings Assigned
CCO Holdings LLC
CCO Holdings Capital Corp.
Proposed Senior Notes
$1.6 billion of notes to be split into
two tranches due 2018 and 2020 B
Recovery Rating 6
Ratings Upgraded; Recovery Rating Revised
Charter Communications Operating LLC
To From
-- ----
Second-lien debt BB BB-
Recovery Rating 2 3
CHAPARRAL ENERGY: S&P Raises Corporate Credit Rating to 'B'
-----------------------------------------------------------
Standard & Poor's Ratings Services raised its corporate credit and
senior unsecured ratings on exploration and production company
Chaparral Energy Inc. to 'B' from 'CCC+'. S&P removed the ratings
from CreditWatch, where they were placed with developing
implications on Feb. 19, 2010. The recovery rating of the
unsecured obligations remains '3', indicating expectations of
meaningful (50% to 70%) recovery in the event of a payment
default. The outlook is stable.
"The rating action reflects the improvement in the company's
liquidity and financial measures following the close of a
$345 million equity investment by CCMP Capital Advisors LLC," said
Standard & Poor's credit analyst Paul Harvey. Additionally, the
rating action reflects the close of a new $450 million credit
facility due 2014, eliminating concern about Chaparral's ability
to refinance its former $513 million facility due in October 2010.
Chaparral will use proceeds from the CCMP investment to repay debt
under the credit facility, significantly improving liquidity.
Additionally, the equity proceeds will allow Chaparral to
accelerate drilling activity following a prolonged period of
constrained liquidity.
Finally, S&P expects Chaparral will maintain a more conservative
financial policy than it had in the past. The board of directors
has been expanded to include three outside directors out of a
total of five, providing a check on financial policy that was
previously lacking.
Pro forma for the CCMP investment, Chaparral's liquidity should be
around $290 million. S&P believes the company will maintain
adequate liquidity, although S&P anticipate Chaparral will
outspend operating cash flows. S&P also notes that Chaparral's
hedging program, which covers around 85% of current production,
should provide a stable base of cash flow during a period of
uncertain hydrocarbon pricing, particularly natural gas. Finally,
the rating upgrade reflects Chaparral's favorable mix of crude oil
and natural gas (about 51% of production and 63% of reserves are
crude oil), and long proved developed reserve life of 12 years,
providing some stability and exposure to favorable crude oil
fundamentals that many peers lack.
The ratings on Chaparral reflect its significant debt burden,
elevated cost structure, and small reserve base. The ratings also
incorporate Chaparral's mix of crude oil and natural gas reserves,
solid reserve life, high operatorship of its properties, and
extensive hedging program.
The stable outlook reflects expectations that Chaparral will
maintain adequate liquidity while keeping debt leverage below 4x.
If debt leverage were to exceed 4x or liquidity fall below
$100 million, S&P could lower ratings. S&P could raise ratings if
Chaparral can maintain debt leverage below 3x while expanding its
crude oil production and reserves.
CLEAVER-BROOKS INC: S&P Assigns Corporate Credit Rating at 'B'
--------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B' corporate
credit rating to Thomasville, Ga.-based Cleaver-Brooks Inc. S&P
is also assigning S&P's 'B' issue-level rating to the proposed
offering of $200 million senior secured notes due 2016. The
company is selling these notes under Rule 144A without
registration rights. The notes also contain a provision that
allows holders to put the notes back to the company if there is a
change of control. The recovery rating is '4', indicating average
recovery (30% to 50%) in a payment default scenario. The outlook
is stable.
The ratings on Cleaver-Brooks reflect its leading position in the
niche market for mid-to-large commercial and industrial boilers.
It has a strong distribution network consisting of exclusive reps
and has a well-known brand name and reputation. However, its
position in a highly fragmented and competitive industry, and its
highly leveraged financial risk profile resulting from the
refinancing, which includes a dividend to its sponsor, largely
offset company strengths.
"S&P expects operating performance to improve and a gradual
reduction in debt from free cash flow generation. S&P could lower
the ratings if there is an unanticipated decline in operating
performance, such that leverage moves toward and beyond 6x, or if
liquidity is otherwise affected," said Standard & Poor's credit
analyst John R. Sico. "On the other hand, better-than-expected
operating performance and greater debt reduction allows for some
potential upside to the rating," he continued.
COACHMEN INDUSTRIES: HIG All American Holds 69.97% of Shares
------------------------------------------------------------
H.I.G. All American, LLC, and its affiliated entities disclosed
that as of April 5, 2010, they may be deemed to beneficially own
in the aggregate 38,213,387 shares or roughly 69.97% of Coachmen
Industries, Inc.
As reported by the Troubled Company Reporter on April 14, 2010,
Coachmen Industries and all of its significant subsidiaries and
H.I.G. All American entered into a First Amendment to the Loan
Agreement on April 5, 2010. The Lender waived specified Events of
Default that had occurred under the Loan Agreement dated
October 27, 2009, prior to April 5, 2010. The Company issued a
new warrant to purchase up to 9,557,939 shares of the Company's
common stock as consideration to the Lender for entering into the
First Amendment.
Pursuant to the First Amendment:
-- the price protection feature contained in the Tranche B
Note issued pursuant to the Loan Agreement was eliminated;
-- the principal amount of the Tranche B Note was increased
by $850,000, reflecting the addition of PIK Interest that
was otherwise payable on March 31, 2010;
-- the financial covenants were eased generally;
-- lower financial covenants were provided for the Company's
access to the first $3 million of availability under the
revolving credit facility provided in the Loan Agreement,
but the Company will be required to issue additional
warrants to the Lender if the Company utilizes the lower
financial covenants to access the first $3 million of
availability; and
-- the Company may obtain a waiver of certain financial
covenants by paying a waiver fee, in cases where the
Company's earnings before interest, taxes, depreciation
and amortization shortfall is less than $500,000, or by
issuing additional warrants, if the EBITDA shortfall is
greater than $500,000, but less than $1 million.
The warrant originally issued pursuant to the Loan Agreement and
the Tranche B Note were amended and restated to reflect the anti-
dilution adjustments that occurred as a result of the issuance of
the New Warrant. The Original Warrant, as amended, now can be
exercised for 10,925,926 shares, and the Tranche B Note now can be
converted into 17,728,758 shares (including the PIK Interest).
The amended and restated Original Warrant, the New Warrant and the
amended and restated Tranche B Note all contain anti-dilution
protection in the event the Company issues in excess of 16,403,409
shares of its common stock. The outstanding principal of the
amended and restated Tranche B Note (including PIK Interest) is
convertible into shares of the Company's common stock at an
initial conversion price of $0.612 per share.
The Amendment contains customary representations and warranties
and covenants, including a prohibition on dividends, of the
Company, and provides for the acceleration of the obligations of
the Company upon the occurrence of certain events of default.
About Coachmen Industries
Coachmen Industries, Inc., doing business as All American Group,
is one of America's premier systems-built construction companies
operating under the ALL AMERICAN BUILDING SYSTEMS(R), ALL AMERICAN
HOMES(R) and MOD-U-KRAF(R) brands, as well as a manufacturer of
specialty vehicles through a joint venture with ARBOC Mobility,
LLC. All American Group is a publicly held company with stock
quoted and traded on the over-the-counter markets under the ticker
COHM.PK.
All American Group includes All American Homes, LLC and Mod-U-
Kraf, LLC, which combined are one of the nation's largest builders
of systems-built residential homes. Models range from single-
story ranches to spacious two-story colonials to beautifully
rustic log homes, under the Ameri-Log(R) brand. A line of solar
homes that can generate low to zero energy bills is available
under the Solar Village(R) brand. All American Building Systems,
LLC, builds large scale projects such as apartments, condominiums,
dormitories, hotels, military and student housing. The Company's
construction facilities are located in Colorado, Indiana, Iowa,
North Carolina and Virginia.
* * *
McGladrey & Pullen LLP in Elkhart, Indiana, said in its March 29,
2010 report that the Company has suffered recurring losses from
operations and continues to operate in an industry where economic
recovery has been very slow. This raises substantial doubt about
the Company's ability to continue as a going concern.
CM REALTY: Case Summary & 7 Largest Unsecured Creditors
-------------------------------------------------------
Debtor: CM Realty Holdings, LLC
17027 E. Calle Del Oro, Unit D
Fountain Hills, AZ 85268
Bankruptcy Case No.: 10-10214
Chapter 11 Petition Date: April 8, 2010
Court: U.S. Bankruptcy Court
District of Arizona (Phoenix)
Judge: Randolph J. Haines
Debtor's Counsel: Blake D. Gunn, Esq.
P.O. Box 22146
Mesa, AZ 85277-2146
Tel: (480) 710-8677
E-mail: bgunn@gunnfirm.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 says that assets total
$2,838,000 while debts total $3,941,916.
A copy of the Company's list of 7 largest unsecured creditors
filed together with the petition is available for free at:
http://bankrupt.com/misc/azb10-10214.pdf
The petition was signed by Connie Martin, managing member.
CONCRETE SOLUTIONS: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------------
Debtor: Concrete Solutions and Supply
2626 Lavery Court #304
Newbury Park, CA 91320-1511
Bankruptcy Case No.: 10-14088
Chapter 11 Petition Date: April 8, 2010
Court: U.S. Bankruptcy Court
Central District of California (San Fernando Valley)
Judge: Maureen Tighe
Debtor's Counsel: Steven R. Fox, Esq.
17835 Ventura Boulevard Suite 306
Encino, CA 91316
Tel: (818) 774-3545
Fax: (818) 774-3707
E-mail: E-mails@foxlaw.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 says that assets total
$1,222,977 while debts total $1,787,170.
A copy of the Company's list of 20 largest unsecured creditors
filed together with the petition is available for free at:
http://bankrupt.com/misc/cacb10-14088.pdf
The petition was signed by Alton Anderson, president.
CONTINENTAL AIRLINES: In Talks with UAL About Potential Tie-up
--------------------------------------------------------------
The Wall Street Journal's Susan Carey and Dennis K. Berman report
that people familiar with the matter said Thursday that UAL Corp.
is talking with Continental Airlines Inc. about a potential
combination, but the two remain far apart. According to the
Journal, these people said the talks don't necessarily mean UAL
aims to dump US Airways Group in favor of Continental, but may be
seeking to sustain deals that fall short of a merger while
producing substantial revenue.
According to the Journal, spokespeople for the three airlines
declined to comment.
As reported by the Troubled Company Reporter on April 13, one
person close to the matter has told the Journal the merger talks
between United and US Airways have become "very serious." The
source, however, told the Journal the talks remain sensitive and
it is just as likely the discussions will fall apart as result in
a done deal. The person also said any transaction would be an
all-stock merger, with United being the surviving entity. The
Journal said the share premium to be paid to US Airways
shareholders hasn't been settled. The Journal also said another
person familiar with the talks said the two sides haven't yet
agreed who would run the combination.
The Journal also noted that a wild card in the United-US Airways
merger talks is what Continental might do if it is threatened with
becoming a very distant No. 4 in the airline pecking order. The
Journal reported that some analysts believe the talks became
public as a way to pressure Continental to return to the
bargaining table with United.
Ms. Carey and Mr. Berman report that Capt. Wendy Morse, head of
the Air Line Pilots Association branch at United, said Thursday
that for United's pilots, "Continental, rather than US Airways,
represents a more logical merger partner for United Airlines."
Ms. Morse said, "It is our belief, along with many analysts, that
a merger between United and Continental would contain less route
overlap and greater attainable synergies." The Journal relates
Ms. Morse said her group would support such a combination if a
deal would benefit United pilot careers. The ALPA branch at
Continental said its leader, Capt. Jay Pierce, wasn't available
for comment Thursday, the Journal realtes.
Chicago-based UAL is the No. 3 U.S. airline by traffic and has a
current market capitalization of $3.9 billion. Continental, based
in Houston and ranked fourth by traffic, has a market cap of $3.3
billion. US Airways, No. 6 by traffic and based in Tempe, Ariz.,
is valued at $1.2 billion.
Delta Air Lines Inc., which expanded as a result of its 2008
acquisition of Northwest Airlines, now is the largest carrier in
the world with a market value of $11.3 billion. According to the
Journal, several people close to the situation said Delta's vast
size has changed the competitive landscape, possibly making a
follow-on merger easier for antitrust enforcers at the Justice
Department to swallow. The Journal, however, notes a United-US
Airways combination would have large market share in Washington,
D.C., and overlapping hubs between Washington and Philadelphia,
and between Phoenix and Denver. Divestitures of some assets might
be required to win regulatory approval. The Journal also says
there's also the risk that adding the Continental alliances to a
United-US Airways combination would raise red flags among
regulators. According to the Journal, these potential problems
have led some analysts to believe a Continental-United marriage
would be an easier regulatory sell. Even though the two together
would create a larger airline, they'd have little overlap.
The Journal also notes Jeff Smisek, Continental's new CEO, has
said publicly that he might revisit his views on mergers if Delta
outpaces the industry financially. He might also be having second
thoughts of being a very small No. 4 carrier after Delta, AMR
Corp.'s American and a bulked up United, even factoring in the
alliance revenues, the Journal adds.
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.
Reorganized 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.
About US Airways
US Airways -- http://www.usairways.com/-- along with US Airways
Shuttle and US Airways Express, operates more than 3,000 flights
per day and serves more than 190 communities in the U.S., Canada,
Mexico, Europe, the Middle East, the Caribbean, Central and South
America.
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. 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 of December 31, 2009, US Airways had total assets of
$7,454,000,000, including $2,331,000,000 in total current assets,
against total current liabilities of $2,789,000,000 and total
noncurrent liabilities and deferred credits of $5,020,000,000,
resulting in $355,000,000 stockholders' deficit.
US Airways Group carries Moody's "Caa1" Long-Term rating, LT Corp.
family rating and probability of default rating. Outlook is
negative.
US Airways Group carries Standard & Poor's "B-" LT Foreign Issuer
Credit rating and LT Local Issuer credit rating. Outlook is also
negative.
US Airways Group carries Fitch's "CCC" LT Issuer default rating
and "C" Senior unsecured debt rating. Outlook is also negative.
About Continental Airlines
Continental Airlines Inc. (NYSE: CAL) --
http://www.continental.com/-- is the world's fifth largest
airline. Continental, together with Continental Express and
Continental Connection, has more than 2,400 daily departures
throughout the Americas, Europe and Asia, serving 130 domestic and
132 international destinations. Continental is a member of Star
Alliance, which provides access to more than 900 additional points
in 169 countries via 24 other member airlines. With more than
41,000 employees, Continental has hubs serving New York, Houston,
Cleveland and Guam, and together with its regional partners,
carries roughly 63 million passengers per year.
At December 31, 2009, Continental had total assets of
$12.781 billion against total current liabilities of
$4.389 billion; long-term debt and capital leases of
$5.291 billion; deferred income taxes of $203 million; accrued
pension liability of $1.248 billion; accrued retiree medical
benefits of $216 million; and other liabilities of $844 million.
At December 31, 2009, the Company had accumulated deficit of
$442 million, accumulated other comprehensive loss of
$1.185 billion and stockholders' equity of $590 million. The
December 31 balance sheet showed strained liquidity: Continental
had total current assets of $4.373 billion against total current
liabilities of $4.389 billion.
* * *
As reported by the Troubled Company Reporter on September 4, 2009,
Standard & Poor's Ratings Services lowered its issue-level ratings
on all senior unsecured debt of Continental to 'CCC+' from 'B-'
and revised the recovery ratings on certain unsecured debt issues,
excluding industrial revenue bonds, to '6' from '5'. At the same
time, S&P affirmed its 'B' corporate credit rating and secured
debt ratings on Continental.
The ratings on Continental's unsecured debt are based principally
on declining aircraft values caused by the global aviation
downturn. This could result in reduced asset protection for
unsecured creditors if Continental were to file for bankruptcy.
Continental continues to carry Moody's Investors Service's B2
corporate family and Fitch Ratings' 'B-' Issuer Default Rating and
'CC/RR6' from 'CCC/RR6' senior unsecured rating.
CORNELL-PINGRY ARMS: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------------
Debtor: Cornell-Pingry Arms, LLC
128 E 7th Street
Plainfield, NJ 07060
Bankruptcy Case No.: 10-20441
Chapter 11 Petition Date: April 7, 2010
Court: U.S. Bankruptcy Court
District of New Jersey (Newark)
Judge: Morris Stern
Debtor's Counsel: Thomas Michael Walsh, Esq.
Trenk, DiPasquale, et al.
347 Mt. Pleasant Avenue, Suite 300
West Orange, NJ 07052
Tel: (973) 243-8600
Fax: (973) 243-8677
E-mail: twalsh@trenklawfirm.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A copy of the Company's list of 20 largest unsecured creditors
filed together with the petition is available for free at:
http://bankrupt.com/misc/njb10-20441.pdf
The petition was signed by David Connolly, Trustee of Cornell-
Pingry Arms Trust, sole member.
Debtor-affiliate that filed separate Chapter 11 petition:
Petition
Debtor Case No. Date
------ -------- ----
Connolly Properties, Inc. 09-44498 4/07/10
COTT CORPORATION: Moody's Raises Corporate Family Rating to 'B2'
----------------------------------------------------------------
Moody's Investors Service has upgraded the corporate family rating
of Cott Corporation to B2 from B3 and the speculative grade
liquidity rating to SGL-2 from SGL-3. In addition, the rating on
the senior unsecured notes, issued by Cott subsidiary Cott
Beverages, Inc., was raised to B3 from Caa1. Concurrent with
these rating upgrades, Moody's revised Cott's rating outlook to
positive from stable.
Moody's said these actions reflect the strength of Cott's recent
operating performance, its focus on cash generation and debt
reduction, the success of its 2009 capital market transactions and
its enhanced liquidity position. The B2 ratings reflect Cott's
position as the world's largest retailer brand soft drink provider
and the company's strong credit metrics relative to the rating
category. While Moody's believes that the beneficial pricing
dynamics that supported Cott's performance in 2009 will diminish
in the first half of 2010, as National Brands may lower prices to
regain share, the strength of Cott's balance sheet and liquidity
profile is expected to cushion the impact of any near-term
operational weakness.
The positive outlook reflects the existing momentum supporting
Cott's performance coupled with its improved credit profile.
Continued ratings progress will be dependent on Cott's ability to
sustain a strong operational performance in more competitive
pricing environment, given its historical sensitivity to pricing
actions of the National Brands. Further, continued success of the
company's relatively new management team in diversifying its
customer base, cultivating existing customer relationships,
growing its non-CSD product line, establishing attainable
operating goals, and maintaining a conservative capital structure
and liquidity profile would likely support a positive rating
action over the near term.
The SGL-2 liquidity rating reflects Moody's expectation that Cott
will maintain a solid liquidity profile over the next twelve
months. Cott's liquidity profile benefits from its ability to
generate meaningful cash flows, its sizeable ABL availability and
a favorable covenant structure.
These ratings were upgraded:
Cott Corporation
* Corporate family rating upgraded to B2 from B3;
* Probability of default rating upgraded to B2 from B3; and
* Speculative grade liquidity rating upgraded to SGL-2 from SGL-3.
Cott Beverages, Inc.
* $215 million senior unsecured notes due 2017 upgraded to B3
(LGD5, 71%) from Caa1 (LGD5, 75%).
The last rating action on Cott was the assignment of the Caa1
rating to the senior unsecured notes on October 29, 2009.
Cott Corporation, headquartered in Toronto, Ontario and Tampa,
Florida, is one of the world's largest non-alcoholic beverage
companies and the world's largest retailer brand soft drink
company. Revenues for the year ended December 31, 2009, were
$1.6 billion.
CRAIG HART: Case Summary & 7 Largest Unsecured Creditors
--------------------------------------------------------
Debtor: Craig Hart
aka Inc. From The Hart
796 Neptune Avenue
Encinitas, CA 92024
Bankruptcy Case No.: 10-05981
Chapter 11 Petition Date: April 13, 2010
Court: United States Bankruptcy Court
Southern District of California (San Diego)
Debtor's Counsel: Joseph J. Rego, Esq.
Law Office of Joseph Rego
8765 Aero Drive, Suite 306
San Diego, CA 92123
Tel: (858) 598-6628
Fax: (858) 598-6631
E-mail: joerego@regolaw.com
Scheduled Assets: $975,400
Scheduled Debts: $2,363,073
A list of the Company's 7 largest unsecured creditors is available
for free at http://bankrupt.com/misc/casb10-05981.pdf
The petition was signed by Craig Hart.
CREDITWEST CORP: Section 341(a) Meeting Scheduled for April 30
--------------------------------------------------------------
The U.S. Trustee for Region 17 will convene a meeting of
CreditWest Corporation's creditors on April 30, 2010, at 1:30 p.m.
The meeting will be held at the Office of the U.S. Trustee, 777
Sonoma Avenue #116, Santa Rosa, CA 95404.
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.
Rohnert Park, California-based CreditWest Corporation filed for
Chapter 11 bankruptcy protection on April 4, 2010 (Bankr. N.D.
Calif. Case No. 10-11212). Steven M. Olson, Esq., at the Law
Offices of Steven M. Olson, assists the Company in its
restructuring effort. The Company estimated its assets and debts
at $10,000,001 to $50,000,000.
CREDITWEST CORP: Files List of 20 Largest Unsecured Creditors
-------------------------------------------------------------
CreditWest Corporation has filed with the U.S. Bankruptcy Court
for the Northern District of California a list of its 20 largest
unsecured creditors.
Debtor's List of 20 Largest Unsecured Creditors:
Entity Claim Amount
------ ------------
Giulano R. Delapa
1307 N Texas St.
Fairfield CA 94533 $614,861
Fito's Auto Sales
3546 Santa Rosa Ave
Santa Rosa CA 95407 $558,429
Auto Marin
7084 Redwood Blvd
Novato CA 94945 $490,010
All Image Auto Sales
303 S Cherokee Ln
Lodi CA 95240 $307,680
Sandra L. Geary Trust $300,000
3383 Jaylee Drive Value: $0
Santa Rosa CA 95404 Net: $300,000
Fito's Auto Sales
3546 Santa Rosa Ave
Santa Rosa CA 95407 $261,403
Carol Blanchette $250,000
PO Box 4339 Value: $0
Arnold CA 95223 Net Unsecured: $250,000
Mary Parsons $250,000
32243 Perigord Rd Value: $0
Winchester CA 92596 Net Unsecured: $250,000
Judy Howery $250,000
200 Eagleview Lane Value: $0
Sandpoint ID 83864 Net Unsecured: $250,000
Luis Nieves $150,000
Value: $0
Net Unsecured: $150,000
Lake County Auto Financing $128,091
Value: $0
Net Unsecured: $128,091
Auto Mario $112,277
Trader Vic's Used cars $105,987
Nevada Auto Sales $104,756
eZ Auto Solutions $100,450
Elias Y. Tannous $100,000
Value: $0
Net Unsecured: $100,000
Mason or Janalyn Hoburg Trust $100,000
Value: $0
Net Unsecured: $100,000
Ethel M. Evans Revocable Trust $100,000
Value: $0
Net Unsecured: $100,000
Best Autos.com $98,117
Rohnert Park, California-based CreditWest Corporation filed for
Chapter 11 bankruptcy protection on April 4, 2010 (Bankr. N.D.
Calif. Case No. 10-11212). Steven M. Olson, Esq., at the Law
Offices of Steven M. Olson, assists the Company in its
restructuring effort. The Company estimated its assets and debts
at $10,000,001 to $50,000,000.
DELTA MUTUAL: Sells 1 Million Shares to Private Investor
--------------------------------------------------------
Delta Mutual, Inc., disclosed selling 1,000,000 shares of common
stock to a private investor at $0.20 per share on April 1, 2010.
Delta Mutual also disclosed selling millions of shares to private
investors and to a consultant in several sale transactions since
April 27, 2009. The Company declined to name to purchasers. A
full-text copy of Delta Mutual's disclosure is available at no
charge at http://ResearchArchives.com/t/s?5eb5
Delta Mutual, Inc., invests in oil and gas properties in South
America. It intends to focus its investments in the energy
sector, including development of energy producing investments and
alternative energy production in Latin America and North America.
As of September 30, 2009, the Company had $1,408,475 in total
assets, and total liabilities, all current, of $2,523,900. As of
September 30, 2009, the Company had total deficiency of
$1,115,425.
On April 13, 2009, Wiener, Goodman & Company, P.C., in Eatontown,
New Jersey, raised substantial doubt about Delta Mutual, Inc.'s
ability to continue as a going concern after auditing the
Company's financial statements for the fiscal year ended
December 31, 2008. The auditor noted that the Company has a
working capital deficiency, incurred losses from operations, needs
to obtain additional financing to meet its obligations on a timely
basis and to fulfill its proposed activities and ultimately
achieve a level of sales adequate to support its cost structure.
DENNY'S CORP: Says Franchisees' Group Supports Management
---------------------------------------------------------
Denny's Corporation said its management has the support of the
Company's franchisees.
On Thursday, Denny's released a letter from Craig Barber, Chairman
of the Denny's Franchisee Association, to Debra Smithart-Oglesby,
Denny's Chair, regarding certain claims made by a group of
dissident stockholders currently waging a proxy contest against
the Company. According to Denny's, the letter from Mr. Barber, on
behalf of the DFA, refutes the claims of the dissident group that
Denny's management has not been responsive to its franchisees and
specifically expresses its desire to continue working with the
current Board and Company leadership team to continue the
improvements that have been achieved in the brand's performance.
Ms. Smithart-Oglesby stated, "We are very pleased to receive this
encouraging and supportive letter from our franchisee association
with whom we have worked so hard and so closely in recent months
to strengthen the Denny's brand. The franchisees are at the
center of the new Denny's business model and they are the key to
our success going forward. With developments like the recently
announced partnership with Pilot/Flying J Travel Centers, which
has the potential for 190 new units, of which 90% are expected to
be franchised, we believe we have laid the foundation for a bright
future at Denny's and we look forward to continuing this progress
in partnership with our franchisees."
Through its Franchise Growth Initiative, Denny's said it has been
transforming its business model with the goal of achieving a
franchise ratio of 90%. In the past three years, Denny's has sold
290 company-owned units to 56 separate franchisees, increasing the
percentage of franchised-owned units from 67% in early 2007 to 85%
at year end 2009. The DFA represents 85% of Denny's franchised
restaurants.
In his letter dated April 12 to Ms. Smithart-Oglesby, Mr. Barber
said, "There may be some confusion about communications from the
DFA Board during 2009 expressing certain concerns to the Denny's
Board on behalf of its members. As a result of those
communications, a healthy and constructive process began which
included a meeting between you and me. The focus of this process
and our meeting involved a comprehensive discussion of the state
of the Denny's Brand, strategic initiatives and franchisee
perspectives."
Mr. Barber continued, "Based on changes in Brand leadership and
improvements in processes, initiatives and communications over the
past several months, it is inaccurate to say that the concerns of
the DFA Board, the DFA or franchisees have been ignored. In fact,
we have commended the decisions made relative to Brand leadership
along with recent changes to the Brand's marketing strategy in
collaboration and alignment with franchise leadership to address
the everyday affordability of our Brand."
Committee to Enhance Denny's
The dissident stockholders have formed a group called, "The
Committee to Enhance Denny's" headed by Oak Street Capital
Management, LLC, and Dash Acquisitions LLC. The group owns
approximately 6.3% of the outstanding shares of Denny's. The
Committee is seeking to elect three director nominees -- Patrick
Arbor, Jonathan Dash and David Makula -- to the Denny's board of
directors at the 2010 Annual Meeting of Shareholders to be held on
May 19, 2010. The group has created a Web site --
http://www.enhancedennys.com-- to serve as a forum to share the
group's concerns regarding Denny's and to present its nominees'
plans to create value for all shareholders.
The dissident stockholders' concerns include, but are not limited
to:
-- Failure to grow system-wide restaurants;
-- Ceding the #1 market position to International House of
Pancakes;
-- Unacceptable declines in key operating trends such as
guest traffic;
-- Inappropriately high general and administrative expenses;
-- Expensive and ineffective marketing strategies;
-- Imprudent capital allocation decisions;
-- Lack of accountability for management at the board level;
-- Marginalization of shareholders and franchisees; and
-- Extremely poor share price performance
In a letter to shareholders dated April 13, the group pointed out
that Denny's share price has declined by 76.9% between the
Company's emergence from bankruptcy in January 1998 and
December 31, 2009, not accounting for the time value of money.
"Over the past five completed fiscal years alone, Denny's share
price has plummeted by 51.3%, an unacceptable outcome. While we
acknowledge the market volatility associated with last year's
global economic decline, we believe Denny's historically poor
share price performance demonstrates the board's and management's
inability to maximize shareholder value. If shareholders continue
to accept the status quo, we are concerned that Denny's future
will look very much like its past. These abysmal results cannot
be allowed to continue," the group said.
The group also pointed out that since disclosing its Denny's
position in its initial Schedule 13D filed on January 21, 2010,
the Company's share price has appreciated by approximately 70%.
"This share price performance has been achieved in a period during
which the Company reported continued deterioration in key
operating metrics such as comparable store guest traffic. We
believe the recent share price performance is reflective of a
market view that change is needed at Denny's. Nevertheless, we
believe the current market value fails to reflect Denny's full
potential, a potential that can be realized with changes to the
board of directors," the group said.
The group also pointed out it is financially and constitutionally
committed to improving the future direction of Denny's. "We have
no interest in lingering on the sidelines while the board and
management team attempt to figure out an effective strategic plan.
Management's track record spans both good and bad economic times,
and the operating results of Denny's closest competitors only
serve to highlight management's shortcomings," the group said.
A full-text copy of committee's information sheet and letter to
shareholders is available at no charge at:
http://ResearchArchives.com/t/s?6017
Denny's Questions Dissident Group's Agenda
Denny's said in a regulatory filing that the dissident
stockholders have never made any formal communication with
management, choosing instead to wage the proxy contest by first
publicizing its uninformed views about the Company in March via a
press release. The Board strongly urges stockholders to reject
the three dissident nominees.
"Quite surprisingly, with the exception of a few perfunctory
inquiries to our Investor Relations department by one of its
members approximately six months ago, neither the Group nor any of
its members ever contacted the Company to share its views or
inquire about the Company's plans or activities, prior to issuing
its press release," Denny's said.
Denny's said some members of the dissident group and their
affiliates have a well-documented history of pursuing Board seats
on companies "with the intent of ultimately attaining a position
where they pursue their personal agenda, including taking control
of these companies without paying a control premium to the rest of
the stockholders and utilizing those companies as platforms to
fund other acquisitions and business initiatives."
Among other things, management pointed out it has transformed the
Company's balance sheet "saddled with more than $550 million in
debt only four years ago, cutting total debt almost in half to
less than $279 million at December 30, 2009. In the same time
period, we have improved our net debt leverage ratio from 4.9x to
3.0x and our interest coverage ratio from 2.2x to 2.9x. Our total
debt level represents the Company's lowest level of debt since the
mid-1980's. As a result, Denny's is in a stronger position to
refinance its 2012 maturing bank and bond debt on terms that will
provide much greater flexibility to re-direct cash flow towards
more stockholder friendly initiatives which are significantly
restricted under the existing debt agreements."
A full-text copy of the Company's information sheet is available
at no charge at http://ResearchArchives.com/t/s?6018
The Wall Street Journal on April 14 reported that Michael Gallo,
analyst at C.L. King & Associates, said, "If Denny's can get any
sales traction, there's a lot of operating leverage you can get."
The Journal said Darren Tristano, executive vice president at
Technomic Inc., a restaurant industry consultancy, indicated that,
"It really is a zombie brand that just sort of moves along,
doesn't grow, doesn't go away."
The Company reported a net income of $41.5 million on
$608.1 million of total operating revenue for the fiscal year
ended December 30, 2009, compared with $12.7 million net income on
$760.2 million total operating revenue in fiscal 2008.
About Denny's Corporation
Based in Spartanburg, South Carolina, Denny's Corporation (NASDAQ:
DENN) -- http://www.dennys.com/-- is one of America's largest
full-service family restaurant chains, consisting of 1,289
franchised and licensed units and 256 company-owned units, with
operations in the United States, Canada, Costa Rica, Guam, Mexico,
New Zealand and Puerto Rico.
Denny's filed its Form 10-K for the fiscal year December 30, 2009.
The Company reported total assets of $312.627 million against
$440.125 million in total liabilities, resulting in
$127.498 million shareholders' deficit, as of December 30. The
December 30 balance sheet showed strained liquidity: The Company
had total current assets of $58.345 million against
$92.108 million in total current liabilities.
DEUCE INVESTMENTS: No Creditors Committee Appointed in Case
-----------------------------------------------------------
Christopher Scott Kirk on behalf of the Bankruptcy Administrator
for the Eastern District of North Carolina notified the U.S.
Bankruptcy Court that there was no official committee of unsecured
creditors appointed in the Chapter 11 case of Deuce Investments,
Inc.
Clayton, North Carolina-based Deuce Investments, Inc., filed for
Chapter 11 bankruptcy protection on Feb. 12, 2010 (Bankr. E.D.
N.C. Case No. 10-01083). Trawick H. Stubbs, Jr., Esq., at Stubbs
& Perdue, P.A., assists the Company in its restructuring effort.
The Company has assets of $17,334,282, and total debts of
$21,297,698.
DEUCE INVESTMENTS: Taps Stubbs & Perdue as Bankruptcy Counsel
-------------------------------------------------------------
Deuce Investments, Inc., asks the U.S. Bankruptcy Court for the
Eastern District of North Carolina for permission to employ
Trawick H. Stubbs, Jr. and Stubbs & Perdue, P.A. as counsel.
Stubbs & Perdue will represent the Debtor in the Chapter 11
proceedings.
Mr. Stubbs tells the Court that the firm received a $26,039
retainer from Linwood J. Jones and $13,019 from Donald E. Millard
on behalf of the Debtor. The balance of the retainer is $19,030.
Mr. Stubbs can be reached at:
Stubbs & Perdue, P.A.
310 Craven Street
P.O. Box 1654
New Bern, NC 28563-1654
Tel: (252) 633-2700
Fax: (252) 633-9600
Clayton, North Carolina-based Deuce Investments, Inc., filed for
Chapter 11 bankruptcy protection on February 12, 2010 (Bankr. E.D.
N.C. Case No. 10-01083). Trawick H. Stubbs, Jr., Esq., at Stubbs
& Perdue, P.A., assists the Company in its restructuring effort.
The Company has assets of $17,334,282, and total debts of
$21,297,698.
DIAMOND DECISIONS: Ch. 11 Trustee Taps Levene Neale as Counsel
--------------------------------------------------------------
Howard Grobstein, the duly appointed and acting Chapter 11 trustee
in the bankruptcy case of Diamond Decisions, Inc., asks the U.S
Bankruptcy Court for the Central District of California for
permission to employ Levene, Neale, Bender, Rankin & Brill L.L.P.
as counsel.
LNBRB will among other things:
a. analyze the Debtor's assets and any prepetition transfers of
assets;
b. assist the trustee in valuing the Debtor's assets,
including, without limitation, certain personal property
assets; and
c. advise the trustee with regard to the requirements of the
Bankruptcy Court, Bankruptcy Code, Bankruptcy Rules and the
Office of the United States Trustee as they pertain to the
Trustee.
David B. Golubchik, Esq., a member of LNBRB, tells the Court that
the hourly rates of LNBRB's personnel are:
David W. Levene $585
David L. Neale $585
Ron Bender $585
Martin J. Brill $585
Lawrence A. Diamant $585
Edward M. Wolkowitz $585
Timothy J. Yoo $585
Mr. Golubchik $540
Monica Y. Kim $540
Beth Ann R. Young $540
Daniel H. Reiss $540
Irving M. Gross $540
Philip A. Gasteier $540
Jacqueline L. Rodriguez $485
Juliet Y. Oii $485
Michelle S. Grimberg $485
Todd M. Arnold $485
Todd A. Frealy $485
Anthony A. Friedman $415
Carmela T. Pagay $415
John-Patrick M. Fritz $335
Krikor J. Meshefejian $335
Lindsey L. Smith $225
Paraprofessionals $195
Mr. Golubchik assures the Court that LNBRB is a "disinterested
person" as that term is defined in Section 101(14) of the
Bankruptcy Code.
Mr. Golubchik can be reached at:
Levene, Neale, Bender, Rankin & Brill L.L.P.
10250 Constellation Blvd., Suite 1700
Los Angeles, CA 90067
Tel: (310) 229-1234
Fax: (310) 229-1244
E-mail: dbg@lnbrb.com, lls@lnbrb.com
Sunnyside, Washington-based Cervantes Orchards and Vineyards LLC
filed for Chapter 11 bankruptcy protection on February 12, 2010
(Bankr. E.D. Wash. Case No. 10-00787). Steven H. Sackmann, Esq.,
at Sackmann Law Office, assists the Company in its restructuring
effort. The Company listed $10,000,001 to $50,000,000 in assets
and $1,000,001 to $10,000,000 in liabilities.
Los Angeles, California-based Diamond Decisions Inc. filed for
Chapter 11 bankruptcy protection on February 12, 2010 (Bankr. C.D.
Calif. Case No. 10-15109). Brent H. Blakely, Esq., who has an
office in Hollywood, 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.
DYNAMIC BUILDERS: Wants to Obtain Unsecured Loan From Bonins
------------------------------------------------------------
Dynamic Builders, Inc., seeks authority from the U.S. Bankruptcy
Court for the Central District of California to obtain unsecured
loan from its principals, L. Ramon Bonin and Patty A. Bonin (the
Bonins).
The Bonins have committed to provide up to $400,000. The Bonins,
who filed for Chapter 11 bankruptcy protection on March 31, 2010,
own 100% of the common stock of the Debtor, and have given
personal guarantees with regard to all of the Debtor's
institutional debt.
Todd C. Ringstad, Esq., at Ringstad & Sanders, LLP, the proposed
general insolvency counsel for the Debtor, explains that the
Debtor needs the money to pay for real property taxes that are
payable no later than April 10, 2010, with repayment of the
unsecured debt being subordinated to the claims of nonpriority
unsecured creditors of the Debtor's bankruptcy estate. The Debtor
owes real property taxes totaling a combined $399,671.55, and
those taxes will be overdue on April 11, 2010. Failure to timely
pay the taxes could result in the Debtor incurring substantial
penalties and interest, and could also impair the collateral of
the Debtor's secured creditors by increasing the encumbrances
against the estate's real property assets.
Repayment of the loan from the Bonins will be subordinated to the
repayment of the Debtor's prepetition nonpriority unsecured
creditors.
The Debtor has approached its institutional lenders for consensual
use of cash collateral as to the properties that generate rents,
as well as approval for what can be generally described as a line
of credit to support its ongoing operations and related corporate
overhead. While talks continue, the proposed interim loan will
let the Debtor timely satisfy its property tax obligations and
avoid potential substantial penalties. If cash collateral and
further loan discussions with the lenders aren't successful, the
Debtor will out of necessity file the necessary motion with the
Court for approval of the use of cash collateral and further
funding from the Bonins so that operations may continue and the
value of the Debtor's assets maximized for the benefit of all
creditors.
Bank of America, N.A., has objected to the Debtor's request to
obtain loan from the Bonins, saying that the loan terms are
ambiguous.
According to Bank of America, its counsel has had discussions with
the counsel for the Bonins where the Bonins' counsel represented
the proposed loan would earn 0% interest and the Bonins would not
receive payment until general, unsecured creditors are paid in
full. Any order approving the loan should clarify that the loan
will earn 0% interest and that repayment is subordinated such that
the Bonins will receive no payment until all general, unsecured
creditors of the Debtor are repaid, Bank of America states.
Bank of America is represented by Michael J. Gomez at Frandzel
Robins Bloom & Csato, L.C.
About Dynamic Builders
Los Angeles, California-based Dynamic Builders Inc. owns a
commercial real estate. The Company filed for Chapter 11
bankruptcy protection on March 31, 2010 (Bankr. C.D. Calif. Case
No. 10-14151). Nanette D Sanders, Esq., at Ringstad & Sanders,
assists the Company in its restructuring effort. The Company
estimated its assets and debts at $100,000,001 to $500,000,000.
FELICIANO ARTABA: Case Summary & 16 Largest Unsecured Creditors
---------------------------------------------------------------
Joint Debtors: Feliciano G. Artaba
Althea A. Artaba
1681 Starlight Peak Court
North Las Vegas, NV 89084
Bankruptcy Case No.: 10-16409
Chapter 11 Petition Date: April 13, 2010
Court: U.S. Bankruptcy Court
District of Nevada (Las Vegas)
Judge: Mike K. Nakagawa
Debtor's Counsel: Edward S. Coleman, Esq.
Coleman Law Associates
9708 South Gilespie Street, Suite A-106
Las Vegas, NV 89183
Tel: (702) 699-9000
Fax: (702) 699-9006
E-mail: ldeflyer@coleman4law.com
Estimated Assets: $500,001 to $1,000,000
Estimated Debts: $1,000,001 to $10,000,000
According to the schedules, the Joint Debtors say that assets
total $544,840.27 while debts total $1,107,554.19.
A copy of the Joint Debtors' list of 16 largest unsecured
creditors filed together with the petition is available for free
at http://bankrupt.com/misc/nvb10-16409.pdf
The petition was signed by the Joint Debtors.
FIN'L GUARANTY: Sharps Reveals Tender Procedures for Offer
----------------------------------------------------------
Sharps SP I LLC disclosed an alternative procedures for tendering
residential mortgage-backed securities and asset-backed securities
insured by Financial Guaranty Insurance Company in the Offeror's
offer to exchange Eligible Insured Securities that may be
available to some custodians and brokers tendering on behalf of
multiple holders of Eligible Insured Securities that may
facilitate the tendering process. The Offeror also announced that
it has extended the early consideration date and the expiration
date for the offer.
Alternative procedures for tendering Eligible Insured Securities
available for custodians tendering on behalf of multiple holders
Due to logistical issues associated with the tender process for
the offer, alternative procedures for tendering Eligible Insured
Securities have been developed, which may be available for
brokers, custodians or other persons or entities tendering on
behalf of multiple holders of Eligible Insured Securities. These
alternative procedures may facilitate Tendering Custodians opening
multiple accounts and tendering on behalf of multiple holders.
Tendering Custodians may contact the depositary as indicated in
the offering memorandum regarding the applicability of any
alternative procedures to such Tendering Custodian.
Extension of the Early Consideration Date; Expiration Date;
Withdrawal Rights
The Offeror is extending the early consideration date and the
expiration date for the offer and the date until which withdrawal
rights are available to all holders. The early consideration
date, which is the last time for holders to tender their Eligible
Insured Securities in the offer in order to be eligible to receive
the consent fee calculated by reference to the unpaid principal
balance of their Eligible Insured Securities as of February 28,
2010, has been extended to 11:59 p.m., New York City time, on
April 29, 2010. The withdrawal deadline, which is the last time
for holders to validly withdraw tendered Eligible Insured
Securities, has been extended to 11:59 p.m., New York City time,
on April 29, 2010. The expiration date, which is the last time
for holders to tender Eligible Insured Securities in the offer,
has been extended to 11:59 p.m., New York City time, on May 13,
2010.
The offer is being conducted only with qualified institutional
buyers as defined in Rule 144A under the Securities Act of 1933,
as amended that are also qualified purchasers as defined in
Section 2(a)(51) under the Investment Company Act of 1940, as
amended. The certificates that may be issued pursuant to the offer
have not been and, at the time of the closing of the transaction,
will not be registered under the Securities Act or any state
securities laws. The certificates may not be offered, sold or
transferred in or outside of the United States except in reliance
on the exemption from the registration requirements of the
Securities Act afforded by Rule 144A thereunder and in accordance
with applicable state and foreign securities laws to Qualified
Institutional Buyers that are also Qualified Purchasers.
About Financial Guaranty
Financial Guaranty Insurance Co. -- http://www.fgic.com/-- has
enjoyed a reputation for financial strength, underwriting
discipline and superior client service. As a leading financial
guaranty insurance company, FGIC provides credit enhancement on
infrastructure finance and structured finance securities
worldwide, enabling bond issuers to obtain capital cost
effectively and enhancing their access to the capital markets.
The firm is a primary insurer on the $850 million sewer bond debt
of Jefferson County.
* * *
As reported in the Troubled Company Reporter on April 24, 2009,
Standard & Poor's Ratings Services said that it lowered its
counterparty credit, financial strength, and financial enhancement
ratings on Financial Guaranty Insurance Co. to 'CC' from 'CCC' and
assigned a negative outlook.
FREMONT GENERAL: Signature Files Amended Plan of Reorganization
---------------------------------------------------------------
Signature Group Holdings, LLC, et al., filed with the U.S.
Bankruptcy Court for the Central District of California an amended
Plan of Reorganization for Fremont General Corporation.
As reported in the Troubled Company Reporter on March 16, 2010,
Signature Group won approval of the disclosure statement, as
amended for the fourth time, explaining their proposed
reorganization plan for Fremont General.
Certain TOPRS holders and James McIntyre joined the Signature
Group as plan proponents.
Under the amended Plan, all senior notes and the senior notes, and
obligations of the Debtor under the indenture will be deemed
automatically canceled and discharged on the effective date;
provided, however, that the senior notes and the senior notes
indenture will continue in effect solely for the purposes of (i)
allowing the holders of the senior notes to receive their
distributions hereunder, (ii) allowing the indenture trustee for
the senior notes to make the distributions, if any, to be made on
account of the senior notes, (iii) permitting the indenture
trustee for the senior notes to assert its indenture trustee
charging lien against the distributions for payment of its
indenture trustee fees, and (iv) allowing the indenture trustee
for the senior notes to enforce the subordination provisions
contained in the subordinated debenture.
A full-text copy of the Signature Disclosure Statement is
available for free at:
http://bankrupt.com/misc/FremontGeneral_ASignaturePlan.pdf
About Fremont General
Based in Santa Monica, California, Fremont General Corp. (OTC:
FMNTQ) -- http://www.fremontgeneral.com/-- was a financial
services holding company with $8.8 billion in total assets at
September 30, 2007. Fremont General ceased being a financial
services holding company on July 25, 2008, when its wholly owned
bank subsidiary, Fremont Reorganizing Corporation (f/k/a Fremont
Investment & Loan) completed the sale of its assets, including all
of its 22 branches, and 100% of its $5.2 billion of deposits to
CapitalSource Bank.
Fremont General filed for Chapter 11 protection on June 18, 2008,
(Bankr. C.D. Calif. Case No. 08-13421). Robert W. Jones, Esq.,
and J. Maxwell Tucker, Esq., at Patton Boggs LLP, Theodore
Stolman, Esq., Scott H. Yun, Esq., and Whitman L. Holt, Esq., at
Stutman Treister & Glatt, represent the Debtor as counsel.
Kurtzman Carson Consultants LLC is the Debtor's noticing
agent and claims processor. Lee R. Bogdanoff, Esq., Jonathan S.
Shenson, Esq., and Brian M. Metcalf, at Klee, Tuchin, Bogdanoff &
Stern LLP, represent the Official Committee of Unsecured
Creditors as counsel. Fremont's formal schedules showed
$330,036,435 in total assets and $326,560,878 in total debts.
FRONTERA COPPER: Revises Terms for Consensual Note Restructuring
----------------------------------------------------------------
Frontera Copper Corporation has revised terms for the
restructuring of its 10% Senior Unsecured Notes due June 15, 2010
and its 10% Senior Unsecured Notes due March 15, 2011. Pursuant
to a Plan of Arrangement to be filed with the Court pursuant to
the Canada Business Corporations Act, the Unsecured Notes will be
exchanged for new secured Notes with the following key terms:
-- Each C$1,000 principal amount of Unsecured Notes will be
exchanged for C$880 in principal amount of New Secured Notes
(or 88% of principal), provided that any noteholder who has
executed a support agreement with the Company or agreed to
vote for the Plan before an early consent date to be set by
order of the Court will receive a total principal
amount of C$930 of New Secured Notes for each C$1,000
principal amount of their Unsecured Notes (or 93% of
principal).
-- The New Secured Notes will be issued in two series: a fixed
Rate secured Note that will accrue interest at rate of 10% per
annum (the "New Series 1A Secured Note") and a variable-rate
secured Note that will accrue interest at a rate between 6%
and 14% per annum based on the average price of copper during
the prior interest payment period (the "New Series 2A Secured
Note"). All Unsecured Notes will be exchanged for New Series
1A Secured Notes under the Plan, unless a Noteholder elects
under the Plan to receive New Series 2A Secured Notes instead.
-- The New Secured Notes will be secured by a second priority
Security interest on all of the assets and shares of
Frontera's key Mexican operating subsidiary, Cobre del Mayo
("CDM"), subordinate only to the first-ranking security
interest of Frontera's Mexican commercial lender (the "Bank")
in those assets and shares. In addition, (i) CDM will provide
a secured guarantee of Frontera's obligations under the New
Secured Notes, subordinate only to CDM's first-ranking
Obligations to the Bank and (ii) the existing intercompany
loan between CDM as borrower and Frontera as lender will be
secured by a third priority security interest on all of CDM's
assets and shares, subordinate to the Bank's first-ranking
security interest and the Noteholders' second-ranking security
interest in those assets and shares.
-- Frontera will be entitled to increase its first priority
Secured borrowings from the Bank (or any refinancing of that
facility on substantially the same terms and conditions) to
US$110 million in order to make certain capital expenditures
necessary to bring the Piedras Verdes mine to full production.
-- Frontera will apply to extend the listing for each series of
the New Secured Notes on the TSX (subject to meeting minimum
listing requirements for each series of the New Secured Notes)
and will continue to be a reporting issuer in Canada. While
such listing is maintained, it is expected that the New
Secured Notes will be RRSP-eligible.
-- The New Secured Notes will be subject to the following
Mandatory repayment schedule: 25% of the principal amount of
the New Secured Notes must be repaid twenty-one (21) months
after issuance, and a further 25% of principal every six (6)
months thereafter until the maturity date.
-- The maturity date for the New Secured Notes will be
September 30, 2013.
-- All existing defaults will be waived on Plan implementation.
-- All accrued and past due interest on the Unsecured Notes will
be paid on Plan implementation at the rate of 10% per annum as
provided for in section 2.4(a) of the supplemental indentures
governing the Unsecured Notes.
Noteholders representing approximately 62% of the Unsecured Notes
have executed support agreements with Frontera in which they have
agreed to vote in favour of the Plan. Frontera will continue to
solicit additional noteholder support for the Plan.
"This restructuring Plan is a significant and positive development
for Frontera and its stakeholders. It is a consensual solution
that is fair to our noteholders and that meets Frontera's need to
improve its liquidity and access to additional funding in order to
bring the Piedras Verdes mine to full production for the benefit
of all of Frontera's stakeholders," said Mark Distler, CFO of
Frontera. "The process of dialoguing with the noteholders over
the past several weeks to reach these consensual terms has been a
productive one and we look forward to implementing the Plan,
getting back to business and bringing the mine to its full
potential."
Frontera expects to hold a meeting of noteholders for formal
voting on the Plan in May (the "Noteholders' Meeting"), and
expects to implement the Plan shortly thereafter.
About Frontera Copper
Frontera Copper Corporation -- http://www.fronteracopper.com/--
is a Canada-based company formed to acquire and bring into
production the Piedras Verdes project. The Company owns or
controls the Piedras Verdes Mine through its 81% direct interest
in Cobre del Mayo, S.A. de C.V. (CDM), and its 19% indirect
interest in CDM, through its wholly owned subsidiary, Frontera
Cobre del Mayo, Inc. (FCDM). The Piedras Verdes property consists
of 27 mineral concessions. CDM directly owns 22 titled
concessions totaling 3,581.29 hectares. During the year ended
December 31, 2008, the Piedras Verdes operations produced
41.6 million pounds of copper cathode and sold 41.8 million pounds
of copper. In May 2009, the Company was acquired by 0839073 BC
Ltd., a wholly owned subsidiary of Invecture Group, S.A. de C.V.
* * *
As reported in the Troubled Company Reporter on January 19, 2010,
Frontera Copper Corporation received Thursday a formal default
notice from CIBC Mellon Trust Company, the Trustee under the
Indenture governing the Series 1 Senior Notes. The notice was
received as a consequence of the Company's failure to make the
December 15, 2009 interest payment on those Notes.
GEMS TV: Section 341(a) Meeting Scheduled for May 12
----------------------------------------------------
Roberta A. Deangelis, the Acting U.S. Trustee for Region 3, will
convene a meeting of Gems TV (USA) Limited's creditors on May 12,
2010, at 2:00 p.m. The meeting will be held at J. Caleb Boggs
Federal Building, 2nd Floor, Room 2112, Wilmington, Delaware
19801.
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.
Reno, Nevada-based Gems TV (USA) Limited, aka Gems TV, is a
television retailer of gemstone jewelry products. Its parent is
Gems TV Holdings Ltd., which owns and operates jewelry home
shopping TV channels in the U.S., U.K. and Japan.
The Company filed for Chapter 11 bankruptcy protection on April 5,
2010 (Bankr. D. Del. Case No. 10-11158). Robert S. Brady, Esq.,
and Robert F. Poppiti, Jr., Esq., at Young, Conaway, Stargatt &
Taylor, assist the Company in its restructuring effort. Focus
Management Group is the Company's financial advisor. Epiq
Bankruptcy Solutions Inc. is the Company's claims and notice
agent. The Company listed $10,000,000 to $50,000,000 in assets
and $100,000,000 to $500,000,000 in liabilities.
GEMS TV: Wants Schedules Filing Deadline Extended Until June 4
--------------------------------------------------------------
Gems TV (USA) Limited has asked the U.S. Bankruptcy Court for the
District of Delaware to extend by an additional 30 days until
June 4, 2010, the filing of schedules of assets and liabilities
and statement of financial affairs.
The Debtor says that it has not had an ample opportunity to
complete the process of compiling the information necessary to
complete its Schedules and Statements in a thorough and accurate
manner. The collection of the necessary information for the
Schedules and Statements will require an expenditure of
substantial time and effort on the part of the Debtor, its
employees and professional advisors. The Debtor has been dealing
with a myriad of administrative issues incidental to the
commencement of the Debtor's Chapter 11 case.
Reno, Nevada-based Gems TV (USA) Limited, aka Gems TV, is a
television retailer of gemstone jewelry products. Its parent is
Gems TV Holdings Ltd., which owns and operates jewelry home
shopping TV channels in the U.S., U.K. and Japan.
The Company filed for Chapter 11 bankruptcy protection on April 5,
2010 (Bankr. D. Del. Case No. 10-11158). Robert S. Brady, Esq.,
and Robert F. Poppiti, Jr., Esq., at Young, Conaway, Stargatt &
Taylor, assist the Company in its restructuring effort. Focus
Management Group is the Company's financial advisor. Epiq
Bankruptcy Solutions Inc. is the Company's claims and notice
agent. The Company listed $10,000,000 to $50,000,000 in assets
and $100,000,000 to $500,000,000 in liabilities.
GENERAL GROWTH: Appoints Sheli Rosenberg to Board of Directors
--------------------------------------------------------------
Sheli Rosenberg was appointed to the Board of Directors of General
Growth Properties, Inc., on April 13, 2010. Ms. Rosenberg is a
Class II Director whose term expires in 2011. The appointment of
Ms. Rosenberg brings the number of directors of the Company to 10.
Ms. Rosenberg is the former President, Chief Executive Officer and
Vice Chairwoman of Equity Group Investments, L.L.C., a privately
held real estate investment firm, and has been an Adjunct
Professor at Northwestern University's J.L. Kellogg Graduate
School of Business since 2003. Ms. Rosenberg currently serves as
a Director of CVS Caremark Corporation, the nation's largest
pharmacy chain, Nanosphere, Inc., a nanotechnology-based
healthcare company, Equity LifeStyle Properties, Inc., an owner
and operator of high-quality resort communities, and Ventas, Inc.,
one of the nation's leading healthcare real estate investment
trusts. Ms. Rosenberg is also a Trustee at Equity Residential,
the largest publicly traded owner, operator and developer of
multi-family housing in the United States.
Ms. Rosenberg is entitled to the same compensation, director
indemnity and insurance and other benefits as are accorded to the
non-employee directors of the Company.
"We are very pleased to announce Sheli's appointment to GGP's
Board of Directors," said Adam Metz, chief executive officer of
GGP. "Sheli's vast real estate experience and broad business
knowledge make her a great asset to GGP. As we continue to
position the Company for a successful future, we look forward to
Sheli's insights and expertise."
About General Growth
Based in Chicago, Illinois, General Growth Properties, Inc. --
http://www.ggp.com/-- is the second-largest U.S. mall owner,
having ownership interest in, or management responsibility for,
more than 200 regional shopping malls in 44 states, as well as
ownership in master planned community developments and commercial
office buildings. The Company's portfolio totals roughly
200 million square feet of retail space and includes more than
24,000 retail stores nationwide. General Growth is a self-
administered and self-managed real estate investment trust. The
Company's common stock is trading in the pink sheets under the
symbol GGWPQ.
General Growth Properties Inc. and its affiliates filed for
Chapter 11 on April 16, 2009 (Bankr. S.D.N.Y., Case No.
09-11977). Marcia L. Goldstein, Esq., Gary T. Holtzer, Esq.,
Adam P. Strochak, Esq., and Stephen A. Youngman, Esq., at Weil,
Gotshal & Manges LLP, have been tapped as bankruptcy counsel.
Kirkland & Ellis LLP is co-counsel. Kurtzman Carson Consultants
LLC has been engaged as claims agent. The Company also hired
AlixPartners LLP as financial advisor and Miller Buckfire Co. LLC,
as investment bankers. The Debtors disclosed
$29,557,330,000 in assets and $27,293,734,000 in debts as of
December 31, 2008.
Bankruptcy Creditors' Service, Inc., publishes General Growth
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by General Growth Properties Inc. and its various
affiliates. (http://bankrupt.com/newsstand/or 215/945-7000)
GENERAL MOTORS: Opel Meet in Germany May Not Yield Final Decision
-----------------------------------------------------------------
The German government officials held a meeting on March 24, 2010
to review an aid request from General Motors Co. to restructure
its Adam Opel/Vauxhall unit, but no final decision is expected
from that, Economics Minister Rainer Bruederle said on March 23,
according to The Wall Street Journal.
Mr. Bruderle called GM's decision to increase funding for its
German unit to EUR1.9 billion or US$2.58 billion and reduce its
request for German state aid to less than EUR2 billion
"encouraging." He noted, however, that questions still cloud over
GM's plan to revitalize its European operations.
GM has requested aid from European countries that are home to
factories for Opel and its sister brand Vauxhall.
In a separate report, GM Europe said on March 22 that it mulls
keeping its Belgium plant in Antwerp open "longer than initially
planned and supports the European labor representatives' search
for a new investor," but that an agreement over a sale would have
to be reached by the end of September 2010, according to the
Journal.
If no new investor can be found within this timeframe, the plant
in Antwerp would be closed "by the end of this year" under a
proposal currently being discussed with labor unions, GM Europe
spokesman Stefan Weinmann told the Journal.
GM Russia to Build Next-Generation Opel Astra
General Motors plans to start production of the next-generation
Opel Astra at its Russian plant in St. Petersburg in May 2010,
reported Inside Line, citing a statement from Konstantin Korostov,
official representative of Opel Russia.
A person familiar with project told Inside Line that production
volume is estimated at approximately 35,000 units. "The car's
basic version will be equipped with a 1.4-liter gasoline engine
making 100 horsepower, mated to a five-speed manual gearbox, and
priced at $19,000," the report added.
The launch of Opel Astra -- which has been popular throughout
Europe -- will help GM Russia to significantly increase its Opel
sales.
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)
GENERAL MOTORS: New GM Recalls 1.3MM Compacts on Steering Problem
-----------------------------------------------------------------
General Motors Co. plans to recall some 60,000 of the Chevy Cruze
small car and the Captiva sports utility vehicle in South Korea,
Reuters said in a report dated March 21, 2010.
GM Daewoo Auto & Technology will recall 45,957 of the Captiva --
sold as the Winstorm -- due to steering system defects, and 12,604
of the Chevy Cruze sedan -- sold as the Lacetti Premiere -- due to
fuel pipe supply problems, the report specified, citing a
statement from the Ministry of Land, Transport and Maritime
Affairs in South Korea.
The recall will be conducted on the SUVs made between April 1,
2006 and December 31, 2007, and on the small cars produced between
September 25, 2009 and March 2, 2010, the Ministry added,
according to Reuters.
"GM plans to recall the models with the problems in other
countries. But every country has different rules and standards and
each GM operation will decide the size and timing of recalls of
those cars depending on their own situations," a GM Daewoo
official who requested anonymity told Reuters in a telephone
interview.
GM has said it was recalling about 1.3 million 2005 to 2010
Chevrolet Cobalts, 2007 to 2010 Pontiac G5s, 2005 and 2006 Pontiac
Pursuits sold in Canada, and 2005 and 2006 Pontiac G4s sold in
Mexico to fix power steering motors that can fail.
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)
GENERAL MOTORS: Walter Borst Named Promark Head, VP for New GM
--------------------------------------------------------------
General Motors Vice Chairman and Chief Financial Officer Chris
Liddell announced a number of key finance leadership changes aimed
at further advancing the company's financial progress and
preparing for its return to public ownership in the future.
Walter Borst is named GM vice president and Promark Global
Advisors, Inc. chief executive officer, reporting to Liddell,
effective May 1, 2010. Promark is a wholly-owned asset management
subsidiary of GM focused primarily on the management of retirement
plan assets, including GM's pension plans assets. Borst, 48, will
also continue as chairman of the Adam Opel GmbH Supervisory Board.
Opel is GM's principal European automotive subsidiary, located in
Germany. Borst was most recently GM vice president and treasurer,
a post he has held since 2003.
"Walter has done an outstanding job as treasurer," said Liddell.
"He is a great fit to lead the team managing a crucial part of GM,
the $115 billion in assets at Promark."
During his 29 year GM career, Borst spent six years in Europe, and
served as chief financial officer of Opel. Additionally, he held
a number of assignments in the Treasurer's Office in New York and
the Controller's Staff in Detroit. Over the years, Borst has been
instrumental in a number of significant strategic and capital
market transactions for GM, including the recent GM restructuring
and sale of assets pursuant to Section 363 of the U.S. Bankruptcy
Code, and the global capital markets debt offering to fund the GM
pension deficit in 2003. He has also served on the GMAC Board of
Directors.
Mr. Borst succeeds Nancy Everett, who has announced her intention
to leave the company June 1, 2010, and who will assist with the
transition. Everett, 55, joined Promark Global Advisors as chief
investment officer in 2005. She assumed the additional
responsibility of chief executive officer in January 2006. In
2007, Everett restructured the portfolio to hedge against
volatility that ultimately helped GM's pension fund withstand the
negative market impact of 2008.
"Nancy was a valuable contributor during one of the most difficult
times in the financial market's history," said Mr.
Liddell. "Under her leadership, Promark delivered consistent
performance for its clients, often outperforming the market. We
thank her for her contribution."
Daniel Ammann has been appointed GM vice president finance and
treasurer, reporting to Mr. Liddell, effective May 1, 2010. Mr.
Ammann, 37, was most recently managing director and head of
Industrials Investment Banking for Morgan Stanley, a position he
held since 2004.
"Dan brings a broad base of financial experience to this
position," said Liddell. "It is a critical time in this company's
history and Dan's depth of knowledge of the financial community
and our business will be invaluable."
Mr. Ammann will lead the GM Treasurer's Office, based in New York,
with additional operations in Detroit, Shanghai, and Zurich. The
global treasury operations include capital markets activities,
capital planning, business development, risk management, worldwide
pension funding, worldwide banking, and overseas and domestic
finance.
During his 11 years at Morgan Stanley, Mr. Ammann was instrumental
in many high profile assignments spanning a variety of technology,
service, and manufacturing clients. His diverse experience in
mergers, acquisitions, raising capital, and restructuring includes
leading Morgan Stanley's banking team in advising GM on its
restructuring and sale pursuant to Section 363 of the U.S.
Bankruptcy Code.
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)
GENERAL MOTORS: Discloses Material Provisions of Capital Stock
--------------------------------------------------------------
In a Form 10-12G filed with the U.S. Securities and Exchange
Commission, General Motors Company disclosed material provisions
regarding its capital stock contained in its (i) amended and
restated certificate of incorporation, as amended, (ii) bylaws, as
amended, (iii) the Amended and Restated Warrant Agreements dated
as of October 16, 2009, between GM and U.S. Bank National
Association, as Warrant Agent, and (iv) the Certificate of
Designations for the Series A Preferred Stock.
According to Edward E. Whitacre, Jr., GM's chairman and chief
executive officer, the Company's Certificate of Incorporation
currently authorizes the Company to issue 3,500,000,000 shares of
capital stock, consisting of:
* 2,500,000,000 shares of common stock, par value $0.01 per
share; and
* 1,000,000,000 shares of preferred stock, par value $0.01 per
Share.
As of March 15, 2010, these shares of capital stock and warrants
to acquire shares of capital stock were issued and outstanding:
* 500,000,000 shares of common stock;
* 360,000,000 shares of Series A Preferred Stock; and
* warrants for the exercise of up to 106,060,605 shares of
common stock.
Under the Delaware General Corporation Law, the holders of the
outstanding shares of a class of GM's capital stock will be
entitled to vote, as a class, upon a proposed amendment of the
Company's corporation's certificate of incorporation -- whether or
not entitled to vote by the Certificate of Incorporation, if the
amendment would:
-- increase or decrease the aggregate number of authorized
shares of such class;
-- increase or decrease the par value of the shares of such
class; or
-- alter or change the powers, preferences or special rights
of the shares of that Class so as to affect them adversely.
If any proposed Amendment would alter or change the powers,
preferences or special rights of one or more series of any class
of GM's capital stock so as to affect them adversely but will not
affect the entire class, then only the shares of the series so
affected by the amendment will be considered a separate class, Mr.
Whitacre noted.
Vacancies in the Board of Directors
GM's Bylaws provide that, subject to limitations, any vacancy
occurring in its Board of Directors for any reason may be filled
by a majority of the remaining members of the Board, even if the
majority is less than a quorum. Each director elected will hold
office until the expiration of the term of the other directors.
Special Meetings of Stockholders
Under GM's Bylaws, special meetings of stockholders may be called
at any time by the chairman of the Board or by a majority of the
members of the Board of Directors. The Board will call a special
meeting upon the written request of the record holders of at least
15% of the voting power of the outstanding shares of all classes
of stock entitled to vote at the meeting.
Stockholder Director Nominations
Prior to the earlier to occur of (i) the initial public offering
of GM common stock that is underwritten by a nationally recognized
investment bank or (ii) the later of (x) the date on which a
Company registration statement filed under the Exchange Act
becomes effective and (y) the date of distribution of the shares
of GM common stock owned by Motors Liquidation Company pursuant to
its plan of reorganization, nominations for the election of
directors may be made only by the Board, consistent with the
Stockholders Agreement.
Following a Public Distribution, nominations for the election of
directors may be made by the Board or by any stockholder entitled
to vote for the election of directors who complies with the
applicable notice requirements. Prior to a Public Distribution, a
stockholder needs not give notice of intent to bring any matter
before a meeting of stockholders.
Following a Public Distribution, if a stockholder wishes to bring
any business before an annual or special meeting or nominate a
person for election to GM Board of Directors, the information
required in a stockholder notice includes (i) general information
regarding the stockholder, (ii) a description of the proposed
business and, with respect to nominations for the Board of
Directors, (iii) certain specified information regarding the
nominees.
GM Bylaws further require under certain circumstances a
representation that the stockholder is a holder of GM voting stock
and intends to appear in person or by proxy at the meeting to make
the nomination or bring up the matter specified in the notice. For
the timing of the stockholder notice, GM Bylaws require that the
notice must be received by GM secretary:
-- in the case of an annual meeting, not more than 180 days
and not less than 120 days in advance; and
-- in the case of a special meeting, not more than 15 days
after the day on which notice of the special meeting is
first mailed to stockholders.
Voting Rights
GM Certificate of Incorporation provides that the holders of
shares of common stock will be entitled to one vote for each share
upon each matter presented to the stockholders. The common stock
will have the exclusive right to vote for the election of
directors and for all other purposes. GM common stockholders do
not possess cumulative voting rights.
Liquidation Rights
In the event of any liquidation, dissolution or winding up of the
Company, the holders of GM common stock would be entitled to
receive, after payment or provision for payment of all GM debts
and liabilities, all of GM assets available for distribution.
Holders of GM preferred stock, if any such shares are then
outstanding, may have a priority over the holders of common stock
in the event of any liquidation or dissolution.
Description of Preferred Stock
Under GM Certificate of Incorporation and the DGCL, GM Board of
Directors has the authority to issue shares of preferred stock
from time to time in one or more series. The certificate of
designations establishing a series of preferred stock will
describe the terms of the series of preferred stock.
The Certificate of Designations for the Series A Preferred Stock
authorizes 360,000,000 shares of Series A Preferred Stock, all of
which are outstanding as of March 15, 2010. There are no sinking
fund provisions applicable to GM Series A Preferred Stock. All
outstanding shares of Series A Preferred Stock are fully paid and
non-assessable.
The Series A Preferred Stock ranks senior with respect to
liquidation preference and dividend rights to any "Junior Stock,"
which means the common stock, any preferred stock other than the
Series A Preferred Stock and any other class or series of stock
that GM may issue.
In the event of any voluntary or involuntary liquidation,
dissolution or winding up of the Company's affairs, a holder of
Series A Preferred Stock will be entitled to be paid, before any
distribution or payment may be made to any holders of Junior Stock
(1) the liquidation preference amount of $25.00 per share, and (2)
the amount of any accrued and unpaid dividends, if any, whether or
not declared, prior to such distribution or payment date.
Holders of the Series A Preferred Stock are entitled to receive,
on each share, if, as and when declared by the Board out of assets
legally available, cumulative cash dividends with respect to each
quarterly dividend period at a rate of 9.0% per annum on (i) the
liquidation preference amount of $25.00 per share, and (ii) the
amount of accrued and unpaid dividends for any prior dividend
periods on the share, if any.
Unless all accrued and unpaid dividends on the Series A Preferred
Stock are paid in full, no dividends or distributions may be paid
on common stock or any other Junior Stock, and no shares of common
stock or any other Junior Stock may be repurchased or redeemed by
GM. Dividends, if declared, will be payable on March 15, June 15,
September 15 and December 15 of each year.
GM may not redeem the Series A Preferred Stock prior to December
31, 2014. On or after December 31, 2014, the Series A Preferred
Stock may be redeemed, in whole or in part, for cash at a price
per share equal to the $25.00 per share liquidation amount, plus
any accrued and unpaid dividends.
Warrants
Pursuant to the Warrant Agreements, GM issued two warrants, each
to acquire 45,454,545 shares of common stock, to MLC and one
warrant to acquire 15,151,515 shares of common stock to New VEBA.
The first of the MLC Warrants is exercisable at any time prior to
July 10, 2016 at an exercise price of $30.00 per share, and the
second of the MLC Warrants is exercisable at any time prior to
July 10, 2019 at an exercise price of $55.00 per share. The New
VEBA Warrant is exercisable at any time prior to December 31, 2015
at an exercise price of $126.92 per share. The number of shares of
common stock underlying each of the warrants and the per share
exercise price thereof are subject to adjustment as a result of
certain events specified in the Warrant Agreements, including
stock splits, reverse stock splits and stock dividend
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)
GENERAL MOTORS: Old GM Objects to Rudolph Town's $80-Bil. Claim
---------------------------------------------------------------
Motors Liquidation Co., formerly General Motors Corp., and its
units ask Judge Robert Gerber of the U.S. Bankruptcy Court
for the Southern District of New York to expunge in its entirety
Claim No. 65796 asserting $86 billion filed by Rudolph V. Towns.
Mr. Towns filed a complaint in July 2008 in the U.S. District
Court for the Southern District of Florida seeking compensatory
and punitive damages for an alleged injury that he suffered in
1965 while working for the Fisher Body Division of GM located in
Cleveland, Ohio. At GM's behest, the District Court dismissed the
Complaint noting that it was difficult to ascertain what claims
Mr. Towns was asserting. The District Court also noted that (i)
the Complaint was barred as untimely and (ii) Mr. Towns failed to
present sufficient supporting facts.
Harvey R. Miller, Esq., at Weil, Gotshal & Manges LLP, in New
York, relates that Mr. Towns filed Claim No. 65796 against
Motors Liquidation Co. in the amount of $86 billion for "intrinsic
fraud, injuries, civil RICO, etc." The Claim, however, did not
have supporting documentation that would allow the Debtors to
effectively analyze the asserted liability, he says.
Mr. Miller relates that the Debtors contacted Mr. Towns on several
occasions requesting information to ascertain the nature and
validity of the Claim. Mr. Towns only referred to the Alleged
Work Accident in 1965, which was the subject of the Florida
Litigation, Mr. Miller says.
Mr. Towns never discussed the Litigation even though the Claim was
obviously founded upon its very same facts and circumstances and
assured the Debtors that he would send them documentation in
support of the Claim, but has failed to do so, Mr. Miller relates.
Moreover, while Mr. Towns has repeatedly complained about the
condition of his employment records, he has not articulated a
factual or legal basis for the Claim, Mr. Miller further notes.
"It . . . became increasingly clear that resolving the Towns Claim
without Court intervention would be unlikely," Mr. Miller asserts.
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)
GENERAL MOTORS: J. Mealer Wants Protocol for Administering Claims
-----------------------------------------------------------------
John Lewis Mealer asks the U.S. Bankruptcy Court for the Southern
District of New York to approve procedures for administering
claims in connection with the prosecution of a criminal offense
under Section 503(a)(1)(A),(3)(4)(A)(C) of the Bankruptcy Code.
Further, Mr. Lewis seeks access to the Bankruptcy Court in order
to claim the tort violations against the Debtors by their
admissions regarding malicious defamation, intellectual
interference with a prospective business advantage, tort and other
illegal anti-competitive practices and actions committed upon Mr.
Mealer on June 9, 2009.
Mr. Mealer owns an Arizona registered alternative fuel powered
automobile manufacturing company, with an internet based "interim"
website located at http://mealercompanies.com/
According to Mr. Mealer, on June 9, 2009, employees of the Debtors
entered in concert to the Mealer Web site, signed in as investor
under the guise of "money01", and proceeded to leave destructive
comments to Mealer and the pending business-growth funding of
Mealer Companies LLC.
Further, Mr. Mealer alleges that immediately after that
destructive act, GM followed up what they were claiming as "My
(their) Blog" by contacting the various private individuals who
made comments in regards to the GM attacks by telling them that
Mr. Mealer and the Mealer Automobile is a fraud. These led to the
subsequent loss of pending contract amount of $200,000,000, Mr.
Mealer said.
Additionally, Mr. Mealer said, that as a consequence of the
Debtors' blackening of his name and their malicious destruction of
the Mealer Company's goals for automobile manufacturing, he lost
(a) his good standing as a 'green automaker', (b) the respect due
him as a viable businessman, (c) untold future business capacity
and (d) other related matters.
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)
GOLDBERG-BAYMEADOWS: Files List of 20 Largest Unsecured Creditors
-----------------------------------------------------------------
Goldberg-Baymeadows, LLC, filed with the U.S. Bankruptcy Court for
the Middle District of Florida a list of its largest unsecured
creditors, disclosing:
Entity Nature of Claim Claim Amount
------ --------------- ------------
JEA Utility Service $22,890
21 West Church Street
Jacksonville, FL 32202
Luce Forward, Attorneys Legal Services $28,118
600 West Broadway
Suite 2600
San Diego, CA 92101
Ferber roofing, Inc. Roof Repair $14,000
4121 evergreen Avenue
Jacksonville, FL 32206
McKendree's Plumbing $5,704
Colliers Arnold Property Management $5,617
Metro Property Services $4,765
Pest Express Pest Control $3,900
C.S.S. Landscaping, Inc. Landscape $1,535
North American Clean
Sweeps Day Porter $1,270
Fire Fighters Equipment
Co. Annual Fire Monitoring $1,027
Colliers Dickinson Leasing Agent $873
Advanced Wiring Services Lighting Replacement $782
Aquatic System, Inc. Pond Maintenance $126
Lamp sales Unlimited, Inc. Light Bulbs $110
Pappas Metcalf Jenks
& Miller Legal Services $66
CEMEX Ceiling Tiles $45
AT&T Phone Related Claim Unknown
Black Gold Asphalt, Inc. Asphalt Repair Unknown
A1 Orange Cleaning Service Window Cleaning Unknown
Stripe Rite Pavement
Marking Pavement Painting Unknown
About Goldberg-Baymeadows, LLC
Rancho Mirage, California-based Goldberg-Baymeadows, LLC, filed
for Chapter 11 bankruptcy protection on March 2, 2010 (Bankr. M.D.
Fla. Case No. 10-01637). Jason B. Burnett, Esq., at GrayRobinson,
P.A., assists the Company in its restructuring effort. The
Company listed $10,000,001 to $50,000,000 in assets and $1,000,001
to $10,000,000 in liabilities.
GOLDSTAKE EXPLORATIONS: Provides First Default Status Report
------------------------------------------------------------
Goldstake Explorations Inc. is providing this bi-weekly Default
Status Report in accordance with National Policy 12-203 - Cease
Trade Orders for Continuous Disclosure Defaults. The Company
announces that, due to financial hardship, there will be a delay
in filing its Annual Audited Financial Statements, Management
Discussion & Analysis and Annual Information Form for the
Company's financial year ended December 31, 2009 within the 90 day
period prescribed for the filing of the Annual Materials.
A general Cease Trade Order has been imposed as the Company failed
to satisfy the provisions of the Alternative Information
Guidelines required pursuant to NP 12-203.
The Company plans to work with its auditors, when possible, to
complete the audit of the Company's Annual Financial Statements as
soon as possible. Until its Annual Materials are filed, the
Company intends to satisfy the Alternative Information Guidelines
by issuing bi-weekly Default Status Reports, each of which will be
issued in the form of a press release. The Company intends, if
applicable, to issue its next Default Status Report on April 21,
2010.
There has not been any other specified default by the Company
under NP 12-203, nor are any anticipated and there is no other
material information concerning the affairs of the Company that
has not been generally disclosed.
GORDON PARK: Case Summary & 6 Largest Unsecured Creditors
---------------------------------------------------------
Debtor: Gordon Park Apartments, LLC
2989 Highway 50 East
Carson City, NV 89701
Bankruptcy Case No.: 10-51330
Chapter 11 Petition Date: April 13, 2010
Court: U.S. Bankruptcy Court
District of Nevada (Reno)
Judge: Gregg W. Zive
Debtor's Counsel: Alan R. Smith, Esq.
505 Ridge Street
Reno, NV 89501
Tel: (775) 786-4579
E-mail: mail@asmithlaw.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A copy of the Company's list of 6 largest unsecured creditors
filed together with the petition is available for free at:
http://bankrupt.com/misc/nvb10-51330.pdf
The petition was signed by Dwight C. Millard, managing member.
GRAFTECH INTERNATIONAL: Moody's Puts 'Ba1' Rating on $230MM Loan
----------------------------------------------------------------
Moody's Investors Service moved GrafTech International Ltd.'s
rating outlook to positive from stable, assigned a Ba1 rating to
new $230 million senior secured revolving credit facility,
affirmed its Ba2 Corporate Family Rating and moved its Probability
of Default rating to Ba3. The new revolving credit facility will
replace the company's existing undrawn $215 million revolver
maturing in July 2010.
This summarizes the ratings.
GrafTech International Ltd.
Ratings affirmed:
* Corporate Family Rating -- Ba2
* Speculative Grade Liquidity rating -- SGL3
Rating change:
* Probability of default rating -- Ba3 (from Ba2)
GrafTech Finance Inc.
Rating assigned:
* Gtd sr sec revolving credit facility due 2013 -- Ba1 (LGD2, 24%)
Rating to be withdrawn upon completion of new revolver
* Gtd sr sec revolving credit facility due 2010 -- Ba1 (LGD2, 24%)
from Ba1 (LGD3, 36%)
* Outlook: positive
The move to a positive outlook reflects Moody's expectations that
the company will produce positive free cash flow over the next
four quarters, generate metrics supportive of a higher rating
despite the possibility of adding leverage (in conjunction with an
acquisition or investments) and maintain adequate liquidity.
GrafTech is under levered for its rating category after
significant debt reduction in 2007-2009 that repaid all of its
balance sheet debt, but the company is expected to increase its
leverage either by pursuing acquisitions and/or investment
opportunities, or recapitalizing its balance sheet. The rating
and outlook incorporates the expectation that the company could
increase net debt toward $500 million or more within the next two
years. If these potential investments or recapitialization are
financed in a manner consistent with management's stated financial
policies, the company could support a higher rating. The relative
stabilization and moderate growth of the global economy is
expected to lead to a significant rebound in demand for the
company's graphite electrodes from the anemic levels in 2009.
Moody's views the refinancing of the company's revolver as a
positive for its liquidity and would expect to upgrade GrafTech's
Speculative Grade Liquidity rating to SGL1 (from SGL3) upon
completion of the transaction. The company's liquidity is
expected to be supported by positive free cash flow in 2010, the
new $230 million revolving credit facility due 2013 and cash
balances ($50 million as of December 31, 2009). Additionally,
the company has an accounts receivable securitization program
($25 million) and supply chain financing agreement ($50 million)
that are renewed on an annual basis. The new revolver will have
an accordion feature allowing commitments to be expanded to
$340 million, subject to bank approval. The new facility does
have financial covenants (Sr. Secured Leveraged Ratio and Coverage
Ratio) that can limit availability if earnings decline
significantly from current levels.
The new revolver's issue rating was assigned in accordance with
Moody's loss given methodology and reflects the use of an expected
recovery rate for firm of 65% in the case of a distressed scenario
due to the all bank debt structure. (A recovery rate of 50% was
used in the past when GrafTech had both bank debt and notes in its
capital structure, however it repaid the remaining portion of its
notes in 2009.) As a result of the increase in recovery rate, the
Probability of Default rating was moved to Ba3 from Ba2.
GrafTech has a relatively narrow product line, significant market
shares in the markets in which it competes and relatively low cost
manufacturing facilities located on four continents. However, the
company does have exposure to cyclical end markets (the steel
industry) and to volatile raw materials costs (needle coke
accounts for approximately 40% of the manufacturing cost of
graphite electrodes) and energy costs, which are not correlated
with the price of steel. Limited leverage in negotiating pricing
with its suppliers and the fact that its customers are large steel
producers gives the company limited ability to control its margins
throughout the business cycle. GrafTech has recently had a good
track record of cash flow generation, producing meaningful amounts
of positive free cash flow in each of the last three years,
despite the economic downturn.
Moody's most recent announcement concerning the ratings for
GrafTech was on March 3, 2009, when GrafTech's speculative grade
liquidity rating was lowered to SGL-3 as a result of an expected
decline in the company's near-term cash flows.
GrafTech International Ltd., headquartered in Parma, Ohio, is a
leading global manufacturer of graphite electrodes, and other
graphite products. Revenues were $659 million for the LTM ended
December 31, 2009.
GREATER GERMANTOWN: Section 341(a) Meeting Scheduled for May 11
---------------------------------------------------------------
The U.S. Trustee for Region 3 will convene a meeting of Greater
Germantown Housing Development Corporation's creditors on May 11,
2010, at 1:00 p.m. The meeting will be held at 833 Chestnut
Street, Suite 501, Philadelphia.
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.
Philadelphia, Pennsylvania-based Greater Germantown Housing
Development Corporation filed for Chapter 11 bankruptcy protection
on April 1, 2010 (Bankr. E.D. Pa. Case No. 10-12614). Thomas
Daniel Bielli, Esq., at Ciardi Ciardi & Astin, P.C., assists the
Company in its restructuring effort. The Company estimated its
assets and debts at $10,000,000 to $50,000,000.
GROWER CRANE: Case Summary & 5 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: Grower Crane Service, Inc.
264 Clover Court
Saint Johns, FL 32259
Bankruptcy Case No.: 10-02936
Chapter 11 Petition Date: April 8, 2010
Court: U.S. Bankruptcy Court
Middle District of Florida (Jacksonville)
Judge: Jerry A. Funk
Debtor's Counsel: Albert H. Mickler, Esq.
5452 Arlington Expressway
Jacksonville, FL 32211
Tel: (904) 725-0822
E-mail: cmickler_32277@yahoo.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $500,001 to $1,000,000
According to the schedules, the Company says that assets total $
1,051,555 while debts total $892,447.
A copy of the Company's list of 5 largest unsecured creditors
filed together with the petition is available for free at:
http://bankrupt.com/misc/flmb10-02936.pdf
The petition was signed by Robert C. Grower, president.
GSC INVESTMENT: Enters Into Definitive Deal with Saratoga
---------------------------------------------------------
GSC Investment Corp. disclosed that Saratoga Investment Advisors,
LLC and CLO Partners LLC have agreed to purchase a minority stake
in the Company as part of a $55 million recapitalization plan to
enable the Company to grow its business of lending to middle-
market companies. The Company has been in default under its
credit facility since last July.
The recapitalization plan includes Saratoga and CLO Partners
purchasing approximately 9.8 million shares of common stock of GSC
Investment Corp. for $1.52 per share pursuant to a definitive
stock purchase agreement for a minority investment, pro forma for
the issuance of the new shares, of approximately 37% of the
Company's equity. The closing of the transaction is subject to
the satisfaction of certain conditions including the approval of
certain elements of the transaction by the Company's stockholders.
Saratoga and CLO Partners are entities wholly or majority owned by
Christian L. Oberbeck, Managing Director of Saratoga Partners, an
affiliate of Saratoga.
The recapitalization plan also includes a commitment from Madison
Capital Funding LLC to provide the Company with a $40 million
senior secured revolving credit facility. Upon the closing of the
transaction, the Company will immediately borrow funds under the
new credit facility that, when added to the $15 million equity
investment, will be sufficient to repay the full amount of the
Company's existing debt and to provide the Company with working
capital thereafter. The closing of the new credit facility is
subject to the execution of definitive documentation and the
satisfaction of certain conditions.
Since July of 2009, the Company has been in default under its
existing credit facility and has received multiple letters from
its lender, Deutsche Bank A.G., New York Branch, reserving the
lender's right to seek remedies for the existing event of default,
including foreclosing on the collateral securing the existing
credit facility. Under such circumstances involving a foreclosure
or similar process, the sale of fund assets under such conditions
could result in materially lower proceeds than if sold in an
orderly manner over a reasonable period of time. Despite an
ongoing effort on the part of the Company, which included
reduction of the Company's existing debt by more than $20 million
since the default and extensive discussions to reach an
independent agreement with Deutsche Bank to remedy the existing
event of default in a manner satisfactory to both parties, the
parties have been unable to reach a satisfactory resolution
without the need for additional capital. The Company and Deutsche
Bank have entered into a forbearance agreement, where Deutsche
Bank waives its rights under the default for a specified period of
time to allow the recapitalization to close.
Under the terms of the stock purchase agreement and subject to
approval by the Company's stockholders, Saratoga will replace GSC
Group as GSC Investment Corp.'s external investment manager and
administrator. The terms and conditions of the investment
advisory and management agreement with Saratoga, taken as a whole,
will be more favorable to Saratoga than the agreement currently in
place with GSC Group, but the Company believes these terms and
conditions to be consistent with the market for publicly traded,
externally managed business development companies.
Upon transaction close, the Company's current Chief Executive
Officer, Chief Financial Officer and Vice President, Secretary and
Chief Compliance Officer will be replaced by corporate officers of
Saratoga. Mr. Oberbeck will be appointed CEO and Richard A.
Petrocelli will be appointed CFO and CCO. Saratoga intends to
supplement its capabilities in the management of the Company's
investments by recruiting and hiring additional professionals with
experience in the management of debt investments and
collateralized loan obligations.
Similarly, the Company's GSC Group-affiliated board members will
be replaced by Mssrs. Oberbeck and Petrocelli. The overall size
and composition of the Board of Directors will otherwise remain
unchanged. At closing, the Company will change its name to
Saratoga Investment Corp. The Company headquarters will be in New
York City.
Promptly following closing, the Company plans to effect a 1:10
tax-free reverse stock split, pursuant to which each Company
stockholder will receive one share of Company common stock in
exchange for every 10 shares owned at that time. After giving
effect to the minority investment by Saratoga and the 1:10 reverse
stock split, the total number of shares of Company common stock
outstanding will be approximately 2.7 million.
"Since late in the 2008 calendar year, Company management and our
Board have performed a lengthy review of numerous strategic and
refinancing options, in consultation with Stifel Nicolaus, for
curing defaults under the Company's current credit facility while
maximizing stockholder value. We feel that this transaction is
the best alternative for the Company given the current market
conditions and existing credit facility constraints, including the
risk of foreclosure," said Seth M. Katzenstein, Chief Executive
Officer of GSC Investment Corp.
Mr. Oberbeck, Managing Director of Saratoga Partners, said, "This
new partnership not only cures GSC Investment Corp.'s existing
default, but it will also put the Company on a trajectory for
growth and profitability. The Company can now get back to the
business of lending to companies poised to grow as the economy
recovers."
In a special board meeting on April 9, 2010, GSC Investment
Corp.'s Board of Directors unanimously approved the stock purchase
agreement and the transactions contemplated thereby with Saratoga
and, subject to certain conditions, will recommend its approval
and the approval of certain other elements of the transaction by
GSC Investment Corp.'s stockholders. The Company intends to hold
a special stockholder meeting as soon as practicable to secure
stockholder approval of certain elements of the transaction,
including the issuance of the shares at a price below the net
asset value per share. The transaction is also subject to certain
other closing conditions.
Certain affiliates of GSC Investment Corp., and its officers and
directors, have entered into a Voting and Support Agreement with
Saratoga and have agreed to vote their shares of GSC Investment
Corp. common stock in favor of the transactions contemplated by
the stock purchase agreement.
A more in-depth discussion of the transaction will be found in the
Company's proxy statement to be filed no later than May 14, 2010
with the Securities and Exchange Commission.
Stifel, Nicolaus & Company, Incorporated served as financial
advisor to GSC Investment Corp. in connection with the transaction
and has issued a fairness opinion letter to the Board of Directors
of the Company. Venable LLP served as GSC Investment Corp.'s
legal counsel on Maryland law and related matters and Davis Polk &
Wardwell LLP served as GSC Investment Corp.'s legal counsel in
connection with the transaction and related matters.
Sutherland, Asbill & Brennan LLP served as Saratoga's legal
counsel in connection with the transaction and related matters.
About GSC Investment Corp.
GSC Investment Corp. is a specialty finance company that invests
primarily in leveraged loans and mezzanine debt issued by U.S.
middle-market companies, high yield bonds and collateralized loan
obligations. It has elected to be treated as a business
development company under the Investment Company Act of 1940. The
Company may also opportunistically invest in distressed debt, debt
issued by non-middle market companies, and equity securities
issued by middle and non-middle market companies. The Company
draws upon the support and investment advice of its external
manager, GSC Group, an alternative asset investment manager that
focuses on complex, credit-driven strategies. GSC Investment Corp.
is traded on the New York Stock Exchange under the symbol "GNV."
HCA INC: Adopts 2010 Sr. Officer Performance Excellence Program
---------------------------------------------------------------
The Compensation Committee of the Board of Directors of HCA Inc.
on March 31, 2010, adopted the 2010 Senior Officer Performance
Excellence Program. Under the Senior Officer PEP, the executive
officers of the Company shall be eligible to earn performance
awards based upon the achievement of certain specified performance
targets. The specified performance criteria for the Company's
named executive officers and other participants is EBITDA, and
with respect to the President -- Western Group and President --
Central Group 50% of their respective award opportunities are
based on EBITDA for the Company's Western Group and the Company's
Central Group, respectively. Target awards for the named
executive officers are the same as for 2009 and are:
130% of base salary for Richard M. Bracken, HCA's
Chairman and CEO;
80% of base salary for R. Milton Johnson, HCA's
Executive Vice President and CFO;
66% of base salary for Beverly B. Wallace, HCA's
President - Shared Services Group;
66% of base salary for Samuel N. Hazen, HCA's President
- Western Group; and
66% of base salary for W. Paul Rutledge, HCA's
President - Central Group.
Participants will receive 100% of the target award for target
performance, 25% of the target award for a minimum acceptable
(threshold) level of performance, and a maximum of 200% of the
target award for maximum performance.
No payments will be made for performance below specified threshold
amounts. Payouts between threshold and maximum will be calculated
by the Committee in its sole discretion using straight-line
interpolation. The Committee may make adjustments to the terms
and conditions of, and the criteria included in, awards under the
Senior Officer PEP in recognition of unusual or nonrecurring
events affecting a participant or the Company, or the financial
statements of the Company, or in certain other instances specified
in the Senior Officer PEP.
The Committee may apply negative discretion to final award
determinations with respect to any of the named executive officers
based on the Committee's subjective evaluation of the named
executive officer's annual performance including, if and as
determined by the Committee, an evaluation of quality of
performance with a primary focus on CMS Core Measures and HCAHPS
performance against industry benchmarks. However, no adjustment
to an individual award will exceed 20% of the "target" award of
the individual.
Awards pursuant to the Senior Officer PEP that are attributable to
the performance goals being met at "target" level or below will be
paid solely in cash, and, in the event performance goals are
achieved above the "target" level, the amount of an award
attributable to performance results in excess of "target" levels
shall be payable 50% in cash and 50% in restricted stock units.
In addition, awards pursuant to the Senior Officer PEP are subject
to recovery or adjustment by the Company in certain circumstances
in which the operating results on which the payment was based were
restated or otherwise adjusted or in the event a participant's
conduct is not in good faith and materially disrupts, damages,
impairs or interferes with the business of the Company and its
affiliates.
About HCA
Headquartered in Nashville, Tennessee, HCA is the nation's largest
acute care hospital company with 155 hospitals and 97 freestanding
surgery centers owned and operated by its subsidiaries and another
eight hospitals and eight freestanding surgery centers that are
accounted for using the equity method as of September 30, 2009.
HCA Inc. reported $24.13 billion in total assets and $31.96
billion total liabilities resulting to a $7.98 billion
stockholders' deficit as of Dec. 31, 2009.
* * *
According to the Troubled Company Reporter on Feb. 2, 2010,
Moody's Investors Service commented that HCA Inc.'s planned use of
its ABL and cash flow revolvers to fund the payment of a dividend
to shareholders has no immediate impact on the ratings of the
Company, including the B2 Corporate Family and Probability of
Default Ratings.
HCA INC: Delays Exchange Offer for Freely Tradable Secured Notes
----------------------------------------------------------------
HCA Inc. has delayed a planned exchange offer of unregistered
senior secured notes for roughly $4.5 billion of freely tradable
senior secured notes that have been registered under the
Securities Act.
HCA offers to exchange:
$310,000,000 of 9-7/8% Senior Secured Notes due 2017;
$1,500,000,000 of 8-1/2% Senior Secured Notes due 2019;
$1,250,000,000 of 7-7/8% Senior Secured Notes due 2020;
$1,400,000,000 of 71/4% Senior Secured Notes due 2020,
each of which have been registered under the Securities Act of
1933, as amended, for any and all of its outstanding:
9-7/8% Senior Secured Notes due 2017;
8-1/2% Senior Secured Notes due 2019;
7-7/8% Senior Secured Notes due 2020; and
7-1/4% Senior Secured Notes due 2020.
HCA has filed a Form S-4 Registration Statement under the
Securities Act of 1933 with the Securities and Exchange Commission
to register the exchange notes.
The terms of the exchange notes to be issued in the exchange
offers are substantially identical to the outstanding notes,
except that the exchange notes will be freely tradable.
A full-text copy of the Registration Statement is available at no
charge at http://ResearchArchives.com/t/s?6013
On March 10, 2010, the Company issued $1,400,000,000 aggregate
principal amount of 7-1/4% senior secured notes due 2020, which
mature on September 15, 2020, pursuant to an indenture, dated as
of March 10, 2010, among the Company, the guarantors party
thereto, Deutsche Bank Trust Company Americas, as paying agent,
registrar and transfer agent, and Law Debenture Trust Company of
New York, as trustee.
Interest on the Notes will be payable in cash. Interest on the
Notes is payable on March 15 and September 15 of each year,
commencing on September 15, 2010.
Additional information regarding the Indenture and Senior
Secured Notes due 2020 is available at no charge at:
http://ResearchArchives.com/t/s?6015
About HCA
Headquartered in Nashville, Tennessee, HCA is the nation's largest
acute care hospital company with 155 hospitals and 97 freestanding
surgery centers owned and operated by its subsidiaries and another
eight hospitals and eight freestanding surgery centers that are
accounted for using the equity method as of September 30, 2009.
HCA Inc. reported $24.13 billion in total assets and
$31.96 billion total liabilities resulting to a $7.98 billion
stockholders' deficit as of Dec. 31, 2009.
* * *
According to the Troubled Company Reporter on Feb. 2, 2010,
Moody's Investors Service commented that HCA Inc.'s planned use of
its ABL and cash flow revolvers to fund the payment of a dividend
to shareholders has no immediate impact on the ratings of the
Company, including the B2 Corporate Family and Probability of
Default Ratings.
HCA INC: Lenders Extend $2-Bil. Tranche B Term Loans Until 2017
---------------------------------------------------------------
HCA Inc. on April 6, 2010, entered into Extension Amendment No. 1
to its Credit Agreement, dated as of November 17, 2006, with
affiliate HCA UK Capital Limited and Bank of America, N.A., as
administrative agent and collateral agent for the Lenders.
Among other things, the Extension Amendment (i) extends the
maturity date of $2.0 billion of the Borrowers' tranche B term
loans held by the Lenders to March 31, 2017; and (ii) increases
the ABR margin and LIBOR margin with respect to such extended term
loans to 2.25% and 3.25%, respectively. The maturity date,
interest margins and fees, as applicable, with respect to all
other loans, and all commitments and letters of credit,
outstanding under the Credit Agreement remain unchanged.
A full-text copy of the Extension Amendment No. 1 is available at
no charge at http://ResearchArchives.com/t/s?6012
About HCA
Headquartered in Nashville, Tennessee, HCA is the nation's largest
acute care hospital company with 155 hospitals and 97 freestanding
surgery centers owned and operated by its subsidiaries and another
eight hospitals and eight freestanding surgery centers that are
accounted for using the equity method as of September 30, 2009.
HCA Inc. reported $24.13 billion in total assets and $31.96
billion total liabilities resulting to a $7.98 billion
stockholders' deficit as of Dec. 31, 2009.
* * *
According to the Troubled Company Reporter on Feb. 2, 2010,
Moody's Investors Service commented that HCA Inc.'s planned use of
its ABL and cash flow revolvers to fund the payment of a dividend
to shareholders has no immediate impact on the ratings of the
Company, including the B2 Corporate Family and Probability of
Default Ratings.
HCA INC: Major Shareholder Hercules Re-elects 13 Directors
----------------------------------------------------------
R. Milton Johnson, Executive Vice President and Chief Financial
Officer of HCA Inc., disclosed that on April 1, 2010, Hercules
Holding II, LLC -- the holder of 91,845,692 shares, or 97.1%, of
HCA's issued and outstanding shares of capital stock -- executed a
written consent in lieu of an annual meeting removing and
re-electing Richard M. Bracken, R. Milton Johnson, Christopher J.
Birosak, John P. Connaughton, James D. Forbes, Kenneth W. Freeman,
Thomas F. Frist III, William R. Frist, Christopher R. Gordon,
Michael W. Michelson, James C. Momtazee, Stephen G. Pagliuca, and
Nathan C. Thorne as the Board of Directors of the Company. That
consent and the election of directors will become effective on or
about April 28, 2010. The directors will serve until their
successors are duly elected and qualified or until the earlier of
their death, resignation, or removal. A notice of the stockholder
action will be sent to the holders of record of HCA's issued and
outstanding capital stock as of the close of business on the
record date, April 1, 2010.
A full-text copy of the Information Statement filed by HCA is
available at no charge at http://ResearchArchives.com/t/s?6014
About HCA
Headquartered in Nashville, Tennessee, HCA is the nation's largest
acute care hospital company with 155 hospitals and 97 freestanding
surgery centers owned and operated by its subsidiaries and another
eight hospitals and eight freestanding surgery centers that are
accounted for using the equity method as of September 30, 2009.
HCA Inc. reported $24.13 billion in total assets and $31.96
billion total liabilities resulting to a $7.98 billion
stockholders' deficit as of Dec. 31, 2009.
* * *
According to the Troubled Company Reporter on Feb. 2, 2010,
Moody's Investors Service commented that HCA Inc.'s planned use of
its ABL and cash flow revolvers to fund the payment of a dividend
to shareholders has no immediate impact on the ratings of the
Company, including the B2 Corporate Family and Probability of
Default Ratings.
HICKS SPORTS: Texas Rangers May Be Forced into Bankruptcy
---------------------------------------------------------
The Texas Rangers may be forced into bankruptcy unless the terms
of a planned sale of the Major League Baseball team controlled by
billionaire Thomas Hicks are improved or another buyer is found,
Jonathan Keehner at Bloomberg News reported, citing two people
familiar with the matter.
According to the report, the people involved with the private
talks said that creditors led by Monarch Alternative Capital may
block Hicks Sports Group LLC, which defaulted on $525 million of
debt last year, from selling the Rangers and try to put the team
into bankruptcy. The creditor group, which includes CIT Group
Inc. and Galatioto Sports Partners LLC, is seeking at least $30
million more from the team's sale.
"Hicks Sports Group has worked diligently with Major League
Baseball and HSG's lenders over the past six months and brought to
the table outstanding potential buyers for the Texas Rangers,"
Hicks Sports Group spokeswoman Lisa LeMaster said in an e-mailed
statement to Bloomberg.
As reported by the TCR on April 15, 2009, Hicks Sports Group was
declared to be in default by a group of 40 financial institutions
and other investors holding $525 million in debt. The Company
missed a $10 million quarterly interest payment on March 31, 2009,
triggering the default notice.
About Hicks Sports
Hicks Sports Group -- http://www.hickssportsgroup.com/-- was
formed in 1999 as a sports and entertainment holding company
controlled by Thomas O. Hicks. Prior to the formation of HSG, Mr.
Hicks acquired the Dallas Stars in 1996 and then acquired the
Texas Rangers from the George W. Bush/Edward W. Rose partnership
in 1998. HSG was formed to oversee the Hicks family's sports
teams, as well as the Hicks family's sports-related real estate
developments.
In a joint venture with an affiliate of the Dallas Mavericks, HSG
owns a 50% stake in Center Operating Company, the group that
manages and leases the American Airlines Center, which is home to
the Dallas Stars and the Dallas Mavericks NBA team. Further, HSG
operates Hicks Sports Marketing Group, an entity formed in 2006 to
represent sports branding opportunities and corporate sponsorships
for HSG, most notably for the Stars, the Rangers, and real estate
projects related to Hicks' sports venues. HSG has an interest in
eight Dr. Pepper StarCenter facilities, including the StarCenter
in Frisco, Texas, that serves as the practice facility for the
Dallas Stars, and owns approximately 40 acres surrounding the Dr.
Pepper/7 Up Ballpark in Frisco, which is designated for future
mixed-use development. In Arlington, HSG is involved in the
development of over 100 acres, as an exciting mixed-use
development focused on restaurants and entertainment, planned
between the Rangers Ballpark in Arlington and the new Dallas
Cowboys Stadium.
HIGH RIVER: Posts First Default Status Report
---------------------------------------------
High River Gold Mines Ltd. is providing its first bi-weekly
Default Status Report in accordance with National Policy 12-203 -
Cease Trade Orders for Continuous Disclosure Defaults ("NP 12-
203"). On March 31, 2010, High River announced that its audited
financial statements, management's discussion and analysis, annual
information form and related CEO and CFO certifications for the
year ended December 31, 2009, would be filed late. A temporary
management cease trade order in respect of securities of the
Company was issued by the Ontario Securities Commission on
April 7, 2010.
High River indicated in the original Notice of Default that it
anticipated that the Annual Filings would be filed by April 15,
2010. High River now anticipates that the Annual Filings will be
filed by April 20, 2010. High River reports that since announcing
the original Notice of Default on March 31, 2010, other than the
anticipated additional delay, there have not been any material
changes to the information contained therein, nor any failure by
High River to fulfill its intentions as stated therein, and there
are no additional defaults or anticipated defaults subsequent to
such announcement. Furthermore, there have been no additional
material changes in respect of High River and its affairs that
have not been generally disclosed.
High River will continue to provide bi-weekly updates, as
contemplated by NP 12-203, until the Annual Filings have been
filed.
About High River
High River is unhedged gold company with interests in producing
mines and advanced exploration projects in Russia and Burkina
Faso. Two producing mines, Zun-Holba and Irokinda, are situated in
the Lake Baikal region of Russia. Two new open pit gold mines,
Berezitovy in Russia and Taparko-Bouroum in Burkina Faso, are also
in production. Finally, High River has two advanced exploration
projects with NI 43-101 compliant resource estimates, the Bissa
gold project in Burkina Faso and a 50% interest in the Prognoz
silver project in Russia.
HOLIDAY 360: Section 341(a) Meeting Scheduled for May 7
-------------------------------------------------------
The U.S. Trustee for Region 6 will convene a meeting of creditors
of Holiday 360, Ltd., Hotel 635 Beltline, LP, and Stay 190, Ltd.,
creditors on May 7, 2010, at 2:00 p.m. The meeting will be held
at Fritz G. Lanham Federal Building, 819 Taylor Street, Room 7A24,
Ft. Worth, TX 76102.
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.
Irving, Texas-based Holiday 360 Ltd. is a single asset real
estate. It filed for Chapter 11 bankruptcy protection on April 5,
2010 (Bankr. N.D. Texas Case No. 10-42412). The Company estimated
its assets and debts at $10,000,000 to $50,000,000.
These affiliates filed separate Chapter 11 petitions on April 5,
2010:
-- Hotel 635 Beltline, LP (Case No. 10-42415), estimating its
assets and debts at $10 million to $50 million; and
-- Stay 190, Ltd. (Case No. 10-42413), estimating its
assets and debts at $10 million to $50 million.
John C. Leininger, Esq., at Bryan Cave LLP, assist the Debtors in
their restructuring efforts.
HILYER PROPERTIES: Case Summary & 3 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Hilyer Properties, LLC
937 Gault Avenue North
Ft. Payne, AL 35967
Bankruptcy Case No.: 10-41076-JJR11
Chapter 11 Petition Date: April 14, 2010
Court: United States Bankruptcy Court
Northern District Of Alabama (Anniston)
Judge: Judge James J. Robinson
Debtor's Counsel: Harry P Long, Esq.
PO Box 1468
Anniston, AL 36202
Tel: (256) 237-3266
E-mail: hlonglegal@aol.com
Estimated Assets: $50,001 to $100,000
Estimated Debts: $1,000,001 to $10,000,000
A list of the Company's 20 largest unsecured creditors filed
together with the petition is available for free at:
http://bankrupt.com/misc/alnb10-41076.pdf
The petition was signed by Gary Hilver, General Partner.
HOMEBANC MORTGAGE: Suit Against Ex-Executives Dismissed
-------------------------------------------------------
A federal judge has dismissed a putative class action accusing two
former HomeBanc Mortgage Corp. executives of fraudulently painting
an overly rosy picture of the now-defunct mortgage lender's
financial health and inflating stock prices before the company's
collapse, according to Bankruptcy Law360.
About Homebanc Mortgage
Headquartered in Atlanta, Georgia, HomeBanc Mortgage Corporation
-- http://www.homebanc.com/-- was a mortgage banking company
focused on originating primarily prime purchase money residential
mortgage loans in the Southeast United States.
HomeBanc Mortgage together with five affiliates filed for chapter
11 protection on Aug. 9, 2007 (Bankr. D. Del. Case Nos. 07-11079
through 07-11084). Joel A. Waite, Esq., at Young, Conaway,
Stargatt & Taylor was selected by the Debtors to represent them in
these cases. The Official Committee of Unsecured Creditors
selected the firm Otterbourg, Steindler, Houston and Rosen, P.C.
as its counsel. As reported in the Troubled Company Reporter, at
July 31, 2008, HomeBanc Mortgage Corporation and subsidiaries had
total assets of $16,850,000, total liabilities of $182,525,000,
minority interest of $64,000, and stockholders deficit of
$165,739,000.
INNOVATIVE TECHNOLOGY: Files List of Largest Unsecured Creditors
----------------------------------------------------------------
Innovative Technology Business Park, LLC, filed with the U.S.
Bankruptcy Court for the Eastern District of California a list of
its 20 largest unsecured creditors, disclosing:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Silliker, Inc. Tenant improvements $500,000
5262 Pirrone Court
Salida, CA 95368
Oliveira Lucas Enterprises Construction Expense $143,142
dba Acme Electric
P.O. Box 766
Turlock, CA 95353
Allied Concrete & Supply
Co. Construction Expense $124,000
P.O. Box 1022
Modesto, CA 95353
Banc of America Leasing
& Capital Generator $120,000
($100,000
secured)
CB Richard Ellis, Inc. Commission $81,000
Horizon Landscaping Construction Expense $76,000
United Rentals Northwest Construction Expense $70,000
PMZ Commercial Real Estate Commissions $55,000
A-1 Glass Co. Inc. Construction Expense $52,003
Northern Steel Construction Expense $46,374
R & S Erection Tri County Construction Expense $18,320
SkyVa Construction Construction Expense $17,000
Marquez Janitorial Janitorial Service $5,700
Brunk Industries, Inc. Construction Expense $3,300
Dehart Plumbing Heating
& Air Inc. Construction Expense $2,608
Odyssey Sweeping Services,
Inc. Maintenance $936
Hampton's Backhoe Service Construction Expense $475
About Innovative Technology Business Park
Salida, California-based Innovative Technology Business Park, LLC,
filed for Chapter 11 bankruptcy protection on March 22, 2010
(Bankr. E.D. Calif. Case No. 10-91022). David C. Johnston, Esq.,
who has an office in Modesto, California, assists the Company in
its restructuring effort. The Company estimated its assets and
debts at $10,000,001 to $50,000,000.
INNOVATIVE COMPANIES: Wants Plan Filing Extended Until June 12
--------------------------------------------------------------
The Innovative Companies LLC, et al., ask the U.S. Bankruptcy
Court for the Eastern District of New York to extend their
exclusive period to file a Plan of Reorganization from May 14 to
June 12. The Debtors also ask the Court to extend the
solicitation period from July 12 to September 10.
The Debtors propose a hearing on their exclusive periods extension
on May 4, 2010, at 11:00 a.m. Objections, if any, are due on
April 26, 2010, at 4:00 p.m.
The Debtors are represented by:
Moritt Hock Hamroff & Horowitz LLP
Leslie A. Berkoff, Esq.
Robert S. Cohen, Esq.
Stephen E. Turman, Esq.
400 Garden City Plaza
Garden City, NY 11530
Tel: (516) 873-2000
Headquartered in Hauppauge, New York, The Innovative Companies LLC
and its affiliates filed for Chapter 11 protection on April 17,
2009 (Bankr. E.D.N.Y. Lead Case No. 09-72669). Leslie A. Berkoff,
Esq., at Moritt Hock Hamroff Horowitz LLP, represents the Debtors
in their restructuring efforts. David M. Banker, Esq., at
Lowenstein Sandler PC, represents the official committee of
unsecured creditors as counsel. In its petition, the Company
listed between $10 million and $50 million each in assets and
debts.
INTERNATIONAL WIRE: Moody's Assigns 'B2' Corporate Family Rating
----------------------------------------------------------------
Moody's Investors Service assigned International Wire Group, Inc.
a B2 corporate family rating, a B2 probability-of-default rating,
and a B3 rating to its proposed $140 million senior secured notes
due 2015. The company plans to use proceeds from the senior
secured notes to refinance existing debt and to pay a $60 million
dividend. As part of this transaction, the company plans to
complete an amendment to its existing asset-based revolving credit
facility (unrated) that would extend the maturity date and reduce
the commitment to $150 million from $200 million. The ratings
outlook is stable. All ratings are subject to review of final
documentation.
International Wire's B2 corporate family rating reflects its
modest scale, exposure to cyclical end-markets, a significant
contraction in product volumes in 2009, and the magnitude of the
proposed dividend in the context of a continued weak economic
environment. Notwithstanding these concerns, the rating is
supported by the company's pro forma leverage that is solid for
the ratings category, its leading position in niche copper wire
markets, a recent stabilization in product volumes, and the
likelihood that an improved economic environment should translate
into volume growth over the medium-term.
These ratings were assigned:
* Corporate family rating at B2;
* Probability-of-default rating at B2;
* $140 million senior secured notes due 2015 at B3 (LGD5, 73%).
The stable outlook reflects Moody's expectation that International
Wire will organically expand its revenues and earnings over the
medium-term such that credit metrics will improve from initial pro
forma levels.
Headquartered in Camden, New York, International Wire Group, Inc.,
manufactures and markets wire products, including bare and tin-
plated copper wire, engineered products and high performance
conductors, for other wire suppliers, distributors and original
equipment manufacturers.
INTERNATIONAL WIRE: S&P Assigns 'B' Corporate Credit Rating
-----------------------------------------------------------
Standard & Poor's Ratings Services assigned a 'B' corporate credit
rating to Camden, N.Y.-based International Wire Group Inc. The
rating outlook is positive. At the same time, S&P assigned a 'B'
issue-level rating (the same as the corporate credit rating) to
the company's proposed $140 million senior secured second-lien
notes due 2015. The recovery rating on this debt is '4',
indicating S&P's expectation of average (30% to 50%) recovery in
the event of a payment default. The company plans to use proceeds
from the notes to refinance its existing $75 million notes due
2011 and to pay a $60 million dividend to the equity holders.
"S&P's rating and outlook are based on S&P's assessment that
International Wire will have a pro forma capital structure and
earnings profile that will enable the company to maintain leverage
in the 3x to 4.5x area in the near term," said Standard & Poor's
credit analyst Sherwin Brandford. Pro forma for the transaction,
S&P expects the company's leverage to be about 3.25x based on
adjusted debt of around $150 million and S&P's estimate of rolling
last-12-month EBITDA of around $45 million as of March 31, 2010.
The ratings on International Wire reflect the company's vulnerable
business risk profile as evidenced by its exposure to both
volatile copper prices, cyclical end markets, its relatively small
size and scope, and its low operating margins. The ratings also
reflect the company's aggressive financial risk profile as
indicated by its somewhat aggressive financial policy. Partially
offsetting these factors is the company's historically good cash
flow generation relative to fixed charges and long-standing
customer relationships.
The positive rating outlook reflects S&P's assessment that there
is a fair likelihood that the company's EBITDA will remain above
$35 million in the near term, resulting in the maintenance of
credit metrics that are in line with a higher rating during this
period. Specifically, S&P believes that the company could
maintain leverage below 4x over the next several quarters, a level
consistent with a higher rating. Rating upside exists if leverage
remains below 4x over the next several quarters, a scenario that
will depend not only on the company's operating performance but
also the actions it takes regarding its financial profile,
particularly growth initiatives.
S&P could take a negative rating action if the company's leverage
exceeds 6x. S&P believes this can occur if the company pursues
external growth opportunities that are aggressively financed or if
volatile metal prices lead to compressed margins, resulting in
EBITDA declining below $25 million.
JAMES MORAN: Case Summary & 10 Largest Unsecured Creditors
----------------------------------------------------------
Joint Debtors: James Moran
Diana Moran
14252 Manderleigh Woods Drive
Town & Country, MO 63017
Bankruptcy Case No.: 10-43924
Chapter 11 Petition Date: April 13, 2010
Court: United States Bankruptcy Court
Eastern District of Missouri (St. Louis)
Judge: Kathy A. Surratt-States
Debtor's Counsel: A. Thomas DeWoskin, Esq.
Danna McKitrick, PC
7701 Forsyth, Suite 800
St. Louis, MO 63105
Tel: (314) 726-1000
E-mail: edmoecf@dmfirm.com
Scheduled Assets: $758,561
Scheduled Debts: $1,178,727
A list of the Company's 10 largest unsecured creditors is
available for free at http://bankrupt.com/misc/moeb10-43924.pdf
The petition was signed by James Moran and Diana Moran.
JEFFERY HERNANDEZ: Case Summary & 14 Largest Unsecured Creditors
----------------------------------------------------------------
Debtor: Jeffery Joseph Hernandez
13145 E. Gold Dust Avenue
Scottsdale, AZ 85259
Tel: (602) 307-0837
Bankruptcy Case No.: 10-10193
Chapter 11 Petition Date: April 8, 2010
Court: U.S. Bankruptcy Court
District of Arizona (Phoenix)
Judge: Charles G. Case II
Debtor's Counsel: Mark J. Giunta, Esq.
Law Office of Mark J. Giunta
1413 N 3rd Street
Phoenix, AZ 85004-1612
Tel: (602) 307-0837
Fax: (907) 307-0838
E-mail: mark.giunta@azbar.org
Estimated Assets: $500,001 to $1,000,000
Estimated Debts: $1,000,001 to $10,000,000
A copy of the Debtor's list of 14 largest unsecured creditors
filed together with the petition is available for free at:
http://bankrupt.com/misc/azb10-10193.pdf
The petition was signed by the Debtor.
JEWELED OBJECTS: Voluntary Chapter 11 Case Summary
--------------------------------------------------
Debtor: Jeweled Objects LLC
fdba Rest Cash Flow IV, LLC
226 West 26th Street, Floor 8
New York, NY 10001
Bankruptcy Case No.: 10-11831
Debtor-affiliates filing separate Chapter 11 petition:
Chapter 11 Petition Date: April 7, 2010
Court: U.S. Bankruptcy Court
Southern District of New York (Manhattan)
Judge: Robert D. Drain
Debtor's Counsel: Bruce R. Alter, Esq.
Alter & Goldman
550 Mamaroneck Avenue, Suite 510
Harrison, NY 10528
Tel: (914) 670-0030
Fax: (914) 670-0031
E-mail: altergold@aol.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Company did not file a list of creditors together with its
petition.
The petition was signed by Robert Hoberman of HGL Management LLC
and Mitchel May, managing members.
Debtor-affiliate that filed separate Chapter 11 petition:
Petition
Debtor Case No. Date
------ -------- ----
Old Delaware Jewels Inc., et al 08-11363 4/07/10
KID'S DOMAIN: Voluntary Chapter 11 Case Summary
-----------------------------------------------
Debtor: Kid's Domain, LLC
3 Greenway Drive
Leesburg, VA 20175
Tel: (703) 771-9658
Bankruptcy Case No.: 10-12729
Chapter 11 Petition Date: April 7, 2010
Court: U.S. Bankruptcy Court
Eastern District of Virginia (Alexandria)
Judge: Stephen S. Mitchell
Debtor's Counsel: Patrick R. Blasz, Esq.
Law Offices of Patrick R. Blasz
11490 Commerce Park Dr. Suite 240
Reston, VA 20191
Tel: (703) 964-3180
Fax: (703) 964-3183
E-mail: pblasz@blaszlaw.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Company did not file a list of creditors together with its
petition.
The petition was signed by Hyacinth A. P. McKinley, member.
KINSLEY FOREST: U.S. Trustee Unable to Form Creditors Committee
---------------------------------------------------------------
The Office U.S. Trustee for Region 13 notified the U.S. Bankruptcy
Court for the Western District of Missouri that it was unable to
appoint an official committee of unsecured creditors in the
Chapter 11 case of Kinsley Forest Estates, LLC.
The U.S. Trustee said that there were insufficient indications of
willingness from the unsecured creditors to serve in the
committee.
The U.S. Trustee reserves the right to appoint a committee if
interest develop among the creditors.
Lenexa, Kansas City-based Kinsley Forest Estates, LLC, filed for
Chapter 11 bankruptcy protection on March 2, 2010 (Bankr. W.D. Mo.
Case No. 10-40896). Nancy S. Jochens, Esq., at Jochens Law
Office, Inc., assists the Company in its restructuring effort.
According to the schedules, the Company has assets of $16,250,485,
and total debts of $7,859,000.
KJS SAMS: Voluntary Chapter 11 Case Summary
-------------------------------------------
Debtor: KJS Sams, Inc.
2320 Thompson Way, Unit G
Santa Maria, CA 93455
Bankruptcy Case No.: 10-11686
Chapter 11 Petition Date: April 8, 2010
Court: U.S. Bankruptcy Court
Central District of California (Santa Barbara)
Judge: Robin Riblet
Debtor's Counsel: John D. Faucher, Esq.
Hurlbett & Faucher
5743 Corsa Avenue Suite 116
Westlake Village, CA 91362
Tel: (818) 889-8080
Fax: (805) 367-4154
E-mail: john@hf-bklaw.com
Robert E. Hurlbett, Esq.
Hurlbett & Faucher
3324 State Street Suite O
Santa Barbara, CA 93105
Tel: (805) 963-9111
Fax: (805) 963-2209
E-mail: bob@hurlbettlaw.com
Estimated Assets: $500,001 to $1,000,000
Estimated Debts: $1,000,001 to $10,000,000
According to the schedules, the Company says that assets total
$307,666.00 while debts total $3,187,447.21.
The Company did not file a list of creditors together with its
petition.
The petition was signed by James Stegall, VP and secretary.
LEATHERSTOCKING ANTIQUES: Case Summary & Creditors List
-------------------------------------------------------
Debtor: Leatherstocking Antiques, Inc.
129 Ridge Road
Valley Cottage, NY 10989
Bankruptcy Case No.: 10-22704
Chapter 11 Petition Date: April 13, 2010
Court: U.S. Bankruptcy Court
Southern District of New York (White Plains)
Judge: Robert D. Drain
Debtor's Counsel: Todd S. Cushner, Esq.
Cushner & Garvey, LLP
155 White Plains Road, Suite 207
Tarrytown, NY 10591
Tel: (914) 524-9400
Fax: (914) 524-0422
E-mail: cushnerlaw@aol.com
Estimated Assets: $0 to $50,000
Estimated Debts: $1,000,001 to $10,000,000
According to the schedules, the Company says that assets total
$14,620 while debts total $ 1,300,000.
A copy of the Company's list of 3 largest unsecured creditors
filed together with the petition is available for free at:
http://bankrupt.com/misc/nysb10-22704.pdf
The petition was signed by Rubin Sterngass, president.
LEHMAN BROTHERS: Sues IRS for $110 Million in Tax Refunds
---------------------------------------------------------
Bill Rochelle at Bloomberg News reports that Lehman Brothers
Holdings Inc. sued the Internal Revenue Service in bankruptcy
court to recover more than $110 million in income tax refunds and
penalties for 1999 to 2000.
According to the report, the dispute with the IRS relates to
income tax on dividends paid on borrowed foreign stock in
transactions with a Lehman subsidiary in the U.K. The IRS
disallowed $91.9 million in deductions Lehman claimed for foreign
taxes paid on the dividends and assessed penalties.
Bloomberg relates that before the Chapter 11 filing, Lehman paid
the taxes and penalties, reserving its right to seek a refund.
When the IRS didn't respond to a demand for a refund, Lehman
exercised its right under bankruptcy law to sue the IRS in
bankruptcy court.
About Lehman Brothers
Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the
fourth largest investment bank in the United States. For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.
Lehman Brothers filed for Chapter 11 bankruptcy September 15, 2008
(Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition
listed US$639 billion in assets and US$613 billion in debts,
effectively making the firm's bankruptcy filing the largest in
U.S. history. Several other affiliates followed thereafter.
The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil,
Gotshal & Manges, LLP, in New York, represent Lehman. Epiq
Bankruptcy Solutions serves as claims and noticing agent.
On September 19, 2008, the Honorable Gerard E. Lynch, Judge of the
U.S. District Court for the Southern District of New York, entered
an order commencing liquidation of Lehman Brothers, Inc., pursuant
to the provisions of the Securities Investor Protection Act (Case
No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as
trustee for the SIPA liquidation of the business of LBI
The Bankruptcy Court has approved Barclays Bank Plc's purchase of
Lehman Brothers' North American investment banking and capital
markets operations and supporting infrastructure for
US$1.75 billion. Nomura Holdings Inc., the largest brokerage
house in Japan, purchased LBHI's operations in Europe for US$2
plus the retention of most of employees. Nomura also
bought Lehman's operations in the Asia Pacific for US$225 million.
International Operations Collapse
Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and
Mike Jervis, partners at PricewaterhouseCoopers LLP, have been
appointed as joint administrators to Lehman Brothers International
(Europe) on September 15, 2008. The joint administrators have
been appointed to wind down the business.
Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on September 16.
Lehman Brothers Japan Inc. reported about JPY3.4 trillion
(US$33 billion) in liabilities in its petition.
Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by Lehman Brothers Holdings, Inc., and other insolvency
and bankruptcy proceedings undertaken by its affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
LEHMAN BROTHERS: Wins Nod to Pay Fees of Cayman-Based SPVs
----------------------------------------------------------
Lehman Brothers Special Financing Inc. obtained the U.S.
Bankruptcy Court's approval to pay the fees and expenses of
Cayman-based special purpose vehicles to avoid their possible
dissolution.
The SPVs are at risk of being dissolved by the Registrar of
Companies in the Cayman Islands because of their failure to pay
off their annual fees as well as other charges, according to
LBSF's attorney, Jacqueline Marcus, Esq., at Weil Gotshal &
Manges LLP, in New York. About $690,162 in fees is due to the
Registrar, Ms. Marcus says.
Lehman Brothers Inc., the broker-dealer unit of Lehman Brothers
Holdings Inc., is actually the one obligated to pay the fees and
expenses pursuant to its agreements with each of the SPVs. LBI,
however, has not paid those fees since 2008.
"If the Cayman SPVs are dissolved, LBSF's ability to realize a
return on the transactions will be put in serious jeopardy," says
Ms. Marcus, referring to the numerous swap transactions LBSF
reached with the SPVs in which about $900 million is at stake.
"The outstanding fees of the Cayman SPVs must be paid to ensure
that the Cayman SPVs are returned to good standing," Ms. Marcus
says in court papers.
About Lehman Brothers
Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the
fourth largest investment bank in the United States. For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.
Lehman Brothers filed for Chapter 11 bankruptcy September 15, 2008
(Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition
listed US$639 billion in assets and US$613 billion in debts,
effectively making the firm's bankruptcy filing the largest in
U.S. history. Several other affiliates followed thereafter.
The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil,
Gotshal & Manges, LLP, in New York, represent Lehman. Epiq
Bankruptcy Solutions serves as claims and noticing agent.
On September 19, 2008, the Honorable Gerard E. Lynch, Judge of the
U.S. District Court for the Southern District of New York, entered
an order commencing liquidation of Lehman Brothers, Inc., pursuant
to the provisions of the Securities Investor Protection Act (Case
No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as
trustee for the SIPA liquidation of the business of LBI
The Bankruptcy Court has approved Barclays Bank Plc's purchase of
Lehman Brothers' North American investment banking and capital
markets operations and supporting infrastructure for
US$1.75 billion. Nomura Holdings Inc., the largest brokerage
house in Japan, purchased LBHI's operations in Europe for US$2
plus the retention of most of employees. Nomura also
bought Lehman's operations in the Asia Pacific for US$225 million.
International Operations Collapse
Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and
Mike Jervis, partners at PricewaterhouseCoopers LLP, have been
appointed as joint administrators to Lehman Brothers International
(Europe) on September 15, 2008. The joint administrators have
been appointed to wind down the business.
Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on September 16.
Lehman Brothers Japan Inc. reported about JPY3.4 trillion
(US$33 billion) in liabilities in its petition.
Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by Lehman Brothers Holdings, Inc., and other insolvency
and bankruptcy proceedings undertaken by its affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
LEHMAN BROTHERS: LBCC Proposes to Assign LBI Claims
---------------------------------------------------
Lehman Brothers Commercial Corp. seeks the Court's authority
allowing Lehman Brothers Inc. to assign its claims against
Neuberger Berman LLC to LBCC.
LBI's claims stemmed from a 2008 transaction, under which
Neuberger agreed to deliver, through the Lehman units, over $40
million to PNC Bank N.A. in exchange for more than EUR26 million.
Neuberger did not deliver the money, however, prompting PNC to
file a lawsuit against it in a district court in Pennsylvania.
Neuberger earlier brought a lawsuit against PNC and the Lehman
units before the U.S. Bankruptcy Court for the Southern District
of New York, seeking determination of the defendants' respective
rights to the funds that it is required to pay under the
transaction.
The proposed assignment of LBI's claims is formalized in a five-
page agreement, a copy of which is available without charge at
http://bankrupt.com/misc/LBHI_AssignmentLBIClaims.pdf
Pursuant to the terms of the agreement, James Giddens, LBI's
trustee, will transfer and assign to LBCC all rights with respect
to the transaction evidenced by the confirmations between LBI and
Neuberger relating to the transaction asserted in Neuberger's
lawsuit.
In return for the assignment, LBCC will release its claims
against LBI that stemmed from the transaction and will indemnify
LBI against other claims that may arise from the transaction or
from the proposed assignment.
The Court will hold a hearing on April 14, 2010, to consider
approval of the proposed assignment. Deadline for filing
objections is April 7, 2010.
About Lehman Brothers
Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the
fourth largest investment bank in the United States. For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.
Lehman Brothers filed for Chapter 11 bankruptcy September 15, 2008
(Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition
listed US$639 billion in assets and US$613 billion in debts,
effectively making the firm's bankruptcy filing the largest in
U.S. history. Several other affiliates followed thereafter.
The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil,
Gotshal & Manges, LLP, in New York, represent Lehman. Epiq
Bankruptcy Solutions serves as claims and noticing agent.
On September 19, 2008, the Honorable Gerard E. Lynch, Judge of the
U.S. District Court for the Southern District of New York, entered
an order commencing liquidation of Lehman Brothers, Inc., pursuant
to the provisions of the Securities Investor Protection Act (Case
No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as
trustee for the SIPA liquidation of the business of LBI
The Bankruptcy Court has approved Barclays Bank Plc's purchase of
Lehman Brothers' North American investment banking and capital
markets operations and supporting infrastructure for
US$1.75 billion. Nomura Holdings Inc., the largest brokerage
house in Japan, purchased LBHI's operations in Europe for US$2
plus the retention of most of employees. Nomura also
bought Lehman's operations in the Asia Pacific for US$225 million.
International Operations Collapse
Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and
Mike Jervis, partners at PricewaterhouseCoopers LLP, have been
appointed as joint administrators to Lehman Brothers International
(Europe) on September 15, 2008. The joint administrators have
been appointed to wind down the business.
Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on September 16.
Lehman Brothers Japan Inc. reported about JPY3.4 trillion
(US$33 billion) in liabilities in its petition.
Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by Lehman Brothers Holdings, Inc., and other insolvency
and bankruptcy proceedings undertaken by its affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
LEHMAN BROTHERS: Presents Claims Resolution Procedures
------------------------------------------------------
Lehman Brothers Holdings Inc. and its units ask the Court to
approve claims hearing procedures and alternative dispute
resolution procedures to expedite the process of reconciling
claims filed against their bankruptcy estates. The Debtors note
that reconciling and resolving the more than 66,000 claims with a
face value in excess of $830 billion filed against them, in
addition to the claims already scheduled, using traditional claims
procedures, particularly full-scale evidentiary hearings would tax
and overwhelm the their resources and the Court's.
The key features of the proposed Claims Hearing Procedures and
ADR Procedures are:
-- Following the Debtors' objection to a proof of claim, a
Claimant may file and serve a response. If no Response is
properly filed and served or if a resolution is reached,
the Debtors will seek to have the Claim disallowed and
expunged or the settlement approved in accordance with the
Settlement Procedures, to the extent applicable, at the
hearing scheduled for the objection's return date;
-- A Temporary Litigation Injunction, staying other litigation
with respect to the Claim to which an objection has been
filed, including discovery by Claimants, will be imposed
from the service of an objection through the completion of
the Claims Hearings Procedures and the ADR Procedures, as
applicable, to allow those procedures to proceed
uninterrupted by other litigation;
-- If the Debtors object to the Claim because it fails to
state a legally sufficient claim and a response is properly
filed and served, unless the Debtors serve the Claimant
with a Notice of ADR Procedures or a Notice of Merits
Hearing, the Court will hold a Sufficiency Hearing at the
hearing scheduled for the objection's return date;
-- If the Debtors object to the Claim on the merits and a
response is properly filed and served, the Debtors will, in
their sole discretion, serve the Claimant with either:
* a Notice of ADR Procedures, in which case the ADR
Procedures will take effect; or
* a Notice of Merits Hearing, in which case the objection
will proceed to resolution by the Court. The Debtors may
append an Offer of Settlement to either notice;
-- The ADR Procedures consist of two phases: Negotiation and
Mediation. Negotiation only takes place at the request of
one of the parties, and Mediation is mandatory and
non-binding. If a settlement is reached at any point in
the Claims Hearing Procedures or the ADR Procedures, the
settlement will be subject to approval in accordance with
the Settlement Procedures. If the Mediation concludes at
the discretion of the Mediator and all or part of the
objection to the Contested Claim remains unresolved, the
parties will proceed to a Claims Objection Hearing;
-- Each part of the ADR Procedures is designed to narrow
outstanding differences between the parties and reduce
costs overall. Thus, Negotiation takes place by telephone
outside the presence of a neutral third party. Mediation
takes place at a location in New York, selected by the
Debtors and in the presence of a neutral third party. Upon
consent of all of the parties, the Mediation may be held
telephonically; and
-- All aspects of the ADR Procedures will be confidential and
subject to Rule 408 of the Federal Rules of Evidence, and
no written submissions will be filed with the Court.
A full-text copy of the proposed Claims Hearing Procedures and
ADR Procedures, including forms of notices and settlement, is
available for free at:
http://bankrupt.com/misc/Lehman_ClaimsHearingProcedures.pdf
The Debtors also ask the Court to authorize the Official
Committee of Unsecured Creditors to use the Claims Hearing
Procedures and the ADR Procedures to the extent the Debtors
delegate to the Creditors' Committee the authority to prosecute
and resolve an objection to a Claim.
The Debtors assure Judge Peck that the proposed procedures are
separate and distinct from and do not replace the procedures
provided for in the Claims Settlement Procedures Order or the
Other Settlement Procedures Orders. The Debtors add that nothing
in the request, the Claims Hearing Procedures, or the ADR
Procedures will (i) affect, impair, impede, or otherwise alter
the procedures or rights set forth in or established pursuant to
the Claims Settlement Procedures Order or the Other Settlement
Procedures Orders, or (ii) expand or create additional rights as
to the Debtors to settle or pursue settlement of Claims pursuant
to those Orders.
BNY, et al. Object
A group of trustees for holders of notes issued pursuant to
structures created by LBHI and its affiliates has blocked the
approval of the alternative dispute resolution process, saying
new provisions must be introduced similar to those approved by
the September 17, 2009 court order.
The group consists of The Bank of New York Mellon, The Bank of
New York Mellon Trust Company N.A. and BNY Corporate Trustee
Services Limited.
To recall, the Court issued an order approving an alternative
dispute resolution process for claims of LBHI and its affiliated
debtors under derivative contracts. The order recognized the
trustees' limited representative capacity.
Eric Schaffer, Esq., at Reed Smith LLP, in New York, says LBHI
should not regard the trustees generally as the legal
representative of the holders for purposes of any alternative
dispute resolution process because it is the holders who have the
economic interests in the claims.
"Because the trustees have no authority to compromise claims of
holders absent their consent and direction, the trustees lack any
authority to participate in any mediation with the Debtors," Mr.
Schaffer says in court papers.
He further says that the alternative dispute resolution process
being proposed for approval do not account for the complexity of
the synthetic structures created by the Debtors and the limited
role and authority given to the trustees in those structures.
The trustees specifically ask the Court that they should not be
forced to attend or participate in mediation without direction
from the holders of notes. They also propose to modify the
process to ensure that the beneficial holders receive notice
sufficiently in advance of any mediation, to permit telephonic
participation, and to avoid imposition of deadlines and other
requirements on the holders.
The implementation of the alternative dispute resolution process
also drew flak from U.S. Bank N.A., Bank of America N.A., Lehman
Re Ltd., Wilmington Trust Company and other parties. The
opponents ask the Court to deny the process on grounds that it
does not set a deadline for the conclusion of mediation; it fails
to provide adequate notice to affected holders; it compels
trustees for noteholders and certificate holders to participate
in mediation beyond the scope of their authority, among other
reasons.
About Lehman Brothers
Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the
fourth largest investment bank in the United States. For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.
Lehman Brothers filed for Chapter 11 bankruptcy September 15, 2008
(Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition
listed US$639 billion in assets and US$613 billion in debts,
effectively making the firm's bankruptcy filing the largest in
U.S. history. Several other affiliates followed thereafter.
The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil,
Gotshal & Manges, LLP, in New York, represent Lehman. Epiq
Bankruptcy Solutions serves as claims and noticing agent.
On September 19, 2008, the Honorable Gerard E. Lynch, Judge of the
U.S. District Court for the Southern District of New York, entered
an order commencing liquidation of Lehman Brothers, Inc., pursuant
to the provisions of the Securities Investor Protection Act (Case
No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as
trustee for the SIPA liquidation of the business of LBI
The Bankruptcy Court has approved Barclays Bank Plc's purchase of
Lehman Brothers' North American investment banking and capital
markets operations and supporting infrastructure for
US$1.75 billion. Nomura Holdings Inc., the largest brokerage
house in Japan, purchased LBHI's operations in Europe for US$2
plus the retention of most of employees. Nomura also
bought Lehman's operations in the Asia Pacific for US$225 million.
International Operations Collapse
Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and
Mike Jervis, partners at PricewaterhouseCoopers LLP, have been
appointed as joint administrators to Lehman Brothers International
(Europe) on September 15, 2008. The joint administrators have
been appointed to wind down the business.
Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on September 16.
Lehman Brothers Japan Inc. reported about JPY3.4 trillion
(US$33 billion) in liabilities in its petition.
Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by Lehman Brothers Holdings, Inc., and other insolvency
and bankruptcy proceedings undertaken by its affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
LEHMAN BROTHERS: Court OKs Deal on JPM's $7.68-Bil. Claim
---------------------------------------------------------
The U.S. Bankruptcy Court approved an agreement between Lehman
Brothers Holdings Inc. and JPMorgan Chase Bank, N.A., authorizing
JPMorgan to take about $7.12 billion in the cash collateral it is
holding and reduce its claim against LBHI and its affiliates from
$7.68 billion to $557 million. The Claim will then be paid in
cash by the Lehman units and Lehman Brothers Inc.
A full-text copy of the agreement governing the deal is available
for free at http://bankrupt.com/misc/LBHI_CDAJPMorgan.pdf
The Court overruled all objections to the deal that have not been
withdrawn or resolved.
Prior to the approval, Mark Mazzatta and Michele McHugh-Mazzatta
filed an objection to the deal out of concern that it might
affect their claims against the Lehman units and JPMorgan for the
return of the collateral they posted in 2007. The collateral
consists of bonds and more than $969,000 in cash.
BTR Global Opportunity Trading Limited, BTR Global Growth Trading
Limited, BTR Global Arbitage Trading Limited, BTR Global
Prospector Trading Limited and BTR Global Prospector II Trading
Limited also objected to the proposed settlement to the extent
their securities may be held at JPMorgan Chase Bank, N.A., in an
account in the name of a Lehman entity -- Lehman Brothers
International (Europe) or otherwise. BTR Funds asked the Court
that any proposed order be modified to specify that their
securities are not included in the Debtors' Motion or a
Collateral Disposition Agreement, or to exclude the securities of
the BTR Funds from the Disposition Agreement.
About Lehman Brothers
Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the
fourth largest investment bank in the United States. For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.
Lehman Brothers filed for Chapter 11 bankruptcy September 15, 2008
(Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition
listed US$639 billion in assets and US$613 billion in debts,
effectively making the firm's bankruptcy filing the largest in
U.S. history. Several other affiliates followed thereafter.
The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil,
Gotshal & Manges, LLP, in New York, represent Lehman. Epiq
Bankruptcy Solutions serves as claims and noticing agent.
On September 19, 2008, the Honorable Gerard E. Lynch, Judge of the
U.S. District Court for the Southern District of New York, entered
an order commencing liquidation of Lehman Brothers, Inc., pursuant
to the provisions of the Securities Investor Protection Act (Case
No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as
trustee for the SIPA liquidation of the business of LBI
The Bankruptcy Court has approved Barclays Bank Plc's purchase of
Lehman Brothers' North American investment banking and capital
markets operations and supporting infrastructure for
US$1.75 billion. Nomura Holdings Inc., the largest brokerage
house in Japan, purchased LBHI's operations in Europe for US$2
plus the retention of most of employees. Nomura also
bought Lehman's operations in the Asia Pacific for US$225 million.
International Operations Collapse
Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and
Mike Jervis, partners at PricewaterhouseCoopers LLP, have been
appointed as joint administrators to Lehman Brothers International
(Europe) on September 15, 2008. The joint administrators have
been appointed to wind down the business.
Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on September 16.
Lehman Brothers Japan Inc. reported about JPY3.4 trillion
(US$33 billion) in liabilities in its petition.
Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by Lehman Brothers Holdings, Inc., and other insolvency
and bankruptcy proceedings undertaken by its affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
LEHMAN BROTHERS: Has Nod to Restructure Hilton's $21-Bil. Loan
--------------------------------------------------------------
Lehman Brothers Holdings Inc. and its affiliated debtors received
court approval of a deal to restructure the $21 billion loans
provided to Hilton Worldwide Inc.'s subsidiaries.
LBHI, together with a syndicate of lenders, provided the loan in
connection with the acquisition of Hilton Worldwide's common
stock by affiliates of The Blackstone Group in 2007. The loan
consists of a mortgage loan provided to Hilton Worldwide's
affiliates and mezzanine loans made to owners of those
affiliates.
Almost all of the borrowers' assets were posted as collateral for
the mortgage loan. The other loans, meanwhile, are secured by
pledges of ownership interests in the borrowers.
Under the proposed deal, the parent of Hilton Worldwide will
contribute $800 million to Hilton Worldwide to repurchase and
retire about $1.79 billion of certain senior mezzanine loans.
The parent's new investment will earn a 15% annual return and
have an $800 million liquidation preference.
The maturity date of the mortgage and the senior mezzanine loans
may be extended for up to two additional years upon payment by
Hilton Worldwide's affiliates of an extension fee equal to 0.50%
of the then outstanding principal balance of the loans. The
final maturity date is November 2015.
The proposed deal also provides for the conversion of the junior
mezzanine loans to preferred equity with an 8% annual return and
about $2.8 billion aggregate liquidation preference when combined
with the parent's new investment. Moreover, holders of junior
mezzanine loans and Hilton Worldwide's parent will receive a
profits interest entitled to 10% of all distributions after the
preferred equity's liquidation preference and a distribution of
$5.66 billion to the parent.
The Debtors' attorney, Alfredo Perez, Esq., at Weil Gotshal &
Manges LLP, in New York, says the proposed restructuring would
"deleverage" the capital structure of Hilton Worldwide by up to
$3.8 billion, maximizing the value of loans held by LBHI.
As of February 2010, LBHI holds more than $460 million in the
mortgage loan and more than $18 million in the mezzanine loans.
In connection with the deal, the Debtors also ask the Court to
authorize Lehman Commercial Paper Inc. to provide consents to
affiliates of GEM Realty Capital Inc. and Northwood Investors LLC
under the documentation governing the loans provided by LCPI in
order to facilitate the participation of those affiliates in the
restructuring of the senior mezzanine loans.
LCPI provided the loans to GEM Realty's and Northwood's
affiliates to fund their acquisition of a portion of LBHI's stake
in the senior mezzanine loans in 2008.
About Lehman Brothers
Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the
fourth largest investment bank in the United States. For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.
Lehman Brothers filed for Chapter 11 bankruptcy September 15, 2008
(Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition
listed US$639 billion in assets and US$613 billion in debts,
effectively making the firm's bankruptcy filing the largest in
U.S. history. Several other affiliates followed thereafter.
The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil,
Gotshal & Manges, LLP, in New York, represent Lehman. Epiq
Bankruptcy Solutions serves as claims and noticing agent.
On September 19, 2008, the Honorable Gerard E. Lynch, Judge of the
U.S. District Court for the Southern District of New York, entered
an order commencing liquidation of Lehman Brothers, Inc., pursuant
to the provisions of the Securities Investor Protection Act (Case
No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as
trustee for the SIPA liquidation of the business of LBI
The Bankruptcy Court has approved Barclays Bank Plc's purchase of
Lehman Brothers' North American investment banking and capital
markets operations and supporting infrastructure for
US$1.75 billion. Nomura Holdings Inc., the largest brokerage
house in Japan, purchased LBHI's operations in Europe for US$2
plus the retention of most of employees. Nomura also
bought Lehman's operations in the Asia Pacific for US$225 million.
International Operations Collapse
Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and
Mike Jervis, partners at PricewaterhouseCoopers LLP, have been
appointed as joint administrators to Lehman Brothers International
(Europe) on September 15, 2008. The joint administrators have
been appointed to wind down the business.
Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on September 16.
Lehman Brothers Japan Inc. reported about JPY3.4 trillion
(US$33 billion) in liabilities in its petition.
Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by Lehman Brothers Holdings, Inc., and other insolvency
and bankruptcy proceedings undertaken by its affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
LEHMAN BROTHERS: Examiner Names Auction Players in Full Report
--------------------------------------------------------------
Bankruptcy Law360 reports that Goldman Sachs Group Inc., Barclays
PLC and DRW Trading Group were the top bidders in an auction of
Lehman Brothers Holdings Inc. assets that allegedly caused the
bankrupt firm to lose $1.2 billion, the court-appointed examiner
said Wednesday.
About Lehman Brothers
Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the
fourth largest investment bank in the United States. For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.
Lehman Brothers filed for Chapter 11 bankruptcy September 15, 2008
(Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition
listed US$639 billion in assets and US$613 billion in debts,
effectively making the firm's bankruptcy filing the largest in
U.S. history. Several other affiliates followed thereafter.
The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil,
Gotshal & Manges, LLP, in New York, represent Lehman. Epiq
Bankruptcy Solutions serves as claims and noticing agent.
On September 19, 2008, the Honorable Gerard E. Lynch, Judge of the
U.S. District Court for the Southern District of New York, entered
an order commencing liquidation of Lehman Brothers, Inc., pursuant
to the provisions of the Securities Investor Protection Act (Case
No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as
trustee for the SIPA liquidation of the business of LBI
The Bankruptcy Court has approved Barclays Bank Plc's purchase of
Lehman Brothers' North American investment banking and capital
markets operations and supporting infrastructure for
US$1.75 billion. Nomura Holdings Inc., the largest brokerage
house in Japan, purchased LBHI's operations in Europe for US$2
plus the retention of most of employees. Nomura also
bought Lehman's operations in the Asia Pacific for US$225 million.
International Operations Collapse
Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and
Mike Jervis, partners at PricewaterhouseCoopers LLP, have been
appointed as joint administrators to Lehman Brothers International
(Europe) on September 15, 2008. The joint administrators have
been appointed to wind down the business.
Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on September 16.
Lehman Brothers Japan Inc. reported about JPY3.4 trillion
(US$33 billion) in liabilities in its petition.
Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by Lehman Brothers Holdings, Inc., and other insolvency
and bankruptcy proceedings undertaken by its affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
LEO KRAMER: Case Summary & 9 Largest Unsecured Creditors
--------------------------------------------------------
Debtor: Leo Frederick Kramer
1229 Ballena Boulevard
Alameda, CA 94501
Bankruptcy Case No.: 10-43951
Chapter 11 Petition Date: April 8, 2010
Court: U.S. Bankruptcy Court
Northern District of California (Oakland)
Judge: Edward D. Jellen
Debtor's Counsel: Scott J. Sagaria, Esq.
Law Offices of Scott J. Sagaria
333 W San Carlos Street #1700
San Jose, CA 95110
Tel: (408) 279-2288
E-mail: sjsagaria@sagarialaw.com
Estimated Assets: $0 to $50,000
Estimated Debts: $1,000,001 to $10,000,000
A copy of the Debtor's list of 9 largest unsecured creditors filed
together with the petition is available for free at:
http://bankrupt.com/misc/canb10-43951.pdf
The petition was signed by the Debtor.
LEROY WRIGHT: Case Summary & 7 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: Leroy J. Wright
31 West 13th Street
Chicago, IL 60605
Bankruptcy Case No.: 10-16221
Chapter 11 Petition Date: April 13, 2010
Court: United States Bankruptcy Court
Northern District of Illinois (Chicago)
Judge: Jacqueline P. Cox
Debtor's Counsel: Glenda J. Gray, Esq.
Law Offices Of Glenda J Gray
330 North Wabash Avenue Ste 2618
Chicago, IL 60611
Tel: (312) 755-1010
Fax: (312) 755-1020
E-mail: ladylawgray@aol.com
Estimated Assets: $500,001 to $1,000,000
Estimated Debts: $1,000,001 to $10,000,000
A list of the Company's 7 largest unsecured creditors is
available for free at http://bankrupt.com/misc/ilnb10-16221.pdf
The petition was signed by Leroy J. Wright.
LOGOS AVIATION: Voluntary Chapter 11 Case Summary
-------------------------------------------------
Debtor: Logos Aviation Services, Inc.
2900 NW 59 St
Ft Lauderdale, FL 33309
Bankruptcy Case No.: 10-19561
Chapter 11 Petition Date: April 13, 2010
Court: United States Bankruptcy Court
Southern District of Florida (Fort Lauderdale)
Judge: Raymond B. Ray
Debtor's Counsel: Steven M. Selz, Esq.
500 University Blvd #110
Jupiter, FL 33458
Tel: (561) 694-2060
Fax: (561) 694-0230
Estimated Assets: $500,001 to $1,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Debtor did not file a list of its largest unsecured creditors
together with its petition.
LITO SALES: Case Summary & 16 Largest Unsecured Creditors
---------------------------------------------------------
Debtor: Lito Sales Nicolas
33 Union Square Apt #431
Union City, CA 94587
Bankruptcy Case No.: 10-44176
Chapter 11 Petition Date: April 14, 2010
Court: United States Bankruptcy Court
Northern District of California (Oakland)
Judge: Judge Randall J. Newsome
Debtor's Counsel: Kenneth R. Graham, Esq.
Law Office of Kenneth R. Graham
171 Mayhew Way #208
Pleasant Hill, CA 94523
Tel: (925) 932-0170
E-mail: KRG@ELAWS.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 16 largest unsecured creditors filed
together with the petition is available for free at:
http://bankrupt.com/misc/canb10-44176.pdf
The petition was signed by Not Available.
LYDIA CLADEK: Section 341(a) Meeting Scheduled for May 5
--------------------------------------------------------
The U.S. Trustee for Region 21 will convene a meeting of Lydia
Cladek, Inc.'s creditors on May 5, 2010, at 3:00 p.m. The meeting
will be held at FIRST FLOOR, 300 North Hogan Street, Suite 1-200,
Jacksonville, FL 32202.
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.
St. Augustine, Florida-based Lydia Cladek, Inc., filed for Chapter
11 bankruptcy protection on April 5, 2010 (Bankr. M.D. Fla. Case
No. 10-02805). Lawrence Lilly, Esq., who has an office in St.
Augustine, Florida, assists the Company in its restructuring
effort. The Company estimated its assets and debts at $10,000,001
to $50,000,000.
LYDIA CLADEK: Files Schedules of Assets & Liabilities
-----------------------------------------------------
Lydia Cladek, Inc., has filed with the U.S. Bankruptcy Court for
the Middle District of Florida its schedules of assets and
liabilities, disclosing:
Name of Schedule Assets Liabilities
---------------- ------ -----------
A. Real Property $ ___
B. Personal Property $ ___
C. Property Claimed as
Exempt
D. Creditors Holding
Secured Claims $
E. Creditors Holding
Unsecured Priority
Claims $96,498
F. Creditors Holding
Unsecured Non-priority
Claims $$50,000,000
----------- ------------
TOTAL $ _____ $50,096,498
St. Augustine, Florida-based Lydia Cladek, Inc., filed for Chapter
11 bankruptcy protection on April 5, 2010 (Bankr. M.D. Fla. Case
No. 10-02805). Lawrence Lilly, Esq., who has an office in St.
Augustine, Florida, assists the Company in its restructuring
effort. The Company estimated its assets and debts at $10,000,001
to $50,000,000.
LYONDELL CHEMICAL: Citgo Balks at Lyondell's Proposed Cure Costs
----------------------------------------------------------------
Citgo Petroleum Corp. and other companies have balked at Lyondell
Chemical Co.'s proposed cure costs, accusing the Company of not
ponying up more than $6 million in claims, Bankruptcy Law360
reports.
LyondellBasell Industries is one of the world's largest polymers,
petrochemicals and fuels companies. It is the global leader in
polyolefins technology, production and marketing; a pioneer in
propylene oxide and derivatives; and a significant producer of
fuels and refined products, including biofuels. Through research
and development, LyondellBasell develops innovative materials and
technologies that deliver exceptional customer value and products
that improve quality of life for people around the world.
Headquartered in The Netherlands, LyondellBasell --
http://www.lyondellbasell.com/-- is privately owned by Access
Industries.
Basell AF and Lyondell Chemical Company merged operations in 2007
to form LyondellBasell Industries, the world's third largest
independent chemical company. LyondellBasell became saddled with
debt as part of the US$12.7 billion merger. On January 6, 2009,
LyondellBasell Industries' U.S. operations and one of its European
holding companies -- Basell Germany Holdings GmbH -- filed
voluntary petitions to reorganize under Chapter 11 of the U.S.
Bankruptcy Code to facilitate a restructuring of the company's
debts. The case is In re Lyondell Chemical Company, et al.,
Bankr. S.D.N.Y. Lead Case No. 09-10023). Seventy-nine Lyondell
entities, including Equistar Chemicals, LP, Lyondell Chemical
Company, Millennium Chemicals Inc., and Wyatt Industries, Inc.
filed for Chapter 11. In May 2009, one of the cases was dismissed
-- Case No. 09-10068 -- because it is duplicative of Case No. 09-
10040 relating to Debtor Glidden Latin America Holdings.
The Hon. Robert E. Gerber presides over the case. Deryck A.
Palmer, Esq., at Cadwalader, Wickersham & Taft LLP, in New York,
serves as the Debtors' bankruptcy counsel. Evercore Partners
serves as financial advisors, and Alix Partners and its subsidiary
AP Services LLC, serves as restructuring advisors. AlixPartners'
Kevin M. McShea acts as the Debtors' Chief Restructuring Officer.
Clifford Chance LLP serves as restructuring advisors to the
European entities. Lyondell Chemical estimated that consolidated
assets total US$27.12 billion and debts total US$19.34 billion as
of the bankruptcy filing date.
Lyondell has obtained approximately US$8 billion in DIP financing
to fund continuing operations. The DIP financing includes two
credit agreements: a US$6.5 billion term loan, which comprises a
US$3.25 billion in new loans and a US$3.25 billion roll-up of
existing loans; and a US$1.57 billion asset-backed lending
facility.
LyondellBasell Industries AF S.C.A. and another affiliate were
voluntarily added to Lyondell Chemical's reorganization filing
under Chapter 11 on April 24, 2009, in order to seek protection
against claims by certain financial and U.S. trade creditors. On
May 8, 2009, LyondellBasell Industries added 13 non-operating
entities to Lyondell Chemical Company's reorganization filing
under Chapter 11 of the U.S. Bankruptcy Code. All of the entities
are U.S. companies and were added to the original Chapter 11
filing for administrative purposes.
Bankruptcy Creditors' Service, Inc., publishes Lyondell Bankruptcy
News. The newsletter tracks the Chapter 11 proceeding undertaken
by Lyondell Chemical Company and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
MAIN STREET: Voluntary Chapter 11 Case Summary
----------------------------------------------
Debtor: Main Street Partnership, LLC
c/o Fred Norris
303 W Main St
St Charles, IL 60174
Bankruptcy Case No.: 10-16184
Chapter 11 Petition Date: April 13, 2010
Court: United States Bankruptcy Court
Northern District of Illinois (Chicago)
Judge: Jack B. Schmetterer
Debtor's Counsel: Richard Gellersted, Esq.
Law Offices of Richard Gellersted
244 West Sheridan Place
Lake Bluff, IL 60044
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 largest unsecured creditors
together with its petition.
The petition was signed by Fred Norris, Jr., managing partner.
MAJESTIC STAR: Lenders Say Casino Mortgages Valid
-------------------------------------------------
Bill Rochelle at Bloomberg News reports that lenders to Majestic
Star Casino LLC sought to debunk a theory espoused by the
statutory committee of unsecured creditors explaining why secured
claims against two riverboat casinos in Gary, Indiana, are
defective. The committee surfaced a theory based on the idea that
the floating casinos are no longer vessels because they are now
permanently attached to land. To have valid security interests,
the committee postulates that liens must be perfected as fixtures.
As fixtures, the committee argued that the necessary notices were
incorrectly filed. Consequently, the committee filed a motion
asking for authority to sue the lenders and void their security
interests.
The Bloomberg report relates that the indenture trustee for $300
million in senior notes responded to the motion, to be argued
April 27 in bankruptcy court, that the committee is "simply wrong"
in its theory about how to file a lien on fixtures. Wells Fargo
Capital Finance Inc., as agent for bank lenders, also contends
that the casinos remain vessels, meaning that ship mortgages are
still valid. Both lender groups urged the bankruptcy court to
deny the committee the ability to bring suit.
About Majestic Star
The Majestic Star Casino, LLC -- aka Majestic Star Casino, aka
Majestic Star -- is based in Las Vegas, Nevada. It is a wholly
owned subsidiary of Majestic Holdco, LLC, which is a wholly owned
subsidiary of Barden Development, Inc. The Company was formed on
December 8, 1993, as an Indiana limited liability company to
provide gaming and related entertainment to the public. The
Company commenced gaming operations in the City of Gary at
Buffington Harbor, located in Lake County, Indiana on June 7,
1996. The Company is a multi-jurisdictional gaming company with
operations in three states -- Indiana, Mississippi and Colorado.
The Company filed for Chapter 11 bankruptcy protection on
November 23, 2009 (Bankr. D. Del. Case No. 09-14136).
The Company's affiliates -- The Majestic Star Casino II, Inc., The
Majestic Star Casino Capital Corp., Majestic Star Casino Capital
Corp. II, Barden Mississippi Gaming, LLC, Barden Colorado Gaming,
LLC, Majestic Holdco, LLC, and Majestic Star Holdco, Inc. -- also
filed separate Chapter 11 petitions.
Kirkland & Ellis LLP is the Debtors' bankruptcy counsel. James E.
O'Neill, Esq., Laura Davis Jones, Esq., and Timothy P. Cairns,
Esq., at Pachulski Stang Ziehl & Jones LLP are the Debtors'
Delaware counsel. Xroads Solutions Group, LLC, is the Debtors'
financial advisor, while EPIQ Bankruptcy Solutions LLC are the
Debtors' claims and notice agent.
The Majestic Star Casino, LLC's balance sheet at June 30, 2009,
showed total assets of $406.42 million and total liabilities of
$749.55 million. When it filed for bankruptcy, the Company listed
up to $500 million in assets and up to $1 billion in debts.
MARIAM GABRA: Case Summary & 11 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: Mariam Suie Gabra
14400 Yucca Street
Hesperia, CA 92345
Bankruptcy Case No.: 10-20307
Chapter 11 Petition Date: April 8, 2010
Court: U.S. Bankruptcy Court
Central District Of California (Riverside)
Judge: Catherine E. Bauer
Debtor's Counsel: Michael R Totaro, Esq.
Totaro & Shanahan
P.O. Box 789
Pacific Palisades, CA 90272
Tel: (310) 573-0276
Fax: (310) 496-1260
E-mail: mtotaro@aol.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
According to the schedules, the Debtor says that assets total
$5,481,645 while debts total $8,057,211.
A copy of the Debtor's list of 11 largest unsecured creditors
filed together with the petition is available for free at:
http://bankrupt.com/misc/cacb10-20307.pdf
The petition was signed by the Debtor.
MARSH HAWK: Section 341(a) Meeting Scheduled for April 29
---------------------------------------------------------
The U.S. Trustee for Region 4 will convene a meeting of Marsh Hawk
Golf Club, LLC's creditors on April 29, 2010, at 1:30 p.m. The
meeting will be held at the Office of the U.S. Trustee, Peninsula
Business Center II, 11751 Rock Landing Drive, Suite H1, Newport
News, VA 23606.
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.
Williamsburg, Virginia-based Marsh Hawk Golf Club, LLC, aka Ford's
Colony Country Club, filed for Chapter 11 bankruptcy protection on
April 1, 2010 (Bankr. E.D. Va. Case No. 10-50632). Ross C.
Reeves, Esq., at Willcox & Savage, P.C., assists the Company in
its restructuring effort. The Company estimated its assets and
debts at $10,000,000 to $50,000,000.
MFB REGENCY: Case Summary & 3 Largest Unsecured Creditors
---------------------------------------------------------
Debtor: MFB Regency, LLC
2989 Highway 50 East
Carson city, NV 89701
Bankruptcy Case No.: 10-51331
Chapter 11 Petition Date: April 13, 2010
Court: U.S. Bankruptcy Court
District of Nevada (Reno)
Judge: Gregg W. Zive
Debtor's Counsel: Alan R. Smith, Esq.
505 Ridge Street
Reno, NV 89501
Tel: (775) 786-4579
E-mail: mail@asmithlaw.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A copy of the Company's list of 3 largest unsecured creditors
filed together with the petition is available for free at:
http://bankrupt.com/misc/nvb10-51331.pdf
The petition was signed by Dwight C. Millard, member of Millard
Family Business LLC.
MGM MIRAGE: Prices $1.0 Billion in Convertible Senior Notes
-----------------------------------------------------------
MGM MIRAGE has priced $1.0 billion in aggregate principal amount
of its 4.25% convertible senior notes due 2015. The transaction
is expected to close on April 20, 2010, subject to satisfaction of
various customary closing conditions. The Company has granted to
the initial purchasers an option to purchase up to $150.0 million
in aggregate principal amount of additional notes to cover over-
allotments. The Company plans to use the net proceeds from the
offering to repay a portion of its outstanding revolving
indebtedness under its senior credit facility.
The notes will be general unsecured senior obligations of the
Company, guaranteed by substantially all of the Company's wholly-
owned domestic subsidiaries, which also guarantee the Company's
other senior indebtedness, and equal in right of payment with, or
senior to, all existing or future unsecured indebtedness of the
Company and each guarantor. The notes will pay interest semi-
annually at a rate of 4.25% per annum and mature on April 15,
2015. The notes will be convertible at an initial conversion rate
of approximately 53.83 shares of the Company's common stock per
$1,000 principal amount of the notes, representing an initial
conversion price of approximately $18.58 per share of the
Company's common stock and a conversion premium of 27.5% based on
the last reported sale price per share of the Company's common
stock on the New York Stock Exchange on April 15, 2010 of $14.57
per share. The initial conversion rate is subject to adjustment
under certain circumstances. The notes will be convertible into
shares of the Company's common stock at any time prior to the
close of business on the third scheduled trading day immediately
preceding the maturity date of the notes.
In connection with the offering, the Company has entered into
capped call transactions with one or more of the initial
purchasers of the notes or their respective affiliates. The capped
call transactions are expected generally to reduce the potential
dilution to the Company's common stock upon any conversion of
notes in the event that the market value per share of the
Company's common stock, as measured under the terms of the capped
call transactions, is greater than the strike price of the capped
call transactions (which corresponds to the initial conversion
price of the notes and is subject to certain adjustments
substantially similar to those contained in the notes). The capped
call transactions have a cap price equal to approximately $21.86
(50% above the last reported sale price of the Company's common
stock on the New York Stock Exchange on April 15, 2010). If the
initial purchasers exercise their over-allotment option to
purchase additional notes, the Company may enter into additional
capped call transactions.
The Company has been advised that, in connection with hedging the
capped call transactions, the counterparties or their affiliates
expect to enter into various derivative transactions with respect
to the Company's common stock concurrently with, or shortly after,
the pricing of the notes and may, from time to time following the
pricing of the notes, enter into or unwind various derivatives
and/or purchase or sell the Company's common stock in secondary
market transactions. These activities could increase (or reduce
the size of any decrease in) the price of the Company's common
stock concurrently with or following the pricing of the notes, and
could also cause or avoid an increase or a decrease in the price
of the Company's common stock following any conversion of notes
and during the period prior to the maturity date.
The notes, and any shares of the Company's common stock issuable
upon conversion of the notes, have not been registered under the
Securities Act of 1933, as amended, or any state securities law
and may not be offered or sold in the United States or to any U.S.
persons absent registration under the Securities Act, or pursuant
to an applicable exemption from, or in a transaction not subject
to, the registration requirements of the Securities Act and
applicable state securities laws. The notes, and any shares of
the Company's common stock issuable upon conversion of the notes,
will be offered only to "qualified institutional buyers" under
Rule 144A of the Securities Act.
About MGM MIRAGE
Headquartered in Las Vegas, Nevada, MGM MIRAGE (NYSE: MGM) --
http://www.mgmmirage.com/-- owns and operates 16 properties
located in Nevada, Mississippi and Michigan, and has 50%
investments in four other properties in Nevada, New Jersey,
Illinois and Macau. CityCenter, an urban metropolis on the Las
Vegas Strip scheduled to open in late 2009, is a joint venture
between MGM MIRAGE and Infinity World Development Corp, a
subsidiary of Dubai World. MGM MIRAGE Hospitality has entered
into management agreements for future casino and non-casino
resorts throughout the world.
The Company reported $22.51 billion in total assets, $2.38 billion
in total current liabilities, $3.03 billion in deferred income
taxes, $12.97 billion in long term debt, and $256.83 million other
long term obligation, resulting to a $3.87 billion stockholders'
equity as of Dec. 31, 2009. At September 30, 2009, MGM MIRAGE had
stockholders' equity of $4.29 billion.
* * *
As reported by the Troubled Company Reporter on March 22, 2010,
Moody's Investors Service affirmed MGM MIRAGE's ratings, including
its Caa1 Corporate Family Rating and raised the company's
Speculative Grade Liquidity rating to SGL-3 from SGL-4. The
rating outlook remains stable.
As reported by the TCR on March 11, 2010, Standard & Poor's
Ratings Services affirmed all of its existing ratings on MGM
MIRAGE, including the 'CCC+' corporate credit rating. The rating
outlook is developing. "The 'CCC+ corporate credit rating
reflects MGM MIRAGE's significant debt burden, S&P's expectation
for continued declines in cash flow generation in 2010, and the
company's tight liquidity position," said Standard & Poor's credit
analyst Ben Bubeck.
MICHAEL FERRIS: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------------
Joint Debtors: Michael J. Ferris
Barbara J. Ferris
546 Welsh Hills Road
Granville, OH 43023
Bankruptcy Case No.: 10-54308
Chapter 11 Petition Date: April 13, 2010
Court: U.S. Bankruptcy Court
Southern District of Ohio (Columbus)
Judge: John E. Hoffman Jr.
Debtor's Counsel: Richard K. Stovall, Esq.
17 South High Street, Suite 1220
Columbus, OH 43215
Tel: (614) 221-8500
Fax: (614) 221-5988
E-mail: stovall@aksnlaw.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $10,000,001 to $50,000,000
According to the schedules, the Joint Debtors say that assets
total $3,104,641.80 while debts total $12,150,067.67.
A copy of the Joint Debtors' list of 20 largest unsecured
creditors filed together with the petition is available for free
at http://bankrupt.com/misc/ohsb10-54308.pdf
The petition was signed by the Joint Debtors.
MISSION REAL: Asks for Court Approval to Sell Property
------------------------------------------------------
Mission Real Associates, LLC, et al., and R. Todd Neilson, Chapter
11 Trustee for Ezri Namvar (the Sellers) have sought authorization
from the U.S. Bankruptcy Court for the Central District of
California to sell property to Wilshire Bundy Investments, Inc.
(the Proposed Purchaser or the Stalking Horse Bidder) or to the
successful bidder submitting the highest and best offer, free and
clear of all liens, claims, rights, encumbrances and other
interests.
The Debtors want to sell for $99.5 million, approximately 1.02
acres of land; the approximately 307,000 square foot, 14-story
office building at Wilshire Bundy Plaza; any other improvements
erected or located on the land (collectively, the Real Property);
any rights and appurtenances to the land; all tangible personal
property located on the Real Property; certain specified leases
and miscellaneous agreements affecting the Real Property; permits
and licenses pertaining to the Real Property; and certain
warranties and loans (collectively, with the Real Property, the
Property). The Purchase Price includes the assumption amount, in
the approximate amount of $66.9 million.
The Debtors entered into a purchase sale agreement with the
Proposed Purchaser.
Potential purchasers must submit bids by April 26, 2010, at
5:00 p.m. (Pacific Time). An auction of the Property will be held
on May 11, 2010, beginning at 10:00 a.m. (Pacific Time). An Offer
must be for at least $101 million, which amount consists of the
aggregate amount of the $99.5 million Purchase Price and the
$1.5 million initial Overbid Increment (inclusive of the $500,000
Break-Up Fee). An offer will be accompanied by a deposit paid to
the Trustee in the amount of 10% of the offered purchase price,
provided that the Stalking Horse Bidder will deliver to an escrow
holder only an amount sufficient to increase the stalking horse
deposit so that it is 10% of the purchase price offered by the
Stalking Horse Bidder. On May 3, 2010, the Trustee will notify
the potential purchasers submitting offers if they are qualified
bidders and entitled to participate in the auction to overbid the
Stalking Horse Bidder.
The closing of the sale will take place two business days after
the entry of the sale order by the Court but in no event later
than September 1, 2010, except as may be extended by agreement of
the parties.
The Sale Agreement provides that the proceeds of the sale of the
Property, including the closing costs, are to be distributed to
the Trustee, held in a segregated account and disbursed as ordered
by the Court. A 1% commission will be paid to Madison Partners,
the broker.
Responses or objections to the sale motion must be filed with the
Court by April 28, 2010. A hearing will be held on May 12, 2010,
at 10:00 a.m. (Pacific Time) for the Court to consider the sale
motion.
A copy of the purchase sale agreement and bidding procedures is
available for free at http://ResearchArchives.com/t/s?6000
About Mission Real
Los Angeles, California-based Mission Real Associates, LLC, filed
for Chapter 11 bankruptcy protection on March 31, 2010 (Bankr.
Case No. C.D. Calif. 10-22370). Richard K. Diamond, Esq., at
Danning, Gill, Diamond & Kolitz, LLP, assists the Company in its
restructuring effort. The Company estimated its assets and debts
at $10,000,001 to $50 million.
These affiliates filed separate Chapter 11 petitions:
-- Bundy Dimes, LLC (Case No. 10-22149) on March 31, 2010,
estimating assets and debts at $10 million to $50 million;
-- Bunwil Capital, LLC (Case No. 10-22153) on March 31, 2010,
estimating assets and debts of $10 million to $50 million;
-- Dimes, LLC (Case No. 09-25517) on September 19, 2009;
-- Ezri Namvar (Case No. 08-32349) on December 28, 2008; and
-- Namco Capital Group (Case No. 08-32333) on December 28,
2008.
MJG BAKERS: Voluntary Chapter 11 Case Summary
---------------------------------------------
Debtor: MJG Bakers, Inc.
dba JK Bakers
Westcott & Schmindt
7945 Wellingford Drive
Manassas, VA 20109-2445
Bankruptcy Case No.: 10-12889
Chapter 11 Petition Date: April 13, 2010
Court: U.S. Bankruptcy Court
Eastern District of Virginia (Alexandria)
Judge: Robert G. Mayer
Debtor's Counsel: Thomas F. DeCaro Jr., Esq.
14406 Old Mill Road, #201
Upper Marlboro, MD 20772
Tel: (301) 464-1400
E-mail: tfd@erols.com
Estimated Assets: $0 to $50,000
Estimated Debts: $1,000,001 to $10,000,000
The Company did not file a list of creditors together with its
petition.
The petition was signed by John Panas, president.
MMR HOLDINGS: Voluntary Chapter 11 Case Summary
-----------------------------------------------
Debtor: MMR Holdings, Inc.
dba Medical Marketing Resources
MMR
301 Concourse Blvd., #230
Glen Allen, VA 23059
Bankruptcy Case No.: 10-32658
Chapter 11 Petition Date: April 14, 2010
Court: U.S. Bankruptcy Court
Eastern District of Virginia (Richmond)
Judge: Chief Judge Douglas O. Tice Jr.
Debtor's Counsel: David K. Spiro, Esq.
Hirschler Fleischer
Post Office Box 500
Richmond, VA 23218-0500
Tel: (804) 771-9500
Fax: (804) 644-0957
E-mail: dspiro@hf-law.com
Robert S. Westermann, Esq.
Hirschler Fleischer, P.C.
2100 East Cary Street
The Edgeworth Building
Richmond, VA 23223
Tel: 804-771-5610
Fax: 804-644-0957
E-mail: rwestermann@hf-law.com
Estimated Assets: $0 to $50,00
Estimated Debts: $1,000,001 to $10,000,000
The list of the Company's 20 largest unsecured creditors filed
together with the petition is available for free at:
http://bankrupt.com/misc/vaeb10-32658.pdf
Debtor-affiliate that filed separate Chapter 11 petition:
Petition
Debtor Case No. Date
------ -------- ----
OPENSIDED MRI OF ATLANTA, LLC 10-32661 4/14/10
Assets: $0 to $50,000
Debts: $100,000 to $500,000
OPENSIDED MRI OF CLEVELAND, LLC, 10-32668 4/14/10
OPENSIDED MRI OF CINCINNATI, LLC 10-32663 4/14/10
OPENSIDED MRI OF DENVER, LLC 10-32669 4/14/10
OPENSIDED MRI OF INDIANAPOLIS, LLC 1O-32664 4/14/10
OPENSIDED MRI OF KANSAS, LLC, 10-32670 4/14/10
OPENSIDED MRI OF LAS VEGAS, LLC 10-32672 4/14/10
OPENSIDED MRI OF LOUISVILLE, LLC 10-32673 4/14/10
OPENSIDED MRI OF NEW ORLEANS, LLC 1O-32665 4/14/10
OPENSIDED MRI OF OKLAHOMA CITY, LLC 10-32674 4/14/10
OPENSIDED MRI OF ORANGE COUNTY, LLC 10-32666 4/14/10
OPENSIDED MANAGEMENT, LLC 10-32667 4/14/10
OPENSIDED MRI OF SAN ANTONIO, LLC 10-32676 4/14/10
MONEYGRAM INT'L: Board OKs Amendments to Compensation Plans
-----------------------------------------------------------
The Board of Directors of MoneyGram International, Inc. -- upon
recommendation of the Human Resources and Nominating Committee --
approved on April 12, 2010:
(A) MoneyGram International, Inc. Deferred Compensation Plan,
as amended and restated April 12, 2010. The Deferred
Compensation Plan was amended to: (i) discontinue future
deferrals of eligible compensation effective April 1,
2010; (ii) allow the Human Resources and Nominating
Committee discretion to change the Deferred Compensation
Plan's interest rate; and (iii) deferral accounts with
stock unit balances will convert to cash as of April 1,
2010.
(B) 2005 Deferred Compensation Plan for Directors of
MoneyGram International, Inc., as amended and restated
April 12, 2010. The 2005 Director Deferred Compensation
Plan was amended to: (i) allow the Human Resources and
Nominating Committee discretion to change the Deferred
Compensation Plan's interest rate; (ii) deferral accounts
with stock unit balances will convert to cash as of
April 1, 2010; and (iii) terminate the 2005 Director
Deferred Compensation Plan to allow accounts to be fully
distributed after May 1, 2011.
(C) Deferred Compensation Plan for Directors of MoneyGram
International, Inc., as amended and restated April 12,
2010. The 2004 Director Deferred Compensation Plan was
amended to: (i) allow the Human Resources and Nominating
Committee discretion to change the Deferred Compensation
Plan's interest rate; (ii) deferral accounts with stock
unit balances will convert to cash as of April 1, 2010;
and (iii) allow lump sum distributions of small account
balances upon resignation from the Corporation's Board of
Directors.
About MoneyGram International
Minneapolis, Minnesota, MoneyGram International (NYSE:MGI) --
http://www.moneygram.com/-- offers more control and more choices
for people separated by distance or with limited bank
relationships to meet their financial needs. MoneyGram helps
consumers to pay bills quickly and safely send money around the
world in as little as 10 minutes. Its global network is comprised
of 190,000 agent locations in nearly 190 countries and
territories. MoneyGram's convenient and reliable network includes
retailers, international post offices and financial institutions.
At December 31, 2009, the Company had total assets of
$5.879 billion against $5.877 billion in total liabilities,
$864.328 million in mezzanine equity and $862.763 million in
stockholders' deficit.
MONEYGRAM INT'L: Names 4 Candidates for Election to Board
---------------------------------------------------------
MoneyGram International said J. Coley Clark, Victor Dahir, Ann
Mather and W. Bruce Turner will stand for election to the
MoneyGram Board of Directors at the company's May 26 annual
meeting. This will bring the number of directors to nine, four of
whom will be independent.
"MoneyGram is very fortunate to have an exceptional group of
proven leaders with global experience to stand for election to our
board of directors," said Pamela H. Patsley, MoneyGram chairman
and CEO. "These individuals bring independent judgment and a
dedication to building shareholder value, and they will be a
tremendous resource for our company."
According to MoneyGram, J. Coley Clark, chairman and CEO at
BancTec, Inc., brings a wealth of technology services experience
from his position with BancTec as well as with Electronic Data
Systems Corporation, where Clark spent 33 years. He has
previously served on two public and two private company boards. A
graduate of the University of Texas, Clark served as a captain and
company commander in the United States Army.
MoneyGram says Victor Dahir brings a solid financial services
background, having spent 21 years with Visa USA Inc., most
recently as executive vice president and chief financial officer
prior to his retirement in 2005. Mr. Dahir also served as CFO of
Redwood Bank, and held financial positions of increasing
responsibility at Levi Strauss & Co. Mr. Dahir is a graduate of
Amherst College and earned his Master of Business Administration
from Harvard University
Ann Mather currently is a member of the boards of Google Inc. and
Glu Mobile Inc. She has more than 25 years of financial
experience, including serving as executive vice president and CFO
of Pixar Animation Studios and Village Roadshow Pictures. She also
served in various finance positions at Paramount Pictures
Corporation, Polo Ralph Lauren Corporation and The Walt Disney
Company. Ms. Mather has a Master of Arts degree from England's
University of Cambridge.
MoneyGram says W. Bruce Turner brings vast experience in regulated
consumer markets and international business. He has served as the
CEO of Lottomatica S.p.A., an Italian public company recognized as
a global leader in lottery operations and technology services. He
also served as President and CEO of GTECH Holdings Corporation, a
global technology services leader in the government regulated
lottery industry. GTECH Holdings Corporation was acquired by
Lottomatica in 2006. Mr. Turner, a Wall Street veteran, was
previously employed by Raymond James and Associates and Salomon
Smith Barney Inc. Mr. Turner currently serves on the board of
Lottomatica S.p.A. He is a graduate of the United States Military
Academy at West Point, earned a Master's degree at Central
Michigan University, and has a Master of Business Administration
from the University of Tampa.
"I would once again like to thank our three current independent
directors for their dedicated service to the company. Although
these directors have determined not to stand for re-election, I am
very pleased to have candidates to succeed them who not only are
highly credentialed professionals individually, but also,
collectively, provide the type of extensive and varied experience
and leadership that can help guide MoneyGram into a new era of
growth and global expansion," said Ms. Patsley.
On February 25, 2010, MoneyGram announced that three directors who
had been on the company's board prior to MoneyGram's
recapitalization would not to seek re-election to ensure a wholly
new post-recapitalization board.
About MoneyGram International
Minneapolis, Minnesota, MoneyGram International (NYSE:MGI) --
http://www.moneygram.com/-- offers more control and more choices
for people separated by distance or with limited bank
relationships to meet their financial needs. MoneyGram helps
consumers to pay bills quickly and safely send money around the
world in as little as 10 minutes. Its global network is comprised
of 190,000 agent locations in nearly 190 countries and
territories. MoneyGram's convenient and reliable network includes
retailers, international post offices and financial institutions.
At December 31, 2009, the Company had total assets of
$5.879 billion against $5.877 billion in total liabilities,
$864.328 million in mezzanine equity and $862.763 million in
stockholders' deficit.
MONEYGRAM INT'L: Settles Stockholder Action on Subprime Losses
--------------------------------------------------------------
MoneyGram International Inc. disclosed that on April 1, 2010,
United States District Court Judge David S. Doty signed an order
scheduling a hearing for June 18, 2010, on a proposed settlement
of a case captioned In re MoneyGram International, Inc. Derivative
Litigation. The case, pending in the United States District Court
for the District of Minnesota, is a stockholder derivative action
arising out of MoneyGram's subprime related losses in 2007 and
2008.
Specifically, the Plaintiffs alleged that certain officers and
directors of MoneyGram breached their fiduciary duties, caused
MoneyGram to make false or misleading statements and committed
other wrongful acts in connection with, among other things, the
management and oversight of MoneyGram's investment portfolio and
internal accounting and controls, Euronet Worldwide's expression
of interest in entering into a transaction with MoneyGram in 2007,
disclosures concerning these subjects, and MoneyGram's
recapitalization in 2008. The Plaintiffs assert claims on behalf
of MoneyGram for breaches of fiduciary duty, unjust enrichment,
abuse of control, and gross mismanagement. The Defendants deny
all allegations of wrongdoing.
The Litigation is settled in return for changes to MoneyGram's
business, corporate governance and internal controls, some of
which have already been implemented in whole or in part.
The Company previously announced it had entered into a memorandum
of understanding with plaintiffs to settle the case. A formal
stipulation of settlement was entered into on March 31, 2010.
The notice provides stockholders information concerning the
proposed settlement and an application by plaintiffs' counsel for
an award of attorneys' fees and expenses in the amount of
$1.25 million, to be paid by the Company and its insurers. The
notice also informs stockholders how they may object to the
proposed settlement and the request for attorneys' fees and
expenses or otherwise be heard by the Court.
The Plaintiffs are represented by:
Eric Zagar, Esq.
Barroway Topaz Kessler Meltzer & Check LLP
280 King of Prussia Road
Radnor, PA 19807
Tel: (610) 667-7706
Fax: (610) 667-7056
E-mail: ezagar@btkmc.com
-- and --
Robert B. Weiser, Esq.
The Weiser Law Firm, P.C.
121 N. Wayne Avenue, Suite 100
Wayne, PA 19087
Tel: (610) 225-2677
Fax: (610) 225-2678
E-mail: rw@weiserlawfirm.com/
A copy of the Notice of Proposed Settlement of Stockholder
Derivative Action and Settlement Hearing is available at no charge
at http://ResearchArchives.com/t/s?6011
About MoneyGram International
Minneapolis, Minnesota, MoneyGram International (NYSE:MGI) --
http://www.moneygram.com/-- offers more control and more choices
for people separated by distance or with limited bank
relationships to meet their financial needs. MoneyGram helps
consumers to pay bills quickly and safely send money around the
world in as little as 10 minutes. Its global network is comprised
of 190,000 agent locations in nearly 190 countries and
territories. MoneyGram's convenient and reliable network includes
retailers, international post offices and financial institutions.
At December 31, 2009, the Company had total assets of
$5.879 billion against $5.877 billion in total liabilities,
$864.328 million in mezzanine equity and $862.763 million in
stockholders' deficit.
MOUNTAIN RESORT: Section 341(a) Meeting Scheduled for May 17
------------------------------------------------------------
The U.S. Trustee for Region 19 will convene a meeting of Mountain
Resort Properties, LLC's creditors on May 17, 2010, at 1:30 p.m.
The meeting will be held at the U.S. Custom House, 721 19th
Street, Room 104, Denver, CO 80202.
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 Mountain Resort Properties, LLC, filed
for Chapter 11 bankruptcy protection on April 5, 2010 (Bankr. D.
Colo. Case No. 10-17709). F. Kelly Smith, Esq., who has an office
in Denver, Colorado, assists the Company in its restructuring
effort. The Company listed $10,000,001 to $50,000,000 in assets
and $1,000,001 to $10,000,000 in liabilities.
MOUNTAIN RESORT: Files List of Two Largest Unsecured Creditors
--------------------------------------------------------------
Mountain Resort Properties, LLC, has filed with the U.S.
Bankruptcy Court for the District of Colorado a list of its two
largest unsecured creditors.
Debtor's List of 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Eagle County Assessor's Office
P.O. Box 449 Property
Eagle, CO 81631 Taxes $40,207
R & H Mechanical
P.O. Box 810
Eagle, CO 81631-0810 Trade Debt $3,000
San Diego, California-based Mountain Resort Properties, LLC, filed
for Chapter 11 bankruptcy protection on April 5, 2010 (Bankr. D.
Colo. Case No. 10-17709). F. Kelly Smith, Esq., who has an office
in Denver, Colorado, assists the Company in its restructuring
effort. The Company listed $10,000,001 to $50,000,000 in assets
and $1,000,001 to $10,000,000 in liabilities.
NATIONAL CENTURY: Bankruptcy Court Examines Barton Doctrine
-----------------------------------------------------------
WestLaw reports that a creditor that had been named as a defendant
in an adversary proceeding by a liquidating trustee to recover for
the creditor's alleged violations of Barton doctrine in commencing
a state court action against the trustee, its principal and
attorneys for their actions during the course of jointly
administered Chapter 11 cases had no right, prior to entry of
summary judgment against her on the trustee's claims, to conduct
discovery in an attempt to uncover information showing that the
trustee, its principal and attorneys were acting outside the scope
of their authority. If the creditor, at the time she filed her
state court action, did not have information in her possession
showing that the trustee and others were acting outside the scope
of their authority, she violated Barton doctrine by filing the
state court suit without the bankruptcy court's permission. No
amount of discovery that she obtained post hoc could alter that
fact. In re National Century Financial Enterprises, Inc., ---
B.R. ----, 2010 WL 1199594 (Bankr. S.D. Ohio).
About National Century
Headquartered in Dublin, Ohio, National Century Financial
Enterprises, Inc. -- http://www.ncfe.com/-- was the largest
issuer of medical accounts receivable asset backed securities in
the United States before it collapsed in bankruptcy in November
2002 amid allegations of widespread fraud and misappropriation of
assets. To date, 10 senior executives of the company have been
convicted or pled guilty to federal charges of conspiracy,
securities fraud, wire fraud, and money laundering arising out of
the NCFE securitization program.
NCFE -- through the CSFB Claims Trust, the Litigation Trust, the
VI/XII Collateral Trust, and the Unencumbered Assets Trust -- is
in the midst of liquidating estate assets. The Company filed for
Chapter 11 protection on November 18, 2002 (Bankr. S.D. Ohio Case
No. 02-65235). The Court confirmed the Debtors' Fourth Amended
Plan of Liquidation on April 16, 2004. Paul E. Harner, Esq., at
Jones Day, represented the Debtors.
NAVDEEP JAGGI: Case Summary & 37 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: Navdeep Jaggi
aka Bakery Express Cafe', Inc.
Romi's Cafe
dba Bakery Express
1551 West Avenue O12
Palmdale, CA 93551
Tel: (661) 400-1981
Bankruptcy Case No.: 10-23603
Chapter 11 Petition Date: April 8, 2010
Court: U.S. Bankruptcy Court
Central District of California (Los Angeles)
Judge: Samuel L. Bufford
Debtor's Counsel: William H Brownstein, Esq.
1250 Sixth Street Suite 205
Santa Monica, CA 90401
Tel: (310) 458-0048
Fax: (310) 576-3581
E-mail: Brownsteinlaw.bill@gmail.com
Estimated Assets: $100,001 to $500,001
Estimated Debts: $1,000,001 to $10,000,000
A copy of the Debtor's list of 37 largest unsecured creditors
filed together with the petition is available for free at:
http://bankrupt.com/misc/cacb10-23603.pdf
The petition was signed by the Debtor.
Debtor-affiliate that filed separate Chapter 11 petition:
Petition
Debtor Case No. Date
------ -------- ----
Bakery Express Cafe', Inc. 10-16224 4/08/10
NCO GROUP: Moody's Downgrades Corporate Family Rating to 'B3'
-------------------------------------------------------------
Moody's Investors Service downgraded the Corporate Family Rating
of NCO Group, Inc., to B3 from B2 and affirmed the SGL-3
speculative grade liquidity rating. Moody's concurrently
downgraded each of NCO's debt instrument ratings by one notch.
The rating outlook was changed to stable from negative.
The downgrade of the CFR reflects an anticipated decline in
profitability in NCO's ARM and CRM business lines during 2010.
Moody's expects liquidation rates of delinquent accounts
receivables to remain depressed as many consumers struggle with
high unemployment and constrained access to credit. Profitability
in the CRM segment may be negatively affected by declining
transaction volumes from certain large customers in the
telecommunications sector.
The ratings are supported by Moody's expectation that NCO will use
free cash flow to pay down debt during 2010. NCO recently
announced that due to the ongoing difficult economic environment,
it will limit purchases of delinquent accounts receivable in 2010
to existing commitments and will focus on maximizing the cash
potential from its existing portfolio. The company also recently
amended its credit facility which provided for, among other
things, relaxed financial covenant requirements, an option to
extend the revolving credit facility in the future and tighter
cash flow sweep provisions. Moody's expects financial strength
metrics to modestly weaken in 2010.
Moody's downgraded these ratings (assessments):
* $549 million senior secured term loan due 2013, to B1 (LGD 2,
27%) from Ba3 (LGD 3, 30%)
* $100 million senior secured revolver due 2011, to B1 (LGD 2,
27%) from Ba3 (LGD 3, 30%)
* $165 million senior floating rate notes due 2013, to Caa1 (LGD
5, 73%) from B3 (LGD 4, 66%)
* $200 million senior subordinated notes due 2014, to Caa2 (LGD 6,
90%) from Caa1 (LGD 6, 91%)
* Corporate Family Rating, to B3 from B2
* Probability of Default Rating, to B3 from B2
This rating was affirmed:
* Speculative Grade Liquidity rating, SGL-3
The last rating action on NCO was on March 26, 2009, when Moody's
affirmed the B2 Corporate Family Rating and the SGL-3 speculative
grade liquidity rating. The rating outlook remained negative.
Based in Horsham, Pennsylvania, NCO Group, Inc., is a global
provider of business process outsourcing services, primarily
focused on accounts receivable management and customer
relationship management. NCO, a portfolio company of One Equity
Partners, reported revenues of about $1.6 billion for the year
ended December 31, 2009.
NEWPAGE CORP: Unit Sells Hawkesbury Assets for C$80 Million
-----------------------------------------------------------
NewPage Port Hawkesbury Corp., an indirect wholly owned subsidiary
of NewPage Corporation, a wholly owned subsidiary of NewPage
Holding Corporation, on April 1, 2010, entered into an Asset
Purchase Agreement with Nova Scotia Power Inc. to sell certain
assets including a boiler at the Port Hawkesbury, Nova Scotia,
mill for a cash sales price of C$80 million.
"We plan to invest the proceeds in our business or use the
proceeds to repay indebtedness, or both, in accordance with the
terms of our debt instruments. The transaction, which is expected
to close in the second half of 2010, is subject to customary
conditions, including the receipt of regulatory approvals,"
Douglas K. Cooper, Secretary at NewPage.
In addition, NSPI and NPPH signed a term sheet for NPPH to
construct for NSPI a 60 MW biomass cogeneration utility plant for
the generation of electricity by December 31, 2012, for
approximately C$93 million. NSPI and NPPH also entered into a
Management, Operations and Maintenance Agreement related to NPPH
operating the utility assets for NSPI.
Nova Scotia Power Inc. is the largest wholly owned subsidiary of
Emera Inc. (TSX-EMA), a diversified energy and services company.
Nova Scotia Power provides more than 95% of the generation,
transmission and distribution of electrical power to 486,000
customers in the province. The company is focused on new
technologies to enhance customer service and reliability, reduce
emissions and add renewable energy. Nova Scotia Power has 1,900
employees and C$3.5 billion in assets.
In March 2010, Consolidated Water Power Company, an indirect
wholly owned subsidiary of NewPage Corp., entered into a letter of
intent to sell five hydroelectric projects to Great Lakes
Utilities. The five hydroelectric projects have a combined
installed capacity of 35.2 megawatts and the agreed upon price is
approximately $2,000 per kilowatt of installed capacity.
The proposed acquisition will enable GLU to generate low cost,
renewable power and help meet the needs of its members' renewable
portfolio standards. While GLU assessed different options for
generating renewable power, including wind and biomass projects,
the acquisition of CWPCo's hydroelectric projects provides the
best option for participating members.
The assets included in the proposed acquisition currently provide
power to four central Wisconsin NewPage mills. However, the
decision to sell these assets is expected to have little impact on
these operations, as less than ten percent of the mills' combined
required electricity demand is currently supplied by the CWPCo
hydroelectric projects.
Timing of the closing of the transaction has not been determined
and is subject to regulatory approvals.
In February, CWPCo, along with Wisconsin Rapids Water Works and
Lighting Commission filed an application with the Public Service
Commission of Wisconsin for approval of the sale of CWPCo utility
transmission and distribution assets to WRWWLC. Time of closing
in that transaction is also dependent on regulatory review and the
Commission's approval.
Sanabe & Associates, LLC acted as exclusive financial advisor to
NewPage and CWPCo for the proposed transactions.
About NewPage Corporation
Headquartered in Miamisburg, Ohio, NewPage Corporation --
http://www.NewPageCorp.com/-- is the largest coated paper
manufacturer in North America, based on production capacity, with
$4.4 billion in net sales for the year ended December 31, 2008.
The company's product portfolio is the broadest in North America
and includes coated freesheet, coated groundwood, supercalendered,
newsprint and specialty papers. These papers are used for
corporate collateral, commercial printing, magazines, catalogs,
books, coupons, inserts, newspapers, packaging applications and
direct mail advertising.
NewPage owns paper mills in Kentucky, Maine, Maryland, Michigan,
Minnesota, Wisconsin and Nova Scotia, Canada. These mills have a
total annual production capacity of approximately 4.4 million tons
of paper, including approximately 3.2 million tons of coated
paper, approximately 1.0 million tons of uncoated paper and
approximately 200,000 tons of specialty paper.
NewPage Corp. reported $4.0 billion in total assets,
$468.0 million, $3.0 billion in long term debt, and $493.0 in
long-term obligations resulting to a $14.0 million stockholders'
equity as of Dec. 31, 2009.
* * *
As reported by the Troubled Company Reporter on October 7, 2009,
Standard & Poor's Ratings Services raised its corporate credit
rating on NewPage Corp. to 'CCC+' from 'SD' (selective default).
The outlook is negative.
S&P raised the issue-level rating on the company's second-lien
floating- and fixed-rate notes due 2012 to 'CCC-' (two notches
below the corporate credit rating) from 'D'. The recovery rating
on these notes remains at '6', indicating S&P's expectation of
negligible (0% to 10%) recovery in the event of a payment default.
S&P also raised the issue-level rating on the company's
subordinated notes to 'CCC-' from 'CC'. The recovery rating is
unchanged at '6', indicating S&P's expectation of negligible (0%
to 10%) recovery in the event of a payment default.
NORANDA ALUMINUM: Board OKs 2010 Annual Incentive Plan
------------------------------------------------------
The Compensation Committee of the Board of Directors of Noranda
Aluminum Holding Corporation has approved the 2010 Annual
Incentive Plan for Salaried Employees, including the executive
officers of the Company.
Under the terms of the Plan, the Participants will be eligible to
receive performance-based compensation based upon the level of
achievement on target performance metrics for the period from
January 1, 2010 through December 31, 2010. For 2010, the
incentive targets for Layle "Kip" Smith, the Company's President
and Chief Executive Officer, and Kyle Lorentzen, the Company's
Chief Operating Officer, are 100% and 65% of base salary,
respectively, and the incentive targets for Robert Mahoney, the
Company's Chief Financial Officer, and Gail Lehman, the Company's
General Counsel, are 60% of base salary. For Scott Croft, the
President of the Company's Downstream business segment, and Alan
Brown, the Company's Vice President of Human Resources, the
incentive target is 50% of base salary.
The performance metrics under the 2010 Annual Incentive Plan and
the weightings of each metric for purposes of determining the
Participants' actual award amounts under the Plan are as follows:
Safety (15% weighting); Adjusted EBITDA Cost for the Upstream
segment and Segment Adjusted EBITDA for the Downstream segment
(each weighted at 50%); Enterprise Adjusted EBITDA (20%
weighting); Working Capital as a Percent of Sales (5% weighting);
and Free Cash Flow (10% weighting). With the exception of a
potential pay-out for achievement of Safety performance, the
Company's Enterprise Adjusted EBITDA attainment for the Incentive
Period against a set target will be used to determine the
eligibility for a payment under the Plan. For Messrs. Smith,
Mahoney, Brown, and Lorentzen, and for Ms. Lehman, 100% of their
2010 incentive award, if any, will be based on the Company's
overall financial achievement on the performance metrics. Mr.
Croft's financial metrics will be split equally between the
Company's overall financial achievement and that of the Downstream
segment which he leads. A Participant is eligible for 85% of the
participant's target award if at least threshold performance is
achieved on the metrics identified for the Incentive Period and
for up to 200% of the participant's target award if performance
exceeds target levels.
About Noranda Aluminum
Franklin, Tennessee-based Noranda Aluminum Holding Corporation --
http://www.norandaaluminum.com/-- is a North American integrated
producer of value-added primary aluminum products, as well as high
quality rolled aluminum coils. The Company has two businesses, an
upstream and downstream business. The primary metals -- or
upstream business -- produce primary aluminum. The rolling mills
-- or downstream business -- are one of the largest foil producers
in North America and a major producer of light gauge sheet
products. Noranda Aluminum Holding Corporation is a private
company owned by affiliates of Apollo Management, L.P.
At December 31, 2009, the Company had total assets of
$1.697 billion against total current liabilities of
$166.851 million; long-term debt, net of $944.166 million, pension
and OPEB liabilities of $106.393 million, other long-term
liabilities of $55.632 million, deferred tax liabilities of
$330.382 million, and common stock subject to redemption of
$2.000 million. At December 31, 2009, the Company had
stockholders' equity of $86.164 million.
* * *
As reported by the Troubled Company Reporter on March 23, 2010,
Standard & Poor's Ratings Services raised its corporate credit
rating on Noranda Aluminum Holding Corp. and its subsidiary,
Noranda Aluminum Acquisition Corp. to 'B-' from 'CCC+'.
The TCR said on January 27, 2010, that Moody's Investors Service
upgraded Noranda Aluminum Holding Corporation's Corporate Family
Rating and Probability of Default Rating to B3 from Caa1.
NORTH BAY: U.S. Trustee Unable to Form Creditors Committee
----------------------------------------------------------
The Office of the U.S. Trustee for Region 21 notified the U.S.
Bankruptcy Court for the Middle District of Florida that until
further notice, it will not appoint an official committee of
unsecured creditors in the Chapter 11 case of North Bay Village,
LLC.
The U.S. Trustee said that there were insufficient indications of
willingness from the unsecured creditors to serve in the
Committee.
Tampa, Florida-based North Bay Village LLC -- dba North Bay
Village - MM, Inc., and Pelican Bay/Limetree, LLC -- filed for
Chapter 11 bankruptcy protection on February 12, 2010 (Bankr. M.D.
Fla. Case No. 10-03090). Steven M. Berman, Esq., at Shumaker,
Loop & Kendrick, LLP, assists the Company in its restructuring
effort. The Company listed $10,000,001 to $50,000,000 in assets
and $10,000,001 to $50,000,000 in liabilities.
ORBITZ WORLDWIDE: Moody's Affirms 'B2' Corporate Family Rating
--------------------------------------------------------------
Moody's Investors Service affirmed the B2 corporate family rating
for Orbitz Worldwide, Inc., and revised the rating outlook to
stable from negative. Concurrently, Moody's upgraded the
speculative-grade liquidity rating to SGL-2 from SGL-3 and the
probability of default rating to B2 from B3. The upgrades reflect
Orbitz' improved liquidity profile primarily due to the company's
debt and equity transactions with PAR Investment Partners and
Travelport, respectively, completed in January 2010. Loss given
default point estimates were updated to reflect the current
capital structure.
The revision of the outlook to stable is based on Moody's
expectation that the travel industry, in particular air travel, is
expected to see some resumption of growth during 2010 in terms of
volumes, which is a key driver for Orbitz' profitability. The
stable outlook also considers the company's improved liquidity
profile from cost savings initiatives and recent capital
transactions that improve the cushion under its financial
covenants, which will provide the company with more financial
flexibility as the travel industry slowly rebounds and the company
pursues its strategy to expand its hotel business globally.
The SGL-2 liquidity rating indicates good liquidity for the
company. Pro forma for the January debt and equity transactions
and business seasonality, Moody's estimate the company's cash
balance at March 31, 2010, will be over $100 million. Assuming
proceeds from Travelport's $50 million equity infusion were used
to repay the company's revolver draw, Orbitz is likely to have
full availability on its $85 million revolver, less any letters of
credit outstanding and reduced capacity due to Lehman's
$12.5 million commitment. In addition, with the reduction of
secured debt of $50 million from the PAR debt-for-equity exchange,
as well as additional debt payments made by the company in Q1
FY2010, Moody's expects the company will maintain sufficient
cushion under its financial maintenance covenants for at least the
next twelve months.
Orbitz's B2 CFR reflects the company's strong online franchise and
recognizable global brand, solid position in the consumer online
travel services market (which continues to benefit from online
penetration of travel expenditures), and moderate financial
leverage following completion of the aforementioned debt and
equity transactions. The rating also considers the significant
competition from supplier-owned direct and other financially
stronger third-party travel sites (e.g. Expedia and Priceline),
the unprofitable international businesses, the controlling stake
held by the Blackstone Group and its affiliates (including
Travelport), who collectively own about 55% of the company's
outstanding common stock, and the unknown long-term impact of
significantly reduced marketing spend. Given the potential
conflicts of interests that may arise with common control, Moody's
also considers the ratings of Travelport (B2 CFR, stable) when
assessing the ratings of Orbitz.
Ratings revised by this action:
* Probability of Default Rating upgraded to B2 from B3
* Speculative Grade Liquidity Rating upgraded to SGL-2 from SGL-3
These ratings affirmed by this action, however assessments were
revised:
* Corporate Family Rating affirmed at B2;
* $600 million secured term loan facility due 2014 - B2 (LGD3, 47%
from 31%);
* $85 million secured revolving credit facility due 2013 - B2
(LGD3, 47% from 31%)
The last rating action was on November 18, 2008, when Moody's
revised Orbitz' rating outlook to negative from stable.
Orbitz Worldwide, Inc., with $738 million of revenue for the
twelve months ended December 31, 2009, is a leading global online
travel company, which operates a portfolio of consumer and
corporate travel brands, including Orbitz, CheapTickets, HotelClub
and ebookers.
PALM INC: Harbinger Holds 9.48% of Common Stock
-----------------------------------------------
Harbinger Capital Partners Master Fund I, Ltd.; Harbinger Capital
Partners LLC; Harbinger Holdings, LLC; and Philip Falcone
disclosed that as of April 12, 2010, they may be deemed to
beneficially own 16,000,000 shares or roughly 9.48% of the common
stock of Palm Inc.
Harbinger LLC serves as the investment manager and investment
advisor to the Master Fund. Harbinger Holdings serves as the
manager of Harbinger LLC. Mr. Falcone serves as the managing
member of Harbinger Holdings and the portfolio manager of the
Master Fund. In such capacity, Harbinger Holdings and Mr. Falcone
may be deemed to have voting and dispositive power over the Shares
held for the Master Fund.
The New York Times reports that shares of Palm climbed as much as
10% on Wednesday after Harbinger's disclosure, but Palm later gave
up much of its earlier gains and ended the day up 3.1%.
About Palm Inc.
Sunnyvale, California-based Palm, Inc. (NASDAQ: PALM) creates
intuitive and powerful mobile experiences that enable consumers
and businesses to connect to their information in more useful and
usable ways. Palm products are sold through select Internet,
retail, reseller and wireless operator channels, and at the Palm
online store at http://www.palm.com/store
* * *
As reported by the Troubled Company Reporter on March 5, 2010,
Standard & Poor's Ratings Services affirmed its 'CCC+' corporate
credit rating and other ratings on Palm Inc. and revised the
ratings outlook to negative from positive. "The action reflects
the company's announcement that revenues in the February 2010
quarter and fiscal year ending May 2010 will be well below earlier
expectations," said Standard & Poor's credit analyst Bruce Hyman.
PARKING CORP OF AMERICA: Creditors Balk at $111M Asset Sale Plan
----------------------------------------------------------------
Bankruptcy Law360 reports that unsecured creditors of Parking
Corp. of America Airports, a subsidiary of Macquarie
Infrastructure Co., have asked a court not to confirm the
company's disclosure statement, which describes a plan to sell the
company's assets for $111.5 million.
Macquarie Infrastructure Company (NYSE: MIC) --
http://www.macquarie.com/mic-- owns, operates and invests in a
diversified group of infrastructure businesses providing basic,
everyday services, to customers in the United States. Its ongoing
businesses consist of three energy-related businesses including a
gas production and distribution business (The Gas Company in
Hawaii) and controlling interest in a district energy business
(Thermal Chicago), and a 50% indirect interest in a bulk liquid
storage terminal business (International-Matex Tank Terminals).
MIC also owns and operates an aviation-related airport services
business (Atlantic Aviation). The Company is managed by a wholly-
owned subsidiary of the Macquarie Group.
MIC is not an authorized deposit-taking institution for the
purposes of the Banking Act 1959 (Commonwealth of Australia). The
obligations of MIC do not represent deposits or other liabilities
of Macquarie Bank Limited ABN 46 008 583 542 (MBL). MBL does not
guarantee or otherwise provide assurance in respect of the
obligations of MIC.
PARLUX FRAGRANCES: Amends Employment Agreements with Execs
----------------------------------------------------------
Parlux Fragrances, Inc., has entered into various employment
agreements:
1. Amendment to Executive Employment Agreement, dated as of
March 31, 2010, with Frank A. Buttacavoli, its Executive
Vice President and Chief Operating Officer;
2. Executive Employment Agreement, dated as of April 1, 2010,
with Frederick E. Purches, its Chairman and Chief
Executive Officer; and
3. Executive Employment Agreement, dated as of April 1, 2010,
with Raymond J. Balsys, its Chief Financial Officer.
Employment Agreement with Buttacavoli
Pursuant to the Amendment to Mr. Buttacavoli's employment
agreement, Mr. Buttacavoli will receive an annual base salary of
$360,000 from April 1, 2010 through March 31, 2011 and an annual
base salary of $400,000 from April 1, 2011 through March 31, 2012.
Mr. Buttacavoli volunteered to reduce his annual base salary by
10% to assist the Company in its cost reduction initiatives. All
other terms under Mr. Buttacavoli's employment agreement remain
unchanged.
Employment Agreement with Purches
The Purches employment agreement provides for a term of one year
beginning on April 1, 2010, and ending on March 31, 2011. Mr.
Purches will receive an annual base salary of $300,000. Mr.
Purches will not be entitled to participate in the Company's
executive bonus plan, but the Board of Directors may in its
discretion award a bonus to Mr. Purches. Mr. Purches will be
eligible for and may participate in any benefits and perquisites
available to other executive officers, including any group health,
dental, disability, life insurance benefit plans, car allowance or
other form of executive benefit plan or program of the Company
existing from time to time.
The Company recognizes that Mr. Purches resides in New York and
will not be relocating his residence. Accordingly, the employment
agreement provides that the Company will reimburse Mr. Purches for
all reasonable and documented travel expenses and may consider
renting an apartment or extended stay accommodations in Fort
Lauderdale at its expense for Mr. Purches under certain
circumstances.
On April 1, 2010, Mr. Purches was granted an option to purchase
50,000 shares of common stock of the Company at an exercise price
of $2.25 (the closing price on the grant date), pursuant to the
Company's 2007 Stock Incentive Plan. The option will vest with
respect to 25,000 shares immediately and with respect to 25,000
shares on April 1, 2011.
If the Company terminates the employment agreement with Mr.
Purches prior to March 31, 2011, then the Company will engage Mr.
Purches or his affiliate, Cosmix, Inc., to provide transition and
consulting services as reasonably requested by the Company until
March 31, 2011, for a fee of $25,000 per month. Upon expiration of
his employment agreement or upon termination, other than for
"Cause", the Company shall permit Mr. Purches to participate in
the Company's benefit plans and will continue to pay the premiums
covering Mr. Purches' participation in such benefit plans for up
to 18 months from the termination date as consideration for Mr.
Purches' availability for consulting services as may be reasonably
requested by the Company as long as such participation by Mr.
Purches in the benefit plans and the payment by the Company of the
continuation premiums shall be permitted under the terms of the
benefit plans and any applicable law in effect during such period.
A termination will be deemed to have occurred for "Cause" under
the employment agreement if Mr. Purches is terminated for:
(i) willful misconduct; (ii) commission of a felony;
(iii) repeated disregard of his duties under the employment
agreement; or (iv) material breach of the terms of his employment
agreement. Additionally, Mr. Purches may retain any stock options
granted during the term of the employment agreement for the
remaining term of the stock options. Under the terms of the
employment agreement, Mr. Purches is subject to certain
restrictive covenants, including confidentiality, non-solicitation
and non-competition covenants.
New Employment Agreement With Balsys
The employment agreement with Mr. Balsys was scheduled to expire
under its terms on July 25, 2010. On April 1, the agreement was
replaced and superseded by a new employment agreement -- in
effect, terminating the prior agreement early without penalty or
cost to either party.
The new employment agreement provides for a term beginning on
April 1, 2010, and ending on July 31, 2011. Pursuant to the
employment agreement, Mr. Balsys will receive an annual base
salary of $225,000. Mr. Balsys volunteered to reduce his annual
base salary by 10% to assist the Company in its cost reduction
initiatives.
Mr. Balsys will be eligible to receive an annual bonus of up to
50% of his annual base salary based on the Company's achievement
of certain financial measures and management objectives as
determined by the Company's Compensation Committee. Mr. Balsys
will be eligible for and may participate in any benefits and
perquisites available to other executive officers, including any
group health, dental, disability, life insurance benefit plans,
car allowance or other form of executive benefit plan or program
of the Company existing from time to time.
On April 1, 2010, Mr. Balsys was granted an option to purchase
20,000 shares of common stock of the Company at an exercise price
of $2.25 (the closing price on the grant date), pursuant to the
Company's 2007 Stock Incentive Plan. The option will vest with
respect to 10,000 shares immediately and with respect to 10,000
shares on July 31, 2011.
If Mr. Balsys is terminated without "Cause", Mr. Balsys will be
entitled to: (i) the lesser of (a) his annual base salary for a
period of 180 days, or (b) his annual base salary through July 31,
2011; (ii) retention of vested stock options for the remaining
term of such options; and (iii) retention of such benefits to the
extent applicable under such benefit plans or as may be required
by applicable law. A termination will be deemed to have occurred
for "Cause" under the employment agreement if, in the good faith
judgment of the Company's board of directors: (i) Mr. Balsys
commits fraud, theft or embezzlement; (ii) Mr. Balsys commits an
act of dishonesty affecting the Company or a felony or a crime
involving moral turpitude; (iii) Mr. Balsys breaches any non-
competition, confidentiality or non-solicitation agreement with
the Company; (iv) Mr. Balsys breaches any of the material terms of
this employment agreement and fails to cure such breach within 30
days after the receipt of written notice of such breach from the
Company; (v) Mr. Balsys engages in gross negligence or willful
misconduct that causes unreasonable harm to the business and
operations of the Company; or (vi) Mr. Balsys unreasonably fails
or refuses to diligently perform the duties and responsibilities
required to be performed by him under the terms of the employment
agreement. Under the terms of the employment agreement, Mr. Balsys
is subject to certain restrictive covenants, including
confidentiality, non-solicitation and non-competition covenants.
PEARL COMPANIES: Files for Chapter 11 in Fort Lauderdale
--------------------------------------------------------
Pearl Cos. filed a Chapter 11 petition on April 9 in Fort
Lauderdale, Florida (Bankr. S.D. Fla. Case No. 10-19336).
Pearl Cos. has six arts and crafts stores now in operation. In
its petition, it listed assets of $7.9 million and debt totaling
$10.9 million. The liabilities don't include landlords' claims on
11 stores that were closed before the bankruptcy filing, Bloomberg
News reported.
According to the Bloomberg report, Pearl said that revenue in 2009
was $41.9 million, resulting in a $6 million estimated net loss.
For the ensuing 12 months, Pearl anticipates revenue of $26
million.
PETER KALIKOW: Second Circuit Reverses Sanction Award
-----------------------------------------------------
WestLaw reports that the Chapter 11 provision stating that a
discharge operates as an injunction against further efforts to
collect discharged debts did not bar a former Chapter 11 debtor's
post-confirmation lender from using a defunct corporation as a
front to receive notices of former unsecured creditors' claims.
The former creditors neither contacted the debtor nor initiated
judicial proceedings. Their contact with the corporation did not
pressure the debtor to repay any of its discharged debts. In re
Kalikow,
--- F.3d ----, 2010 WL 1407159 (2nd Cir.).
Peter S. Kalikow and Kalikow Real Estate Co. sought chapter 11
protection (Bankr. S.D.N.Y. Case No. 91-_____) on Aug. 21, 1991.
On Dec. 21, 1993, the Debtors filed a plan of reorganization, and
the Honorable Burton R. Lifland confirmed that plan on Jan. 27,
1994. As part of the Plan, the Debtors were required to submit to
the Bankruptcy Court a Representation Letter that would provide
unsecured creditors assurance that the Debtors had made a full
disclosure of their assets. The Debtors submitted that letter on
Feb. 17, 1994, the date the Plan took effect. The Representation
Letter reserved to a Plan Administrator an enforcement mechanism
in the event of a breach by the Debtors. It authorized the Plan's
Administrator, on behalf of creditors, to pursue a post-
confirmation claim "as a result of a misrepresentation or breach
of the representations and warranties set forth [in the
Representation Letter]" up to ten years from the Plan's effective
date. This provision of the Representation Letter was
incorporated into section 4.6 of the Plan Administrator Agreement,
which stated that "[e]xcept as expressly provided ... in this
Section 4.6 [of the Plan Administrator Agreement], no person other
than the Plan Administrator shall have authority to commence any
legal action or otherwise pursue any right or remedy with respect
to any misrepresentation or breach of warranty under the Kalikow
Representation Letter." Should the Plan Administrator decline to
pursue such a claim, section 4.6 of the Plan Administrator
Agreement authorized an unsecured creditor to seek the court's
permission to pursue a post-confirmation claim as described in the
Representation Letter.
In Feb. 1994, a few weeks after the Confirmation Order had issued,
Sheldon H. Solow provided Mr. Kalikow with a $7 million loan and
received in exchange an option to buy an interest in Mr. Kalikow's
reorganized business. Mr. Kalikow repaid that loan in June 1994 -
- more than five years earlier than it was due. Mr. Kalikow then
repurchased the purchase-option from Mr. Solow for $2 million in
1995. The rapid repayment of the loan and repurchase of the
option caused Mr. Solow to speculate that Mr. Kalikow had
concealed a portion of their assets from creditors. Mr. Solow
never produced any evidence to support that speculation. In 1997,
Mr. Solow moved in the Bankruptcy Court for the appointment of an
examiner to investigate Mr. Kalikow's representations. By this
time, the bankruptcy cases were closed. The Plan Administrator
had been discharged on December 26, 1995. Mr. Kalikow opposed the
motion, arguing that Mr. Solow lacked standing to bring it as "a
post-confirmation lender who has been paid in full." Judge
Lifland denied that motion.
Approximately seven years after Mr. Solow's motion was denied, as
the ten-year period for postconfirmation claims was about to
expire, Mr. Solow and Steven Cherniak consulted Dreier LLP with
respect to the approaching claims deadline of Feb. 17, 2004. At
that time, Marc Dreier of Dreier LLP contacted Evergence Capital
Advisors, Inc., a defunct Florida Corporation, and Mr. Kovachev,
Evergence's owner, to front as the contact for notices to apprise
unsecured creditors "under the 1994 Chapter 11 Plan of
Reorganization of Debtors Peter S. Kalikow and Kalikow Real Estate
Co" of possible claims. The Notices contained a list of creditors
of the estates, some listed with the amounts of their claims,
followed by the statement: "You may have additional rights of
recovery based on a failure by the debtors to make truthful
disclosure. The deadline for your pursuing additional recovery is
February 17, 2004. All interested creditors should contact the
undersigned." The Notices bore the name of Evergence, and
provided phone and fax numbers; however, these numbers were
associated with a telephone and fax machine on the premises of
Dreier LLP. After the publication of the Notices on Feb. 9 and
12, 2004, in The New York Times and the New York Post, a number of
listed creditors attempted to contact Evergence, either
individually or by counsel. In response to the Notices, there
were eighteen letters (from former creditors or their counsel)
faxed to the fax number provided, and there were sixty-five
telephone calls (from fifty-nine separate numbers) made to the
number provided. The law firm of Bingham McCutchen prepared for
its client, 1001 Fifth Avenue Owners, Inc, and faxed to the number
provided, a proof of claim for submission to the Bankruptcy Court.
NFS Services, Inc. also submitted a letter of authority to collect
on behalf of its client, Lehman Brothers Holdings, Inc. However,
no creditor submitted a claim to the Bankruptcy Court or Plan
Administrator, or attempted to recover from Mr. Kalikow directly.
In response to the Notices, on Apr. 14, 2004, Mr. Kalikow filed a
motion to reopen and substantively consolidate the bankruptcy
cases. On Apr. 20, 2004, Mr. Kalikow filed a motion to enforce
the Plan's release, discharge and injunction against Evergence,
its directors, officers, controlling persons, and agents,
including Dreier. The motion identified Evergence as a defunct
Florida corporation, dissolved on Oct. 4, 2002. Kosta Kovachev
was identified as the president of Evergence. Mr. Kalikow alleged
in the Enforcement Motion that the Notices had been placed in bad
faith, had been designed to appear as if ordered by a court, had
created confusion among creditors, and had injured his reputation.
Mr. Kalikow deposed Mr. Dreier, and Mr. Dreier declined to
identify Messrs. Solow and Cherniak as his clients. Sometime
thereafter, Judge Lifland held a conference in chambers and
compelled the disclosure.
On June 7, 2004, Dreier filed an objection to the Enforcement
Motion on behalf of Messrs. Solow and Cherniak, claiming that Mr.
Kalikow's motions had "sought no relief against [them]." The
objection disputed Mr. Kalikow's allegations of bad faith, arguing
that the Notices had been placed in order to alert creditors,
before the deadline expired, to the possibility of post-
confirmation claims based on Mr. Kalikow's misrepresentations.
The objection also argued that the Bankruptcy Court lacked subject
matter jurisdiction, that the dispute should be heard by a formal
adversary proceeding, and that there was no legal basis for
relief. Mr. Kalikow filed a reply on June 9, 2004, stating that
relief would be sought against Messrs. Dreier, Solow and Cherniak.
At a hearing on June 10, 2004, Judge Lifland granted Mr. Kalikow's
motions, finding that the Notices "implicate[d]" the injunctive
provisions of the Plan and Confirmation Order. On June 21, 2004,
Judge Lifland issued a written order restating his oral ruling of
June 10, 2004, and imposed sanctions requiring payment of nearly
$300,000 of legal fees Mr. Kalikow incurred.
The parties against whom sanctions were imposed posted a bond in
the bankruptcy court and appealed to the United States District
Court for the Southern District of New York. The District Court
affirmed Judge Lifland's rulings. An appeal to the U.S. Court of
Appeals for the Second Circuit followed. The Second Circuit
affirmed in part and reversed in part.
PHOENIX WORLDWIDE: Cash Collateral Hearing Scheduled for May 18
---------------------------------------------------------------
The Hon. Robert A. Mark of the U.S. Bankruptcy Court Southern
District of Florida authorized, in a fourth order, Phoenix
Worldwide Industries, Inc., to:
-- use cash securing repayment of loan with C3 Capital
Partners, L.P., provided that the Debtor may exceed the line
item amounts by no more than 10%; and
-- grant adequate protection to C3 Capital.
A hearing on the Debtors' continued use of C3 Capital's cash
collateral will be held on May 18, 2010, at 2:00 p.m. at
Courtroom 1406, U.S. Courthouse, 51 SW 1st Avenue in Miami,
Florida.
The Debtor would also use the cash collateral to pay its ordinary
and necessary business expenses.
As reported in the Troubled Company Reporter on December 17, 2009,
the Debtor related that C3 Capital provided a $500,000 loan
and may assert an interest in cash collateral pursuant to a
security agreement between C3 Capital and the Debtor.
As adequate protection, C3 Capital is granted replacement liens on
all postpetition property that is of the same nature and type of
its prepetition collateral.
The Debtor is represented by:
Jeffrey P. Bast, Esq.
Bast Amron LLP
SunTrust International Center
One Southeast Third Avenue, Suite 1440
Miami Florida 33131
Tel: (305) 379-7904
Fax: (305) 379-7905
E-mail: jbastamron.com
About Phoenix Worldwide Industries, Inc.
Miami, Florida-based Phoenix Worldwide Industries, Inc. --
http://www.phoenixworldwide.com/-- dba Phoenix Worldwide
Industries, Inc.- Forensic Vehicle Division and Phoenix IVS
Division develops surveillance technologies for government and law
enforcement agencies.
The Company filed for Chapter 11 on June 29, 2009 (Bankr. S. D.
Fla. Case No. 09-23201). The Debtor has assets and debts both
ranging from $10 million to $50 million.
PHOENIX WORLDWIDE: Promises to Pay Unsecured Claims in 10 Years
---------------------------------------------------------------
Phoenix Worldwide Industries, Inc., filed with the U.S. Bankruptcy
Court Southern District of Florida a Disclosure Statement
explaining its proposed Plan of Reorganization.
The Debtor will begin soliciting votes on the Plan following
approval of the adequacy of the information in the Disclosure
Statement.
According to the Disclosure Statement, the Plan provides for
secured claims to be paid in full in equal monthly installments
over a five year period with interest accruing at 5% per annum.
General unsecured claims of $1,000 or less ($14,017) will be paid
in full on the effective date of the Plan. General unsecured
claims (of $1,001 or more ($2,405,639) will be paid in equal
annual installments over ten years.
The holders of equity security interests in the Debtor will retain
their equity interests, subject only to dilution by the proposed
equity investment sought by the Debtor.
The funds required for the initial payments to creditors upon the
effective date will come from continued commercial operations and,
if necessary, from either an exit funding facility or an equity
infusion. The Debtor is anticipating significant increases in its
operating revenue based upon recent presentations and proposals
submitted to numerous government agencies. Simultaneously, the
Debtor is exploring equity and debt alternatives for the exit
funding to cover the Debtor's anticipated exit from Chapter 11 in
the event that the increased revenue is delayed for any reason.
A full-text copy of the Disclosure Statement is available for free
at http://bankrupt.com/misc/PHOENIXWORLDWIDE_DS.pdf
Miami, Florida-based Phoenix Worldwide Industries, Inc. --
http://www.phoenixworldwide.com/-- dba Phoenix Worldwide
Industries, Inc.- Forensic Vehicle Division and Phoenix IVS
Division develops surveillance technologies for government and law
enforcement agencies.
The Company filed for Chapter 11 on June 29, 2009 (Bankr. S. D.
Fla. Case No. 09-23201). Jeffrey P. Bast, Esq., at Bast Amron LLP
represents the Debtor in its restructuring efforts. The Debtor
has assets and debts both ranging from $10 million to $50 million.
PHOENIX WORLDWIDE: Wants Solicitation Deadline Moved to July 26
---------------------------------------------------------------
Phoenix Worldwide Industries, Inc., asks the U.S. Bankruptcy Court
Southern District of Florida to extend its exclusive period to
solicit acceptances for the proposed Plan of Reorganization until
July 26, 2010.
The Debtor said that the extension will provide sufficient time
to:
-- secure exit financing or additional equity;
-- prepare the necessary tax returns; and
-- modify the Plan, as necessary.
The Debtor adds that these actions will impact its ability to
confirm its Plan.
The Debtor is represented by:
Bast Amron LLP
SunTrust International Center
One Southeast Third Avenue, Suite 1440
Miami, FL 33131
Tel: (305) 379.7904
Fax: (305) 379.7905
E-mail: jbast@bastamron.com
dquick@bastamron.com
Miami, Florida-based Phoenix Worldwide Industries, Inc. --
http://www.phoenixworldwide.com/-- dba Phoenix Worldwide
Industries, Inc.- Forensic Vehicle Division and Phoenix IVS
Division develops surveillance technologies for government and law
enforcement agencies.
The Company filed for Chapter 11 on June 29, 2009 (Bankr. S. D.
Fla. Case No. 09-23201). The Debtor has assets and debts both
ranging from $10 million to $50 million.
POINT BLANK: Case Summary & 35 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: Point Blank Solutions, Inc.
2101 S.W. 2nd Street
Pompano Beach, FL 33069
Case No.: 10-11255
Debtor-affiliates filing separate Chapter 11 petitions:
Entity Case No.
------ --------
Point Blank Solutions, Inc. 10-_____
Point Blank Body Armor Inc. 10-11257
Protective Apparel Corporation of America 10-_____
PBSS LLC 10-11258
Type of Business: The Debtor is a leading manufacturer and
provider of bullet, fragmentation and stab
resistant apparel and related ballistic
accessories, which are us domestically and
internationally by military, law enforcement,
security and correction personnel, as well
as governent agencies.
Chapter 11 Petition Date: April 14, 2010
Court: U.S. Bankruptcy Court
District of Delaware (Delaware)
Judge: Peter J. Walsh
Debtor's
Bankruptcy Counsel: Laura Davis Jones, Esq.
Timothy P. Cairns, Esq.
Pachulski Stang Ziehl & Jones LLP
919 N. Market Street, 17th Floor
Wilmington, DE 19899-8705
Tel: (302) 652-4100
Fax: (302) 652-4400
E-mail: ljones@pszyj.com
Debtor's
Special
Corporate
Counsel: Olshan Grundman Frome Rosenweig & Wolosky LLP
Debtor's
Chief Restructuring
Officer: T. Scott Avila
CRG Partners Group LLC
Total Assets: $63,986,417
Total Debts: $68,490,383
Point Blank's List of 35 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Lincoln Fabrics Inc. Trade Debt $8,500,346
63 Lakeport Road
St. Catharines
Ontario, Canada
JPS Composite Materials Trade Debt $4,209,204
3585 Atlanta Avenue,
P. O. Box 934242
Hapeville, GA 30354
Mintz Levin Cohn Ferris Trade Debt $798,745
Glovsky & Popeo PC
1 Financial Center
Boston, MA 02111
Sercarz & Riopelle, LLC Legal Judgement $743,523
Baker Botts LLP Trade Debt $692,587
Dupont Advanced Fiber Trade Debt $596,041
Duro Textiles LLC 1 Trade Debt $558,063
McDermott, Will & Emery Trade Debt $300,762
Covington & Burling LLP Trade Debt $286,444
Bryan Cave LLP Trade Debt $236,243
Crowe Horwath LLP Trade Debt $200,765
Richard Kibbe & Orbe LLP Trade Debt $186,110
Cramer LLC Trade Debt $178,702
Bethel Industries Inc. Trade Debt $173,350
Kobre & Kim LLP Trade Debt $158,259
DSM Dyneema B.V. Trade Debt $147,312
JL Kaya Inc. Trade Debt $126,513
SMX Services & Consulting Trade Debt $99,106
Scovill Fasteners Trade Debt $97,002
Loos and Co Inc Trade Debt $92,450
Wachovia Securities Trade Debt $89,148
Ascendo Resources Trade Debt $87,678
Service By Air Trade Debt $87,325
International Textile GRP Trade Debt $82,401
Dallco Industries Inc. Trade Debt $73,249
Leading Tech. Composite, Inc. Trade Debt $69,265
Goodwin Proctor LLP Trade Debt $62,765
Armor Designs, Inc. Trade Debt $62,319
Marcum Rachlin Trade Debt $61,780
PTI Machine Trade Debt $61,000
Margolin, Winer & Evens LLP Trade Debt $59,123
Morris, Nichols, Arsht &
Tunnell LLP Trade Debt $54,233
ITW Waterbury Buckle Co. Trade Debt $53,918
Sergeant Major Associates,
Inc. Trade Debt $48,575
Holland & Knight LLP Trade Debt $47,841
PORTER OCALA: Case Summary & 4 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: Porter Ocala, LLC
14200 SE Highway 441
Summerfield, FL 34491
Bankruptcy Case No.: 10-03064
Chapter 11 Petition Date: April 13, 2010
Court: United States Bankruptcy Court
Middle District of Florida (Jacksonville)
Debtor's Counsel: Thomas C. Little, Esq.
Thomas C. Little, PA
2123 N.E. Coachman Road, Suite A
Clearwater, FL 33765
Tel: (727) 443-5773
Fax: (727) 441-2394
E-mail: janet@thomasclittle.com
Scheduled Assets: $2,211,608
Scheduled Debts: $2,323,024
A list of the Company's 4 largest unsecured creditors is available
for free at http://bankrupt.com/misc/flmb10-03064.pdf
The petition was signed by Sean L. Porter, manager.
PRESIDENTIAL BUILDERS: Case Summary & 5 Largest Unsec Creditors
---------------------------------------------------------------
Debtor: Presidential Builders, LLC
P.O. Box 130
Castle Rock, CO 80104
Bankruptcy Case No.: 10-18461
Chapter 11 Petition Date: April 13, 2010
Court: United States Bankruptcy Court
District of Colorado (Denver)
Judge: Howard R. Tallman
Debtor's Counsel: Guy B Humphries, Esq.
1801 Broadway
Suite 1100
Denver, CO 80202
Tel: (303) 832-0029
Fax: (303) 382-4165
E-mail: guyhumphries@msn.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 5 largest unsecured creditors is
available for free at http://bankrupt.com/misc/cob10-18461.pdf
The petition was signed by William Grebe, manager/member.
PSN USA: Insurer Not Liable Under Liquidating Trustee's Bond
------------------------------------------------------------
WestLaw reports that a liquidating trustee's violations of the
terms of a liquidating trust agreement and/or the debtor's
confirmed Chapter 11 plan, in failing to deposit certain funds in
a segregated, interest-bearing account, in initially providing a
false affidavit in support of an objection to a creditor's proof
of claim, which he later withdrew upon discovering his error, and
in improperly making certain payments without the requisite
bankruptcy court approval, did not rise to the level of willful
and deliberate conduct or gross negligence, as required to support
recovery under a bond guaranteeing the trustee's performance.
Each of these violations was caused by the trustee's inattention
to detail, misinterpretation of the terms of the amended plan,
simple mistake, or reliance on advice of counsel. Moreover, none
of the trustee's violations had resulted in any significant
financial benefit for the trustee. In re PSN USA, Inc., --- B.R.
----, 2010 WL 1169752 (Bankr. S.D. Fla.) (Cristol, J.).
PSN USA, Inc., sought Chapter 11 protection (Bankr. S.D. Fla. Case
No. 02-11913) on March 1, 2002. The Debtor filed its Plan of
Reorganization on Oct. 15, 2002, and its First Amended Plan of
Reorganization on Nov. 21, 2002. The Amended Plan was confirmed
on Dec. 24, 2002, and Daniel Fair was appointed as the Liquidating
Trustee by section I.RR of the Amended Plan.
RADNET MANAGEMENT: Moody's Affirms 'B2' Corporate Family Rating
---------------------------------------------------------------
Moody's Investors Service upgraded the speculative grade liquidity
rating of RadNet Management, Inc., to SGL-2 from SGL-3. The
rating action follows the closing of the company's $585 million
refinancing transaction on April 6, 2010 that Moody's initially
rated on March 15, 2010 and had indicated that the SGL rating
would be upgraded upon the close of the transaction. In addition,
the corporate family and probability of default ratings were
affirmed at B2. The ratings outlook is stable.
Moody's also affirmed the ratings on the new senior secured credit
facilities at Ba3 and on the new senior unsecured notes at Caa1
that were initially assigned on March 15, 2010. The company
increased the size of the new term loan to $285 million from the
initial $275 million and decreased the size of the new 10.375%
senior unsecured notes to $200 million from $210 million. The
size of the revolving credit facility remained as originally
proposed -- at $100 million. Moody's notes that the revolving
credit facility was undrawn at the close of the transaction.
The upgrade of the speculative grade liquidity rating to SGL-2
from SGL-3 incorporates Moody's expectation that the company's
liquidity should remain good over the next 12 to 18 months as
evidenced by positive free cash flow generation and availability
under the company's new $100 million revolving credit facility
that matures on April 6, 2015. The $100 million revolver replaced
the company's old $55 million revolving credit facility. The
company's new credit facilities are governed by interest coverage
ratio initially set at 2 times, leverage ratio initially set at
5.5 times, and capital expenditures limit set at $42.5 million.
Moody's projects the company to have good headroom under the
covenants over the next 12 months.
The stable outlook reflects Moody's projection for continued
organic growth in the 3% range. The stable outlook also takes
into consideration Moody's expectation for the continued
disciplined acquisitions of imaging centers that do not result in
increased leverage from current levels. In addition, the outlook
reflects Moody's expectation that the company can maintain its
current liquidity profile.
These ratings actions were taken:
* Corporate family rating, affirmed at B2;
* Probability of default rating, affirmed at B2;
* $100 million senior secured revolving credit facility, due April
6, 2015, affirmed at Ba3. LGD rate changed to LGD2, 28% from
LGD2, 26%;
* $285 million senior secured term loan, due April 6, 2016,
affirmed at Ba3. LGD rate changed to LGD2, 28% from LGD2, 26%;
* $200 million 10.375% senior unsecured notes, due April 1, 2018,
affirmed at Caa1. LGD rate changed to LGD5, 83% from LGD5, 82%;
* Speculative grade liquidity rating, upgraded to SGL-2 from SGL-
3.
The last rating action was on March 15, 2010, when Moody's
assigned ratings to the proposed credit facilities and senior
unsecured notes as well as affirmed existing ratings.
RadNet's ratings were assigned by evaluating factors Moody's
believe are relevant to the credit profile of the issuer, such as
i) the business risk and competitive position of the company
versus others within its industry, ii) the capital structure and
financial risk of the company, iii) the projected performance of
the company over the near to intermediate term, and iv)
management's track record of tolerance for risk. These attributes
were compared against other issuers both within and outside of
RadNet's core industry and RadNet's ratings are believed to be
comparable to those other issuers of similar credit risk.
RadNet, headquartered in Los Angeles, California, provides
diagnostic imaging services through a network of 180 diagnostic
imaging facilities located in seven states, primarily in
California, Maryland, and New York. RadNet generated revenues of
$524 million in 2009.
REDPRAIRIE CORP: S&P Raises Corporate Credit Rating to 'B+'
-----------------------------------------------------------
Standard & Poor's Ratings Services said it raised its corporate
credit rating on RedPrairie Corp. to 'B+' from 'B', and removed
the rating from CreditWatch, where it was placed with developing
implications on March 10, 2010.
A fund affiliated with New Mountain Capital, LLC, has recently
acquired the company. As part of the transaction, the company
entered into a new $240 million term loan maturing 2016, which it
used to refinance its prior debt. On March 10, 2010, S&P assigned
a 'B+' rating to the new term loan and a 'B+' rating to the
company's new $30 million revolver, maturing 2015. S&P also
assigned a '3' recovery rating to both debt issues.
"The higher corporate credit rating is a result of greater
covenant headroom afforded by the new credit agreement, as well as
recent positive operating trends," said Standard & Poor's credit
analyst Jennifer Pepper. The transaction very modestly levers up
an improved balance sheet.
REGENT COMMUNICATIONS: Resilient Appeals Confirmation Order
-----------------------------------------------------------
netDockets reports that Resilient Capital Management has filed an
amended notice of appeal in the Regent Communications, Inc.
bankruptcy case. Resilient is disputing the Bankruptcy Court's
order confirming Regent's plan of reorganization. Resilient is
also appealing the order denying appointment of an official equity
committee.
netDockets notes that Resilient, in its motion filed in March,
indicated it holds 6.6% of the common stock of Regent
Communications. Resilient has objected to the Debtors' plan.
Under the proposed plan, general unsecured claims would be paid in
full but existing equity would be canceled. Existing equity
holders would receive their pro rata share of $5.5 million (almost
13 cents per share), which is characterized as a "gift" because
the Debtors assert that existing equity is out of the money. The
Debtors' assertion regarding the value of existing equity is
supported by a valuation prepared by Oppenheimer & Co. Inc.
According to netDockets, Resilient challenges the conclusions in
Oppenheimer's report. Specifically, Resilient claims that
Oppenheimer's valuation is "artificially depressed" due to several
aspects of Oppenheimer's valuation methodology.
netDockets says Resilient Capital's proposed modifications to
Oppenheimer's methodology would result in a net asset value of $36
million (or approximately 83 cents per share). Resilient also
performed a discounted cash flow valuation, which it asserts
results in $57 million of net asset value available to common
shareholders (or $1.32 per share). The DCF valuation is based,
according to the motion, "on taxing unlevered income at a 40% tax
rate and discounted cash flows at an 11% rate, a discount rate
utilized by Oppenheimer in its own analysis." All calculations of
shareholder value assume $206.7 million in pre-petition
liabilities and $3.9 million in restructuring costs.
As a result, Resilient claims that "there is a substantial
likelihood that there is sufficient equity value in the Debtors to
distribute to the common equity holders." Appointment of an
equity committee is necessary, according to the motion, because
common shareholders "will not be adequately represented in these
cases without the appointment of an official committee."
About Regent Communications
Headquartered in Cincinnati, Ohio, Regent Communications, Inc., is
a radio broadcasting company that acquires, develops, and operates
radio stations. There are 47 subsidiary entities with 62 radio
stations in markets in Colorado, Illinois, Indiana, Kentucky,
Louisiana, Michigan, Minnesota, New York, and Texas.
The Company filed for Chapter 11 bankruptcy protection on March 1,
2010 (Bankr. D. Del. Case No. 10-10632) with an agreement in
principal with its lenders for a consensual financial
restructuring that will result in the elimination of $87 million
of the Company's debt. On April 14, the Bankruptcy Court has
confirmed the Company's Plan of Reorganization. Regent expects
its Plan to become effective by April 27.
The plan will allow Regent to emerge from Chapter 11, after only
60 days. All outstanding shares of the Company's common stock will
be extinguished on the Plan's effective date. Senior debtholders
will convert their holdings into a new series of equity in the
Company, while current public equity shareholders will receive by
early to mid-May 12.8 cents for each share they own.
Regent Communications is advised by Oppenheimer & Co., Inc., in
connection with its financial restructuring. Latham & Watkins LLP
and Young Conaway Stargatt & Taylor, serve as bankruptcy counsel.
As of January 31, 2010, the Company had $166,506,000 in assets and
$211,282,000 in liabilities.
RICHARD DERRICK: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------------
Joint Debtors: Richard Derrick
Bettyann Derrick
1309 European Drive
Henderson, NV 89052
Bankruptcy Case No.: 10-16410
Chapter 11 Petition Date: April 13, 2010
Court: U.S. Bankruptcy Court
District of Nevada (Las Vegas)
Judge: Linda B. Riegle
Debtor's Counsel: Samuel A. Schwartz, Esq.
626 S Third Street
Las Vegas, NV 89101
Tel: (702) 385-5544
Fax: (702) 385-2741
E-mail: sam@schwartzlawyers.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
According to the schedules, the Joint Debtors say that assets
total $1,186,309.14 while debts total $1,563,165.00.
A copy of the Joint Debtors' list of 20 largest unsecured
creditors filed together with the petition is available for free
at http://bankrupt.com/misc/nvb10-16410.pdf
The petition was signed by the Joint Debtors.
RIO BRAVO: Case Summary & 2 Largest Unsecured Creditors
-------------------------------------------------------
Debtor: Rio Bravo Land Company LLC
1280 W. 64th Avenue
Denver, CO 80221-2434
Bankruptcy Case No.: 10-18418
Chapter 11 Petition Date: April 13, 2010
Court: United States Bankruptcy Court
District of Colorado (Denver)
Judge: Michael E. Romero
Debtor's Counsel: Jeffrey A. Weinman, Esq.
Weinman & Associates, P.C.
730 17th Street Suite 240
Denver, CO 80202
Tel: (303) 572-1010
Fax: (303) 572-1011
E-mail: jweinman@epitrustee.com
Scheduled Assets: $2,539,400
Scheduled Debts: $2,480,414
A list of the Company's 2 largest unsecured creditors is available
for free at http://bankrupt.com/misc/cob10-18418.pdf
The petition was signed by Jeffrey Digby, managing member.
Debtor-affiliates that filed separate Chapter 11 petitions:
Petition
Debtor Case No. Date
------ -------- ----
Voyager Express, Inc. 09-34883 11/20/09
Mountain Motors Management, Inc. 09-34887 11/20/09
ROCK & REPUBLIC: US Trustee Appoints 7 Members to Creditors Panel
-----------------------------------------------------------------
Diana G. Adams, the U.S. Trustee for Region 2, appoints seven
members to the Official Committee of Unsecured Creditors in Rock &
Republic Enterprises, et al.'s Chapter 11 cases.
The Committee members include:
1) Advance Magazines Publishers, Inc.
Attn: John Van de Merlew
Executive Director, Credit
4 Times Square
New York, NY 10036
Phone: (212) 286-8375
2) New Pacific Rodeo, LLC
160 North Canon Drive
Beverly Hills, CA 90210
Attn: Arnold Rosenstein
Managing Member
Phone: (310) 273-1111
3) Tavex Algodonera
Attn: Ruven Bernat - Enguidonos
Chief Financial Officer
C/Gabiria No. 4
20570 Bergara (Guipuzcoa)
Spain
Phone: 00-34-943765940
4) Sanko Dis Ticaret Anonim Sirketi
Attn: Cengiz Konukoglu
c/o Robert L. Toms, Jr., Esq.
Gibson Rivera & Toms LLP
327 S. Lake Avenue, # 105
Pasadena, CA 91101
Phone: (626) 405-1122
5) Top Jeans Sewing Company
Attn: Boshra Hanna
1223 E. 58th Place
Los Angeles, CA 90001
Phone: (213) 300-3610
6) TagTrends, Inc.
Attn: Rob Hart
President
970 S. Via Rodeo
Placentia, CA 92870
Phone: (714) 524-9000
7) Plains Cotton Cooperative Association
Attn: Sam Hill
Vice President Finance and Treasurer
3301 East 50th Street
Lubbock, TX 79404
Phone: (806) 763-8011
Based in Culver City, Rock & Republic is a fashion brand known for
its pricey designer denim and other apparel.
New York-based Rock & Republic Enterprises, Inc., filed for
Chapter 11 bankruptcy protection on April 1, 2010 (Bankr. S.D.N.Y.
Case No. 10-11728). Alex Spizz, Esq., and Arthur Goldstein, Esq.,
at Todtman, Nachamie, Spizz & Johns, P.C., assist the Company in
its restructuring effort. Manderson, Schaefer & McKinlay, LLP, is
the Company's special corporate counsel. The Company listed
$50,000,000 to $100,000,000 in assets and $10,000,000 to
$50,000,000 in liabilities.
The Company's affiliate, Triple R, Inc., filed a separate Chapter
11 petition on April 1, 2010 (Case No. 10-11729).
ROCK & REPUBLIC: Court Moves Schedules Filing Deadline to April 30
------------------------------------------------------------------
The Hon. Arthur J. Gonzalez of the U.S. Bankruptcy Court for the
Southern District of New York, at the behest of Rock & Republic
Enterprises, Inc., et al., extended by 15 days until April 30,
2010, the deadline for the filing of schedules of assets and
liabilities and schedules and statements of financial affairs.
The Schedules and Statements were initially due to be filed on or
before April 15, 2010. The Debtors say that although they are
working diligently on the preparation of the Schedules and
Statements, in view of the amount of work entailed in the project
and the competing demands upon the Debtors' officers in connection
with business operations during the initial post-petition period,
the Debtors will not be able to complete their Schedules and
Statements properly and accurately within the previous 14-day
deadline. To prepare the Schedules and Statements, the Debtors
must gather information from books, records, and documents
relating to numerous transactions.
Based in Culver City, Rock & Republic is a fashion brand known for
its pricey designer denim and other apparel.
New York-based Rock & Republic Enterprises, Inc., filed for
Chapter 11 bankruptcy protection on April 1, 2010 (Bankr. S.D.N.Y.
Case No. 10-11728). Alex Spizz, Esq., and Arthur Goldstein, Esq.,
at Todtman, Nachamie, Spizz & Johns, P.C., assist the Company in
its restructuring effort. Manderson, Schaefer & McKinlay, LLP, is
the Company's special corporate counsel. The Company listed
$50,000,000 to $100,000,000 in assets and $10,000,000 to
$50,000,000 in liabilities.
The Company's affiliate, Triple R, Inc., filed a separate Chapter
11 petition on April 1, 2010 (Case No. 10-11729).
RUTH DELGADO: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------
Joint Debtor: Ruth Delgado
aka Ruth Colmenar Delgado
dba Maple Residential Care Inc.
Wally Delgado
aka Wally A. Delgado
24347 Sunnycrest Ct.
Diamond Bar, CA 91765
Bankruptcy Case No.: 10-24239
Chapter 11 Petition Date: April 13, 2010
Court: United States Bankruptcy Court
Central District Of California (Los Angeles)
Judge: Sheri Bluebond
Debtor's Counsel: Steven P. Chang, Esq.
Law Offices of Steven P. Chang
801 S. Garfield Ave Suite 338
Alhambra, C 91801-4486
Tel: (626) 281-1232
Fax: (626) 281-2919
E-mail: schang@spclawoffice.com
Scheduled Assets: $1,679,568
Scheduled Debts: $2,687,779
A list of the Company's 20 largest unsecured creditors is
available for free at http://bankrupt.com/misc/cacb10-24239.pdf
The petition was signed by Ruth Delgado and Wally Delgado.
SAND BOX: Voluntary Chapter 11 Case Summary
-------------------------------------------
Debtor: Sand Box II Partners, L.P.
759 N. Mountain Avenue
Upland, CA 91786
Bankruptcy Case No.: 6-10-bk
Chapter 11 Petition Date: April 14, 2010
Court: United States Bankruptcy Court
Central District Of California (Riverside)
Judge: Deborah J. Saltzman
Debtor's Counsel: Stephen R Wade, Esq.
The Law Offices of Stephen R Wade
400 N Mountain Ave Ste 214B
Upland, CA 91786
Tel: (909) 985-6500
Fax: (909) 985-2865
E-mail: dp@srwadelaw.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The petition was signed by Gilbert Rodriquez, Jr., CFO
SHARON MOKHTARI: Case Summary & 14 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: Sharon Mokhtari
11910 Stoney Creek Rd
Potomac, MD 20854
Bankruptcy Case No.: 10-18083
Chapter 11 Petition Date: April 13, 2010
Court: United States Bankruptcy Court
District of Maryland (Greenbelt)
Judge: Wendelin I. Lipp
Debtor's Counsel: Richard B. Rosenblatt, Esq.
The Law Offices of Richard B. Rosenblatt
30 Courthouse Square Suite 302
Rockville, MD 20850
Tel: (301) 838-0098
E-mail: rrosenblatt@rosenblattlaw.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 14 largest unsecured creditors is
available for free at http://bankrupt.com/misc/mdb10-18083.pdf
The petition was signed by Sharon Mokhtari.
SPON-DIVITS: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: Spon-divits, Inc.
1219 Virginia Avenue
Atlanta, GA 30344-5211
Bankruptcy Case No.: 10-71106
Chapter 11 Petition Date: April 13, 2010
Court: United States Bankruptcy Court
Northern District of Georgia (Atlanta)
Judge: Mary Grace Diehl
Debtor's Counsel: Herbert C. Broadfoot, II, Esq.
Ragsdale, Beals, Seigler, et al.
2400 International Tower
229 Peachtree Street, N.E.
Atlanta, GA 30303
Tel: (404) 588-0500
Fax: (404) 523-6714
E-mail: broadfoot@rbspg.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $500,001 to $1,000,000
A list of the Company's 20 largest unsecured creditors is
available for free at http://bankrupt.com/misc/ganb10-71106.pdf
The petition was signed by Glenn Gagne, chief financial officer.
SPX CORPORATION: Fitch Affirms 'BB+' Issuer Default Rating
----------------------------------------------------------
Fitch Ratings has affirmed SPX Corporation's ratings:
-- Issuer Default Rating at 'BB+';
-- Senior secured bank facilities at 'BB+';
-- Senior unsecured debt at 'BB+'.
The Rating Outlook is Stable. The ratings cover approximately
$1.3 billion of outstanding debt.
SPX's ratings are supported by the company's financial flexibility
and consistent execution of its operating and financial
strategies. SPX generated strong free cash flow in 2009 despite a
17% reduction in revenue related to the recession. Much of the
company's revenue is in mid-to-late cycle businesses, however, and
financial results could weaken further in 2010 before the
company's end-markets begin to improve. At Dec. 31, 2009
debt/EBITDA increased to nearly 2.4 times (x), as calculated by
Fitch, compared to 1.9x at the beginning of the year. Debt/EBITDA
would be closer to 2.2x when adjusted to include joint venture
earnings. Fitch estimates the adjusted measure could increase to
around 2.5x during 2010. This level reflects the anticipated
impact of lower sales and earnings which would more than offset
ongoing debt amortization.
SPX targets gross debt/EBITDA of 1.5x to 2.0x as defined in its
bank agreement. The ratio, which stood at 2.1x at the end of
2009, includes certain adjustments for non-recurring or non-cash
charges and is understated when compared to Fitch's calculation.
Fitch views SPX's leverage targets as representing solid levels
for the rating category. They typically provide flexibility to
make acquisitions and or incur other discretionary spending while
limiting the impact of such transactions on the ratings. In the
near term, however, lower free cash flow anticipated in 2010 could
limit SPX's financial capacity until an eventual recovery in its
energy, process equipment and automotive tool and diagnostics
markets support a return to better operating performance later in
2010 or in 2011.
The company's ability to rebuild its credit metrics will depend on
a sustained economic recovery and sufficient free cash flow to
meet scheduled debt payments. Concerns about near-term pressure
on SPX's metrics are mitigated by the company's commitment to its
leverage target and its ability to generate positive free cash
flow even at the bottom of its business cycle. Free cash flow
after dividends in 2010 could be $110 million-$150 million, enough
to meet near-term debt maturities and to fund modest acquisitions.
This level is substantially lower than in 2009 when free cash flow
exceeded expectations due to taxes, the timing of accounts
receivables collections late in 2009, and other items.
SPX's operating results reflect the global recession that hurt
demand in most of its markets, especially in industrial,
automotive and process equipment sectors. SPX's ability to
operate profitably at lower volumes is supported by expected
benefits from $73 million of restructuring in 2009 and additional
restructuring in 2010 estimated at $35 million. Also, certain
businesses have been stable or are already beginning to improve
including some early cycle businesses in the Flow and Test
segments. The Thermal segment could see revenue rise by mid-
single digits due to the acquisition of Yuba in 2009 and execution
on long-term contracts for large power projects in South Africa.
Rating concerns include the potential for an increase in leverage
related to the company's discretionary spending for acquisitions
and share repurchases. SPX spent $129 million for Yuba in 2009
and has made two acquisitions in 2010. Acquisition spending could
increase given SPX's view that pricing for such transactions
appears to be improving. A large acquisition is possible if
unlikely in the near term, but Fitch anticipates that SPX would
consider using equity to maintain its long term leverage policy.
Another rating concern is net pension liabilities which are higher
than in the past due to market conditions. As a result, required
contributions could potentially increase. SPX plans to contribute
$30 million to its pension plans in 2010 but has the capacity to
make larger contributions if necessary.
Liquidity at Dec. 31, 2009 included cash balances of $523 million,
much of which is overseas, and approximately $410 million of net
availability under secured bank credit facilities that mature in
2012. Liquidity was offset by $150 million of debt due within one
year. Aside from a $600 million bank term loan that amortizes
through 2012, most of SPX's other debt consists of $500 million of
notes due in 2014.
SAINT VINCENTS: Returns to Chapter 11, Closing This Time
--------------------------------------------------------
St. Vincent Catholic Medical Centers returned to bankruptcy court
by filing another Chapter 11 petition April 14 in New York (Bankr.
S.D.N.Y. Case No. 10-11963). The new petition listed assets of
$348 million against debt totaling $1.09 billion.
According to Bloomberg News, although the hospitals emerged from
the prior reorganization in July 2007 with a Chapter 11 plan said
to have a "a realistic chance" of paying all creditors in full,
the bankruptcy left the medical center with more than $1 billion
in debt. The new filing occurred after a $64 million operating
loss in 2009 and the last potential buyer terminated discussions
for taking over the flagship hospital.
According to Bloomberg, the hospital's chief restructuring officer
said in a court filing that there are seven non-binding letters of
intent to sell the non-hospital operation. The main hospital,
composed of 941,000 square feet in 10 buildings, will halt
operations in an "orderly wind down."
About Saint Vincent Catholic Medical Centers
Saint Vincent Catholic Medical Centers -- http://www.svcmc.org/--
is anchored by St. Vincent's Hospital Manhattan, an academic
medical center located in Greenwich Village and the only emergency
room on the Westside of Manhattan from Midtown to Tribeca, St.
Vincent's Westchester, a behavioral health hospital in Westchester
County, and continuing care services that include two skilled
nursing facilities in Brooklyn, another on Staten Island, a
hospice, and a home health agency serving the Metropolitan New
York area. Its behavioral health services also provide supportive
housing programs for people with mental illness throughout the
Metropolitan area. Saint Vincent's is the designated provider for
the New York and New Jersey region of the US Family Health Plan
sponsored by the US Department of Defense.
Saint Vincent's serves as the academic medical center of New York
Medical College in New York City. The healthcare organization is
sponsored by the Roman Catholic Bishop of Brooklyn and the
president of the Sisters of Charity of New York.
Saint Vincent Catholic Medical Centers of New York and six of its
affiliates filed for Chapter 11 protection on July 5, 2005 (Bankr.
S.D.N.Y. Case No. 05-14945 through 05-14951). Gary Ravert, Esq.,
and Stephen B. Selbst, Esq., at McDermott Will & Emery, LLP, filed
the Debtors' Chapter 11 cases. On September 12, 2005, John J.
Rapisardi, Esq., at Weil, Gotshal & Manges LLP took over
representing the Debtors in their restructuring efforts. Martin
G. Bunin, Esq., at Thelen Reid & Priest LLP, represented the
Official Committee of Unsecured Creditors. As of April 30, 2005,
the Debtors listed $972 million in total assets and $1 billion in
total debts. The Court confirmed the Debtors' Chapter 11 plan on
July 27, 2007.
SAINT VINCENTS: Case Summary & 30 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: Saint Vincents Catholic Medical Centers of New York
dba Saint Vincent Catholic Medical Centers
dba SVCMC Home Health Agency
153 West 11th Street
New York, NY 10011
Case No.: 10-11963
Debtor-affiliates filing separate Chapter 11 petitions:
Entity Case No.
------ --------
555 6th Avenue Apartment Operating Corporation 10-_____
Bishop Francis J. Mugavero Center for
Geriatric Care, Inc. 10-11965
Chait Housing Development Corporation 10-11966
Fort Place Housing Corporation 10-_____
SVCMC Professional Registry, Inc. 10-_____
Pax Christi Hospice, Inc. 10-_____
Sisters of Charity Health Care System
Nursing Home, Inc. dba St. Elizabeth
Ann's Health Care & Rehabilitation Center 10-_____
St. Jerome's Health Services Corporation
dba Holy Family Home 10-_____
Type of Business: Saint Vincent's Catholic Medical Centers
of New York, the healthcare provider in
New York State, operates hospitals, health
centers, nursing homes and a home health
agency. The hospital group consists of
seven hospitals located throughout Brooklyn,
Queens, Manhattan, and Staten Island, along
with four nursing homes and a home health
care agency.
See: http://www.svcmc.org/
Chapter 11 Petition Date: April 14, 2010
Court: U.S. Bankruptcy Court
Southern District of New York (Manhattan)
Debtor's Counsels: Adam C. Rogoff, Esq.
Kenneth H. Eckstein, Esq.
Kramer Levin Naftalis & Frankel LLP
1177 Avenue of the Americas
New York, NY 10036
Tel: (212) 715-9285
Fax: (212) 715-8000
E-mail: arogoff@kramerlevin.com
E-mail: keckstein@kramerlevin.com
Debtor's Special
Counsels: Garfunkel Wild, P.C.
Debtor's
Crisis Management
Team: Grant Thornton LLP
Debtor's
Chief Restructuring
Officer: Mark E. Toney
Estimated Assets: $100,000,001 to $500,000,000
Estimated Debts: More than $1 billion
Saint Vincents' List of 30 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Pension Benefit Guaranty
Corporation Government $180,000,000.00
Office of the General Counsel
Suite 340
1200 K Street, N.W.
Washington, DC 20005-4026
Michael E. Katzenstein,
MedMal Trust Monitor for
MedMal Trust-BQ;
MedMal Trust-MW; and
MedMal Trust- SI
5956 Cherry Lane, Suite 1000
Dallas, TX 75225
c/o:
Cooley Godward Kronish LLP
The Grace Building
1114 Avenue of the Americas
New York, NY 10036 Lien $113,000,000.00
Aptium Oncology Trade $6,453,089.00
8201 Beverly Boulevard
Los Angeles, CA 90048-4505
Office of the State
Comptroller Government $4,017,038.34
Grove Pointe Urban Renewal,
LLC Landlord $4,653,770.00
Local 1199 Benefit Fund Union $3,696,513.26
Nursing Personnel HomeCare Trade $2,744,816.45
BestCare Inc. Trade $2,606,170.91
Siemens Medical Solutions USA Trade $2,536,875.63
Access Nursing Services Trade $1,928,347.79
Cardinal Health
Medical Products and Services Trade $1,881,718.56
Special Touch Home Care
Service Trade $1,879,940.90
Verizon Utilities $1,851,899.00
Command Security Corp. Trade $1,174,326.53
Local 1199 Pension Fund Union $1,043,642.50
Boston Scientific SCIMED Trade $927,280.10
Renal Research Institute LLC Trade $905,325.00
Con Edison Utilities $887,892.28
NYSNA Benefits Union $783,792.43
I &Y Senior Care Trade $734,213.47
Hope Home Care Inc. Trade $720,213.64
450 Partners LLC Trade $672,190.95
Utopia Home Care Inc. Trade $650,969.57
FedCap Home Care Trade $641,074.20
SelfHelp Community Services Trade $591,543.96
New York Dialysis Services Trade $570,825.00
Allen Health Care Services Trade $569,342.09
Biomet Inc. Trade $526,376.93
Sodexo Operations LLC Trade $525,233.75
Aides at Home, Inc. Trade $481,202.61
STANDARD STEEL: Moody's Assigns 'Caa1' Rating on $135 Mil. Notes
----------------------------------------------------------------
Moody's Investors Service has assigned Standard Steel LLC's
proposed $135 million senior secured notes due 2015 a Caa1 rating.
The company's existing Caa1 corporate family and probability of
default ratings have been affirmed. After close of both the
senior secured notes transaction and the planned $20 million
asset-based, three-year revolving credit facility, Moody's expects
to change the rating outlook to stable from negative, reflecting
an improved liquidity profile.
Proceeds of the Standard Steel's note issuance will refinance
existing first and second lien term loans, terminate an interest
rate swap contract and cover transaction fees/expenses. The
$135 million notes will be secured by a first lien on most of the
company's non-current assets and a second lien on the revolver
collateral. The revolver will be secured by a first lien on most
of the company's current assets and a second lien on the note
collateral.
The Caa1 corporate family rating reflects weakness in the railcar
build market that will likely cause unprofitability and slim
interest coverage metrics at least through 2011. Over the longer-
term, need for railcar replacement wheel manufacturing capacity
and the duopoly railcar wheel sector structure should support
reasonably consistent wheel aftermarket demand. However,
replacement wheel demand alone is not expected to help Standard
Steel operate at a profitable level. Regarding axles, demand will
be more heavily influenced by the, economically sensitive, new
railcar build market. Until new railcar manufacturing levels
significantly rise, Standard Steel's shipments should remain well
below capacity. Emergence of a third U.S. railcar axle
manufacturer in 2009 could negatively influence future axle
prices. The rating also considers significant customer
concentration, and small revenue base against a significant
proportion of 2010 planned manufacturing capacity covered under
contracts, and existence of raw material pricing surcharge
provisions.
The rating outlook stabilization anticipated would reflect an
improved liquidity profile that should sustain the Caa1 rating.
The liquidity profile would improve after both the notes and the
planned revolver close. Currently, Standard Steel faces a June
2011 revolver expiry, a $105 million June 2012 term loan maturity,
and high potential for a 2010 financial ratio covenant breach.
With adequate revolver collateralization expected, a financial
ratio test that, as defined, would only activate when borrowing
availability declines below a set threshold, and lack of initial
draw expected, credit line accessibility should help the company
weather the weak demand period underway. The new secured notes
will not feature a financial maintenance test. Debt maturities in
the planned capital structure would be minimal for the next few
years but the new notes would feature an excess cash flow sweep
mechanism.
Ratings are:
* $135 million senior secured notes due 2015 assigned Caa1 LGD 4,
53%
* $20 million first lien revolving credit facility due 2011 Caa1
LGD 3, 44%, will be withdrawn at close
* $100 million first lien term loan due 2012 Caa1 LGD 3, 44%, will
be withdrawn at close
* $20 million first lien delayed draw term loan due 2012 Caa1 LGD
3, 44%, will be withdrawn at close
* $25 million second lien term loan due 2013 Caa3 LGD 6, 92%, will
be withdrawn at close
The rating assigned is subject to review of final documentation.
The last rating action occurred on February 24, 2010, when the
corporate family rating was downgraded to Caa1 from B3.
Standard Steel, LLC, based in Burnham, PA, manufactures forged
wheels and axles used in freight and passenger rail cars and
locomotives. The company had last twelve months ended September
2009 revenues of approximately $186 million.
STANDARD STEEL: S&P Puts 'B-' Corp. Rating on CreditWatch Positive
------------------------------------------------------------------
Standard & Poor's Ratings Services placed its 'B-' corporate
credit rating on Pittsburg-based Standard Steel LLC on CreditWatch
with positive implications, indicating that S&P would probably
raise the rating to 'B' if the company successfully issues the
senior secured notes under the preliminary terms and conditions
that S&P has reviewed. At the same time, S&P assigned a 'B'
issue-level rating to the company's proposed new $135 million
senior secured notes due 2015. The recovery rating on this debt
is '3', indicating S&P's expectation of meaningful (50% to 70%)
recovery in a payment default scenario. In addition, S&P expects
that S&P will affirm the 'B' issue-level rating on the new notes
if and when S&P raises the corporate credit rating to 'B'.
S&P bases the CreditWatch placement on the company's proposed
$135 million senior secured notes issuance due 2015 and proposed
$20 million asset-based loan revolving credit facility due 2013.
S&P expects the company to use the proceeds of the new notes to
repay in full its existing term loans, which currently have
limited covenant headroom. S&P believes the pending refinancing,
if successful, would improve Standard Steel's liquidity position
and debt maturity profile. S&P expects to raise the corporate
credit rating by one notch to 'B' and affirm the 'B' issue-level
rating on the new $135 million second-lien notes following the
completed refinancing.
"The CreditWatch placement reflects S&P's view that the pending
refinancing, if successful, would improve Standard Steel's
liquidity position and debt maturity profile, leading us to raise
the corporate credit rating by one notch to 'B'," said Standard &
Poor's credit analyst Robyn Shapiro. S&P expects to resolve the
CreditWatch placement on the company's completion of its pending
notes issue and repayment of the existing term loans. "S&P could
remove the ratings from CreditWatch if the proposed debt issue is
delayed or cancelled and financial covenant compliance remains a
concern," she continued.
SUNESIS PHARMACEUTICALS: Caxton Holds 6.8% of Common Stock
----------------------------------------------------------
Caxton Advantage Life Sciences Fund, L.P.; Caxton Advantage
Venture Partners, L.P.; Advantage Life Sciences Partners, LLC;
CHHA LLC; Caxton Health Holdings LLC; Eric W. Roberts; Rachel
Leheny; Caxton Associates LP; and Bruce S. Kovner disclosed that
they may be deemed to beneficially own 2,498,740 shares or roughly
6.8% of the common stock of Sunesis Pharmaceuticals, Inc.
Mr. Kovner is the Chairman of Caxton Associates and the sole
shareholder of Caxton Corporation, the general partner of Caxton
Associates.
About Sunesis Pharmaceuticals
South San Francisco, Calif.-based Sunesis Pharmaceuticals, Inc.
(NASDAQ: SNSS) -- http://www.sunesis.com/-- is a
biopharmaceutical company focused on the development and
commercialization of new oncology therapeutics for the treatment
of hematologic and solid tumor cancers.
The Company's balance sheet as of December 31, 2009, showed
$5.2 million in assets, $3.1 million of debts, and $2.1 million of
stockholders' equity.
Ernst & Young, LLP, in Palo Alto, Calif., expressed substantial
doubt about the Company's ability to continue as a going concern.
The independent auditors noted that of the Company's recurring
losses from operations.
SUNESIS PHARMACEUTICALS: Venrock Discloses Equity Stake
-------------------------------------------------------
Venrock Associates and Venrock Associates II, L.P., disclosed that
they beneficially own 819,590 shares of Sunesis Pharmaceuticals,
Inc. common stock issuable upon exercise of warrants exercisable
within 60 days of December 31, 2009, or 2.2% of the outstanding
shares of common stock. Venrock II owns 1,179,400 shares of
common stock issuable upon exercise of warrants exercisable within
60 days of December 31, 2009, or 3.1% of the outstanding shares of
common stock.
About Sunesis Pharmaceuticals
South San Francisco, Calif.-based Sunesis Pharmaceuticals, Inc.
(NASDAQ: SNSS) -- http://www.sunesis.com/-- is a
biopharmaceutical company focused on the development and
commercialization of new oncology therapeutics for the treatment
of hematologic and solid tumor cancers.
The Company's balance sheet as of December 31, 2009, showed
$5.2 million in assets, $3.1 million of debts, and $2.1 million of
stockholders' equity.
Ernst & Young, LLP, in Palo Alto, Calif., expressed substantial
doubt about the Company's ability to continue as a going concern.
The independent auditors noted that of the Company's recurring
losses from operations.
SUNESIS PHARMACEUTICALS: Vision Fund Holds 2.7% of Common Stock
---------------------------------------------------------------
Vision Opportunity Master Fund, Ltd., a Cayman Islands company;
Vision Capital Advisors, LLC; and Adam Benowitz, the Managing
Member, disclosed holding 999,500 shares or roughly 2.7% of the
common stock of Sunesis Pharmaceuticals, Inc.
As of December 31, 2009, the Master Fund had the ability to
acquire 999,500 shares of Common Stock within 60 days through the
exercise of derivative securities, and thus beneficially owned
999,500 shares of Common Stock, representing 2.7% of all of the
outstanding shares of Common Stock.
The Master Fund is a private investment vehicle formed for the
purpose of investing and trading in a wide variety of securities
and financial instruments. The Master Fund directly owns all of
the shares reported in this Statement. Mr. Benowitz and the
Investment Manager may be deemed to share with the Master Fund
voting and dispositive power with respect to such shares.
About Sunesis Pharmaceuticals
South San Francisco, Calif.-based Sunesis Pharmaceuticals, Inc.
(NASDAQ: SNSS) -- http://www.sunesis.com/-- is a
biopharmaceutical company focused on the development and
commercialization of new oncology therapeutics for the treatment
of hematologic and solid tumor cancers.
The Company's balance sheet as of December 31, 2009, showed
$5.2 million in assets, $3.1 million of debts, and $2.1 million of
stockholders' equity.
Ernst & Young, LLP, in Palo Alto, Calif., expressed substantial
doubt about the Company's ability to continue as a going concern.
The independent auditors noted that of the Company's recurring
losses from operations.
SUNWEST MANAGEMENT: Marcus & Millichap Sells Tudor Heights
----------------------------------------------------------
Marcus & Millichap Real Estate Investment Services, one of the
nation's largest real estate investment services firm, has
arranged the sale of Tudor Heights, a 64-unit assisted living
facility in the Baltimore suburb of Pikesville, Maryland. The
purchase price of the assisted living facility was not disclosed.
Jacob Gehl, a Vice President of Senior Housing Investments in the
Chicago Downtown office of Marcus & Millichap, and Ben Firestone,
a Senior Housing Investment Associate, handled the transaction.
The buyer was Walton Street Capital, L.L.C., a private equity real
estate investment firm based in Chicago. Walton Street formed a
joint venture with a Senior Lifestyle Corporation, also from
Chicago, who will manage the facility for the group. The seller
was an entity affiliated with Sunwest Management, Inc., a company
that has been operating under an SEC receivership in bankruptcy
since January when the former CEO was accused of conducting a
massive fraud. The lender DNB National Bank from South Dakota
eventually foreclosed on the property after it was released from
the receivership allowing the title to the property to transfer
back to the lender.
The property was approximately 60% occupied at the time of sale.
Tudor Heights is located at 7218 Park Heights Avenue, and is a
39,579-square foot facility. The transaction was coordinated
under the supervision of the Marcus & Millichap's Maryland Broker
of Record Payton Banks. The buyer intends to spend significant
dollars upgrading and modernizing the facility. "The biggest
winners in this transaction are the residents," said Jacob Gehl,
"the drama and uncertainty surrounding the Sunwest bankruptcy is
over for these residents. The new ownership group has an
excellent reputation for quality of care, and the facility will
become state of art once the renovations are complete."
The Gehl, Firestone & Dole Group of Marcus & Millichap is a team
of real estate investment professionals focused on senior housing
properties throughout the country with an emphasis on exclusive
seller representation. We provide our clients with direct access
to the largest pool of qualified institutional and private
investors. With more than $800 million dollars in investment
transactions completed, our group continues to exceed clients'
expectations and deliver the consistent results that have made us
an industry leader.
About Sunwest Management
Founded in Oregon in 1991, Sunwest Management --
http://www.sunwestmanagement.com/-- remains one of the largest
private senior living providers in the country and is a
significant Oregon employer. In 2008, the company engaged
Hamstreet & Associates and Alvarez & Marsal to serve as financial
advisors. Clyde Hamstreet is founder and principal of Hamstreet &
Associates, a Portland-based, nationally recognized turnaround
firm that is leading the effort to provide quality care, preserve
value, and help Sunwest meet its obligations to creditors and
investors. Michael Grassmueck is the founder and principal of
Grassmueck Group, a national firm that specializes in fiduciary
and insolvency services, which is based in Portland, Ore. He has
served as a trustee in bankruptcy and as fiduciary in the state
and federal courts in thousands of cases for more than 25 years.
In March 2009, U.S. District Judge Michael Hogan appointed Michael
Grassmueck as receiver after the Securities and Exchange
Commission filed suit against Sunwest and former CEO Jon Harder,
alleging securities fraud.
The Company engaged Clyde Hamstreet as chief restructuring officer
in late November 2008 to serve as CRO, an appointment continued in
March by the U.S. District Court after the SEC lawsuit was filed.
Sunwest Management has put 10 assisted living centers -- two in
Oregon -- into Chapter 11 bankruptcy. Briarwood Retirement and
Assisted Living Community LLC, which owns a retirement center in
Springfield, and Century Fields Retirement and Assisted Living
Community LLC, which owns a center in Lebanon, filed for Chapter
11 on Aug. 19, 2008. On Aug. 17, 2008, eight Sunwest-affiliated
LLCs filed for Chapter 11 bankruptcy protection from creditors in
Tennessee.
SWOOZIE'S INC: Localities Interfering with GOB Sales
----------------------------------------------------
netDockets reports that Hilco Merchant Resources, LLC, which is
conducting going-out-of-business sales at Swoozie's Inc. stores,
has asked the U.S. Bankruptcy Court for the Northern District of
Georgia to enforce one of its orders and preclude several
localities from enforcing their sign ordinances. According to
netDockets, Hilco said authorities in three cities with Swoozie's
stores -- Oak Brook and Burr Ridge, Illinois and Bronxville, New
York -- are "interfering with the going out of business sales
being conducted by Hilco" by threatening to fine either the store
managers or Swoozie's if Hilco does not comply with their local
sign ordinances.
netDockets also reports that Hilco said the landlord and property
manager of Swoozie's Palm Beach Gardens, Florida store have
interfered with the going-out-of-business sale at that store by
removing a banner advertising the sale and claiming that the
banner has now been "lost."
According to netDockets, Hilco asserted that its ability to
conduct the going-out-of-business sales in accordance with the
court's approved sale guidelines "is a material part of the Asset
Purchase Agreement and is necessary in order for those sales to be
as effective as possible for the benefit of the Debtor and its
creditors."
About Swoozie's Inc.
Swoozie's Inc. is a luxury gift and paper retail chain, operating
in 15 states with 43 locations. It was founded in 2001 in
Atlanta, Georgia, by Kelly Plank Dworkin and the late David
Dworkin.
Swoozie's filed for Chapter 11 bankruptcy on March 2, 2010 (Bankr.
N.D. Ga. Case. No. 10-66316). Judge C. Ray Mullins presides over
the case. Dennis Connolly, Esq., and Wendy R. Reiss, at Alston &
Bird, LLP, in Atlanta, Georgia, serves as bankruptcy counsel. Lee
Diercks at Clear Thinking Group LLC serves as the Debtor's
financial advisor. In its petition, the Debtor listed estimated
assets of $1,000,001 to $10,000,000, and estimated debts of
$10,000,001 to $50,000,000.
TAZ HOLDINGS: Voluntary Chapter 11 Case Summary
-----------------------------------------------
Debtor: Taz Holdings, LLC
157 East Riverside Drive #2A
Saint George, UT 84790
Bankruptcy Case No.: 10-24734
Chapter 11 Petition Date: April 13, 2010
Court: U.S. Bankruptcy Court
District of Utah (Salt Lake City)
Judge: William T. Thurman
Debtor's Counsel: Andres Diaz, Esq.
Red Rock Legal Services PLLC
Mainstreet Plaza Executive Suites
20 North Main Street, Suite 301
St. George, UT 84770
Tel: (435) 634-1000
Fax: (801) 359-6803
E-mail: courtmailrr@expresslaw.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Company did not file a list of creditors together with its
petition.
The petition was signed by Darwin Leavitt, managing member.
TERRACE POINTE: Section 341(a) Meeting Scheduled for May 12
-----------------------------------------------------------
The U.S. Trustee for Region 21 will convene a meeting of Terrace
Pointe Apartments I, LLC's creditors on May 12, 2010, at 1:30 p.m.
The meeting will be held at Room 100-B, 501 East Polk Street,
(Timberlake Annex), Tampa, FL 33602.
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.
Tampa, Florida-based Terrace Pointe Apartments I, LLC, aka Terrace
Pointe Apartments, filed for Chapter 11 bankruptcy protection on
April 5, 2010 (Bankr. M.D. Fla. Case No. 10-07946). Amy Denton
Harris, Esq., at Stichter, Riedel, Blain & Prosser, P.A., assists
the Company in its restructuring effort. The Company estimated
its assets and debts at $10,000,001 to $50 million.
These affiliates filed separate Chapter 11 petitions:
Filing
Entity Case No. Date
------ -------- ----
Terrace Pointe Apartments II, LLC 10-07947 04/05/10
Assets: $10,000,001 to $50 million
Debts: $10,000,001 to $50 million
Terrace Pointe Apartments III, LLC 10-07949 04/05/10
Assets: $10,000,001 to $50 million
Debts: $10,000,001 to $50 million
Amberton Apartments, LLC 10-03402 02/18/10
Brentwood Apartments Tampa, LLC 10-03334 02/17/10
Brookside Tampa, LCC 09-28510 12/15/09
Central Park II, LLC 10-_____ 02/19/10
Central Park/Vouge Limited Partnership 10-03566 02/19/10
Palma Cela Apartments, LLC 10-00166 01/06/10
River Park Naples Limited Partnership 10-01837 01/28/10
RSG Family-Rivertree Landing Apartments 10-03604 02/19/10
The RSG Family Limited Partnership
Gordon River 10-01837 01/28/10
TERRACE POINTE: Files List of 20 Largest Unsecured Creditors
------------------------------------------------------------
Terrace Pointe Apartments I, LLC, has filed with the U.S.
Bankruptcy Court for the Middle District of Florida a list of its
20 largest unsecured creditors.
Debtor's List of 20 Largest Unsecured Creditors:
Entity Claim Amount
------ ------------
Bank of America
P.O. Box 990460
Naples, FL 34116 $121,122
Franklin Street Insurance
Services
5420 Bay Center Drive
Suite 100
Tampa, FL 33612 $50,475
Vertex
5901 Benjamin Center Drive
Suite 110
Tampa, FL 33612 $37,376
Hines Property Tax
Consulting $12,677
1st Florida Termite Pest
Control $9,450
Sunset Land Care $5,298
City of Tampa Utilities $4,180
HD Facilities Maintenance $3,685
Totally Blu H2O $1,382
LexisNexis Screening
Solutions $1,340
Peachtree Business
Products, Inc. $1,022
Jeffrey Allen, Inc. $613
Pool Care $585
Appliance Warehouse $499
ART Pest Control Services $348
Valrico Pump & Well $165
Classic Carpet Dyers, Inc. $165
ADT Secrutly Services $132
First Advantage $99
Borter Glass Co., Inc. $17
Tampa, Florida-based Terrace Pointe Apartments I, LLC, aka Terrace
Pointe Apartments, filed for Chapter 11 bankruptcy protection on
April 5, 2010 (Bankr. M.D. Fla. Case No. 10-07946). Amy Denton
Harris, Esq., at Stichter, Riedel, Blain & Prosser, P.A., assists
the Company in its restructuring effort. The Company estimated
its assets and debts at $10,000,001 to $50 million.
These affiliates filed separate Chapter 11 petitions:
Filing
Entity Case No. Date
------ -------- ----
Terrace Pointe Apartments II, LLC 10-07947 04/05/10
Assets: $10,000,001 to $50 million
Debts: $10,000,001 to $50 million
Terrace Pointe Apartments III, LLC 10-07949 04/05/10
Assets: $10,000,001 to $50 million
Debts: $10,000,001 to $50 million
Amberton Apartments, LLC 10-03402 02/18/10
Brentwood Apartments Tampa, LLC 10-03334 02/17/10
Brookside Tampa, LCC 09-28510 12/15/09
Central Park II, LLC 10-_____ 02/19/10
Central Park/Vouge Limited Partnership 10-03566 02/19/10
Palma Cela Apartments, LLC 10-00166 01/06/10
River Park Naples Limited Partnership 10-01837 01/28/10
RSG Family-Rivertree Landing Apartments 10-03604 02/19/10
The RSG Family Limited Partnership
Gordon River 10-01837 01/28/10
TRIBUNE COMPANY: Judge Blocks Lenders' Reorganization Plan
----------------------------------------------------------
Bankruptcy Law360 reports that a federal judge has reportedly shot
down a bid by a group of lenders holding $3.6 billion in claims
against The Tribune Co. to file its own restructuring plan but
said he will consider appointing an examiner to probe the
company's 2007 leveraged buyout.
Headquartered in Chicago, Illinois, Tribune Co. --
http://www.tribune.com/-- is a media company, operating
businesses in publishing, interactive and broadcasting, including
ten daily newspapers and commuter tabloids, 23 television
stations, WGN America, WGN-AM and the Chicago Cubs baseball team.
The Company and 110 of its affiliates filed for Chapter 11
protection on Dec. 8, 2008 (Bankr. D. Del. Lead Case No. 08-
13141). The Debtors proposed Sidley Austion LLP as their counsel;
Cole, Schotz, Meisel, Forman & Leonard, PA, as Delaware counsel;
Lazard Ltd. and Alvarez & Marsal North Americal LLC as financial
advisors; and Epiq Bankruptcy Solutions LLC as claims agent. As
of Dec. 8, 2008, the Debtors have $7,604,195,000 in total assets
and $12,972,541,148 in total debts.
Bankruptcy Creditors' Service, Inc., publishes Tribune Bankruptcy
News. The newsletter tracks the chapter 11 proceeding undertaken
by Tribune Company and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
TRIBUNE CO: May Get Independent Examiner
----------------------------------------
Bill Rochelle at Bloomberg News reports that U.S. Bankruptcy Judge
Kevin Carey said at a hearing on April 13 that he agreed with the
U.S. Trustee's argument as to why there should be an investigation
by an independent examiner in Tribune Co.'s cases. Judge Carey
told the U.S. Trustee and the Debtor to confer and try to reach an
agreement about the scope of an examination. If there is no
agreement, Carey will hold another hearing on April 22 where he
will decide whether there should be an examiner.
About Tribune Co.
Headquartered in Chicago, Illinois, Tribune Co. --
http://www.tribune.com/-- is a media company, operating
businesses in publishing, interactive and broadcasting, including
ten daily newspapers and commuter tabloids, 23 television
stations, WGN America, WGN-AM and the Chicago Cubs baseball team.
The Company and 110 of its affiliates filed for Chapter 11
protection on Dec. 8, 2008 (Bankr. D. Del. Lead Case No. 08-
13141). The Debtors proposed Sidley Austion LLP as their counsel;
Cole, Schotz, Meisel, Forman & Leonard, PA, as Delaware counsel;
Lazard Ltd. and Alvarez & Marsal North Americal LLC as financial
advisors; and Epiq Bankruptcy Solutions LLC as claims agent. As
of Dec. 8, 2008, the Debtors have $7,604,195,000 in total assets
and $12,972,541,148 in total debts.
Bankruptcy Creditors' Service, Inc., publishes Tribune Bankruptcy
News. The newsletter tracks the chapter 11 proceeding undertaken
by Tribune Company and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
TRINIDAD GOLF: Case Summary & 3 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: Trinidad Golf, LLC
dba Cougar Canyon Golf Links
3700 E. Main Street
Trinidad, CO 81082
Bankruptcy Case No.: 10-18610
Chapter 11 Petition Date: April 14, 2010
Court: United States Bankruptcy Court
District of Colorado (Denver)
Judge: A. Bruce Campbell
Debtor's Counsel: Garry R. Appel
1917 Market St.
Suite A
Denver, CO 80202
Tel: (303) 297-9800
E-mail: appelg@appellucas.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/cob10-18610.pdf
The petition was signed by M. Peter Schrepfer, member on behalf of
Cougar.
UAL CORP: In Talks with Continental About Potential Combination
---------------------------------------------------------------
The Wall Street Journal's Susan Carey and Dennis K. Berman report
that people familiar with the matter said Thursday that UAL Corp.
is talking with Continental Airlines Inc. about a potential
combination, but the two remain far apart. According to the
Journal, these people said the talks don't necessarily mean UAL
aims to dump US Airways Group in favor of Continental, but may be
seeking to sustain deals that fall short of a merger while
producing substantial revenue.
According to the Journal, spokespeople for the three airlines
declined to comment.
As reported by the Troubled Company Reporter on April 13, one
person close to the matter has told the Journal the merger talks
between United and US Airways have become "very serious." The
source, however, told the Journal the talks remain sensitive and
it is just as likely the discussions will fall apart as result in
a done deal. The person also said any transaction would be an
all-stock merger, with United being the surviving entity. The
Journal said the share premium to be paid to US Airways
shareholders hasn't been settled. The Journal also said another
person familiar with the talks said the two sides haven't yet
agreed who would run the combination.
The Journal also noted that a wild card in the United-US Airways
merger talks is what Continental might do if it is threatened with
becoming a very distant No. 4 in the airline pecking order. The
Journal reported that some analysts believe the talks became
public as a way to pressure Continental to return to the
bargaining table with United.
Ms. Carey and Mr. Berman report that Capt. Wendy Morse, head of
the Air Line Pilots Association branch at United, said Thursday
that for United's pilots, "Continental, rather than US Airways,
represents a more logical merger partner for United Airlines."
Ms. Morse said, "It is our belief, along with many analysts, that
a merger between United and Continental would contain less route
overlap and greater attainable synergies." The Journal relates
Ms. Morse said her group would support such a combination if a
deal would benefit United pilot careers. The ALPA branch at
Continental said its leader, Capt. Jay Pierce, wasn't available
for comment Thursday, the Journal realtes.
Chicago-based UAL is the No. 3 U.S. airline by traffic and has a
current market capitalization of $3.9 billion. Continental, based
in Houston and ranked fourth by traffic, has a market cap of $3.3
billion. US Airways, No. 6 by traffic and based in Tempe, Ariz.,
is valued at $1.2 billion.
Delta Air Lines Inc., which expanded as a result of its 2008
acquisition of Northwest Airlines, now is the largest carrier in
the world with a market value of $11.3 billion. According to the
Journal, several people close to the situation said Delta's vast
size has changed the competitive landscape, possibly making a
follow-on merger easier for antitrust enforcers at the Justice
Department to swallow. The Journal, however, notes a United-US
Airways combination would have large market share in Washington,
D.C., and overlapping hubs between Washington and Philadelphia,
and between Phoenix and Denver. Divestitures of some assets might
be required to win regulatory approval. The Journal also says
there's also the risk that adding the Continental alliances to a
United-US Airways combination would raise red flags among
regulators. According to the Journal, these potential problems
have led some analysts to believe a Continental-United marriage
would be an easier regulatory sell. Even though the two together
would create a larger airline, they'd have little overlap.
The Journal also notes Jeff Smisek, Continental's new CEO, has
said publicly that he might revisit his views on mergers if Delta
outpaces the industry financially. He might also be having second
thoughts of being a very small No. 4 carrier after Delta, AMR
Corp.'s American and a bulked up United, even factoring in the
alliance revenues, the Journal adds.
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.
Reorganized 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.
About US Airways
US Airways -- http://www.usairways.com/-- along with US Airways
Shuttle and US Airways Express, operates more than 3,000 flights
per day and serves more than 190 communities in the U.S., Canada,
Mexico, Europe, the Middle East, the Caribbean, Central and South
America.
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. 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 of December 31, 2009, US Airways had total assets of
$7,454,000,000, including $2,331,000,000 in total current assets,
against total current liabilities of $2,789,000,000 and total
noncurrent liabilities and deferred credits of $5,020,000,000,
resulting in $355,000,000 stockholders' deficit.
US Airways Group carries Moody's "Caa1" Long-Term rating, LT Corp.
family rating and probability of default rating. Outlook is
negative.
US Airways Group carries Standard & Poor's "B-" LT Foreign Issuer
Credit rating and LT Local Issuer credit rating. Outlook is also
negative.
US Airways Group carries Fitch's "CCC" LT Issuer default rating
and "C" Senior unsecured debt rating. Outlook is also negative.
About Continental Airlines
Continental Airlines Inc. (NYSE: CAL) --
http://www.continental.com/-- is the world's fifth largest
airline. Continental, together with Continental Express and
Continental Connection, has more than 2,400 daily departures
throughout the Americas, Europe and Asia, serving 130 domestic and
132 international destinations. Continental is a member of Star
Alliance, which provides access to more than 900 additional points
in 169 countries via 24 other member airlines. With more than
41,000 employees, Continental has hubs serving New York, Houston,
Cleveland and Guam, and together with its regional partners,
carries roughly 63 million passengers per year.
At December 31, 2009, Continental had total assets of
$12.781 billion against total current liabilities of
$4.389 billion; long-term debt and capital leases of
$5.291 billion; deferred income taxes of $203 million; accrued
pension liability of $1.248 billion; accrued retiree medical
benefits of $216 million; and other liabilities of $844 million.
At December 31, 2009, the Company had accumulated deficit of
$442 million, accumulated other comprehensive loss of
$1.185 billion and stockholders' equity of $590 million. The
December 31 balance sheet showed strained liquidity: Continental
had total current assets of $4.373 billion against total current
liabilities of $4.389 billion.
* * *
As reported by the Troubled Company Reporter on September 4, 2009,
Standard & Poor's Ratings Services lowered its issue-level ratings
on all senior unsecured debt of Continental to 'CCC+' from 'B-'
and revised the recovery ratings on certain unsecured debt issues,
excluding industrial revenue bonds, to '6' from '5'. At the same
time, S&P affirmed its 'B' corporate credit rating and secured
debt ratings on Continental.
The ratings on Continental's unsecured debt are based principally
on declining aircraft values caused by the global aviation
downturn. This could result in reduced asset protection for
unsecured creditors if Continental were to file for bankruptcy.
Continental continues to carry Moody's Investors Service's B2
corporate family and Fitch Ratings' 'B-' Issuer Default Rating and
'CC/RR6' from 'CCC/RR6' senior unsecured rating.
UNITED COMPONENTS: Carlyle Seeks Buyer, Taps Goldman Sachs
----------------------------------------------------------
Bloomberg News' Cristina Alesci reports that Carlyle Group, the
world's second-largest private-equity firm, is seeking a buyer for
United Components Inc., according to three people familiar with
the plans. One of the sources told Bloomberg KKR & Co. is among
the bidders for UCI. The sources said Carlyle has hired Goldman
Sachs Group Inc. to advise on a potential transaction.
The sources, Bloomberg says, declined to be named because the
information is private. Carlyle acquired UCI in an $808 million
deal including debt in 2003.
Spokesmen for Carlyle, KKR and Goldman Sachs declined to comment,
according to Bloomberg.
Bloomberg also notes UCI has struggled to increase sales in the
automotive aftermarket, comprising replacement parts for older
vehicles. Its biggest customer, AutoZone Inc., accounted for 30%
of 2009 sales. Bloomberg notes that UCI's parent company, UCI
Holdco Inc., issued $324.1 million of Floating Rate Senior PIK
Notes after the buyout. Excluding those notes, UCI had total debt
of $424.4 million as of December 31, according to a filing with
the U.S. Securities and Exchange Commission.
Bloomberg relates that cost cuts that included workforce
reductions, wage freezes and the suspension of pension
contributions helped UCI recover from a decline in net income of
more than 70% in 2008. Profit rose threefold to $30.6 million the
following year.
UCI carries Standard & Poor's Ratings Services' (B-/Negative/--)
Corporate credit rating.
US AIRWAYS: UAL in Talks with Continental About Potential Tie-up
----------------------------------------------------------------
The Wall Street Journal's Susan Carey and Dennis K. Berman report
that people familiar with the matter said Thursday that UAL Corp.
is talking with Continental Airlines Inc. about a potential
combination, but the two remain far apart. According to the
Journal, these people said the talks don't necessarily mean UAL
aims to dump US Airways Group in favor of Continental, but may be
seeking to sustain deals that fall short of a merger while
producing substantial revenue.
According to the Journal, spokespeople for the three airlines
declined to comment.
As reported by the Troubled Company Reporter on April 13, one
person close to the matter has told the Journal the merger talks
between United and US Airways have become "very serious." The
source, however, told the Journal the talks remain sensitive and
it is just as likely the discussions will fall apart as result in
a done deal. The person also said any transaction would be an
all-stock merger, with United being the surviving entity. The
Journal said the share premium to be paid to US Airways
shareholders hasn't been settled. The Journal also said another
person familiar with the talks said the two sides haven't yet
agreed who would run the combination.
The Journal also noted that a wild card in the United-US Airways
merger talks is what Continental might do if it is threatened with
becoming a very distant No. 4 in the airline pecking order. The
Journal reported that some analysts believe the talks became
public as a way to pressure Continental to return to the
bargaining table with United.
Ms. Carey and Mr. Berman report that Capt. Wendy Morse, head of
the Air Line Pilots Association branch at United, said Thursday
that for United's pilots, "Continental, rather than US Airways,
represents a more logical merger partner for United Airlines."
Ms. Morse said, "It is our belief, along with many analysts, that
a merger between United and Continental would contain less route
overlap and greater attainable synergies." The Journal relates
Ms. Morse said her group would support such a combination if a
deal would benefit United pilot careers. The ALPA branch at
Continental said its leader, Capt. Jay Pierce, wasn't available
for comment Thursday, the Journal realtes.
Chicago-based UAL is the No. 3 U.S. airline by traffic and has a
current market capitalization of $3.9 billion. Continental, based
in Houston and ranked fourth by traffic, has a market cap of $3.3
billion. US Airways, No. 6 by traffic and based in Tempe, Ariz.,
is valued at $1.2 billion.
Delta Air Lines Inc., which expanded as a result of its 2008
acquisition of Northwest Airlines, now is the largest carrier in
the world with a market value of $11.3 billion. According to the
Journal, several people close to the situation said Delta's vast
size has changed the competitive landscape, possibly making a
follow-on merger easier for antitrust enforcers at the Justice
Department to swallow. The Journal, however, notes a United-US
Airways combination would have large market share in Washington,
D.C., and overlapping hubs between Washington and Philadelphia,
and between Phoenix and Denver. Divestitures of some assets might
be required to win regulatory approval. The Journal also says
there's also the risk that adding the Continental alliances to a
United-US Airways combination would raise red flags among
regulators. According to the Journal, these potential problems
have led some analysts to believe a Continental-United marriage
would be an easier regulatory sell. Even though the two together
would create a larger airline, they'd have little overlap.
The Journal also notes Jeff Smisek, Continental's new CEO, has
said publicly that he might revisit his views on mergers if Delta
outpaces the industry financially. He might also be having second
thoughts of being a very small No. 4 carrier after Delta, AMR
Corp.'s American and a bulked up United, even factoring in the
alliance revenues, the Journal adds.
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.
Reorganized 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.
About US Airways
US Airways -- http://www.usairways.com/-- along with US Airways
Shuttle and US Airways Express, operates more than 3,000 flights
per day and serves more than 190 communities in the U.S., Canada,
Mexico, Europe, the Middle East, the Caribbean, Central and South
America.
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. 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 of December 31, 2009, US Airways had total assets of
$7,454,000,000, including $2,331,000,000 in total current assets,
against total current liabilities of $2,789,000,000 and total
noncurrent liabilities and deferred credits of $5,020,000,000,
resulting in $355,000,000 stockholders' deficit.
US Airways Group carries Moody's "Caa1" Long-Term rating, LT Corp.
family rating and probability of default rating. Outlook is
negative.
US Airways Group carries Standard & Poor's "B-" LT Foreign Issuer
Credit rating and LT Local Issuer credit rating. Outlook is also
negative.
US Airways Group carries Fitch's "CCC" LT Issuer default rating
and "C" Senior unsecured debt rating. Outlook is also negative.
About Continental Airlines
Continental Airlines Inc. (NYSE: CAL) --
http://www.continental.com/-- is the world's fifth largest
airline. Continental, together with Continental Express and
Continental Connection, has more than 2,400 daily departures
throughout the Americas, Europe and Asia, serving 130 domestic and
132 international destinations. Continental is a member of Star
Alliance, which provides access to more than 900 additional points
in 169 countries via 24 other member airlines. With more than
41,000 employees, Continental has hubs serving New York, Houston,
Cleveland and Guam, and together with its regional partners,
carries roughly 63 million passengers per year.
At December 31, 2009, Continental had total assets of
$12.781 billion against total current liabilities of
$4.389 billion; long-term debt and capital leases of
$5.291 billion; deferred income taxes of $203 million; accrued
pension liability of $1.248 billion; accrued retiree medical
benefits of $216 million; and other liabilities of $844 million.
At December 31, 2009, the Company had accumulated deficit of
$442 million, accumulated other comprehensive loss of
$1.185 billion and stockholders' equity of $590 million. The
December 31 balance sheet showed strained liquidity: Continental
had total current assets of $4.373 billion against total current
liabilities of $4.389 billion.
* * *
As reported by the Troubled Company Reporter on September 4, 2009,
Standard & Poor's Ratings Services lowered its issue-level ratings
on all senior unsecured debt of Continental to 'CCC+' from 'B-'
and revised the recovery ratings on certain unsecured debt issues,
excluding industrial revenue bonds, to '6' from '5'. At the same
time, S&P affirmed its 'B' corporate credit rating and secured
debt ratings on Continental.
The ratings on Continental's unsecured debt are based principally
on declining aircraft values caused by the global aviation
downturn. This could result in reduced asset protection for
unsecured creditors if Continental were to file for bankruptcy.
Continental continues to carry Moody's Investors Service's B2
corporate family and Fitch Ratings' 'B-' Issuer Default Rating and
'CC/RR6' from 'CCC/RR6' senior unsecured rating.
VANOWEN PARTNERSHIP: Case Summary & 12 Largest Unsecured Creditors
------------------------------------------------------------------
Debtor: 10919 Vanowen Partnership
10919 Vanowen Street
Unit 183
N. Hollywood, CA 91405
818 4872115
Bankruptcy Case No.: 10-14344
Chapter 11 Petition Date: April 14, 2010
Court: United States Bankruptcy Court
Central District Of California (San Fernando Valley)
Judge: Maureen Tighe
Debtor's Counsel: William H Brownstein, Esq.
1250 Sixth St Ste 205
Santa Monica, CA 90401
Tel: (310) 458-0048
Fax: (310) 576-3581
E-mail: Brownsteinlaw.bill@gmail.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 12 largest unsecured creditors filed
together with the petition is available for free at:
http://bankrupt.com/misc/cacb10-14344.pdf
The petition was signed by Charles Miseroy, General Parner.
VERSO PAPER: Moody's Affirms 'B2' Rating; Gives Stable Outlook
--------------------------------------------------------------
Moody's Investors Service affirmed Verso Paper Finance Holdings
LLC's and Verso Paper Holdings' (together referred to as Verso)
existing ratings and revised the ratings outlook to stable from
negative. The revision of Verso's outlook to stable primarily
reflects Moody's expectation that the company's downside risk has
lessened due to expectations of improving financial performance
over the near term coupled with the company's strong liquidity
position. Demand levels for coated paper, the company's primary
product, are expected to continue to modestly improve while prices
have stabilized and are expected to rise in the near term.
Although Verso is expected to generate negative free cash flow
over the next fiscal year, a strong liquidity position comprising
cash and availability under committed covenant-free credit lines
should buffer the cash burn in the interim period as industry
fundamentals for coated papers gradually improve.
Verso's B2 corporate family rating primarily reflects the
company's vertically integrated relatively low cost asset base and
its scale as the second largest producer of coated papers in North
America. Key credit challenges include the company's significant
debt load which constrains its financial flexibility, and its
narrow product and geographic focus. Moody's expects recent
improvements in industry conditions for both coated paper and
market pulp, coupled with anticipated realizations under the
company's continuing cost reduction program, will help Verso to
generate credit protection measures that are consistent with its
current B2 CFR.
Outlook Actions:
Issuer: Verso Paper Finance Holdings LLC
-- Outlook, Changed To Stable From Negative
Issuer: Verso Paper Holdings LLC
-- Outlook, Changed To Stable From Negative
Moody's last rating action was on May 27, 2009, when Verso Paper's
new first priority secured notes were rated Ba2 and the company's
outlook was revised to negative from stable.
Verso Finance is a holding company whose sole asset is an
indirect, wholly-owned interest in Verso Paper, a Memphis,
Tennessee based integrated producer of coated and supercalendered
publication papers. In turn, Verso Finance is a wholly-owned
subsidiary of Verso Paper Corporation, the publicly traded entity.
VIJAY TANEJA: Trustee Took Property Free & Clear of Liens
---------------------------------------------------------
Under Virginia law, WestLaw reports, a Chapter 11 trustee, acting
as a hypothetical bona fide purchaser on the date of the debtor's
petition filing, pursuant to his strong-arm powers under the
Bankruptcy Code, took property free of the claimed lien of a
mortgage holder whose deed of trust against the debtor's property
was allegedly released through an unauthorized and fraudulent
certificate of satisfaction, at least in the absence of
constructive notice that the deed of trust had not been validly
released. Moreover, the sequence of transfers, encumbrances, and
releases of encumbrances that occurred with respect to the
property over a six-month period which ended some two years before
the debtor filed its petition would not have suggested to a
prudent purchaser that the first of 12 deeds of trust had been
released without authority. Therefore, the trustee lacked
constructive notice that the mortgage holder's deed of trust was
released without authority. To the extent that the transactions
suggested something untoward, it was a "kiting scheme" that would
raise questions as to whether the last deed of trust, rather than
the first, had been properly released. In re Taneja, --- B.R. ---
-, 2010 WL 1039805 (Bankr. E.D. Va.) (Mitchell, J.).
Vijay K. Taneja and four companies he controlled -- Taneja Center,
Inc., Elite Entertainment Inc., Financial Mortgage Inc. (a
mortgage originator), and NRM Investments Inc. -- sought chapter
11 protection (Bankr. E.D. Va. Case Nos. 08-13293, 08-13292, 08-
13286, 08-13287 and 08-13290) on June 9, 2008. Taneja Center's
Schedules of Assets & Liabilities disclose $20 million in assets
and $16 million in debts as of the petition date. H. Jason Gold
has been appointed as chapter 11 trustee in all five cases, which
are being jointly administered, and is represented by:
Alexander M. Laughlin, Esq.
WILEY REIN LLP
7925 Jones Branch Drive, Suite 6200
McLean, VA 22102
Tel: (703) 905-2800
E-mail: alaughlin@wileyrein.com
VIKING SYSTEMS: Chairman Bopp Holds 40.2% of Common Stock
---------------------------------------------------------
William C. Bopp, the chairman of the board of directors of Viking
Systems, Inc., disclosed that as of March 30, 2010, he may be
deemed to beneficially own 23,288,519 shares or roughly 40.2% of
Viking Systems' common stock. The shares were originally acquired
for, and held individually for, investment purposes.
Mr. Bopp said in a regulatory filing the stake includes
(i) 11,765,792 shares of common stock issuable upon exercise of
warrants issued to Mr. Bopp in connection with (x) the exchange of
Viking Systems debentures (resulting in issuance of 3,931,536
shares of common stock); (y) the exchange of warrants issued with
the Debentures (resulting in issuance of 1,965,768 warrants); and,
(z) the New Investment (resulting in issuance of 9,800,024 shares
of common stock and 9,800,024 warrants.
On March 30, 2010, Mr. Bopp disposed of 2,875,000 shares of the
Company's common stock via completion of 23 gifts of 125,000
shares each of Viking Systems common stock to various family
members.
On October 16, 2009, Mr. Bopp surrendered all 2,100,000 previously
granted stock options to purchase shares of the Company's common
stock.
About Viking Systems
Based in Westborough, Massachusetts, Viking Systems, Inc. (OTCBB:
VKNG.OB) -- http://www.vikingsystems.com/-- is a developer,
manufacturer and marketer of visualization solutions for complex
minimally invasive surgery. The Company partners with medical
device companies and healthcare facilities to provide surgeons
with proprietary visualization systems enabling minimally invasive
surgical procedures, which reduce patient trauma and recovery
time.
At December 31, 2009, the Company had total assets of $2,952,664
against total liabilities, all current, of $2,048,970. At
December 31, 2009, the Company had an accumulated deficit of
$26,297,978 and stockholders' equity of $903,694. At December 31,
2008, stockholders' equity was $1,385,663.
The report from Viking Systems, Inc.'s independent registered
public accounting firm, Squar, Milner, Peterson, Miranda &
Williamson, LLP, dated February 22, 2010, includes a going concern
explanatory paragraph which states that factors relating to the
Company's net losses and working capital concerns raise
substantial doubt the Company's ability to continue as a going
concern.
Viking Systems said it will need to generate significant
additional revenue to achieve profitability and it may require
additional financing during 2010. "The going concern explanatory
paragraph in the independent auditor's report emphasizes the
uncertainty related to our business as well as the level of risk
associated with an investment in our common stock," Viking Systems
said.
VISTEON CORPORATION: Files April 2010 Status Report
---------------------------------------------------
An April 2010 status report for the Visteon case was filed with
the U.S. Bankruptcy Court, according to BankruptcyData.com.
Among other things, the report states, "Although it is too early
to tell if the parties will agree to the "toggle" plan and all of
its moving pieces, the Debtors are hopeful it will lead to a plan
supported by all key parties. Other variations of the "toggle"
are being developed, which would provide a similar economic
opportunity to Bondholders. To allow time for further
negotiations with respect to the possible "toggle" plan, the
Debtors have adjourned the hearing on approval of the disclosure
statement to April 30, 2010. In connection therewith, the
Committee also has agreed to delay a hearing on its exclusivity
termination motion given continued negotiations between the
parties. Still, the Debtors remain committed to pushing all
parties-including themselves-aggressively for the sake of
preserving the going concern. While the Debtors hope to proceed
with a disclosure statement for a consensual form of plan on
April 30, the Debtors continue to believe the March 15 plan is
confirmable and will not hesitate to move forward with the March
15 plan or a variant thereof in accordance with their fiduciary
duties if the "toggle" plan negotiations stall."
About Visteon Corporation
Visteon Corporation is a leading global automotive supplier that
designs, engineers and manufactures innovative climate, interior,
electronic and lighting products for vehicle manufacturers. With
corporate offices in Van Buren Township, Mich. (U.S.); Shanghai,
China; and Chelmsford, UK; the company has facilities in 25
countries and employs approximately 29,500 people.
Headquartered in Van Buren Township, Michigan, Visteon Corporation
(NYSE: VC) -- http://www.visteon.com/-- is a global automotive
supplier that designs, engineers and manufactures innovative
climate, interior, electronic and lighting products for vehicle
manufacturers, and also provides a range of products and services
to aftermarket customers. The Company has corporate offices in
Van Buren Township, Michigan (U.S.); Shanghai, China; and Kerpen,
Germany. It has facilities in 27 countries and employs roughly
35,500 people. The Company has assets of US$4,561,000,000 and
debts of US$5,311,000,000 as of March 31, 2009.
Visteon Corporation and 30 of its affiliates filed for Chapter 11
protection on May 28, 2009, (Bank. D. Del. Case No. 09-11786
through 09-11818). Judge Christopher S. Sontchi oversees the
Chapter 11 cases. James H.M. Sprayregen, Esq., Marc Kieselstein,
Esq., and James J. Mazza, Jr., Esq., at Kirkland & Ellis LLP, in
Chicago, Illinois, represent the Debtors in their restructuring
efforts. Laura Davis Jones, Esq., James E. O'Neill, Esq., Timothy
P. Cairns, Esq., and Mark M. Billion, Esq., at Pachulski Stang
Ziehl & Jones LLP, in Wilmington, Delaware, serve as the Debtors'
local counsel. The Debtors' investment banker and financial
advisor is Rothschild Inc. The Debtors' notice, claims, and
solicitation agent is Kurtzman Carson Consultants LLC. The
Debtors' restructuring advisor is Alvarez & Marsal North America,
LLC.
Bankruptcy Creditors' Service, Inc., publishes Visteon Bankruptcy
News. The newsletter tracks the Chapter 11 proceedings of Visteon
Corp. and its debtor-affiliates. (http://bankrupt.com/newsstand/
or 215/945-7000)
VITESSE SEMICONDUCTOR: Annual Stockholders' Meeting on May 11
-------------------------------------------------------------
The Annual Meeting of Stockholders of Vitesse Semiconductor
Corporation will be held on May 11, 2010, at 9:00 a.m. local time
at the Hyatt Westlake Plaza in Thousand Oaks, 880 S. Westlake
Blvd., in Westlake Village, California, for these purposes:
1. To elect five directors to serve for the ensuing year and
until their successors are duly elected;
2. To approve the 2010 Vitesse Semiconductor Corporation
Incentive Plan;
3. To ratify the appointment of BDO Seidman, LLP as the
Company's independent registered public accounting firm
for the fiscal year ending September 30, 2010; and
4. To transact such other business as may properly be brought
before the meeting and any adjournment(s) thereof.
Stockholders of record at the close of business on March 26, 2010,
are entitled to notice of and to vote at the meeting.
A full-text copy of the Company's proxy statement is available at
no charge at http://ResearchArchives.com/t/s?6019
About Vitesse
Based in Camarillo, California, Vitesse Semiconductor Corporation
(Pink Sheets: VTSS.PK) -- http://www.vitesse.com/-- designs,
develops and markets a diverse portfolio of semiconductor
solutions for Carrier and Enterprise networks worldwide.
Vitesse had total assets of $87,633,000 against total debts of
$130,120,000 and Series B preferred stock of $1,113,000, resulting
in shareholders' deficit of $43,600,000 as of December 31, 2009.
Vitesse entered into debt restructuring agreements in October 2009
with its major creditors, which allow the Company to satisfy its
creditors by converting most of its debt into new common stock,
preferred stock and new convertible debentures. Vitesse is
seeking stockholder approval to increase the number of authorized
shares of the Company's common stock from 500,000,000 to
5,000,000,000 in conjunction with the debt restructuring
agreements. The Company has warned if stockholders do not approve
the proposal to authorize the Company to issue more shares by
February 15, 2010, it will face a 1.0% per month interest charge
on the New Debentures (at a cost of about $500,000 per month)
beginning on February 16, 2010 and continuing until the increase
in the authorized shares is approved. In addition, the holders of
the New Debentures will have the right to demand repayment of the
principal amount of the debt, plus potentially certain make-whole
interest payments representing interest that would have been
earned if the bonds had not been converted early. The Company
could potentially be forced to file for protection from creditors
under Chapter 11 of the U.S. Bankruptcy Code.
VITESSE SEMICONDUCTOR: To Release Q2 2010 Earnings on May 10
------------------------------------------------------------
Vitesse Semiconductor Corporation will conduct a conference call
on May 10, 2010 at 1:30 p.m. Pacific Time/4:30 p.m. Eastern Time
to report second quarter fiscal year 2010 results.
To listen to the conference call via telephone, dial 866-393-5524
(U.S. toll-free) or 973-638-3372 (International) and provide the
pass code 68671974. Participants should dial in at least 10
minutes prior to the start of the call. To listen via the
Internet, the webcast can be accessed through the Vitesse
corporate Web site.
The playback of the conference call will be available
approximately two hours after the call concludes and will be
accessible on the Vitesse corporate Web site or by calling 800-
642-1687 (U.S. toll-free) or 706-645-9291 (International) and
entering the pass code 68671974. The audio replay will be
available for seven days.
About Vitesse
Based in Camarillo, California, Vitesse Semiconductor Corporation
(Pink Sheets: VTSS.PK) -- http://www.vitesse.com/-- designs,
develops and markets a diverse portfolio of semiconductor
solutions for Carrier and Enterprise networks worldwide.
Vitesse had total assets of $87,633,000 against total debts of
$130,120,000 and Series B preferred stock of $1,113,000, resulting
in shareholders' deficit of $43,600,000 as of December 31, 2009.
Vitesse entered into debt restructuring agreements in October 2009
with its major creditors, which allow the Company to satisfy its
creditors by converting most of its debt into new common stock,
preferred stock and new convertible debentures. Vitesse is
seeking stockholder approval to increase the number of authorized
shares of the Company's common stock from 500,000,000 to
5,000,000,000 in conjunction with the debt restructuring
agreements. The Company has warned if stockholders do not approve
the proposal to authorize the Company to issue more shares by
February 15, 2010, it will face a 1.0% per month interest charge
on the New Debentures (at a cost of about $500,000 per month)
beginning on February 16, 2010 and continuing until the increase
in the authorized shares is approved. In addition, the holders of
the New Debentures will have the right to demand repayment of the
principal amount of the debt, plus potentially certain make-whole
interest payments representing interest that would have been
earned if the bonds had not been converted early. The Company
could potentially be forced to file for protection from creditors
under Chapter 11 of the U.S. Bankruptcy Code.
WASHINGTON MUTUAL: Creditors Sue to Protect $356 Million in Claims
------------------------------------------------------------------
American Bankruptcy Institute reports that Washington Mutual Inc.
is being hit with a lawsuit by creditors aiming to protect their
$356 million in claims from being wiped out in the former banking
giant's creditor payment plan.
Based in Seattle, Washington, Washington Mutual Inc. --
http://www.wamu.com/-- is a holding company for Washington Mutual
Bank as well as numerous non-bank subsidiaries. The Company
operates in four segments: the Retail Banking Group, which
operates a retail bank network of 2,257 stores in California,
Florida, Texas, New York, Washington, Illinois, Oregon, New
Jersey, Georgia, Arizona, Colorado, Nevada, Utah, Idaho and
Connecticut; the Card Services Group, which operates a nationwide
credit card lending business; the Commercial Group, which conducts
a multi-family and commercial real estate lending business in
selected markets, and the Home Loans Group, which engages in
nationwide single-family residential real estate lending,
servicing and capital markets activities.
Washington Mutual Bank was taken over September 25 by U.S.
government regulators. The next day, WaMu and its affiliate, WMI
Investment Corp., filed separate petitions for Chapter 11 relief
(Bankr. D. Del. 08-12229 and 08-12228, respectively). Wamu owns
100% of the equity in WMI Investment. Weil Gotshal & Manges
represents the Debtors as counsel. When WaMu filed for protection
from its creditors, it listed assets of $32,896,605,516 and debts
of $8,167,022,695. WMI Investment listed assets of $500,000,000
to $1,000,000,000 with zero debts.
Peter Calamari, Esq., and David Elsberg, Esq., at Quinn Emanuel
Urquhart Oliver & Hedges, LLP, served as legal counsel to WMI with
responsibility for the litigation. Brian Rosen, Esq., at Weil,
Gotshal & Manges LLP served as legal counsel to WMI with
responsibility for the chapter 11 case.
Bankruptcy Creditors' Service Inc. publishes Washington Mutual
Bankruptcy News. The newsletter tracks the Chapter 11 proceedings
of Washington Mutual Inc. (http://bankrupt.com/newsstand/or
215/945-7000).
WESTLAND DEVCO: Section 341(a) Meeting Scheduled for May 12
-----------------------------------------------------------
The U.S. Trustee for Region 3 will convene a meeting of Lydia
Cladek, Inc.'s creditors on May 12, 2010, at 3:30 p.m. The
meeting will be held at the U.S. District Court, 844 King Street,
Room 2112, Wilmington, Delaware.
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.
Albuquerque, New Mexico-based Westland Devco, LP -- aka Westland,
Petroglyphs, Watershed, Strom Cloud, Sundoro South, and Grasslands
-- filed for Chapter 11 bankruptcy protection on April 5, 2010
(Bankr. D. Del. Case No. 10-11166). Norman L. Pernick, Esq., and
Patrick J. Reilley, Esq., at Cole, Schotz, Meisel, Forman &
Leonard, assist the Company in its restructuring effort. Katten
Muchin Rosenmann LLP is the Company's corporate and finance
counsel. Navigant Capital Advisors, LLC, is the Company's
financial advisor. The Company estimated its assets and debts at
$100,000,001 to $500,000,000.
WESTLAND DEVCO: Barclays Moves to Dismiss Chapter 11 Filing
-----------------------------------------------------------
Bill Rochelle at Bloomberg News reports that the secured lender of
Westland Devco LP is asking the Bankruptcy Court to dismiss
Westland's Chapter 11 case. Barclays Capital Real Estate Inc.,
which says it is owed more than $194 million, said the bankruptcy
filing was designed to "stave off imminent state court
foreclosure." The affiliate of the London-based bank noted that
the Chapter 11 petition was filed 45 minutes before a hearing in
the state foreclosure court. While Westland claims the property
is worth $353 million, Barclays says its appraisal pegs the value
at one-third of that amount. Barclays contends the reorganization
is hopeless, partly because Westland has only $50,000 a year in
income and no more than $4,000 in cash.
About Westland Devco
Real estate developer Westland Devco LP filed a Chapter 11
petition on April 5, in Wilmington, Delaware (Bankr. D. Del. Case
No. 10-11166). Westland Devco sought bankruptcy protection after
its lenders sued to foreclose on its assets. Barclays Capital
Real Estate Inc., a unit of London-based Barclays Plc, sued
Westland in December, seeking to foreclose on the project after
the developer defaulted on its loan in July. The Company borrowed
$212 million from the Barclays unit in December 2006.
The Debtor listed assets of $361 million and debt of $198 million
as of Dec. 31. Westland owns 55,000 acres of real estate in
Albuquerque, which it planned to develop into residential lots.
WESTMORELAND COAL: Allen Blase Holds 0.001% of Depository Shares
----------------------------------------------------------------
Allen A. Blase in Davie, Florida, disclosed that he may be deemed
to beneficially own 820 Depository Shares -- or roughly 0.001% --
of Westmoreland Coal Company. Each Depository Share represents
1/4 of a share of series "A" Convertible Exchangeable Preferred
Stock of the Company.
The securities are held in margin accounts at Merrill Lynch and
other broker dealers on such firm's usual terms and conditions.
Different amounts were borrowed from time to time depending on the
ratio of equity to debt in the account.
Mr. Blase acquired the Depositary Shares with the expectation of
high return and for investment purposes.
About Westmoreland Coal
Colorado Springs, Colo.-based Westmoreland Coal Company is an
energy company employing 1,109 employees whose operations include
five surface coal mines in Montana, North Dakota and Texas and two
coal-fired power generating units with a total capacity of 230
megawatts in North Carolina.
The Company's balance sheet as of Dec. 31, 2009, showed
$772.7 million in assets and $914.5 million of debts, for a
stockholders' deficit of $141.8 million.
KPMG LLP, in Denver, expressed substantial doubt about the
Company's ability to continue as a going concern. The independent
auditors noted that of the Company's recurring losses from
operations, working capital deficit and net capital deficiency.
WESTMORELAND COAL: T. Rowe Price Holds 7.3% of Common Stock
-----------------------------------------------------------
T. Rowe Price Associates, Inc., and T. Rowe Price Small Cap Stock
Fund, Inc., disclosed that as of December 31, 2009, they may be
deemed to beneficially own in the aggregate 757,700 shares or
roughly 7.3% of the common stock of Westmoreland Coal Company.
About Westmoreland Coal
Colorado Springs, Colo.-based Westmoreland Coal Company is an
energy company employing 1,109 employees whose operations include
five surface coal mines in Montana, North Dakota and Texas and two
coal-fired power generating units with a total capacity of 230
megawatts in North Carolina.
The Company's balance sheet as of Dec. 31, 2009, showed
$772.7 million in assets and $914.5 million of debts, for a
stockholders' deficit of $141.8 million.
KPMG LLP, in Denver, expressed substantial doubt about the
Company's ability to continue as a going concern. The independent
auditors noted that of the Company's recurring losses from
operations, working capital deficit and net capital deficiency.
WESTMORELAND COAL: Vicino Holds 16.9% of Depositary Shares
----------------------------------------------------------
Frank T. Vicino, Jr.; F. T. Vicino Jr., Ttee U/A Dtd 9/26/1997;
Vicino Family Limited Partnership; and Vicino Family Holdings,
Inc. disclosed that as of February 10, 2010, they may be deemed to
beneficially own 108,230 Depositary Shares -- roughly 16.9% -- of
Westmoreland Coal Company.
Each Depository Share represents 1/4 of a share of series "A"
Convertible Exchangeable Preferred Stock of the Company.
Vicino et al., said they originally acquired Westmoreland
Depository Shares with the expectation of high return and for
investment purposes. In December 2009, Frank T. Vicino requested
that the Company's Nominating and Corporate Governance Committee
consider him as an outside director of the company on behalf of
the preferred shareholders. In early February 2010, the Company
advised Mr. Vicino that the Committee would recommend his
nominating to the Board of Directors at the next annual meeting.
On February 5, 2010, Mr. Vicino agreed to sit as one of the two
nominees to the Board on behalf of the Preferred Shareholders.
About Westmoreland Coal
Colorado Springs, Colo.-based Westmoreland Coal Company is an
energy company employing 1,109 employees whose operations include
five surface coal mines in Montana, North Dakota and Texas and two
coal-fired power generating units with a total capacity of 230
megawatts in North Carolina.
The Company's balance sheet as of Dec. 31, 2009, showed
$772.7 million in assets and $914.5 million of debts, for a
stockholders' deficit of $141.8 million.
KPMG LLP, in Denver, expressed substantial doubt about the
Company's ability to continue as a going concern. The independent
auditors noted that of the Company's recurring losses from
operations, working capital deficit and net capital deficiency.
WILDWING DEVELOPMENT: Case Summary & 11 Largest Unsec. Creditors
----------------------------------------------------------------
Debtor: Wildwing Development LLC
15530 E. Broncos Parkway, Suite 350
Centennial, CO 80112
Case No.: 10-18467
Type of Business: The Debtor is a single asset real estate.
Chapter 11 Petition Date: April 13, 2010
Court: U.S. Bankruptcy Court
District of Colorado (Denver)
Judge: A. Bruce Campbell
Debtor's Counsel: Bart B. Burnett, Esq.
1660 Lincoln Street
Suite 1900
Denver, CO 80264
Phone: (303) 996-8600
Fax: (303) 996-8636
E-mail: bburnett@hblegal.net
Estimated Assets: $10,000,000 to $50,000,000
Estimated Debts: $1,000,000 to $10,000,000
Debtor's List of 11 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Town of Timnath
4800 Goodman St.
Timnath, CO 80547 Review Fees $96,167
Poehlmann Construction
579 W. 66th Street
Loveland, CO 80538 Lot Deposit $50,000
Wildwing Metropolitan
District
c/o Pinnacle Consulting
5110 Granite St., Suite C Unpaid Developer
Loveland, CO 80538 Funding $30,000
Bartran Construction Lot Deposit $25,000
Mike Miles Landscape Credit $25,000
Mill Brothers Landscape Landscaping $9,800
Carroll & Lang-Manhard Engineering $8,396
Pinnacle Consulting Group Consulting
Services $6,452
Lilly, Rogers & Martell LLC Legal Fees $5,000
McGeady Sisneros, P.C. Legal Fees $4,729
The Group Realtor Fees $784
The petition is signed by Fred W. Boekel, the Debtor's manager.
WILLIAMS WELDING: Voluntary Chapter 11 Case Summary
---------------------------------------------------
Debtor: Williams Welding, Inc.
dba Williams Welding Construction, Inc.
P.O. Box 553
Canadian, TX 79014
Bankruptcy Case No.: 10-32628
Chapter 11 Petition Date: April 13, 2010
Court: U.S. Bankruptcy Court
Northern District of Texas (Dallas)
Judge: Harlin DeWayne Hale
Debtor's Counsel: Susan B. Hersh, Esq.
Susan B. Hersh, P.C.
12770 Coit Road, Suite 1100
Dallas, TX 75251
Tel: (972) 503-7070
E-mail: susan@susanbhershpc.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Company did not file a list of creditors together with its
petition.
The petition was signed by D. Wayne Williams, president.
ZAYAT TABLES: Fifth Third Wants to Cut Cash Collateral Use
----------------------------------------------------------
Bloomberg News' Bill Rochelle reports that prepetition secured
lender Fifth Third Bank -- after reaching an interim deal for
Zayat Stables LLC's use of cash collateral -- now wants the Court
to terminate the Debtor's right to continue using cash collateral.
After the Chapter 11 reorganization began in February, the bank
disputed the stables' right to use cash. The controversy ended in
a temporary settlement allowing Zayat to use cash under a budget
until May 8. It also provided a scheme for selling two year-old
horses at auction and others in claiming races. Proceeds were to
be held in an escrow account. The agreement also requires the
stables to file a Chapter 11 plan by April 16.
Zayat sued the bank on April 5, alleging "misleading, deceptive
and predatory lending practices." The stables' lawsuit alleges
that the bank made "numerous promises to restructure" the loans.
In asking for punitive damages, Zayat says the promises to
restructure were "confirmed in a signed writing."
On April 9, the bank declared a default under an agreement for the
use of cash collateral and scheduled a hearing today to shut off
the use of cash. The bank noted that in violation of their deal,
Zayat unilaterally withdrew four horses from the auction.
About Zayat Stables
Hackensack, New Jersey-based Zayat Stables owns of 203
thoroughbred horses. The horses, which are collateral for the
bank loan, are worth $37 million, according an appraisal mentioned
in a court paper. Ahmed Zayat said in a court filing that he
personally invested $40 million in the business.
The Company filed for Chapter 11 bankruptcy protection on
February 3, 2010 (Bankr. D. N.J. Case No. 10-13130). The Company
listed $10,000,001 to $50,000,000 in assets and $10,000,001 to
$50,000,000 in liabilities.
* March Has Record Claim Trades, SecondMarket Says
--------------------------------------------------
Claims in the total face amount of $2.89 billion were traded in
March, Bill Rochelle at Bloomberg News said, citing SecondMarket
Inc., which describes itself as the largest secondary market for
illiquid assets. The statistics, based on reports filed with
bankruptcy courts, once again have Lehman Brothers Holdings Inc.
in the lead with 288 reported trades for $2.69 billion. Lehman
claims for $9.34 billion were traded in the past year.
SecondMarket said in its report to customers that March had the
most reported trades in number since it began keeping records.
Claims against 58 different companies were traded during the
month, according to SecondMarket.
* Fried Frank Promotes Two to European Counsel in Paris Office
--------------------------------------------------------------
Fried, Frank, Harris, Shriver & Jacobson LLP announced that Noam
Ankri and Olivier Genicot have been promoted to European Counsel
effective March 1, 2010.
Noam Ankri is an attorney in the Firm's Corporate Department in
Paris. He focuses his practice on both public and private mergers
and acquisitions, with an emphasis on LBO transactions. He has
worked in both New York and Paris, where he also advised clients
in senior and mezzanine financing, bankruptcy and restructuring
reorganizations. Mr. Ankri is also a regular lecturer in business
law and contracts at several universities in Paris. He received
his advanced degree in business law from the University of Paris -
- IX: Paris-Dauphine, DESS, with honours, in 1999. He is admitted
to practice law in Paris.
Olivier Genicot is an attorney in the Firm's Corporate Department
in Paris. He concentrates his practice on mergers and
acquisitions representing both private equity firms and public and
private companies. His work spans both domestic and cross-border
acquisitions and includes all aspects of M&A, both in France and
in the United States. He also advises clients in connection with
securities laws, recapitalizations, corporate governance and other
general corporate matters. Mr. Genicot received his JD from the
University of California, Los Angeles, School of Law in 2001,
where he was elected to the Order of the Coif, and his BA from the
University of California, Los Angeles in 1998. He is admitted to
practice law in New York, Massachusetts and Paris.
Fried, Frank, Harris, Shriver & Jacobson LLP is a leading
international law firm with more than 500 attorneys in offices in
New York, Washington, D.C., London, Paris, Frankfurt, Hong Kong
and Shanghai. Fried Frank lawyers regularly represent many of the
world's leading corporations and financial institutions. The Firm
offers legal counsel on antitrust and competition; bankruptcy and
restructuring; benefits and compensation; corporate matters,
including asset management, capital markets, corporate governance,
financings, mergers and acquisitions, and private acquisitions and
private equity; energy, alternative energy and climate change;
financial institutions; government investigations and regulatory
counseling including internal investigations and monitoring,
securities enforcement and regulation and white-collar criminal
defense; insurance; intellectual property and technology;
international trade; litigation including arbitration and
alternative dispute resolution, commercial litigation,
environmental litigation, government contracts, securities and
shareholder litigation; real estate; tax; and trusts and estates.
* BOOK REVIEW: Distressed Investment Banking - To the Abyss and
Back
---------------------------------------------------------------
Author: Henry T. Owsley and Peter S. Kaufman
Publisher: Beard Books
Hardcover: 231 pages
List Price: $74.95
by Henry Berry
The authors head a consulting firm that they named the The Gordian
Group. That name was chosen to imply that, like Alexander the
Great cutting through the Gordian knot of myth, their consulting
group can cut through the problems facing distressed companies.
Owsley and Kaufman accomplish this by contacting the various
stakeholders and investigating all relevant factors of the
problems facing a distressed company. With this broad-ranging
approach, Owsley and Kaufman identify and isolate crucial problems
and provide experienced, practicable guidance for resolving them.
Or as the authors put it, "We seek not merely to unravel thorny
financial 'knots' . . . we seek to slice through them."
In this case, the name of the group is not just an inspired
marketing image. As the text of the book and examples from the
firm's work with clients evidence, they have developed an approach
that deals with the knottiest of problems facing distressed
companies and do so to the satisfaction of a range of
stakeholders. The premise of this approach is that "conflicts of
interest are intolerable, and that large investment banks cannot
help but have conflicts of interest when working in the distressed
patch."
As anyone familiar with this field knows, buying and selling a
distressed company commonly leaves big winners and big losers.
Certain groups, often top executives and the investment group
purchasing a distressed company, profit from the sale. Other
groups, often stockholders and employees, lose out. Of course,
avoiding or absolving conflicts of interest in the interest of
fairness to stakeholders at all levels and in all quarters is not
only desirable to allow a pending sale of a distressed company to
progress smoothly, but is also required by law. However, as the
lopsided results of many sales demonstrate, equitable results do
not happen often. The object of this book is to provide advice
and lessons to ensure that equitable results do happen more often
than not.
Owsley and Kaufman realize that, when it comes to resolving
problems with distressed companies, there is "no silver bullet
solution [to be] found that makes everyone wealthy and happy and
whole." The situations of distressed companies have, in most
cases, been years in the making, often exacerbated by a corporate
culture that is "more likely to fiddle while a lot of other
people's money burns." The key to increasing and insuring fairer
outcomes of distressed situations is communication with all
stakeholders. This communication not only gets the varied
stakeholders involved in the process of dealing with the
distressed situation, but also brings their respective concerns,
ideas, resources, expectations, and hopes into the open so that no
one group such as top executives or an investment group can take
over the process for its exclusive ends.
What is unique about Owsley's and Kaufman's book is that it moves
the crux of considerations and related activities regarding
distressed corporations from the technicalities of financial
issues to the rightful interests of a network of stakeholders.
This does not mean that resolving disagreements will be any
different than they might be otherwise; nor will the amount of
cash involved in a distressed situation be different. However,
the authors do offer invaluable advice on how to abet the process
by recognizing the necessity of an equitable distribution of the
sacrifices in distressed situations.
Principles of the Gordian Group consulting firm for distressed
companies, Henry Owsley and Peter Kaufman have been active in
varied parts of this business field for many years. They are
authors of numerous books.
*********
Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable. Those sources may not,
however, be complete or accurate. The Monday Bond Pricing table
is compiled on the Friday prior to publication. Prices reported
are not intended to reflect actual trades. Prices for actual
trades are probably different. Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind. It is likely that some entity
affiliated with a TCR editor holds some position in the issuers'
public debt and equity securities about which we report.
Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than $3 per
share in public markets. At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets. A company may establish reserves on its balance sheet for
liabilities that may never materialize. The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.
A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR. Submissions about insolvency-
related conferences are encouraged. Send announcements to
conferences@bankrupt.com/
On Thursdays, the TCR delivers a list of recently filed
Chapter 11 cases involving less than $1,000,000 in assets and
liabilities delivered to nation's bankruptcy courts. The list
includes links to freely downloadable images of these small-dollar
petitions in Acrobat PDF format.
Each Friday's edition of the TCR includes a review about a book of
interest to troubled company professionals. All titles are
available at your local bookstore or through Amazon.com. Go to
http://www.bankrupt.com/books/to order any title today.
Monthly Operating Reports are summarized in every Saturday edition
of the TCR.
The Sunday TCR delivers securitization rating news from the week
then-ending.
For copies of court documents filed in the District of Delaware,
please contact Vito at Parcels, Inc., at 302-658-9911. For
bankruptcy documents filed in cases pending outside the District
of Delaware, contact Ken Troubh at Nationwide Research &
Consulting at 207/791-2852.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter is a daily newsletter co-published
by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland,
USA. Marites Claro, Joy Agravante, Rousel Elaine Tumanda, Howard
C. Tolentino, Joseph Medel C. Martirez, Denise Marie Varquez,
Philline Reluya, Ronald C. Sy, Joel Anthony G. Lopez, Cecil R.
Villacampa, Sheryl Joy P. Olano, Carlo Fernandez, Christopher G.
Patalinghug, and Peter A. Chapman, Editors.
Copyright 2010. All rights reserved. ISSN: 1520-9474.
This material is copyrighted and any commercial use, resale or
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re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers. Information contained
herein is obtained from sources believed to be reliable, but is
not guaranteed.
The TCR subscription rate is $775 for 6 months delivered via e-
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are $25 each. For subscription information, contact Christopher
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*** End of Transmission ***