/raid1/www/Hosts/bankrupt/TCR_Public/100513.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Thursday, May 13, 2010, Vol. 14, No. 131
Headlines
131 ROYAL: Case Summary & 9 Largest Unsecured Creditors
1470 PERRINEVILLE: Case Summary & 4 Largest Unsecured Creditors
ADA MOTEL: Voluntary Chapter 11 Case Summary
ADVANCED MICRO: Files Form 10-Q for March 27 Quarter
ADVANCED MICRO: Names Nine Individuals Elected to Board
ADVANCED MICRO: S&P Puts 'B-' Rating on CreditWatch Positive
AAER INC: Obtains June 2 Extension of CCAA Stay Period
ALAN CROMPTON: Case Summary & 20 Largest Unsecured Creditors
ALEXANDER PROPERTY: Voluntary Chapter 11 Case Summary
AMERICAN CAPITAL: Restructuring to Give Medium Term Flexibility
AMERICAN HOSPITALITY: Case Summary & Creditors List
ANDERSON HOMES: Can Sell Certain Properties and Pay Closing Costs
ANDERSON TOOL: Case Summary & 20 Largest Unsecured Creditors
ARCH ALUMINUM: Has Until July 30 to Propose Chapter 11 Plan
ARVINMERITOR INC: Swings to $17MM Net Income in March 31 Quarter
ASSOCIATED BANK: S&P Puts 'BB+/B' Rating on CreditWatch Negative
AUTUMN WOODS: Case Summary & 8 Largest Unsecured Creditors
AVSTAR FUEL: Files for Chapter 11 Bankruptcy Protection
B-G&G INVESTORS: Case Summary & 20 Largest Unsecured Creditors
B-VV1, LLC: Voluntary Chapter 11 Case Summary
BARRINGTON GARDEN: Voluntary Chapter 11 Case Summary
BARRY WASSERMAN: Case Summary & 20 Largest Unsecured Creditors
BARZEL INDUSTRIES: Has Until July 12 to Propose Chapter 11 Plan
BEAZER HOMES: Issues $500 Million in Senior Secured Notes
BERNARD MADOFF: NY Attorney General Sues Ivy and Ex-Officers
BI-LO LLC: Emerges from Chapter 11 Protection
BROWN PUBLISHING: Court Extends Filing of Schedules Until May 31
BROWN PUBLISHING: Taps K&L Gates as Bankruptcy Counsel
BROWN PUBLISHING: Wants to Hire Epiq as Claims & Noticing Agent
CANWEST GLOBAL: Creditor Group to Buy Canwest LP For $1.1 Billion
CAPMARK FINANCIAL: Court OKs Use of $20MM Cash Collateral
CAPMARK FINANCIAL: Court OKs Modified Incentive Plan
CAPMARK FINANCIAL: KPMG LLP Provides Additional Work
CARITAS HEALTH: Plan Exclusivity Extended on Interim
CARLOS F. ESCRIBANO: Case Summary & Unsecured Creditors
CHRYSLER LLC: Liquidating Plan Declared Effective April 30
CHRYSLER LLC: Chrysler Group Wins 1st Dealer Arbitration Case
CIVIX SUNRISE: Case Summary & 6 Largest Unsecured Creditors
CLOROX COMPANY: Files Form 10-Q for March 31 Quarter
CONGOLEUM CORP: Seeks Approval for $40 Million Exit Financing
COOPER-STANDARD: Obtains Confirmation of Plan of Reorganization
COOPER-STANDARD: Plan Gets Overwhelming Creditor Support
COOPER-STANDARD: Proposes to Obtain Working Capital Facility
COOPER-STANDARD: Wins Nod for Exit Financing Documents
COOPER-STANDARD: Files 13-Week Cash Flow Forecast
COYOTES HOCKEY: NHL Suit vs. Ex-Owner Transferred to Arizona
CPI INTERNATIONAL: Comtech Deal Won't Affect Moody's 'B1' Rating
D I OF NATCHEZ: Voluntary Chapter 11 Case Summary
FRANKLIN GOODMAN: Voluntary Chapter 11 Case Summary
DALLAS MAVERICKS: Minority Owner Seeks Receivership
DANIEL CHANG: Files List of 10 Largest Unsecured Creditors
DANIEL CHANG: Files Schedules of Assets & Liabilities
DANIEL CHANG: Wants to Hire Byrd & Wiser as Bankruptcy Counsel
DIAMOND BAY: Court Dismisses Bankruptcy Case
DIKA-LAKEVIEW, LLC: Case Summary & 12 Largest Unsecured Creditors
DON LOPEZ: Case Summary & 11 Largest Unsecured Creditors
DOT VN: Begins Commercialization of Vietnamese Internet Portal
DOT VN: Taps CCG to Assist on Shareholder Communications
DOVEVIEW LLC: Case Summary & 3 Largest Unsecured Creditors
EAGLE RIVER: Case Summary & 20 Largest Unsecured Creditors
ELBIE GROUP: Case Summary & 2 Largest Unsecured Creditors
EMMIS COMMUNICATIONS: Martin Capital Holds 4.4% of Common Stock
ENERGY TRANSFER EQUITY: Fitch Affirms 'BB-' Issuer Default Rating
FAIRFIELD RESIDENTIAL: Takes Brookfield's $180MM Investment Deal
FLEETWOOD ENTERPRISES: Can Use BofA's Cash Until July 15
FLEETWOOD ENTERPRISES: Plan Confirmation Hearing Set for June 15
FORBES MEDI-TECH: Posts C$842,000 Net Loss in Q1 2010
FOUNTAIN VILLAGE: Can Use Prepetition Lenders Cash Until May 24
FX LUXURY: Loses Bid to Continue Paying Lawyers, Accountants
GALLOWAY LUMBER: Case Summary & 20 Largest Unsecured Creditors
GENERAL MOTORS: Senator to Block PBGC Pick Over Delphi Pensions
GENERAL MOTORS: Mulls Buying Back Auto-Lending Arm
GEORGE PAGLIARO: Case Summary & 20 Largest Unsecured Creditors
GIN KIN: Voluntary Chapter 11 Case Summary
GLITNIR BANK: Files US$2BB Legal Claim vs. Principal Sharheolder
GLOBAL ENERGY: Has Until June 30 to Propose Chapter 11 Plan
GLOBAL ENERGY: Two New Members in Unsecured Creditors Committee
GRIGIO TEMPE: Files for Chapter 11 Bankruptcy Protection
GULF COAST GLASS: Case Summary & 20 Largest Unsecured Creditors
GULFSTREAM INT'L: Cherry Bekaert Raises Going Concern Doubt
HAWAIIAN TELCOM: Submits Post-Confirmation Report for Q1
HCA INC: Fitch Puts 'B' Issuer Default Rating on Positive Watch
HEFFLER HOLDINGS: Case Summary & 3 Largest Unsecured Creditors
HOLIDAY INN: Files for Bankruptcy to Stop Foreclosure
INTERNATIONAL COAL: Files Form 10-Q for March 31 Quarter
IMPLANT SCIENCES: DMRJ Increases Line of Credit, Loan Maturity
IMPLANT SCIENCES: Marcum Replaces UHY LLP as Auditor
IMPLANT SCIENCES: Seeks Stockholders' OK to Issue 200MM Shares
J & L: Case Summary & 5 Largest Unsecured Creditors
JACKSON COMMUNITY: Voluntary Chapter 11 Case Summary
JEFFREY ALBANESE: Voluntary Chapter 11 Case Summary
JOHN WATFORD: Case Summary & 20 Largest Unsecured Creditors
KELLEE BERGENDAHL: Voluntary Chapter 11 Case Summary
KAILASH DEVELOPMENT: Case Summary & Largest Unsecured Creditor
KELLY THEOBALD: Case Summary & 9 Largest Unsecured Creditors
KEVIN CHOI: Voluntary Chapter 11 Case Summary
KIMBERLY FONG: Case Summary & 20 Largest Unsecured Creditors
KING PHARMACEUTICALS: S&P Affirms 'BB' Corporate Credit Rating
L G INVESTMENT: Voluntary Chapter 11 Case Summary
LEHMAN BROTHERS: Creditors Seek to Block SunCal Litigation Bid
LEON MOORE: Files for Bankruptcy Protection Under Chapter 7
MACY'S INC: S&P Raises Corporate Credit Rating to 'BB+'
MARTHA ERNST: Case Summary & Largest Unsecured Creditor
MATRIX DEVELOPMENT: Wins Confirmation of Chapter 11 Plan
MERIT MINING: Closes 1st Tranche of $15.5MM Private Placement
MER-LYN FARMS: Case Summary & xx Largest Unsecured Creditors
MESA AIR GROUP: Plan Exclusivity Extended Until September 2
MESA AIR GROUP: Removal Period Extended Until August 3
MESA AIR GROUP: Proposes to Settle Aircraft Lease Rejection Claims
METALS USA: Files Form 10-Q Report for March 31 Quarter
MICHAEL FISCHMAN: Case Summary & 20 Largest Unsecured Creditors
MICHAEL LIBERA: Case Summary & 20 Largest Unsecured Creditors
MIDDLEBROOK PHARMACEUTICALS: Has OK for KCC as Claims Agent
MIRODDI IMAGING: Case Summary & 18 Largest Unsecured Creditors
MONDRIAN TTL: Case Summary & 19 Largest Unsecured Creditors
MPF CORP: To Seek Plan Confirmation on June 9
MT CALIFORNIA: Voluntary Chapter 11 Case Summary
NATIONAL CENTURY: FBI Offers $10,000 Reward for Parrett's Arrest
NATIONAL CENTURY: VI/XII Trust Files Report for March 31 Quarter
NATIONAL CENTURY: UAT Files Report for March 31 Quarter
NORTHERN MARINE: Voluntary Chapter 11 Case Summary
OC1 BUSH: Case Summary & 4 Largest Unsecured Creditors
OCEAN PARK (TOP): Case Summary & 20 Largest Unsecured Creditors
OCEAN PARK (TOY): Case Summary & 20 Largest Unsecured Creditors
PASADENA PLAYHOUSE: Files for Ch. 11 due to Severe Financial Woes
PAUL STEADMAN: Files Schedules of Assets & Liabilities
PAUL STEADMAN: Wants Nancy E. Johnson as Bankruptcy Counsel
PINNACLES DEVELOPMENT: Case Summary & 11 Largest Unsec. Creditors
PLAZA CACHE: Voluntary Chapter 11 Case Summary
PORTFOLIO INVESTMENTS: Voluntary Chapter 11 Case Summary
PROJECT ORANGE: Gets 14-Day Extension of Filing of Schedules
PROJECT ORANGE: Taps Epiq Bankruptcy as Claims & Noticing Agent
PROTECTION ACQUISITION: Moody's Puts 'B2' Corporate Family Rating
PROTECTION ONE: S&P Affirms Corporate Credit Rating at 'B+'
QUALITY CANDY: Gets $2.2 Million Offer From Investors
RADIENT PHARMACEUTICALS: CEO MacLellan Gets $517,940 as 2009 Pay
RADIENT PHARMACEUTICALS: Registers 63,447,862 Shares
RAUL LOPEZ: Case Summary & 5 Largest Unsecured Creditors
RAYNOL, LLC: Voluntary Chapter 11 Case Summary
READER'S DIGEST: Judge Approves $37 Mil. Professional Fees
REGAL ENTERTAINMENT: Files Form 10-Q for March 31 Quarter
RICHFIELD GARDEN: Voluntary Chapter 11 Case Summary
SAILBOAT PROPERTIES: Case Summary & 6 Largest Unsecured Creditors
SAINT VINCENTS: Claimant Wants Lift Stay to Collect Settlement
SAINT VINCENTS: Emergency Department Closed Effective April 30
SEDGWICK HOLDINGS: Moody's Assigns 'B2' Corporate Family Rating
SIMMONS BEDDING: Partners with Polyurethane Foam Suppliers
SIX FLAGS: Al Weber to Serve as President and Interim CEO
SMITHFIELD FOODS: Moody's Keeps B2 Corporate Family Rating
SPANSION INC: Reaches $8 Million Settlement Deal in WARN Suit
SPANSION INC: S&P Raises Corporate to 'B' Following Emergence
STANDARD PACIFIC: Gets Proceeds from $300 Million Notes Offering
STERLING MINING: Silver Opportunity Concludes Assets Acquisition
STEVEN NIKOLICH: Voluntary Chapter 11 Case Summary
SUD PROPERTIES: Case Summary & 8 Largest Unsecured Creditors
SUMNER REGIONAL: Court Extends Filing of Schedules Until June 3
SUMNER REGIONAL: Files List of 20 Largest Unsecured Creditors
SUMNER REGIONAL: Taps Proskauer Rose as Bankruptcy Counsel
SUMNER REGIONAL: Wants to Hire Epiq Bankruptcy as Claims Agent
SUNNYVALE LOT: Voluntary Chapter 11 Case Summary
SYNCORA HOLDINGS: Units Files Quarterly Statements
TERESSA HUGHES: Case Summary & 20 Largest Unsecured Creditors
TERRA PROPERTIES: Case Summary & 6 Largest Unsecured Creditors
THEFLYONTHEWALL.COM: Judge Won't to Lift Injunction Pending Appeal
TAUBMAN CENTERS: Moody's Affirms 'B1' Preferred Stock Rating
TEMPLE-INLAND INC: Moody's Hikes 'Ba1' Outlook to Positive
TENET HEALTHCARE: Posts $95 Million Net Income for March 2010
TI CYPRESS: Case Summary & 6 Largest Unsecured Creditors
TI JOHN: Case Summary & 8 Largest Unsecured Creditors
TI WEST: Case Summary & 4 Largest Unsecured Creditors
TRICO SHIPPING: Moody's Cuts Corporate Family Rating to 'Caa3'
UNIVERSAL SALES: Case Summary & 20 Largest Unsecured Creditors
UNO RESTAURANT: Disclosure Statement Wins Judge Approval
USEC INC: Posts $9.7 Net Loss for March 31 Quarter
UTSTARCOM INC: Amends Common Stock Deal with Elite Noble
UTSTARCOM INC: Posts $15.9 Million Net Loss for First Quarter
UTSTARCOM INC: Selects Edmond Cheng as New Chief Financial Officer
VALASSIS: Commences Cash Tender Offer for Up to $270MM of Notes
VALENTIN OLMO: Case Summary & 4 Largest Unsecured Creditors
VAZQUEZ ROSARIO: Case Summary & 4 Largest Unsecured Creditors
VENTANA HILLS: Has Until June 1 to File Plan of Reorganization
VISTEON CORP: Terms of 2nd Amended Plan; D.S. Hearing May 19
VISTEON CORP: Proposes Protocol for Rights Offering
VISTEON CORP: Insists on Keeping Plan Exclusivity
VISTEON CORP: Files Rule 2015.3 Report for December
WENDY'S/ARBY'S GROUP: S&P Affirms 'B+' Corporate Credit Rating
YOUNG BROADCASTING: Joint Plan of Reorganization Confirmed
WEST VIEW: Files Schedules of Assets & Liabilities
WEST VIEW: Taps Zorrilla & Associates as Bankruptcy Counsel
WINDER RENEWABLE: Wants to Hire Heller Draper as Bankr. Counsel
WORTHMORE RENEWABLE: Asks for 15-Day Extension to File Schedules
WORTHMORE RENEWABLE: Taps Heller Draper as Bankruptcy Counsel
WORTHMORE RENEWABLE: Wants 15-Day Extension of Filing of Schedules
YRC WORLDWIDE: Amends Credit Agreement with JPMorgan Chase
YRC WORLWIDE: Posts $274.1 Million Net Loss for March 31 Quarter
* Chapter 11 Cases with Assets & Liabilities Below $1,000,000
*********
131 ROYAL: Case Summary & 9 Largest Unsecured Creditors
-------------------------------------------------------
Debtor: 131 Royal Palm Associates, LLC
2760 N. Atlantic Boulevard
Fort Lauderdale, FL 33308
Bankruptcy Case No.: 10-22221
Chapter 11 Petition Date: May 5, 2010
Court: U.S. Bankruptcy Court
Southern District of Florida (Fort Lauderdale)
Judge: Raymond B. Ray
Debtor's Counsel: Bart A. Houston, Esq.
200 E Broward Boulevard #1110
Fort Lauderdale, FL 33301
Tel: (954) 453-8000
Fax: (954) 453-8010
E-mail: bhouston@gjb-law.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 9 largest unsecured creditors
filed together with the petition is available for free at
http://bankrupt.com/misc/flsb10-22221.pdf
The petition was signed by Bruce Matzel, manager.
1470 PERRINEVILLE: Case Summary & 4 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: 1470 Perrineville Road Associates, LLC
1470 Perrineville Road
Monroe Township, NJ 08831
Bankruptcy Case No.: 10-23996
Chapter 11 Petition Date: May 6, 2010
Court: United States Bankruptcy Court
District of New Jersey (Trenton)
Judge: Raymond T. Lyons Jr.
Debtor's Counsel: Frank Armenante, Esq.
Malsbury & Armenante, Esqs.
12 N. Main Street
P.O. Box 157
Allentown, NJ 08501
Tel: (609) 259-7944
Fax: (609) 259-0872
E-mail: frankp@malsarmlaw.com
Scheduled Assets: $2,460,000
Scheduled Debts: $4,393,224
A list of the Company's 4 largest unsecured creditors filed
together with the petition is available for free at
http://bankrupt.com/misc/njb10-23996.pdf
The petition was signed by Barry Wasserman, manager.
ADA MOTEL: Voluntary Chapter 11 Case Summary
--------------------------------------------
Debtor: ADA Motel, LLC
704 York Street
Myrtle Beach, SC 29577
Bankruptcy Case No.: 10-03335
Chapter 11 Petition Date: May 6, 2010
Court: United States Bankruptcy Court
District of South Carolina (Charleston)
Debtor's Counsel: Michael H. Wells, Esq.
Coastal Law, LLC
1314 Second Avenue
Conway, SC 29526
Tel: (843) 488-5000
E-mail: kcronos@coastal-law.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 Leslie Keith Roten, owner.
ADVANCED MICRO: Files Form 10-Q for March 27 Quarter
----------------------------------------------------
Advanced Micro Devices filed with the Securities and Exchange
Commission its Form 10-Q for the quarterly period ended March 27,
2010.
The Company previously said in an earnings release that net income
was $257 million on $1.57 billion of revenue for the first quarter
ended March 27, 2010.
As of March 27, 2010, AMD had total assets of $5.232 billion,
total current liabilities of $1.645 billion, deferred income taxes
of $1 million, long-term debt and capital lease obligations, less
current portion of $2.601 billion, and other long-term liabilities
of $189 million; resulting in a stockholders' equity of
$796 million.
A full-text copy of the Company's Form 10-Q is available at
no charge at http://ResearchArchives.com/t/s?61d7
About Advanced Micro Devices
Headquartered in Sunnyvale, California, Advanced Micro Devices
Inc. (NYSE: AMD) -- http://www.amd.com/-- provides innovative
processing solutions in the computing, graphics and consumer
electronics markets.
* * *
Advanced Micro carries a 'B-' corporate credit rating from
Standard & Poor's and a 'Ba3' corporate family rating from
Moody's.
ADVANCED MICRO: Names Nine Individuals Elected to Board
-------------------------------------------------------
Advanced Micro Devices Inc. disclosed the results of the voting on
the proposals submitted to stockholders at 2010 Annual Meeting of
Stockholders held on April 29.
These individuals were elected to the Company's Board of
Directors: W. Michael Barnes, John E. Caldwell, Bruce L. Claflin,
Craig A. Conway, Nicholas M. Donofrio, H. Paulett Eberhart,
Derrick R. Meyer, Waleed Al Mokarrab Al Muhairi, and Robert B.
Palmer.
About Advanced Micro Devices
Headquartered in Sunnyvale, California, Advanced Micro Devices
Inc. (NYSE: AMD) -- http://www.amd.com/-- provides innovative
processing solutions in the computing, graphics and consumer
electronics markets.
* * *
Advanced Micro carries a 'B-' corporate credit rating from
Standard & Poor's and a 'Ba3' corporate family rating from
Moody's.
ADVANCED MICRO: S&P Puts 'B-' Rating on CreditWatch Positive
------------------------------------------------------------
Standard & Poor's Ratings Services said it placed its 'B-'
corporate credit and senior unsecured ratings on Sunnyvale,
Calif.-based graphics and microprocessor designer Advanced Micro
Devices Inc. on CreditWatch with positive implications.
"Operating trends for AMD have consistently improved over the past
three quarters," explained Standard & Poor's credit analyst Lucy
Patricola. Revenues increased 34% year on year in the March
quarter, following 42% growth in the earlier quarter. AMD margins
have expanded sequentially, reflecting a favorable product mix and
higher average selling prices. As a result, EBITDA generation has
remained strong and sharply improved from the first half of 2009.
AAER INC: Obtains June 2 Extension of CCAA Stay Period
------------------------------------------------------
AAER Inc. disclosed that the Quebec Superior Court issued an order
providing AAER with an additional period of protection under the
Companies' Creditors Arrangement Act (Canada). The initial order,
which was first granted under the CCAA in favour of AAER on April
8, 2010, has now been extended until June 2, 2010, during which
time creditors and other third parties will continue to be stayed
from taking steps against AAER. The purpose of the stay of
proceedings is to provide AAER with an opportunity to develop a
comprehensive business restructuring plan for consideration by its
creditors and the Quebec Superior Court.
AAER has also obtained a procedural order relating to its process
for the determination of the claims of creditors and for the
upcoming creditors' meeting. According to the order, the claims
bar date has been set to May 31, 2010 and the creditors' meeting
date has been set to June 1st, 2010.
In the event any additional protection extension under the CCAA is
sought, it is AAER's intention to request that the court relieve
AAER of any obligation to call and hold an annual meeting of
shareholders on or before June 30, 2010 and extend the delay for
the calling and holding of such meeting.
Finally, AAER wishes to inform its shareholders that, further to
its press release dated April 23, 2010, AAER's securities are now
subject to a cease trade order issued by the securities regulatory
authorities on May 4, 2010. The trading in AAER's securities will
resume if and when AAER files its annual financial statements and
underlying financial documentation in accordance with applicable
securities laws.
About AAER
AAER is a wind turbine manufacturer located in Bromont, Quebec
that manufactures and maintains high capacity 1 MW or more wind
turbines principally for the North American market. Its strategy
is to progressively build its products' components to provide a
high level of reliability and competitive pricing to its
customers. AAER uses a portfolio of proven European technologies
to ensure the performance of its turbines in various wind
conditions and terrains. I ts stock is listed on the TSX Venture
Exchange (TSXV: AAE).
ALAN CROMPTON: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------
Joint Debtors: Alan Crompton
Denise Crompton
aka Denise Crompton-Kenney
dba Rapid White Smiles
fka Denise Rinck
Denise Kenney
10701 Capesthorne Way
Las vegas, NV 89135
Bankruptcy Case No.: 10-18380
Chapter 11 Petition Date: May 7, 2010
Court: U.S. Bankruptcy Court
District of Nevada (Las Vegas)
Judge: Bruce A. Markell
Debtor's Counsel: C. Andrew Wariner, Esq.
823 Las Vegas Boulevard SO, Suite 500
Las Vegas, NV 89101
Tel: (702) 953-0404
Fax: (702) 989-5388
E-mail: awariner@lvbklaw.com
Estimated Assets: $100,001 to $500,000
Estimated Debts: $1,000,001 to $10,000,000
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/nvb10-18380.pdf
The petition was signed by the Joint Debtors.
ALEXANDER PROPERTY: Voluntary Chapter 11 Case Summary
-----------------------------------------------------
Debtor: Alexander Property Investments, LLC
5500 Crooks Road
Troy, MI 48084
Bankruptcy Case No.: 10-55071
Chapter 11 Petition Date: May 5, 2010
Court: United States Bankruptcy Court
Eastern District of Michigan (Detroit)
Judge: Thomas J. Tucker
Debtor's Counsel: Morris B. Lefkowitz, Esq.
24100 Southfield Rd.
Suite 203
Southfield, MI 48075
Tel: (248) 559-0180
E-mail: morris.lefkowitz@yahoo.com
Scheduled Assets: $8,205,747
Scheduled Debts: $9,438,396
The Debtor did not file a list of its largest unsecured creditors
together with its petition.
The petition was signed by Hana Karcho-Polselli, member.
AMERICAN CAPITAL: Restructuring to Give Medium Term Flexibility
---------------------------------------------------------------
Over the past year, American Capital, Ltd., has been pursuing an
out-of-court restructuring with all unsecured creditors, which
includes banks and holders of both publicly and privately issued
debt.
In December 2009, Fitch downgraded ACAS' Issuer Default Rating to
'C'. The downgrade reflected Fitch's expectation that ACAS
intended to pursue a pre-packaged Chapter 11 plan of
reorganization if it failed to reach an out-of-court restructure
agreement with unsecured creditors. Also, in accordance with
Fitch's Coercive Debt Exchange criteria, published March 3, 2009,
based on the proposed terms of the exchange transaction and the
explicit threat of a bankruptcy filing in the event the exchange
offer is not approved, Fitch believed the proposed restructure
would be considered a CDE.
On May 3, 2010, ACAS commenced an offer to exchange its unsecured
public and private debt. The exchange offer is part of a
comprehensive restructuring of the company's unsecured
indebtedness and is intended to address non-compliance with
certain financial covenants and defaults relating to unsecured
debt. As part of the restructuring, the company is also
soliciting votes to accept a standby plan of reorganization under
which the creditors would receive substantially identical
consideration as the out-of-court restructure. Pursuant to a Lock
Up agreement, in the event ACAS files for bankruptcy, bank lenders
have agreed to support approval of a reorganization plan that
largely reflects the terms of the out-of-court restructure should
the company fail to obtain required approval of public and private
bondholders for the proposed debt exchange.
The proposed debt exchange and restructure terms include a pledge
of substantially all of the company's assets as collateral, an up-
front principal payment of $960 million, issuance of new notes and
loans totaling $1.4 billion. Terms of the new notes and loans
include principal amortization payments totaling $690 million and
revision of financial covenants and various maturity dates to
Dec. 31, 2013.
Fitch believes the renegotiated covenants will provide the company
with sufficient operating flexibility over the medium term,
barring recognition of significant unrealized depreciation.
Renegotiated covenants include debt service coverage requirement
to maintain a minimum ratio of adjusted operating cashflow to
interest expense of 1.2 times in 2010, 1.5x in 2011 and 1.3x
thereafter, and an asset coverage requirement to maintain minimum
total pledged assets to secured debt of 1.0x in at the end of any
quarter, 1.15x as of the end of at least one of any two
consecutive quarters in 2010, 1.2x in 2011, and 1.25x thereafter.
The company may elect to suspend the requirement if the VIX Index
is greater than or equal to 35 as measured on the average daily
close of the VIX Index over 10 consecutive days. The company may
elect to apply only as to one covenant measurement date and not
apply to any quarter in which the VIX Index is unable to be
determined or is not quoted. The company's ability to pay cash
dividends would be limited to no more than the minimum legally
required.
If creditors approve the debt exchange on June 1, 2010, Fitch will
downgrade ACAS' IDR to 'RD'. A rating of 'RD' indicates an issuer
has experienced an uncured payment default on a material financial
obligation but which has not entered into bankruptcy filings,
administration, receivership, liquidation or other formal winding-
up procedure, and which has not otherwise ceased business. In the
event the proposed debt exchange and restructure is not approved
by creditors and ACAS files for bankruptcy, Fitch will downgrade
the IDR to 'D'.
Subsequent to the downgrade to 'RD' or 'D', Fitch will evaluate
the company's prospects on a going forward basis, and assign
appropriate ratings. Given the company's expected need to
continue to sell investment assets to meet future debt
amortization payments and limited capital market access, Fitch
anticipates that the company's IDR will likely remain highly
speculative upon completion of a review of the reorganized firm.
Notching of restructured debt will reflect collateral available to
repay debt and likely recovery prospects given default
Fitch currently rates ACAS:
American Capital, LTD
-- IDR 'C';
-- Senior unsecured debt 'CCC/RR2'.
Based on a Recovery Rating of 'RR2', notching of the senior
unsecured debt rating remains above that of the IDR and continues
to reflect Fitch's belief that collateral available to creditors,
even on a stressed basis, provides superior recovery prospects
given default.
AMERICAN HOSPITALITY: Case Summary & Creditors List
---------------------------------------------------
Debtor: American Hospitality Group, LLC
dba Grand Island Holiday Inn
100 Whitehaven Road
Grand Island, NY 14072
Bankruptcy Case No.: 10-11887
Chapter 11 Petition Date: May 6, 2010
Court: U.S. Bankruptcy Court
Western District of New York (Buffalo)
Judge: Carl L. Bucki
Debtor's Counsel: Arthur G. Baumeister Jr., Esq.
Amigone, Sanchez, et al
1300 Main Place Tower
350 Main Street
Buffalo, NY 14202
Tel: (716) 852-1300
E-mail: abaumeister@amigonesanchez.com
Estimated Assets: $10,000,001 to $50,000,000
Estimated Debts: $10,000,001 to $50,000,000
The petition was signed by Howard L. Schweitzer, managing member.
Debtor's List of 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
U.S. Foodservice vendor $112,420
P.O. Box 644547
Pittsburgh, PA 15264-4547
Integrys Energy Services services $44,155
P.O. Box 13248
Green Bay, WI 54307-3248
Boulevard Produce vendor $24,464
855 Young Street
Tonawanda, NY 14150
North American Hockey credit $16,359
Micros Systems, Inc. vendor $16,082
Boylan, Brown, Code, Vigor & attorneys fees $14,308
Wilson, LLP
One Communications services $9,944
Everlasting Memories vendor $8,771
John W. Danforth Service Company vendor $8,306
Eaton Office Supply, Inc. vendor $7,691
NU Jr. Purple Eagles credit $7,080
Sealy Mattress Company vendor $6,551
Home Depot Supply vendor $6,531
Beacon Equipment Leasing services $5,933
Maximus Multimedia Int'l advertising $5,520
Productive Transportation Inc. transportation $5,047
JB Landscaping & Snowplowing services $5,034
Niagara University Athletics credit $5,000
Advanced Safety vendor $4,709
River Oaks Golf Club services $4,377
ANDERSON HOMES: Can Sell Certain Properties and Pay Closing Costs
-----------------------------------------------------------------
The Hon. Stephani W. Humrickhouse of the U.S. Bankruptcy Court for
the Eastern District of North Carolina authorized Anderson Homes,
Inc., and its debtor-affiliates to convey certain properties and
pay certain closing costs, including broker's commission, from the
sale proceeds, and transferring all actual or potential liens to
the proceeds of the sales.
About Anderson Homes, Inc.
Headquartered in Raleigh, North Carolina, Anderson Homes, Inc., et
al., are engaged in the development, construction and sale of
residential properties in the form of single-family homes,
townhomes and condominiums. Said properties are held for sale to
the public and constitute the Debtors' inventory, which the
Debtors sell in the ordinary course of business. The Debtors own,
construct improvements on, and sell (i) single-family houses and
townhomes in subdivisions known and referred to as Edgewater,
Bridgewater, Bridgewater West, Cobblestone, Haw Village,
Ridgefield, Amberlynn Valley, Cane Creek, Muirfield Village, Pine
Valley, Quail Meadows, Thornton Commons Place, Willow Ridge,
Creekside at Landon Farms, Keystone Crossing, Sterling Ridge,
Jeffries Creek, Briar Chapel, and Villas at Forest Hills, and (ii)
condominiums known as Blount Street Commons.
Anderson Homes and its units filed for Chapter 11 on March 16,
2009 (Bankr. E.D. N.C. Lead Case No. 09-02062). Gerald A.
Jeutter, Jr., Esq., and John A. Northen, Esq., at Northen Blue,
LLP, represent the Debtors in their restructuring effort. At the
time of the filing, Anderson Homes said it had total assets of
$17,190,001 and total debts of $13,742,840.
ANDERSON TOOL: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: Anderson Tool and Engineering Co., Inc.
dba Anderson Bow Company
1735 West 53rd Street
Anderson, IN 46013
Bankruptcy Case No.: 10-06716
Chapter 11 Petition Date: May 6, 2010
Court: U.S. Bankruptcy Court
Southern District of Indiana (Indianapolis)
Judge: Basil H. Lorch III
Debtor's Counsel: David R. Krebs, Esq.
Hostetler & Kowalik P.C.
101 W. Ohio Street, Suite 2100
Indianapolis, IN 46204
Tel: (317) 262-1001
Fax: (317) 262-1010
E-mail: drk@hostetler-kowalik.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
$4,110,036 while debts total $4,607,548.
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/insb10-06716.pdf
The petition was signed by Ted J. Fiock, president.
ARCH ALUMINUM: Has Until July 30 to Propose Chapter 11 Plan
-----------------------------------------------------------
The Hon. John K. Olson of the U.S. Bankruptcy Court for the
Southern District of Florida extended Arch Aluminum & Glass Co.,
Inc., et al.'s exclusive periods to file and solicit acceptances
for the proposed Chapter 11 Plan until July 30, 2010, and
September 30, 2010, respectively.
Tamarac, Florida-based Arch Aluminum & Glass Co., Inc. -- fka
Trident Consolidated Industries, Arch, Inc., and Arch Tulsa
Acquisition Co.; and dba Arch Mirror North, Arch Mirror South,
Architectural Safety Glass, Arch Mirror West, Arch Tempered Glass
Products, and Arch Deco Glass -- was founded in 1978 by Robert
Silverstein, as a small South Florida glass and metal distributor
with a single truck. During the 1980's the Company opened
fabrication facilities and additional distribution facilities in
Florida and the Northeast. The Company provides a comprehensive
line of products and services to more than 5,000 customers from 28
office, manufacturing and distribution facilities located in 19
states nationwide.
The Company filed for Chapter 11 bankruptcy protection on
November 25, 2009 (Bankr. S.D. Fla. Case No. 09-36232). The
Company listed $100,000,001 to $500,000,000 in assets and
$100,000,001 to $500,000,000 in liabilities.
The Company's affiliates -- Arch Aluminum L.C.; AWP, LLC, dba
Yale-Ogron; Arch Aluminum and Glass International Inc.; and AAG
Holdings, Inc. -- also filed separate Chapter 11 petition.
Paul J. Battista, Esq., at Genovese Jblove & Battista, P.A.,
assists the Debtors in their restructuring efforts. Schnader
Harrison Segal & Lewis LLP is the Debtors' special counsel.
Vincen J. Colistra at Phoenix Management Services is the Debtors'
restructuring services provider. Michael Dillahunt and Piper
Jaffrey & Co. is the Debtors' investment banker.
ARVINMERITOR INC: Swings to $17MM Net Income in March 31 Quarter
----------------------------------------------------------------
ArvinMeritor Inc. reported financial results for its second fiscal
quarter ended March 31, 2010.
The Company reported net income of $17.0 million on $1.2 billion
of revenue for quarter ended March 31, 2010, compared with a net
loss of $49.0 million on $962.0 million of revenue during the same
period a year ago. The Company attributes the increase in sale to
strengthening in most original equipment markets globally.
The Company's balance sheet at March 31, 2010, showed
$2.769 billion in total assets and $3.646 billion in total
liabilities, for a $877.0 million stockholders' deficit.
Stockholder's deficit was at $1.166 billion at March 31, 2009.
"We are pleased to report favorable earnings this quarter,
primarily due to ongoing strength in emerging markets and slightly
improved commercial vehicle volumes in North America and Europe,"
said Chip McClure, chairman, CEO and president. "I am also proud
of the hard work we've done to convert our earnings to cash which
resulted in our fourth consecutive quarter of positive free cash
flow."
For the second quarter of fiscal year 2010, ArvinMeritor posted
sales from continuing operations of $1.2 billion, an increase of
approximately 25 percent from the same period last year. This
increase is primarily due to strengthening in most original
equipment markets globally. Net income was $13 million, an
increase of $62 million from the prior year's second fiscal
quarter.
Adjusted EBITDA was $64 million, up $32 million from the same
period last year. The company had strong margin conversion on
incremental sales despite the return of temporary cost reductions
implemented in fiscal year 2009 and the reduction in demand for
certain military OEM and service products versus 2009.
Adjusted income from continuing operations was $15 million, or
$0.18 per diluted share, compared to an adjusted loss from
continuing operations of $11 million or $0.15 per diluted share,
in the same period last year. Adjustments were a net $1 million
benefit which included a loss on debt extinguishment of
$13 million offset by the reversal of income tax valuation
allowances and a gain on the settlement of a note receivable.
Free cash flow for the second quarter of fiscal year 2010 was
$45 million, an increase of $183 million compared to the prior
year's second fiscal quarter.
In the second quarter of fiscal year 2010, the company completed a
series of actions to enhance liquidity and strengthen its balance
sheet.
ArvinMeritor extended the maturity date on its revolving credit
facility to January 2014. In conjunction with this extension, the
size of the facility was reduced to $539 million through June
2011, and will further reduce to $396 million thereafter.
In March, the company issued in a public offering approximately
20 million shares of common stock at a price of $10.50 per share
resulting in approximately $200 million of net proceeds.
ArvinMeritor also issued in a public offering $250 million of
unsecured notes at an interest rate of 10.625 percent which mature
in March 2018. The majority of the proceeds from the sale of
those notes was used to fund the repurchase of $175 million of
its 8.75% notes due in 2012.
A full-text copy of the Company's earnings release is available
for free at http://ResearchArchives.com/t/s?61d8
About ArvinMeritor Inc.
Based in Troy, Michigan, ArvinMeritor, Inc. (NYSE: ARM) --
http://www.arvinmeritor.com/-- is a premier global supplier of a
broad range of integrated systems, modules and components to the
motor vehicle industry. The Company marks its centennial
anniversary in 2009, celebrating a long history of 'forward
thinking.' The company serves commercial truck, trailer and
specialty original equipment manufacturers and certain
aftermarkets, and light vehicle manufacturers.
ArvinMeritor reported $2.5 billion in total assets against
$3.61 billion in total liabilities, resulting to a stockholders'
deficit of $1.11 billion as of December 31, 2009.
* * *
In January 2010, Moody's Investors Service affirmed the Corporate
Family and Probability of Default ratings of ArvinMeritor, Inc.,
at 'Caa1'.
ASSOCIATED BANK: S&P Puts 'BB+/B' Rating on CreditWatch Negative
----------------------------------------------------------------
Standard & Poor's Ratings Services placed its 'BB+/B' ratings on
four bond issues supported by Associated Bank N.A. letters of
credit on CreditWatch with negative implications.
The long- and short-term components of S&P's ratings on the four
affected bond issues are based on S&P's long- and short-term
issuer credit ratings on Associated Bank (BB+/Watch Neg/B), and
address the full and timely payment of the bonds' regularly
scheduled interest, principal, and purchase price upon an optional
or mandatory tender, according to the transactions' terms.
Associated Bank provides credit and liquidity support for each
bond series in the form of a LOC.
The rating actions follow the April 28, 2010, placement of S&P's
'BB+/B' counterparty credit ratings on Associated Bank on
CreditWatch negative. Rating adjustments may be precipitated by,
among other things, changes in the rating assigned to any
financial institution that is providing an irrevocable LOC or by
amendments to the documentation governing the obligations.
AUTUMN WOODS: Case Summary & 8 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: Autumn Woods II, LLC
17818 Statesville Road
Suite 211
Cornelius, NC 28031
Bankruptcy Case No.: 10-31283
Chapter 11 Petition Date: May 6, 2010
Court: United States Bankruptcy Court
Western District of North Carolina (Charlotte)
Judge: J. Craig Whitley
Debtor's Counsel: Travis W. Moon, Esq.
Hamilton Moon Stephens Steele Martin
2020 Charlotte Plaza
201 S. College Street
Charlotte, NC 28244-2020
Tel: (704) 344-1117
E-mail: tmoon@lawhms.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 8 largest unsecured creditors filed
together with the petition is available for free at
http://bankrupt.com/misc/ncwb10-31283.pdf
The petition was signed by Phil M. Gandy, Jr., manager.
AVSTAR FUEL: Files for Chapter 11 Bankruptcy Protection
-------------------------------------------------------
Avstar Fuel Systems, together with affiliates Camtech Precision
Manufacturing and R&J National Enterprises, filed for Chapter 11,
listing assets of $12.86 million and debts of $28.77 million, Paul
Brinkmann at South Florida Business Journal reported.
According to the report, the Company owes $3.9 million to secured
lender Regions Bank. The Company's unsecured creditors include
Charlotte with a claim of $491,000, and 4-M Precision Stamping
with a claim of $305,474.
Avstar Fuel System designs, manufactures and overhauls carburetors
and fuel injection systems.
B-G&G INVESTORS: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: B-G&G Investors VII, LLC
2200 Westbed Parkway
New Orleans, LA 70114-4932
Bankruptcy Case No.: 10-11593
Chapter 11 Petition Date: May 6, 2010
Court: U.S. Bankruptcy Court
Eastern District of Louisiana (New Orleans)
Judge: Jerry A. Brown
Debtor's Counsel: Douglas S. Draper, Esq.
E-mail: dsd@hellerdraper.com
Tristan E. Manthey, Esq.
E-mail: tmanthey@hellerdraper.com
Heller Draper Hayden Patrick & Horn, LLC
650 Poydras Street, Suite 2500
New Orleans, LA 70130
Tel: (504) 299-3300
Fax: (504) 299-3399
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/laeb10-11593.pdf
The petition was signed by Howard Gyler, manager.
B-VV1, LLC: Voluntary Chapter 11 Case Summary
---------------------------------------------
Debtor: B-VV1, LLC
3455 Cliff Shadows Parkway, Suite 220
Las Vegas, NV 89129
Bankruptcy Case No.: 10-18284
Chapter 11 Petition Date: May 5, 2010
Court: U.S. Bankruptcy Court
District of Nevada (Las Vegas)
Judge: Bruce A. Markell
Debtor's Counsel: Georganne W. Bradley, Esq.
Kaempfer Crowell et al.
8345 West Sunset Road, Suite 250
Las Vegas, NV 89113
Tel: (702) 792-7000
Fax: (702) 796-7181
E-mail: gbradley@kcnvlaw.com
Estimated Assets: $10,000,001 to $50,000,000
Estimated Debts: $10,000,001 to $50,000,000
According to the schedules, the Company says that assets total
$33,001,500 while debts total $12,968,000.
The petition was signed by Thomas J. DeVore, Chief Operating
Officer of LEHM, LLC, its manager.
The list of creditors filed together with its petition does not
contain any entries.
Debtor-affiliate filing separate Chapter 11 petition:
Entity Case No. Petition Date
------ -------- -------------
B-SWDE3, LLC 09-29051 10/09/09
B-PVL1, LLC 09-29147 10/12/09
A-SWDE1, LLC 09-34216 12/29/09
A-JVP1, LLC 09-34236 12/29/09
B-SWDE2, LLC 09-33479 12/15/09
B-JVP1, LLC 10-16641 04/16/10
B-VLP2, LLC 10-16660 04/16/10
B-PVL2, LLC 10-16648 04/16/10
B-VLP1, LLC 10-16655 04/16/10
BARRINGTON GARDEN: Voluntary Chapter 11 Case Summary
----------------------------------------------------
Debtor: Barrington Garden Apartments, LLC
5014 16th Avenue
Suite 136
Brooklyn, NY 11204
Bankruptcy Case No.: 10-13743
Chapter 11 Petition Date: May 6, 2010
Court: United States Bankruptcy Court
Eastern District of Pennsylvania (Philadelphia)
Judge: Eric L. Frank
Debtor's Counsel: Jeffrey T. Grossman, Esq.
Grossman Law Firm
1333 Race Street
Philadelphia, PA 19107
Tel: (215) 231-9936
Fax: (215) 665-1393
E-mail: jgrossman@grossmanfirm.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Debtor did not file a list of its largest unsecured creditors
together with its petition.
The petition was signed by Joe Weiss, managing member.
BARRY WASSERMAN: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: Barry S. Wasserman
1470 Perrineville Road
Monroe Township, NJ 08831
Bankruptcy Case No.: 10-24001
Chapter 11 Petition Date: May 6, 2010
Court: United States Bankruptcy Court
District of New Jersey (Trenton)
Judge: Raymond T. Lyons Jr.
Debtor's Counsel: Frank Armenante, Esq.
Malsbury & Armenante, Esqs.
12 N. Main Street
P.O. Box 157
Allentown, NJ 08501
Tel: (609) 259-7944
Fax: (609) 259-0872
E-mail: frankp@malsarmlaw.com
Scheduled Assets: $14,279
Scheduled Debts: $5,574,291
A list of the Company's 20 largest unsecured creditors filed
together with the petition is available for free at
http://bankrupt.com/misc/njb10-24001.pdf
The petition was signed by Barry S. Wasserman.
BARZEL INDUSTRIES: Has Until July 12 to Propose Chapter 11 Plan
---------------------------------------------------------------
The Hon. Christopher S. Sontchi of the U.S. Bankruptcy Court for
the District of Delaware extended Barzel Industries, Inc.'s
exclusive periods to file and solicit acceptances for a proposed
Chapter 11 Plan until July 12, 2010, and September 9, 2010,
respectively.
About Barzel Industries
Norwood, Massachusetts-based Barzel Industries, Inc., processes
and distributes steel. The Company manufactures steel for the
construction and industrial manufacturing industries, and produces
finished commercial racking products.
Barzel recorded assets of $370,145,000 against debts of
$375,412,000 as of May 30, 2009.
Barzel Industries -- aka Novamerican Steel Inc. and Symmetry
Holdings Inc. -- and seven affiliates filed for Chapter 11 on
September 15, 2009 (Bankr. D. Del. Case No. 09-13204). Judge
Christopher S. Sontchi presides over the cases. J. Kate Stickles,
Esq., at Cole, Schotz, Meisel, Forman & Leonard, in Wilmington,
Delaware, and Karen M. McKinley, Esq., and Norman L. Pernick,
Esq., at Cole Scholtz Meisel Forman Leonard, P.A., in Wilmington,
Delaware, serve as legal counsel.
On the same day, the Company filed applications for relief under
the Canadian Companies' Creditors Arrangement Act in the Ontario
Superior Court of Justice -- Commercial List.
Barzel Industries and substantially all of its U.S. and Canadian
subsidiaries have an Asset Purchase Agreement with Chriscott USA
Inc. and 4513614 Canada Inc. pursuant to which the Buyer will
purchase substantially all of the assets of the Sellers for
$65.0 million in cash, subject to certain adjustments, and assume
certain liabilities from the Sellers associated with the purchased
assets. The deal is subject to approval by both U.S. and Canadian
Courts.
BEAZER HOMES: Issues $500 Million in Senior Secured Notes
---------------------------------------------------------
Berry Plastics Corporation issued $500,000,000 in aggregate
principal amount of 9.5% Second Priority Senior Secured Notes due
2018 pursuant to an indenture dated April 30, 2010, by and among
Berry, U.S. Bank National Association, as trustee. A full-text
copy of the Indenture is available for free at
http://ResearchArchives.com/t/s?61db
About Berry Plastics
Berry Plastics Corporation manufactures and markets plastic
packaging products, plastic film products, specialty adhesives and
coated products. At June 27, 2009 the Company had 64 production
and manufacturing facilities, with 58 located in the United
States. Berry is a wholly-owned subsidiary of Berry Plastics
Group, Inc. Berry Group is primarily owned by affiliates of
Apollo Management, L.P. and Graham Partners. Berry, through its
wholly owned subsidiaries operates in four primary segments: Rigid
Open Top, Rigid Closed Top, Flexible Films, and Tapes/Coatings.
The Company's customers are located principally throughout the
United States, without significant concentration in any one region
or with any one customer.
At September 26, 2009, the Company had total assets of
$4.401 billion against total liabilities of $4.079 billion,
resulting in stockholders' equity of $321.7 million. Berry
Plastics reported a net loss of $26.2 million for the fiscal year
ended September 26, 2009, from a net loss of $101.1 million for
fiscal year ended September 27, 2008, and net loss of
$116.2 million for fiscal year ended September 27, 2008.
* * *
Standard & Poor's Ratings Services said that it assigned its 'CCC'
senior secured debt rating to Berry Plastics Corp.'s proposed
offering of $300 million of second-priority senior secured notes
due 2018. The recovery rating is '6', indicating S&P's
expectation for negligible (0%-10%) recovery for the holders of
these notes in the event of a payment default.
BERNARD MADOFF: NY Attorney General Sues Ivy and Ex-Officers
------------------------------------------------------------
The Wall Street Journal's Jamie Heller reports that New York
Attorney General Andrew Cuomo sued Ivy Asset Management LLC and
two of its former senior officers, claiming the men learned
"disturbing facts" about Bernard Madoff's investment firm but "hid
the truth" from clients to whom they recommended Mr. Madoff.
According to the Journal, the suit contends they did so to
maintain their standing among asset managers and to generate fees.
There isn't an allegation they knew Mr. Madoff was perpetrating a
Ponzi scheme, the Journal notes.
The civil lawsuit was filed in a New York state court on Tuesday.
The defendants include Ivy co-founders Lawrence Simon and Howard
Wohl.
According to the Journal, a statement on behalf of Mr. Wohl said
"he urged them to drastically reduce their positions in Madoff
investments." The Journal also relates Paul Shechtman, Esq., a
lawyer for Mr. Simon, said Mr. Simon's "sound advice was
consistently ignored. Anyone who knows Larry Simon knows that he
has served his clients faithfully and honestly." They said they
would fight the charges.
The Journal relates Ivy was sold in 2000 to the Bank of New York
and later became part of BNY Mellon Asset Management. According
to the report, the suit alleges that Messrs. Simon and Wohl each
obtained more than $100 million as part of the sale. This year,
BNY Mellon began to liquidate Ivy.
The Journal also reports that, according to the suit, 76 upstate
New York union pension and welfare plans lost more than
$150 million needed to fund retirements due to the alleged Ivy
fraud. The suit alleges that Ivy made more than $40 million in
"fraudulently obtained fees."
According to the report, the suit alleges fraud in the sale of
securities and breach of fiduciary duty. The suit seeks damages
and disgorgement of fees. The suit also wants Messrs. Simon and
Wohl barred from acting as financial advisers.
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.)
BI-LO LLC: Emerges from Chapter 11 Protection
---------------------------------------------
BI-LO, LLC and certain affiliates has successfully completed its
financial restructuring and emerged from protection under Chapter
11 of the United States Bankruptcy Code.
"Today is a great day for BI-LO, our Teammates and our loyal
customers," said Michael Byars, President and Chief Executive
Officer of BI-LO. "With our financial restructuring now behind
us, we are emerging from Chapter 11 with a strengthened balance
sheet and enhanced financial flexibility that positions BI-LO for
continued success in the markets in which we operate. Our lean
capital structure and more focused footprint will enable us to
continue putting our customers first and exceeding their
expectations every time they visit our stores. We sincerely
appreciate the support of our hard-working and dedicated
Teammates, our loyal customers and other stakeholders throughout
this process and we are excited to move forward as a financially
stronger company."
"Much of our success in emerging from Chapter 11 can be attributed
to our steadfast focus on providing our customers unsurpassed
savings without sacrifice," Mr. Byars added. "Our weekly specials
and Price Lock items offer tremendous value, and our fuelperks!(R)
program has saved consumers more than $25 million at the gas pump
since October 2008. Further, we are committed to offering the
freshest products possible in our bakery, produce, deli and meat
departments, all with friendly, helpful service from more than
15,000 dedicated Teammates."
As previously announced, BI-LO's Plan of Reorganization was
confirmed by the United States Bankruptcy Court for the District
of South Carolina on April 29, 2010. BI-LO has met all closing
conditions of its Plan of Reorganization and Plan of Arrangement.
Through its financial restructuring, BI-LO has reduced its funded
indebtedness by approximately $60 million. Lone Star Funds made a
$150 million equity investment in BI-LO and remains majority
owner. In addition, Credit Suisse has provided $200 million in
committed term loan financing and General Electric Capital has
provided a $150 million revolving credit facility.
Additional information about BI-LO's Chapter 11 case and access to
Court documents can be found on http://www.kccllc.net/BI-LO.
About BI-LO LLC
Headquartered in Mauldin, South Carolina, BI-LO LLC operates 214
supermarkets in South Carolina, North Carolina, Georgia and
Tennessee, and employs approximately 15,500 people.
Dallas-based Lone Star Funds bought the business in 2005 from
Koninklijke Ahold NV, the Dutch supermarket operator. Lone Star
also owns Bruno's Supermarkets LLC, a chain of 66 stores
that filed under Chapter 11 in February in Birmingham, Alabama.
BI-LO and its affiliates filed for Chapter 11 bankruptcy
protection on March 23, 2009 (Bankr. D. S.C. Case No. 09-02140).
George B. Cauthen, Esq., Frank B. Knowlton, Esq., at Nelson
Mullins Riley & Scarborough, L.L.P; Josiah M. Daniel, III, Esq.,
Katherine D. Grissel, Esq., at Vinson & Elkins L.L.P. in Dallas;
and Dov Kleiner, Esq., Alexandra S. Kelly, Esq., at Vinson &
Elkins L.L.P., in New York, serve as counsel. Kurtzman Carson
Consultants LLC serves as notice and claims agent. BI-LO listed
between $100 million and $500 million each in assets and debts.
BROWN PUBLISHING: Court Extends Filing of Schedules Until May 31
----------------------------------------------------------------
The Hon. Dorothy Eisenberg of the U.S. Bankruptcy Court for the
Eastern District of New York extended, at the behest of The Brown
Publishing Company, et al., the deadline for the filing of
schedules of (i) assets and liabilities, (ii) current income and
expenditures and (iii) executor contracts and unexpired leases;
and a statement of financial affairs through and including May 31,
2010.
The Debtors say that due to the size and complexity of their
businesses, the intricacy of the their financial affairs, and the
limited personnel and management available to attend to the task
of filing their Chapter 11 petitions, they were unable to devote
the necessary resources to completing the statements and schedules
before the Petition Date.
About Brown Publishing
Headquartered in Cincinnati, Ohio, The Brown Publishing Company
owns business publications in Ohio, Utah, Texas, South Carolina,
New York, and Iowa. Brown publishes 15 daily, 32 weekly, 11
business and 41 free publications. There are also 51 websites.
Seventy-eight of the publications are in Ohio. Brown publishes
Dan's Papers, the weekly newspaper with the largest circulation in
the area of eastern Long Island, New York, known as the Hamptons.
Brown also publishes the Montauk Pioneer, which it calls the
official newspaper of Montauk, New York.
The Company filed for Chapter 11 bankruptcy protection on
April 30, 2010 (Bankr. E.D.N.Y. Case No. 10-73295). Edward M.
Fox, Esq., at K&L Gates LLP, assists the Company in its
restructuring effort. The Company estimated its assets and debts
at $10,000,001 to $50,000,000.
BROWN PUBLISHING: Taps K&L Gates as Bankruptcy Counsel
------------------------------------------------------
The Brown Publishing Company, et al., have asked for authorization
from the U.S. Bankruptcy Court for the Eastern District of New
York to employ K&L Gates LLP as bankruptcy counsel, nunc pro tunc
to the Petition Date.
K&L Gates will, among other things:
(a) assist the Debtors in preparing schedules of assets and
liabilities and statement of financial affairs;
(b) provide legal advice with respect to the Debtors' powers
and duties as a debtor-in-possession in the continued
operation of its business and management of its property;
(c) prepare and file necessary motions, notices, and other
pleadings necessary to sell some or substantially all of
the Debtors' assets; and
(d) attend meetings and negotiating with representatives of
the Debtors' creditors and other parties in interest.
K&L Gates will be paid based on the hourly rates of its personnel:
Partners $675-$935
Associates $290-$550
Paralegals $260-$270
Edward M. Fox, a partner at K&L Gates, assures the Court that the
firm is "disinterested" as that term is defined in Section 101(14)
of the Bankruptcy Code.
Headquartered in Cincinnati, Ohio, The Brown Publishing Company
owns business publications in Ohio, Utah, Texas, South Carolina,
New York, and Iowa. Brown publishes 15 daily, 32 weekly, 11
business and 41 free publications. There are also 51 websites.
Seventy-eight of the publications are in Ohio. Brown publishes
Dan's Papers, the weekly newspaper with the largest circulation in
the area of eastern Long Island, New York, known as the Hamptons.
Brown also publishes the Montauk Pioneer, which it calls the
official newspaper of Montauk, New York.
The Company filed for Chapter 11 bankruptcy protection on
April 30, 2010 (Bankr. E.D.N.Y. Case No. 10-73295). The Company
estimated its assets and debts at $10,000,001 to $50,000,000.
BROWN PUBLISHING: Wants to Hire Epiq as Claims & Noticing Agent
---------------------------------------------------------------
The Brown Publishing Company, et al., have sought permission from
the U.S. Bankruptcy Court for the Eastern District of New York to
employ Epiq Bankruptcy Solutions, LLC, as claims and noticing
agent.
Epiq will, among other things:
(a) prepare and serve various required notices in the
Debtors' Chapter 11 cases;
(b) file with the Court certificates or affidavits of
service, including a copy of the notice involved and
indicating the name and address of each party served, as
well as the date of the mailing;
(c) serve motions, applications, requests for relief, hearing
documents and related documents on behalf of the Debtors
in the Debtors' Chapter 11 cases;
(d) assist the Debtors to prepare their schedule of assets
and liabilities and their statement of financial affairs,
which will include, among other things, the Debtors known
creditors, the amounts owed to the creditors, and
maintain an official copy of the schedules;
Epiq will be compensated based on its services agreement with the
Debtors. A copy of the agreement is available for free at:
http://bankrupt.com/misc/DANS_PAPER_epiqservicespact.pdf
To the best of the Debtors' knowledge, Epiq is "disinterested" as
that term is defined in Section 101(14) of the Bankruptcy Code.
Headquartered in Cincinnati, Ohio, The Brown Publishing Company
owns business publications in Ohio, Utah, Texas, South Carolina,
New York, and Iowa. Brown publishes 15 daily, 32 weekly, 11
business and 41 free publications. There are also 51 websites.
Seventy-eight of the publications are in Ohio. Brown publishes
Dan's Papers, the weekly newspaper with the largest circulation in
the area of eastern Long Island, New York, known as the Hamptons.
Brown also publishes the Montauk Pioneer, which it calls the
official newspaper of Montauk, New York.
The Company filed for Chapter 11 bankruptcy protection on
April 30, 2010 (Bankr. E.D.N.Y. Case No. 10-73295). Edward M.
Fox, Esq., at K&L Gates LLP, assists the Company in its
restructuring effort. The Company estimated its assets and debts
at $10,000,001 to $50,000,000.
CANWEST GLOBAL: Creditor Group to Buy Canwest LP For $1.1 Billion
-----------------------------------------------------------------
Bankruptcy Law360 reports that a group of noteholders has reached
a deal with Canwest Global Communications Corp. to buy shares of
Canada's conservative newspaper The National Post and other print
and publishing products now in debtor protection for
C$1.1 billion (US$1.08 billion). The ad hoc group of senior
subordinated noteholders, led by media executive and former
politician Paul Godfrey, made the bid for the assets of Canwest
LP, Law 360 relates.
About Canwest Global
Canwest Global Communications Corp. (TSX: CGS and CGS.A) --
http://www.canwest.com/-- an international media company, is
Canada's largest media company. In addition to owning the Global
Television Network, Canwest is Canada's largest publisher of
English language daily newspapers and owns, operates and holds
substantial interests in conventional television, out-of-home
advertising, specialty cable channels, web sites and radio
stations and networks in Canada, New Zealand, Australia, Turkey,
Indonesia, Singapore, the United Kingdom and the United States.
On October 6, 2009, Canwest Global, Canwest Media Inc., Canwest
Television Limited Partnership (including Global Television,
MovieTime, DejaView and Fox Sports World), The National Post
Company and certain subsidiaries voluntarily entered into, and
successfully obtained an Order from the Ontario Superior Court of
Justice (Commercial Division) commencing proceedings under the
Companies' Creditors Arrangement Act. The CMI Entities'
commencement of these proceedings was undertaken in furtherance of
a proposed recapitalization transaction that is supported by over
70% of holders of the 8% senior subordinated notes issued by CMI.
On the same day, FTI Consulting Canada Inc., the Court-appointed
Monitor in the CCAA proceedings, sought protection in the United
States Bankruptcy Court under Chapter 15 of the United States
Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 09-15994) for
certain of the entities involved in Canwest's television business
that filed for protection under the CCAA, including Canwest,
Canwest Media Inc. and Canwest Global Broadcasting
Inc./Radiodiffusion Canwest Global Inc.
Judge Stuart M. Bernstein presides over the Chapter 15 cases.
Evan D. Flaschen, Esq., at Bracewell & Giuliani LLP, in Hartford,
Connecticut, serves as Chapter 15 Petitioner's counsel. The
Chapter 15 Debtors disclosed estimated assets of $500 million to
$1 billion and estimated debts of $50 million to $100 million.
In a regulatory filing with the U.S. Securities and Exchange
Commission, Canwest Media disclosed C$4,847,020,000 in total
assets and C$5,826,522,000 in total liabilities at May 31, 2009.
Bankruptcy Creditors' Service, Inc., publishes Canwest Bankruptcy
News. The newsletter tracks the CCAA proceedings and Chapter 15
proceedings undertaken by Canwest Global Communications Corp. and
its affiliates (http://bankrupt.com/newsstand/or 215/945-7000).
CAPMARK FINANCIAL: Court OKs Use of $20MM Cash Collateral
---------------------------------------------------------
Judge Christopher S. Sontchi of the U.S. Bankruptcy Court for the
District of Delaware has increased the amount of cash collateral
Capmark Financial Group Inc., and its debtor affiliates may use
to $20 million pursuant to a stipulation with Morgan Stanley &
Co. Incorporated.
Prior to the entry of the Court's order, the Debtors certified
that no objections were filed as to their supplemental motion
modifying the terms of stipulation authorizing use of cash
collateral.
About Capmark Financial
Based in Horsham, Pennsylvania, Capmark Financial Group Inc. --
http://www.capmark.com/-- is a diversified company that provides
a broad range of financial services to investors in commercial
real estate-related assets. Capmark has three core businesses:
lending and mortgage banking, investments and funds management,
and servicing. Capmark operates in North America, Europe and
Asia. Capmark has 1,000 employees located in 37 offices
worldwide.
On October 25, 2009, Capmark Financial Group Inc. and certain of
its subsidiaries filed voluntary petitions for relief under
Chapter 11 (Bankr. D. Del. Case No. 09-13684)
Capmark's financial advisors are Lazard Freres & Co. LLC and
Loughlin Meghji + Company. Capmark's bankruptcy counsel is Dewey &
LeBoeuf LLP. Richards, Layton & Finger, P.A., serves as local
counsel. Beekman Advisors, Inc., is serving as strategic advisor.
KPMG LLP is tax and accounting advisor. Epiq Bankruptcy
Solutions, LLC, is the claims and notice agent.
Capmark has total assets of US$20 billion against total debts of
US$21 billion as of June 30, 2009.
Bankruptcy Creditors' Service, Inc., publishes Capmark Financial
Bankruptcy News. The newsletter tracks the Chapter 11 proceedings
of Capmark Financial Group Inc. and its units.
(http://bankrupt.com/newsstand/or 215/945-7000)
CAPMARK FINANCIAL: Court OKs Modified Incentive Plan
----------------------------------------------------
Bankruptcy Judge Christopher Sontchi modified Capmark Financial's
Performance Incentive Plan to provide that payments under the Plan
for the Executive Committee Members relating to milestones
achieved prior to an Executive Committee Member's termination for
any reason other than cause, will be payable in full on the next
regular payroll date following that termination.
Judge Sontchi held that to the extent any amounts of the
Additional Bonus Pool are not allocated to the Executive
Committee Members, those amounts will be:
(i) added to the pool for the 2010 Bonus Plan approved by the
Court in the PIP Order and may be awarded by the Debtors
to the non-insider employees entitled to payments under
that Plan; or
(ii) awarded to employees of the Debtors under any incentive
compensation plan established for insider employees of the
Debtors other than the Executive Committee Members.
Moreover, Judge Sontchi authorized the Debtors to file a summary
of the Performance Incentive Plan for Executive Committee Members
under seal.
Subsequently, the Debtors delivered to the Court a summary of
Modified Performance Incentive Plan for the Executive Committee
Members under seal.
About Capmark Financial
Based in Horsham, Pennsylvania, Capmark Financial Group Inc. --
http://www.capmark.com/-- is a diversified company that provides
a broad range of financial services to investors in commercial
real estate-related assets. Capmark has three core businesses:
lending and mortgage banking, investments and funds management,
and servicing. Capmark operates in North America, Europe and
Asia. Capmark has 1,000 employees located in 37 offices
worldwide.
On October 25, 2009, Capmark Financial Group Inc. and certain of
its subsidiaries filed voluntary petitions for relief under
Chapter 11 (Bankr. D. Del. Case No. 09-13684)
Capmark's financial advisors are Lazard Freres & Co. LLC and
Loughlin Meghji + Company. Capmark's bankruptcy counsel is Dewey &
LeBoeuf LLP. Richards, Layton & Finger, P.A., serves as local
counsel. Beekman Advisors, Inc., is serving as strategic advisor.
KPMG LLP is tax and accounting advisor. Epiq Bankruptcy
Solutions, LLC, is the claims and notice agent.
Capmark has total assets of US$20 billion against total debts of
US$21 billion as of June 30, 2009.
Bankruptcy Creditors' Service, Inc., publishes Capmark Financial
Bankruptcy News. The newsletter tracks the Chapter 11 proceedings
of Capmark Financial Group Inc. and its units.
(http://bankrupt.com/newsstand/or 215/945-7000)
CAPMARK FINANCIAL: KPMG LLP Provides Additional Work
----------------------------------------------------
Capmark Financial Group Inc. and its units relate that shortly
after the entry of the Court's order authorizing the retention of
KPMG LLP as their tax and accounting advisor, they were made aware
of two additional statements of work, dated May 1, 2009 and
September 21, 2009, they entered into with KPMG.
The 2009 Statements of Work provide that KPMG will perform, for
the Debtors, certain tax consulting and tax compliance services.
Additionally, the Debtors and KPMG have entered into that certain
statement of work, dated February 5, 2010, which provides that
KPMG will perform certain services related to the preparation of
state and federal tax returns.
The Debtors and KPMG have also entered into that certain
statement of work, dated as of February 15, 2010 which provides
that KPMG will perform certain services related to the Debtors'
current Internal Revenue Service income tax examination.
Full-text copies of the Additional Statements of Work is
available for free at:
http://bankrupt.com/misc/Capmark_KPMGSoW.pdf
About Capmark Financial
Based in Horsham, Pennsylvania, Capmark Financial Group Inc. --
http://www.capmark.com/-- is a diversified company that provides
a broad range of financial services to investors in commercial
real estate-related assets. Capmark has three core businesses:
lending and mortgage banking, investments and funds management,
and servicing. Capmark operates in North America, Europe and
Asia. Capmark has 1,000 employees located in 37 offices
worldwide.
On October 25, 2009, Capmark Financial Group Inc. and certain of
its subsidiaries filed voluntary petitions for relief under
Chapter 11 (Bankr. D. Del. Case No. 09-13684)
Capmark's financial advisors are Lazard Freres & Co. LLC and
Loughlin Meghji + Company. Capmark's bankruptcy counsel is Dewey &
LeBoeuf LLP. Richards, Layton & Finger, P.A., serves as local
counsel. Beekman Advisors, Inc., is serving as strategic advisor.
KPMG LLP is tax and accounting advisor. Epiq Bankruptcy
Solutions, LLC, is the claims and notice agent.
Capmark has total assets of US$20 billion against total debts of
US$21 billion as of June 30, 2009.
Bankruptcy Creditors' Service, Inc., publishes Capmark Financial
Bankruptcy News. The newsletter tracks the Chapter 11 proceedings
of Capmark Financial Group Inc. and its units.
(http://bankrupt.com/newsstand/or 215/945-7000)
CARITAS HEALTH: Plan Exclusivity Extended on Interim
----------------------------------------------------
The Hon. Carla E. Craig of the U.S. Bankruptcy Court for the
Eastern District of New York extended, on an interim basis,
Caritas Health Care, Inc., et al.'s exclusive periods to propose
and to solicit acceptances of the proposed Chapter 11 Plan until
August 6, 2010, and October 6, 2010, respectively.
The Debtors related that they need additional time to resolve
claims and maximize the value of their remaining assets for the
benefit of all stake holders.
Caritas Health Care Inc. is the owner of Mary Immaculate Hospital
and St. John's Queens Hospital. Caritas, created by Wyckoff
Heights Medical Center, purchased the two hospitals in a
bankruptcy sale in early 2007 from St. Vincent Catholic Medical
Centers of New York. St. John's has 227 generate acute-care beds
while Mary Immaculate has 189.
Caritas Health Care and eight of its affiliates filed for
Chapter 11 on Feb. 6, 2009 (Bankr. E.D.N.Y., Lead Case No. 09-
40901). Jeffrey W. Levitan, Esq., and Adam T. Berkowitz, Esq., at
Proskauer Rose, LLP, represent the Debtors in their restructuring
effort. Martin G. Bunin, Esq., and Craig E. Freeman, Esq., at
Alston & Bird LLP, represent the official committee of unsecured
creditors. Caritas in its bankruptcy petition estimated assets of
$50 million to $100 million, and debts of $100 million to
$500 million.
CARLOS F. ESCRIBANO: Case Summary & Unsecured Creditors
-------------------------------------------------------
Debtor: Carlos F. Escribano & Co., Inc.
P.O. Box 1788
Sabana Seca, PR 00952
Bankruptcy Case No.: 10-03785
Chapter 11 Petition Date: May 5, 2010
Court: United States Bankruptcy Court
District of Puerto Rico (Old San Juan)
Debtor's Counsel: Alexis Fuentes Hernandez, Esq.
Fuentes Law Offices
P.O. Box 9022726
San Juan, PR 00902-2726
Tel: (787) 722-5216
Fax: (787) 722-5206
E-mail: alex@fuentes-law.com
Scheduled Assets: $6,432,918
Scheduled Debts: $4,872,504
A list of the Company's 114 largest unsecured creditors filed
together with the petition is available for free at
http://bankrupt.com/misc/prb10-03785.pdf
The petition was signed by Carlos F. Escribano Miro, president.
CHRYSLER LLC: Liquidating Plan Declared Effective April 30
----------------------------------------------------------
Old Carco LLC, formerly known as Chrysler LLC, and its 24 debtor
subsidiaries' modified Second Amended Joint Plan on Liquidation
became effective on April 30, 2010, exactly a year after the
automaker filed for Chapter 11.
As of the Effective Date, the Debtors:
(a) have transferred the assets remaining in their bankruptcy
estates to the Liquidation Trust in accordance with the
Plan; and
(b) have taken, or are taking, actions as may be necessary or
appropriate to transfer, merge, dissolve or terminate the
corporate existence of the Debtors consistent with the
Plan's Restructuring Transactions.
The Liquidation Trust was established as of the Effective Date
to, among other things:
-- liquidate the assets contributed by the Debtors to the
Liquidation Trust;
-- resolve all Disputed Claims;
-- pursue any Recovery Actions, including the Daimler
Litigation; and
-- make all distributions to holders of Allowed Claims in
accordance with the terms of the Plan and otherwise
implementing the Plan.
Judge Arthur J. Gonzalez of the United States Bankruptcy Court
for the Southern District of New York signed a written order on
April 23, 2010, confirming the Plan.
Releases and Injunctions
All subordination rights that a holder of a Claim may have with
respect to any distribution to be made pursuant to the Plan are
released and terminated, and all actions related to the
enforcement of those subordination rights are permanently
enjoined, according to the Debtors' notice filed in Court.
Accordingly, distributions pursuant to the Plan to holders of
Allowed Claims are not subject to payment to a beneficiary of the
terminated subordination rights or to levy, garnishment,
attachment or other legal process by a beneficiary of the
terminated subordination rights.
Moreover, pursuant to Rule 9019 of the Federal Rules and
Bankruptcy Procedure and in consideration for the distributions
and other benefits provided under the Plan, the provisions of the
Plan constitute a good faith compromise and settlement of all
claims or controversies relating to subordination rights that a
holder of a Claim may have with respect to any Allowed Claim or
any distribution to be made. The entry of the Confirmation Order
constitutes the Court's approval, as of the Effective Date, of
the compromise or settlement of all those claims or
controversies.
Except as otherwise provided in the Plan, the Winddown Orders or
in any contract or agreement entered into or delivered in
connection with the Plan, all mortgages, deeds of trust, Liens or
other security interests against the assets of any bankruptcy
estate were fully released and discharged as of the Effective
Date. All of the right, title and interest of any holder of the
mortgages or other security interests are enforceable solely
against the applicable Liquidation Trust Assets in accordance
with and subject to the terms of the Plan or the Winddown Orders,
provided that (a) the First Lien Agent's Lien on the First Lien
Collateral remains fully perfected, non-voidable and enforceable
after the Effective Date, and (b) the Government DIP Lenders'
Lien on the DIP Collateral remains fully perfected, non-voidable
and enforceable after the Effective Date.
All existing employee benefit plans, retiree benefit plans and
workers' compensation benefits not previously terminated by the
Debtors, or assumed by the Debtors and assigned to New Chrysler,
were terminated on or before the Effective Date, except as
otherwise expressly provided in the Confirmation Order.
On the Effective Date, the Bond Indenture and its Bonds were
deemed terminated, and of no further force and effect, with
respect to the Debtors. Except as set forth in the Plan, the
Equity Interest of all Debtors were deemed cancelled and of no
further force and effect on the Effective Date.
As of the Effective Date, the Debtors, the Liquidation Trustee,
the Litigation Manager, the Estates and Debtor and non-Debtor
successors forever released, waived and discharged all
Liabilities and Claims that they have, had or may have against
any Released Party, provided that the release provisions do not
affect:
-- any rights to enforce the Plan, the Liquidation Trust
Agreement, the Litigation Manager Agreement, the Winddown
Budget, the Winddown Orders or the other contracts,
instruments, releases, agreements or documents to be, or
previously, entered into or delivered in connection with
the Plan or the Fiat Sale Order;
-- any objections by the Debtors or the Liquidation Trust to
Claims or Interests filed by any Person or Entity against
any Debtor or the Estates, provided that the Debtors and
the Liquidation Trust have no further right to object to or
challenge the Liens of the Government DIP Lenders and the
lender under the TARP Loan Agreement;
-- claims for Tax refunds or adjustments; or
-- the claims and Causes of Action referenced in the Plan.
Except as provided in the Plan or the Confirmation Order, all
persons that have held, currently hold or may hold any
liabilities released or exculpated pursuant to the Plan or the
Confirmation Order are permanently enjoined from taking any
actions against any Released Party or its property on account of
the released Liabilities. By accepting distributions pursuant to
the Plan, each holder of an Allowed Claim receiving distributions
will be deemed to have specifically consented to the injunctions
set forth in the Plan.
From and after the Effective Date, the Released Parties will
neither have nor incur any liability to any Person for any act
taken or omitted to be taken in connection with the Debtors'
Chapter 11 Cases. Each Executory Contract or Unexpired Lease
entered into by a Debtor prior to the Petition Date that had not
previously expired or terminated pursuant to its own terms was
rejected pursuant to Section 365 of the Bankruptcy Code.
Bar Dates for Filing Claims
Unless previously filed or allowed pursuant to the Plan, each
holder of an Administrative Claim must file a request for payment
of the Administrative Claim and serve the request on the Notice
Parties by June 1, 2010. Objections to the requests must be
filed by the Liquidation Trust and served by the latest of:
-- September 27, 2010;
-- 60 days after the filing of the applicable request for
payment of Administrative Claims; or
-- other period of limitation as may be specifically
established by a Final Order for objecting to the
Administrative Claims.
Professionals or other Entities other than Ordinary Course
Professionals asserting a Fee Claim for services rendered or
expenses incurred before the Effective Date must file and serve
an application for final allowance of the Fee Claim no later than
June 29, 2010, provided that any Ordinary Course Professional (i)
must submit a Final OCP Statement by June 1, 2010, and (ii) may
continue to receive payment of compensation and reimbursement of
expenses for services rendered to the Debtors without further
Court review or approval. Objections to any Fee Claim must be
filed and served by the latest of (i) July 29, 2010, (ii) 30 days
after the Filing of the applicable request for payment of the Fee
Claim, or (iii) other period of limitation as may be specifically
determined by a Final Order for objecting to the Fee Claims.
The bar date for filing claims arising from rejection of any
Executory Contract or Unexpired Lease is on June 1, 2010. A
governmental unit is not required to file and serve a request for
payment of an Administrative Claim with respect to any
administrative expense asserted under Section 503(b)(1)(B) or
Section 503(b)(1)(C) of the Bankruptcy Code as a condition to
those amounts being an allowed administrative expense.
About Chrysler Group
Chrysler Group LLC, formed in 2009 from a global strategic
alliance with Fiat Group, produces Chrysler, Jeep(R), Dodge, Ram
Truck, Mopar(R) and Global Electric Motorcars (GEM) brand vehicles
and products. Headquartered in Auburn Hills, Michigan, Chrysler
Group LLC's product lineup features some of the world's most
recognizable vehicles, including the Chrysler 300, Jeep Wrangler
and Ram Truck. Fiat will contribute world-class technology,
platforms and powertrains for small- and medium-sized cars,
allowing Chrysler Group to offer an expanded product line
including environmentally friendly vehicles.
About Chrysler LLC
Chrysler LLC and 24 affiliates on April 30 sought Chapter 11
protection from creditors (Bankr. S.D.N.Y (Mega-case), Lead Case
No. 09-50002). Chrysler hired Jones Day, as lead counsel; Togut
Segal & Segal LLP, as conflicts counsel; Capstone Advisory Group
LLC, and Greenhill & Co. LLC, for financial advisory services; and
Epiq Bankruptcy Solutions LLC, as its claims agent. Chrysler has
changed its corporate name to Old CarCo following its sale to a
Fiat-owned company. As of December 31, 2008, Chrysler had
$39,336,000,000 in assets and $55,233,000,000 in debts. Chrysler
had $1.9 billion in cash at that time.
In connection with the bankruptcy filing, Chrysler reached an
agreement with Fiat SpA, the U.S. and Canadian governments and
other key constituents regarding a transaction under Section 363
of the Bankruptcy Code that would effect an alliance between
Chrysler and Italian automobile manufacturer Fiat. Under the
terms approved by the Bankruptcy Court, the company formerly known
as Chrysler LLC on June 10, 2009, formally sold substantially all
of its assets, without certain debts and liabilities, to a new
company that will operate as Chrysler Group LLC. Fiat has a 20
percent equity interest in Chrysler Group.
Bankruptcy Creditors' Service, Inc., publishes Chrysler Bankruptcy
News. The newsletter tracks the Chapter 11 proceedings of
Chrysler LLC and its debtor-affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
CHRYSLER LLC: Chrysler Group Wins 1st Dealer Arbitration Case
-------------------------------------------------------------
Chrysler Group LLC won its first arbitration case against a
Cincinnati-based dealer whose franchise was terminated last year
as part of the auto maker's restructuring, according to a report
by The Detroit Free Press.
The case involved Joe Kidd Dodge, represented by general manager
Tom James. Chrysler Group was represented by three lawyers who
presented three witnesses including another Cincinnati-based
Chrysler-Jeep dealer who was awarded a Dodge franchise after Mr.
James' store was closed, The Detroit Free Press reported.
The American Arbitration Association said it would not disclose a
written ruling or summary of the decision in the Joe Kidd Dodge
case, according to the report.
"Chrysler Group is pleased the arbitrator agreed with the
difficult dealer network decisions made during the bankruptcy
proceedings," the company said in an April 30 statement.
"There is no denying that Chrysler Group's and the public's
economic interests are inextricably linked. Chrysler Group not
only employed sound business judgment but is acting in the
greater public interest by protecting the dealer network that was
created as a result of the bankruptcy proceedings," the company
said.
Dealer Trudi Schwarz of Joe Kidd Dodge, which remains in business
selling used cars, expressed dismay over the decision, Bloomberg
News reported.
"I did not have high hopes, but I'm disappointed," Bloomberg News
quoted him as saying.
Chrysler Group terminated 789 dealers in June 2009 as part of its
restructuring, a move that drew flak not only from the affected
dealers but from lawmakers as well.
Congress eventually passed a law late last year giving the
affected dealers of Chrysler Group and another bankrupt auto
maker, General Motors Corp., a chance to challenge or reconsider
decisions to revoke their franchises. The law established an
arbitration process to determine whether dealerships ought to be
reinstated.
Earlier, Chrysler Group offered to reinstate 86 dealers that
initially sought arbitration to appeal the termination of their
franchises. Some of these dealers are located in areas that
offer services to customers while others are in rural areas where
there are few Chrysler dealers left.
Initially about 400 dealers pursued arbitration but that number
is less than 300 now because some agreed to a settlement, had
dropped out or had been reinstated, Bloomberg News reported,
citing a Chrysler insider as its source.
The insider said it is hard to say if the first decision sets a
precedent but Chrysler Group deems it important because the
arbitrator had to look at the federal statute and balance the
arguments and interests of the auto maker, the dealer and the
community, according to the report.
Chrysler spokesperson Kathy Graham said all cases are to be
wrapped up by July 14, 2010, but some have not even been
scheduled yet, Bloomberg News reported.
About Chrysler Group
Chrysler Group LLC, formed in 2009 from a global strategic
alliance with Fiat Group, produces Chrysler, Jeep(R), Dodge, Ram
Truck, Mopar(R) and Global Electric Motorcars (GEM) brand vehicles
and products. Headquartered in Auburn Hills, Michigan, Chrysler
Group LLC's product lineup features some of the world's most
recognizable vehicles, including the Chrysler 300, Jeep Wrangler
and Ram Truck. Fiat will contribute world-class technology,
platforms and powertrains for small- and medium-sized cars,
allowing Chrysler Group to offer an expanded product line
including environmentally friendly vehicles.
About Chrysler LLC
Chrysler LLC and 24 affiliates on April 30 sought Chapter 11
protection from creditors (Bankr. S.D.N.Y (Mega-case), Lead Case
No. 09-50002). Chrysler hired Jones Day, as lead counsel; Togut
Segal & Segal LLP, as conflicts counsel; Capstone Advisory Group
LLC, and Greenhill & Co. LLC, for financial advisory services; and
Epiq Bankruptcy Solutions LLC, as its claims agent. Chrysler has
changed its corporate name to Old CarCo following its sale to a
Fiat-owned company. As of December 31, 2008, Chrysler had
$39,336,000,000 in assets and $55,233,000,000 in debts. Chrysler
had $1.9 billion in cash at that time.
In connection with the bankruptcy filing, Chrysler reached an
agreement with Fiat SpA, the U.S. and Canadian governments and
other key constituents regarding a transaction under Section 363
of the Bankruptcy Code that would effect an alliance between
Chrysler and Italian automobile manufacturer Fiat. Under the
terms approved by the Bankruptcy Court, the company formerly known
as Chrysler LLC on June 10, 2009, formally sold substantially all
of its assets, without certain debts and liabilities, to a new
company that will operate as Chrysler Group LLC. Fiat has a 20
percent equity interest in Chrysler Group.
Bankruptcy Creditors' Service, Inc., publishes Chrysler Bankruptcy
News. The newsletter tracks the Chapter 11 proceedings of
Chrysler LLC and its debtor-affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
CIVIX SUNRISE: Case Summary & 6 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: Civix Sunrise GC, LLC
2033 Main Street, Suite 201
Sarasota, FL 34237
Bankruptcy Case No.: 10-10872
Chapter 11 Petition Date: May 6, 2010
Court: U.S. Bankruptcy Court
Middle District of Florida (Tampa)
Judge: Caryl E. Delano
Debtor's Counsel: Michael C. Markham, Esq.
Johnson Pope Bokor Ruppel & Burns LLP
P.O. Box 1368
Clearwater, FL 33757
Tel: (727) 461-1818
Fax: (727) 443-6548
E-mail: mikem@jpfirm.com
Estimated Assets: $0 to $50,000
Estimated Debts: $10,000,001 to $50,000,000
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/flmb10-10872.pdf
The petition was signed by Rod Connelly, managing member.
CLOROX COMPANY: Files Form 10-Q for March 31 Quarter
----------------------------------------------------
The Clorox Company filed with the Securities and Exchange
Commission its Form 10-Q for the quarterly period ended March 31,
2010.
The Company in an earnings release early this month said that it
had net earnings of $165.0 million on $1.3 billion of net sales
for the three months ended March 31, 2010, compared with net
earnings of $153.0 million on $1.35 billion of net sales for the
same period a year ago.
The Company's balance sheet at March 31, 2010, showed $4.7 billion
in total assets and $4.5 billion in total liabilities for a
stockholder's equity of $180.0 million. Current assets total
$1.338 billion while current debts total $1.772 billion.
A full-text copy of the Company's Form 10-Q is available for free
at http://ResearchArchives.com/t/s?61dc
About Clorox Co.
Based in Oakland, California, The Clorox Company (NYSE: CLX) --
Http://www.TheCloroxCompany.com/ -- manufactures and markets
consumer products with fiscal year 2009 revenues of $5.5 billion.
Clorox markets some of consumers' most trusted and recognized
brand names, including its namesake bleach and cleaning products,
Green Works(R) natural cleaners, Armor All(R) and STP(R) auto-care
products, Fresh Step(R) and Scoop Away(R) cat litter, Kingsford(R)
charcoal, Hidden Valley(R) and K C Masterpiece(R) dressings and
sauces, Brita(R) water-filtration systems, Glad(R) bags, wraps and
containers, and Burt's Bees(R) natural personal care products.
With approximately 8,300 employees worldwide, the company
manufactures products in more than two dozen countries and markets
them in more than 100 countries.
CONGOLEUM CORP: Seeks Approval for $40 Million Exit Financing
-------------------------------------------------------------
Congoleum Corp. hopes to fund its exit from Chapter 11 with a
$40 million financing from Wells Fargo Bank NA, according to
American Bankruptcy Institute.
Based in Mercerville, New Jersey, Congoleum Corporation
(PINKSHEETS: CGMCQ) -- http://www.congoleum.com/-- manufactures
resilient sheet and tile and plank flooring products available in
a wide variety of product features, designs and colors.
The Company filed for Chapter 11 protection on December 31, 2003
(Bankr. D. N.J. Case No. 03-51524) as a means to resolve claims
asserted against it related to the use of asbestos in its products
decades ago. Richard L. Epling, Esq., Robin L. Spear, Esq., and
Kerry A. Brennan, Esq., at Pillsbury Winthrop Shaw Pittman LLP,
and Paul S. Hollander, Esq., and James L. DeLuca, Esq., at Okin,
Hollander & DeLuca, LLP, represent the Debtors.
The Asbestos Claimants' Committee is represented by Peter Van N.
Lockwood, Esq., and Ronald Reinsel, Esq., at Caplin & Drysdale,
Chtd. The Bondholders' Committee is represented by Michael S.
Stamer, Esq., and James R. Savin, Esq., at Akin Gump Strauss Hauer
& Feld LLP. Nancy Isaacson, Esq., at Goldstein Isaacson, PC,
represents the Official Committee of Unsecured Creditors.
R. Scott Williams, Esq., at Haskell Slaughter Young & Rediker,
LLC, the Court-appointed Futures Claimants Representative, is
represented by Roger Frankel, Esq., Richard Wyron, Esq., and
Jonathan P. Guy, Esq., at Orrick Herrington & Sutcliffe LLP, and
Stephen B. Ravin, Esq., at Forman Holt Eliades & Ravin LLC.
American Biltrite, Inc. (AMEX: ABL), which owns 55% of Congoleum,
is represented by Matthew Ward, Esq., Mark S. Chehi, Esq.,
Christopher S. Chow, Esq., and Matthew P. Ward, Esq., at Skadden
Arps Slate Meagher & Flom.
Various entities have filed bankruptcy plans for the Debtors. In
February 2008, the legal representative for future asbestos-
related claimants; the asbestos claimants' committee; the official
Committee of holders of the Company's 8-5/8% Senior Notes due
August 1, 2008; and Congoleum jointly filed a joint plan of
reorganization. Various objections to the Joint Plan were filed.
In June 2008, the Bankruptcy Court issued a ruling that the Joint
Plan was not legally confirmable.
In August 2008, the Bondholders' Committee, the ACC, the FCR,
representatives of holders of prepetition settlements and
Congoleum entered into a term sheet describing the proposed
material terms of a new plan of reorganization and a settlement of
avoidance litigation with respect to prepetition claim settlement.
Certain insurers and a large bondholder filed objections to the
Litigation Settlement or reserved their rights to object to
confirmation of the Amended Joint Plan. The Bankruptcy Court
approved the Litigation Settlement in October 2008. The Amended
Joint Plan was filed in November 2008.
In January 2009, certain insurers filed a motion for summary
judgment seeking denial of confirmation of the Amended Joint Plan.
On February 26, 2009, the Bankruptcy Court rendered an opinion
denying confirmation of the Amended Joint Plan. Moreover, the
Bankruptcy Court dismissed Congoleum's bankruptcy case.
On February 27, 2009, Congoleum and the Bondholders' Committee
appealed the Order of Dismissal and the ruling denying plan
confirmation to the U.S. District Court for the District of New
Jersey. The District Court overturned the dismissal order, and
assumed jurisdiction of the bankruptcy proceedings.
COOPER-STANDARD: Obtains Confirmation of Plan of Reorganization
---------------------------------------------------------------
Cooper-Standard Holdings Inc., the parent company of Cooper-
Standard Automotive Inc., disclosed that on May 12, 2010, the
United States Bankruptcy Court for the District of Delaware
confirmed its Second Amended Joint Chapter 11 Plan of
Reorganization, paving the way for the Company to exit chapter 11
in late May.
"Confirmation of the Plan is one of the final elements of a
restructuring geared towards strengthening our financial footing
and positioning the Company for continued success," said James S.
McElya, chairman and chief executive officer of Cooper-Standard.
"Our creditors have overwhelmingly supported a Plan that will
reduce the Company's debt and allow Cooper-Standard to maintain
our leadership position in the industry and continue providing
innovative technology solutions to our customers."
All of the creditors who cast ballots on the Plan voted in favor
of confirmation.
As previously announced, under the terms of the Plan, the
Company's debt will be substantially reduced with an estimated
funded debt balance at emergence of approximately $480 million,
representing a decline of over $650 million from pre-petition
levels. The Plan incorporates a rights offering provided for
under the terms of the Equity Commitment Agreement with certain of
the Company's noteholders, which was approved by the Court in
March. Under the terms of the Equity Commitment Agreement,
certain holders have committed to invest $355 million to purchase
the equity of Cooper-Standard.
Additionally, the company, through a wholly-owned non-debtor
subsidiary, effectuated the issuance of $450 million of 8-1/2%
senior notes due 2018, the proceeds of which were funded into
escrow pending the Company's emergence from chapter 11. The
proceeds from the notes, cash on hand, and a committed $125
million working capital facility will be used to implement the
Plan and fund certain operating costs once the Company emerges
from chapter 11.
The Plan will become effective upon satisfaction of certain
conditions set forth in the Plan. The Company expects the Plan to
become effective in late May, 2010.
Cooper-Standard and its U.S. subsidiaries filed voluntary
petitions under chapter 11 of the U.S. Bankruptcy Code on
August 3, 2009. The Company's Canadian subsidiary, Cooper-
Standard Automotive Canada Limited, on August 4, 2009 sought
relief under the Companies' Creditors Arrangement Act in the
Ontario Superior Court of Justice in Toronto, Ontario, Canada.
Cooper-Standard Automotive Canada Limited's plan of compromise or
arrangement was sanctioned on April 16, 2010, and is expected to
become effective immediately prior to the effective date of the
Plan.
Court filings, including the Plan and related Disclosure
Statement, are available at www.kccllc.net/cooperstandard.
About Cooper-Standard
Cooper-Standard Automotive Inc. -- http://www.cooperstandard.com/
-- headquartered in Novi, Michigan, is a leading global automotive
supplier specializing in the manufacture and marketing of systems
and components for the automotive industry. Products include body
sealing systems, fluid handling systems and NVH control systems.
The Company is one of the leading suppliers of chassis products in
North America, with about 14% of market share. The Company's main
custoemrs include Ford Motor Company, General Motors, Chrysler,
Audi, Volkswagen, BMW, Fiat and Honda, among other automakers.
Cooper-Standard Automotive employs approximately 16,000 people
globally with more than 70 facilities throughout the world.
Cooper-Standard is a privately held portfolio company of The
Cypress Group and Goldman Sachs Capital Partners Funds.
Cooper-Standard Holdings Inc., together with affiliates, filed for
Chapter 11 on August 4, 2009 (Bankr. D. Del. Case No. 09-12743).
Attorneys at Fried, Frank, Harris, Shriver & Jacobson LLP and
Richards, Layton & Finger, P.A., will serve as bankruptcy counsel
to the Debtors. Lazard Freres & Co. is serving as investment
banker while Alvarez & Marsal is financial advisor. Kurtzman
Carson Consultants LLC is notice, claims and solicitation agent.
In its bankruptcy petition, the Company said that assets on a
consolidated basis total $1,733,017,000 while debts total
$1,785,039,000 as of March 31, 2009.
The Company's Canadian subsidiary, Cooper-Standard Automotive
Canada Limited, also sought relief under the Companies' Creditors
Arrangement Act in the Ontario Superior Court of Justice in
Toronto, Ontario, Canada.
Bankruptcy Creditors' Service, Inc., publishes Cooper-Standard
Bankruptcy News. The newsletter tracks the Chapter 11 and CCAA
proceedings undertaken by Cooper-Standard Holdings Inc. and its
various affiliates. (http://bankrupt.com/newsstand/or 215/945-
COOPER-STANDARD: Plan Gets Overwhelming Creditor Support
--------------------------------------------------------
Cooper-Standard Holdings Inc. and its debtor-affiliates took one
step closer to emerging from bankruptcy after 100 percent of
holders of senior subordinated note claims in Class 6 voted to
accept the Debtors' proposed Second Amended Joint Chapter 11 Plan
of Reorganization.
Results of the voting, which closed on May 5, 2010, show that 100
percent of the 72 ballots received voted in favor of the Plan.
This represents $279,179,136 of the $313,350,000 in total senior
subordinated note claims in Class 6, which is the only class
entitled to vote to accept or reject the Plan.
Of the 72 ballots received, 21 ballots representing $115,072,136
opted out of the release provisions stated in section 12.01(c) of
the Plan, according to David Sharp, director at Kurtzman Carson
Consultants LLC.
KCC, the Debtors' claims and noticing agent, oversaw the
solicitation and tabulation of votes.
The Debtors only need to obtain a court order confirming their
Plan to finally emerge from bankruptcy protection. The Court
will consider confirmation of the Plan at the May 12, 2010
hearing.
Under the plan, Cooper-Standard's bondholders will take control
of the company and secured lenders will be paid in full. Senior
bondholders can choose either cash or equity to satisfy their
debts, while subordinated bondholders will receive a combination
of stock and rights to buy additional shares to satisfy their
claims.
The Company plans to fund its bankruptcy exit with proceeds from
the sale of $450 million in new notes and a $355 million equity-
rights offering; take out a $150 million exit loan; and use the
proceeds from the sale of the notes and equity to pay off its
lenders and bondholders that elect cash repayment.
In connection with the proposed confirmation, the Debtors filed
with the Court a proposed confirmation order and a set of
documents to supplement their Plan. Full-text copies of these
documents are available without charge at:
http://bankrupt.com/misc/CSHI_MgtIncentivePlan.pdf
http://bankrupt.com/misc/CSHI_ExitFinancing.pdf
http://bankrupt.com/misc/CSHI_DirectorsList.pdf
http://bankrupt.com/misc/CSHI_RejectedContractsList.pdf
http://bankrupt.com/misc/CSHI_NewCapitalWarrant.pdf
http://bankrupt.com/misc/CSHI_NoneligibleNHshares.pdf
http://bankrupt.com/misc/CSHI_CertificateofDesignation.pdf
Earlier, Wilmington Trust Company filed a statement with the
Court to reserve its rights to demand and obtain full payment of
its claims on account of senior notes.
Wilmington Trust serves as trustee for the senior notes due 2012
issued by Cooper-Standard Automotive Inc. under a December 23,
2004 indenture. It asserts a $223,236,713 claim, of which
$3,500,000 in "call premium" may not be paid pursuant to the
terms of the Plan.
About Cooper-Standard
Cooper-Standard Automotive Inc. -- http://www.cooperstandard.com/
-- headquartered in Novi, Michigan, is a leading global automotive
supplier specializing in the manufacture and marketing of systems
and components for the automotive industry. Products include body
sealing systems, fluid handling systems and NVH control systems.
The Company is one of the leading suppliers of chassis products in
North America, with about 14% of market share. The Company's main
custoemrs include Ford Motor Company, General Motors, Chrysler,
Audi, Volkswagen, BMW, Fiat and Honda, among other automakers.
Cooper-Standard Automotive employs approximately 16,000 people
globally with more than 70 facilities throughout the world.
Cooper-Standard is a privately held portfolio company of The
Cypress Group and Goldman Sachs Capital Partners Funds.
Cooper-Standard Holdings Inc., together with affiliates, filed for
Chapter 11 on August 4, 2009 (Bankr. D. Del. Case No. 09-12743).
Attorneys at Fried, Frank, Harris, Shriver & Jacobson LLP and
Richards, Layton & Finger, P.A., will serve as bankruptcy counsel
to the Debtors. Lazard Freres & Co. is serving as investment
banker while Alvarez & Marsal is financial advisor. Kurtzman
Carson Consultants LLC is notice, claims and solicitation agent.
In its bankruptcy petition, the Company said that assets on a
consolidated basis total $1,733,017,000 while debts total
$1,785,039,000 as of March 31, 2009.
The Company's Canadian subsidiary, Cooper-Standard Automotive
Canada Limited, also sought relief under the Companies' Creditors
Arrangement Act in the Ontario Superior Court of Justice in
Toronto, Ontario, Canada.
Bankruptcy Creditors' Service, Inc., publishes Cooper-Standard
Bankruptcy News. The newsletter tracks the Chapter 11 and CCAA
proceedings undertaken by Cooper-Standard Holdings Inc. and its
various affiliates. (http://bankrupt.com/newsstand/or 215/945-
COOPER-STANDARD: Proposes to Obtain Working Capital Facility
------------------------------------------------------------
Cooper-Standard Holdings Inc. and its debtor affiliates sought and
obtained approval from the U.S. Bankruptcy Court for the District
of Delaware to enter into agreements with Bank of America N.A. and
other lenders to obtain working capital facility in connection
with their proposed Second Amended Joint Chapter 11 Plan of
Reorganization.
Under the Plan, the Debtors are required to obtain a working
capital credit facility of up to $150 million to ensure that they
have sufficient liquidity to fund their operations after they
emerge from bankruptcy.
Pursuant to the agreements, the working capital facility will
provide for committed revolving loans of up to $125 million.
This will be subject to borrowing base availability, which
includes a $45 million letter of credit sub-facility and a $20
million swing line sub-facility available to reorganized Cooper-
Standard Automotive Inc.
The working capital facility will also provide for an uncommitted
$25 million incremental revolving loan facility if requested by
the borrowers and approved by additional or current lenders. The
borrowers under the working capital facility are CS Automotive
and Cooper-Standard Automotive Canada Ltd.
CSHI will serve as one of the guarantors of the borrowers'
obligations under the working capital facility. The obligations
of the borrowers and guarantors will be secured by first priority
liens on their current and future accounts receivable, payment
intangibles, inventory, among other things.
Advances under the working capital facility will be limited to up
to 85% of eligible accounts receivable and up to the lesser of
70% of eligible inventory or 85% of the appraised net orderly
liquidation value of eligible inventory. The working capital
facility will mature four years after the closing date.
The key terms for the working capital facility are contained in a
12-page letter and a summary of proposed terms, a copy of which
is available without charge at:
http://bankrupt.com/misc/CSHI_WorkingCapitalFacility.pdf
In connection to this, the Debtors also obtained approval to pay
the lenders for all fees and expenses as administrative expense
claims, and to indemnify them for any claim, damage or liability.
The Debtors also sought and obtained an approval to file under
seal a set of documents including an administrative agent fee
letter and a joint fee letter, both dated April 21, 2010.
The administrative agent fee letter provides for the payment of a
customary annual administration fee to Bank of America, as
administrative agent, while the joint fee letter provides for the
payment of customary arrangement and closing fees in connection
with the lenders' commitment to provide the working capital
facility.
About Cooper-Standard
Cooper-Standard Automotive Inc. -- http://www.cooperstandard.com/
-- headquartered in Novi, Michigan, is a leading global automotive
supplier specializing in the manufacture and marketing of systems
and components for the automotive industry. Products include body
sealing systems, fluid handling systems and NVH control systems.
The Company is one of the leading suppliers of chassis products in
North America, with about 14% of market share. The Company's main
custoemrs include Ford Motor Company, General Motors, Chrysler,
Audi, Volkswagen, BMW, Fiat and Honda, among other automakers.
Cooper-Standard Automotive employs approximately 16,000 people
globally with more than 70 facilities throughout the world.
Cooper-Standard is a privately held portfolio company of The
Cypress Group and Goldman Sachs Capital Partners Funds.
Cooper-Standard Holdings Inc., together with affiliates, filed for
Chapter 11 on August 4, 2009 (Bankr. D. Del. Case No. 09-12743).
Attorneys at Fried, Frank, Harris, Shriver & Jacobson LLP and
Richards, Layton & Finger, P.A., will serve as bankruptcy counsel
to the Debtors. Lazard Freres & Co. is serving as investment
banker while Alvarez & Marsal is financial advisor. Kurtzman
Carson Consultants LLC is notice, claims and solicitation agent.
In its bankruptcy petition, the Company said that assets on a
consolidated basis total $1,733,017,000 while debts total
$1,785,039,000 as of March 31, 2009.
The Company's Canadian subsidiary, Cooper-Standard Automotive
Canada Limited, also sought relief under the Companies' Creditors
Arrangement Act in the Ontario Superior Court of Justice in
Toronto, Ontario, Canada.
Bankruptcy Creditors' Service, Inc., publishes Cooper-Standard
Bankruptcy News. The newsletter tracks the Chapter 11 and CCAA
proceedings undertaken by Cooper-Standard Holdings Inc. and its
various affiliates. (http://bankrupt.com/newsstand/or 215/945-
COOPER-STANDARD: Wins Nod for Exit Financing Documents
------------------------------------------------------
Judge Peter Walsh of the U.S. Bankruptcy Court for the District
of Delaware authorized Cooper-Standard Holdings Inc. and its units
to enter into agreements in connection with their anticipated exit
financing.
The Exit Financing Agreements allow the Debtors to raise up to
$450 million of exit financing through a notes offering to fund
the operations of the reorganized companies upon their emergence
from bankruptcy.
Judge Walsh also authorized the Debtors to pay fees and expenses
as administrative expenses, and to form CSA Escrow Corporation
and a new Delaware limited liability company for the purpose of
issuing the new notes.
The Debtors were not authorized to borrow any funds under the
Exit Financing Agreements or to pledge any assets to secure their
obligations under the exit financing, all of which will be
subject to approval in connection with the confirmation of their
Plan.
Until consummation of the Plan, none of the proceeds of the new
notes held by CSA Escrow will constitute property of the Debtors'
estates and none of the Debtors will have interest in those
proceeds or be obligated to repay the new notes, Judge Walsh
ruled.
Judge Walsh also authorized the Debtors to file under seal the
April 8, 2010 fee letter, which is one of the documents required
to consummate the notes offering.
Terms of Exit Facilities
Over the past several months, Cooper-Standard Holdings Inc., its
debtor affiliates and its advisers have worked on identifying the
appropriate debt financing for their Second Amended Joint Chapter
11 Plan of Reorganization.
Given the favorable conditions in the high yield debt markets,
the Debtors have determined that they will raise $450 million of
exit financing in the capital markets through a notes offering,
according to Drew Sloan, Esq., Richards Layton & Finger P.A., in
Wilmington, Delaware.
Mr. Sloan says that based on the Debtors' discussions with
financial institutions including potential arrangers and
underwriters, the notes offering could provide the reorganized
companies with the best financing terms and operational
flexibility upon their emergence from bankruptcy.
In light of this, the Debtors seek approval of the U.S.
Bankruptcy Court for the District of Delaware to (i) enter into
certain agreements in connection with anticipated exit financing;
(ii) pay related fees and expenses as administrative expenses,
and (iii) form a special purpose issuer.
New Notes Offering
To facilitate the funding of the new notes prior to confirmation
of the Plan, the Debtors will form a new non-debtor Delaware
company that will, in turn, form CSA Escrow Corporation.
CSA Escrow will be created solely to issue the new notes and
grant a lien on the proceeds of those notes. The issuer will
enter into initial agreements relating to the new notes as well
as escrow agreements, under which the proceeds of the notes will
be held pending consummation of the Plan. It will also grant a
lien on the proceeds from the new notes and all other assets it
holds.
Prior to confirmation of the Debtors' Plan, CSA Escrow will issue
the new notes in an amount not to exceed $450 million. The
proceeds of the notes will be held in escrow until certain
conditions, including consummation of the Plan, are satisfied.
If these conditions are satisfied, CSA Escrow will merge into
reorganized Cooper-Standard Automotive Inc., with Cooper-Standard
as the surviving entity. The proceeds will then be released to
reorganized CSA, which will be assumed by and will become senior
obligations of reorganized CSA.
During the escrow period, the new notes will be secured by a
pledge by CSA Escrow of the proceeds and other escrowed amounts,
none of which, whether or not in escrow, will constitute property
of the Debtors' estates. The Debtors, conversely, will have no
obligations under the new notes other than the fee, expense
reimbursement, interest and indemnity obligations.
If the conditions are not satisfied, CSA Escrow will be required
to redeem the new notes at 100% of their issue price, plus a
specified premium expected to be 1% of the aggregate principal
amount, and accrued and unpaid interest and the accreted amount
of any original issue discount on the new notes in each case to,
but excluding, the date of redemption.
In connection with any private offering of the new notes, the
Debtors have reached agreement in principle, on an uncommitted
basis, with Deutsche Bank Securities Inc., Banc of America
Securities LLC, UBS Securities LLC and Barclays Capital Inc.
The agreement is formalized in a 19-page engagement letter dated
April 8, 2010, a copy of which is available without charge at:
http://bankrupt.com/misc/CSHI_NewNotesLetter.pdf
The agreement provides that each of the financial institutions
will act as lead underwriter, lead initial purchaser or lead
placement agent for CSA Escrow in connection with the new notes
offering on a "best-efforts" basis. These obligations do not
constitute a commitment by or obligation of any financial
institution to act as an underwriter, initial purchaser or
placement agent.
Aside from the Engagement Letter, the Debtors will also execute
these documents to consummate the new notes offering:
(1) a fee letter dated April 8, 2010 providing for the payment
of placement fee, upfront fees or original issue discount;
(2) a purchase agreement, underwriting agreement or placement
agreement and any related agreements;
(3) an amendment, waiver or supplement to the Debtor-in-
Possession financing credit agreement, the Equity
Commitment Agreement and any related documents; and
(4) documents in connection with the formation of the new non-
debtor Delaware company and CSA Escrow, and agreements for
the funding of and payment of fee obligations of the
issuer.
Senior Term Loan Facility
In case the Debtors cannot pursue a notes offering on terms
satisfactory to them and to their note holders, the Debtors will
raise the $450 million exit financing in the form of a secured
term loan credit facility, explains Mr. Sloan. The proceeds of
the senior term loan facility will be funded to reorganized CSA
on the effective date of the Plan.
Pursuant to the April 8 Engagement Letter, Deutsche Bank
Securities, Banc of America Securities and UBS Securities will
serve as lead arrangers and book managers. Each of these
financial institutions will structure, arrange and syndicate the
senior term loan facility and will assist reorganized CSA in
obtaining commitments from lenders with respect to the facility.
The financial institutions will act as co-lead arrangers and
joint bookrunners and one of them will act as administrative
agent for, in each case, the senior term loan facility.
About Cooper-Standard
Cooper-Standard Automotive Inc. -- http://www.cooperstandard.com/
-- headquartered in Novi, Michigan, is a leading global automotive
supplier specializing in the manufacture and marketing of systems
and components for the automotive industry. Products include body
sealing systems, fluid handling systems and NVH control systems.
The Company is one of the leading suppliers of chassis products in
North America, with about 14% of market share. The Company's main
custoemrs include Ford Motor Company, General Motors, Chrysler,
Audi, Volkswagen, BMW, Fiat and Honda, among other automakers.
Cooper-Standard Automotive employs approximately 16,000 people
globally with more than 70 facilities throughout the world.
Cooper-Standard is a privately held portfolio company of The
Cypress Group and Goldman Sachs Capital Partners Funds.
Cooper-Standard Holdings Inc., together with affiliates, filed for
Chapter 11 on August 4, 2009 (Bankr. D. Del. Case No. 09-12743).
Attorneys at Fried, Frank, Harris, Shriver & Jacobson LLP and
Richards, Layton & Finger, P.A., will serve as bankruptcy counsel
to the Debtors. Lazard Freres & Co. is serving as investment
banker while Alvarez & Marsal is financial advisor. Kurtzman
Carson Consultants LLC is notice, claims and solicitation agent.
In its bankruptcy petition, the Company said that assets on a
consolidated basis total $1,733,017,000 while debts total
$1,785,039,000 as of March 31, 2009.
The Company's Canadian subsidiary, Cooper-Standard Automotive
Canada Limited, also sought relief under the Companies' Creditors
Arrangement Act in the Ontario Superior Court of Justice in
Toronto, Ontario, Canada.
Bankruptcy Creditors' Service, Inc., publishes Cooper-Standard
Bankruptcy News. The newsletter tracks the Chapter 11 and CCAA
proceedings undertaken by Cooper-Standard Holdings Inc. and its
various affiliates. (http://bankrupt.com/newsstand/or 215/945-
COOPER-STANDARD: Files 13-Week Cash Flow Forecast
-------------------------------------------------
Cooper-Standard Holdings Inc. and its debtor affiliates filed
with the Court on April 28, 2010, their most recent 13-Week Cash
Flow Forecast in connection with the December 18, 2009 debtor-in-
possession credit agreement they entered into with a group of
lenders.
A full-text copy of the 13-Week Cash Flow Forecast is available
for free at http://bankrupt.com/misc/CSHI_13WeekForecast.pdf
About Cooper-Standard
Cooper-Standard Automotive Inc. -- http://www.cooperstandard.com/
-- headquartered in Novi, Michigan, is a leading global automotive
supplier specializing in the manufacture and marketing of systems
and components for the automotive industry. Products include body
sealing systems, fluid handling systems and NVH control systems.
The Company is one of the leading suppliers of chassis products in
North America, with about 14% of market share. The Company's main
custoemrs include Ford Motor Company, General Motors, Chrysler,
Audi, Volkswagen, BMW, Fiat and Honda, among other automakers.
Cooper-Standard Automotive employs approximately 16,000 people
globally with more than 70 facilities throughout the world.
Cooper-Standard is a privately held portfolio company of The
Cypress Group and Goldman Sachs Capital Partners Funds.
Cooper-Standard Holdings Inc., together with affiliates, filed for
Chapter 11 on August 4, 2009 (Bankr. D. Del. Case No. 09-12743).
Attorneys at Fried, Frank, Harris, Shriver & Jacobson LLP and
Richards, Layton & Finger, P.A., will serve as bankruptcy counsel
to the Debtors. Lazard Freres & Co. is serving as investment
banker while Alvarez & Marsal is financial advisor. Kurtzman
Carson Consultants LLC is notice, claims and solicitation agent.
In its bankruptcy petition, the Company said that assets on a
consolidated basis total $1,733,017,000 while debts total
$1,785,039,000 as of March 31, 2009.
The Company's Canadian subsidiary, Cooper-Standard Automotive
Canada Limited, also sought relief under the Companies' Creditors
Arrangement Act in the Ontario Superior Court of Justice in
Toronto, Ontario, Canada.
Bankruptcy Creditors' Service, Inc., publishes Cooper-Standard
Bankruptcy News. The newsletter tracks the Chapter 11 and CCAA
proceedings undertaken by Cooper-Standard Holdings Inc. and its
various affiliates. (http://bankrupt.com/newsstand/or 215/945-
COYOTES HOCKEY: NHL Suit vs. Ex-Owner Transferred to Arizona
------------------------------------------------------------
Reuters' Jonathan Stempel reports U.S. District Judge P. Kevin
Castel in Manhattan has ordered the transfer of the National
Hockey League's $61 million lawsuit against former Phoenix Coyotes
owner Jerry Moyes to an Arizona federal court. According to
Reuters, the judge cited issues of convenience, the location of
relevant documents, and the availability of witnesses, and held
that the prejudice to the NHL in having the case heard in the
District of Arizona is slight.
The NHL sued Mr. Moyes accusing him of reneging on promises to
keep the team in Phoenix, provide the team with enough capital,
and not cause the team to file a bankruptcy petition.
The Coyotes filed for bankruptcy in May 2009. According to
Reuters, the NHL has said it was forced to buy the Coyotes because
of Mr. Moyes' actions, and expected to lose $20 million on the
team this season. The league has tried to sell the team to a
group of investors known as Ice Edge Holdings, who would keep the
Coyotes in Arizona.
Mr. Moyes' lawyer, Shawn Rabin, Esq., a partner at Susman Godfrey
LLP in New York, said Mr. Moyes plans to seek dismissal of the NHL
case, according to Reuters. Bradley Ruskin, Esq., a lawyer
representing the NHL, did not immediately return a call seeking
comment, Reuters says.
Mr. Moyes and his family control Swift Transportation Co., a
trucking company. The case is National Hockey League v. Moyes
et al, U.S. District Court, Southern District of New York, No.
10-03032.
About Coyotes Hockey
Dewey Ranch Hockey LLC, Arena Management Group, LLC, Coyotes
Holdings, LLC, and Coyotes Hockey, LLC -- owners and affiliates of
the Phoenix Coyotes National Hockey League team -- filed for
Chapter 11 protection (Bankr. D. Ariz. Case No. 09-09488) on
May 5, 2009. The Debtors are represented by Thomas J. Salerno,
Esq., at Squire, Sanders & Dempsey, LLP, in Phoenix, and estimate
their assets and liabilities are between $100 million and
$500 million.
In November 2009, Judge Redfield T. Baum approved the sale of the
Phoenix Coyotes to the National Hockey League, which had bought
the team to quash a plan by bidder Jim Balsillie's to move the
team to Ontario, Canada. Coyotes was sent to Chapter 11 to
effectuate a sale by owner Jerry Moyes to Mr. Balsillie.
The city of Glendale, Ariz., is seeking to convert the Coyotes'
Chapter 11 case to a Chapter 7, echoing the Debtors and unsecured
creditors' belief that the city is trying to wriggle out of having
its bankruptcy claim estimated. The team's former owners have
filed a Chapter 11 plan of liquidation, to rebuff the Chapter 7
conversion bid.
CPI INTERNATIONAL: Comtech Deal Won't Affect Moody's 'B1' Rating
----------------------------------------------------------------
Moody's Investors Service said CPI International, Inc.'s
announcement that it has signed a definitive merger agreement with
Comtech Telecommunications Corp. (not rated) does not affect the
B1 corporate family rating, nor the existing ratings. The ratings
outlook remains stable. It is expected that CPII's debt will be
repaid upon closing of the merger. Upon completion of the merger
and full repayment of rated debt, the ratings will be withdrawn.
The last rating action was on July 24, 2007, when Moody's upgraded
CPII's corporate family rating to B1 from B2. The most recent
credit opinion was updated on June 2, 2009.
CPI International, Inc., the parent company of Communications &
Power Industries, Inc., is a leading manufacturer and distributor
of vacuum electron devices and related equipment for defense and
commercial applications requiring high power and/or high frequency
energy generation.
D I OF NATCHEZ: Voluntary Chapter 11 Case Summary
-------------------------------------------------
Debtor: D I of Natchez, Inc.
c/o Days Inn Natchez
109 Highway 61S
Natchez, MS 39120-5216
Bankruptcy Case No.: 10-01677
Chapter 11 Petition Date: May 7, 2010
Court: U.S. Bankruptcy Court
Southern District of Mississippi
(Jackson Divisional Office)
Debtor's Counsel: Craig M. Geno, Esq.
Harris Jernigan & Geno, PLLC
587 Highland Colony Parkway
P.O. Box 3380
Ridgeland, MS 39157
Tel: (601) 427-0048
Fax: (601) 427-0050
E-mail: cmgeno@harrisgeno.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 Deborah Harrell, president.
FRANKLIN GOODMAN: Voluntary Chapter 11 Case Summary
---------------------------------------------------
Debtor: Franklin Lee Goodman
5905 End O'Trail
Fort Worth, TX 76112
Bankruptcy Case No.: 10-43183
Chapter 11 Petition Date: May 7, 2010
Court: U.S. Bankruptcy Court
Northern District of Texas (Fort Worth)
Judge: Russell F. Nelms
Debtor's Counsel: Jeff P. Prostok, Esq.
Forshey & Prostok, LLP
777 Main Street, Suite 1290
Fort Worth, TX 76102
Tel: (817) 877-8855
E-mail: jpp@forsheyprostok.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $10,000,001 to $50,000,000
The Debtor did not file a list of creditors together with its
petition.
The petition was signed by the Debtor.
Debtor-affiliates filing separate Chapter 11 petition:
Entity Case No. Petition Date
------ -------- -------------
L G Investment Group, Inc. 10-43180 05/07/10
DALLAS MAVERICKS: Minority Owner Seeks Receivership
---------------------------------------------------
Ross Perot Jr., minority owner of the Dallas Mavericks basketball
team in the National Basketball Association, has sued Mavs
majority owner Mark Cuban in Texas state court, alleging that the
team was essentially insolvent and lacked the revenue to pay its
debts.
The New York Times' Richard Sandomir reports Mr. Perot alleged
that the Mavs has amassed net losses of $273 million and debt of
more than $200 million. Mr. Perot, the report continues, also
said that internal projections showed additional losses of
$92 million through 2013 and debt rising to $281 million. The NY
Times says Mr. Perot is seeking damages, the naming of a receiver
to take over the team and the appointment of a forensic accountant
to investigate its finances.
Brendan Case and Gary Jacobson at The Dallas Morning News report
that Mr. Cuban denied the team was insolvent and said Mr. Perot
might be trying to pressure him to buy him out. According to
Dallas Morning News, Mr. Cuban said, "The Mavs operations and debt
are guaranteed by me. There is no risk of insolvency. Everyone
always has been and will be paid on time."
According to the lawsuit, Mr. Cuban controls 76% of Dallas
Basketball Limited, the holding company that owns the Mavs.
Mr. Cuban acquired the Mavs for $285 million from Mr. Perot during
the 1999-2000 season. Mr. Perot still owns 5% of the team.
"I am the largest debt holder and personally guarantee the rest,"
Mr. Cuban told Dallas Morning News. "So he is suing me saying I
can't pay myself back."
According to NY Times, Marc Ganis, a sports industry consultant,
said that Mr. Perot "seems to want to be bought out at a premium,
wants to restrict Cuban's ability to spend money on players, or
it's personal."
The NY Times also reports that Adam Silver, the deputy
commissioner of the NBA, said the league had "absolutely no
concern" about Mr. Cuban's financial situation. According to the
NY Times, Mr. Silver said in an e-mail message, "We are in the
process of addressing our teams' ongoing losses through the
collective bargaining process with our players."
DANIEL CHANG: Files List of 10 Largest Unsecured Creditors
----------------------------------------------------------
Daniel K. Chang and Julia W. Chang have filed with the U.S.
Bankruptcy Court for the Southern District of Mississippi a list
of its 10 largest unsecured creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
First Bank
1126 Jackson Ave
Pascagoula, MS 39567 $550,000
Charter Bank
2206 Bienville Blvd
Ocean Springs, MS 39564 Bank Loan $450,000
Larry Garlla
33 Rock Ledge Road
Hartsdale, NY 10530 $300,000
Charter Bank Bank Loan $190,000
Collateral:
0
Unsecured:
$190,000
Don Templeton $50,000
Citi Cards Credit Card $29,012
Joe Tucker Taxes $24,774
Collateral:
$1,800,000
Unsecured:
$24,774
Citi Cards Credit Card $18,881
Bank Of America Credit Card $12,006
Joe Tucker Taxes $24,000
Collateral:
$1,800,000
Unsecured:
$9,000
Gautier, Massachusetts-based Daniel K. Chang and Julia W. Chang --
dba Avery Investments, LLC; Brendan Cee & Company, LLC; First
Corporate Center, LLC; Hilltop Investments, LLC; J.D. Brash, LLC;
Magnolia Professional Center, LLC; Old Spanish Farm, LLC; and Palm
Court, LLC -- filed for Chapter 11 bankruptcy protection on
April 30, 2010 (Bankr. S.D. Miss. Case No. 10-51012). Nicholas
Van Wiser, Esq., who has an office in Biloxi, Massachusetts,
assists the Company in its restructuring effort. The Company
listed $50,000,001 to $100,000,000 in assets and $10,000,001 to
$50,000,000 in debts.
DANIEL CHANG: Files Schedules of Assets & Liabilities
-----------------------------------------------------
Daniel K. Chang and Julia W. Chang have filed with the U.S.
Bankruptcy Court for the Southern District of Mississippi their
schedules of assets and liabilities, disclosing:
Name of Schedule Assets Liabilities
---------------- ------ -----------
A. Real Property $71,920,000
B. Personal Property $1,122,718
C. Property Claimed as
Exempt
D. Creditors Holding
Secured Claims $33,752,337
E. Creditors Holding
Unsecured Priority
Claims $0
F. Creditors Holding
Unsecured Non-priority
Claims $1,409,899
----------- -----------
TOTAL $73,042,718 $35,162,236
Gautier, Massachusetts-based Daniel K. Chang and Julia W. Chang --
dba Avery Investments, LLC; Brendan Cee & Company, LLC; First
Corporate Center, LLC; Hilltop Investments, LLC; J.D. Brash, LLC;
Magnolia Professional Center, LLC; Old Spanish Farm, LLC; and Palm
Court, LLC -- filed for Chapter 11 bankruptcy protection on
April 30, 2010 (Bankr. S.D. Miss. Case No. 10-51012). Nicholas
Van Wiser, Esq., who has an office in Biloxi, Massachusetts,
assists the Company in its restructuring effort. The Company
listed $50,000,001 to $100,000,000 in assets and $10,000,001 to
$50,000,000 in debts.
DANIEL CHANG: Wants to Hire Byrd & Wiser as Bankruptcy Counsel
--------------------------------------------------------------
Daniel K. Chang and Julia W. Chang sought and obtained
authorization from the Hon. Neil P. Olack of the U.S. Bankruptcy
Court for the Southern District of Mississippi to employ Byrd &
Wiser as bankruptcy counsel.
Byrd & Wiser will assist the Debtors in all phases and aspects
concerning the Chapter 11 proceeding.
Byrd & Wiser will be paid $300 per hour for the Debtors' services.
Nicholas Van Wiser, an attorney at Byrd & Wiser, assures the Court
that the firm is "disinterested" as that term is defined in
Section 101(14) of the Bankruptcy Code.
Gautier, Massachusetts-based Daniel K. Chang and Julia W. Chang --
dba Avery Investments, LLC; Brendan Cee & Company, LLC; First
Corporate Center, LLC; Hilltop Investments, LLC; J.D. Brash, LLC;
Magnolia Professional Center, LLC; Old Spanish Farm, LLC; and Palm
Court, LLC -- filed for Chapter 11 bankruptcy protection on
April 30, 2010 (Bankr. S.D. Miss. Case No. 10-51012). The Company
listed $50,000,001 to $100,000,000 in assets and $10,000,001 to
$50,000,000 in debts.
DIAMOND BAY: Court Dismisses Bankruptcy Case
--------------------------------------------
The Hon. George R. Hodges of the U.S. Bankruptcy Court for the
Western District of North Carolina dismissed the Chapter 11 case
of Diamond Bay, LLC. The Debtor sought for the dismissal, citing
that there are no remaining assets in its estate.
Charlotte, North Carolina-based Diamond Bay, LLC, filed for
Chapter 11 bankruptcy protection on November 19, 2009 (Bankr. W.D.
N.C. Case No. 09-33198). Anna Cotten Wright, Esq., who has an
office in Charlotte, North Carolina, assists the Company in its
restructuring efforts. According to the schedules, the Company
has assets of $37,109,239, and total debts of $47,406,203.
DIKA-LAKEVIEW, LLC: Case Summary & 12 Largest Unsecured Creditors
-----------------------------------------------------------------
Debtor: Dika-Lakeview, LLC
dba Lakeview Square Shopping Center
c/o Marshall N. Dickler
Dickler Kahn Slowikowski & Zavell Ltd.
85 W. Algonquin Road, Suite 420
Arlington Heights, IL 60005
Bankruptcy Case No.: 10-20738
Chapter 11 Petition Date: May 6, 2010
Court: U.S. Bankruptcy Court
Northern District of Illinois (Chicago)
Judge: Eugene R. Wedoff
Debtor's Counsel: David K Welch, Esq.
Crane Heyman Simon Welch & Clar
135 S Lasalle Street, Suite 3705
Chicago, IL 60603
Tel: (312) 641-6777
Fax: (312) 641-7114
E-mail: dwelch@craneheyman.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 12 largest unsecured creditors
filed together with the petition is available for free at
http://bankrupt.com/misc/ilnb10-20738.pdf
The petition was signed by Larry P. Kanar, Manager of Sole Manager
of Debtor.
DON LOPEZ: Case Summary & 11 Largest Unsecured Creditors
--------------------------------------------------------
Joint Debtors: Don Jerod Luis Lopez
dba JK1, LLC
Keri Leigh Ellen Lopez
fka Keri L.E. Holcomb
dba JK1, LLC
1405 SW 28th Street
Redmond, OR 97756
Bankruptcy Case No.: 10-34063
Chapter 11 Petition Date: May 5, 2010
Court: United States Bankruptcy Court
District of Oregon
Judge: Elizabeth L. Perris
Debtor's Counsel: Anthony Albertazzi, Esq.
Albertazzi Law Firm
44 NW Irving Ave.
Bend, OR 97701
Tel: (541) 317-0231
Fax: (541) 385-3106
Scheduled Assets: $567,797
Scheduled Debts: $1,248,298
A list of the Company's 11 largest unsecured creditors filed
together with the petition is available for free at
http://bankrupt.com/misc/orb10-34063.pdf
The petition was signed by Don Jerod Luis Lopez and Keri Leigh
Ellen Lopez.
DOT VN: Begins Commercialization of Vietnamese Internet Portal
--------------------------------------------------------------
Dot VN, Inc., said that the Vietnamese's Information Super Portal
http://www.Info.VNhas been licensed by Vietnam's Ministry of
Information and Communication to begin to provide a variety of
services, including online advertising and paid content. Dot VN
and its partners have designed Info.VN to be the ultimate Internet
portal that will aggregate and organize everything that the
Vietnamese Internet has to offer, serving as the principal online
resource for the Vietnamese people. "Info.VN" successfully
completed its beta test phase.
The launch of Info.VN will allow Dot VN to move forward with its
plans to introduce additional functionality and services to the
site, including daily news, business directories, newswire
services, e-commerce, games, free e-mail, web hosting, a smart
search engine, branded social networking, and cutting edge
advertising solutions. News feeds are currently available from
numerous media sources and video content is expected to be added
soon.
Info.VN is built for individual and business users both in Vietnam
and around the world as a main hub for news, entertainment and
information available in one central and easy to navigate Web
site. The Web site is available in both Vietnamese and English,
making access easier for non-Vietnamese speaking users. VNNIC is
working with Dot VN to provide technical assistance and co-
marketing support for the site. By leveraging the existing
traffic from the domain registry monetization program, Dot VN
expects to initially serve up to 1.1 million Internet users a day.
About Dot VN
Dot VN, Inc. -- http://www.DotVN.com/-- provides innovative
Internet and telecommunication services for Vietnam. The Company
was awarded an "exclusive long term contract" by the Vietnamese
government to register ".vn" (Vietnam) domains and commercialize
Parking Page Marketing/Online Advertising worldwide via the
Internet. Also, Dot VN has exclusive rights to distribute and
commercialize Micro-Modular Data CentersTM solutions and Gigabit
Ethernet Wireless applications to Vietnam and Southeast Asia
region.
At January 31, 2010, the Company's balance sheet showed
$2.5 million in total assets and $10.0 million in total
liabilities for a $7.5 million stockholders' deficit.
Chang G. Park, CPA, in its March 17, 2010 report, said the
Company's losses from operations raise substantial doubt about its
ability to continue as a going concern.
DOT VN: Taps CCG to Assist on Shareholder Communications
--------------------------------------------------------
Dot VN, Inc., on April 20 retained CCG Investor Relations, an
investor relations and strategic advisory firm, to assist the
company's shareholder communications.
Thomas Johnson, Dot VN CEO, commented, "CCG brings a strong and
well respected team with a proven track record of enhancing
shareholder value which will be instrumental as we communicate the
significant milestones we hope to achieve throughout 2010. We
believe that by leveraging CCG's extensive investor relations
expertise, we will not only raise our profile within the
investment community, but more importantly, improve investors'
understanding of our growth strategy and business model."
About CCG Investor Relations
CCG Investor Relations -- http://www.ccgir.com/and
http://www.ccgirasia.com/-- is a global investor relations and
strategic communications consulting firm. In business for more
than 30 years, the agency provides a complete range of investor
communications, counseling, and IT and data solutions through our
global network to more than 300 clients across multiple capital
markets. CCG has been awarded a number of industry honors for its
handling of complex investor relations and crisis communications
matters. The agency's corporate headquarters is in Los Angeles
with additional offices in New York, Beijing, Shanghai, Hongkong,
Frankfurt, Sao Paulo and Tel Aviv.
About Dot VN
Dot VN, Inc. -- http://www.DotVN.com/-- provides innovative
Internet and telecommunication services for Vietnam. The Company
was awarded an "exclusive long term contract" by the Vietnamese
government to register ".vn" (Vietnam) domains and commercialize
Parking Page Marketing/Online Advertising worldwide via the
Internet. Also, Dot VN has exclusive rights to distribute and
commercialize Micro-Modular Data CentersTM solutions and Gigabit
Ethernet Wireless applications to Vietnam and Southeast Asia
region.
At January 31, 2010, the Company's balance sheet showed
$2.5 million in total assets and $10.0 million in total
liabilities for a $7.5 million stockholders' deficit.
Chang G. Park, CPA, in its March 17, 2010 report, said the
Company's losses from operations raise substantial doubt about its
ability to continue as a going concern.
DOVEVIEW LLC: Case Summary & 3 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: Doveview, LLC
120 Robino Court
Suite 301
Wilmington, DE 19804
Bankruptcy Case No.: 10-11519
Chapter 11 Petition Date: May 5, 2010
Court: United States Bankruptcy Court
District of Delaware (Delaware)
Debtor's Counsel: Steven M. Yoder, Esq.
Potter Anderson & Corroon LLP
Hercules Plaza
1313 North Market Street
Wilmington, DE 19801
Tel: (302) 984-6107
Fax: (302) 778-6107
E-mail: syoder@potteranderson.com
Estimated Assets: $10,000,001 to $50,000,000
Estimated Debts: $10,000,001 to $50,00,000
The petition was signed by Michael A. Stortini, managing member.
Debtor's List of 3 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Frank Robino Companies Trade $1,862,947
Frank Robino Jr.
Corporate Center
102 Robino Court
Suite 301
Wilmington, DE 19804
The Commonwealth Group Debt $178,604
John Hynansky Debt $100,000
EAGLE RIVER: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: Eagle River Day Camp, LLC
1470 Perrineville Road
Monroe Township, NJ 08831
Bankruptcy Case No.: 10-23985
Chapter 11 Petition Date: May 6, 2010
Court: United States Bankruptcy Court
District of New Jersey (Trenton)
Judge: Raymond T. Lyons Jr.
Debtor's Counsel: Frank Armenante, Esq.
Malsbury & Armenante, Esqs.
12 N. Main Street
P.O. Box 157
Allentown, NJ 08501
Tel: (609) 259-7944
Fax: (609) 259-0872
E-mail: frankp@malsarmlaw.com
Scheduled Assets: $265,110
Scheduled Debts: $5,605,898
A list of the Company's 20 largest unsecured creditors filed
together with the petition is available for free at
http://bankrupt.com/misc/njb10-23985.pdf
The petition was signed by Barry Wasserman, manager.
ELBIE GROUP: Case Summary & 2 Largest Unsecured Creditors
---------------------------------------------------------
Debtor: The Elbie Group, LLC
336 Orange Street
Charlotte, NC 28205
Bankruptcy Case No.: 10-31294
Chapter 11 Petition Date: May 7, 2010
Court: U.S. Bankruptcy Court
Western District of North Carolina (Charlotte)
Judge: George R. Hodges
Debtor's Counsel: Richard M. Mitchell, Esq.
Mitchell & Culp, PLLC
1001 Morehead Square Drive, Suite 330
Charlotte, NC 28203
Tel: (704) 333-0630
Fax: (704) 333-4975
E-mail: rmmatty@mitchellculp.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
$850,000 while debts total $1,875,200.
A copy of the Company's list of 2 largest unsecured creditors
filed together with the petition is available for free at
http://bankrupt.com/misc/ncwb10-31294.pdf
The petition was signed by Elbie Dewitt Wallace, member manager.
EMMIS COMMUNICATIONS: Martin Capital Holds 4.4% of Common Stock
---------------------------------------------------------------
Martin Capital Management, LLP, disclosed that as of April 27,
2010, it may be deemed to beneficially own 1,428,259 shares or
roughly 4.4% of common stock of Emmis Communications Corporation.
MCM transferred 115 Common Shares to an outside account on April
22, 2010, at a price of $2.17 per share.
MCM sold 443 Common Shares in the open market on April 22, 2010,
at a price of $2.07 per share.
MCM sold 172,900 Common Shares in the open market on April 26,
2010 at a price of $2.31 per share.
MCM sold 450,800 Common Shares in the open market on April 27,
2010 at a price of $2.36 per share.
About Emmis Communications
Headquartered in Indianapolis, Indiana, Emmis Communications
Corporation owns and operates radio stations and magazine
publications in the U.S. and in Europe.
At February 28, 2010, the Company had $498,168,000 in total
assets; $487,246,000 in total liabilities and $140,459,000 in
Series A Cumulative Convertible Preferred Stock; and shareholders'
deficit of $178,959,000. At February 28, 2010, the Company had
non-controlling interests of $49,422,000 and total deficit of
$129,537,000.
As of April 15, 2010, the Company had not paid the Preferred Stock
dividend for six consecutive quarterly periods.
* * *
In April 2009, Moody's cut its corporate family rating on the
Company to 'Caa2'.
In May 2009, S&P raised its corporate credit rating on the Company
to 'CCC+'. In June, S&P withdrew the 'CCC+' Corp. Credit Rating
at the Company's request.
ENERGY TRANSFER EQUITY: Fitch Affirms 'BB-' Issuer Default Rating
-----------------------------------------------------------------
Fitch Ratings affirms the ratings for Energy Transfer Partners,
L.P., and Energy Transfer Equity, L.P., following the announcement
that ETE has entered into an agreement to acquire the general
partner of Regency Energy Partners, LP. In addition, Fitch
affirms the ratings for Midcontinent Express Pipeline LLC. As
part of the transaction ETP will transfer its 50% interest in MEP
to ETE and ETE will subsequently transfer the interest in MEP to
RGNC. Approximately $7.42 billion of outstanding debt securities
are affected. The Rating Outlooks for ETP, ETE and MEP are
Stable.
Energy Transfer Partners, L.P.
-- Issuer Default Rating at 'BBB-';
-- Senior unsecured debt at 'BBB-'.
Energy Transfer Equity, L.P.
-- IDR at 'BB-';
-- Senior secured term loan at 'BB';
-- Senior secured revolving credit facility at 'BB'.
Midcontinent Express Pipeline LLC
-- IDR at 'BBB';
-- Senior Unsecured debt at 'BBB';
-- Short-term IDR at 'F2'.
Under the multi-step transaction ETE will acquire a 100% interest
in RGNC's general partner from an affiliate of GE Energy Financial
Services for approximately $300 million in ETE preferred units.
As a result ETE will own the general partner of both ETP and RNGC.
ETP will transfer its 49.9% interest in MEP to ETE in exchange for
the redemption of 12.3 million ETP limited partner units valued at
approximately $600 million. ETE will then exchange the interest
in MEP with RNGC for 26.3 million LP units valued at approximately
$600 million. Following the transactions, in addition to its
general partner interests, ETE will own approximately 22% of
RNGC's outstanding common units and approximately 28% of ETP's
common units.
Fitch considers the transactions to be credit neutral for ETP, ETE
and MEP. In round numbers, Fitch expects that ETP will forgo
approximately $75 million in annual cash distributions it would
have received from MEP while the annual partner distributions it
pays to ETE will be lowered by about $70 million. In addition,
ETP will no longer be required to provide expected capital
contributions to complete MEP's 2010 pipeline expansion now
estimated at $86 million. Pro forma the transaction ETE's cash
flows will be more diversified albeit the blended quality of its
cash flows will be somewhat weakened. However, the net effect
will be minimal since ETP will continue to provide more than 90%
of ETE's EBITDA. The transaction will have no material effect on
MEP's financial or operating characteristics and on its credit
profile.
ETP's ratings and Stable Outlook reflect the increasing scale,
scope, and diversity of its operations, acceptable quantitative
credit measures, a conservative distribution policy, strong
liquidity, a favorable near-term regional natural gas supply
position from expanding Shale developments, and the expected
benefits of ongoing contractually supported pipeline expansions.
ETP's credit measures are consistent with its peer group of
investment grade MLPs. However, a substantial capital spending
program directed mostly toward pipeline expansion projects has
resulted in debt leverage above historical norms until its large
ongoing expansion projects generate operating returns. Fitch
expects ETP's adjusted Debt/EBITDA ratio to approximate 4.2 times
in 2010. Debt leverage should be lower in 2011 following the
startup of its Fayetteville Express and Tiger pipeline projects.
ETE's ratings and Stable Outlook are primarily dependent on the
financial and operating characteristics of ETP, to a lesser extent
contributions from RGNC, the standalone credit profile of ETE and
the favorable recovery prospects for its senior secured creditors.
Fitch considers adjusted 2010 debt-to-EBITDA of 2.9x, as estimated
by Fitch, as strong for a MLP holding company structure and should
not present an inordinate amount of risk given the quality of the
cash flow stream. Over the long term ETP's and RNGC's upstream
partner distributions should increase as several ongoing expansion
projects and recent acquisitions generate distributable cash. As
a result, ETE's cash flow ratios will strengthen. However, Fitch
recognizes that ETE's outstanding $1.574 billion of debt is
substantial and its ability to refinance the debt prior to 2011
and 2012 maturities could be impaired by weak capital market
conditions.
FAIRFIELD RESIDENTIAL: Takes Brookfield's $180MM Investment Deal
----------------------------------------------------------------
Rachel Feintzeig at Dow Jones' Daily Bankruptcy Review reports
that Judge Brendan L. Shannon on Monday granted Fairfield
Residential LLC permission to move forward with a new investment
deal with Brookfield Asset Management Inc. valued at
$179.25 million. The Debtor obtained authority to cancel a
proposed auction and instead proceed with confirmation with the
deal in hand.
Ms. Feintzeig relates Fairfield had last week announced its
intention to kick off bidding for the chance to fund its exit from
Chapter 11 protection with the offer from Brookfield. But over
the weekend, Fairfield was able to negotiate more attractive terms
for the deal, leading it to abandon its pursuit of higher bids,
Richard Chesley, Esq., at Paul Hastings, said, according to Dow
Jones.
According to Dow Jones, Mr. Chesley said under the revised
agreement:
-- unsecured creditors will see $19.25 million in cash, an
improvement of over 40% from what they were originally
forecast to receive;
-- Brookfield will provide a total of $150 million in
follow-on investment to Fairfield;
-- Fairfield will also have a $10 million loan at its
disposal.
Dow Jones says Brett Miller, Esq., at Morrison & Foerster LLP
representing the unsecured creditors committee, called the new
cash pool "a far cry better" than what they were originally poised
to recover.
The report says Brookfield has until May 24 to file amended plan
supplement documents, and a confirmation hearing originally set
for June 10 has been moved to June 23. According to the report,
Fairfield has asked that objections from dissenting parties be due
June 14 so that it has ample time to negotiate resolutions prior
to confirmation.
Fairfield originally struck a $119.5 million deal with Och-Ziff
Capital Management and the California teachers' pension fund, but
sought to sever that agreement in April after accusing Och-Ziff of
violating a stipulation that barred it from participating in
negotiations to bring other potential investors on board before
July 1.
Brookfield is also seeking to acquire General Growth Properties
Inc.
About Fairfield Residential
San Diego, California-based Fairfield Residential LLC is a fully
integrated multifamily housing company that through its various
subsidiaries provides a diverse mix of services to a wide range of
investors, joint venture partners and clients. FFR either
directly or indirectly acts as a general partner or managing
member of, and owns varying stakes in, a number of project level
operating companies.
The Company and its affiliates -- FF Development, Inc., et al. --
filed for Chapter 11 bankruptcy protection on December 13, 2009
(Bankr. D. Delaware Case No. 09-14378). Daniel J. DeFranceschi,
Esq.; Lee E. Kaufman, Esq.; Paul Noble Heath, Esq.; and Travis A.
McRoberts, Esq., at Richards, Layton & Finger, P.A., assist the
Debtors in their restructuring efforts. The Official Committee of
Unsecured Creditors is represented by Brett H. Miller, Esq.,
Stefan W. Engelhardt, Esq., and Melissa A. Hager, Esq., at
Morrison & Foerster LLP; and William E. Chipman Jr., Esq., Kerri
K. Mumford, Esq., and Kimberly A. Brown, Esq., at Landis Rath &
Cobb LLP. Fairfield Residential listed $100,000,001 to
$500,000,000 in assets and more than $1,000,000,000 in
liabilities. Dow Jones says Fairfield listed assets worth
$958 million and liabilities of nearly $835 million.
FLEETWOOD ENTERPRISES: Can Use BofA's Cash Until July 15
--------------------------------------------------------
The U.S. Bankruptcy Court for the Central District of California
authorized Fleetwood Enterprises, Inc., et al., to use the cash
collateral of Bank of America, as agent for itself and on behalf
of the prepetition secured parties, until the earlier of July 15,
2010, and the effective date of a Plan of Liquidation.
BofA and other lenders assert claims against the Debtors in the
aggregate amount of $61,690,980, secured by substantially all of
the personal property of each of the Debtors.
The Debtors' right to use cash collateral will terminate on 5:00
p.m. PDT on July 15, 2010.
Based in Riverside, California, Fleetwood Enterprises, Inc.,
together with 19 of affiliates, filed for Chapter 11 protection on
March 10, 2009 (Bankr. C.D. Calif. Lead Case No. 09-14254). Craig
Millet, Esq., and Solmaz Kraus, Esq., at Gibson, Dunn & Crutcher
LLP, represent the Debtors in their restructuring efforts. FTI
Consulting Inc. is the financial advisors to the Debtors. The
Debtors tapped Greenhill & Co. LLC as its investment banker.
FLEETWOOD ENTERPRISES: Plan Confirmation Hearing Set for June 15
----------------------------------------------------------------
The U.S. Bankruptcy Court for the Central District of California
will consider at a hearing on June 22, 2010, 2:30 p.m. (prevailing
Pacific Time), the confirmation Fleetwood Enterprises, Inc., et
al.'s Plan of Liquidation. Objections, if any, are due on June 4,
2010. The Plan proponents' Plan confirmation brief, other
evidence in support of confirmation, and reply to any objections
are due on June 15, 2010.
The deadline for returning completed ballots is on June 4, 2010,
at 5:00 p.m. (prevailing Pacific Time).
Pursuant to prior orders of the Bankruptcy Court, the Debtors have
sold or will sell substantially all of their assets. The Plan
provides for the orderly liquidation of the remaining assets of
the Debtors and the distribution of the proceeds of the
liquidation of the Debtors' assets according to the priorities set
forth in the Bankruptcy Code. To accomplish these liquidation and
distribution goals, the Plan contemplates the creation of a
Liquidating Trust to hold estate assets and the appointment of a
Liquidating Trustee to administer the assets. The Plan also
provides for the substantive consolidation of all 50 of the
Debtors' estates. Following entry of the order approving the Plan
on the effective date, (i) all intercompany claims by, between and
among the Debtors will be eliminated, (ii) all assets and
liabilities of the Debtors will be merged or treated as if
they are one set of assets and liabilities, (iii) any obligation
of a Debtor and all guarantees thereof by one or more of the other
Debtors will be deemed to be one obligation, (iv) the equity
interests will be cancelled, and (v) each claim filed or to be
filed against any Debtor will be deemed a single claim against,
and a single obligation of, the consolidated Debtors."
About Fleetwood Enterprises
Based in Riverside, California, Fleetwood Enterprises, Inc., was
the second largest manufactured housing maker in the U.S. and the
largest manufacturer of recreational vehicles over 30 feet in
length.
Fleetwood Enterprises listed assets of $560 million against debt
totaling $624 million in its bankruptcy petition. Fleetwood
Enterprises, together with 19 of affiliates, filed for Chapter 11
protection on March 10, 2009 (Bankr. C.D. Calif. Lead Case No.
09-14254). Craig Millet, Esq., and Solmaz Kraus, Esq., at Gibson,
Dunn & Crutcher LLP, represent the Debtors in their restructuring
efforts. FTI Consulting Inc. is the financial advisor to the
Debtors. The Debtors tapped Greenhill & Co. LLC as its investment
banker.
FORBES MEDI-TECH: Posts C$842,000 Net Loss in Q1 2010
-----------------------------------------------------
Forbes Medi-Tech Inc. reported Monday its results for the first
quarter ended March 31, 2010. The Company reported a net loss of
C$842,000 for the three month period ended March 31, 2010,
compared with net income of C$2,989,000 for the same period of
2009.
Phytosterol revenues for the quarter ended March 31, 2010, totaled
C$1,153,000 compared with C$725,000 for the quarter ended
March 31, 2009.
For the quarter ended March 31, 2010, the Company realized a gross
margin percentage of 10% on phytosterol revenues of C$1,153,000,
compared with a gross margin percentage of 31% on phytosterol
revenues of C$725,000 for the quarter ended March 31, 2009.
The Company's net cash and cash equivalents as of March 31, 2010,
totaled C$1,471,000 compared with C$1,329,000 as at December 31,
2009. The Company had working capital of C$3,099,000 at March 31,
2010, compared with C$3,960,000 at December 31, 2009.
The Company's balance sheet at March 31, 2010, showed C$3,854,663
in total assets, C$2,268,680 of liabilities, and C$1,585,983 of
shareholders' equity.
As reported in the Troubled Company Reporter on April 14, 2010,
KPMG LLP, in Vancouver, B.C., 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 and has a deficit.
"The Company's management is of the view that there are sufficient
financial resources to finance operations through the second
quarter of 2010. This view is based on a number of factors and
assumptions and includes the assumption that our expenditures will
not exceed those currently planned, and that our revenues will
meet or exceed our expectations. Our future operations are
completely dependent upon our ability to complete a strategic
transaction such as a merger, acquisition, sale of business or
other suitable transaction, and/or secure additional funds. If we
are unable to close on a strategic transaction before we exhaust
our available financial resources, then we may be unable to
continue operations as a going concern and will have to consider
winding up, dissolution or liquidation."
A full-text copy of the press release is available for free at:
http://researcharchives.com/t/s?61c0
A full-text copy of the financial statements is available for free
at http://researcharchives.com/t/s?61c1
A full-text copy of the Management's Discussion and Analysis is
available for free at http://researcharchives.com/t/s?61c2
Based in Vancouver, British Columbia, Canada, Forbes Medi-Tech
Inc. (OTC BB: FTMI) -- http://www.forbesmedi.com/-- is a life
sciences company focused on evidence-based nutritional solutions.
Forbes is a provider of value-added products and cholesterol-
lowering ingredients for use in functional foods and dietary
supplements. Forbes successfully developed and commercialized its
Reducol(TM) plant sterol blend, which has undergone clinical
trials in various matrices and has been shown to lower "LDL"
cholesterol levels safely and naturally.
FOUNTAIN VILLAGE: Can Use Prepetition Lenders Cash Until May 24
---------------------------------------------------------------
The Hon. Randall L. Dunn of the U.S. Bankruptcy Court for the
District of Oregon authorized Fountain Village Development to use
cash collateral of Fairway America, LLC, Sam and Michele Pishue
and Riverview Community Bank until May 24, 2010.
The Debtor is also authorized to grant adequate protection to the
lenders for any diminution in value of the lenders' collateral.
Portland, Oregon-based Fountain Village Development, a general
partnership, aka Fountain Village Development Co, owns, develops,
operates, manages, and/or leases 20 buildings in Portland,
Hillsboro, and Gearhart, Oregon. The Company has filed for
Chapter 11 bankruptcy protection on November 20, 2009 (Bankr. D.
Ore. Case No. 09-39718). Albert N. Kennedy, Esq., and Ava L.
Schoen, Esq., who have offices in Portland, Oregon, assist the
Company in its restructuring effort. The Company listed
$50,000,001 to $100,000,000 in assets and $50,000,001 to
$100,000,000 in liabilities.
FX LUXURY: Loses Bid to Continue Paying Lawyers, Accountants
------------------------------------------------------------
Bankruptcy Law360 reports that FX Luxury Las Vegas I LLC will be
barred from retaining and paying accountants, attorneys and other
professionals without going through fee application processes as
its Chapter 11 case unfolds, a judge has ruled. According to
Law360, FX Luxury Las Vegas I LLC will not be able to continue
paying attorneys to litigate other lawsuits involving the company
or accountants helping it with tax.
New York-based FX Luxury Las Vegas I, LLC, fka Metroflag BP, LLC,
owns approximately 17.72 contiguous acres of real property located
at the southeast corner of Las Vegas Boulevard and Harmon Avenue
in Las Vegas, Nevada, which secures its mortgage loans in the
aggregate principal amount of $454 million as of April 21, 2010.
FX Luxury is the remaining Las Vegas subsidiary of FX Real Estate
and Entertainment Inc.
The Company filed for Chapter 11 bankruptcy protection on
April 21, 2010 (Bankr. D. Nev. Case No. 10-17015). Deanna L.
Forbush, Esq., at Fox Rothschild, LLP, assists the Company in its
restructuring effort as the Company's bankruptcy counsel.
Greenberg Traurig, LLP, is the Company's special counsel. Sierra
Consulting Group, LLC, is the Company's financial advisor.
The Company listed $139,636,791 in assets and $492,568,036 in
debts.
GALLOWAY LUMBER: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: Galloway Lumber Company
aka Floor to Ceiling
aka Do It Best Center
P.O. Box 1022
Kirksville, MO 63501
Bankruptcy Case No.: 10-20252
Chapter 11 Petition Date: May 5, 2010
Court: United States Bankruptcy Court
Eastern District of Missouri (Hannibal)
Judge: Kathy A. Surratt-States
Debtor's Counsel: Fredrich J. Cruse, Esq.
The Cruse Law Firm
718 Broadway
P.O. Box 914
Hannibal, MO 63401-0914
Tel: (573) 221-1333
E-mail: fcruse@cruselaw.com
Scheduled Assets: $2,379,082
Scheduled Debts: $3,154,437
A list of the Company's 20 largest unsecured creditors filed
together with the petition is available for free at
http://bankrupt.com/misc/moeb10-20252.pdf
The petition was signed by Kim N. Galloway, president.
GENERAL MOTORS: Senator to Block PBGC Pick Over Delphi Pensions
---------------------------------------------------------------
Sen. Sherrod Brown, D-Ohio, said Tuesday that he would block
consideration of President Barack Obama's nominee for the director
of the Pension Benefit Guaranty Corp. until the administration put
pressure on General Motors Co. to cover its pension obligations to
retirees of GM spinoff Delphi Corp, according to Bankruptcy
Law360. Law360 says the nominee, private equity firm partner
Joshua Gotbaum, was unanimously approved by the Senate Health,
Education, Labor and Pensions Committee on May 5.
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 December 31, 2009, GM had total assets of US$136.295 billion
against total liabilities of US$107.340 billion. At December 31,
2009, total equity was US$21.249 million.
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: Mulls Buying Back Auto-Lending Arm
--------------------------------------------------
The Wall Street Journal's Sharon Terlep reports that two people
familiar with the situation said General Motors Co. is weighing an
attempt to buy back its old auto-lending arm or start a new
finance company in a bid to become more competitive and bolster
the company's appeal ahead of an initial public stock offering.
The Journal recalls GM sold majority control of its lending arm,
GMAC LLC, in 2006. GMAC, which recently renamed itself Ally Bank,
made $653 million on its North American automotive operations in
2010's first quarter.
According to the Journal, GM would be interested mainly in
acquiring Ally's auto-finance business and not GMAC's troubled
mortgage-lending unit. Alternatively, GM could attempt to partner
with other lenders or launch its own finance unit.
The U.S. government holds a 61% stake in GM. As reported by the
Troubled Company Reporter, GM in April repaid a $6.7 billion
federal loan. The Journal says the rest of the government's
$50 billion investment won't be repaid until the U.S. Treasury can
sell its GM shares.
GM has said it would launch an initial public offering as soon as
this year, depending on market conditions and the company's
financial position. GM in the next few days is expected to
announce a solid first-quarter financial performance, the Journal
says.
About General Motors
General Motors Company -- http://www.gm.com/-- is one of the
world's largest automakers, tracing its roots back to 1908. With
its global headquarters in Detroit, GM employs 209,000 people in
every major region of the world and does business in some 140
countries. GM and its strategic partners produce cars and trucks
in 34 countries, and sell and service these vehicles through these
brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, Opel,
Vauxhall and Wuling. GM's largest national market is the United
States, followed by China, Brazil, the United Kingdom, Canada,
Russia and Germany. GM's OnStar subsidiary is the industry leader
in vehicle safety, security and information services.
GM acquired its operations from General Motors Company, n/k/a
Motors Liquidation Company, on July 10, 2009, pursuant to a sale
under Section 363 of the Bankruptcy Code. Motors Liquidation or
Old GM is the subject of a pending Chapter 11 reorganization case
before the U.S. Bankruptcy Court for the Southern District of New
York.
At December 31, 2009, GM had total assets of US$136.295 billion
against total liabilities of US$107.340 billion. At December 31,
2009, total equity was US$21.249 million.
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)
GEORGE PAGLIARO: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------------
Joint Debtors: George Rodolfo Pagliaro
Pamela Jean Pagliaro
dba Pagliaro Construction Inc.
1 Calle Alumbrado
San Clemente, CA 92673
Bankruptcy Case No.: 10-15975
Chapter 11 Petition Date: May 5, 2010
Court: United States Bankruptcy Court
Central District Of California (Santa Ana)
Judge: Theodor Albert
Debtor's Counsel: Vincent Renda, Esq.
Renda Law Offices PC
600 W Broadway Ste 400
San Diego, CA 92101
Tel: (619) 702-4305
Fax: (619) 515-1197
E-mail: vr@rendalawoffices.com
Estimated Assets: $10,000,001 to $50,000,000
Estimated Debts: $10,000,001 to $50,000,000
The petition was signed by George Rodolfo Pagliaro and Pamela Jean
Pagliaro.
Debtor's List of 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
IMH Real Estate Mortgage $5,910,940
Financing
4900 N. Scottsdale Road
Suite 5000
Scottsdale, AZ 85251
Regents Bank Construction $3,585,531
875 Prospect Street Mortgage
La Jolla, CA 92038
Citibank, Inc. Mortgage $291,519
P.O. Box 6006
The Lakes, NV 88901
Wells Fargo Bank, N.A. Equity Line $260,251
P.O. Box 9233 of Credit
Portland, OR 97208
John Griffin Personal Loan $250,000
7531 Magellan Street
Carlsbad, CA 92011
EQ Acquisitions Lease Obligation $80.993
2003, Inc.
Lee Elevator Supplier $38,400
Bleir & Cox LLP Credit Card $21,503
White & Brite Attorney Fees $19,401
Hunt & Henriques Credit Card $17,345
Pro Consulting Supplier $15,598
Services, Inc.
San Diego Wholesale Supplier $15,512
SRA Associates Inc. Credit Card $13,299
Consolidated Electrical Supplier $10,269
Distributors
Coface Collections Subcontractor $9,700
North America, Inc.
Superior Ready Mix Supplier $9,348
Concrete, LP
Daniel J. Lowthan Supplier $9,231
America, Inc.
Transworld Systems, Supplier $8,113
Inc. Collection Agency
Jack R. Creel & Supplier $7,282
Associates
HD Supply Supplier $7,282
GIN KIN: Voluntary Chapter 11 Case Summary
------------------------------------------
Debtor: GIN KIN LC
40 South 600 East
Salt Lake City, UT 84102
Bankruptcy Case No.: 10-26024
Chapter 11 Petition Date: May 6, 2010
Court: United States Bankruptcy Court
District of Utah (Salt Lake City)
Judge: Judith A. Boulden
Debtor's Counsel: Lee Rudd, Esq.
716 East 4500 South
P.O. Box 57782
Salt Lake City, UT 84157
Tel: (801) 268-2808
Fax: (866) 724-6381
E-mail: leerudd@ruddlaw.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $100,001 to $500,000
The Debtor did not file a list of its largest unsecured creditors
together with its petition.
The petition was signed by Thomas R. Blonquist, member.
GLITNIR BANK: Files US$2BB Legal Claim vs. Principal Sharheolder
----------------------------------------------------------------
Glitnir Bank has commenced legal action in the Supreme Court of
the State of New York against Jon Asgeir Johannesson, formerly its
principal shareholder, Larus Welding, previously Glitnir's Chief
Executive, Thorsteinn Jonsson, its former Chairman, and other
former directors, shareholders and third parties associated with
Johannesson, for fraudulently and unlawfully draining more than $2
billion out of the Bank.
Glitnir is also taking action against its former auditors
PricewaterhouseCoopers (PwC), for facilitating and helping to
conceal the fraudulent transactions engineered by Johannesson and
his associates, which ultimately led to the Bank's collapse in
October 2008.
Glitnir has also secured a freezing order from the High Court in
London against Jon Asgeir Johannesson's worldwide assets,
including two apartments in Manhattan's exclusive Gramercy Park
neighbourhood, for which he paid approximately $25 million.
Johannesson - beneficial owner of the now-defunct Baugur
investment group - is understood to be domiciled in the United
Kingdom, and still holds a number of high-profile directorships
there, including Iceland Foods and House of Fraser, two of the
UK's best-known retailers.
The lawsuit, filed in New York on May 11, shows:
* How a cabal of businessmen led by Johannesson conspired to
systematically loot Glitnir Bank in order to prop up their
own failing companies
* How Johannesson and his co-conspirators seized control of
Glitnir, removing or sidelining experienced Bank employees -
and abused this control to place the Bank in extreme
financial peril
* How Johannesson, Welding and the other Defendants
facilitated and concealed their diversions from the Bank by
overriding Glitner's financial risk controls, violating
Iceland's banking laws, and orchestrating a blizzard of
convoluted stock "parking" transactions
* How the individual Defendants, with the complicity of
Glitnir's auditor PwC, raised $1bn from investors in New
York without revealing the truth about the Bank's financial
exposures to Johannesson and his co-conspirators
* How the Defendants' transactions cost Glitnir more than $2bn
and contributed significantly to the Bank's collapse
A full copy of the New York court action will be available at
http://www.glitnirbank.com/
The litigation is being piloted by Glitnir's Winding-Up Board,
which was appointed by the Icelandic Court to supervise the
liquidation of the Bank. It follows a thorough forensic review of
Glitnir's management and transactions in the years leading up to
the Bank's collapse.
On behalf of Glitnir's creditors, the Winding-Up Board is
determined to pursue recovery of assets looted from Glitnir by
Johannesson and the other Defendants, and believes that the New
York court is the most suitable forum for doing so. Central to
the case is the $1bn bond issue sold in September 2007 to New York
investors who were misled as to Glitnir's financial exposures.
Around 90% of Glitnir Bank's estimated 9,000 creditors are thought
to be based outside Iceland.
"There is evidence supporting the allegation that Glitnir Bank was
robbed from the inside," said Steinunn Gudbjartsdottir, chair of
the Glitnir Winding-Up Board. "Today's legal action is a positive
step aimed at making accountable the small number of people whose
intent or negligence contributed significantly to Glitnir's
demise."
Glitnir has already filed separate litigation against some of the
individual Defendants in Iceland. It has also made a relevant
submission to Iceland's Special Prosecutor and Icelandic
authorities. The Icelandic Government has also been notified
about today's litigation.
Last month, a report from Iceland's Special Investigation
Commission ruled that Iceland's financial collapse was partly
caused by the disproportionate exercise influenced over the
country's banks by a small group of businessmen, including Jon
Asgeir Johannesson.
Glitnir Bank's Winding-Up Board's legal representation is Steptoe
& Johnson, LLP (New York) and Slaughter and May (London).
The Glitnir Winding-Up Board will hold a press conference today at
the Hilton Reykjavik Nordica, 2nd floor, Room D, at 14.30
Reykjavik time (15.30 London time, 10.30 New York time).
A telephone dial-in to the press conference will be made available
for the international media. The dial-in is +354 7557755, and the
access code is: 5155200.
GLOBAL ENERGY: Has Until June 30 to Propose Chapter 11 Plan
-----------------------------------------------------------
The Hon. Peter J. Walsh of the U.S. Bankruptcy Court for the
District of Delaware extended Global Energy Holdings Group, Inc.,
et al.'s exclusive periods to files and solicit acceptances for
the proposed Chapter 11 Plan until June 30, 2010, and August 29,
2010, respectively.
Atlanta, Georgia-based Global Energy Holdings Group, Inc. --
http://www.gnhgroup.com/-- is a diversified renewable energy
company. Global develops renewable energy projects, including
biomass gasification and landfill-gas-to-energy projects.
The Company filed for Chapter 11 on November 25, 2009 (Bankr. D.
Del. Case No. 09-14192). Charles J. Brown, Esq. at Archer &
Greiner, P.C. represents the Debtor in its restructuring effort.
As of Sept. 30, 2009, the Debtor listed total assets of
$10.30 million and total debts of $5.27 million.
GLOBAL ENERGY: Two New Members in Unsecured Creditors Committee
---------------------------------------------------------------
Roberta A. DeAngelis, Acting U.S. Trustee for Region 3, amended
the official committee of unsecured creditors in the Chapter 11
cases of Global Energy Holdings Group, Inc., et al. The amendment
reflected the resignation of Gary Klein and Weinberg, Wheeler,
Hudgins, Gunn & Dial, LLC, from the committee, and the appointment
of Nelson Mullins Riley & Scarborough and William D. Haynes
effective May 7, 2010.
The Creditors Committee now consists of:
1. The Legacy Group
Attn: John Elder III
1221 Lamar St., Suite 510
Houston, TX 77010
Tel: (713) 524-0250
Fax: (713) 524-0310
2. Nelson Mullins Riley & Scarborough
Attn: Betsy J. Burn
P.O. Box 11070
Columbia, SC 29211
Tel: (803) 255-9261
Fax: (803) 255-9118
3. William D. Haynes
10 Chastain Reserve
4222 Rickenracker Drive
Atlanta, GA 30342
Tel: (404) 273-4033
Official creditors' committees have the right to employ legal and
accounting professionals and financial advisors, at the Debtor's
expense. They may investigate the Debtor's business and financial
affairs. Importantly, official committees serve as fiduciaries to
the general population of creditors they represent. Those
committees will also attempt to negotiate the terms of a
consensual Chapter 11 plan -- almost always subject to the terms
of strict confidentiality agreements with the Debtors and other
core parties-in-interest. If negotiations break down, the
Committee may ask the Bankruptcy Court to replace management with
an independent trustee. If the Committee concludes reorganization
of the Debtor is impossible, the Committee will urge the
Bankruptcy Court to convert the Chapter 11 cases to a liquidation
proceeding.
Atlanta, Georgia-based Global Energy Holdings Group, Inc. --
http://www.gnhgroup.com/-- is a diversified renewable energy
company. Global develops renewable energy projects, including
biomass gasification and landfill-gas-to-energy projects.
The Company filed for Chapter 11 on November 25, 2009 (Bankr. D.
Del. Case No. 09-14192). Charles J. Brown, Esq. at Archer &
Greiner, P.C. represents the Debtor in its restructuring effort.
As of Sept. 30, 2009, the Debtor listed total assets of
$10.30 million and total debts of $5.27 million.
GRIGIO TEMPE: Files for Chapter 11 Bankruptcy Protection
--------------------------------------------------------
Grigio Tempe Town Lake, operator of an apartment complex, filed
for Chapter 11 reorganization protection, blaming its woes on a
loan on the construction costs. The Company plans to reorganize
and exit bankruptcy as quickly as possible, according to Garin
Groff at East Valley Tribune.
GULF COAST GLASS: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Gulf Coast Glass & Erection Company, Inc.
dba Vision Products, Inc.
Vision Products & Designs
8200 Telephone Road
Houston, TX 77061
Bankruptcy Case No.: 10-33933
Chapter 11 Petition Date: May 7, 2010
Court: U.S. Bankruptcy Court
Southern District of Texas (Houston)
Judge: Wesley W. Steen
Debtor's Counsel: Melissa Anne Haselden, Esq.
Hoover Slovacek LLP
5847 San Felipe, Suite 2200
Houston, TX 77057
Tel: (713).977-8686
Fax: (713).977-5395
E-mail: Haselden@hooverslovacek.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/txsb10-33933.pdf
The petition was signed by Bobby G. Gilbert Jr., president.
GULFSTREAM INT'L: Cherry Bekaert Raises Going Concern Doubt
-----------------------------------------------------------
Gulfstream International Goup, Inc., filed on April 15, 2010, its
annual report on Form 10-K for the year ended December 31, 2009.
Cherry, Bekaert & Holland, L.L.P., 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 and has a net capital deficeincy.
The Company reported a net loss of $7.6 million on $87.3 million
of revenue for 2009, compared with a net loss of $14.8 million on
$105.3 million of revenue for 2008. The year-over-year
improvement in operating results for the year ended December 31,
2009, was primarily attributable to lower fuel prices, and to a
lesser degree, capacity reductions and cost controls compared to
last year. Additionally, in 2008, the airline incurred a charge
of $4.8 million related to loss on the sale of its fleet of eight
Embraer aircraft.
The Company's balance sheet as of December 31, 2009, showed
$14.8 million in assets and $25.7 million of liabilities, for a
stockholders' deficit of $10.9 million.
A full-text copy of the annual report is available for free at:
http://researcharchives.com/t/s?61cf
Fort Lauderdale, Fla.-based Gulfstream International Group, Inc.
(NYSE Amex: GIA) -- http://www.gulfstreamair.com/-- is a holding
company that operates two independent subsidiaries: Gulfstream
International Airlines, Inc. and Gulfstream Training Academy, Inc.
Gulfstream International Airlines, Inc. operates 146 scheduled
flights per day, serving nine destinations in Florida, ten
destinations in the Bahamas, and five destinations from
Continental Airline's Cleveland hub under the Department of
Transportation's Essential Air Service Program and charter service
to Cuba and the Bahamas. The Academy provides flight training
services to fully-licensed commercial pilots.
HAWAIIAN TELCOM: Submits Post-Confirmation Report for Q1
--------------------------------------------------------
Hawaiian Telcom Communications, Inc. and its debtor affiliates
filed with the U.S. Bankruptcy Court for the District
of Hawaii a post-confirmation quarterly report for the period
from January 1 to March 31, 2010.
Hawaiian Telcom Chief Financial Officer Robert F. Reich continues
to assure the Court that the Debtors are fully able to comply
with the terms of their confirmed Amended Joint Plan of
Reorganization. Obtaining regulatory approval from the Hawaii
Public Utility Commission, however, is a factor that may
materially affect the Debtors' ability to obtain a final closing
decree of their bankruptcy cases, he points out. An application
for a final closing decree will be filed following regulatory
approval of the Plan.
Similarly, the first plan payment is due following the release of
a regulatory approval from the HPUC. In this light, the
estimated date of final payment under the Plan is yet
to be determined.
The Post-Confirmation Report details the total disbursements and
quarterly fees paid by the Debtors to the United States
Trustee for Region 15 for the period from December 31, 2008 to
March 31, 2010:
Debtor Total Disbursements Quarterly Fees
------ ------------------- --------------
Hawaiian Telcom $47,260,433 $79,800
Communications, Inc.
Hawaiian Telcom, Inc. $624,822,806 $180,000
Hawaiian Telcom $60,047,752 $71,500
Services Company, Inc.
Hawaiian Telcom Holdco, - $1,950
Inc.
Hawaiian Telcom IP $76,345 $2,925
Video Research, LLC
Hawaiian Telcom IP $172,053 $3,250
Service Delivery
Research, LLC
Hawaiian Telcom IP - $1,950
Video Investment, LLC
Hawaiian Telcom IP - $1,950
Service Delivery
Investment, LLC
A full-text copy of the U.S. Trustee Fees is available for free
at http://bankrupt.com/misc/HawTel_USTrusteeFeestilMar10.pdf
About Hawaiian Telcom
Based in Honolulu, Hawaii, Hawaiian Telcom Communications, Inc.
-- http://www.hawaiiantel.com/-- operates a telecommunications
company, which offers an array of telecommunications products and
services including local and long distance service, high-speed
Internet, wireless services, and print directory and Internet
directory services.
The Company and seven of its affiliates filed for Chapter 11
protection on December 1, 2008 (Bankr. D. Del. Lead Case No.
08-13086). As reported by the TCR on December 30, 2008, Judge
Peter Walsh of the U.S. Bankruptcy Court for the District of
Delaware approved the transfer of the Chapter 11 cases to the U.S.
Bankruptcy Court for the District of Hawaii before Judge Lloyd
King (Bankr. D. Hawaii Lead Case No. 08-02005).
Richard M. Cieri, Esq., Paul M. Basta, Esq., and Christopher J.
Marcus, Esq., at Kirkland & Ellis LLP, represent the Debtors in
their restructuring efforts. The Debtors proposed Lazard Freres &
Co. LLC as investment banker; Zolfo Cooper Management LLC as
business advisor; Deloitte & Touche LLP as independent auditors;
and Kurztman Carson Consultants LLC as notice and claims agent.
An official committee of unsecured creditors has been appointed
and is represented by Christopher J. Muzzi, Esq., at Moseley Biehl
Tsugawa Lau & Muzzi LLC, in Honolulu, Hawaii.
When the Debtors filed for protection from their creditors, they
listed total assets of $1,352,000,000 and total debts of
$1,269,000,000 as of September 30, 2008.
Bankruptcy Judge Lloyd King entered on December 30, 2009, an order
confirming a plan of reorganization for Hawaiian Telcom.
HCA INC: Fitch Puts 'B' Issuer Default Rating on Positive Watch
---------------------------------------------------------------
Fitch Ratings has placed HCA's ratings on Rating Watch Positive:
-- Issuer Default Rating 'B';
-- Secured bank credit facility 'BB/RR1';
-- First lien notes 'BB/RR1';
-- Second lien notes 'B+/RR3';
-- Senior unsecured notes 'CCC/RR6'.
The ratings apply to approximately $26.9 billion of debt
outstanding at March 31, 2010.
Fitch's rating action follows HCA's May 7, 2010 filing for an IPO
of up to $4.6 billion. In the filing the company stated it
intends to use $2.5 billion of the IPO proceeds for debt
reduction, lending support to the expectation that HCA will
operate with lower debt leverage as a publicly traded company.
In Fitch's view, the IPO will lead to lower debt-to-EBITDA
leverage for the company and along with continued improving
operating trends could lead to a positive rating action including
the upgrade of the company's IDR. A ratings upgrade of one-to-two
notches to the 'B+' or 'BB-' IDR level is likely if the company is
able to successfully execute on its IPO strategy and $2.5 billion
of proceeds are applied to debt reduction as planned. Even if the
IPO cannot be successfully executed in 2010 due to poor reception
from equity investors, the ratings would likely still have
positive momentum based on improvement in operating trends and
credit metrics over the past 12-18 months. Based on its pro forma
analysis of a post IPO capital structure and assuming modestly
positive operating trends for 2010 and 2011, Fitch believes the
company could achieve post IPO debt leverage of around 4.0 times,
versus the current 5.1x level.
Similar to other operators in the industry, HCA out-performed
Fitch's 2009 projections, and financial and credit metrics
improved across the sector. In general, top-line revenue trends
were in line with or slightly stronger than Fitch's expectation,
while stronger than expected growth in EBITDA was the result of
margin expansion driven by cost containment efforts and aided by a
favorable expense environment, particularly with respect to labor
costs. HCA generated much stronger cash from operations than
expected on the basis of improved profitability and positive
working capital trends as the company experienced about a three-
day improvement in days sales outstanding.
Free cash flow (defined as cash from operations less capital
expenditure and dividends) turned strongly positive, increasing to
$1.4 billion from $390 million in 2008. Fitch does expect FCF to
turn negative in 2010 on the basis of the $2.25 billion in
shareholder distributions, but in its base case operational
forecast expects the company to generate about $1 billion in FCF
annually beginning in 2011. Fitch expects that if the company
continues to produce robust FCF it will use cash to pursue growth
through acquisitions and return cash to shareholders.
HCA's first quarter 2010 (1Q'10) patient volume and payor mix
trends largely mirrored the broader for-profit hospital industry.
In general, high unemployment rates continue to contribute to
declines in more profitable managed care patient volumes and
increasing uninsured patient volumes. Admissions growth continues
to be softer than growth in equivalent admissions (which are
admission adjusted for outpatient activity) as a trend to shift
previous short-stay inpatient procedures to outpatient settings
persists. In addition, 1Q'10 volumes were negatively affected by
adverse weather conditions in many markets, as well as weaker than
normal seasonal flu activity. The sum of bad debt, charity care
and uninsured discounts equaled 23.5% in the quarter, up 90 basis
points versus the prior year period, but down by 60 bps
sequentially from 4Q'09. This is now the second sequential
quarter that uncompensated care is down across the for-profit
hospital industry, possibly an early indication that the effects
of an economic recovery are beginning to filter through many
markets.
HCA's private equity sponsors recently began to monetize their
investment through special dividends. In February 2010, HCA paid
a $1.75 billion special dividend to shareholders funded through a
draw on its senior secured credit facility, and the company
announced a second dividend payment of $500 million on May 7,
2010. The $500 million dividend is expected to be paid on May 14,
2010 and will be funded through an additional draw on the senior
credit facility. At the time the first special dividend was
announced, Fitch indicated it expected HCA to use most excess
liquidity to return cash to shareholders, and so anticipated the
payment of additional dividends within the context of the 'B' IDR.
Assuming the IPO raises $2.5 billion and the proceeds are used for
debt reduction as planned, it will offset the debt incurred to
fund the dividend payments. Although the company has stated in
the IPO filing that it does not intend to pay cash dividends for
the foreseeable future, based on recent actions Fitch expects the
company may continue to return cash to shareholders.
A key credit concern is the company's bank debt maturity cliff
occurring in 2012-2013. Between February 2009 and March 2010, HCA
took steps to begin to address this issue, accessing the debt
capital market on four separate occasions, and issuing an
aggregate $310 million senior secured second lien notes and around
$4.15 billion senior secured first lien notes. The proceeds of
the note offerings were used to reduce borrowings under the
company's senior secured term loan facilities due 2012 and 2013.
In addition, in April 2010, the company entered into an amendment
to its senior secured term loan B facility, extending the maturity
date for $2 billion of the around $5.5 billion outstanding to
March 2017 from November 2013 in exchange for a 100 bp increase
over the previous pricing. Some of the progress made in
addressing the 2012-2013 maturities was undone by draws on the
senior secured credit facilities due 2012 to fund payment of the
special dividends. Pro forma for the May 2010 $500 million
distribution, around $2.6 billion will be drawn on the facilities,
versus $715 million drawn at Dec. 31, 2009. Concerns regarding
the company's inability to pay down the 2012-2013 debt maturities
through cash flow are mitigated by investors' favorable response
to recent debt offerings (the March 2010 first lien note offering
was oversubscribed, and upsized to $1.4 billion from $1 billion),
as well as the recent willingness of bank lenders to allow
extension of maturities - notably, the term loan B extension
pushed about $2 billion of bank debt maturities out beyond
$5.8 billion of bond debt maturing in 2016.
Fitch believes that healthcare reform will have a neutral-to
slightly-positive impact on the for-profit hospital industry in
the near term, and did not take rating actions in the sector as a
result of the legislative passage of reform in March 2010. The
aspects of the legislation that have the most significant
operating implications for the for-profit hospital industry do not
take effect until 2014, when Medicaid eligibility expansion and
the individual health insurance mandate are expected to increase
the number of Americans with health insurance by around
32 million. In general, the legislation in its current form has
positive implications for insured patient volumes and bad debt
expense, which will be offset to some extent by increased pressure
on reimbursement rates - certainly from government payors, but
likely from commercial payors as well. Between now and the time
the crux of the legislation takes effect in 2014, significant
government regulation will have to be written, which will provide
more clarity on its potential industry impacts.
Liquidity is provided by the company's revolving credit facilities
($1.85 billion available at March 31, 2010), cash on hand
($388 million at March 31, 2010) and FCF of an estimated
$53 million for the latest 12 months ended March 31, 2010. FCF
for the most recent quarter saw the impact of payment of the
$1.75 billion shareholder distribution in February 2010, which was
funded through draws on the bank credit facilities. As of
March 31, 2010 debt/EBITDA equaled 5.1x, up from 4.9x as of
Dec. 31, 2009. Bond maturities through 2014 include:
approximately $624 million maturing in 2010, $273 million maturing
in 2011, $900 million maturing in 2012, $1 billion maturing in
2013, and $1.6 billion maturing in 2014. Bank debt maturities
through 2014 include: $3.4 billion in 2012 and $4 billion in 2013.
HCA maintains a solid financial cushion relative to its debt
covenants. The credit facility financial maintenance covenant
requires that debt/EBITDA be below 7.75x for the LTM ended
March 31, 2010. Based upon Fitch's calculation, HCA's EBITDA
would have to decline by around 35% from the LTM March 31, 2010
level to trip the leverage covenant.
HEFFLER HOLDINGS: Case Summary & 3 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: Heffler Holdings, LLC
1800 McKinley Avenue
National City, CA 91950
Bankruptcy Case No.: 10-07740
Chapter 11 Petition Date: May 5, 2010
Court: U.S. Bankruptcy Court
Southern District of California (San Diego)
Debtor's Counsel: John L. Smaha, Esq.
Smaha Law Group, APC
7860 Mission Center Court, Suite 100
San Diego, CA 92108
Tel: (619) 688-1557
Fax: (619) 688-1558
E-mail: jsmaha@smaha.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
$9,125,000 while debts total $8,096,000.
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/casb10-07740.pdf
The petition was signed by Patrick A. Heffler, manager.
HOLIDAY INN: Files for Bankruptcy to Stop Foreclosure
-----------------------------------------------------
Matt Glynn at News Business Reporter says hotel operator Holiday
Inn Resort and Conference Center filed for bankruptcy under
Chapter 11 to avert a foreclosure action by Royal Bank of Canada,
which is owed $7 million.
According to the report, as part of the foreclosure action, a
receiver, K. Michael Sawicki, was appointed by the state Supreme
Court Justice Kevin Dillon. American Hospitality, the report
relates, wanted to remove the receiver and have the assets
returned to its control, a step that typically occurs after a
bankruptcy filing but Royal Bank wanted Mr. Sawicki retained as
receiver.
INTERNATIONAL COAL: Files Form 10-Q for March 31 Quarter
--------------------------------------------------------
International Coal Group, Inc., filed with the Securities and
Exchange Commission its financial report on Form 10-Q for the
quarterly period ended March 31, 2010.
A full-text copy of the Form 10-Q is available at no charge
at http://ResearchArchives.com/t/s?61d0
The Company said net loss attributable to International Coal
Group, Inc., was $8,852,000 for the three months ended March 31,
2010, from net income attributable to ICG of $3,693,000 for the
same period ended March 31, 2009.
Total revenues -- from coal sales revenues, freight and handling
revenues, and other revenues -- were $288,594,000 for the 2010
quarter from $304,966,000 for the 2009 quarter.
At March 31, 2010, the Company had total assets of $1,584,583,000
against $834,287,000 in total liabilities and non-controlling
interest of $61,000, resulting in stockholders' equity of
$750,296,000.
About International Coal Group
Scott Depot, West Virginia-based International Coal Group, Inc.
(NYSE: ICO) produces coal in Northern and Central Appalachia and
the Illinois Basin. The Company has 13 active mining complexes,
of which 12 are located in Northern and Central Appalachia, and
one in Central Illinois. ICG's mining operations and reserves are
strategically located to serve utility, metallurgical and
industrial customers throughout the eastern United States.
* * *
As reported by the Troubled Company Reporter on March 11, 2010,
Standard & Poor's Ratings Services raised its corporate credit
rating on International Coal Group LLC to 'B+' from 'B-'.
The TCR on March 10, 2010, Moody's Investors Service affirmed the
ratings of International Coal Group, including the corporate
family rating of Caa1. Moody's assigned a Caa1 (LGD 4; 57%)
rating to the company's new $200 million second lien senior
secured notes due 2018. The rating outlook remains stable.
IMPLANT SCIENCES: DMRJ Increases Line of Credit, Loan Maturity
--------------------------------------------------------------
Implant Sciences Corporation said on April 23, 2010, that its
senior secured investor, DMRJ Group LLC, has agreed to increase
the Company's line of credit from $5,000,000 to $10,000,000 and
extend the maturity of all of Implant Sciences' indebtedness from
June 10, 2010 to September 30, 2010. Implant Sciences' total
indebtedness to DMRJ, including all principal and accrued
interest, now stands at approximately $12 million.
The Company further amended and restated the amended and restated
revolving promissory note dated January 12, 2010, to reflect the
new credit limit. The Company's subsidiaries, Accurel Systems
International Corporation, C Acquisition Corp. and IMX Acquisition
Corp., each of which has guaranteed the Company's obligations
under the Notes, joined in the execution of the Amendment and
reconfirmed their respective obligations as guarantors under the
Company's credit documents.
Glenn Bolduc, CEO of Implant Sciences, said the extension enables
the Company to continue to focus its efforts on developing and
marketing explosive trace detection products to meet the current
and emerging threats around the world.
About Implant Sciences
Implant Sciences Corporation (OBB: IMSC.OB) --
http://www.implantsciences.com/-- develops, manufactures and
sells sensors and systems for the security, safety and defense
(SS&D) industries.
As of December 31, 2009, the Company had $5,475,000 in total
assets against $12,995,000 in total liabilities, $5,000,000 in
Series E Convertible Preferred Stock, and $378,000 in Series F
Convertible Preferred Stock, resulting in stockholders' deficit of
$12,898,000.
As reported by the Troubled Company Reporter on January 15, 2010,
Implant Sciences renegotiated its credit agreements with its
senior secured investor, DMRJ Group LLC. DMRJ increased Implant
Sciences' line of credit from $3,000,000 to $5,000,000; extended
the maturity of all of Implant Sciences' indebtedness from
December 10, 2009, to June 10, 2010; waived all existing defaults
through the new maturity date; reduced the interest rate payable
on Implant Sciences' obligations to 15% per annum; and removed all
profit sharing arrangements from the agreements. Implant
Sciences' total indebtedness to DMRJ, including all principal and
accrued interest, now stands at $7,570,000.
IMPLANT SCIENCES: Marcum Replaces UHY LLP as Auditor
----------------------------------------------------
Implant Sciences Corporation disclosed that UHY LLP, its
independent registered public accounting firm, informed the
Company that, effective April 16, 2010, its New England practice
was acquired by Marcum LLP. As a result of this transaction, UHY
informed the Company that it had resigned as the Company's
independent registered public accounting firm effective as of
April 19, 2010.
UHY audited the Company's financial statements for the fiscal
years ended June 30, 2009 and 2008. The audit reports of UHY on
the Company's financial statements for those years contained an
explanatory paragraph related to the ability of the Company to
continue as a going concern. Except for this "going concern"
modification, UHY's reports with respect to those fiscal years did
not contain any adverse opinion or a disclaimer of opinion and
were not qualified or modified as to uncertainty, audit scope or
accounting principles.
The Audit Committee of the Company's Board of Directors has
appointed Marcum LLP as its independent registered public
accounting firm effective April 21, 2010. During the Company's
two most recent fiscal years and the subsequent interim period
prior to engaging Marcum, LLP, the Company has not consulted with
Marcum LLP with respect to: 1) the application of accounting
principles to a specified transaction, either completed or
proposed; 2) the type of audit opinion that might be rendered on
the Company's financial statements; or 3) any matter that was
either the subject of a disagreement (as defined in Item
304(a)(1)(iv) of Regulation S-K) or a reportable event (as
described in Item 304(a)(1)(v) of Regulation S-K).
About Implant Sciences
Implant Sciences Corporation (OBB: IMSC.OB) --
http://www.implantsciences.com/-- develops, manufactures and
sells sensors and systems for the security, safety and defense
(SS&D) industries.
As of December 31, 2009, the Company had $5,475,000 in total
assets against $12,995,000 in total liabilities, $5,000,000 in
Series E Convertible Preferred Stock, and $378,000 in Series F
Convertible Preferred Stock, resulting in stockholders' deficit of
$12,898,000.
As reported by the Troubled Company Reporter on January 15, 2010,
Implant Sciences renegotiated its credit agreements with its
senior secured investor, DMRJ Group LLC. DMRJ increased Implant
Sciences' line of credit from $3,000,000 to $5,000,000; extended
the maturity of all of Implant Sciences' indebtedness from
December 10, 2009, to June 10, 2010; waived all existing defaults
through the new maturity date; reduced the interest rate payable
on Implant Sciences' obligations to 15% per annum; and removed all
profit sharing arrangements from the agreements. Implant
Sciences' total indebtedness to DMRJ, including all principal and
accrued interest, now stands at $7,570,000.
IMPLANT SCIENCES: Seeks Stockholders' OK to Issue 200MM Shares
--------------------------------------------------------------
A Special Meeting of Stockholders of Implant Sciences Corporation
is to be held on June 16, 2010, at 10:00 a.m. Eastern Time, at the
offices of the Company located at 600 Research Drive, Wilmington,
MA 01887, to consider and act upon these matters:
1) To approve an amendment to the Company's Amended and
Restated Articles of Organization to increase the number
of authorized shares of Common Stock from 50,000,000
shares to 200,000,000 shares; and
2) To transact such other business as may properly come
before the Special Meeting or any adjournments or
postponements thereof.
The Company's board of directors has fixed the "record date" to be
the close of business on May 4, 2010.
A full-text copy of the Company's proxy statement is available at
no charge at http://ResearchArchives.com/t/s?61d4
About Implant Sciences
Implant Sciences Corporation (OBB: IMSC.OB) --
http://www.implantsciences.com/-- develops, manufactures and
sells sensors and systems for the security, safety and defense
(SS&D) industries.
As of December 31, 2009, the Company had $5,475,000 in total
assets against $12,995,000 in total liabilities, $5,000,000 in
Series E Convertible Preferred Stock, and $378,000 in Series F
Convertible Preferred Stock, resulting in stockholders' deficit of
$12,898,000.
As reported by the Troubled Company Reporter on January 15, 2010,
Implant Sciences renegotiated its credit agreements with its
senior secured investor, DMRJ Group LLC. DMRJ increased Implant
Sciences' line of credit from $3,000,000 to $5,000,000; extended
the maturity of all of Implant Sciences' indebtedness from
December 10, 2009, to June 10, 2010; waived all existing defaults
through the new maturity date; reduced the interest rate payable
on Implant Sciences' obligations to 15% per annum; and removed all
profit sharing arrangements from the agreements. Implant
Sciences' total indebtedness to DMRJ, including all principal and
accrued interest, now stands at $7,570,000.
J & L: Case Summary & 5 Largest Unsecured Creditors
---------------------------------------------------
Debtor: J & L Auto Sales, Inc.
6719 Airline Drive
Metairie, LA 70003
Bankruptcy Case No.: 10-11567
Chapter 11 Petition Date: May 5, 2010
Court: U.S. Bankruptcy Court
Eastern District of Louisiana (New Orleans)
Judge: Jerry A. Brown
Debtor's Counsel: Richard W. Martinez, Esq.
Richard W. Martinez, APLC
228 St. Charles Avenue, Suite 1310
New Orleans, LA 70130
Tel: (504) 525-3343
Fax: (504) 525-6701
E-mail: richard@rwmaplc.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 5 largest unsecured creditors
filed together with the petition is available for free at
http://bankrupt.com/misc/laeb10-11567.pdf
The petition was signed by Luis G. Villanueva, president.
JACKSON COMMUNITY: Voluntary Chapter 11 Case Summary
----------------------------------------------------
Debtor: Jackson Community Apartments, L.P.
1350 Wonder World Dr.
San Marcos, TX 78666
Bankruptcy Case No.: 10-11276
Chapter 11 Petition Date: May 6, 2010
Court: United States Bankruptcy Court
Western District of Texas (Austin)
Judge: Craig A. Gargotta
Debtor's Counsel: Kim E. Moses, Esq.
Wright Ginsberg Brusilow P.C.
Republic Center, Suite 4150
325 North St. Paul Street
Dallas, TX 75201
Tel: (214) 651-6520
Fax: (214) 744-2615
E-mail: kmoses@wgblawfirm.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Debtor did not file a list of its largest unsecured creditors
together with its petition.
The petition was signed by David N. Shafer, president.
JEFFREY ALBANESE: Voluntary Chapter 11 Case Summary
---------------------------------------------------
Debtor: Jeffrey M. Albanese
212 Elmwood Road
South Salem, NY 10590
Bankruptcy Case No.: 10-22907
Chapter 11 Petition Date: May 7, 2010
Court: U.S. Bankruptcy Court
Southern District of New York (White Plains)
Judge: Robert D. Drain
Debtor's Counsel: Anne J. Penachio, Esq.
Penachio Malara LLP
235 Main Street, Sixth Floor
White Plains, NY 10601
Tel: (914) 946-2889
Fax: (914) 946-2882
Email: apenachio@pmlawllp.com
penachio.anne@gmail.com
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 creditors together with its
petition.
The petition was signed by the Debtor.
JOHN WATFORD: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------
Joint Debtors: John David Watford
Kimberly Barnes Watford
aka Kimberly Lynn Watford
P.O. Box 6663
Dothan, AL 36302
Bankruptcy Case No.: 10-10834
Chapter 11 Petition Date: May 6, 2010
Court: U.S. Bankruptcy Court
Middle District of Alabama (Dothan)
Judge: William R. Sawyer
Debtor's Counsel: Cameron-RRL A. Metcalf, Esq.
Espy, Metcalf & Espy, P.C.
P.O. Drawer 6504
Dothan, AL 36302
Tel: (334) 793-6288
E-mail: cam@espymetcalf.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 $986,086 while debts total $1,405,673.
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/almb10-10834.pdf
The petition was signed by the Joint Debtors.
KELLEE BERGENDAHL: Voluntary Chapter 11 Case Summary
----------------------------------------------------
Debtor: Kellee Bergendahl
18881 Von Karmen Avenue, Suite 1600
Irvine, CA 92612
Bankruptcy Case No.: 10-16014
Chapter 11 Petition Date: May 5, 2010
Court: U.S. Bankruptcy Court
Central District of California (Santa Ana)
Judge: Robert N. Kwan
Debtor's Counsel: Renee M. Daughetee, Esq.
The Daughetee Law Firm
18881 Von Karman Avenue
Irvine, CA 92649
Tel: (949) 608-0832
Fax: (949) 618-8065
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
$2,432,943 while debts total $4,032,712.
The Debtor did not file a list of creditors together with its
petition.
The petition was signed by the Debtor.
KAILASH DEVELOPMENT: Case Summary & Largest Unsecured Creditor
--------------------------------------------------------------
Debtor: Kailash Development LLC
9410 63rd PL West
Mukilteo, WA 98275
Bankruptcy Case No.: 10-15213
Chapter 11 Petition Date: May 6, 2010
Court: United States Bankruptcy Court
Western District of Washington (Seattle)
Judge: Thomas T. Glover
Debtor's Counsel: Mary E. Schmitt, Esq.
3525 Colby Ave Ste 100
Everett, WA 98201
Tel: (425) 252-5567
E-mail: bksection-1@maryslaw.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
In its list of 20 largest unsecured creditors, the Company placed
only one entry:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Asghar and Lisa Ramfar $1,506,040
9410 63rd PL W
Mukilteo, WA 98275
The petition was signed by Asghar Ramfar, managing member.
KELLY THEOBALD: Case Summary & 9 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: Kelly R. Theobald
1777 Quiver Point Ave.
Henderson, NV 89012
Bankruptcy Case No.: 10-18360
Chapter 11 Petition Date: May 6, 2010
Court: United States Bankruptcy Court
District of Nevada (Las Vegas)
Judge: Bruce A. Markell
Debtor's Counsel: Steven L. Yarmy, Esq.
Citizens for Consumer's Rights
5536 S Ft. Apache Road
Suite 102
Las Vegas, NV 89148
Tel: (702) 967-0442
Fax: (702) 967-0443
E-mail: sly@stevenyarmylaw.com
Scheduled Assets: $647,296
Scheduled Debts: $1,093,460
A list of the Company's 9 largest unsecured creditors filed
together with the petition is available for free at
http://bankrupt.com/misc/nvb10-18360.pdf
The petition was signed by Kelly S. Theobald.
KEVIN CHOI: Voluntary Chapter 11 Case Summary
---------------------------------------------
Joint Debtors: Kevin Y. Choi
Su G. Choi
aka Su Pal
Su Gin Pak
dba Voletta Couture
8631 NE 19th Place
Clyde Hill, WA 98004
Bankruptcy Case No.: 10-15297
Chapter 11 Petition Date: May 7, 2010
Court: U.S. Bankruptcy Court
Western District of Washington (Seattle)
Judge: Thomas T. Glover
Debtor's Counsel: Olga Rotstein, Esq.
Tax Atorneys Inc
800 Bellevue Way NE, Suite 400
Bellevue, WA 98004
Tel: (425) 462-2550
E-mail: olga.tax@gmail.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Joint Debtors did not file a list of creditors together with
its petition.
The petition was signed by the Joint Debtors.
KIMBERLY FONG: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: Kimberly Jayne Fong
aka Kimberly Jayne McBride
3439 Classic Drive South
Memphis, TN 38125
Bankruptcy Case No.: 10-25033
Chapter 11 Petition Date: May 7, 2010
Court: U.S. Bankruptcy Court
Western District of Tennessee (Memphis)
Judge: David S. Kennedy
Debtor's Counsel: Gwenthian Joan Hewitt, Esq.
Law Offices of Gwenthian Hewitt
5050 Poplar Avenue, Suite 2400
Memphis, TN 38157
Tel: (901) 864-9977
E-mail: gwen@hewitt-law.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
According to the schedules, the Debtor says that assets total
$1,725,170 while debts total $1,441,061.
A copy of the Debtor's list of 20 largest unsecured creditors
filed together with the petition is available for free at
http://bankrupt.com/misc/tnwb10-25033.pdf
The petition was signed by the Debtor.
KING PHARMACEUTICALS: S&P Affirms 'BB' Corporate Credit Rating
--------------------------------------------------------------
Standard & Poor's Ratings Services said that it affirmed its 'BB'
corporate credit rating on King Pharmaceuticals Inc. and assigned
an issue-level rating of 'BBB-' (two notches above the corporate
credit rating) and a recovery rating of '1' to the company's
proposed $500 million revolver; the 'BB' issue-level rating and
'3' recovery rating on the company's $400 million convertible
notes due in 2026 remain unchanged. At the same time, S&P is
revising its rating outlook on the company to stable from
negative.
"The speculative-grade ratings on King Pharmaceuticals Inc.
reflect the ongoing competitive challenges facing a number of the
company's core products, delayed new pipeline contributions, and
the potential need for significant, debt-financed product
acquisitions," said Standard & Poor's credit analyst Michael
Berrian. However, King still has a relatively diverse product
portfolio and remains conservatively financed.
King's product portfolio faces several challenges that continue to
affect its performance and result in further sales declines in its
higher margin Branded Prescription Pharmaceutical segment, which
accounted for 63% of 2009 revenues. Sales could decline further
if not offset by increased contribution from the Flector Patch and
Embeda, in addition to the near-term approval of pending new
products. Patent protection on King's one-time lead product, the
hypertension drug Altace, expired in December 2007, and subsequent
generic competition continues to result in a sharp sales decline.
King's current top performing product, the muscle relaxant
Skelaxin, generated $91 million of sales in the quarter ended
March 31, 2010 (24% of total sales), a 9.5% decline over prior
year. Despite ongoing patent litigation, generic versions of
Skelaxin entered the market early in the second quarter of 2010.
S&P expects sales of this drug to continue declining given a
decrease in promotional support coupled with the entry of generic
competition. The company's second-leading product, Thrombin-JMI,
used to stop bleeding during surgery, continues to face
competition from ZymoGenetics, which launched a competing product
in January 2008. Sales of this product declined to $37 million in
the quarter ended March 31, 2010, from $47 million in the prior
year period.
L G INVESTMENT: Voluntary Chapter 11 Case Summary
-------------------------------------------------
Debtor: L G Investment Group, Inc.
121 N.E. Loop 820, Suite 300
Hurst, TX 76053
Bankruptcy Case No.: 10-43180
Chapter 11 Petition Date: May 7, 2010
Court: U.S. Bankruptcy Court
Northern District of Texas (Fort Worth)
Judge: D. Michael Lynn
Debtor's Counsel: Jeff P. Prostok, Esq.
Forshey & Prostok, LLP
777 Main Street, Suite 1290
Fort Worth, TX 76102
Tel: (817) 877-8855
E-mail: jpp@forsheyprostok.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 Lee Goodman, president.
LEHMAN BROTHERS: Creditors Seek to Block SunCal Litigation Bid
--------------------------------------------------------------
American Bankruptcy Institute reports that Lehman Brothers
Holding's unsecured creditors' committee is asking Bankruptcy
Judge James Peck to deny a bid by SunCal to sue a unit of the
investment bank in a separate bankruptcy case involving more than
two dozen stalled real-estate projects in California.
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)
LEON MOORE: Files for Bankruptcy Protection Under Chapter 7
-----------------------------------------------------------
Eric Miller at The News Examiner reports that Fairvue developer
Leon Moore filed for Chapter 7 bankruptcy, listing assets of
between $1 million and $10 million, and $10 million and
$50 million. A meeting of creditors is scheduled for June 14 in
U.S. Bankruptcy Court in Nashville.
MACY'S INC: S&P Raises Corporate Credit Rating to 'BB+'
-------------------------------------------------------
Standard & Poor's Ratings Services said that it raised its
corporate credit rating on Macy's to 'BB+' from 'BB'. S&P removed
the ratings from CreditWatch with positive implications, where
they were placed on April 7, 2010. At the same time, S&P raised
the issue-level rating on the company's unsecured debt to 'BB+'
from 'BB' and maintained the '4' recovery rating.
"The upgrade reflects Macy's above-average performance in the past
two quarters, expectations for continued positive operational
trends, and the substantial debt repayment of about $1.5 billion
over the past 15 months," said Standard & Poor's credit analyst
David Kuntz.
The ratings on Cincinnati-based department store operator Macy's
Inc. still reflect the company's below-investment-grade credit
measures after the debt-financed acquisition of May Department
Stores Co. in 2005 and large share repurchases in 2007, its
participation in the intensely competitive retail industry, and
vulnerability to the U.S. economy. Macy's solid position in the
moderate-to-better department store sector, good cash flow
generation, and operational gains from the My Macy's strategy
partly mitigate these risks.
Although 2009 was a difficult year, the company managed its
business relatively well. Revenues fell by 5.6% primarily due to
a decline in same-store sales by 5.3%. However, sales from the
internet business were strong, increasing 19.6% year-over-year.
Margins increased to 12.5% for the 12 months ended Jan. 30, 2010,
compared with 11.8% for the prior period in 2009. This was due to
good inventory management and expense controls, partially offset
by negative operating leverage and higher compensation costs.
Sales increased 7.3% for the first quarter 2010 primarily due to
same-store sales growth of 5.5% during that period. In S&P's
view, part of the operational stability over the past year has
been due to the good execution of the My Macy's strategy. S&P
expects modest improvement in performance over the near to
intermediate term. S&P believes revenues are likely to grow in
the low single digits over this period and that this will
primarily come from same-store sales. S&P expects new stores to
remain limited over the next couple of years with one new
Bloomingdale's and four outlets planned for the balance of 2010.
Margins are expected to expand modestly over the near to
intermediate term resulting from continued good execution and
accrual of benefits from My Macy's strategy, controlled inventory
growth, positive operational leverage, and continued good expense
controls. Operating margins remain among the highest of rated
department stores, and S&P expects this trend to continue over the
intermediate term.
The stable rating outlook on Macy's is based on S&P's expectation
that operations are likely to improve modestly over the near term
due to increased consumer spending, benefits from the My Macy's
program, and good inventory and expense controls. S&P anticipates
that the company will continue to generate solid levels of cash
flow over the intermediate term and that share repurchase activity
will remain subdued. Furthermore, S&P expects the trend of
improving credit metrics to continue based on good performance
coupled with the repayment of maturities over the next couple of
years with cash.
With a 'BB+' corporate credit rating, any upgrade would move the
rating into investment grade. Currently, S&P's satisfactory
assessment of the business risk is already characteristic of
investment grade, but S&P does not yet view the company's
financial risk profile as indicative of an investment-grade
company. S&P would expect credit metrics to be more in-line with
a 'BBB' rated company in order to consider an upgrade.
Specifically, S&P would expect leverage to be in the low 2.0x
range and interest coverage to approach 6.0x. These metrics could
be achieved if the company reduces debt by an additional
$1 billion and performance is above expectations with sales growth
in the mid- to upper-single digits over the intermediate term.
Furthermore, an investment-grade rating will also be predicated on
S&P's expectation for continued operational improvement and a
stable macroeconomic environment.
S&P would consider lowering the rating if performance falters due
to poor execution of the company's new strategy, merchandising
missteps, or weak consumer spending. Under this scenario, EBITDA
would decline in the low double-digit range from current levels,
resulting in leverage above 4.0x.
MARTHA ERNST: Case Summary & Largest Unsecured Creditor
-------------------------------------------------------
Debtor: Martha Marian Ernst
7327 Circulo Papayo
Carlsbad, CA 92009
Bankruptcy Case No.: 10-07743
Chapter 11 Petition Date: May 5, 2010
Court: U.S. Bankruptcy Court
Southern District of California (San Diego)
Judge: Peter W. Bowie
Debtor's Counsel: Marjan Mortazavi, Esq.
Mortazavi & Associates
501 West Broadway, Suite 510
San Diego, CA 92101
Tel: (619) 233-4415
Fax: 619-233-4428
E-mail: attorneymarj@aol.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $500,001 to $1,000,000
A copy of the Debtor's list of 8 largest unsecured creditors filed
together with the petition is available for free at
The list of the Debtor's unsecured creditors filed together with
its petition contains only one entry:
Entity Nature of Claim Claim Amount
------ --------------- ------------
San Diego County Credit Union 7327 Circulo $929,073
5555 Mildred Street Papaya, Carlsbad,
San Diego, CA 92110 CA 92009
The petition was signed by the Debtor.
MATRIX DEVELOPMENT: Wins Confirmation of Chapter 11 Plan
--------------------------------------------------------
Bennett Hall at Gazette-Times reports that Legend Homes said it
has obtained confirmation of its reorganization plan, which will
return $53 million to creditors. The plan is expected to take
effect on June 1.
The Company, Gazette-Times reports, said it will repay about
$49 million to its secured creditors, primarily banks. Vendors
with unsecured claims will receive $1 million, and other unsecured
creditors will get a projected $13.6 million, with a minimum
payment of $12 million.
Headquartered in Portland, Oregon, Matrix Development Corp. aka
Legend Homes -- http://www.legendhomes.com/-- designs and builds
homes and condominiums. The Company filed for Chapter 11
protection on June 10, 2008 (Bankr. D. Ore. Case No. 08-32798).
David A. Foraker, Esq., and Sanford R. Landress, Esq., at Greene &
Markley P.C.; and Stephen T. Boyke, Esq, at the Law Office of
Stephen T. Boyke, represent the Debtor as counsel. When the
Debtor filed for protection from its creditors, it listed between
$100 million and $500 million each in assets and debts.
MERIT MINING: Closes 1st Tranche of $15.5MM Private Placement
-------------------------------------------------------------
Merit Mining Corp. has closed the first tranche of a previously
announced private placement by the Company to Hong Kong Huakan
Investment Co., Limited. The first tranche is comprised of
19,000,000 common shares, priced at $0.50 per share, for gross
proceeds of $9,500,000. A finder's fee, comprised of a cash
payment of $190,000 and 190,000 common shares of the Company, has
been paid. In addition, a finder's warrant has been issued for
950,000 common shares, exercisable on or before May 12, 2011, at
an exercise price of $0.50 per share. All securities issued
pursuant to the first tranche of the private placement are subject
to a four month hold period until September 13, 2010.
Under the terms of the subscription agreement with Huakan, a
second tranche investment of $6,000,000, priced at $0.67 per
common share, will be completed on or before June 30, 2010.
Proceeds of the first closing will be used to: (i) pay $355,000 to
unsecured creditors in connection with the Company's proposal
under the Bankruptcy and Insolvency Act (Canada); (ii) repay all
outstanding principal and accrued interest totalling $4,371,849.96
to extinguish debt owed to Wega Mining AS and Munday Home Sales
Ltd.; (iii) pay accrued and unpaid interest in arrears of
$441,520.55 to the holders of debentures (the "Jory Debentures")
issued pursuant to the Trust Indenture dated July 21, 2008 between
Merit and Computershare Trust Company of Canada. The balance of
proceeds will be used to advance the Greenwood Gold project,
located near Greenwood, BC and the J&L project, located near
Revelstoke, BC, and for general corporate purposes.
In addition, the Company has amended the Jory Debentures to:
extend the maturity date to July 21, 2014; modify the conversion
terms so that they are convertible at $20.00 per share in the
fourth and fifth year, with no convertibility in the sixth year;
and modify the redemption terms to delete the 5% redemption
premium set out in the Trust Indenture.
In connection with the investment by Huakan into Merit, the
Company is continuing to restructure its board of directors.
Effective today, Mr. Shicheng Song, a nominee of Huakan, has been
appointed as a director, replacing Mr. Courtney Shearer, who has
stepped down as a director. Mr. Shearer has agreed to act as a
consultant to the board. Mr. Song has 28 years experience in
accounting, financing and management and currently serves as the
manager of the finance department for Tianjin Huakan Group Co.,
Ltd.
The board has also appointed Mr. Yuandong (Jeffrey) Ren as Chief
Financial Officer and Corporate Secretary of the Company. Mr. Ren
holds an MBA from Tianjin University of China and has 17 years of
experience in financial management, direct investment and fund
management and investment banking.
At the upcoming Annual General Meeting of Shareholders of Merit to
be held on June 30, 2010, a third nominee of Huakan will be
proposed for election to the board of directors.
Deli Tian, Executive Director of Hong Kong Huakan Investment Co.,
Limited, said, "Huakan is very pleased to be making its first
investment in Canada and looks forward to a long and bright future
for Merit."
Fred Sveinson, President and CEO of Merit, states: "The closing of
this initial investment by Huakan into Merit signals the start of
what we believe will be a long and successful partnership. We
look forward to working with Huakan to continue re-building
Merit."
MER-LYN FARMS: Case Summary & xx Largest Unsecured Creditors
------------------------------------------------------------
Debtor: Mer-Lyn Farms LLC
699 Glen Rose Road
Coatesville, PA 19320
Bankruptcy Case No.: 10-13774
Chapter 11 Petition Date: May 7, 2010
Court: U.S. Bankruptcy Court
Eastern District of Pennsylvania (Philadelphia)
Judge: Jean K. FitzSimon
Debtor's Counsel: Allen B. Dubroff, Esq.
101 Greenwood Avenue, Fifth Floor
Jenkintown, PA 19046
Tel: (215) 635-7200
Fax: 215-635-7212
E-mail: allen@dubrofflawllc.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 Lyn Merritt aka Linda Merritt,
president.
MESA AIR GROUP: Plan Exclusivity Extended Until September 2
-----------------------------------------------------------
Judge Martin Glenn of the U.S. Bankruptcy for the Southern
District of New York extended Mesa Air Group, Inc., and its debtor
affiliates' exclusive plan filing period for an additional 120
days through and including September 2, 2010. The Debtors'
Exclusive Solicitation Period is extended for an additional 120
days through and including November 3, 2010.
Pursuant to Section 1121(d) of the Bankruptcy Code, Mesa Air
Group, Inc., and its debtor-affiliates won approval from Judge
Martin Glenn of the U.S. Bankruptcy Court for the Southern
District of New York of an extension through and including (i)
September 2, 2010, their exclusive time to file a plan, and (ii)
November 3, 2010, their exclusive time to solicit acceptances of
the plan.
The Debtors' current Exclusive Filing Period expires on May 5,
2010, and their current Exclusive Solicitation Period expires on
July 6, 2010.
Where the initial 120-day and 180-day periods provided under
Sections 1121(b) and 1121(c)(3) of the Bankruptcy Code, or any
interim extensions thereof, prove to be an unrealistic time frame
within which a debtor may otherwise be compelled to file a plan
of reorganization, Section 1121(d) allows a bankruptcy court to
extend those periods to file a plan and solicit acceptances,
Maria A. Bove, Esq., at Pachulski Stang Ziehl & Jones LLP, in New
York, notes.
The Debtors have in excess of 10,000 creditors, Ms. Bove relates.
As previously reported, the Debtors operate a fleet of 130
aircraft nationwide and in Canada and Mexico. The Debtors also
employ approximately 3,400 individuals.
Ms. Bove relates that the Debtors have already made progress and
that their cases are moving at an appropriate pace. In the first
few months of their Chapter 11 cases, the Debtors have, among
other things:
* Obtained important first day orders authorizing them to
continue existing cash management systems; maintain
insurance programs; pay certain prepetition claims of
employees and maintain related benefits programs; and
implement procedures relating to the protection of their
valuable net operating loss tax attributes, among others.
* Initiated the process of restructuring their aircraft
fleet to rationalize their cost structure and match the
fleet to anticipated future needs.
* Established procedures for the settlement of reclamation
claims filed pursuant to Section 546 of the Bankruptcy
Code and for the sale of certain de minimis assets, as
well as the settlement of certain general unsecured
claims.
* Filed a motion to assume the code-share agreement with
Delta Airlines, Inc.
* Filed their schedules of assets and liabilities and
statements of financial affairs.
* Addressed numerous issues with their suppliers and vendors
to ensure that they continue to operate in Chapter 11.
The Debtors' request for an extension of the Exclusive Periods is
not a negotiation tactic, but instead, a realistic reflection of
the fact that these cases are complex and will require
substantial time to complete, Ms. Bove assures the Court.
About Mesa Air Group
Mesa currently operates 130 aircraft with approximately 700 daily
system departures to 127 cities, 41 states, Canada, and Mexico.
Mesa operates as Delta Connection, US Airways Express and United
Express under contractual agreements with Delta Air Lines, US
Airways and United Airlines, respectively, and independently as
Mesa Airlines and go! Mokulele. This operation links Honolulu to
the neighbor island airports of Hilo, Kahului, Kona and Lihue. The
Company, founded by Larry and Janie Risley in New Mexico in 1982,
has approximately 3,500 employees.
Mesa Air Group Inc. and its units filed their Chapter 11 petitions
Jan. 5 in New York (Bankr. S.D.N.Y. Case No. 10-10018), listing
assets of $976 million against debt totaling $869 million as of
Sept. 30, 2009.
Richard M. Pachulski, Esq., and Laura Davis Jones, Esq., at
Pachulski Stang Ziehl & Jones LLP, serve as local counsel.
Imperial Capital LLC is the investment banker. Epiq Bankruptcy
Solutions is claims and notice agent.
Bankruptcy Creditors' Service, Inc., publishes Mesa Air Bankruptcy
News. The newsletter tracks the Chapter 11 proceedings undertaken
by Mesa Air Group Inc. and its units.
(http://bankrupt.com/newsstand/or 215/945-7000).
MESA AIR GROUP: Removal Period Extended Until August 3
------------------------------------------------------
The Bankruptcy Court granted Mesa Air Group Inc. and its units an
extension of time period within which the Debtors may file notices
of removal of civil actions initiated after the Petition Date
under Rule 9027(a)(3) of the Federal Rules of Bankruptcy Procedure
until the later of (i) August 3, 2010, or (ii) the time
period specified in Rules 9027(a)(3)(A) and (B).
About Mesa Air Group
Mesa currently operates 130 aircraft with approximately 700 daily
system departures to 127 cities, 41 states, Canada, and Mexico.
Mesa operates as Delta Connection, US Airways Express and United
Express under contractual agreements with Delta Air Lines, US
Airways and United Airlines, respectively, and independently as
Mesa Airlines and go! Mokulele. This operation links Honolulu to
the neighbor island airports of Hilo, Kahului, Kona and Lihue. The
Company, founded by Larry and Janie Risley in New Mexico in 1982,
has approximately 3,500 employees.
Mesa Air Group Inc. and its units filed their Chapter 11 petitions
Jan. 5 in New York (Bankr. S.D.N.Y. Case No. 10-10018), listing
assets of $976 million against debt totaling $869 million as of
Sept. 30, 2009.
Richard M. Pachulski, Esq., and Laura Davis Jones, Esq., at
Pachulski Stang Ziehl & Jones LLP, serve as local counsel.
Imperial Capital LLC is the investment banker. Epiq Bankruptcy
Solutions is claims and notice agent.
Bankruptcy Creditors' Service, Inc., publishes Mesa Air Bankruptcy
News. The newsletter tracks the Chapter 11 proceedings undertaken
by Mesa Air Group Inc. and its units.
(http://bankrupt.com/newsstand/or 215/945-7000).
MESA AIR GROUP: Proposes to Settle Aircraft Lease Rejection Claims
------------------------------------------------------------------
Mesa Air Group Inc. and its units seek the approval, pursuant to
Sections 105(a), 363(b) and 502 of the Bankruptcy Code, and Rule
9019 of the Federal Rules of Bankruptcy Procedure, of the
settlement of certain claims arising from the rejection of certain
aircraft leases, in accordance with certain procedures.
To recall, on January 25, 2010, the Debtors filed two motions to
implement procedures governing the elections under the Sections
1110(a) and (b) pending the rejections and the rejection of
aircraft-related leases and abandonment of aircraft subject to
security agreements.
On February 23, 2010, the Court entered (i) an order approving
the Section 1110 Procedures, which governs the process of the
Debtors election to continue to perform under aircraft-related
agreements and the entry into stipulations regarding the terms of
the Debtors' postpetition use of certain aircraft-related
equipment; and (ii) the order approving the Aircraft
Rejection/Abandonment Procedures, which governs the process by
which the Debtors reject aircraft-related leases and abandon
owned aircraft.
Debra I. Grassgreen, Esq., at Pachulski Stang Ziehl & Jones LLP,
in New York, notes that the Aircraft Rejection/Abandonment
Procedures limit the types of claims that could be asserted by
Aircraft Finance Parties as administrative priority and specified
that certain categories of claims could only be asserted as
general unsecured claims.
Pursuant to the Section 1110 Procedures and after extensive arm's
length, good faith negotiations with various aircraft
counterparties, the Debtors entered into 25 stipulations pursuant
to Section 1110(b) with respect to 124 aircraft and 16 engines.
With respect to 11 of the 25 Section 1110(b) Stipulations, the
Debtors and the applicable counterparties agreed to a methodology
for the determination, settlement and allowance of prepetition,
general unsecured claims arising from the Debtors' rejection of
aircraft-related leases -- Section 1110(b) Settled Rejection
Damage Claims.
Proposed Procedures
The Debtors seek the approval of the Section 1110(b) Settled
Rejection Damage Claims. Because a portion of the claim amount
cannot be determined until an aircraft-related lease is rejected,
the Debtors propose certain procedures to establish the final
amount of the Section 1110(b) Settled Rejection Damage Claims,
which procedures authorize the settlement and allowance of these
claims free from any objections other than as set forth.
The Debtors desire to establish an omnibus procedure in these
Chapter 11 cases that will permit the determination, settlement,
and allowance of the Section 1110(b) Settled Rejection Damage
Claims to be concluded on a more cost effective and expeditious
basis, while at the same time preserving an oversight function
for parties-in-interest by providing them with an opportunity to
object to a Notice of Settlement.
An overview of the proposed Settlement Procedures:
(a) Upon rejection, an Aircraft Counterparty's prepetition
general unsecured claim for rejection will be the sum of:
(A) the amount under the applicable aircraft-related
agreement as the "Stipulated Loss Value" or the
equivalent term as of the Petition Date, less
(B) any postpetition payments made by the Debtors under
the terms of the applicable Section 1110(b)
Stipulation, plus (ii) any unpaid prepetition rent
or installment payments, plus (iii) any swap
breakage or hedging fees that are attributable to
the affected aircraft that the Debtors are liable
under any applicable agreements or otherwise, plus
(iv) any reasonable expenses of the applicable
Aircraft Counterparty attributable to the affected
aircraft that the Debtors are required to reimburse
or indemnify the applicable Aircraft Counterparty
under the applicable aircraft-related agreement.
The Stipulated Loss Value is essentially a liquidated
damage formula that is often calculated by multiplying the
purchase price of the aircraft by percentage of the
purchase price that decreases as the lease or security
agreement approaches its term.
(b) In accordance with the Aircraft Rejection/Abandonment
Procedures Order, all proofs of claim for Section 1110(b)
Settled Rejection Damage Claims arising from the rejection
of an aircraft-related lease must be filed with the Court
on or before the later of (i) May 21, 2010, the deadline
set by the Court by which prepetition general unsecured
claims must be filed, (ii) 60 days after the effective
date of rejection or abandonment, or (iii) 60 days after
the Court resolves any objection to rejection or
abandonment.
(c) If the Debtors disagree with any asserted Section 1110(b)
Settled Rejection Damage Claim, they will contact the
applicable Aircraft Counterparty and work in good faith to
resolve any issues so as to be able to agree upon the
amount of the Section 1110(b) Settled Rejection Damage
Claims calculated in accordance with the Rejection Damage
Claim Methodology.
(d) Notwithstanding any other provision in the proposed
Settlement Procedures, the sole basis to object to any
Section 1110(b) Settled Rejection Damage Claim will be
that the claim amount is not calculated in accordance with
the Rejection Damage Claim Methodology or the
reasonableness of the expenses. Subject to this
limitation, any party-in-interest that does not agree with
the amount of any Section 1110(b) Settled Rejection Damage
Claim as set forth in a Notice of Settlement will be
required to (i) file with the Court an objection within 14
days -- Objection Deadline -- after the filing of the
Notice of Settlement setting forth the basis of the
Objection.
The Objection will be served to Pachulski Stang Ziehl &
Jones LLP; counsel to the Official Committee of Unsecured
Creditors; and counsel to the applicable Aircraft
Counterparty.
(e) In the absence of any Objection, the Section 1110(b)
Settled Rejection Damage Claim will be allowed in the
amount set forth in the Notice of Settlement, and will be
binding on all parties in interest in these Chapter 11
cases.
A full-text copy of the proposed Settlement Procedures is
available at no charge at:
http://bankrupt.com/misc/Mesa_ProcSec1110bSettledRejClms.pdf
A schedule of the Aircraft Counterparties and the Stipulated Loss
Values is available at no charge at:
http://bankrupt.com/misc/Mesa_AircraftCP&StipLossVal.pdf
Ms. Grassgreen clarifies that in no event will the allowance of
any Section 1110(b) Settled Rejection Damage Claims provide for
any monetary payment to be made by the Debtors from property of
their estates to or on behalf of the applicable Aircraft
Counterparty except under a Chapter 11 plan of reorganization
approved by the Court.
The allowance of any Section 1110(b) Settled Rejection Damage
Claim will not affect the Debtors' rights, if any, to off-set,
recoup, or reduce a Section 1110(b) Settled Rejection Claim by
any other means permitted under the Bankruptcy Code or under
applicable non-bankruptcy law, she adds.
About Mesa Air Group
Mesa currently operates 130 aircraft with approximately 700 daily
system departures to 127 cities, 41 states, Canada, and Mexico.
Mesa operates as Delta Connection, US Airways Express and United
Express under contractual agreements with Delta Air Lines, US
Airways and United Airlines, respectively, and independently as
Mesa Airlines and go! Mokulele. This operation links Honolulu to
the neighbor island airports of Hilo, Kahului, Kona and Lihue. The
Company, founded by Larry and Janie Risley in New Mexico in 1982,
has approximately 3,500 employees.
Mesa Air Group Inc. and its units filed their Chapter 11 petitions
Jan. 5 in New York (Bankr. S.D.N.Y. Case No. 10-10018), listing
assets of $976 million against debt totaling $869 million as of
Sept. 30, 2009.
Richard M. Pachulski, Esq., and Laura Davis Jones, Esq., at
Pachulski Stang Ziehl & Jones LLP, serve as local counsel.
Imperial Capital LLC is the investment banker. Epiq Bankruptcy
Solutions is claims and notice agent.
Bankruptcy Creditors' Service, Inc., publishes Mesa Air Bankruptcy
News. The newsletter tracks the Chapter 11 proceedings undertaken
by Mesa Air Group Inc. and its units.
(http://bankrupt.com/newsstand/or 215/945-7000).
METALS USA: Files Form 10-Q Report for March 31 Quarter
-------------------------------------------------------
Metals USA Holdings Corp. filed with the Securities and Exchange
Commission its quarterly report on Form 10-Q for the quarterly
period ended March 31, 2010. A full-text copy of the Form 10-Q is
available at no charge at http://ResearchArchives.com/t/s?61ce
The Company posted net income of $100,000 for the 2010 first
quarter from a net loss of $4.1 million for the 2009 first
quarter. Net sales were $287.9 million for the 2010 first quarter
from $330.2 million for the 2009 first quarter.
At March 31, 2010, the Company had total assets of $655.4 million
against $698.4 million, resulting in $43.0 million in
stockholders' deficit.
About Metals USA
Based in Houston, Texas, Metals USA Holdings Corp. --
http://www.metalsusa.com/-- provides a wide range of products and
services in the heavy carbon steel, flat-rolled steel, non-ferrous
metals, and building products markets.
* * *
The Troubled Company Reporter on April 13, 2010, reported that
Standard & Poor's Ratings Services raised its ratings on Houston-
based Metals USA Holdings and its wholly owned subsidiary, Metals
USA Inc., to 'B-' from 'CCC+'. In addition, the ratings remain on
CreditWatch with positive implications. S&P originally placed the
ratings on CreditWatch with positive implications on April 7,
2010, based on S&P's assessment that the company's near-term
operating performance is improving.
The TCR on April 14, 2010, reported that Moody's Investors Service
upgraded its ratings for Metals USA Holdings Corp. and assigned a
stable rating outlook to the North American metal distributor.
MUSA Holdings' corporate family rating was raised to B2 from B3
and the rating on the 11.125% notes issued by its subsidiary
Metals USA Inc. was raised to B3 from Caa1. At the same time,
MUSA Holdings' speculative grade liquidity rating was affirmed at
SGL-3.
MICHAEL FISCHMAN: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------------
Joint Debtors: Michael I. Fischman
Shoshanna Fischman
254 Fort Hill Road
Scarsdale, NY 10583
Bankruptcy Case No.: 10-44189
Chapter 11 Petition Date: May 7, 2010
Court: U.S. Bankruptcy Court
Eastern District of New York (Brooklyn)
Judge: Jerome Feller
Debtor's Counsel: Wayne M. Greenwald, Esq.
475 Park Avenue South - 26th Floor
New York, NY 10016
Tel: (212) 983-1922
Fax: (212) 983 1985
E-mail: grimlawyers@aol.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
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/nyeb10-44189.pdf
The petition was signed by the Joint Debtors.
Debtor-affiliates filing separate Chapter 11 petition:
Entity Case No. Petition Date
------ -------- -------------
304 Washington Ave. Inc 09-51313 12/22/09
Prevention I, Inc. 09-49040 10/15/09
MICHAEL LIBERA: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: Michael Anthony Libera
aka Mike Libera
dba Mike Libera & Associates RE
fdba Mike A. Libera
316 Power Plant Rd
Port Angeles, WA 98363
Bankruptcy Case No.: 10-15225
Chapter 11 Petition Date: May 6, 2010
Court: United States Bankruptcy Court
Western District of Washington (Seattle)
Judge: Thomas T. Glover
Debtor's Counsel: David Carl Hill, Esq.
Law Office of David Carl Hill
2472 Bethel Rd SE Ste A
Port Orchard, WA 98366
Tel: (360) 876-5015
E-mail: bankruptcy@hilllaw.com
Scheduled Assets: $969,516
Scheduled Debts: $1,299,964
A list of the Company's 20 largest unsecured creditors filed
together with the petition is available for free at
http://bankrupt.com/misc/wawb10-15225.pdf
The petition was signed by Michael Anthony Libera.
MIDDLEBROOK PHARMACEUTICALS: Has OK for KCC as Claims Agent
-----------------------------------------------------------
Middlebrook Pharmaceuticals. Inc., sought and obtained
authorization from the Hon. Mary F. Walrath of the U.S. Bankruptcy
Court for the District of Delaware to employ Kurtzman Carson
Consultants LLC as claims, noticing, and balloting agent.
KCC will, among other things:
a. transmit certain notices;
b. receive, docket, scan, maintain, and photocopy claims
filed against the Debtor;
c. assist the Debtor in the distribution of solicitation or
sale materials; and
d. receive, review and tabulate ballots cast in accordance
with voting procedures approved by the Court.
KCC will be paid based on its services agreement pact with the
Debtor. A copy of the agreement is available for free at:
http://bankrupt.com/misc/MIDDLEBROOK_claimsgentservicepact.pdf
Albert H. Kass, the Vice President of Corporate Restructuring
Services for KCC, assures the Court that the firm is
"disinterested" as that term is defined in Section 101(14) of the
Bankruptcy Code.
Westlake, Texas-based Middlebrook Pharmaceuticals, Inc., aka
Advancis Pharmaceuticals Corporation, is a pharmaceutical company
focused on commercializing anti-infective products that fulfill
unmet medical needs. MiddleBrook's proprietary delivery
technology, PULSYS, enables the pulsatile delivery, or delivery in
rapid bursts, of certain drugs. MiddleBrook currently markets
MOXATAG, the first and only FDA-approved once-daily amoxicillin,
and KEFLEX, the immediate-release brand of cephalexin.
The Company filed for Chapter 11 bankruptcy protection on
April 30, 2010 (Bankr. D. Del. Case No. 10-11485). Joel A. Waite,
Esq., at Young, Conaway, Stargatt & Taylor, assists the Company in
its restructuring effort. The Company estimated its assets and
debts at $10,000,001 to $50,000,000.
MIRODDI IMAGING: Case Summary & 18 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: Miroddi Imaging, Inc.
dba Medici Graphics
Concept Printing
Msquared Graphics
Contemporary Printing
27 Centre View Drive
Oyster Bay, NY 11771
Bankruptcy Case No.: 10-73433
Chapter 11 Petition Date: May 7, 2010
Court: U.S. Bankruptcy Court
Eastern District of New York (Central Islip)
Judge: Robert E. Grossman
Debtor's Counsel: Michael J. Macco, Esq.
Macco & Stern, LLP
135 Pinelawn Road, Suite 120 South
Melville, NY 11747
Tel: (631) 549-7900
Fax: (631) 549-7845
E-mail: lsimms@maccosternlaw.com
Estimated Assets: $100,001 to $500,000
Estimated Debts: $1,000,001 to $10,000,000
According to the schedules, the Company says that assets total
$251,744 while debts total $1,329,450.
A copy of the Company's list of 18 largest unsecured creditors
filed together with the petition is available for free at
http://bankrupt.com/misc/nyeb10-73433.pdf
The petition was signed by Cherrise Miroddi, president.
MONDRIAN TTL: Case Summary & 19 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: Mondrian TTL, L.L.C.
dba Mondrian Tempe Town Lake
Grigio Tempe Town Lake
2555 E. Camelback Road, Suite 1050
Phoenix, AZ 85016
Bankruptcy Case No.: 10-14140
Chapter 11 Petition Date: May 9, 2010
Court: U.S. Bankruptcy Court
District of Arizona (Phoenix)
Judge: Randolph J. Haines
Debtor's Counsel: Susan M. Freeman, Esq.
Lewis and Roca
40 N. Central Avenue
Phoenix, AZ 85004-4429
Tel: (602) 262-5756
Fax: (602) 262-5747
E-mail: smf@lrlaw.com
Estimated Assets: $50,000,001 to $100,000,000
Estimated Debts: $50,000,001 to $100,000,000
The petition was signed by Brian Kearney, COO of GDG Enterprises,
LLC, sole manager of Mondrian Mgr. LLC, managing member of
Mondrian TTL.
Debtor's List of 19 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Cornerstone Real Estate Advisers, -- $9,908,853
LLC
Two Galleria Tower
13455 Noel Road, Suite 950
Dallas, TX 75240
City of Tempe deferred water $1,909,869
P.O. Box 5002 and sewer
Tempe, AZ 85280 Assessments
City of Tempe water and trash $23,770
Rio Salado Office monthly services
P.O. Box 5002
Tempe, AZ 85280
Pavlov Media, Inc. Administrative $20,436
services on
satellite system
Firestorm 24/7 of Phoenix -- $10,146
Kates Technology, Inc. -- $8,327
Career Strategies, Inc. -- $5,255
Details Landscape Maint Inc. -- $4,718
Grace Plumbing Services, Inc. plumbing $4,039
Puckett's Flooring -- $3,582
Arizona Partsmaster, Inc. -- $2,148
Schlindler Evevator Corp. -- $2,023
Arizona State University -- $2,000
Jasper's Clear Pool Wholesale & pool service $1,962
Service
Martha's Apt. Cleaners apartment cleaning $1,756
Conservice -- $1,598
On-Site Manager, Inc. -- $1,490
That Heavenly Touch Cleaning -- $1,420
Carpet Services -- $1,415
MPF CORP: To Seek Plan Confirmation on June 9
---------------------------------------------
BankruptcyData.com reports that MPF Corp. will seek approval of
its sale-based plan at a confirmation hearing scheduled for
June 9. MPF's reorganization plan contemplates the sale of the
assets. The Debtor expects to sign an asset purchase agreement
with the buyer three days prior to the confirmation hearing.
Under the deal, the buyer will pay $104 million in cash and assume
certain liabilities.
About MPF Corp.
Headquartered in Bermuda, MPF Corp. Ltd. -- http://www.mpf-
corp.com/ -- engages in deep water oil and gas exploration. The
company was established on April 25, 2006. The company and
debtor-affiliate MPF Holding US LLC filed separate petitions for
Chapter 11 relief on Sept. 24, 2008 (Bankr. S.D. Tex. Case Nos.
08-36086 and 08-36084). MPF-01 followed on Sept. 25, 2008.
D. Bobbitt Noel, Jr., Esq. at Vinson & Elkins LLP, represents the
Debtors as counsel. When the Debtors filed for protection from
creditors, they listed assets of $100 million to $500 million, and
the same range of debts.
The Bermuda Proceedings and the Chapter 11 cases in the U.S. run
as parallel proceedings, which is coordinated to effectuate the
Debtors' goal of providing for a restructuring of their businesses
or sale of assets as may be in the best interests of their estates
and creditors.
MT CALIFORNIA: Voluntary Chapter 11 Case Summary
------------------------------------------------
Debtor: MT California Properties, LLC
7365 Carnelian Street, Suite 232
Rancho Cucamonga, CA 91730
Bankruptcy Case No.: 10-23862
Chapter 11 Petition Date: May 6, 2010
Court: U.S. Bankruptcy Court
Central District of California (Riverside)
Judge: Catherine E. Bauer
Debtor's Counsel: Stephen R. Wade, Esq.
The Law Offices of Stephen R. Wade
400 N Mountain Avenue, Suite 214B
Upland, CA 91786
Tel: (909) 985-6500
Fax: (909) 985-2865
E-mail: dp@srwadelaw.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 Michael G. Wirtes, managing member.
NATIONAL CENTURY: FBI Offers $10,000 Reward for Parrett's Arrest
----------------------------------------------------------------
The Federal Bureau of Investigation is offering $10,000 as reward
for information that will lead to the capture of Rebecca S.
Parrett, former vice chairman, secretary, treasurer, director and
owner of National Century Financial Enterprises, Inc., The
Columbus Dispatch reports.
As widely reported, Ms. Parrett became a fugitive after failing to
show up for a Court appearance, and remains at large, following a
March 2008 jury verdict. The search for Ms. Parrett has been well
publicized, and her disappearance has been featured on America's
Most Wanted.
The U.S. District Court for the Southern District of Ohio
sentenced Ms. Parrett in March 2009 to 25 years in prison and
three years of supervised release. Lance K. Poulsen, National
Century's former CEO was also sentenced to 30 years in prison and
three years of supervised release. District Court Judge Algenon
L. Marbley also ordered Mr. Poulsen and Ms. Parrett to forfeit
$1.7 billion of property representing the proceeds of the NCFE
conspiracy, and to pay restitution of $2.3 billion, jointly and
severally with other defendants.
In February 2010, Ms. Parrett's sister, Linda Case, was arrested
for certain charges, including obstruction of justice and
providing false statements and misleading information to law
enforcement.
Citing the criminal complaint filed against Ms. Case in Columbus,
Ohio, Bloomberg News said authorities believe that Ms. Parrett has
been staying around Guadalajara, Mexico.
The complaint revealed that the sisters used coded e-mails to stay
in contact since September 2008. The report also said that Ms.
Case bought a recreational vehicle, and that she wanted to move to
Mexico with her mother and Ms. Parrett's pets, including her cat,
Sammy.
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.
NATIONAL CENTURY: VI/XII Trust Files Report for March 31 Quarter
----------------------------------------------------------------
Current Paid to Balance
Quarter Date Due
------- ------- -------
A. FEES AND EXPENSES:
1. Trustee Compensation - - -
2. Fees for Attorney for
Trustee - - -
3. Fee for Attorney for
Debtor - $9,591,181 -
4. Other professionals $10,483 5,225,049 -
5. All expenses,
including trustee 2,710 12,088,620 -
B. DISTRIBUTIONS:
6. Secured Creditors - 494,353,519 -
7. Priority Creditors - - -
8. Unsecured Creditors - - -
9. Equity Security
Holders - - -
10. Other Payments or
Transfers 4,918 54,175,125 -
---------- ----------- ----------
Total Plan Payments $18,110 $575,433,495 -
========== =========== ==========
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.
NATIONAL CENTURY: UAT Files Report for March 31 Quarter
-------------------------------------------------------
Current Paid to Balance
Quarter Date Due
------- ------- -------
A. FEES AND EXPENSES:
1. Trustee Compensation - - -
2. Fees for Attorney for
Trustee - - -
3. Fee for Attorney for
Debtor $182,079 $15,599,733 -
4. Other professionals 158,682 11,427,020 -
5. All expenses,
including trustee 225,362 22,605,524 -
B. DISTRIBUTIONS:
6. Secured Creditors - - -
7. Priority Creditors - - -
8. Unsecured Creditors - 205,936,188 -
9. Equity Security
Holders - - -
10. Other Payments or
Transfers - - -
---------- ----------- ----------
Total Plan Payments $566,123 $255,568,465 -
========== =========== ==========
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.
NORTHERN MARINE: Voluntary Chapter 11 Case Summary
--------------------------------------------------
Debtor: Northern Marine Co., LLC
c/o Yvonne Fors
1201 Monster Rd. SW #350
Renton, WA 98057
Bankruptcy Case No.: 10-15245
Chapter 11 Petition Date: May 6, 2010
Court: United States Bankruptcy Court
Western District of Washington (Seattle)
Judge: Karen A. Overstreet
Debtor's Counsel: Donald A. Bailey, Esq.
1218 3rd Ave Ste 1808
Seattle, WA 98101
Tel: (206) 682-4802
E-mail: donald.bailey@shaferbailey.com
Estimated Assets: $100,001 to $500,000
Estimated Debts: $10,000,001 to $50,000,000
The Debtor did not file a list of its largest unsecured creditors
together with its petition.
The petition was signed by Yvonne Fors.
OC1 BUSH: Case Summary & 4 Largest Unsecured Creditors
------------------------------------------------------
Debtor: OC1 Bush, LLC
655 S. Main Street, Suite 200-167
Orange, CA 92868
Tel: (818) 921-2335
Bankruptcy Case No.: 10-16074
Chapter 11 Petition Date: May 6, 2010
Court: U.S. Bankruptcy Court
Central District of California (Santa Ana)
Judge: Erithe A. Smith
Debtor's Counsel: Thomas C. Corcovelos, Esq.
1001 Sixth Street, Suite 150
Manhattan Beach, CA 90266
Tel: (310) 374-0116
Fax: (310) 318-3832
E-mail: corforlaw@corforlaw.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 4 largest unsecured creditors
filed together with the petition is available for free at
http://bankrupt.com/misc/cacb10-16074.pdf
The petition was signed by Brent Held, president.
ompany
Kyber Networks Goods and services $1,950
Ecolab Fabrics Goods and services $1,931
NP Giant Associates, LLC Goods and services $1,862
Travado Goods and services $1,011
DJ's California Goods and services $788
Catering Inc.
National Appeal, Inc. Goods and services $698
GI Industries Goods and services $528
HD Supply Facilities Goods and services $500
Maint.
Royal Cup Coffee Goods and services $451
Young's Market Company Goods and services $388
Ecolab Pest Elim. Div. Goods and services $332
Reliable Repairs Goods and services $326
Xerox Corporation Goods and services $322
Golden West Dental Goods and services $302
Cintas the Uniform Goods and services $300
People
Debtor-affiliate that filed separate Chapter 11 petition:
Petition
Debtor Case No. Date
------ -------- ----
Ocean Park Hotels -TOP, LLC 10-15359 05/06/10
OCEAN PARK (TOP): Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Ocean Park Hotels-TOP, LLC
dba TownPlace Suites by Marriott-Thousand
Oaks/Ventura County
dba TownPlace Suites
dba TownPlace Suites-Thousand Oaks
1712 Newbury Road
Thousand Oaks, CA 91320
Bankruptcy Case No.: 10-15359
Chapter 11 Petition Date: May 6, 2010
Court: United States Bankruptcy Court
Central District Of California (San Fernando Valley)
Judge: Geraldine Mund
Debtor's Counsel: Jeffrey N. Pomerantz, Esq.
10100 Santa Monica Blvd #1100
Los Angeles, CA 90067
Tel: (310) 277-6910
Fax: (310) 201-0760
E-mail: jpomerantz@pszjlaw.com
Estimated Assets: $10,000,001 to $50,000,000
Estimated Debts: $10,000,001 to $50,000,000
The petition was signed by James M. Flagg, manager.
Debtor's List of 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Parker, Milliken, Clark Legal fees $22,138
Franchise Tax Board Corporate Taxes $6,000
NP Giant Associates, LLC Goods and services $2,264
CompWest Insurance Insurance $1,585
Company
Ecolab Goods and services $1,089
AT&T (1151002984) Utilities $769
National Appeal, Inc. Goods and services $598
Getaway Media Corp. Goods and services $538
Excellence in Goods and services $514
Air Conditioning
Kyber Networks Goods and services $415
Royal Cup Coffee Goods and services $412
Christophers Cleaning Goods and services $400
Bring Your Pet.com Goods and services $399
Rayne Water Systems Goods and services $357
Waste Management Goods and services $351
Debbie's Delights Goods and services $334
Verizon California Utilities $290
Advantage Goods and services $280
Ecolab Pest Control Goods and services $278
American Hotel Register Goods and services $257
Debtor-affiliate that filed separate Chapter 11 petition:
Petition
Debtor Case No. Date
------ -------- ----
Ocean Park Hotels -TOY, LLC 10-15358 05/06/10
OCEAN PARK (TOY): Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Ocean Park Hotels - TOY LLC
tra Courtyard by Marriot-Thousand Oaks/Ventura
dba Marriott Courtyard
dba Courtyard-Thousand Oaks
dba Marritott Courtyard-Thousand Oaks
710 Fiero Lane Ste 14
San Luis Obispo, CA 93401
Bankruptcy Case No.: 10-15358
Chapter 11 Petition Date: May 6, 2010
Court: United States Bankruptcy Court
Central District Of California (San Fernando Valley)
Judge: Geraldine Mund
Debtor's Counsel: Jeffrey N. Pomerantz, Esq.
10100 Santa Monica Blvd #1100
Los Angeles, CA 90067
Tel: (310) 277-6910
Fax: (310) 201-0760
E-mail: jpomerantz@pszjlaw.com
Estimated Assets: $10,000,001 to $50,000,000
Estimated Debts: $10,000,001 to $50,000,000
The petition was signed by James M. Flagg, manager.
Debtor's List of 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Parker, Milliken, Clark Legal fees $412,668
555 S. Flower Street,
30th Floor
Los Angeles, CA 90071
Rockbridge Capital, LLC $12,135
Franchise Tax Board Corporate Taxes $6,000
Guest Supply Goods and services $4,892
CompWest Insurance Insurance fees $2,540
Company
Kyber Networks Goods and services $1,950
Ecolab Fabrics Goods and services $1,931
NP Giant Associates, LLC Goods and services $1,862
Travado Goods and services $1,011
DJ's California Goods and services $788
Catering Inc.
National Appeal, Inc. Goods and services $698
GI Industries Goods and services $528
HD Supply Facilities Goods and services $500
Maint.
Royal Cup Coffee Goods and services $451
Young's Market Company Goods and services $388
Ecolab Pest Elim. Div. Goods and services $332
Reliable Repairs Goods and services $326
Xerox Corporation Goods and services $322
Golden West Dental Goods and services $302
Cintas the Uniform Goods and services $300
People
Debtor-affiliate that filed separate Chapter 11 petition:
Petition
Debtor Case No. Date
------ -------- ----
Ocean Park Hotels -TOP, LLC 10-15359 05/06/10
PASADENA PLAYHOUSE: Files for Ch. 11 due to Severe Financial Woes
-----------------------------------------------------------------
According to news.xinhuanet.com, Pasadena Playhouse filed for
bankruptcy due to severe financial difficulties. A person
familiar wit the filing said, "This is a necessary step in our
strategy to reorganize the Playhouse for the benefit of our
creditors and the Pasadena Community at large."
PAUL STEADMAN: Files Schedules of Assets & Liabilities
------------------------------------------------------
Paul R. Steadman has filed with the U.S. Bankruptcy Court for the
District of South Carolina its schedules of assets and
liabilities, disclosing:
Name of Schedule Assets Liabilities
---------------- ------ -----------
A. Real Property $15,309,615
B. Personal Property
C. Property Claimed as
Exempt
D. Creditors Holding
Secured Claims $9,479,731
E. Creditors Holding
Unsecured Priority
Claims $$89,562
F. Creditors Holding
Unsecured Non-priority
Claims $951,197
----------- -----------
TOTAL $15,309,615 $10,520,489
Fort Mill, South Carolina-based Paul R. Steadman filed for Chapter
11 bankruptcy protection on April 30, 2010 (Bankr. D. S.C. Case
No. 10-03145). Nancy E. Johnson, Esq., at the Law Office of Nancy
E. Johnson, LLC, assists the Company in its restructuring effort.
PAUL STEADMAN: Wants Nancy E. Johnson as Bankruptcy Counsel
-----------------------------------------------------------
Paul R. Steadman has sought permission from the U.S. Bankruptcy
Court for the District of South Carolina to employ the Law Office
of Nancy E. Johnson, LLC, as bankruptcy counsel.
The Firm will represent the Debtor in the bankruptcy proceeding.
The Firm will be paid $250 per hour for its services.
Nancy E. Johnson, an attorney at the Firm, assures the Court that
the Firm is "disinterested" as that term is defined in Section
101(14) of the Bankruptcy Code.
Fort Mill, South Carolina-based Paul R. Steadman filed for Chapter
11 bankruptcy protection on April 30, 2010 (Bankr. D. S.C. Case
No. 10-03145). According to the schedules, the Debtor says that
assets total $15,309,615 while debts total $10,520,489.
PINNACLES DEVELOPMENT: Case Summary & 11 Largest Unsec. Creditors
-----------------------------------------------------------------
Debtor: The Pinnacles Development, Inc.
9222 Prototype Drive
Reno, NV 89521
Bankruptcy Case No.: 10-51734
Chapter 11 Petition Date: May 7, 2010
Court: U.S. Bankruptcy Court
District of Nevada (Reno)
Judge: Gregg W. Zive
Debtor's Counsel: Stephen R. Harris, Esq.
Belding, Harris & Petroni, Ltd
417 W Plumb Lane
Reno, NV 89509
Tel: (775) 786-7600
Fax: (775) 786-7764
E-mail: steve@renolaw.biz
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 11 largest unsecured creditors
filed together with the petition is available for free at
http://bankrupt.com/misc/nvb10-51734.pdf
The petition was signed by D. Frederick Altmann, president.
PLAZA CACHE: Voluntary Chapter 11 Case Summary
----------------------------------------------
Debtor: Plaza Cache Inc.
Plaza Caparra Shopping Center
Oficina 207A
Guaynabo, PR 00968
Bankruptcy Case No.: 10-03776
Chapter 11 Petition Date: May 5, 2010
Court: United States Bankruptcy Court
District of Puerto Rico (Old San Juan)
Debtor's Counsel: Maximiliano Trujillo-Gonzalez, Esq.
Maximiliano Trujillo Law Office
P.O. Box 9481
Bayamon, PR 00926
Tel: (787) 399-0820
Fax: (787) 200-5063
E-mail: maxtruj@yahoo.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Debtor did not file a list of its largest unsecured creditors
together with its petition.
The petition was signed by Enrique Goldberg-Faigenblat, president.
PORTFOLIO INVESTMENTS: Voluntary Chapter 11 Case Summary
--------------------------------------------------------
Debtor: Portfolio Investments, LLC
3017 200th Avenue E
Lake Tapps, WA 98391
Tel: (253) 370-5036
Bankruptcy Case No.: 10-43655
Chapter 11 Petition Date: May 6, 2010
Court: U.S. Bankruptcy Court
Western District of Washington (Tacoma)
Judge: Paul B. Snyder
Debtor's Counsel: Susan Chang, Esq.
Tax Attorneys Inc
800 Bellevue Way NE 4th Floor
Bellevue, WA 98004
Tel: (206) 607-6805
E-mail: susanchang@tax-attorneys.info
Estimated Assets: $100,000,001 to $500,000,000
Estimated Debts: $100,000,001 to $500,000,000
The petition was signed by Steven J. Nikolich, managing member.
The Company did not file a list of creditors together with its
petition.
PROJECT ORANGE: Gets 14-Day Extension of Filing of Schedules
------------------------------------------------------------
The Hon. Martin Glenn of the U.S. Bankruptcy Court for the
Southern District of New York extended, at the behest of Project
Orange Associates, LLC, the 14-day period to file its schedules of
assets and liabilities, schedules of current income and current
expenditures, schedules of executory contracts and unexpired
leases, and statements of financial affairs by an additional 14
days through and including May 27, 2010.
Due to limited resources and the vast amount of information that
the Debtor must compile and assemble for its schedules and
statements, the Debtor anticipated that it won't be able to
complete its schedules and statements in the 14-day period.
New York-based Project Orange Associates, LLC, filed for Chapter
11 bankruptcy protection on April 29, 2010 (Bankr. S.D.N.Y. Case
No. 10-12307). Timothy W. Walsh, Esq., at DLA Piper LLP (US),
assists the Company in its restructuring effort. The Company
estimated its assets and debts at $10,000,001 to $50,000,000.
PROJECT ORANGE: Taps Epiq Bankruptcy as Claims & Noticing Agent
---------------------------------------------------------------
Project Orange Associates, LLC, sought and obtained permission
from the Hon. Martin Glenn of the U.S. Bankruptcy Court for the
Southern District of New York to employ Epiq Bankruptcy Solutions,
LLC, as claims and noticing agent.
Epiq will, among other things:
(a) assist the Debtor with preparation and distribution of
all required notices in the case;
(b) promptly after the service of a particular notice, file
with the Clerk's Office and on the Court's docket a
certificate or affidavit of service;
(c) receive, examine, and maintain copies of all proofs of
claim and proofs of interest filed in the case; and
(d) maintain official registers in each of the Debtor's case
by docketing all proofs of claim and proofs of interest
in the applicable claims database that includes
information for each claim or interest asserted.
Epiq will be compensated based on its services agreement with the
Debtor. A copy of the agreement is available for free at:
http://ResearchArchives.com/t/s?61d3
To the best of the Debtor's knowledge, Epiq is "disinterested" as
that term is defined in Section 101(14) of the Bankruptcy Code.
New York-based Project Orange Associates, LLC, filed for Chapter
11 bankruptcy protection on April 29, 2010 (Bankr. S.D.N.Y. Case
No. 10-12307). Timothy W. Walsh, Esq., at DLA Piper LLP (US),
assists the Company in its restructuring effort. The Company
estimated its assets and debts at $10,000,001 to $50,000,000.
PROTECTION ACQUISITION: Moody's Puts 'B2' Corporate Family Rating
-----------------------------------------------------------------
Moody's Investors Service assigned a B2 corporate family rating
and a B2 probability-of-default rating to Protection Acquisition
Sub, Inc., a new entity formed by affiliates of GTCR ("the
sponsor"), that will merge into Protection One, Inc. (the
surviving entity that directly owns Protection One Alarm
Monitoring, Inc.) at transaction closing. Moody's also assigned
B1 ratings to Protection Acquisition Sub, Inc.'s proposed
$25 million senior secured revolving credit facility due 2015 and
$390 million senior secured term loan due 2016. The ratings
outlook is stable.
Proceeds from the proposed senior secured credit facilities and
$150 million of mezzanine debt (unrated) combined with a
$331 million common equity contribution from the sponsor and cash
on hand will be used to fund the acquisition of Protection One and
to repay existing debt for total consideration of approximately
$878 million. The transaction is expected to close in early June.
Moody's expects to withdraw the ratings of Protection One Alarm
Monitoring, Inc., at the close of the transaction.
Protection One's B2 corporate family rating reflects increased
debt levels, high financial leverage, and the likelihood that
credit metrics will worsen over the near-term due to lower
profitability levels stemming from a reduction in recurring
monthly revenue. The rating also considers the potential for
increased competition given the pending merger of the two industry
leaders (ADT and Broadview), acquisition risk as the company seeks
to consolidate the space, challenging industry conditions given
the weak economy and the associated pressure on attrition rates.
Notwithstanding these concerns, the rating is supported by the
substantial common equity contribution from the sponsor and
expectations for modest free cash flow generation that should
accommodate some debt reduction. The rating is also supported by
the company's business position as a leading provider of security
alarm monitoring services, its national footprint, the high
proportion of recurring revenues (approximately 90%), increasing
sales from the commercial sector, and recent improvements in
retail attrition rates.
These ratings were assigned:
Protection Acquisition Sub, Inc.
-- Corporate family rating at B2;
-- Probability-of-default rating at B2;
-- $25 million senior secured revolving credit facility due 2015
at B1 (LGD3, 35%);
-- $390 million senior secured term loan due 2016 at B1 (LGD3,
35%).
These ratings will be withdrawn at transaction closing:
Protection One Alarm Monitoring, Inc.
-- Corporate family rating at B2;
-- Probability-of-default rating at B3;
-- Senior secured revolving credit facility due 2011 at Ba3;
-- Senior secured term loan due 2012 at Ba3;
-- Senior secured term loan due 2014 at Ba3.
The ratings are subject to the conclusion of the transactions, as
proposed, and Moody's review of final documentation.
The last rating action was on October 26, 2009, when Moody's
affirmed Protection One's B2 corporate family rating following the
company's proposed refinancing of its capital structure. Moody's
also assigned a Ba3 rating to the then proposed revolving credit
facility and amended/extended senior secured term loan.
Headquartered in Lawrence, Kansas, Protection One provides
security alarm monitoring services, which include sales,
installation and related servicing of security alarm systems for
residential and business customers. The company is being acquired
by affiliates of private equity firm GTCR. The company reported
revenues of approximately $368 million for the fiscal-year ended
December 31, 2009.
PROTECTION ONE: S&P Affirms Corporate Credit Rating at 'B+'
-----------------------------------------------------------
Standard & Poor's Ratings Services said it affirmed its 'B+'
corporate credit rating on Lawrence, Kan.-based alarm monitoring
company Protection One Inc. This action follows the company's
announcement that it has agreed to be acquired by a group of
private investors for about $828 million in cash. As a result of
the LBO, debt levels will increase to the mid-5x area from under
5x. At the same time, S&P removed the ratings from CreditWatch
with negative implications, where they had been placed on Jan. 22,
2010. The outlook is stable.
S&P also assigned an issue-level rating of 'BB' with a recovery
rating of '1' to PONE's proposed $390 million senior secured term
loan due 2016 and a $25 million revolver due 2015. The '1'
recovery rating indicates expectations for very high (90%-100%)
recovery in the event of payment default.
"The ratings on PONE reflect the company's highly leveraged
financial profile and second-tier position in the highly
competitive and fragmented U.S. security alarm monitoring
industry," said Standard & Poor's credit analyst Joseph Spence. A
weak housing market, which has weakened the residential security
alarm market, further compounds these factors. PONE's largely
recurring revenue base and improving attrition rates partly offset
those challenges.
QUALITY CANDY: Gets $2.2 Million Offer From Investors
-----------------------------------------------------
According to Journal Sentinel, a group of investors led by Richard
Koenings made a $2.2 million bid for the assets of Quality
Candy/Buddy/Squirrel, which offer is subject to court approval.
The Company asked the court to reject leases for stores including
stores at The Shops of Grand Avenue, in downtown Milwaukee;
Mayfair Mall in Wauwatosa; Packard Plaza in Cudahy; Bayshore Town
Center in Glendale; Brookfield Square in Brookfield; and
Southridge Mall in Greendale, report says.
Quality Candy Shoppes/Buddy Squirrel of Wisconsin Inc owns Quality
Candy Shoppes and Buddy Squirrel that owns and operates stores in
the Milwaukee area, Racine and Madison. The Company sought
protection under Chapter 11 in the U.S. Bankruptcy Court in
Milwaukee, listing both assets and debts of between $1 million and
$10 million.
RADIENT PHARMACEUTICALS: CEO MacLellan Gets $517,940 as 2009 Pay
----------------------------------------------------------------
Radient Pharmaceuticals Corporation disclosed in a regulatory
filing that Douglas MacLellan, its President, CEO and Chairman,
was paid $517,940 in total compensation for 2009. Mr. MacLellan
received $240,000 for 2008 work. The 2009 pay included a $30,000
cash bonus.
Effective as of October 31, 2008, the Company's former president
and CEO, Gary L. Dreher, resigned from all of his positions; Mr.
MacLellan replaced Mr. Dreher as President, CEO and Chairman in
November 2008. Pursuant to Mr. MacLellan's appointment, he earned
a bonus of $60,000 for the quarter ended December 31, 2008.
As Chairman of the Company's Compensation Committee and as
Chairman of the Governance and Audit Committees, Mr. MacLellan
received an additional $15,000 per month.
Akio Ariura, the Company's Chief Financial Officer, was paid
$360,900 for 2009. He received $238,749 in total pay for 2008.
About Radient Pharmaceuticals
Headquartered in Tustin, California, Radient Pharmaceuticals
Corporation is an integrated pharmaceutical company devoted to the
research, development, manufacturing, and marketing of diagnostic,
and premium skin care products.
As of December 31, 2009, the Company had total assets of
$26,319,086 against total liabilities of $5,626,326, resulting in
a stockholders' equity of $20,692,760. The December 31, 2009,
balance sheet shows strained liquidity: the Company had total
current assets of $507,845 against total current liabilities of
$4,728,677.
In its April 15, 2010 report, KMJ | Corbin & Company LLP in Costa
Mesa, California, noted that the Company has incurred a
significant operating loss in 2009 and negative cash flows from
operations in 2009 and has an a working capital deficit of
approximately $4.2 million at December 31, 2009. These items
raise substantial doubt about the Company's ability to continue as
a going concern.
RADIENT PHARMACEUTICALS: Registers 63,447,862 Shares
----------------------------------------------------
Radient Pharmaceuticals Corporation filed with the Securities and
Exchange Commission a Form S-1 Registration Statement under the
Securities Act of 1933 to register in the aggregate 63,447,862
shares of these securities:
-- 59,888,696 shares of Common Stock underlying Convertible
Notes and interest accrued thereon and warrants;
-- 3,350,000 shares of Common Stock; and
-- 209,166 shares of Common Stock underlying Placement Agent
Warrants
The registered securities include (i) 250,000 shares the Company
issued to St. George Investments, LLC, pursuant to the Waiver of
Trigger Event the Company entered into with them on October 23,
2009, and (ii) 3,100,000 shares issued to consultants for services
they have provided to the Company.
The 209,166 shares of Common Stock represent shares underlying the
placement agent warrants the Company issued to the placement
agents of the Company's 10% Convertible Notes.
The Company said it is delaying the effective date of the Form S-1
Registration Statement.
The Company also filed an accompanying prospectus relating to the
resale of up to 67,058,767 shares of its common stock, $0.001 par
value. The Company said certain stockholders may sell common
stock from time to time in the principal market on which the stock
is traded at the prevailing market price, at prices related to
such prevailing market price, in negotiated transactions or a
combination of such methods of sale. The Company will not receive
any proceeds from the sales by the selling stockholders.
A full-text copy of the Form S-1 is available at no charge
at http://ResearchArchives.com/t/s?61d9
About Radient Pharmaceuticals
Headquartered in Tustin, California, Radient Pharmaceuticals
Corporation is an integrated pharmaceutical company devoted to the
research, development, manufacturing, and marketing of diagnostic,
and premium skin care products.
As of December 31, 2009, the Company had total assets of
$26,319,086 against total liabilities of $5,626,326, resulting in
a stockholders' equity of $20,692,760. The December 31, 2009,
balance sheet shows strained liquidity: the Company had total
current assets of $507,845 against total current liabilities of
$4,728,677.
In its April 15, 2010 report, KMJ | Corbin & Company LLP in Costa
Mesa, California, noted that the Company has incurred a
significant operating loss in 2009 and negative cash flows from
operations in 2009 and has an a working capital deficit of
approximately $4.2 million at December 31, 2009. These items
raise substantial doubt about the Company's ability to continue as
a going concern.
RAUL LOPEZ: Case Summary & 5 Largest Unsecured Creditors
--------------------------------------------------------
Debtor: Raul Lopez Lopez
15044 Florentine Street
Sylmar, CA 91342
Bankruptcy Case No.: 10-15296
Chapter 11 Petition Date: May 5, 2010
Court: U.S. Bankruptcy Court
Central District of California (San Fernando Valley)
Judge: Geraldine Mund
Debtor's Counsel: Anthony Egbase, Esq.
Law Offices of Anthony O. Egbase & Assoc
350 S Figueroa Street Suite 189
Los Angeles, CA 90071
Tel: (213) 620-7070
E-mail: info@anthonyegbaselaw.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $500,001 to $1,000,000
A copy of the Debtor's list of 5 largest unsecured creditors filed
together with the petition is available for free at
http://bankrupt.com/misc/cacb10-15296.pdf
The petition was signed by the Debtor.
RAYNOL, LLC: Voluntary Chapter 11 Case Summary
----------------------------------------------
Debtor: Raynol, LLC
5016 North Parkway Calabassas, Suite 200
Calabassas, CA 91302
Tel: (818) 223-9999
Bankruptcy Case No.: 10-15349
Chapter 11 Petition Date: May 5, 2010
Court: U.S. Bankruptcy Court
Central District Of California (San Fernando Valley)
Debtor's Counsel: Michael H Weiss, Esq.
Weiss & Spees
1925 Century Park E Suite 650
Los Angeles, CA 90064
Tel: (424) 245-3100
Fax: (424) 245-3101
E-mail: mw@weissandspees.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 Marc S. Shenkman, manager/member.
READER'S DIGEST: Judge Approves $37 Mil. Professional Fees
----------------------------------------------------------
Bankruptcy Law360 reports that a federal judge has approved about
$37 million in fees and expenses for the professionals who worked
on the Reader's Digest Association Inc. bankruptcy, including
$8.8 million for debtor's counsel Kirkland & Ellis LLP and
$10.9 million for restructuring adviser AlixPartners LLP.
About Reader's Digest
RDA is a global multi-brand media and marketing company that
educates, entertains and connects audiences around the world. The
company builds multi-platform communities based on branded
content. With offices in 44 countries, it markets books,
magazines, and music, video and educational products reaching a
customer base of 130 million in 78 countries. It publishes 94
magazines, including 50 editions of Reader's Digest, the world's
largest-circulation magazine, operates 65 branded Web sites
generating 22 million unique visitors per month, and sells
40 million books, music and video products across the world each
year. Its global headquarters are in Pleasantville, N.Y.
Reader's Digest said that as of June 30, 2009, it had total assets
of US$2.2 billion against total debts of US$3.4 billion.
Reader's Digest, together with its 47 affiliates, filed for
Chapter 11 on August 24, 2010 (Bankr. S.D.N.Y. Case No. 09-23529).
Kirkland & Ellis LLP served as general restructuring counsel.
Mallet-Prevost, Colt & Mosle LLP was tapped as conflicts counsel.
Ernst & Young LLP served as auditor. Miller Buckfire & Co, LLC,
served as financial advisor. AlixPartners, LLC, served as
restructuring consultant. Kurtzman Carson Consultants served as
notice and claims agent.
The Official Committee of Unsecured Creditors tapped BDO Seidman,
LLP, as financial advisor, Trenwith Securities, LLP, as investment
banker and Otterbourg, Steindler, Houston & Rosen, P.C., as
counsel.
The U.S. Bankruptcy Court confirmed RDA's Chapter 11 plan on
January 15, 2010. On February 1, RDA elected to temporarily delay
emergence from Chapter 11 to allow additional time for the UK
pension issue to be addressed. RDA ultimately emerged from
Chapter 11 on February 22.
REGAL ENTERTAINMENT: Files Form 10-Q for March 31 Quarter
---------------------------------------------------------
Regal Entertainment Group filed with the Securities and Exchange
Commission its Form 10-Q for the quarterly period ended April 1,
2010.
The Company previously disclosed that total revenues for the first
quarter ended April 1, 2010, were $719.8 million compared to total
revenues of $665.6 million for the first quarter ended April 2,
2009. Net income attributable to controlling interest was $16.5
million in the first quarter of 2010 compared to $21.3 million in
the first quarter of 2009.
A copy of the Form 10-Q is available for free at:
http://researcharchives.com/t/s?61dd
About Regal Entertainment
Regal Entertainment Group operates the largest and most
geographically diverse theatre circuit in the United States,
consisting of 6,778 screens in 549 theatres in 39 states and the
District of Columbia as of July 2, 2009, with over 245 million
annual attendees for the 53-week fiscal year ended January 1,
2009. REG's geographically diverse circuit includes theatres in
all of the top 32 and 44 of the top 50 United States designated
market areas.
REG operates multi-screen theatres and, as of July 2, 2009, had an
average of 12.3 screens per location, which is well above the
North American motion picture exhibition industry 2008 average of
6.7 screens per location. REG develops, acquires and operates
multi-screen theatres primarily in mid-sized metropolitan markets
and suburban growth areas of larger metropolitan markets
throughout the United States.
REG also have an investment in National CineMedia, LLC, which
primarily concentrates its efforts on in-theatre advertising and
creating complementary business lines that leverage the operating
personnel, asset and customer bases of its theatrical exhibition
partners, which includes REG, AMC Entertainment, Inc. and
Cinemark, Inc.
As of October 1, 2009, the Company had total assets $2.512 billion
against total liabilities of $2.771 billion. As of October 1,
2009, the Company had stockholders' deficit attributable to REG of
$257.9 million.
* * *
As reported by the Troubled Company Reporter on July 13, 2009,
Moody's Investors Service rated Regal Cinemas' new $300 million
10-year senior unsecured notes B1.
On July 14, 2009, the TCR said Standard & Poor's Ratings Services
revised its recovery rating on Regal Cinemas's debt to '2',
indicating S&P's expectation of substantial (70% to 90%) recovery
for secured lenders in the event of a payment default, from '3'.
In addition, S&P raised the issue-level rating on this debt to
'BB-' (one notch higher than the 'B+' corporate credit rating on
the company) from 'B+', in accordance with S&P's notching criteria
for a '2' recovery rating.
On July 15, 2009, the TCR said Fitch Ratings assigned a 'B+/RR4'
rating to Regal Cinemas' $400 million 8.625% senior unsecured
notes. The notes are expected to rank senior to Regal Cinemas'
existing 9.375% senior subordinated notes and junior to the
secured bank facility. In addition, the $400 million in notes are
structurally senior to RGC's 6.25% convertible notes.
RICHFIELD GARDEN: Voluntary Chapter 11 Case Summary
---------------------------------------------------
Debtor: Richfield Garden Apartments, LLC
5014 16th Avenue
Suite 136
Brooklyn, NY 11204
Bankruptcy Case No.: 10-13744
Chapter 11 Petition Date: May 6, 2010
Court: United States Bankruptcy Court
Eastern District of Pennsylvania (Philadelphia)
Judge: Eric L. Frank
Debtor's Counsel: Jeffrey T. Grossman, Esq.
Grossman Law Firm
1333 Race Street
Philadelphia, PA 19107
Tel: (215) 231-9936
Fax: (215) 665-1393
E-mail: jgrossman@grossmanfirm.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
The Debtor did not file a list of its largest unsecured creditors
together with its petition.
The petition was signed by Joe Weiss, managing member.
SAILBOAT PROPERTIES: Case Summary & 6 Largest Unsecured Creditors
-----------------------------------------------------------------
Debtor: Sailboat Properties, LLC
1227 King Grant Drive
Raleigh, NC 27614
Bankruptcy Case No.: 10-03718
Chapter 11 Petition Date: May 7, 2010
Court: U.S. Bankruptcy Court
Eastern District of North Carolina (Wilson)
Judge: Stephani W. Humrickhouse
Debtor's Counsel: Jason L. Hendren, Esq.
Hendren & Malone, PLLC
4600 Marriott Drive, Suite 150
Raleigh, NC 27612
Tel: (919) 573-1422
Fax: (919) 420-0475
E-mail: bwood@hendrenmalone.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
$3,900,983 while debts total $2,502,935.
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/nceb10-03718.pdf
The petition was signed by Douglas K. Baldwin, member manager.
SAINT VINCENTS: Claimant Wants Lift Stay to Collect Settlement
--------------------------------------------------------------
Yolanda Morris, as administrator of the estate of Garnett Morris,
asks the U.S. Bankruptcy Court for the Southern District of New
York to lift the automatic stay allow her to collect settlement
payment.
Ms. Morris is a plaintiff in an action titled Garnett Morris v.
Saint Vincent's Catholic Medical Centers of New York, Mary
Immaculate Hospital, and Queens Long-Island Medical Group, P.C.,
which was tried in New York State Supreme Court, Queens County.
Ms. Morris relates that immediately prior to summations, the case
was settled for $675,000, of which $625,000 was to be paid by
Saint Vincent's Catholic Medical Centers of New York. She adds
that the case was resolved on September 21, 2009, and payment was
to be made subject to a Surrogate's Court order as it involved the
wrongful death of Garnet Morris, who left behind a wife and child.
A motion was filed, in February 2010, to approve the settlement
amount and order payment of $203,948, representing counsel fees
and disbursements to Ms. Morris's counsel pending final allocation
by the Surrogate's Court.
Ms. Morris says that on April 7, 2010, a conference was held
before state court Judge Roger N. Rosengarten, where, in the
spirit of cooperation, all parties agreed to extend time for
payment of the ordered amount from Saint Vincent's to May 12,
2010.
Ms. Morris's claim arose from an alleged medical malpractice by
two hospitals owned by the Debtors in failing to recognize
impending pulmonary emboli causing his husband's death.
Ms. Morris avers that she will be prejudice by not being able to
proceed with her law suit if the application is denied. Neither
the Debtors nor other creditors will suffer any prejudice by
granting the application, since the amount of claim is segregated
and should not be part of the bankruptcy estate, she points out.
In a recent development, state court Judge Robert L. Nahman denied
Ms. Morris's application directing Saint Vincent's Medical Centers
of New York and Mary Immaculate Hospital to pay $625,000. Judge
Nahman held that the Application is in violation of the automatic
stay.
About Saint Vincents Catholic Medical Centers
St. Vincents Catholic Medical Centers returned to bankruptcy court
by filing another Chapter 11 petition April 14, 2010, 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.
Adam C. Rogoff, Esq., and Kenneth H. Eckstein, Esq., at Kramer
Levin Naftalis & Frankel LLP, represent the Debtor in its Chapter
11 effort.
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.
Saint Vincents 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.
Saint Vincent Catholic Medical Centers of New York and six of its
affiliates first filed for Chapter 11 protection on July 5, 2005
(Bankr. S.D.N.Y. Case No. 05-14945 through 05-14951).
SAINT VINCENTS: Emergency Department Closed Effective April 30
--------------------------------------------------------------
In a letter dated April 28, 2010 posted on Saint Vincent Catholic
Medical Centers's Web site, Anthony Gagliardi, MD, medical
director and chief quality officer of the Hospital, informed
community members that effective April 30, 8:00 a.m., the
Emergency Department of Saint Vincent's Hospital Manhattan has
ceased all operations. As of that date, he noted, patients will
no longer be seen in the Emergency Department, nor will they be
admitted to the hospital.
About Saint Vincents Catholic Medical Centers
St. Vincents Catholic Medical Centers returned to bankruptcy court
by filing another Chapter 11 petition April 14, 2010, 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.
Adam C. Rogoff, Esq., and Kenneth H. Eckstein, Esq., at Kramer
Levin Naftalis & Frankel LLP, represent the Debtor in its Chapter
11 effort.
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.
Saint Vincents 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.
Saint Vincent Catholic Medical Centers of New York and six of its
affiliates first filed for Chapter 11 protection on July 5, 2005
(Bankr. S.D.N.Y. Case No. 05-14945 through 05-14951).
SEDGWICK HOLDINGS: Moody's Assigns 'B2' Corporate Family Rating
---------------------------------------------------------------
Moody's Investors Service has assigned a B2 corporate family
rating to Sedgwick Holdings, Inc., a holding company for Sedgwick
Claims Management Services, Inc. The rating agency also assigned
ratings to the credit facility to be issued in connection with the
proposed acquisition of Sedgwick by Stone Point Capital LLC and
Hellman & Friedman LLC, together with management and employees for
approximately $1.1 billion. Sedgwick is currently owned by
Fidelity National Financial, UnitedHealth Group, Thomas H. Lee
Partners, L.P., and Evercore Capital Partners. The transaction is
expected to close in the second quarter of 2010, subject to
closing conditions and the receipt of regulatory approvals.
The proposed financing arrangement includes a $400 million first
lien term loan and $60 million revolving credit facility (expected
to be undrawn at closing), both rated B1, and a $200 million
second lien term loan (rated B3), all to be issued by Sedgwick
Holdings, Inc. Net proceeds will be used to repay existing debt
of about $391 million and $88 million of preferred equity, to help
fund the acquisition and to pay related fees and expenses. The
rating outlook for Sedgwick is stable.
Upon closing of the transaction, Moody's expects to affirm and
withdraw the B1 corporate family rating on the prior holding
company (Sedgwick CMS Holdings, Inc.). Moody's also expects to
withdraw the B1 ratings from Sedgwick CMS Holdings, Inc.'s old
senior secured credit facilities, as these facilities will be
repaid and terminated.
Sedgwick's ratings reflect the company's substantial financial
leverage, which is expected to increase under the new ownership
structure, leading to a low level of financial flexibility and
somewhat weak interest and fixed charge coverage. In addition,
some uncertainty exists regarding Sedgwick's long term capital
targets given the company's ownership by private equity firms who
tend to favor high levels of debt in the capital structure. An
additional challenge for the company is its fairly ambitious long
term growth plan, which may be difficult to achieve given
generally flat to declining claim frequency trends in the US.
Helping to offset these risks is Sedgwick's status as a market
leader in the claims management sector, its diverse customer base,
product line and geographic spread and its strong historic organic
revenue growth. As a service provider to insurance companies and
self-insured entities, Sedgwick also benefits from a fairly stable
earnings profile, due to the relatively high switching costs faced
by customers, a stable cost structure, and the lack of exposure to
insurance underwriting risk.
Moody's cited these factors that could lead to a rating upgrade
for Sedgwick: (i) a long term commitment to lower financial
leverage (i.e .debt-to-EBITDA below 4.5x), (ii) free cash flow-to-
debt of 6% or better, and (iii) interest coverage of 3x or better.
Conversely, these factors that could lead to a downgrade: (i)
debt-to-EBITDA ratio over 6.5x, (ii) free cash flow-to-debt of 3%
or less, or (iii) interest coverage below 1.5x.
Moody's last rating action on Sedgwick took place on January 27,
2010, when the rating agency affirmed the B1 rating on the senior
secured credit facility of Sedgwick CMS Holdings, Inc., and the B1
corporate family rating.
Sedgwick is one of the largest claims service providers in the
United States. The company processes claims for a wide range of
insurance product lines including workers' compensation, general
liability, and disability insurance. For 2009, the company
generated revenues of $703 million.
SIMMONS BEDDING: Partners with Polyurethane Foam Suppliers
----------------------------------------------------------
Simmons Bedding Company is proud to announce that all of the
polyurethane foams in the company's mattress lines have earned the
CertiPUR-US(R) certification seal, verifying that the foams are
low-VOC and free from ozone-depleting CFCs. The certified foam
products are made without PBDE fire retardants, lead, mercury,
formaldehyde, prohibited phthalates and other potentially harmful
materials. Simmons played an instrumental role in facilitating
the CertiPUR-US certification process for each of its foam
suppliers, encouraging them to achieve the certification as a way
to address growing consumer concerns about the safety of
polyurethane foams.
"Consumers today are paying very close attention to what's inside
the products they purchase -- whether it's food, toys, paint,
furniture or bedding," said Anne Kozel, brand director of Simmons'
specialty sleep division. "They are aware of previous issues with
synthetic materials and are especially concerned about foams in
mattresses because of the close contact people have with their
beds during the night. The CertiPUR-US seal helps provide peace
of mind by certifying that the polyurethane-based foams in all
Simmons mattresses meet strict health and safety requirements, so
consumers can feel confident about buying Simmons products."
In a recent consumer survey, Simmons found that almost two-thirds
of respondents were "very" or "extremely" concerned about the
health and safety of the products they buy, and that a large
number of consumers were specifically concerned about the contents
of their mattresses. To provide consumers with assurance that the
polyurethane-based foams in Simmons mattresses are nontoxic and of
the highest quality, the company has required all of its foam
suppliers to obtain CertiPUR-US certification.
"We felt it crucial to ensure all foam components utilized in a
Simmons mattress demonstrate environmental and durability
compliance as part of Simmons' quality expectations and commitment
to consumer safety," said Sheri McGuire, Simmons' director of
supplier quality. "Simmons is proud of the joint commitment our
foam suppliers have made to ensure Simmons' polyurethane foam
products meet the CertiPUR-US program requirements."
To achieve the CertiPUR-US certification seal, petitioning foams
are sent to an independent, third-party laboratory for rigorous
durability and indoor air quality emissions testing as well as a
content analysis. The examination must demonstrate that the foams
meet the environmental, health and safety standards described in
the U.S. Voluntary Physical Performance and Environmental
Certification Guidelines for Flexible Polyurethane Foam for Use in
Furniture and Bedding Items to qualify for the certification. A
team of industry leaders, scientists and environmental experts
contributed to the creation of these standards while developing
the CertiPUR-US program for the Alliance for Flexible Polyurethane
Foam, a leading foam industry trade organization. So far, 11 foam
suppliers have met the CertiPUR-US guidelines, and 12 additional
foam products are currently under review.
"Simmons' passion for safety has definitely helped promote the
CertiPUR-US seal among foam suppliers and motivated many of them
to apply for certification," said Robert Luedeka, executive
director of the Alliance for Flexible Polyurethane Foam. "As the
first major mattress manufacturer to use all CertiPUR-US-certified
polyurethane foams in their products, Simmons has really set an
example for other bedding and furniture producers. Ideally, all
foam suppliers will soon meet CertiPUR-US standards."
About Simmons Bedding
Atlanta, Georgia-based Simmons Bedding Company -- aka Simmons
Company a Corporation of Delaware; Simmons Company, N.A.; Simmons;
Simmons Company (U.S.A.); Simmons Co.; Simmons Company, a Delaware
Corporation; Simmons Bedding; Simmons USA Company; THL Bedding
Company; Simmons U.S.A. Company; Simmons U.S.A. Corporation;
Simmons Bedding Company -- is a holding company with no operating
assets. Through its wholly-owned subsidiary, Bedding Holdco
Incorporated, which is also a holding company, Simmons Company
owns the common stock of Simmons Bedding Company. All of Simmons
Company's business operations are conducted by Simmons Bedding
Company and its direct and indirect subsidiaries. Simmons
Company, together with its subsidiaries, is one of the largest
bedding manufacturers in North America.
The Company filed for Chapter 11 bankruptcy protection on
November 16, 2009 (Bankr. D. Del. Case No. 09-14037). The
Company's affiliates also filed separate Chapter 11 petitions.
Simmons Bedding listed $895,970,000 in assets and $1,263,522,000
in liabilities as of June 27, 2009.
Weil, Gotshal & Manges LLP is acting as legal counsel and Miller
Buckfire & Co., LLC is acting as financial advisor to Simmons.
Sullivan & Cromwell LLP is acting as legal counsel and Goldman,
Sachs & Co., is acting as financial advisor to Ares and Teachers'.
SIX FLAGS: Al Weber to Serve as President and Interim CEO
---------------------------------------------------------
Six Flags Entertainment Corporation disclosed that Alexander "Al"
Weber, Jr., former President and CEO of Paramount Parks, Inc., has
been named President and Interim Chief Executive Officer,
effective immediately. The Company is retaining a leading
executive search firm and will consider both internal and external
candidates to serve as Chief Executive Officer on a permanent
basis.
"I am excited to have this opportunity to serve as President and
Interim Chief Executive Officer of Six Flags," said Weber. "The
Company has made great strides to improve park operations and has
significantly reduced its outstanding debt, paving the way for Six
Flags to continue investing in its operations to provide an even
more enjoyable experience for the whole family."
Weber continued, "I thank Six Flags' dedicated employees for their
commitment to the Company and to providing guests with friendly,
safe and clean services at all of our parks. Six Flags has been
entertaining families and has been an important part of the
communities in which it operates for nearly fifty years. Today,
the Company is stronger than ever, with a solid financial position
and a positive outlook for the upcoming summer season. The
Company is poised for continued growth and success and I look
forward to working with the Board of Directors, management team
and all of the Company's employees to capitalize on the
opportunities ahead."
Six Flags' recent accomplishments include:
-- Outstanding customer satisfaction: Six Flags has achieved all-
time high guest approval ratings based on product offering,
atmosphere, value, employee service and safety.
-- World-class facilities: The Company has upgraded and invested
in all of the parks and added numerous family friendly rides
and attractions, and today the parks are in great condition.
-- Focus on family: Six Flags has become more family friendly
through the creation of a more diversified family entertainment
experience, with activities that appeal to all age groups.
-- Commitment to the community: The Company has implemented a
company-wide green initiative across its theme park and water
park locations, and through its "Six Flags Friends" program,
provides community service, supports non-profit organizations
and grants educational scholarships.
-- Financial strength: Six Flags' recently completed balance sheet
restructuring to reduce the Company's outstanding debt by 60%,
making Six Flags one of the least levered companies in the
theme park industry and allowing for continued investment in
parks and attractions.
The Company also today announced Mark Shapiro, the Company's
former President and Chief Executive Officer and a member of the
Board of Directors, is no longer with the Company.
About Al Weber
Al Weber has 40 years of experience in the regional theme park
business. He has successfully implemented new business
strategies, organizational improvements and growth initiatives.
Previously, Weber served as President and Chief Executive Officer
of Palace Entertainment, LLC, the largest water park and family
entertainment center company in the United States. Prior to that,
Weber served as President and Chief Executive Officer of Paramount
Parks, Inc from 2002 to 2006. Weber received a Bachelor's Degree
in Liberal Arts and Master's Degree in Business Administration
from Xavier University, and a Doctorate in Organization and
Management from Capella University.
About Six Flags
Headquartered in New York City, Six Flags, Inc., is the world's
largest regional theme park company with 20 parks across the
United States, Mexico and Canada.
Six Flags filed for Chapter 11 protection on June 13, 2009 (Bankr.
D. Del. Lead Case No. 09-12019). Paul E. Harner, Esq., Steven T.
Catlett, Esq., and Christian M. Auty, Esq., at Paul, Hastings,
Janofsky & Walker LLP in Chicago, Illinois, act as the Debtors'
lead counsel. Daniel J. DeFranceschi, Esq., and L. Katherine
Good, Esq., at Richards, Layton & Finger, P.A., in Wilmington,
Delaware, act as local counsel. Cadwalader Wickersham & Taft LLP,
serves as special counsel. Houlihan Lokey Howard & Zukin Capital
Inc., serves as financial advisors, while KPMG LLC acts as
accountants. Kurtzman Carson Consultants LLC serves as claims and
notice agent. As of March 31, 2009, Six Flags had $2,907,335,000
in total assets and $3,431,647,000 in total liabilities.
Bankruptcy Creditors' Service, Inc., publishes Six Flags
Bankruptcy News. The newsletter provides gavel-to-gavel coverage
of the Chapter 11 proceedings undertaken by Six Flags Inc. and its
various affiliates. (http://bankrupt.com/newsstand/or 215/945-
7000).
SMITHFIELD FOODS: Moody's Keeps B2 Corporate Family Rating
----------------------------------------------------------
Following a very difficult cycle in hog production, reduced herd
size and rising exports are contributing to higher EBITDA for
Smithfield Foods, Inc., although offset somewhat by hedging
activities and rising input costs. Moreover, there is perennial
tension between the hog production segment and fresh and packaged
meats as increased pricing in hog production negatively impacts
the fresh and packaged pork segments' profitability (and vice
versa). Weak demand from the food service sector is also likely
to temper growth. Notwithstanding these modest headwinds,
Smithfield's leverage (as measured by total debt-to-EBITDA) should
improve dramatically from its peak last year which was the result
of substantial losses in the hog production segment. Recognizing
the cyclical aspect of the protein commodity sector, Moody's did
not lower Smithfield's ratings to address what Moody's believed
was its cyclical low in 2009. Moody's notes that hog production
is expected to be profitable for the balance of fiscal 2011. As a
consequence, the B2 corporate family rating and stable outlook
remain appropriate and considers the company's more recent
performance.
Smithfield Foods, Inc., headquartered in Smithfield, Virginia, is
the world's largest pork producer and processor. Sales for the
twelve months ended January 2010 were approximately $12 billion.
Moody's most recent rating action for Smithfield on August 7,
2009, affirmed the company's long-term ratings, including its B2
corporate family rating; upgraded its speculative grade liquidity
rating to SGL-3 from SGL-4, and maintained a stable outlook.
SPANSION INC: Reaches $8 Million Settlement Deal in WARN Suit
-------------------------------------------------------------
Bankruptcy Law360 reports that Spansion Inc. has reached a
settlement of up to $8.57 million in a suit accusing the Debtor of
violating the Worker Adjustment and Retraining Notification Act by
laying off workers without giving proper notice. The settlement
consists of about $6.8 million in allowed priority claims and
$1.76 million in allowed unsecured claims, according to the motion
to approve the deal cited by Law360.
About Spansion Inc.
Spansion Inc. (NASDAQ: SPSN) -- http://www.spansion.com/-- is a
Flash memory solutions provider, dedicated to enabling, storing
and protecting digital content in wireless, automotive,
networking and consumer electronics applications. Spansion,
previously a joint venture of AMD and Fujitsu, is the largest
company in the world dedicated exclusively to designing,
developing, manufacturing, marketing, selling and licensing Flash
memory solutions.
Spansion Inc. and its affiliates filed voluntary petitions for
Chapter 11 on March 1, 2009 (Bankr. D. Del. Lead Case No. 09-
10690). On February 9, 2009, Spansion's Japanese subsidiary,
Spansion Japan Ltd., voluntarily entered into a proceeding under
the Corporate Reorganization Law (Kaisha Kosei Ho) of Japan to
obtain protection from its creditors as part of the company's
restructuring efforts. None of Spansion's subsidiaries in
countries other than the United States and Japan are included in
the U.S. or Japan filings. Michael S. Lurey, Esq., Gregory O.
Lunt, Esq., and Kimberly A. Posin, Esq., at Latham & Watkins LLP,
have been tapped as bankruptcy counsel. Michael R. Lastowski,
Esq., at Duane Morris LLP, is the Delaware counsel. Epiq
Bankruptcy Solutions LLC, is the claims agent. As of Sept. 30,
2008, Spansion had total assets of US$3,840,000,000, and total
debts of US$2,398,000,000.
Spansion Japan Ltd. filed a Chapter 15 petition on April 30, 2009
(Bankr. D. Del. Case No. 09-11480). The Chapter 15 Petitioner's
counsel is Gregory Alan Taylor, Esq., at Ashby & Geddes. It said
that Spansion Japan had US$10 million to US$50 million in assets
and US$50 million to US$100 million in debts.
Judge Kevin J. Carey confirmed Spansion's Plan of Reorganization
on April 16, 2010. A group of holders of Convertible notes and
equity in Spansion presented an alternative plan, which would pay
senior noteholders in full and has funding commitment of in excess
of $425 million, but the plan was rejected.
SPANSION INC: S&P Raises Corporate to 'B' Following Emergence
-------------------------------------------------------------
Standard & Poor's Ratings Services said it raised its corporate
credit rating on Sunnyvale, Calif.-based memory supplier Spansion
Inc. to 'B' from 'D', reflecting the company's emergence from
Chapter 11 bankruptcy protection.
At the same time, S&P assigned a 'BB-' issue-level rating to
Spansion's $450 million senior secured term loan. S&P also
assigned a recovery rating of '1' to the term loan, indicating
S&P's expectation of very high (90%-100%) recovery for lenders in
the event of a payment default. Spansion had filed for bankruptcy
protection on March 1, 2009. The company has used proceeds of the
term loan, in addition to a rights offering, to repurchase its
senior secured floating-rate notes in full. Ratings are subject
to S&P's receipt and satisfactory review of final documentation.
On May 10, 2010, the U.S. Bankruptcy Court for the District of
Delaware issued its order confirming Spansion's emergence from
bankruptcy protection. Under the exit capital structure outlined
in the plan of reorganization, the company's debt capital consists
of a five-year $450 million senior secured term loan, and a
$65 million asset-based revolving credit agreement.
"The 'B' corporate credit rating and issue rating reflect
aggressive competition, weak market conditions, and its evolving
business model," said Standard & Poor's credit analyst Bruce
Hyman. Its good technology base, a low-capital-intensity
manufacturing model, moderate leverage, moderate liquidity, and
expected positive free cash flows offset those factors. Spansion
is a major supplier of NOR flash memory chips, which are used to
store program instructions in a wide range of electronic devices.
STANDARD PACIFIC: Gets Proceeds from $300 Million Notes Offering
----------------------------------------------------------------
Standard Pacific Corp. received the proceeds from the Company's
public offering of $300,000,000 of its 8-3/8% Senior Notes due
2018. The Company is using a portion of these proceeds to redeem
all of its outstanding 6-1/2% Senior Notes due 2010, 6-7/8% Senior
Notes due 2011 and 7-3/4% Senior Notes due 2013.
The Bank of New York Mellon Trust Company, N.A., as trustee under
the indenture for each of the notes, mailed a notice of redemption
to all registered holders of the 2010 Notes and the 2011 Notes on
May 3, 2010, and a notice of redemption to all registered holders
of the 2013 Notes on May 4, 2010. The redemption date for the
2010 Notes and 2011 Notes will be June 2, 2010 and the redemption
date for the 2013 Notes will be June 3, 2010. The redemption
price for each series of notes will be determined in accordance
with the indenture governing such notes.
As of May 4, 2010, there was $15,049,000 aggregate principal
amount of the 2010 Notes outstanding, $48,619,000 aggregate
principal amount of the 2011 Notes outstanding, and after purchase
by the Company of the 2013 Notes tendered as of May 3, 2010 in
connection with the Company's previously announced tender offer
for the 2013 Notes, the aggregate principal amount of 2013 Notes
outstanding was $32,074,000.
The Company estimates that, based on current treasury rates, the
total premium to be paid by the Company in connection with the
redemption of the 2010 Notes, the 2011 Notes and the 2013 Notes
will be approximately $3.3 million. The notice of redemption of
the 2013 Notes does not change or amend the tender offer for the
2013 Notes, which is being made pursuant to the Offer to Purchase,
dated April 20, 2010, and is scheduled to expire at 5:00 p.m., New
York City time, on May 18, 2010, unless extended.
About Standard Pacific
Based in Irvine, California, Standard Pacific Corp. (NYSE: SPF) --
http://www.standardpacifichomes.com/-- one of the nation's
largest homebuilders, has built more than 108,000 homes during its
43-year history. The Company constructs homes within a wide range
of price and size targeting a broad range of homebuyers. Standard
Pacific operates in many of the largest housing markets in the
country with operations in major metropolitan areas in California,
Florida, Arizona, the Carolinas, Texas, Colorado and Nevada. The
Company provides mortgage financing and title services to its
homebuyers through its subsidiaries and joint ventures, Standard
Pacific Mortgage, Inc. and SPH Title.
As of December 31, 2009, the Company had $1.861 billion in total
assets against $1.421 billion in total liabilities.
* * *
Standard & Poor's Ratings Services assigned its 'B-' rating to the
$300 million 8.375% senior notes due May 15, 2018, issued by
Standard Pacific Corp. The '5' recovery rating reflects S&P's
expectation for a modest (10%-30%) recovery in the event of
default. The company plans to use proceeds from the offering to
fund a tender offer for its 7.75% senior notes due 2013
($121.2 million outstanding balance), to call its 2010 and 2011
senior notes ($63.7 million combined balance), and repay other
debt.
Standard & Poor's Ratings Services raised its corporate credit
rating on Irvine, Calif.-based homebuilder Standard Pacific Corp.
to 'B' from 'CCC+'. The upgrade acknowledges improvement in the
company's cost structure, as well as previous success in
addressing near-term maturity risk. At the same time, S&P raised
its ratings on $872 million of senior and subordinated notes and
revised its outlook on the company to stable from positive.
STERLING MINING: Silver Opportunity Concludes Assets Acquisition
----------------------------------------------------------------
Silver Opportunity Partners LLC has concluded its acquisition of
all of the assets of Sterling Mining Company, including the right
to own the historic Sunshine Mine. Approval for this transaction
was granted by the U.S. Bankruptcy Court in Coeur d'Alene, Idaho
on May 7, 2010.
"We are pleased to become the owner of the historic Sunshine Mine.
We are respectful of the Mine's rich history and tradition. We
look forward to working with all its current employees and in
partnering with the local community," said Mark Wallace, head of
the transition team for Silver Opportunity Partners. "We pledge
to hold, explore and develop the mine in a sustainable and
pragmatic manner, after comprehensive technical and financial
analysis."
The privately held Electrum Group of Companies is involved in
mining exploration and development around the world with its
principal focus on precious metals. Other members of the Electrum
Group include Electrum Ltd., which holds one of the world's
largest and most diversified exploration portfolios comprising
over 100 projects located in nearly 20 countries in the Americas,
Africa, Asia and Eastern Europe; Electrum Strategic Holdings LLC,
which owns a strategic stake in Gabriel Resources Ltd., the owner
of 80.5% of the Rosia Montana gold project in Romania; Electrum
Strategic Resources LLC, which owns a substantial interest in
NovaGold Resources Inc., the owner of a 50% interest in the 30
million ounce Donlin Creek deposit in Southwest Alaska; and
Electrum USA Ltd., headquartered in Denver, Colorado, which
manages the Electrum Group's exploration and development
activities.
The Electrum Group's team of professionals has expertise and
experience in every aspect of mining, and includes geologists,
operators, legal and business transactional experts, back office
and administrative support, risk management experts and regulatory
agency liaison officers.
About Sterling Mining
Based in Coeur d'Alene, Idaho, Sterling Mining Company (OTCBB:SRLM
and FSE:SMX) -- http://www.SterlingMining.com/-- is a mineral
resource development and exploration company. Sterling is engaged
in the business of acquiring, exploring, developing and mining
mineral properties primarily those containing silver and
associated base and precious metals. Sterling operates the
Sunshine Silver Mine in Idaho and has exploration projects in
Idaho, U.S.A. Sterling was incorporated under the laws of the
State of Idaho on February 3, 1903 and its common shares are
currently listed on the OTCBB: SRLMQ and Frankfurt Stock Exchange:
SMX.
Sterling is currently a debtor-in-possession in Chapter 11
Bankruptcy in the District of Idaho, U.S.A. Sterling Mining filed
for bankruptcy protection on March 3, 2009 (Bankr. D. Idaho Case
No. 09-20178). Bruce A. Anderson, Esq., at Elsaesser Jarzabek
Anderson Marks Elliott & McHugh, Chartered represents the Debtor
as counsel.
As of September 30, 2008, Sterling Mining had $31.9 million in
total assets, and $13.2 million in total current liabilities and
$1.6 million in total long-term liabilities. In its schedules,
the Debtor listed total assets of $11,706,761 and total debts of
$14,159,010.
STEVEN NIKOLICH: Voluntary Chapter 11 Case Summary
--------------------------------------------------
Joint Debtors: Steven J. Nikolich
Marcia A. Nikolich
3017 200th Avenue E
Lake Tapps, WA 98391
Tel: (253) 370-5036
Bankruptcy Case No.: 10-43661
Chapter 11 Petition Date: May 6, 2010
Court: U.S. Bankruptcy Court
Western District of Washington (Tacoma)
Judge: Paul B Snyder
Debtor's Counsel: Susan Chang, Esq.
Tax Attorneys Inc
800 Bellevue Way NE 4th Floor
Bellevue, WA 98004
Tel: (206) 607-6805
E-mail: susanchang@tax-attorneys.info
Estimated Assets: $100,000,001 to $500,000,000
Estimated Debts: $100,000,001 to $500,000,000
The petition was signed by the Joint Debtors.
The Joint Debtors did not file a list of creditors together with
its petition.
SUD PROPERTIES: Case Summary & 8 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: SUD Properties, Inc.
108 B South Kerr Avenue
Wilmington, NC 28403
Bankruptcy Case No.: 10-03622
Chapter 11 Petition Date: May 5, 2010
Court: United States Bankruptcy Court
Eastern District of North Carolina (Wilson)
Judge: Randy D. Doub
Debtor's Counsel: John G. Rhyne, Esq.
Hinson & Rhyne, P.A.
P.O. Box 7479
Wilson, NC 27895-7479
Tel: (252) 291-1746
E-mail: annhinson@nc.rr.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 8 largest unsecured creditors filed
together with the petition is available for free at
http://bankrupt.com/misc/nceb10-03622.pdf
The petition was signed by Vernon D. Danford, president.
SUMNER REGIONAL: Court Extends Filing of Schedules Until June 3
---------------------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of Tennessee
granted Sumner Regional Health Systems, Inc., et al., and
extension of their deadline for filing of statements of financial
affairs and their schedules of assets and liabilities, current
income and expenditures, and executory contracts and unexpired
leases through June 3, 2010, or approximately 20 days.
The Debtors say that they were unable to devote the resources
necessary to complete the schedules due to the fact that their
management and other personnel spent a significant amount of time
preparing for the Chapter 11 filing, pursuing a sale of
substantially all of the Debtors' assets and negotiating
agreements in connection therewith and attending to their usual
demanding daily duties. To complete the schedules, the Debtors
will be required to, among other things, compile executory
contracts and review their records to determine outstanding
liabilities to each individual creditor as of the Petition Date.
Additionally, the Debtors will be required to identify all
potential claimants to whom a bar date notice must be sent, as
well as identify all payments that were made to creditors within
the 90 day period prior to filing.
Gallatin, Tennessee-based Sumner Regional Health Systems, Inc. --
dba Sumner Regional Medical Center, SRHS Professional Services,
Sumner Station, Sumner In-Patient Rehabilitation Unit,
Westmoreland Pharmacy, Imaging for Women at Sumner Station,
Diagnostic Center at Sumner Station, Outpatient Rehab Services at
Sumner Station, The Fitness Center at Sumner Station, Sumner
Crossroads, and Executive House Apartments -- filed for Chapter 11
bankruptcy protection on April 30, 2010 (Bankr. M.D. Tenn. Case
No. 10-04766). Robert A. Guy, Esq., at Frost Brown Todd LLC,
assists the Company in its restructuring effort. The Company
estimated its assets and debts at $100,000,001 to $500,000,000.
SUMNER REGIONAL: Files List of 20 Largest Unsecured Creditors
-------------------------------------------------------------
Sumner Regional Health Systems, Inc., has filed with the U.S.
Bankruptcy Court for the Middle District of Tennessee a list of
its 20 largest unsecured creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Citadel Properties V, L.L.C.
233 East Wacker Drive, #3710
Chicago, IL 60601 Real Property $2,327,954
William T. Sugg Former CEO
1100 Wright Lane Separation
Gallatin, TN 37066 Agreement $698,616
Center for Comprehensive
Service
306 West Mill Street Management
Carbondale, IL 62901 Company $434,766
Janice L. Hallmark Former Chief
People Officer
Separation
Agreement $153,840
McKesson Technologies Inc. Trade $90,038
Aetna Insurance
Refund $74,845
Medical Reimbursements Trade $36,854
Cardinal Health 110, Inc. Trade $31,559
AT&T Utility
Provider $29,148
Affiliated Creditors, Inc. Collection
Agency $21,052
Medical Information Trade $19,576
Technology, Inc.
McKesson Health Solutions Trade $19,214
Premier, Inc. Trade $18,194
MedAssist Trade $16,017
Price CPAs, PLLC Professional
Services $15,084
Helathstream, Inc. - Learning
Srvs Trade $14,553
Mid-South Lithotripsy Assoc.,
L.P. Trade $12,600
U.S. Foodservice, Inc. Trade $11,706
Gallatin Public Utilities Utility
Provider $11,454
Tennessee Hospital
Association Dues $10,800
Gallatin, Tennessee-based Sumner Regional Health Systems, Inc. --
dba Sumner Regional Medical Center, SRHS Professional Services,
Sumner Station, Sumner In-Patient Rehabilitation Unit,
Westmoreland Pharmacy, Imaging for Women at Sumner Station,
Diagnostic Center at Sumner Station, Outpatient Rehab Services at
Sumner Station, The Fitness Center at Sumner Station, Sumner
Crossroads, and Executive House Apartments -- filed for Chapter 11
bankruptcy protection on April 30, 2010 (Bankr. M.D. Tenn. Case
No. 10-04766). Robert A. Guy, Esq., at Frost Brown Todd LLC,
assists the Company in its restructuring effort. The Company
estimated its assets and debts at $100,000,001 to $500,000,000.
SUMNER REGIONAL: Taps Proskauer Rose as Bankruptcy Counsel
----------------------------------------------------------
Sumner Regional Health Systems, Inc., et al., have asked for
authorization from the U.S. Bankruptcy Court for the Middle
District of Tennessee to employ Proskauer Rose LLP as bankruptcy
counsel, nunc pro tunc to the Petition Date.
Proskauer Rose will, among other things:
a. represent the Debtors in proceedings and hearings in the
U.S. District and Bankruptcy Courts for the Middle
District of Tennessee;
b. prepare motions, applications, orders and other legal
papers;
c. provide assistance, advice and representation concerning
the confirmation of any proposed plan(s) and solicitation
of any acceptances or responding to rejections of such
plan(s); and
d. provide assistance, advice and representation concerning
any investigation of the assets, liabilities and financial
condition of the Debtors that may be required under local,
state or federal law.
Proskauer Rose will be paid based on the hourly rates of its
personnel:
Partners $525-$995
Senior Counsel $395-$810
Associates $195-$675
Paraprofessionals $140-$275
Jeff J. Marwil, a member at Proskauer Rose, assures the Court that
Taft is "disinterested" as that term is defined in Section 101(14)
of the Bankruptcy Code.
Gallatin, Tennessee-based Sumner Regional Health Systems, Inc. --
dba Sumner Regional Medical Center, SRHS Professional Services,
Sumner Station, Sumner In-Patient Rehabilitation Unit,
Westmoreland Pharmacy, Imaging for Women at Sumner Station,
Diagnostic Center at Sumner Station, Outpatient Rehab Services at
Sumner Station, The Fitness Center at Sumner Station, Sumner
Crossroads, and Executive House Apartments -- filed for Chapter 11
bankruptcy protection on April 30, 2010 (Bankr. M.D. Tenn. Case
No. 10-04766). The Company estimated its assets and debts at
$100,000,001 to $500,000,000. Certain affiliates also filed
Chapter 11 petitions.
SUMNER REGIONAL: Wants to Hire Epiq Bankruptcy as Claims Agent
--------------------------------------------------------------
Sumner Regional Health Systems, Inc. and its units ask for
authorization from the U.S. Bankruptcy Court for the Middle
District of Tennessee to employ Epiq Bankruptcy Solutions, LLC, as
claims, noticing and balloting agent.
Epiq will, among other things:
(a) prepare and serve required notices in these Chapter 11
cases;
(b) within five business days after the service of a
particular notice, filing with the Clerk's Office a
certificate or affidavit of service that includes
(i) a copy of the notice served, (ii) an alphabetical
list of persons on whom the notice was served, along with
corresponding addresses and (iii) the date and manner of
service;
(c) maintain copies of all proofs of claim and proofs of
interest filed in the case; and
(d) maintain official claims registers in this case by
docketing all proofs of claim and proofs of interest in a
claims database that includes information for each claim
or interest asserted.
Epiq will be compensated based on its services agreement with the
Debtors. A copy of the agreement is available for free at:
http://bankrupt.com/misc/SUMNER_REGIONAL_epiqservicespact.pdf
Dan McElhinney, the Executive Director of Epiq, assures the Court
that the firm is "disinterested" as that term is defined in
Section 101(14) of the Bankruptcy Code.
Gallatin, Tennessee-based Sumner Regional Health Systems, Inc. --
dba Sumner Regional Medical Center, SRHS Professional Services,
Sumner Station, Sumner In-Patient Rehabilitation Unit,
Westmoreland Pharmacy, Imaging for Women at Sumner Station,
Diagnostic Center at Sumner Station, Outpatient Rehab Services at
Sumner Station, The Fitness Center at Sumner Station, Sumner
Crossroads, and Executive House Apartments -- filed for Chapter 11
bankruptcy protection on April 30, 2010 (Bankr. M.D. Tenn. Case
No. 10-04766). Robert A. Guy, Esq., at Frost Brown Todd LLC,
assists the Company in its restructuring effort. The Company
estimated its assets and debts at $100,000,001 to $500,000,000.
Certain affiliates also filed Chapter 11 petitions.
SUNNYVALE LOT: Voluntary Chapter 11 Case Summary
------------------------------------------------
Debtor: Sunnyvale Lot, L.L.C.
7450 East Pinnacle Peak Road, Suite 250
Scottsdale, AZ 85255
Bankruptcy Case No.: 10-13725
Chapter 11 Petition Date: May 5, 2010
Court: U.S. Bankruptcy Court
District of Arizona (Phoenix)
Judge: Eileen W. Hollowell
Debtor's Counsel: Jonathan P. Ibsen, Esq.
Jaburg & Wilk, PC
3200 N. Central Avenue, #2000
Phoenix, AZ 85012
Tel: (602) 248-1054
Fax: (602) 248-1085
E-mail: jpi@jaburgwilk.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. Lee Mashburn, manager.
SYNCORA HOLDINGS: Units Files Quarterly Statements
--------------------------------------------------
Syncora Holdings Ltd. disclosed that Syncora Guarantee Inc.
("SGI") and Syncora Capital Assurance Inc. have filed their
respective Quarterly Statements for the period ended March 31,
2010 with the New York Insurance Department. Copies can be found
on the Company's website at http://www.syncora.com./
The Company notes continued concerns and developments with respect
to SGI's policyholders' surplus and liquidity, which are discussed
in the notes to financial statements included within SGI's
Quarterly Statement.
About Syncora Guarantee Inc.
Syncora Guarantee Inc. -- http://www.syncora.com/-- is a wholly
owned subsidiary of Syncora Holdings Ltd. Syncora Holdings Ltd.
is a Bermuda-domiciled holding company.
In April 2009, Standard & Poor's Ratings Services revised its
financial strength and financial enhancement ratings on Syncora
Guarantee Inc. to 'R' from 'CC'. Standard & Poor's also revised
its counterparty credit rating on Syncora to 'D' from 'CC'. An
insurer rated 'R' is under regulatory supervision because of its
financial condition. The 'CC' counterparty credit, financial
strength, and financial enhancement ratings on Syncora Guarantee
U.K. Ltd. are unchanged because at this time, that company is not
subject to any regulatory orders that mandate the suspension of
claims payments.
TERESSA HUGHES: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------------
Joint Debtors: Teressa Marie Hughes
aka Teri Hughes
Thomas Patrick Hughes, Jr.
3467 Russell Road
Green Cove Springs, FL 32043
Bankruptcy Case No.: 10-03924
Chapter 11 Petition Date: May 6, 2010
Court: U.S. Bankruptcy Court
Middle District of Florida (Jacksonville)
Debtor's Counsel: Jason A Burgess, Esq.
Crumley, Wolfe & Burgess, P.A.
2254 Riverside Avenue
Jacksonville, FL 32204
Tel: (904) 374-0111
Fax: (904) 374-0113
E-mail: jason@cwbfl.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 $1,377,802 while debts total $1,728,890.
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/flmb10-03924.pdf
The petition was signed by the Joint Debtors.
TERRA PROPERTIES: Case Summary & 6 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: Terra Properties RPM, LLC
10115 East Bell Road #107, PMB 119
Scottsdale, AZ 85260
Bankruptcy Case No.: 10-13664
Chapter 11 Petition Date: May 5, 2010
Court: U.S. Bankruptcy Court
District of Arizona (Phoenix)
Judge: Redfield T. Baum Sr.
Debtor's Counsel: Allan D. Newdelman, Esq.
Allan D. Newdelman PC
80 E. Columbus Avenue
Phoenix, AZ 85012
Tel: (602) 264-4550
Fax: (602) 277-0144
E-mail: anewdelman@qwestoffice.net
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
According to the schedules, the Company says that assets total
$1,085,495 while debts total $2,215,994.
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/azb10-13664.pdf
The petition was signed by Pamela L. Rzendzian, manager.
THEFLYONTHEWALL.COM: Judge Won't to Lift Injunction Pending Appeal
------------------------------------------------------------------
Reuters reports that U.S. District Judge Denise Cote in Manhattan
on Friday rejected a request by Theflyonthewall.com Inc. to lift
her ban on its quickly reporting "hot news" about analyst research
from three Wall Street banks. Judge Cote had issued an injunction
in March 2010 requiring Theflyonthewall.com to wait two or more
hours before publishing research from Bank of America Corp's
Merrill Lynch unit, Barclays Plc and Morgan Stanley.
Theflyonthewall.com argued the injunction cost it subscribers and
threatened its survival. Theflyonthewall.com asked Judge Cote to
lift the injunction while it pursues an appeal, or alternatively
to let it report research first published by any of six media
outlets: Bloomberg LP, CNBC television, Dow Jones Newswires, The
New York Times, Thomson Reuters and the Wall Street Journal.
According to Reuters, Judge Cote found that Theflyonthewall.com
did not show it was likely to win its appeal, or that it would be
irreparably harmed if the injunction stayed in place.
Theflyonthewall.com is based in Summit, New Jersey. Reuters says
Theflyonthewall.com charges $50 a month, or $480 annually, for its
services.
TAUBMAN CENTERS: Moody's Affirms 'B1' Preferred Stock Rating
------------------------------------------------------------
Moody's Investors Service announced that it has affirmed the
ratings of Taubman Centers, Inc.; concurrently, Moody's has
withdrawn these ratings for business reasons.
These ratings were withdrawn:
* Taubman Centers, Inc. -- Series G and H preferred stock at B1.
Moody's last rating action regarding Taubman Centers, Inc., was on
October 13, 2003, at which time Taubman Centers' B1 rating was
confirmed.
Taubman Centers, Inc., is a REIT that owns, operates and/or
manages 23 regional shopping centers in ten states. As of
March 31, 2010, Taubman reported $3.7 billion in gross assets.
TEMPLE-INLAND INC: Moody's Hikes 'Ba1' Outlook to Positive
----------------------------------------------------------
Moody's Investors Service affirmed Temple-Inland Inc's Ba1
corporate family rating while revising the outlook to positive
from stable.
The revision of Temple-Inland's outlook to positive primarily
recognizes the company's recent de-leveraging through absolute
debt reduction and reflects expectations of continuing strong
financial performance resulting in credit protection measures that
are strong for its rating category. During fiscal 2009, Temple-
Inland repaid almost $500 million, or roughly 40%, of its reported
debt. Consequently, the company has been able to restore most of
its credit protection metrics to levels that existed prior to the
loss of key assets following the implementation of the company's
transformation plan in 2007. This has been achieved even in the
face of challenging industry and general economic conditions,
through improved operational efficiencies and by continually
rationalizing the company's cost structure. Although the
expiration of the black liquor tax credit (which provided the
source for a part of the debt repayments) could limit Temple-
Inland's ability to further pay down debt going forward, Moody's
believes steps taken by the company position it well to
potentially improve on its current credit protection measures as
conditions in the economy, and particularly the housing market,
continue to improve through the rating horizon.
Temple-Inland's Ba1 CFR primarily reflects the company's strong
operating cash flow and key credit protection measures. The Ba1
rating also reflects the company's position as one of the most
integrated and low-cost producers of corrugated packaging enabling
it to withstand pricing volatility. The rating derives support
from management's focus on continued cost reduction, improving
return on investment and achieving profitable growth while
pursuing prudent financial management demonstrated by a commitment
to debt reduction. Temple-Inland's ratings continue to be
constrained by the effects of weak and uncertain demand for both
packaging and building products and volatile input costs.
The company has good liquidity which includes unused borrowing
capacity of $890 million on committed credit facilities totaling
$1,075 million (as of year-end 2009). This consists primarily of
a $750 million revolving credit facility that matures in July 2011
which Moody's believes will be refinanced prior to maturity on
acceptable terms and a $250 million accounts receivable
securitization program that matures October 2012. In addition,
the company has about $40 million of cash on hand, Moody's
estimated free cash flow generation of approximately
$30-$40 million and no term debt maturities during 2010. Covenant
issues are not expected over the near term.
Outlook Actions:
Issuer: Temple-Inland Inc.
-- Outlook, Changed To Positive From Stable
The last rating action relating to Temple-Inland was on 5
September 2007 when Moody's downgraded Temple-Inland's ratings to
Ba1 from Baa3 and assigned the company a Ba1 corporate family
rating.
Headquartered in Austin, Texas, Temple-Inland, is an integrated
corrugated packaging and building products company.
TENET HEALTHCARE: Posts $95 Million Net Income for March 2010
-------------------------------------------------------------
Tenet Healthcare Corporation's Form 10-Q for the quarterly period
ended March 31, 2010, revealed net income of $95.0 million net on
$2.3 billion of net operating revenues for the three months ended
March 31, 2009, compared with a net income of $183.0 million on
$2.2 billion of net operating revenues for the same period a year
ago.
The Company's balance sheet for March 31, 2010, showed
$7.8 billion in total assets and $7.0 billion in total
liabilities, for a $791.0 million total stockholder's equity.
The Company reported adjusted EBITDA of $298 million for the
quarter ended March 31, 2010, an increase of $20 million as
compared to $278 million for the first quarter of 2009.
"We achieved another quarter of solid progress in EBITDA growth,"
said Trevor Fetter, president and chief executive officer.
"Strong unit revenue growth offset soft volumes to drive revenue
growth of 3.4 percent in the first quarter. This growth, coupled
with solid cost control, produced a 7.2 percent increase in
adjusted EBITDA. In the context of the continuing weak economic
environment this was a very strong performance. On the basis of
this solid first quarter, we are pleased to confirm our outlook
for 2010 adjusted EBITDA."
The Company added that first quarter 2010 EBITDA performance was
driven by solid revenue growth and incremental cost efficiencies.
Admissions and outpatient visits declined by 2.0% and 1.8%,
respectively. A very light flu season and weather-related
disruptions in some of our markets contributed to the softening in
patient volumes. Commercial managed care admissions and
outpatient visits declined by 7.2% and 6.4%, respectively, but the
acuity of those volumes increased. The trends for both admissions
and outpatient visits improved month-by-month in the quarter.
A full-text copy of the company's Form 10-Q is available for free
at http://ResearchArchives.com/t/s?61d1
About Tenet Healthcare
Based in Dallas, Texas, Tenet Healthcare Corporation --
http://www.tenethealth.com/-- is an investor-owned health care
services company whose subsidiaries and affiliates principally
operate general hospitals and related health care facilities. All
of Tenet's operations are conducted through its subsidiaries.
At December 31, 2009, the Company had total assets of
$7.953 billion against total liabilities of $7.256 billion,
resulting in stockholders' equity of $646 million. Cash and cash
equivalents were $690 million at December 31, 2009, a decrease of
$41 million from $731 million at September 30, 2009.
* * *
Troubled Company Reporter said on March 17, 2010, Fitch Ratings
has affirmed Tenet Healthcare Corp.'s ratings: Issuer Default
Rating at 'B-'; Secured bank facility at 'BB-/RR1'; Senior secured
notes at 'BB-/RR1'.
Fitch has also upgraded Tenet's senior unsecured notes to 'B/RR3'
from 'B-/RR4'. The upgrade is due to improved recovery prospects
for note holders on the basis of a stronger post-restructuring
EBITDA estimate.
As reported by the Troubled Company Reporter on October 1, 2009,
Standard & Poor's Ratings Services assigned its 'CCC' issue-level
rating to hospital operator Tenet Healthcare's $345 million
mandatory convertible preferreds. Net proceeds were used to
repurchase $300 million worth of outstanding 9.25% senior notes
due 2015. The mandatory convertible preferred stock will
automatically convert to Tenet common stock on Oct. 1 2012.
Standard & Poor's views the mandatory convertible preferred
issuance as 100% debt for ratings purposes.
S&P's corporate credit rating on Tenet is 'B', reflecting the
company's struggles over the past several years with weak
operating performance and operating cash outflow and highly
leveraged financial position. Despite the successes to date of a
multiyear turnaround effort, these factors remain key elements of
the company's highly-leveraged financial risk profile and
vulnerable business risk profile. Tenet's extensive efforts to
effectuate a turnaround over several years has included large-
scale management and governance changes, cost control initiatives,
revamped physician recruitment and relationship strategies, and
managed care contract renegotiations to improve pricing. Tenet's
improving financial results and better patient admissions over the
past two years indicate some measure of success of its efforts.
Still, a consistent track record of positive free cash flow
generation is not likely in the near term.
The TCR said September 29, 2009, that Moody's Investors Service
changed the rating outlook of Tenet Healthcare to positive from
stable. Concurrently, Moody's affirmed Tenet's B3 Corporate
Family and Probability of Default ratings.
TI CYPRESS: Case Summary & 6 Largest Unsecured Creditors
--------------------------------------------------------
Debtor: TI Cypress Street, LLC
100 North John Young Parkway, Suite D
Kissimmee, FL 34741
Bankruptcy Case No.: 10-07795
Chapter 11 Petition Date: May 6, 2010
Court: U.S. Bankruptcy Court
Middle District of Florida (Orlando)
Debtor's Counsel: Brian Michael Mark, Esq.
Brian Michael Mark PA
104 North Church Street
Kissimmee, FL 34741
Tel: (407) 932-3933
Fax: (407) 932-3965
E-mail: bmark@marklawfirm.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
$1,200,000 while debts total $1,214,046.
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/flmb10-07795.pdf
The petition was signed by Julia S. Tattoli, President of Seven T
Realty Corp.
Debtor-affiliate that filed separate Chapter 11 petitions:
Entity Case No. Petition Date
------ -------- -------------
TI John Young 200, LLC 10-07794 05/06/10
TI West Lake, LLC 10-07792 05/06/10
TI JOHN: Case Summary & 8 Largest Unsecured Creditors
-----------------------------------------------------
Debtor: TI John Young 200, LLC
100 North John Young Parkway, Suite D
Kissimmee, FL 34741
Bankruptcy Case No.: 10-07792
Chapter 11 Petition Date: May 6, 2010
Court: U.S. Bankruptcy Court
Middle District of Florida (Orlando)
Debtor's Counsel: Brian Michael Mark, Esq.
Brian Michael Mark PA
104 North Church Street
Kissimmee, FL 34741
Tel: (407) 932-3933
Fax: (407) 932-3965
E-mail: bmark@marklawfirm.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
$1,000,000 while debts total $1,890,161.
A copy of the Company's list of 8 largest unsecured creditors
filed together with the petition is available for free at
http://bankrupt.com/misc/flmb10-07792.pdf
The petition was signed by Julia S. Tattoli, President of Seven T
Realty Corp.
Debtor-affiliates filing separate Chapter 11 petitions:
Entity Case No. Petition Date
------ -------- -------------
TI Cypress Street, LLC 10-07795 05/06/10
TI West Lake, LLC 10-07794 05/06/10
TI WEST: Case Summary & 4 Largest Unsecured Creditors
-----------------------------------------------------
Debtor: TI West Lake, LLC
100 North John Young Parkway, Suite D
Kissimmee, FL 34741
Bankruptcy Case No.: 10-07794
Chapter 11 Petition Date: May 6, 2010
Court: U.S. Bankruptcy Court
Middle District of Florida (Orlando)
Debtor's Counsel: Brian Michael Mark, Esq.
Brian Michael Mark PA
104 North Church Street
Kissimmee, FL 34741
Tel: (407) 932-3933
Fax: (407) 932-3965
E-mail: bmark@marklawfirm.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
$1,511,300 while debts total $3,290,938.
A copy of the Company's list of 4 largest unsecured creditors
filed together with the petition is available for free at
http://bankrupt.com/misc/flmb10-07794.pdf
The petition was signed by Julia S. Tattoli, President of Seven T
Realty Corp.
Debtor-affiliates filing separate Chapter 11 petitions:
Entity Case No. Petition Date
------ -------- -------------
TI Cypress Street, LLC 10-07795 05/06/10
TI John Young 200, LLC 10-07792 05/06/10
TRICO SHIPPING: Moody's Cuts Corporate Family Rating to 'Caa3'
--------------------------------------------------------------
Moody's Investors Service downgraded the ratings for Trico
Shipping AS in response to its parent, Trico Marine Services,
Inc.'s announcement that it may not be able to meet an upcoming
coupon payment. The downgrade included Shipping's Corporate
Family Rating to Caa3 from Caa1, the Probability of Default Rating
to Caa3 from Caa1, the senior secured note rating to B3 from B1,
and the Speculative Grade Liquidity Rating to SGL-4 from SGL-3.
The outlook is developing.
The downgrade of Shipping's ratings reflects the very weak
financial position of its parent, Trico and the increasing
likelihood that it may default on its debt. Given that Shipping
is the primary cash flow generator for Trico, Moody's views it as
highly unlikely, Shipping will remain unaffected and could be part
of any possible bankruptcy proceedings at Trico.
The downgrade also reflects the weak liquidity position of
Shipping, which experienced softer than expected results in the
fourth quarter of 2009 and the first quarter of 2010. Although
Shipping is seeing a rebound in its business as the fundamentals
have improved, Shipping's liquidity is stretched and requires
additional sources to bridge the next few quarters.
On May 6, 2010, Trico announced that it will not have sufficient
cash to meet its needs over the ensuing twelve months and will
likely be in violation of some of its covenants. It pursuing
measures to improve its liquidity situation, including replacing
its credit facility and asking for modifications to the existing
8.125% debentures. Depending on the outcome of these discussions,
Trico may need to utilize the grace period to meet an $8 million
coupon payment on its 8.125% debentures, payable on May 15, 2010.
If Trico cannot obtain a new credit facility that provides
additional liquidity to help cover its coupon payment and cannot
reach agreement with the debenture holders, it may be forced to
seek other alternatives, including bankruptcy protection. At this
point, any bankruptcy proceedings, if chosen by Trico, may include
Shipping, which is reflected in the Caa3 CFR and PDR.
The developing outlook considers that depending on whether
management is successful in obtaining sufficient additional
liquidity at both Trico and Shipping, the ratings could move
further down, are affirmed at current levels, or could be
upgraded.
The last rating action for Trico Shipping AS was on October 14,
2009, when Moody's assigned a Caa1 CFR and PDR and a B1 senior
secured rating to its notes.
Trico Shipping is an indirectly owned subsidiary of Trico Marine
Services, Inc., which is headquartered in The Woodlands, TX, and
provides subsea services, subsea trenching and protection
services, and towing and supply vessels to oil and gas exploration
companies that operate in major producing regions around the
world.
UNIVERSAL SALES: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: Universal Sales Company, Inc.
dba Universal Sales Company of MO
3350 Ulmerton Road, Suite 14
Clearwater, FL 33762
Bankruptcy Case No.: 10-10745
Chapter 11 Petition Date: May 5, 2010
Court: U.S. Bankruptcy Court
Middle District of Florida (Tampa)
Judge: K. Rodney May
Debtor's Counsel: Douglas N. Menchise, Esq.
300 Turner Street
Clearwater, FL 33756
Tel: (727) 442-2186
E-mail: dmenchise@verizon.net
Estimated Assets: $0 to $50,000
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/flmb10-10745.pdf
The petition was signed by Rati M. Patel, president.
UNO RESTAURANT: Disclosure Statement Wins Judge Approval
--------------------------------------------------------
Uno Restaurant Holdings Corp. has won permission from a judge to
advance a Chapter 11 plan proposing to restructure the company by
handing over 100 percent of stock holdings to senior secured
lenders, Bankruptcy Law360 reports. Judge Martin Glenn issued an
order from the bench on Tuesday in the U.S. District Court for the
Southern District of New York approving a disclosure statement for
Uno's reorganization, according t Law360.
Boston, Massachusetts-based Uno Restaurant Holdings Corporation --
http://www.unos.com/-- has 179 company-owned and franchised
full-service Uno Chicago Grill restaurants located in 28 states,
the District of Columbia, Puerto Rico, South Korea, the United
Arab Emirates, Honduras, Kuwait, and Saudi Arabia. The company
also operates a fast casual concept called Uno Due Go(R), a quick
serve concept called Uno Express, and a consumer foods division
which supplies airlines, movie theaters, hotels, airports, travel
plazas, schools and supermarkets with both frozen and refrigerated
private-label foods and branded Uno products.
The Company and 152 affiliates filed for Chapter 11 bankruptcy
protection on January 20, 2010 (Bankr. S.D.N.Y. Lead Case No.
10-10209). The Company listed $100,000,001 to $500,000,000 in
assets and $100,000,001 to $500,000,000 in liabilities.
Weil, Gotshal & Manges LLP assist the Debtors in their
restructuring effort. CRG Partners Group LLC is the restructuring
advisor. Kurtzman Carson Consultants LLC serves as noticing and
claims agent.
USEC INC: Posts $9.7 Net Loss for March 31 Quarter
--------------------------------------------------
USEC Inc. reported a net loss of $9.7 million or 9 cents per share
for the quarter ended March 31, 2010, compared with a net loss of
$2.1 million or 2 cents per share for the first quarter of 2009.
The Company's balance sheet at March 31, 2010, showed $3.4 billion
in total assets, $1.0 billion in total current liabilities,
$575.0 million in long term debt, and $556.1 million other long-
term liabilities, for a stockholder's equity of $1.2 billion.
"Despite reporting a loss, our revenue was on target and gross
profit exceeded our expectations for the quarter. The decrease in
SWU volume sold in the first quarter reflects the timing of
customer orders and reactor refueling, which can vary
significantly from quarter to quarter," said John K. Welch, USEC
president and chief executive officer. "Gross profit margins for
2010 are being compressed by higher costs seen in recent quarters
that are reflected in our average inventory cost."
"We've seen positive movement in our American Centrifuge project
with the startup of the Lead Cascade testing program during the
quarter, but that investment impacts our bottom line," he said.
"Absent the advanced technology expense and one-time, income tax-
related charge, we would have reported positive earnings this
quarter."
Revenue
Revenue for the first quarter was $344.7 million, a decrease of
32 percent compared to the same quarter of 2009. Revenue from the
sale of SWU for the quarter was $266.6 million compared to
$427.9 million in the same period last year. The volume of SWU
sales declined 41 percent in the quarter while average prices
billed to customers increased 5 percent, reflecting the particular
contracts under which SWU were sold during the periods as well as
the general trend of higher prices under contracts signed in
recent years. The company anticipates a decrease in the volume of
SWU sales of approximately 15 percent in the full year 2010
compared with 2009.
Revenue from the sale of uranium was $15.6 million, a decrease of
$13.0 million from the same quarter last year. The quarterly
results reflect a decrease of 36 percent in uranium volume sold at
average prices that were 14 percent lower than in the 2009 period
due to the mix and timing of uranium contracts. Revenue from our
U.S. government contracts segment was $62.5 million compared to
$49.1 million in the first quarter last year, an increase of 27
percent.
In a number of sales transactions, USEC transfers title and
collects cash from customers but does not recognize the revenue
until low enriched uranium is physically delivered. At March 31,
2010, deferred revenue totaled $341.0 million, an increase of
$39.1 million from December 31, 2009. The gross profit associated
with deferred revenue as of March 31, 2010, was $56.9 million.
A majority of reactors served by USEC are refueled on an 18-to-24-
month cycle, and this can lead to significant quarterly and annual
swings in SWU sales volume that reflects the mix of refueling
cycles. Therefore, short-term comparisons of USEC's financial
results are not necessarily indicative of longer-term results.
A full-text copy of the Company's earnings release is available
for free at http://ResearchArchives.com/t/s?61d5
About USEC Inc.
Headquartered in Bethesda, Maryland, USEC Inc. (NYSE: USU) --
http://www.usec.com/-- a global energy company, is a supplier of
enriched uranium fuel for commercial nuclear power plants.
At December 31, 2009, the Company had total assets of
$3.532 billion against total current liabilities of
$1.082 billion, long-term debt of $575.0 million and total other
long-term liabilities of $598.9 million, resulting in
stockholders' equity of $1.275 billion.
* * *
According to the Troubled Company Reporter on Dec. 30, 2009,
USEC Inc. has a revolving credit that matures in August and a
corporate rating from Standard & Poor's that recently declined one
click to CCC+, matching the action taken on Dec. 18 by Moody's
Investors Service.
UTSTARCOM INC: Amends Common Stock Deal with Elite Noble
--------------------------------------------------------
UTStarcom Inc. and Elite Noble Limited and Shah Capital
Opportunity Fund LP entered into an amendment of the common stock
purchase agreement to amend certain terms related to the rights of
the company and the investors to terminate the agreements.
The purchase agreement provides that the deal may be terminated by
either the Company or the applicable Investors under certain
circumstances if the closing of the Placement has not occurred
within 90 days of February 1, 2010. As of the date hereof, the
closing of the Placement has not occurred. Under the terms of the
Amendments, the Purchase Agreements may be terminated by either
the Company or the Investors if closing of the Placement has not
occurred within 120 days of February 1, 2010.
About UTStarcom
UTStarcom, Inc. (Nasdaq: UTSI) -- http://www.utstar.com/-- is a
global leader in IP-based, end-to-end networking solutions and
international service and support. The Company sells its
solutions to operators in both emerging and established
telecommunications markets around the world. UTStarcom enables
its customers to rapidly deploy revenue-generating access services
using their existing infrastructure, while providing a migration
path to cost-efficient, end-to-end IP networks. The Company was
founded in 1991 and is headquartered in Alameda, California.
Going Concern Doubt
The Company has recorded operating losses in 19 of the 20
consecutive quarters in the period ended December 31, 2009. At
December 31, 2009, the Company had an accumulated deficit of
$1.067 billion. While operating results are expected to improve
in 2010 compared with prior years, management expects the Company
to continue to incur losses in 2010.
UTSTARCOM INC: Posts $15.9 Million Net Loss for First Quarter
-------------------------------------------------------------
UTStarcom Inc. reported financial results for the first quarter
ended March 31, 2010.
The Company reported a net loss of $15.9 million on $80.8 million
of net sales for the three months ended March 31, 2010, compared
with a net loss of $67.4 million on $119.3 million of net sales
during the same period a year ago.
The Company's balance sheet at March 31, 2010, showed
$882.9 million in total assets and $642.2 million in total
liabilities for a $240.7 million stockholders' equity.
"Revenue results for the first quarter were in line with
expectations. We achieved improved bottom line results compared
with the same period a year ago due to the significant changes we
have made to our cost structure," said Peter Blackmore,
UTStarcom's chief executive officer and president. "We will
continue to improve our cost structure and build bookings to put
UTStarcom on the path to profitability."
First Quarter 2010 Financial Results
Net sales for the first quarter 2010 were $81 million as compared
to $119 million in the first quarter of 2009. Gross margins for
the first quarter 2010 were 34% as compared to 18% in the first
quarter of 2009. The operating loss for the first quarter of 2010
and 2009 was $19 million and $59 million, respectively.
The GAAP net loss attributable to UTStarcom for the first quarter
of 2010 was $16 million, or a loss of $0.12 per share, as compared
to a loss of $67 million, or $0.54 per share in the first quarter
of 2009.
These items affected the first quarter 2010 GAAP operating
expenses of $46 million:
* A $7.5 million restructuring charge primarily related to
restructuring initiatives announced in June 2009.
* A $1.8 million gain related to the sale of a legacy business.
Net cash, cash equivalents and short-term investments as of
March 31, 2010, was $235 million compared to $267 million on
December 31, 2009.
Non-GAAP Results
To enable a comparison of the financial results for the Company on
a year-over-year basis the Company has prepared certain non-GAAP
results which present the Company's results as if both the
divestiture of PCD and the wind-down of the Company's Korea-based
handset operations were completed as of the beginning of the
earliest period presented prior to each time-period presented.
The first quarter 2010 non-GAAP revenue was $78 million, the non-
GAAP gross margin was 34% and the non-GAAP operating loss was
$19 million. This compares to the first quarter 2009 non-GAAP
revenue of $80 million, the non-GAAP gross margin of 24% and the
non-GAAP operating loss of $59 million.
Conference Call
The Company will host a conference call to discuss the results at
2:00 p.m. (PST) / 5:00 p.m. (EST) on May 4, 2010, and 5:00 a.m.
China time on May 5, 2010.
A full-text copy of the Company's earnings release is available
for free at http://ResearchArchives.com/t/s?61d6
About UTStarcom
UTStarcom, Inc. (Nasdaq: UTSI) -- http://www.utstar.com/-- is a
global leader in IP-based, end-to-end networking solutions and
international service and support. The Company sells its
solutions to operators in both emerging and established
telecommunications markets around the world. UTStarcom enables
its customers to rapidly deploy revenue-generating access services
using their existing infrastructure, while providing a migration
path to cost-efficient, end-to-end IP networks. The Company was
founded in 1991 and is headquartered in Alameda, California.
Going Concern Doubt
The Company has recorded operating losses in 19 of the 20
consecutive quarters in the period ended December 31, 2009. At
December 31, 2009, the Company had an accumulated deficit of
$1.067 billion. While operating results are expected to improve
in 2010 compared with prior years, management expects the Company
to continue to incur losses in 2010.
UTSTARCOM INC: Selects Edmond Cheng as New Chief Financial Officer
------------------------------------------------------------------
UTStarcom Inc. appointed Edmond Cheng as Senior Vice President,
Chief Financial Officer. Mr. Cheng replaces Kenneth Luk, who is
resigning from the CFO position due to personal reasons. Mr. Luk
plans to leave the company after the filing of the Company's
Quarterly Report on Form 10-Q for the quarterly period ended
March 31, 2010.
"We are extremely pleased to welcome Edmond to UTStarcom's
management team," said Peter Blackmore UTStarcom's chief executive
officer and president. "He brings a wealth of financial and
management expertise as well as the track record of a successful
CFO. His experience working with leading Asia based global
companies such as Zoomlion and PSA International to sustain and
drive profitable growth will be valuable in driving the long-term
growth strategy for UTStarcom."
Mr. Cheng has over 25 years of financial and operations experience
covering Asia Pacific, Europe and North America. He joins
UTStarcom from Zoomlion, a publicly listed company on the Shenzhen
Stock Exchange where he served as chief financial officer. From
1985 to 2005, he held various progressive financial and
operational positions at Applied Materials, Compaq Computers, GTE,
Ingram Micro and Mallinckrodt including vice president finance and
divisional chief financial officer. He has also held chief
financial officer roles at Titan Petrochemicals Group Limited and
PSA International Pte. Ltd. Mr. Cheng received a B.B.A. in
Accounting and Management Information System from the University
of Hawaii as well as a Masters of Accounting. He is a certified
public accountant.
About UTStarcom
UTStarcom, Inc. (Nasdaq: UTSI) -- http://www.utstar.com/-- is a
global leader in IP-based, end-to-end networking solutions and
international service and support. The Company sells its
solutions to operators in both emerging and established
telecommunications markets around the world. UTStarcom enables
its customers to rapidly deploy revenue-generating access services
using their existing infrastructure, while providing a migration
path to cost-efficient, end-to-end IP networks. The Company was
founded in 1991 and is headquartered in Alameda, California.
Going Concern Doubt
The Company has recorded operating losses in 19 of the 20
consecutive quarters in the period ended December 31, 2009. At
December 31, 2009, the Company had an accumulated deficit of
$1.067 billion. While operating results are expected to improve
in 2010 compared with prior years, management expects the Company
to continue to incur losses in 2010.
VALASSIS: Commences Cash Tender Offer for Up to $270MM of Notes
---------------------------------------------------------------
Valassis has commenced a cash tender offer to purchase up to $270
million aggregate principal amount of its outstanding 8 1/4%
Senior Notes due 2015 at a purchase price equal to $1,070 per
$1,000 principal amount of Notes purchased, plus accrued and
unpaid interest to, but not including, the settlement date. The
complete terms and conditions of the Offer are set forth in the
Offer to Purchase, dated May 12, 2010, and the related Letter of
Transmittal.
If the aggregate principal amount of Notes validly tendered
exceeds the Maximum Tender Amount, the amount of Notes purchased
will be prorated based on the aggregate principal amount of Notes
tendered, rounded down to the nearest integral multiple of $1,000.
The Offer is not conditioned on any minimum amount of Notes
tendered, but is conditioned upon the satisfaction or waiver of
certain conditions which are described more fully in the Offer to
Purchase.
The Offer is scheduled to expire at 12:00 Midnight, New York City
time, on June 9, 2010, unless Valassis extends or earlier
terminates the Offer in its sole discretion. Tendered Notes may
be withdrawn from the Offer at or prior to the Expiration Date.
Any Notes purchased pursuant to the Offer will be cancelled, and
those Notes will cease to be outstanding. Payment for the Notes
validly tendered and not validly withdrawn at or prior to the
Expiration Date will occur promptly after the Expiration Date.
Valassis has retained J.P. Morgan Securities Inc. to act as Dealer
Manager in connection with the Offer. Wells Fargo Bank, National
Association has been retained to act as the Depositary for the
Offer, and i-Deal LLC has been retained to act as the Information
Agent for the Offer.
For additional information regarding the terms of the Offer,
please contact J.P. Morgan Securities Inc. at (800) 245-8812 (toll
free) or (212) 270-3994 (collect). Requests for documents and
questions regarding the Offer may be directed to i-Deal LLC at
(877) 746-3583 (toll free) or (201) 499-3500 (collect).
About Valassis
Valassis is one of the nation's leading media and marketing
services companies, offering unparalleled reach and scale to more
than 15,000 advertisers. Its RedPlum media portfolio delivers
value on a weekly basis to over 100 million shoppers across a
multi-media platform -- in-home, in-store and in-motion. Through
its interactive offering -- redplum.com -- consumers will find
compelling national and local deals online. Headquartered in
Livonia, Michigan with approximately 7,000 associates in 28 states
and eight countries, Valassis is widely recognized for its
associate and corporate citizenship programs, including its
America's Looking for Its Missing Children(R) program. Valassis
companies include Valassis Direct Mail, Inc., Valassis Canada,
Promotion Watch, Valassis Relationship Marketing Systems, LLC and
NCH Marketing Services, Inc.
As reported by the TCR on Feb. 3, 2010, Standard & Poor's Ratings
Services placed its 'B+' corporate credit rating for Livonia,
Michigan-based Valassis Communications Inc., along with all
associated issue-level ratings, on CreditWatch with positive
implications.
VALENTIN OLMO: Case Summary & 4 Largest Unsecured Creditors
-----------------------------------------------------------
Joint Debtors: Valentin J. Olmo
Maria T. Olmo
Shapiro & Croland
1 Kingman Road
Berkeley Heights, NJ 07922
Bankruptcy Case No.: 10-24074
Chapter 11 Petition Date: May 7, 2010
Court: U.S. Bankruptcy Court
District of New Jersey (Newark)
Judge: Morris Stern
Debtor's Counsel: Bruce W. Radowitz, Esq.
Abelson, Truesdale & Radowitz, LLC
636 Chestnut Street
Union, NJ 07083
Tel: (908) 687-2333
E-mail: bradowitz@comcast.net
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 $1,036,000 while debts total $1,469,000.
A copy of the Joint Debtors' list of 4 largest unsecured creditors
filed together with the petition is available for free at
http://bankrupt.com/misc/njb10-24074.pdf
The petition was signed by the Joint Debtors.
VAZQUEZ ROSARIO: Case Summary & 4 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: Vazquez Rosario, Inc.
Calle San Justo 257
San Juan, PR 00901
Bankruptcy Case No.: 10-03770
Chapter 11 Petition Date: May 5, 2010
Court: United States Bankruptcy Court
District of Puerto Rico (Old San Juan)
Debtor's Counsel: Wanda I. Luna Martinez, Esq.
PMB 389
P.O. Box 194000
San Juan, PR 00919-4000
Tel: (787) 731-4437
E-mail: quiebra@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 4 largest unsecured creditors filed
together with the petition is available for free at
http://bankrupt.com/misc/prb10-03770.pdf
The petition was signed by Jose A. Rosario Cristobal, president.
VENTANA HILLS: Has Until June 1 to File Plan of Reorganization
--------------------------------------------------------------
The Hon. Pamela H. Hollis of the U.S. Bankruptcy Court for the
Northern District of Illinois directed Ventana Hills Associates
Ltd., and Ventana Hills Phase II, L.P., to file an explanatory
Disclosure Statement and Plan of Reorganization by June 1, 2010.
Ventana Hills Associates, Ltd., is the owner and operator of a
residential apartment project located in Pittsburgh, Pennsylvania,
known as "Ventana Hills Apartments. Ventana Hills Apartments was
constructed in 2002 as a rental apartment community, in two
phases, and was purchased by the Debtor in 2004 for $50,000.
Ventana Hills Associates and affiliate Ventana Hills Phase II,
L.P., filed for Chapter 11 on November 3, 2009 (Bankr. N.D. Ill.
Case No. 09-41755). The Debtors each estimated assets of and
debts of $50,000,001 to $100,000,000 in their respective
petitions. Richard H. Fimoff, Esq., at Robbins, Salomon & Patt
Ltd., in Chicago, Illinois, represent the Debtor.
VISTEON CORP: Terms of 2nd Amended Plan; D.S. Hearing May 19
------------------------------------------------------------
Visteon Corporation and its debtor affiliates delivered to the
U.S. Bankruptcy Court for the District of Delaware their Second
Amended Joint Plan of Reorganization and Disclosure Statement on
May 7, 2010.
The Second Amended Plan consists of two mutually exclusive sub-
plans:
* A rights offering sub-plan under which certain unsecured
bondholders would have the opportunity to receive 95% of
the equity in reorganized Visteon in exchange for $1.25
billion in cash raised through a backstopped equity rights
offering. The remaining 5% in equity would be distributed
among unsecured bondholders. Unsecured bondholders unable
to participate in the rights offering pursuant to
securities laws would also be provided with a cash recovery
under the plan in lieu of receiving rights to participate
in the rights offering. Secured lenders would be paid in
full from proceeds from the capital raise and exit
financing as outlined in the plan;
* A claims conversion sub-plan, similar to the plan filed by
Visteon on March 15, 2010, under which the term loan
lenders would receive approximately 85% of the equity in
reorganized Visteon and unsecured bondholders would receive
approximately 15% of the equity.
Under both sub-plans, the other general unsecured creditors
would receive a cash payout.
Under the Second Amended Plan, Visteon would retain its U.S.
defined benefit pension plans. The Second Amended Plan still
leaves bondholders and other general unsecured creditors
substantially impaired. Thus, the Second Amended Plan does not
provide for any recovery to holders of Visteon's equity.
"The fundamental tenet of this dual plan concept is that if
the bondholders deliver the $1.25 billion and exit financing, the
company will move forward with the rights offering sub-plan,"
says William G. Quigley, III, chief financial officer and
executive vice president of Visteon Corporation. "If the
bondholders are unable to raise this cash, the company will
'toggle' to the claims conversion sub-plan under guidelines of
the second amended plan and related agreements."
The Plan has the support of more than two-thirds in amount of the
holders of the 12.25% Senior Notes Claims and two-thirds in the
aggregate amount of the holders of the 7.00% Senior Notes Claims
and the 8.25% Senior Notes Claims.
Holders of more than two-thirds of the aggregate face amount of
Visteon's bonds have executed plan support agreements in favor of
the Second Amended Plan.
Mr. Quigley avers that the 'toggle' plan construct allows
noteholders to "truly put their money where their mouth is, while
minimizing Visteon's risk of being left at the confirmation altar
without a confirmable plan if the note holders do not live up to
their promise to deliver capital." Mr. Quigley maintains that
the Plan also avoids what would be costly and protracted cram
down litigation with Visteon's noteholders and resolves disputes
over valuation among all parties other than "out of the money"
equity holders who will dispute any valuation that does not
provide them with a recovery.
Thus, Visteon believes that the term lenders will ultimately
support the Plan.
While Visteon expects equity holders to oppose the Plan, those
holders are deemed to reject the Plan and would not be entitled
to vote on the Plan, making their support irrelevant to Plan
confirmation.
The Rights Offering Sub Plan
The Debtors will seek to consummate the Rights Offering Sub Plan
in the event sufficient new capital is raised to satisfy the Term
Loan Facility Claims in Cash in full, thus leaving the Term Loan
Facility Claims Unimpaired. The Rights Offering Sub Plan
contemplates these sources of new capital to satisfy the Term
Loan Facility Claims:
(a) $950 million through a Rights Offering of New Visteon
Common Stock to holders of 12.25% Senior Notes Claims,
7.00% Senior Notes Claims, and 8.25% Senior Notes Claims,
who qualify as accredited investors, as that term is
defined under Rule 501(a) of Regulation D of the
Securities Act, through a private placement under Section
4(2) of the Securities Act;
(b) a $300 million direct purchase commitment from the
Investors; and
(c) an Exit Financing Facility.
The Equity Commitment Agreement entered into by the Debtors and
Investors in connection with the Rights Offering Sub Plan
provides that any shares of New Visteon Common Stock that are not
purchased through the Rights Offering, or distributed to holders
of the 12.25% Senior Notes Claims, will be purchased by the
Investors subject to certain terms and conditions.
Under the Rights Offering Sub Plan, all Note Holders will be
entitled to receive a Pro Rata distribution of 5% of New Visteon
Common Stock and all Eligible Holders will be entitled to
participate in a Rights Offering for the remaining 95% of New
Visteon Common Stock.
Holders of General Unsecured Claims against Debtor Visteon
International Holdings, Inc. will be paid in full in Cash due to
VIHI's interest in valuable foreign stock holding companies and
position in the Debtors' corporate structure, which makes direct
Claims against VIHI structurally superior to other General
Unsecured Claims.
The other remaining holders of General Unsecured Claims will
receive a Cash recovery equal to the lesser of (x) that holder's
Pro Rata share of $141 million in Cash, or (y) 50% recovery of
the amount of that holders' Allowed Class H Claim.
The Rights Offering Sub-Plan also contemplates Reorganized
Visteon's entry into a new $300 million working capital facility.
Under the Rights Offering Sub Plan, restricted stock grants equal
to 3.0% of the New Visteon Common Stock, on a fully diluted
basis, will be granted to the Management Equity Incentive Program
participants on the Plan Effective Date.
The Claims Conversion Sub Plan
The Plan will "toggle" from the Rights Offering Sub Plan to the
Claims Conversion Sub Plan in the event sufficient capital is not
raised under the Rights Offering Sub Plan to satisfy the Term
Loan Facility Claims in full in cash. Under the Claims
Conversion Sub Plan, Reorganized Visteon will issue New Visteon
Common Stock to the Term Loan Lenders and the Note Holders in
these percentages based on their relative priorities and
positions in the Debtors' capital structure:
* 84.9% to 86.2% of the holders of the Term Loan Facility
Claims;
* 6.3% to 6.5% to the holders of the 12.25% Senior Notes
Claims; and
* 7.5% to 8.6% to the holders of the 7.00% Senior Note Claims
and 8.25% Senior Notes Claims.
Under the Claims Conversion Sub Plan, holders of General
Unsecured Claims will receive the same recovery provided under
the Rights Offering Sub Plan.
The Claims Conversion Sub-Plan contemplates Reorganized Visteon's
entry into a new $150 million working capital facility.
Under the Claims Conversion Sub Plan, restricted stock grants
equal to 2.5% of the New Visteon Common Stock, on a fully diluted
basis, will be granted to the Management Equity Incentive Program
participants on the Plan Effective Date.
Plan Support Agreement
The Plan Support Agreement entered into in connection with the
Plan by and among the Debtors and the Consenting Note Holders
provides that the parties will support the Plan in all aspects,
including the findings of the valuation analysis prepared by the
Debtors and their advisors.
In certain limited circumstances, the Consenting Note Holders
have the right to terminate the Plan Support Agreement and
withdraw their support for the Plan.
Claims Classification
Under the Second Amended Plan, Classes F, G and H are
recategorized as:
Class F 7.00% Senior Notes Claims & 8.25% Senior Notes Claims
Class G 12.25% Senior Notes Claims
Class H General Unsecured Claims
Approval of Disclosure Statement
The Second Amended Disclosure Statement includes disclosures on
(1) securities law matters under the Rights Offering Sub Plan;
and (ii) variances in the Distributable Equity Value of
reorganized Visteon under each Sub Plan, among others.
The Debtors also attached financial projections and liquidation
analysis in relation to data under the Second Amended Plan.
The Debtors relate that they intend to seek approval of their
Second Amended Disclosure Statement as soon as possible. When
the Disclosure Statement is approved, the Debtors will begin
soliciting acceptances of the Amended Plan of Reorganization
promptly thereafter and seek its confirmation by the Court in
late July or early August.
Full-text clean and blacklined copies of the Second Amended Plan
are available for free at:
http://bankrupt.com/misc/Visteon_2ndAmendedPlan.pdf
http://bankrupt.com/misc/Visteon_BlackPlan.pdf
Full-text clean and blacklined copies of the Second Amended
Disclosure Statement are available for free at:
http://bankrupt.com/misc/Visteon_2ndAmendedDS.pdf
http://bankrupt.com/misc/Visteon_BlackDS.pdf
Copies of exhibits attached to the Second Amended Disclosure
Statement is available for free at:
http://bankrupt.com/misc/Visteon_2ndAmndedPlanExhibits.pdf
Disclosure Statement Hearing on May 19
Judge Christopher S. Sontchi of the U.S Bankruptcy Court for the
District of Delaware has further postponed the hearing to
consider the adequacy of the Debtors' Disclosure Statement to
May 19, 2010.
The hearing adjournment was noted in a notice of agenda for the
scheduled May 12, 2010 hearing.
The Disclosure Statement Hearing was originally scheduled for
January 28, 2010, and has since been moved to February 18, 2010,
March 16, 2010, April 13, 2010, April 30, 2010 and most recently
to May 12, 2010.
Visteon recently filed a Second Amended Plan of Reorganization
and Disclosure Statement on May 6, 2010. The revised Plan
embodies a "Toggle Plan," consisting of a rights offering plan
and a claims conversion plan.
Visteon's original Chapter 11 Plan and Disclosure Statement was
filed last December 17, 2009, as subsequently amended on
March 15, 2010.
Plan Support Agreement
In connection with the Second Amended Plan and Disclosure
Statement they recently filed with the Court, the Debtors seek
permission from Judge Sontchi to enter into a plan support
agreement, an equity commitment agreement and a cash recovery
backstop agreement.
The Agreements, all dated May 6, 2010, collectively serve as the
backbone of the Second Amended Plan:
A. Plan Support Agreement
Parties to the Plan Support Agreement are the Debtors and
certain holders representing more than two-thirds in amount
of the Debtors' prepetition unsecured notes.
The Plan Support Agreement enforces the "toggle" principal
upon which the Plan is based. Pursuant to the Agreement, the
Consenting Senior Note Holders are obligated to support the
Plan -- under both the Rights Offering Sub Plan and Claims
Conversion Sub Plan scenarios absent certain termination
events largely tied to the Equity Commitment Agreement.
The ability of the Consenting Senior Note Holders to
terminate the Plan Support Agreement and contest the Claims
Conversion Sub Plan is limited mostly to circumstances the
Debtors control, like the Debtors' breach of their
representations and warranties to the level of a material
adverse effect or failure to comply with the covenants of the
Equity Commitment Agreement in a material respect.
Furthermore, to the extent the Plan is amended to treat
individual Consenting Senior Note Holders in a materially
adverse manner, the Consenting Senior Note Holders will be
free to withdraw from the Plan Support Agreement and vote to
reject the Plan. Moreover, the Debtors may terminate their
obligations under the Plan Support Agreement if their
continued support of the Plan is not in the best interests of
their estates or if the Debtors receive a proposal for an
alternative plan, and reasonably determine that their
continued support of the Plan would be inconsistent with
their fiduciary obligations.
A full-text copy of the May 6 Plan Support Agreement is
available for free at:
http://bankrupt.com/misc/Visteon_May6PlanSupportAgmt.pdf
B. Equity Commitment Agreement
Parties to the Equity Commitment Agreement are the Debtors
and a subset of the Consenting Senior Note Holders
backstopping the rights offering.
The Equity Commitment Agreement governs the terms and
conditions of the Investors' backstop equity commitment and
obligations to deliver equity financing. Specifically,
pursuant to the Equity Commitment Agreement, the Investors
will provide a $300 million direct purchase commitment and a
$950 million backstop of the rights offering to Eligible
Holders, subject to the satisfaction of limited conditions to
closing. In exchange for the Investors' agreement to enter
into the Equity Commitment Agreement, the Debtors will pay
the Investors certain fees, subject to the Court's approval.
The Equity Commitment Agreement, in conjunction with the Plan
Support Agreement, contains an "outside date" concept to
ensure that closing of the rights offering must occur in a
timeframe acceptable to the Debtors.
The Equity Commitment Agreement also provides for certain
indemnifications and limitations on remedies that are
integral to the agreement of the Investors and the Debtors.
A full-text copy of the May 6 Equity Commitment Agreement is
available for free at:
http://bankrupt.com/misc/Visteon_May6EquityCommitmentAgmt.pdf
C. Cash Recovery Backstop Agreement
Parties to the Cash Recovery Backstop Agreement are the
Debtors and certain investor signatories.
Pursuant to the Cash Recovery Backstop Agreement, the
Signatories will fund, on a several but not joint liability
basis, cash distributions to Non-Eligible Holders under the
Rights Offering Sub Plan in exchange for Visteon issuing to
the Signatories the rights to participate in the rights
offering that would have been distributed to those Non-
Eligible Holders, had they been Eligible Holders.
A full-text copy of the May 6 Cash Recovery Backstop
Agreement is available for free at:
http://bankrupt.com/misc/Visteon_May6CashRcvryBckstpAgmt.pdf
In consideration for the Equity Commitment Agreement, the Debtors
have agreed to pay to the Investors certain fees, which the
Debtors believe are well within the reasonable range of fees
typically paid for as part of capital contributions of this size.
Specifically, the Debtors have agreed to pay these fees and
expenses to the Investors:
(a) $43,750,000 in connection with the $300 million direct
purchase commitment and the Investors' commitment to
backstop the rights offering, 25% of which will be payable
upon entry of the order approving the Equity Commitment
Agreement, with the balance payable only upon closing of
the Equity Commitment Agreement;
(b) $16,625,000 for arranging the transactions contemplated by
the Equity Commitment Agreement, paid to certain of the
Investors and their advisors; and
(c) out-of-pocket costs and expenses reasonably incurred in
the ordinary course of business by each of the Investors
in connection with the Equity Commitment Agreement,
estimated to be approximately $10.4 million in aggregate
related to the pre-Equity Commitment Agreement approval
Transaction Expenses. However, given the consensual
nature of the Investors' entry into the Equity Commitment
Agreement and the Plan Support Agreement, the Debtors
expect the Investors' post-Equity Commitment Agreement
Transaction Expenses to be significantly reduced.
The contemplated fees are payable upon a successful closing of
the transactions contemplated under the Rights Offering Sub Plan,
in which case the Investors will be Visteon's new owners.
No fees are payable under the Cash Recovery Backstop Agreement.
Mark M. Billion, Esq., at Pachulski Stang Ziehl & Jones LLP, in
Wilmington, Delaware, relates that the Plan Support Agreement,
the Equity Commitment Agreement, and the Cash Recovery Backstop
Agreement are key components of the Plan and critical to the
Debtors' efforts to secure as expeditious an exit from chapter 11
as possible.
In a separate filing, the Debtors ask the Court to consider their
Plan Support Agreements Motion at the scheduled May 17, 2010
hearing. They also ask the Court to set the deadline for
objections to the request for May 14.
About Visteon Corp.
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)
VISTEON CORP: Proposes Protocol for Rights Offering
---------------------------------------------------
Visteon Corp. and its units seek approval of uniform procedures
and materials necessary to implement the rights offering
contemplated under the Second Amended Plan of Reorganization they
recently filed with the Court.
The Second Amended Plan is comprised of two sub plans, of which
the first and lead sub plan is premised on a fully backstopped
Rights Offering. The Rights Offering would entitle unsecured
bondholders to obtain 95% of the equity in reorganized Visteon in
exchange for $1.25 billion in cash and holders of the Debtors
prepetition term loan debt would be paid in full in cash.
The Debtors propose Rights Offering Procedures, an Election Form,
and a Subscription Form. The Debtors ask Judge Sontchi to
authorize them to implement and use the proposed procedures and
forms as well adopt, as necessary, any additional detailed
procedures consistent with the Rights Offering Procedures and
timeline to effectuate the Rights Offering.
Financial Balloting Group, LLC, the Debtors' rights offering
agent, will distribute as soon as practicable following May 17,
2010, Election Forms to holders of Allowed Senior Notes Claims as
of the Rights Offering Record Date.
To participate in the Rights Offering, a holder must be an
"Eligible Holder." An Eligible Holder includes any holder of an
Allowed Senior Notes Claim that has validly completed and
returned to the Rights Offering Agent its Election Form, so that
the form is actually received by the Rights Offering Agent by
June 11, 2010, certifying that as of the Rights Offering Record
Date it is an accredited investor as defined under Rule 501 of
Regulation D promulgated under the Securities Act.
A holder that is not an accredited investor as of the Rights
Offering Record Date that validly submits its Election Form so
that it is actually received by the Rights Offering Agent by the
Election Form Deadline will receive in lieu of Subscription
Rights the Cash Amount as set forth under the Plan.
A holder that does not follow the required procedures and submit
a validly completed Election Form to the Rights Offering Agent so
that it is actually received by the Election Form Deadline will
forfeit any and all Subscription Rights and, if applicable,
Oversubscription Rights, or, if applicable, any entitlement to
the Cash Amount, that it may have under the Rights Offering and
the Plan.
The Rights Offering Agent will provide by mail, electronic mail,
or facsimile transmission to each Eligible Holder the Rights
Offering Procedures and Subscription Form as soon as practicable
after the Election Form Deadline.
The Rights Offering will commence on the date the Subscription
Forms are mailed to Eligible Holders and will end on the
Subscription Expiration Date, which will be the same date as the
Voting Deadline.
Each Eligible Holder intending to participate in the Rights
Offering must affirmatively elect to exercise its Subscription
Rights and, if applicable, Oversubscription Rights on or before
the Subscription Expiration Date. To exercise its Subscription
Rights and, if applicable, Oversubscription Rights, an Eligible
Holder must:
(a) return a validly completed Subscription Form to the
Rights Offering Agent, so that the Subscription Form is
actually received by the Rights Offering Agent on or
before the Subscription Expiration Date; and
(b) pay to the Rights Offering Agent on or before the
Subscription Expiration Date the Purchase Price
multiplied by the number of shares of New Visteon Common
Stock that Eligible Holder has elected to purchase
pursuant to its Subscription Rights and its
Oversubscription Rights, in accordance with the payment
instructions set forth on the Subscription Form.
If the Rights Offering Agent does not receive both a validly
completed Subscription Form and immediately available funds from
an Eligible Holder prior to the Subscription Expiration Date,
that Eligible Holder will be deemed to have relinquished and
waived its right to participate in the Rights Offering. The
Debtors will not be obligated to honor any purported exercise
of Subscription Rights and, if applicable, Oversubscription
Rights received after the Subscription Expiration Date,
regardless of when the documents relating to those exercise were
sent.
Also, any payment made by an Eligible Holder will be refunded
under the Claims Conversion Sub Plan or if that Eligible Holder
has made an overpayment, in an amount equal to that overpayment.
The Debtors assert that the Rights Offering Procedures have been
designed to efficiently transmit all materials necessary for
participation in the Rights Offering and the Election Form
and Subscription Form have been drafted to assure the clear
communication of the requirements for, and to facilitate, that
participation. Thus, the Debtors point out, the Rights Offering
Materials afford those Eligible Holders a fair and reasonable
opportunity to exercise Subscription Rights and, if applicable,
Oversubscription Rights.
A full-text copy of the Rights Offering Procedures is available
for free at http://bankrupt.com/misc/Visteon_RightsOfferProc.pdf
Copies of the Subscription and Election Forms are available for
free at:
http://bankrupt.com/misc/Visteon_SubscriptionElectionForms.pdf
In a separate filing, the Debtors ask the Court to consider their
Rights Offering Motion at the scheduled May 17, 2010, hearing.
They also ask the Court to set the deadline for objections to the
request for May 14.
About Visteon Corp.
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)
VISTEON CORP: Insists on Keeping Plan Exclusivity
-------------------------------------------------
Visteon Corp. and its units ask the U.s. Bankruptcy Court to deny
(1) the objections filed by the Ad Hoc Committee of Equity Holders
and Aurelius Capital Master, Ltd., ACP Master, Ltd., and Aurelius
Convergence Master, Ltd.; and (2) the joinder of Cypress
Management Master, L.P., Lenado Capital Advisors LLC and Goshawk
Capital Corp. to the objections with respect to their request for
a third extension of their exclusive periods to propose and
solicit acceptances of a Chapter 11 plan.
The Debtors assert that the progress they obtained in their
bankruptcy cases warrant and justify an extension of their
Exclusivity Periods. James E. O'Neill, Esq., at Pachulski Stang
Ziehl & Jones LLP, in Wilmington, Delaware, summarizes the
Debtors' progress so far:
-- The Debtors have filed three plans of reorganization since
December 2009. The Debtors recognize the changing nature
of the markets and agreed not to move forward with the
confirmation process until all parties had the opportunity
to execute diligence and propose alternative plan
structures.
-- The May 6, 2010 Toggle Plan is a testament to the Debtors'
efforts to make their case as transparent as possible, and
dedication to pursuing a plan that is supported by
stakeholders. The Toggle Plan consists of a Rights
Offering Sub Plan and a Claims Conversion Sub Plan.
-- While the Debtors have been able to garner the support of
most unsecured creditors, holders of Visteon equity remain
unhappy that equity is extinguished under all realistic and
feasible exit scenarios. To the best of the Debtors'
knowledge, those equity holders only began to take interest
in the cases in late February 2010.
-- The Debtors have made management available for discussions
for the equity holders.
-- The equity holders have launched a campaign to derail the
Debtors' efforts to confirmation, but have not proposed any
viable plan alternative.
-- All parties will have the opportunity to challenge the
Debtors' valuation and the confirmability of the Toggle
Plan at the confirmation hearing.
The Debtors maintain that a valuation dispute is not a valid
reason to terminate the Exclusivity Periods.
Wilmington Trust Supports Exclusivity Extension,
Reiterates Two Alternative Plan Approaches
Wilmington Trust FSB, as administrative agent under the Debtors'
senior secured term loan facility, on behalf of itself and
several prepetition term loan lenders, supports the Debtors'
Third Exclusivity Extension Motion.
While Wilmington Trust says the Second Amended Plan is not the
solution, it remains hopeful that the Debtors will find a
solution.
Wilmington Trust thus asserts that an extension of the
Exclusivity Periods will allow the Debtors' to select and proceed
with other alternative plan approaches.
Wilmington Trust tells the Court that it intends to object to the
approval of three agreements filed in aid of the Toggle Plan.
Wilmington Trust is concerned that the Equity Commitment
Agreement contains no enforceable commitment by any of the
Bondholders ever to pay anything, while the Plan Support
Agreement does not actually support toggling to an equity plan on
a certain date. "Rather, the complex arrangements permits those
institutions party to the Commitment Agreement an indefinite
period of time to raise funds and if they fail to do so, the
ability to free the confirmation process," Derek C. Abbott, Esq.,
at Morris, Nichols, Arhst & Tunnell LLP, in Wilmington, Delaware,
contends, on behalf of Wilmington Trust.
The complex arrangements also saddle the Debtors with more than
$100 million in completely unnecessary fees payable to the
bondholders and investment banking constituencies, Wilmington
Trust points out.
Wilmington Trust says it also opposes provisions of the Toggle
Plan, which require the Term Loan Lenders in effect to backstop
the Rights Offering Sub Plan for an indefinite period.
In this light, Wilmington Trust proposes two alternatives for the
Debtors' consideration:
1. An alternative approach offered on April 16, 2010, that
would remove the toggle concept and mirror the Claims
Conversion Sub Plan , except that (x) the Debtors would not
be required to make exceptional covenants, representations
or meet conditions; (y) there would be no Transactional
Expenses or fees; and (z) the Term Loan Lenders would grant
to each qualified Bondholder an option to purchase its
ratable portion of 100% of the equity otherwise
distributable to the Term Loan Lenders.
2. An alternative approach proposed on May 7, 2010, which
would remodel the Rights Offering Sub Plan by having the
Term Loan Lenders replace the Investors and provide both
the direct commitment and backstop commitment contemplated
by the Rights Offering Sub Plan without any fees
whatsoever.
The Term Loan Lenders hope that the Debtors' Board of Directors,
after examining its alternatives, will render the Plan Support
Agreements Motion moot by withdrawing it and proceeding with one
of the two alternatives described.
About Visteon Corp.
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)
VISTEON CORP: Files Rule 2015.3 Report for December
---------------------------------------------------
Visteon Corp. and its units delivered to the Court on May 4, 2009,
a report on the value, operations and profitability of non-debtor
entities, that are not publicly traded corporations, in which one
or more of the Debtors hold a substantial or controlling
interest.
The Debtors disclose that as of December 31, 2009, they hold 100%
interest in more than 30 entities, which include Visteon Canada
Inc., Visteon Holdings France SAS and Visteon Holdings GmbH.
Among others, the Debtors also hold a 70% interest in Atlantic
Automotive Components LLC, a 56% interest in Climate Systems
India Limited, and a 51% interest in Visteon Interiors Korea Ltd.
A full-text copy of the Rule 2015.3 Report is available for free
at http://bankrupt.com/misc/Visteon_2015Dec31.pdf
About Visteon Corp.
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)
WENDY'S/ARBY'S GROUP: S&P Affirms 'B+' Corporate Credit Rating
--------------------------------------------------------------
Standard & Poor's Ratings Services said that it affirmed its 'B+'
corporate credit rating on restaurant operator Wendy's/Arby's
Group Inc. and its wholly owned subsidiary, Wendy's/Arby's
Restaurants LLC. The action comes after the company announced
that WAR wants to issue a $650 million credit facility to
refinance its currently outstanding credit facility and redeem
$200 million of senior unsecured notes at Wendy's International
Inc. due in 2011. The refinancing will largely be credit-metric
neutral and will increase leverage modestly, but improve interest
coverage slightly.
At the same time, S&P is assigning a '1' recovery rating and 'BB'
issue-level rating to the credit facility, consisting of a $150
revolving credit facility and a $500 million term loan. The '1'
recovery rating indicates S&P's expectation of very high (90%-
100%) recovery of principal in the event of default and the
facility is rated one notch higher than the corporate credit
rating.
"The speculative-grade ratings reflect the company's participation
in the highly competitive quick-service restaurant industry and
highly leveraged capital structure," said Standard & Poor's credit
analyst Charles Pinson-Rose.
The refinancing addresses the company's 2011 maturities. A small
portion of the proceeds will be used to fund expenses associated
with the transaction and so operating leverage will increase
modestly after the transaction to 5.0x from 4.9x at the end of
2009. However, because S&P expects total interest costs to
decrease, S&P estimates that pro forma adjusted EBITDA coverage of
interest will be about 2.5x, a slight improvement from 2.4x.
These pro forma ratios are generally commensurate with ratings in
the high- to mid-'B' rating category.
YOUNG BROADCASTING: Joint Plan of Reorganization Confirmed
----------------------------------------------------------
BankruptcyData.com reports that the U.S. Bankruptcy Court
confirmed Young Broadcasting's Joint Plan of Reorganization. The
Plan fully compensates allowed administrative expenses, allowed
priority claims and secured claims -- other than lenders' claims
and calls for the creation of a new company: New Young
Broadcasting Holding Co. The Plan further provides general
unsecured creditors with their pro rata share of $1 million in the
aggregate and offers equity warrants in NewCo to the noteholders
if they voted to accept the Debtors' Plan.
On April 19, 2010, the Court issued a confirmation opinion denying
the official committee of unsecured creditors' motion to confirm
the committee Plan and granting the Debtors' motion to confirm the
Debtors' Plan.
About Young Broadcasting
Headquartered in New York City, Young Broadcasting, Inc.
-- http://www.youngbroadcasting.com/-- owns 10 television
stations and the national television representation firm, Adam
Young, Inc. Five stations are affiliated with the ABC Television
Network (WKRN-TV - Nashville, TN, WTEN-TV - Albany, NY, WRIC-TV -
Richmond, VA, WATE-TV - Knoxville, TN, and WBAY-TV - Green Bay,
WI), three are affiliated with the CBS Television Network (WLNS-TV
- Lansing, MI, KLFY-TV - Lafayette, LA and KELO-TV - Sioux Falls,
SD), one is affiliated with the NBC Television Network (KWQC-TV -
Davenport, IA) and one is affiliated with MyNetwork (KRON-TV - San
Francisco, CA).
The Company and its affiliates filed for Chapter 11 protection on
February 13, 2009 (Bankr. S.D.N.Y. Lead Case No. 09-10645). Jo
Christine Reed, Esq., at Sonnenschein Nath & Rosenthal LLP,
represents the Debtors in their restructuring effort. The Debtors
selected UBS Securities LLC as consultant; Ernst & Young LLP as
accountant; Epiq Bankruptcy Solutions LLC as claims agent; and
David Pauker chief restructuring officer Andrew N. Rosenberg,
Esq., at Paul Weiss Rifkind Wharton & Harrison LLP, serves as
counsel to the official unsecured creditors committee.
WEST VIEW: Files Schedules of Assets & Liabilities
--------------------------------------------------
West View Apartments, Inc., filed with the U.S. Bankruptcy Court
for the Southern District of Florida its schedules of assets and
liabilities, disclosing:
Name of Schedule Assets Liabilities
---------------- ------ -----------
A. Real Property $15,227,350
B. Personal Property $5,245,078
C. Property Claimed as
Exempt
D. Creditors Holding
Secured Claims $11,888,084
E. Creditors Holding
Unsecured Priority
Claims $0
F. Creditors Holding
Unsecured Non-priority
Claims $440,975
----------- -----------
TOTAL $20,522,427 $12,329,059
Hialeah, Florida-based West View Apartments, Inc., filed for
Chapter 11 bankruptcy protection on April 30, 2010 (Bankr. S.D.
Fla. Case No. 10-21892). Juan C. Zorrilla, Esq., who has an
office in Miami, Florida, assists the Company in its restructuring
effort.
WEST VIEW: Taps Zorrilla & Associates as Bankruptcy Counsel
-----------------------------------------------------------
West View Apartments, Inc., has sought authorization from the U.S.
Bankruptcy Court for the Southern District of Florida to employ
Zorrilla & Associates, P.L., as bankruptcy counsel.
Zorrilla & Associates will, among other things:
a. give advice to the Debtor with respect to its powers and
duties as a debtor-in-possession and the continued
management of its business operations;
b. prepare motions, pleadings, orders, applications,
adversary proceedings, and other legal documents necessary
in the administration of the case;
c. protect the interest of the Debtor in matters pending
before the Court; and
d. represent the Debtor in negotiations with its creditors in
the preparation of a plan.
The Debtor and Zorrilla & Associates didn't disclose how the firm
will be compensated for its services.
Juan C. Zorrilla, Esq., a managing member at Zorrilla &
Associates, assures the Court that Taft is "disinterested" as that
term is defined in Section 101(14) of the Bankruptcy Code.
Hialeah, Florida-based West View Apartments, Inc., filed for
Chapter 11 bankruptcy protection on April 30, 2010 (Bankr. S.D.
Fla. Case No. 10-21892). The Company listed $20,522,427 in assets
and $12,329,059 in liabilities.
WINDER RENEWABLE: Wants to Hire Heller Draper as Bankr. Counsel
---------------------------------------------------------------
Winder Renewable Methane, LLC, et al., have sought permission from
the U.S. Bankruptcy Court for the Eastern District of Louisiana to
employ Douglas S. Draper and the law firm of Heller, Draper,
Hayden, Patrick & Horn, L.L.C., as bankruptcy counsel, nunc pro
tunc to the Petition Date.
Heller Draper will, among other things:
a. prepare and pursue confirmation of a plan of
reorganization and approval of a disclosure statement;
b. prepare applications, motions, answers, proposed orders,
other pleadings, notices, schedules and other documents,
and reviewing all financial and other reports to be filed;
c. advise the Debtors concerning and prepare responses to
applications, motions, pleadings, notices and other
documents which may be filed by other parties herein; and
d. appear in Court to protect the interests of the Debtors
before the Court.
Heller Draper will be paid based on the hourly rates of its
personnel:
Douglas S. Draper $400
Deborah W. Fallis $375
Tristan Manthey $375
Leslie A. Collins $350
Associates $250
Paralegals $90
To the best of the Debtors' knowledge, Heller Draper is
"disinterested" as that term is defined in Section 101(14) of the
Bankruptcy Code.
New Orleans, Louisiana-based Winder Renewable Methane, LLC, filed
for Chapter 11 bankruptcy protection on April 30, 2010 (Bankr.
E.D. La. Case No. 10-11489). Douglas S. Draper, Esq., at Heller
Draper Hayden Patrick & Horn, LLC, 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.
The Debtor's affiliate, Worthmore Renewable Solutions, LLC, filed
a separate Chapter 11 petition on April 30, 2010 (Case No. 10-
11488).
WORTHMORE RENEWABLE: Asks for 15-Day Extension to File Schedules
----------------------------------------------------------------
Worthmore Renewable Solutions, LLC, et al., have asked the U.S.
Bankruptcy Court for the Eastern District of Louisiana to extend
for an additional 15 days the deadline for the filing of schedules
of assets and liabilities, schedules of current income and
expenditures, schedules of executory contracts and unexpired
leases, and statements of financial affairs.
The Debtors are required to file schedules of assets and
liabilities, schedules of current income and expenditures,
schedules of executory contracts and unexpired leases, and
statements of financial affairs within 14 days after the Petition
Date, but due to the complexity and diversity of the Debtors'
operations and their limited manpower, the Debtors anticipate that
they will be unable to complete their schedules and statements in
the time required. To prepare the schedules and statements, the
Debtors must compile information from books, records, and
documents relating to a multitude of transactions, which will
require a heavy expenditure of time and effort on the part of the
Debtors and their employees.
New Orleans, Louisiana-based Worthmore Renewable Solutions, LLC,
filed for Chapter 11 bankruptcy protection on April 30, 2010
(Bankr. E.D. La. Case No. 10-11488). Douglas S. Draper, Esq., at
Heller Draper Hayden Patrick & Horn, LLC, 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 debts.
The Company's affiliate, Winder Renewable Methane, LLC, filed a
separate Chapter 11 petition on April 30, 2010 (Case No. 10-
11489).
WORTHMORE RENEWABLE: Taps Heller Draper as Bankruptcy Counsel
-------------------------------------------------------------
Worthmore Renewable Solutions, LLC, et al., have sought
authorization from the U.S. Bankruptcy Court for the Eastern
District of Louisiana to employ Douglas S. Draper and the law firm
of Heller, Draper, Hayden, Patrick & Horn, L.L.C., as bankruptcy
counsel, nunc pro tunc as of April 30, 2010.
Heller Draper will, among other things:
a. prepare and pursue confirmation of a plan of
reorganization and approval of a disclosure statement;
b. prepare applications, motions, answers, proposed orders,
other pleadings, notices, schedules and other documents,
and review all financial and other reports to be filed;
c. advise the Debtors concerning and preparing responses to
applications, motions, pleadings, notices and other
documents which may be filed by other parties herein; and
d. appear in Court to protect the interests of the Debtors
before the Court.
Heller Draper will be paid based on the hourly rates of its
personnel:
Douglas S. Draper $400
Deborah W. Fallis $375
Tristan Manthey $375
Leslie A. Collins $350
Associates $250
Paralegals $90
To the best of the Debtors' knowledge, Heller Draper is
"disinterested" as that term is defined in Section 101(14) of the
Bankruptcy Code.
New Orleans, Louisiana-based Worthmore Renewable Solutions, LLC,
filed for Chapter 11 bankruptcy protection on April 30, 2010
(Bankr. E.D. La. Case No. 10-11488). The Company listed
$10,000,001 to $50,000,000 in assets and $1,000,001 to $10,000,000
in debts.
The Company's affiliate, Winder Renewable Methane, LLC, filed a
separate Chapter 11 petition on April 30, 2010 (Case No. 10-
11489).
WORTHMORE RENEWABLE: Wants 15-Day Extension of Filing of Schedules
------------------------------------------------------------------
Worthmore Renewable Solutions, LLC, has asked the U.S. Bankruptcy
Court for the Eastern District of Louisiana to extend for an
additional 15 days the deadline to file schedules of assets and
liabilities, schedules of current income and expenditures,
schedules of executory contracts and unexpired leases, and
statements of financial affairs.
The Debtors are required to file the schedules and statements
within 14 days after the Petition Date, but due to the complexity
and diversity of the Debtors' operations and their limited
manpower, the Debtors anticipate that they will be unable to
complete their Schedules and Statements in the time required. To
prepare their required schedules and statements, the Debtors must
compile information from books, records, and documents relating to
a multitude of transactions, which will require a heavy
expenditure of time and effort on the part of the Debtors and
their employees.
New Orleans, Louisiana-based Worthmore Renewable Solutions, LLC,
filed for Chapter 11 bankruptcy protection on April 30, 2010
(Bankr. E.D. La. Case No. 10-11488). Douglas S. Draper, Esq., at
Heller Draper Hayden Patrick & Horn, LLC, 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 debts.
The Company's affiliate, Winder Renewable Methane, LLC, filed a
separate Chapter 11 petition on April 30, 2010 (Case No. 10-
11489).
YRC WORLDWIDE: Amends Credit Agreement with JPMorgan Chase
----------------------------------------------------------
YRC Worldwide and certain of its subsidiaries amended the credit
agreement dated August 17, 2007, with JPMorgan Chase Bank,
National Association, as agent, and the other lenders that are
parties thereto. The Credit Agreement continues to provide the
Company with a $950.0 million senior revolving credit facility,
including sublimits available for borrowings under certain foreign
currencies and for letters of credit, and a senior term loan in an
aggregate outstanding principal amount of approximately
$111.5 million.
Equity Issuances
The Credit Agreement Amendment permits the Company to receive up
to $100 million of net cash proceeds from the issuance of equity
interests during the period commencing on May 3, 2010 and ending
on the earlier of December 31, 2010 and the date on which the
Company receives $100 million of net cash proceeds from such
equity issuances, without having to use such net cash proceeds to
make a mandatory prepayment under the Credit Agreement.
The Credit Agreement Amendment requires that the net cash proceeds
from such equity issuances are deposited into a new deposit
account of the Company. The Company will be able to use the funds
in the New Account for general corporate purposes. While any funds
are in the New Account, they will not count toward the calculation
of Liquidity, the calculation of Unrestricted Cash or the
calculation of Excess Cash Flow in each case for purposes of the
mandatory prepayment requirements. The funds in the New Account
will count as Available Cash.
The Company will not be able to request loans under the Credit
Agreement until the balance in the New Account is zero. Other
than the net cash proceeds from the issuance of such equity
interest, no funds may be deposited into the New Account, and once
funds have been withdrawn they may not be re-deposited.
Voluntary Prepayments of Certain Obligations
The Credit Agreement Amendment modifies the restriction on
voluntary prepayments of any amounts owing under Contribution
Deferral Agreement or indebtedness, including a prohibition on the
Company using the up to $100 million of net cash proceeds from the
equity issuance described above to make such voluntary
prepayments.
About YRC Worldwide
Overland Park, Kansas-based YRC Worldwide Inc. is a holding
company that through wholly owned operating subsidiaries offers a
wide range of transportation services. These services include
global, national and regional transportation as well as logistics.
* * *
As reported in the Troubled Company Reporter on March 18, 2010,
KPMG LLP, in Kansas City, Missouri, expressed substantial doubt
about YRC Worldwide's ability to continue as a going concern in
its report on the Company's consolidated financial statements as
of and for the year ended December 31, 2009. The independent
auditors noted that the Company has experienced significant
declines in operations, cash flows, and liquidity.
YRC WORLWIDE: Posts $274.1 Million Net Loss for March 31 Quarter
----------------------------------------------------------------
YRC Worldwide Inc. reported a net loss of $274.1 million on $1.0
billion of operating revenue for the three months ended March 31,
2010, compared with a net loss of $273.7 million on $1.5 billion
of operating revenue during the same period a year ago.
The Company's balance sheet at March 31, 2010, showed $2.9 billion
in total assets, $1.2 billion in total current liabilities, $948.8
million of long term debt, $145.7 million in deferred income
taxes, $353.3 million in pension and post retirement, and
$373.2 million in claims and other liabilities, for a
stockholders' deficit of $104.9 million.
"Despite the headwinds from the note exchange in the latter part
of December and the harsh winter weather we experienced during
January and February, we are pleased with the sequential operating
improvement during the quarter and the traction we achieved in the
month of March," stated Bill Zollars, Chairman, President and CEO
of YRC Worldwide. "The Regional companies have a lot of momentum,
while YRC has stabilized its customer base and streamlined its
sales force, and is poised for growth going forward."
For the first quarter of 2010, the company reported operating cash
flow of $18 million, including the receipt of the previously
announced $82 million income tax refund in late February. The
company issued $50 million of 6% notes on February 23, 2010, and
used the net proceeds from these new notes to redeem its remaining
8.5% notes that were due April 15, 2010. In addition, the company
repaid $29 million on its asset-backed securitization facility
primarily from collections of its fourth quarter revenues. At
March 31, 2010, the company reported cash and cash equivalents
of $130 million, unused revolver reserves of $107 million and
unrestricted availability of $4 million under the company's
$950 million revolving credit facility.
"Our operating results improved sequentially throughout the
quarter as reflected in our adjusted EBITDA of $(27) million in
January, $(21) million in February, and $(5) million in March,"
added Sheila Taylor, Executive Vice President and CFO of YRC
Worldwide. "We continue to remove additional cost from the
business and more effectively manage our working capital, which
has allowed us to preserve liquidity under our credit facility."
Adjusted EBITDA is a non-GAAP measure that reflects the company's
earnings before interest, taxes, depreciation, and amortization
expense, and further adjusted for letter of credit fees and other
items as defined in the company's Credit Agreement. "Adjusted
EBITDA" and "loss per share when excluding the charge for union
employee equity-based awards" are used for internal management
purposes as financial measures that reflect the company's core
operating performance. In addition, adjusted EBITDA is used by
management to measure compliance with financial covenants in the
company's Credit Agreement. However, these financial measures
should not be construed as a better measurement than operating
income or earnings per share, as defined by generally accepted
accounting principles
Outlook
During April, YRC National and YRC Regional volumes increased
compared to March, as both sequential trends were slightly better
than normal seasonal patterns.
"We appreciate the continued confidence our customers have shown
by increasing their shipments with us throughout the quarter and
into April," stated Mr. Zollars. "With our current operating
momentum, we still believe we will generate positive adjusted
EBITDA in the second quarter."
In addition to the above, we have the following expectations for
2010:
* Gross capital expenditures in the range of $50 to $75 million
* Real estate sales in the range of $25 to $50 million
* Sale and financing leasebacks of approximately $50 million,
primarily in the second half of the year
* Interest expense in the range of $40 to $45 million per
quarter, with cash interest of $10 million to $12 million per
quarter
* Effective income tax rate of 2%
* Outstanding shares of 1.054 billion, prior to any adjustments
for a reverse stock split and the issuance of equity
Amendment to Credit Facilities
On May 3, 2010, the company completed amendments to its
$950 million revolving credit facility and $400 million ABS
facility. Under the revolving credit facility, the company may
retain up to $100 million of net proceeds from the issuance of
equity prior to December 31, 2010. Previously, the lenders would
have received 50% of the net proceeds from an equity issuance. In
addition, the company's financial covenants were reset for the
remainder of 2010 to take into account the impact to the company's
customer base from the delayed note exchange at the end of 2009.
The adjusted EBITDA covenants are $5 million for second quarter of
2010, $50 million cumulative for second and third quarters of
2010, and $100 million cumulative for second, third and fourth
quarters of 2010. In addition, the company is required to
maintain minimum available cash of $25 million through the
remainder of the year.
"These amendments are another indication of the support our
lenders continue to provide as we manage past the seasonally
slowest time of year and rebuild our value in the market place,"
stated Ms. Taylor. "We are also encouraged with the activity in
the equity markets and expect to be opportunistic throughout the
year."
A full-text copy of the company's earnings release is available
for free at http://ResearchArchives.com/t/s?6151
About YRC Worldwide
Overland Park, Kansas-based YRC Worldwide Inc. is a holding
company that through wholly owned operating subsidiaries offers a
wide range of transportation services. These services include
global, national and regional transportation as well as logistics.
* * *
As reported in the Troubled Company Reporter on March 18, 2010,
KPMG LLP, in Kansas City, Missouri, expressed substantial doubt
about YRC Worldwide's ability to continue as a going concern in
its report on the Company's consolidated financial statements as
of and for the year ended December 31, 2009. The independent
auditors noted that the Company has experienced significant
declines in operations, cash flows, and liquidity.
* Chapter 11 Cases with Assets & Liabilities Below $1,000,000
-------------------------------------------------------------
Recent Chapter 11 cases filed with assets and liabilities below
$1,000,000:
In Re Sleep Center Mattress Company, LLC
Bankr. E.D. Mo. Case No. 10-44892
Chapter 11 Petition Filed May 2, 2010
See http://bankrupt.com/misc/moeb10-44892.pdf
In Re Bogey Inn, LLC
Bankr. S.D. Ohio Case No. 10-55323
Chapter 11 Petition Filed May 2, 2010
See http://bankrupt.com/misc/ohsb10-55323.pdf
In Re Bing Wen Frym
Bankr. Ariz. Case No. 10-13347
Chapter 11 Petition Filed May 3, 2010
Filed As Pro Se
In Re Final Touch of NWA Inc.
Bankr. W.D. Ark. Case No. 10-72356
Chapter 11 Petition Filed May 3, 2010
See http://bankrupt.com/misc/arwb10-72356.pdf
In Re Francisco T. Cervantes
Bankr. C.D. Calif. Case No. 10-23321
Chapter 11 Petition Filed May 3, 2010
Filed As Pro Se
In Re Seaview Pacific Enterprises, Inc.
Bankr. C.D. Calif. Case No. 10-27258
Chapter 11 Petition Filed May 1, 2010
See http://bankrupt.com/misc/cacb10-27258.pdf
In Re Hazel Callahan
aka Hazel De Los Cientos Callahan
aka Hazel Cardette De Los Cientos
aka Hazel Lao Lao De Los Cientos
aka Hazel C.L. De Los Cientos
aka Hazel De Los Cientos
aka Hazel Candette Lao Lao De Los Cientos
aka Hazel L. Callahan
aka Hazel D. Callahan
Bankr. E.D. Calif. Case No. 10-31652
Chapter 11 Petition Filed May 3, 2010
See http://bankrupt.com/misc/caeb10-31652.pdf
In Re 3578 Five Forks Trickum, LLC
Bankr. N.D. Ga. Case No. 10-73370
Chapter 11 Petition Filed May 3, 2010
See http://bankrupt.com/misc/ganb10-73370.pdf
In Re Ivory Properties, LLC
Bankr. N.D. Ga. Case No. 10-73143
Chapter 11 Petition Filed May 3, 2010
See http://bankrupt.com/misc/ganb10-73143.pdf
In Re Landing, Terry, and Associates, LLC
Bankr. N.D. Ga. Case No. 10-73129
Chapter 11 Petition Filed May 3, 2010
Filed As Pro Se
In Re The Shoppes of Mableton, Inc.
Bankr. N.D. Ga. Case No. 10-73313
Chapter 11 Petition Filed May 3, 2010
See http://bankrupt.com/misc/ganb10-73313.pdf
In Re Sheffield Properties.com LLC
Bankr. N.D. Ill. Case No. 10-20192
Chapter 11 Petition Filed May 3, 2010
See http://bankrupt.com/misc/ilnb10-20192.pdf
In Re Image Projections, Inc.
Bankr. E.D. Mich. Case No. 10-32532
Chapter 11 Petition Filed May 3, 2010
See http://bankrupt.com/misc/mieb10-32532.pdf
In Re North Grove House, LLC
Bankr. N.J. Case No. 10-23609
Chapter 11 Petition Filed May 3, 2010
Filed As Pro Se
In Re Sensitive Touch, Inc.
Bankr. S.D. N.Y. Case No. 10-12425
Chapter 11 Petition Filed May 3, 2010
See http://bankrupt.com/misc/nysb10-12425.pdf
In Re Galilee Missionary Baptist Church
aka New Jerusalem Missionary Baptist Church
aka Galilee Baptist Church
Bankr. S.D. Ohio Case No. 10-55333
Chapter 11 Petition Filed May 3, 2010
See http://bankrupt.com/misc/ohsb10-55333.pdf
In Re Ruby Lea Allen Revocable Trust
Bankr. W.D. Okla. Case No. 10-12682
Chapter 11 Petition Filed May 3, 2010
See http://bankrupt.com/misc/okwb10-12682.pdf
In Re Scimeca Foundation, Inc.
Bankr. E.D. Pa. Case No. 10-13662
Chapter 11 Petition Filed May 3, 2010
See http://bankrupt.com/misc/paeb10-13662.pdf
In Re Lois M. Conwell
dba All Wrapped Up
dba All Wrapped Up Real Estate
Bankr. N.D. Texas Case No. 10-33199
Chapter 11 Petition Filed May 3, 2010
See http://bankrupt.com/misc/txnb10-33199.pdf
In Re RJH Mortgage, Inc.
dba Ruiz Home Mortgage
Bankr. S.D. Texas Case No. 10-50118
Chapter 11 Petition Filed May 3, 2010
See http://bankrupt.com/misc/txsb10-50118.pdf
In Re Woodbridge Investment Company, LLC
Bankr. S.D. Texas Case No. 10-33639
Chapter 11 Petition Filed May 3, 2010
Filed As Pro Se
In Re George Steven Gillard
Bankr. N.D. Ala. Case No. 10-81801
Chapter 11 Petition Filed May 4, 2010
See http://bankrupt.com/misc/alnb10-81801.pdf
In Re Nancy Jean Wandlass
aka Nancy Wandlass & Associates
aka Pacific Heights Gallery, Inc.
dba Pacific Hts. Gallery
Bankr. N.D. Calif. Case No. 10-31638
Chapter 11 Petition Filed May 4, 2010
Filed As Pro Se
In Re Annett Caro-Cummings
Bankr. N.D. Ga. Case No. 10-73529
Chapter 11 Petition Filed May 4, 2010
Filed As Pro Se
In Re Greenville United Christian Ministries
dba New Birth of Greenville
Bankr. N.D. Ga. Case No. 10-73481
Chapter 11 Petition Filed May 4, 2010
See http://bankrupt.com/misc/ganb10-73481.pdf
In Re Kimelyn Alissa Minnifield
Bankr. N.D. Ga. Case No. 10-73436
Chapter 11 Petition Filed May 4, 2010
Filed As Pro Se
In Re RTA Enterprises, LLC
dba Paradise Lakes Country Club
Bankr. N.D. Ga. Case No. 10-73477
Chapter 11 Petition Filed May 4, 2010
See http://bankrupt.com/misc/ganb10-73477.pdf
In Re The Wabern Company
Bankr. N.D. Ga. Case No. 10-73454
Chapter 11 Petition Filed May 4, 2010
See http://bankrupt.com/misc/ganb10-73454.pdf
In Re Tabor Group, LLC
Bankr. S.D. Ind. Case No. 10-06620
Chapter 11 Petition Filed May 4, 2010
See http://bankrupt.com/misc/insb10-06620.pdf
In Re Mitzvot Int'l LLC
Bankr. E.D. N.Y. Case No. 10-73337
Chapter 11 Petition Filed May 4, 2010
Filed As Pro Se
In Re Caffeine Cowboys LLC
dba Fargo Coffee Co. LLC
dba Fargo Coffee Co.
dba Fargo Coffee Company
Bankr. N.D. Case No. 10-30529
Chapter 11 Petition Filed May 4, 2010
See http://bankrupt.com/misc/ndb10-30529.pdf
In Re James M. Boney
Bankr. N.D. Texas Case No. 10-33256
Chapter 11 Petition Filed May 4, 2010
Filed As Pro Se
In Re FEX, Inc.
dba Crew Health & Fitness
Bankr. S.D. Texas Case No. 10-33843
Chapter 11 Petition Filed May 4, 2010
See http://bankrupt.com/misc/txsb10-33843.pdf
In Re Monina's Land, LP.
Bankr. S.D. Texas Case No. 10-50121
Chapter 11 Petition Filed May 4, 2010
See http://bankrupt.com/misc/txsb10-50121.pdf
In Re SA Eden Roc Apartments, LLC
Bankr. W.D. Texas Case No. 10-51727
Chapter 11 Petition Filed May 4, 2010
Filed As Pro Se
In Re The Christian Contractors, Inc.
Bankr. N.D. Ala. Case No. 10-81834
Chapter 11 Petition Filed May 5, 2010
See http://bankrupt.com/misc/alnb10-81834.pdf
In Re Canvas Products Company, Inc.
Bankr. S.D. Ala. Case No. 10-02013
Chapter 11 Petition Filed May 5, 2010
See http://bankrupt.com/misc/alsb10-02013.pdf
In Re Trends 2005 LLC
Bankr. Ariz. Case No. 10-13755
Chapter 11 Petition Filed May 5, 2010
Filed As Pro Se
In Re Justin T. Mir
aka Justin Mir
Bankr. C.D. Calif. Case No. 10-15355
Chapter 11 Petition Filed May 5, 2010
See http://bankrupt.com/misc/cacb10-15355.pdf
In Re Bartram Trail Surveying, Inc.
Bankr. M.D. Fla. Case No. 10-03878
Chapter 11 Petition Filed May 5, 2010
See http://bankrupt.com/misc/flmb10-03878.pdf
In Re Howard J. Behlman
Jaynee I. Behlman
Bankr. M.D. Fla. Case No. 10-10771
Chapter 11 Petition Filed May 5, 2010
See http://bankrupt.com/misc/flmb10-10771.pdf
In Re River Cove Landing, L.C.
Bankr. M.D. Fla. Case No. 10-07720
Chapter 11 Petition Filed May 5, 2010
See http://bankrupt.com/misc/flmb10-07720.pdf
In Re National Equities of NY, Inc.
Bankr. E.D. N.Y. Case No. 10-44081
Chapter 11 Petition Filed May 5, 2010
See http://bankrupt.com/misc/nyeb10-4481.pdf
In Re Mulligan's, Inc.
Bankr. W.D. Pa. Case No. 10-23331
Chapter 11 Petition Filed May 5, 2010
See http://bankrupt.com/misc/pawb10-23331.pdf
In Re Centro Cache Inc.
Bankr. Puerto Rico Case No. 10-03779
Chapter 11 Petition Filed May 5, 2010
See http://bankrupt.com/misc/prb10-03779.pdf
In Re Inmubiliaria Quebrada Cruz, Inc.
Bankr. Puerto Rico Case No. 10-03764
Chapter 11 Petition Filed May 5, 2010
See http://bankrupt.com/misc/prb10-03764.pdf
In Re Kadima Corp.
Bankr. Puerto Rico Case No. 10-03778
Chapter 11 Petition Filed May 5, 2010
See http://bankrupt.com/misc/prb10-03778.pdf
In Re R&K Fabricating, Inc.
Bankr. S.D. Texas Case No. 10-33878
Chapter 11 Petition Filed May 5, 2010
See http://bankrupt.com/misc/txsb10-33878.pdf
In Re Ricardo Gonzalez
aka Rick Gonzalez
Bankr. S.D. Texas Case No. 10-33880
Chapter 11 Petition Filed May 5, 2010
See http://bankrupt.com/misc/txsb10-33880.pdf
In Re Blanchards Suffolk Tire & Auto Inc.
Bankr. E.D. Va. Case No. 10-72179
Chapter 11 Petition Filed May 5, 2010
See http://bankrupt.com/misc/vaeb10-72179.pdf
In Re RMW, Inc.
Bankr. W.D. Va. Case No. 10-50755
Chapter 11 Petition Filed May 5, 2010
See http://bankrupt.com/misc/vawb10-50755.pdf
In Re Roadrunners, Inc.
Bankr. W.D. Pa. Case No. 10-23329
Chapter 11 Petition Filed May 5, 2010
See http://bankrupt.com/misc/pawb10-23329.pdf
In Re David Leonard Harris
Dolores A. Harris
Bankr. Ariz. Case No. 10-13866
Chapter 11 Petition Filed May 6, 2010
Filed As Pro Se
In Re Alfonso Pelayo
Melissa Anne Pelayo
Bankr. C.D. Calif. Case No. 10-15399
Chapter 11 Petition Filed May 6, 2010
Filed As Pro Se
In Re Rio Concho, Limited
Bankr. C.D. Calif. Case No. 10-15378
Chapter 11 Petition Filed May 6, 2010
Filed As Pro Se
In Re 4450 W. 137th Place Partnership
Bankr. N.D. Ill. Case No. 10-20809
Chapter 11 Petition Filed May 6, 2010
See http://bankrupt.com/misc/ilnb10-20809.pdf
In Re Park St. Housing Association, LLC
Bankr. Mass. Case No. 10-14982
Chapter 11 Petition Filed May 6, 2010
Filed As Pro Se
In Re The Pike Lanes Family Fun Center, L.L.C.
Bankr. N.J. Case No. 10-23973
Chapter 11 Petition Filed May 6, 2010
See http://bankrupt.com/misc/njb10-23973.pdf
In Re Tuscan Sun Ristorante Inc.
dba Annona
Bankr. E.D. N.Y. Case No. 10-73391
Chapter 11 Petition Filed May 6, 2010
See http://bankrupt.com/misc/nyeb10-73391.pdf
In Re 468033 B.C. Ltd.
Bankr. N.D. N.Y. Case No. 10-11753
Chapter 11 Petition Filed May 6, 2010
Filed As Pro Se
In Re Pascual Fernandez Romero
dba F&J Mini Market
Teresa Jimenez Borrero
aka Teresa Fernandez Jimenez
Bankr. Puerto Rico Case No. 10-03807
Chapter 11 Petition Filed May 6, 2010
See http://bankrupt.com/misc/prb10-03807.pdf
In Re Art Restorations, Inc.
Bankr. N.D. Texas Case No. 10-33297
Chapter 11 Petition Filed May 6, 2010
See http://bankrupt.com/misc/txnb10-33297.pdf
In Re Two Hole LLC
Bankr. W.D. Wash. Case No. 10-43681
Chapter 11 Petition Filed May 6, 2010
See http://bankrupt.com/misc/wawb10-43681.pdf
In Re Kent E. Salveson
Bankr. C.D. Calif. Case No. 10-16124
Chapter 11 Petition Filed May 7, 2010
Filed As Pro Se
In Re Certified Diabetic Services, Inc.
Bankr. M.D. Fla. Case No. 10-11046
Chapter 11 Petition Filed May 7, 2010
See http://bankrupt.com/misc/flmb10-11046p.pdf
See http://bankrupt.com/misc/flmb10-11046c.PDF
In Re Village Park Estate Homes LLC
Bankr. S.D. Fla. Case No. 10-22527
Chapter 11 Petition Filed May 7, 2010
Filed As Pro Se
In Re GEL Enterprizes Corp (Tennessee)
dba GEL Enterprizes Bookstore
dba Texas College Bookstore
Bankr. N.D. Ga. Case No. 10-73877
Chapter 11 Petition Filed May 7, 2010
See http://bankrupt.com/misc/ganb10-73877.pdf
In Re The Pain Medicine and Rehabilitation Center, P.C.
Bankr. S.D. Ind. Case No. 10-91467
Chapter 11 Petition Filed May 7, 2010
Filed As Pro Se
In Re Isleton Holdings One, LP
Bankr. Nev. Case No. 10-18446
Chapter 11 Petition Filed May 7, 2010
See http://bankrupt.com/misc/nvb10-18446.pdf
In Re Albert Fuat Jewelers, LLC
Bankr. N.J. Case No. 10-24183
Chapter 11 Petition Filed May 7, 2010
See http://bankrupt.com/misc/njb10-24183.pdf
In Re Energy Management Technologies, LLC
dba EMTech
Bankr. N.D. N.Y. Case No. 10-11779
Chapter 11 Petition Filed May 7, 2010
See http://bankrupt.com/misc/nynb10-11779.pdf
In Re 113th Street, Realty LLC
Bankr. S.D. N.Y. Case No. 10-12476
Chapter 11 Petition Filed May 7, 2010
Filed As Pro Se
In Re Annamarie C. Morrow
Bankr. W.D. Pa. Case No. 10-23356
Chapter 11 Petition Filed May 7, 2010
See http://bankrupt.com/misc/pawb10-23356.pdf
In Re Frova Trucking, Inc.
Bankr. Puerto Rico Case No. 10-03837
Chapter 11 Petition Filed May 7, 2010
See http://bankrupt.com/misc/prb10-03837.pdf
In Re Leo Bell, Jr.
aka Lee Bell
Bankr. S.C. Case No. 10-03354
Chapter 11 Petition Filed May 7, 2010
Filed As Pro Se
In Re Gladys S. Whitener
Bankr. E.D. Tenn. Case No. 10-12683
Chapter 11 Petition Filed May 7, 2010
See http://bankrupt.com/misc/tneb10-12683p.pdf
See http://bankrupt.com/misc/tneb10-12683c.pdf
In Re Boss's LLC
Bankr. N.D. Miss. Case No. 10-12291
Chapter 11 Petition Filed May 9, 2010
See http://bankrupt.com/misc/msnb10-12291.pdf
In Re M & I Auto Sales, Inc.
Bankr. E.D. Va. Case No. 10-13814
Chapter 11 Petition Filed May 9, 2010
See http://bankrupt.com/misc/vaeb10-13814.pdf
*********
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.
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